Eliminate
currency risk with
true USD investing
For investors holding US dollars, the Mackenzie US dollar fund suite provides the benefit of maintaining US dollar exposure throughout the investing cycle, avoiding potential costs associated with currency conversions, which are common among US purchase options.
With our US dollar funds, investors will:
Buy their fund with US dollars and receive US dollars upon redemption.
Receive primary exposure to US dollars at the fund level through the holding of US securities and/or hedging non-US currency exposure back to the US dollar.
See a US dollar denominated net asset value per share (NAVPS) on their statements, with performance metrics based on the US dollar NAVPS.
True US dollar fund
vs.
US dollar purchase option
With a US dollar fund, performance will be driven by the returns of the underlying securities and the portfolio manager's expertise.
Step 1
Buy US dollar fund
with US dollars
After 1-year
(5% investment return)
1
Step 2
Redeem units in the
fund in US dollars
True
USD fund
USD
purchase option
Purchase and redeem in USD
Performance and NAVPS in USD
Primary exposure to USD
No currency impact on returns
$100 USD
$105 USD
$105 USD
Investing through a US dollar purchase option would result in a different outcome, because these funds require currency conversions that affect the overall returns. This impact is contingent on the exchange rate, which could have either a positive or negative effect on overall returns.
Note:
Total return is driven by investment return only (5%)
The following scenarios illustrate potential exchange rate impacts, which is mitigated by a true US dollar fund.
Scenario 1
With CAD trading at 0.80 USD, the investor still needs $125 CAD to purchase $100 USD. While the investor holds the fund, CAD rises to $0.90 USD, and they decide to redeem. The investor earns the return on the underlying investment but loses more through the currency conversion.
Scenario 2
A falling US dollar
Result
Decrease in overall returns
StepS
Buy the fund with CAD
$125 CAD
1
After 1-year
(5% investment return)
$105 USD
US purchase option conversion
$100 USD
2
Redeem units
$105 USD
3
Convert back to CAD
$116.67 CAD
4
Note:
Total return is driven by investment return and currency exchange rates.
Investment return = 5%
Currency return = 11.75%
Total return = -6.7%
Who are true US dollar funds for?
The Mackenzie US dollar fund suite allows investors holding US dollars to invest as if they were investing in a US domiciled fund. Investors falling within this criterion include,
but are not limited to:
Investors with
US dollar accounts
Snowbirds, or individuals planning to spend long periods in the US
New investors living in Canada who want to maintain US dollar investments
Small to medium-sized business owners who facilitate US dollar transactions
Mackenzie FuturePath’s
true US dollar funds
Fund name
USD series fund codes (prefix: MFC)
PA
PH
Equity
Mackenzie FuturePath USD US Core
B
13755
C
13756
A
13757
B
13758
C
13759
1 Hypothetical net rate of return is for illustrative purposes only and does not include fees associated with mutual fund investments.
The risk and return characteristics presented above are hypothetical and do not represent the investment performance or the actual accounts of any investors or any mutual funds. The securities selected and asset allocations used to create the back tested results were selected with the full benefit of hindsight, after their performance over the period shown was known. The results achieved in our simulations do not guarantee, and should not necessarily be relied upon as an indication of, future investment results for any of the information described above or discussed herein.
Why invest with Mackenzie
Take advantage of a broad shelf of offerings managed by world-class talent to provide clients with the best investment experience. Leverage the breadth of offerings across asset classes, structures, and currency to find the best products to fit all investor needs. With one of the broadest ranges of US dollar funds among independents, Mackenzie has a true US dollar solution to fit your needs.
Investors purchasing a true US dollar fund will experience overall returns driven by the securities held within the fund, without the potential impact of currency exchange rates at the time of purchase and redemption.
NAVPS represents the value of each unit of a mutual fund and/or ETF. It indicates the price at which the fund will be redeemed when an investor decides
to buy or sell units.
Investor experience
with a true US dollar fund
✓
✓
✓
X
✓
✓
✓
X
Buy the fund with CAD
$125 CAD
After 1-year
(5% investment return)
$105 USD
US purchase option conversion
$100 USD
Redeem units
$105 USD
Convert back to CAD
$150 CAD
StepS
1
2
3
4
Note:
Total return is driven by investment return and currency exchange rates
Investment return = 5%
Currency return = 15%
Total return = 20%
Result
Increase in overall returns
An investor who chooses a US dollar purchase option will place their trade in CAD, and this value would then be converted to USD. If CAD is trading at 0.80 USD, an investor would need $125 to purchase $100 USD. While the investor holds the fund, CAD falls to $0.70 USD and they decide to redeem. The investor earns not only the return on the underlying investment, but also a return on the currency conversion.
A rising US dollar
NAVPS represents the value of each unit of a mutual fund and/or ETF. It indicates the price at which the fund will be redeemed when an investor decides
to buy or sell units.
A
13754
FE
4846