| The Mackenzie Income Trust
arose from a need to finance the commissions
paid to Investment Dealers on redemption charge
securities (RCS) purchased in 1997 and 1998.
It was formed in 1998 to finance the selling
commissions paid to dealers on these redemption
charge securities mutual funds issued by Mackenzie
Financial Corporation.
The first back-end mutual fund was created
in 1987 by Mackenzie Financial - the Industrial
Horizon Fund. This type of security is sold
to investors without a sales charge at the
time of purchase. The sales charge to investors
is deferred until the time of redemption, subject
to a declining redemption fee schedule. This
fee is known as a Deferred Sales Charge or
DSC Fee.
From 1987 to 1994, DSC commissions paid to
Dealers for RCS securities were financed through
various limited partnerships. As tax changes
made by Canada Revenue Agency (CRA) made limited
partnerships unviable, DSC commissions
from 1995-1996 were funded either directly
by Mackenzie Financial or partially by the
Mackenzie Securitized Partnership. |
