Mackenzie to launch funds with SRI and China mandates

Rudy Luukko 10 October, 2017 | 5:00PM
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Mackenzie Investments announced today it is expanding its mutual-fund family with two new socially responsible investing (SRI) balanced funds, and one equity fund investing in China. All three funds will be available for purchase on Oct. 16, the company said in a release.

The most broadly based new fund is Mackenzie Global Sustainability and Impact Balanced. Rockefeller & Co. has been hired to manage equities. The New York-based company employs environmental, social and governance (ESG) criteria alongside a fundamental, sector-based analysis of a company's financials.

The fixed-income assets will be managed internally by Mackenzie, which has incorporated ESG factors into its global fixed-income analysis. Along with fundamental analysis, the Rockefeller and Mackenzie managers will seek to emphasize "best in class" issuers in terms of (ESG) practices.

Mackenzie Global Leadership Impact, meanwhile, will focus on investing in companies that promote the representation of women in positions of corporate leadership.

The fund is sub-advised by Pax Ellevate Management LLC, a U.S.-based fund manager which rates companies according to women-in-leadership criteria. These include the proportions of women in senior executive roles and on boards of directors. According to Mackenzie, the fund provides investors "with an opportunity to advocate for the advancement of women in leadership roles while aiming to generate competitive returns and long-term capital growth."

The third new fund being launched is Mackenzie All China Equity. It will be sub-advised by China Asset Management Co., Ltd. (China AMC), one of China's largest asset managers. Mackenzie Investments recently acquired a 13.9% stake in China AMC, and Mackenzie's indirect parent company Power Corp. also holds 13.9%.

The fund's holdings will include China A-shares, which trade on the Shanghai and Shenzhen stock exchanges, China H-shares which are listed on the Hong Kong Stock Exchange, and American Depositary Receipts (ADRs) of Chinese companies.

Citing opinion research that it has commissioned into investor preferences, Mackenzie said a survey conducted in June and July by Environics Research showed nearly two thirds (63%) of respondents agree that "sustainable, responsible and impact investing" will become more important to their investment portfolio. The same survey found that 77% of respondents say they will either maintain or increase their investments in China in the next two to three years. Environics surveyed 1,247 adult Canadians, 18-75 years old, who have an investment portfolio or plan to begin investing soon.

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About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

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