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Mackenzie Financial Corporation and Mackenzie Global Sustainable Bond Fund

2021-02-11 | Decision | 81-102 | Investment funds and structured products | https://www.osc.ca/en/securities-law/orders-rulings-decisions/mackenzie-financial-corporation-and-mackenzie-global-sustainable-bond-fund

National Instrument 81-102 -- Investment Funds, ss. 2.1(1) and 19.1.


The Securities Commission granted an exemption to a global fixed income fund, allowing it to invest beyond the standard 10% net asset value limit in debt securities issued or guaranteed by foreign supranational agencies or governments. The exemption permits investments of up to 20% for AA-rated securities and up to 35% for AAA-rated securities, with the condition that these percentages cannot be combined for any single issuer.

This decision is based on National Instrument 81-102 – Investment Funds, specifically section 19.1, which allows for exemptions from the concentration restriction outlined in subsection 2.1(1). The fund, managed by Mackenzie Financial Corporation, aims to provide moderate capital growth by focusing on sustainable and responsible fixed-income securities worldwide.

The exemption was granted under the condition that the securities are traded on mature and liquid markets, align with the fund’s fundamental investment objectives, and that the fund’s Simplified Prospectus clearly discloses the associated risks of concentration and the nature, terms, and conditions of the exemption. The decision was made with the understanding that the exemption would enable the fund to better achieve its investment objectives, thus benefiting investors.