Professional Documents
Culture Documents
These Interim Unaudited Financial Statements do not contain the Interim Management Report of Fund Performance (“MRFP”) of the investment fund. You may obtain a copy
of the Interim MRFP, at no cost, by calling the toll-free number 1-800-387-0614, by writing to us at Mackenzie Financial Corporation, 180 Queen Street West, Toronto, Ontario
M5V 3K1, by visiting our website at www.mackenziefinancial.com or by visiting the SEDAR website at www.sedar.com. Copies of the Annual Financial Statements or Annual MRFP
may also be obtained, at no cost, using any of the methods outlined above.
Securityholders may also contact us using one of these methods to request a copy of the investment fund’s proxy voting policies and procedures, proxy voting disclosure record
or quarterly portfolio disclosure.
Increase (decrease) in fund securities (note 5): Securities Securities Securities Securities Securities
Securities outstanding – beginning of period 750 757 19 10 123 134 2 36 – –
Issued for cash 113 211 1 2 – 1 2 – 13 –
Reinvested from dividends – – – – – – – – – –
Redeemed (85) (96) (4) – (4) (5) – (18) – –
Securities outstanding – end of period 778 872 16 12 119 130 4 18 13 –
Statement of Investments
As at September 30, 2009
Average Fair
No. of Cost Value
Country Sector Shares/Units ($ 000s) ($ 000s)
EQUITIES
Agnico-Eagle Mines Ltd. Canada Materials 1,900 83 138
Astral Media Inc. Class A non-voting Canada Consumer Discretionary 10,500 378 346
The Bank of Nova Scotia Canada Financials 12,500 554 610
Barrick Gold Corp. Canada Materials 14,800 578 600
Birchcliff Energy Ltd. Canada Energy 18,800 119 155
Bombardier Inc. Class B Sub. voting Canada Industrials 50,233 302 248
Brookfield Asset Management Inc. Class A limited voting Canada Financials 4,100 78 100
Canadian Imperial Bank of Commerce Canada Financials 5,300 386 346
Canadian National Railway Co. Canada Industrials 7,900 365 414
Canadian Natural Resources Ltd. Canada Energy 6,000 443 431
EnCana Corp. Canada Energy 9,200 559 570
Goldcorp Inc. Canada Materials 5,100 192 219
Husky Energy Inc. Canada Energy 13,700 444 412
Intact Financial Corp. Canada Financials 14,600 420 495
Loblaw Companies Ltd. Canada Consumer Staples 4,200 125 133
Manulife Financial Corp. Canada Financials 22,200 632 499
Nexen Inc. Canada Energy 8,900 270 215
Potash Corp. of Saskatchewan Inc. Canada Materials 3,800 422 368
Research In Motion Ltd. Canada Information Technology 4,600 437 333
Rogers Communications Inc. Class B non-voting Canada Telecommunication Services 6,300 202 190
Royal Bank of Canada Canada Financials 15,700 713 902
Shaw Communications Inc. Class B non-voting Canada Consumer Discretionary 21,100 415 408
Shoppers Drug Mart Corp. Canada Consumer Staples 7,500 355 329
Suncor Energy Inc. Canada Energy 13,200 558 489
Talisman Energy Inc. Canada Energy 20,600 325 382
Teck Resources Ltd. Class B Sub. voting Canada Materials 4,600 138 136
Thomson Reuters Corp. Canada Consumer Discretionary 11,600 367 416
Toromont Industries Ltd. Canada Industrials 10,500 267 240
The Toronto-Dominion Bank Canada Financials 8,700 535 602
TransCanada Corp. Canada Energy 4,300 153 143
Tristar Oil & Gas Ltd. Canada Energy 9,300 138 145
Total Equities 10,953 11,014
INCOME TRUSTS
Bonavista Energy Trust Canada Energy 10,300 287 210
Total Income Trusts 287 210
3. Income Taxes
Capitalcorp qualifies as a mutual fund corporation under the provisions of the Income Tax Act (Canada). The taxation year-end for Capitalcorp was
changed from January 31 to March 31 effective March 31, 2009.
Taxable Canadian dividends received and capital gains realized by Capitalcorp are subject to tax in a similar manner as any other corporation. Any
taxes paid in respect of Canadian dividends or capital gains are refundable upon the payment of Canadian dividends or capital gains dividends,
respectively, to securityholders based on a formula which includes proceeds paid on securities of Capitalcorp redeemed by securityholders. Payment
of Canadian dividends, if any, will be made by March 31 and capital gains dividends, if any, will be paid within 60 days of Capitalcorp’s taxation
year-end. Dividends are declared separately for each Fund and/or series.
Income from other sources (such as interest and foreign income) is taxed at normal corporate rates. Due to deductible expenses and tax credits
available to Capitalcorp, no taxes are currently payable in respect of these types of income.
Capitalcorp is a single legal entity for tax purposes and is not taxed on a fund-by-fund basis. As such, non-capital and capital losses of Capitalcorp
may be applied against the income and/or capital gains attributable to Capitalcorp as a whole irrespective of the Fund from which the income, gains
and/or losses arose. Therefore, where a Fund has positive net taxable income, the current tax liability has been offset with the utilization of unused
tax losses of Capitalcorp to the extent possible. Any residual taxable income would be refundable upon payment of capital gains or ordinary dividends
by Capitalcorp. This eliminates the requirement for a net tax provision for the Fund.
Capitalcorp follows the asset and liability method of accounting for income taxes whereby future income tax assets and liabilities reflect the
expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities and their tax bases. Future
income tax assets and liabilities are measured based on the enacted or substantively enacted tax rates which are expected to be in effect when the
underlying items of income or expenses are expected to be realized.
Temporary differences between the carrying value of assets and liabilities for accounting and tax purposes give rise to future income tax assets
and liabilities. Where the fair value of the portfolio investments exceeds their cost, a future tax liability arises. This future tax liability for refundable
taxes payable is offset with the refund expected upon payment of capital gains dividends. Where the cost of the portfolio investments exceeds their
market value, a future tax asset is generated. A full valuation allowance is taken to offset this asset given the uncertainty that such future assets
will ultimately be realized. Unused capital and non-capital losses, as disclosed below, also represent future tax assets for which a full valuation
allowance has been established.
Capital losses may be carried forward indefinitely to reduce future realized capital gains. Non-capital losses may be utilized to reduce taxable
income of future years and expire on March 31 of the years indicated. As at the last taxation year-end, the following loss carryforwards were
available for tax purposes.
5. Fund’s Capital
The capital of the Fund is divided into different classes and series with each class and series having an unlimited number of securities. The
securities outstanding for the Fund as at September 30, 2009 and 2008 are presented in the Statements of Changes in Net Assets. Mackenzie
manages the capital of the Fund in accordance with the investment objectives as discussed in Note 8.
(d) Commissions
The brokerage commissions paid to certain dealers included an amount of $0.1 (2008 – $Nil) that was available for payment to third party vendors
for the provision of investment decision making services. This amount represented 1.2% (2008 – Nil%) of the total commissions and other
transaction costs paid during the period.
(e) Change in Mandate and Name Change
Effective October 2, 2009, the Fund changed its investment strategy by primarily investing in Canadian securities. Concurrent with this change, the
Fund was renamed from Mackenzie Maxxum Canadian Equity Growth Class to Mackenzie Maxxum All-Canadian Equity Class.
(f) Risks Associated with Financial Instruments
i. Risk exposure and management
The Fund aims to increase investors’ capital over the long term by investing primarily in Canadian stocks. The portfolio manager follows a growth
style of investing. This means that he looks for companies that he believes are growing at rates faster than market rates, and considers whether
those companies’ share prices are likely to follow suit. The portfolio manager examines the earnings, cash flow, revenues and, for resource
companies, reserves of companies to determine where to invest the Fund’s assets.
ii. Currency risk
The table below indicates currencies to which the Fund had significant exposure as at period end in Canadian dollar terms, including the underlying
principal amount of any forward currency contracts. Other financial assets and liabilities (including accrued interest and dividends receivable, and
receivables/payables for securities sold/purchased) that are denominated in foreign currencies do not expose the Fund to significant currency risk.
Sep. 30, 2009 Mar. 31, 2009
Cash and Forward Cash and Forward
Short-Term Currency Net Short-Term Currency Net
Investments Investments Contracts Exposure* Investments Investments Contracts Exposure*
Currency ($) ($) ($) ($) ($) ($) ($) ($)
U.S. Dollars – – – – 1,493 – – 1,493
U.K. Pounds – – – – 239 – – 239
Swiss Francs – – – – 46 – – 46
Total – – – – 1,778 – – 1,778
As Percent of Net Assets (%) – – – – 18.7 – – 18.7
* Includes both monetary and non-monetary financial instruments
As of September 30, 2009, had the Canadian dollar increased or decreased by 5% relative to all foreign currencies, with all other variables held
constant, net assets would have decreased or increased, respectively, by approximately $Nil or Nil% of total net assets (March 31, 2009 – $89 or
0.9%). In practice, the actual trading results may differ and the difference could be material.
iii. Interest rate risk
As of September 30, 2009 and March 31, 2009, the Fund did not have a significant exposure to interest rate risk.
iv. Other price risk
The Fund’s most significant exposure to price risk arises from its investment in equity securities, income trusts and index funds. As at September 30,
2009, had the prices on the respective stock exchanges for these securities increased or decreased by 10%, with all other variables held constant,
net assets would have increased or decreased by approximately $1,122 or 9.3% of total net assets (March 31, 2009 – $904 or 9.5%). In practice,
the actual trading results may differ and the difference could be material.
v. Credit risk
As of September 30, 2009 and March 31, 2009, the Fund did not have a significant exposure to credit risk.