Mackenzie Financial Corp. plans to merge its Mackenzie Sentinel Short-term Bond Fund and Mackenzie Sentinel Mortgage Fund.

If approved, the name of the merged fund will be Mackenzie Sentinel Short-Term Income Fund. The merged fund will have a name and mandate to reflect broader income investment opportunities, the company said today.

Mackenzie expects to hold special meetings of unitholders of the funds on November 22, 2006.

Unitholders of Sentinel Short-Term Bond Fund will be asked to consider a merger into Sentinel Mortgage Fund. Sentinel Mortgage Fund unitholders will be asked to consider changing the investment objectives of the fund as well as the merger of Sentinel Short-Term Bond Fund.

Currently Sentinel Mortgage Fund invests primarily in NHA-insured residential first mortgages. The new mandate would allow for more flexibility in investing in short-term fixed income securities such as government and corporate bonds.

The management fee on Series A units will be reduced from 1.5% to 1.25%. The management fees on other series of units will be similarly reduced to be consistent with the management fees currently charged for Mackenzie Sentinel Short-Term Bond Fund.

Chris Kresic, who currently manages both Sentinel Mortgage Fund and Sentinel Short-Term Bond Fund, will continue as lead manager on the merged Fund.

The changes are subject to investor and regulatory approval.