Toronto-based Mackenzie Financial Corp. announced on Wednesday its plans to reduce management fees and trailing commissions for certain fixed-income funds, and to automatically shift qualified investors over into its private wealth series so they can avail of lower fees.
Fees will be lowered for Mackenzie Strategic Bond Fund and Symmetry Fixed Income Portfolio, which are part of series LB, LM and LX securities in the Laurentian Bank Group of Funds, starting April 3.
This move, which affects these fixed-income funds, follows a series of announcements from the firm that it has sought to align trailing commissions with the “compensation that is generally paid for the industry,” the announcement says.
Management fees and dealer compensation will also be reduced for other fixed-income funds. These changes also take effect April 3. (See the company’s news release for a full list.)
In addition, Mackenzie is introducing Series SC and S6, which are only available in front-end purchase option, for North American Corporate Bond Fund. Series A of the fund will be shifted over to Series SC, and Series T6 of the fund will move to S6.
As of April 13, investors who have a minimum of $100,000 per fund and households with a minimum of $250,000 will be automatically switched into the corresponding private wealth series that offers the lowest fees for which the investors they qualify.
“Our goal is to ensure all clients are transitioned into our Private Wealth Series once they qualify,” says Barry McInerney, president and CEO at Mackenzie Financial, in a statement.
The firm also intends to introduce a “high-water mark,” which seeks to provide investors’ protection against downward trends in the market. This will be done by “locking in the highest market value their portfolio has reached net of redemptions,” the announcement says.