Alain Bergeron, who joined Mackenzie Investments in September of last year from the Canada Pension Plan Investment Board (CPPIB), will soon have an even greater role in determining the asset mixes of Mackenzie's mutual funds.
Effective Aug. 14, Bergeron will be added to the management teams of eight Mackenzie balanced funds with assets totalling $6.3 billion.
Bergeron's involvement is aimed at improving the funds' risk-adjusted returns by having a dedicated asset-allocation expert aboard. This will also enable the equity and fixed-income personnel to focus on security selection within their asset classes, Mackenzie officials say.
Formerly the head of global tactical asset allocation at CPPIB, Bergeron will practice what Mackenzie describes as a disciplined, pension-style approach to asset allocation.
While he'll actively manage the asset allocation, he'll be subject to clearly defined constraints. Coinciding with his start date on the affected funds, Mackenzie will apply specific target neutral weights and asset-class ranges. (See table below.)
For example, the conservatively positioned Mackenzie Income will have a neutral equity weighting of 30% and no more than 40% in equities. By comparison, the Mackenzie Ivy Canadian Balanced 
and Mackenzie Ivy Global Balanced will have a 75% neutral weighting and a range of up to 90% for equities.
| Mackenzie specifies equity ranges for balanced funds | ||||
| Fund | Neutral equity target (%) |
Equity range (%) |
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| Mackenzie Canadian All Cap Balanced | 65 | 60-90 | ||
| Mackenzie Canadian All Cap Balanced Class | 65 | 60-90 | ||
| Mackenzie Canadian Large Cap Balanced | 50 | 40-60 | ||
| Mackenzie Canadian Growth Balanced | 65 | 60-90 | ||
| Mackenzie Cundill Canadian Balanced | 65 | 60-70 | ||
| Mackenzie Income | 30 | 10-40 | ||
| Mackenzie Ivy Canadian Balanced | 75 | 60-90 | ||
| Mackenzie Ivy Global Balanced | 75 | 60-90 | ||
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| Source: Mackenzie Investments | ||||
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Under their current investment objectives, as specified by prospectus, the two Mackenzie Ivy balanced funds have the flexibility to vary their equity mix from zero to 100% but will tend not to make dramatic asset-mix shifts. Subject to investor approval at votes set for Aug. 13, the funds' investment objectives will be amended to remove the zero-to-100 reference, while giving Bergeron the flexibility he needs for active asset allocation.
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| Alain Bergeron | |
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Bergeron, a senior vice-president and head of Mackenzie's asset-allocation team, is currently responsible for Mackenzie's Symmetry managed-asset program, which has an estimated $4 billion in assets under management. He also oversees the asset mixes for Mackenzie's multi-manager funds in various fund categories. In all, he currently has asset-allocation responsibilities for $11 billion in fund assets.
In an unrelated manager change also announced today, Mackenzie U.S. Large Cap Growth is getting a new portfolio manager, a change in strategy and a new name.
Mackenzie affiliate Putnam Investments Inc. will take over effective Sept. 15, replacing Waddell & Reed Inc. Under Boston-based Putnam and portfolio manager Robert Brookby, the fund will shift to a multi-cap strategy and will change its name to Mackenzie U.S. All Cap Growth. The fund's new investment strategy will be similar to that of Putnam Multi-Cap Growth, a retail fund for American investors, which Brookby has managed since September 2010.
Kansas City-based Waddell & Reed, which has managed Mackenzie U.S. Large Cap Growth since its inception in 1995, will continue with its other Mackenzie mandates. These include Mackenzie U.S. Large Cap Class, Mackenzie Global Asset Strategy, Mackenzie Global Bond and co-manager roles in various multi-manager funds.
