TOBAM partners with Canadian Mackenzie Investment Partners to launch ETFs and mutual funds based on the Maximum Diversification® Index Series
Paris, Toronto – June 28, 2016 – TOBAM has partnered with Mackenzie Investments, a leading investment manager in Canada to offer its Maximum Diversification® investment philosophy via ETF and mutual funds to Canadian retail investors.
TOBAM is proud to announce that Mackenzie Financial Corporation (Mackenzie Investments) launched two smart beta index Exchange Traded Funds (ETFs) and a set of mutual fund products, designed to enhance diversification in a portfolio and reduce portfolio biases and unmanaged risks.
The new Mackenzie ETFs are designed to track the performance of select rules-based indices from the TOBAM Maximum Diversification® Index Series. Each index aims to create a more diversified portfolio relative to a market capitalization weighted benchmark across Canadian and U.S. markets.
The mutual funds invest in the Mackenzie Maximum Diversification Index ETFs and may also invest a portion of its assets in other ETFs, or in securities directly.
Yves Choueifaty, CEO of TOBAM says: “TOBAM’s core investment philosophy is to enhance diversification in order to benefit from all the potential opportunities available in equity markets,” “Our research indicates that the systematic returns available from equity markets are higher than market-cap weighted benchmarks’, and seem to be far more stable over time. Using a biased benchmark as a reference carries implicit bets, potentially costly, which evolve dynamically. On the contrary, TOBAM’s Maximum Diversification® approach is designed to reduce explicit and implicit biases in terms of sector, styles, market cap…and to collect the risk premium available in the investment universe. We are very excited to be partnering with Mackenzie Investments to make our investment philosophy available to Canadian investors via ETF and mutual funds.”
Michael Cooke, Head of Exchange Traded Funds at Mackenzie Investments declared: “In today’s financial environment, investors are looking for additional ways to position their portfolios to help them keep pace with constantly changing markets”. “With that in mind, as we continue to evolve our product line-up, our maximum diversification ETFs represents an exciting new chapter in the evolution of smart beta index ETFs in Canada. For investors rethinking their core holdings, these funds aim to enhance diversification that may help achieve superior performance with lower risk over reasonable periods of time.”
About MACKENZIE INVESTMENTS
Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With $61.4 billion in assets under management as at May 31, 2016, Mackenzie Investments distributes its investment services through multiple distribution channels to both retail and institutional investors. Mackenzie Investments is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada’s premier financial services companies with over $135 billion in total assets under management as at May 31, 2016.
For more information, visit mackenzieinvestments.com.
This note explains the Maximum Diversification® approach and the benefits and principles of TOBAM’s investment philosophy aiming at maximizing diversification in order to deliver the full equity risk premium. The Most Diversified Portfolio® is the theoretical portfolio, the outcome of the pure maximisation of the Diversification Ratio. Please note that the Maximum Diversification Index Series for the purpose of replication and implementation integrates constraints that diverge from the pure Most Diversified Portfolio® and that all properties demonstrated for the MDP might not strictly applied to the Maximum Diversification Index Series.