Inception: July 2013
Benchmark: MSCI ACWI Total Return Index; MSCI World Total Return Index
Lead Portfolio Manager: Darren McKiernan, CFA
Investment Adviser: Mackenzie Financial Corporation
- Strict focus on identifying quality businesses that operate at the high end of their value chain and possess predictable economics generating consistently high returns on invested capital and free cash flow conversion.
- The team’s size and lack of sector bias drives efficient decision making, while sharing a single investment philosophy, driven by global generalist expertise.
- Risk controls and portfolio parameters are applied and monitored by three groups with complete autonomy from one another.
The Mackenzie Global Equity & Income team seeks high-quality companies that generate strong returns on equity, pay higher dividend yields, and operate with more robust capital structures than the benchmark. The team believes that high-quality companies, when bought at the right price, offer the best potential to outperform over the long-term. The team focuses on identifying companies at the top of their respective value chains, with sustainable moats that protect their ability to deliver superior results.
- Bottom-up, fundamental research-driven process, focused on a select group of high-quality compounder companies that form a watch list of approximately 400 securities.
- Seeks companies that have predictable economics, high free cash flow conversion and returns on invested capital typically well in excess of their cost of capital.
- Seeks to identify companies that have an economic moat in the form of high switching costs, network economics, intellectual property, privileged assets or regulatory barriers, among others.
- Companies move from the watch list to the portfolio based on valuation, contribution to portfolio diversification and attractiveness relative to other holdings.
- Targets 50-80 securities diversified across sector, industry and regional exposure.
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The Mackenzie Global Core Equity Composite contains fully discretionary, Global Core Equity accounts. New accounts are included in the Composite beginning with the first full month under management after they have been fully invested.
GIPS Compliance Statement
Mackenzie Investments claims compliance with the Global Investment Performance Standards (GIPS®).
The Global Core Equity Composite aims to achieve a combination of long-term capital growth and current income by primarily investing in dividend paying companies around the world or in companies that are expected to pay dividends in the future. The approach to stock selection is bottom-up fundamental analysis including the examination of the company’s financial position, revenue growth, profitability, the competitive landscape and management. The composite was created on October 31, 2017.
Effective December 6, 2013, a new portfolio management team was appointed for the Global Core Equity Composite.
Benchmark (1) is the MSCI AC (All Country) World Total Return Index, net of withholding taxes. The MSCI AC World Index is a free float adjusted, market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The index consists of 23 developed and 24 emerging market country indices.
Benchmark (2) is the MSCI World Total Return Index, net of withholding taxes. The MSCI World Index is a free float adjusted, market capitalization weighted index that is designed to measure the equity market performance of developed markets. It consists of 23 developed market country indices.
On Jan 1, 2017, the benchmark was changed from the MSCI World High Dividend Yield Index to the MSCI All Country World and MSCI World Index Indices. This change was made retroactively as the new benchmarks better reflect the composite’s investment universe and historical and ongoing portfolio management.
List of Composites
A complete list of composite descriptions is available to prospective clients upon request. Please contact Carol De Veau at firstname.lastname@example.org.