Mackenzie Ivy team buys what others are selling

Counter-cyclical approach requires patience, Paul Musson says.

Diana Cawfield 16 March, 2017 | 5:00PM
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Paul Musson, the head of the Ivy team at Mackenzie Investments, acknowledges that Ivy has a reputation for not keeping pace in bull markets. But he doesn't see this attribute as a negative, so long as the managers capture "a reasonable amount" of the market gains.

"We're being careful," says Musson, who is the lead manager of Mackenzie Ivy Canadian, a Morningstar 4-star rated fund in the Canadian Focused Equity category. "We don't know when the bear market will start and our plan is to not capture as much of a down market."

To help protect capital in anticipation of a market downturn, Musson is taking what he describes as a counter-cyclical approach to stock selection. "We have a strict valuation discipline," he says. "By definition, if something is getting more expensive, it's because people are rotating to that sector."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Bank of Nova Scotia83.92 CAD-0.86Rating
Brookfield Asset Management Inc Class A71.18 CAD-2.77
Canadian Natural Resources Ltd51.90 CAD0.35
Omnicom Group Inc69.04 USD-0.07Rating
Onex Corp93.50 CAD-2.79
Pembina Pipeline Corp37.67 CAD-1.21Rating
Procter & Gamble Co149.88 USD1.78Rating
Saputo Inc28.08 CAD0.21Rating

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.

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