Download Investor Brochure - Mackenzie Global Low Volatility Fund

MACKENZIE GLOBAL
LOW VOLATILITY FUND
Reduce volatility, stay on track
$100,000
30%
DECLINE
$100,000
requires
$100,000
$100,000
15%
DECLINE
43%
RECOVERY
requires
$85,000
18%
RECOVERY
Mackenzie Global Low Volatility Fund
$70,000
30% Drop
(Drawdown)
15% Drop
(Drawdown)
Why invest in a low volatility fund
Emotional Decisions Can Cost Money
Many people react to the market’s ups and downs by making emotional decisions about their investments. Research shows that investors
tend to put more money into equity funds when the stock market is nearing its high, and sell when the market reaches a low point
(see chart below). In other words, volatility can prompt you to buy high and sell low. Those decisions can cost money and sleep.
Investors Buy High and Sell Low
Global Equity Market
Flows into Equity Mutual Funds
2500
10
8
6
2000
4
2
0
1500
Equity Fund New Flows ($mil)
MSCI World Index
Investments purchased when markets peak
-2
-4
Investments sold when markets bottom
1000
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Source: Morningstar and SimFund, March 31, 2016
Choosing a low volatility investment strategy can help smooth out the market ride so that you stay invested in equity markets longer,
which gives you a chance to capture more upside.
It’s always the right time to manage volatility
Low volatility investing can help reduce the impact of down markets, or drawdowns, which refers to how much your investment declines from
its peak to its bottom during a specific period. Managing the effects of investment drawdown can help your portfolio recover faster. The less
your investment drops, the less it has to recover.
A bigger drop means your money has to
work harder to recover
$100,000
30%
DECLINE
$100,000
requires
$70,000
43%
RECOVERY
By using a low volatility strategy, you
can recover more quickly
$100,000
15%
DECLINE
$100,000
requires
$85,000
18%
RECOVERY
Why Mackenzie Global Low Volatility Fund
As equity markets become more volatile, investors need options for managing and mitigating the effects of volatility on their portfolios.
Focus on Reducing Drawdown: Mackenzie Global Low Volatility Fund
Irish Life Investment Managers (ILIM), one of Ireland’s leading global asset managers with more than 15 years of experience with quantitative
strategies, is the sub-advisor for the Mackenzie Global Low Volatility Fund.
Investment Approach
Low
Risk
Factors
For Low risk factors: Invest in companies that demonstrate low risk characteristics such
as good quality, valuation, and leverage
Low
Risk
Sector
Tilts
For Low risk sector tilts: Portfolio is tilted towards sectors that have demonstrated
downside protection over multiple market cycles
For Portfolio construction: Additional portfolio constraints to enhance low risk factor
characteristics of the Fund
Portfolio
Construction
The Global Low Volatility Fund is one of Mackenzie’s low volatility options to help investors sustain their confidence in a changing world.
The Fund seeks to give investors:
• Enhanced protection from drawdowns during periods of market stress
• A means of controlling volatility
• The ability to maintain equity returns over the longer term
Talk to you advisor about how the Mackenzie Global Low Volatility Fund can help you protect your portfolio in today’s volatile markets.
-100%
100%
50%
71%
105%
88%
0%
-50%
-64%
-78%
-100%
Downside Capture
Upside Capture
Mackenzie Global Low Volatility Fund
Why invest with
Mackenzie
THE INVESTMENT TEAM
Anthony MacGuinness, CFA, CAIA
Head of Quantitative Strategies
Irish Life Investment Managers
Donie O’Brien, Ph.D
Senior Quantitative Fund Manager
Irish Life Investment Managers
Ronan Bradley, Ph.D
Senior Quantitative Fund Manager
Irish Life Investment Managers
02695 MK7602 6/16
Irish Life Investment Managers (ILIM) has approximately $80 billion in assets under management and
a client base of more than 3,000 employer-sponsored pension plans and 700,000 individuals. ILIM
focuses on delivering a market return for clients while reducing volatility and minimizing the portfolio
drawdown experience over market cycles.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual
fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their
values change frequently and past performance may not be repeated.
The content of this brochure (including facts, views, opinions, recommendations, descriptions of or
references to, products or securities) is not to be used or construed as investment advice, as an offer
to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any
entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no
responsibility for any reliance upon it.
Mackenzie Investments has the
strength and diversity of perspectives
to meet your needs and help support
you in all markets.
A clear vision:
We’re committed to the
financial success of investors,
through their eyes.
Strong ownership:
Part of IGM Financial (9th largest
publicly traded asset manager in
the world) and the Power Financial
Group of Companies, trusted advice
champions with over $700B in assets.
Multiple perspectives:
Home to 10 distinct investment
boutiques, offering you multiple
perspectives on market risks and
opportunities.