Key Highlights

  • Mackenzie Financial Corporation filed annual audited financial statements for the Mackenzie Global Sustainable High Yield Bond Fund for the fiscal year ended March 31, 2026, with the disclosure available on SEDAR+.
  • The statements were audited by KPMG LLP and prepared in accordance with IFRS Accounting Standards, with Canadian dollars as both the functional and presentation currency.
  • Management responsibility for the financial statements was affirmed by Luke Gould, President and CEO of Mackenzie Financial Corporation, and Terry Rountes, Chief Financial Officer, Funds.
  • The Fund is a global sustainable high-yield bond fund, investing in higher-yielding, below-investment-grade fixed-income securities with a sustainability or ESG mandate layered on top of credit selection.
  • Unitholders and prospective investors are encouraged to read the full annual financial statements on SEDAR+ for specific figures on net assets, portfolio composition and performance, none of which are cited in this article to avoid error.

Introduction: Annual Audited Statements for a Sustainable High-Yield Bond Fund

Every registered Canadian investment fund is required to produce annual audited financial statements and to file those statements on SEDAR+, Canada's System for Electronic Document Analysis and Retrieval. The Mackenzie Global Sustainable High Yield Bond Fund has now done so for the fiscal year ended March 31, 2026. The fund is managed by Mackenzie Financial Corporation — widely known by its brand name Mackenzie Investments — which is a subsidiary of IGM Financial Inc. IGM Financial trades on the Toronto Stock Exchange under the symbol IGM and is itself a subsidiary of Power Corporation of Canada.

This is an important distinction that readers should understand from the outset: the Mackenzie Global Sustainable High Yield Bond Fund is a mutual fund, not a publicly listed security. It does not have its own stock-exchange ticker. Unitholders purchase units through a prospectus-based offering — typically through financial advisers, investment dealers or direct investment platforms — rather than by buying shares on an exchange. The annual financial statements filed on SEDAR+ are therefore disclosure documents directed primarily at existing unitholders and prospective investors who are considering the fund, not a corporate announcement of the kind that moves a listed stock.

This article explains what the annual audited financial statements represent, what the Mackenzie Global Sustainable High Yield Bond Fund's mandate means in practice, who oversees the fund and signs off on its financials, and what the general risk and return characteristics of a global sustainable high-yield bond fund look like for investors. Specific financial figures — net asset values, portfolio returns, asset breakdowns — are available in the complete filing on SEDAR+ and should be reviewed there directly; they are not reproduced in this article to avoid transcription error. Nothing here constitutes investment advice.

Fund and Manager Background: Mackenzie Financial Corporation and IGM Financial

Mackenzie Financial Corporation has been one of Canada's prominent investment management firms for decades. Operating under the Mackenzie Investments brand, it offers a broad range of mutual funds, exchange-traded funds and other managed products spanning equity, fixed income, balanced and alternative strategies. The firm serves individual investors, institutional clients and financial advisers across the country, distributing its products primarily through the adviser channel.

Mackenzie Financial Corporation is a wholly owned subsidiary of IGM Financial Inc. (TSX: IGM), one of Canada's largest financial services groups. IGM Financial is itself majority-controlled by Power Corporation of Canada, a large diversified holding company. For investors who wish to have exposure to the business of managing funds like the Mackenzie Global Sustainable High Yield Bond Fund at the corporate level, IGM Financial's common shares are the relevant publicly traded vehicle; they trade on the Toronto Stock Exchange under the symbol IGM. The fund itself, again, does not trade on any exchange.

The appointment of KPMG LLP as external auditor reflects standard practice for a fund of this type. KPMG is one of the 'Big Four' global accounting firms and conducts audits for a large number of Canadian and international investment funds. Its role is to audit the fund's financial statements and provide an independent opinion on whether they present the fund's financial position, financial performance and cash flows fairly in accordance with IFRS Accounting Standards. The involvement of a major international auditor provides an additional layer of assurance for unitholders beyond the management's own representations.

Summary of the SEDAR+ Filing: What Annual Fund Financial Statements Contain

Annual audited financial statements for a Canadian investment fund are a comprehensive set of documents that go well beyond a simple income-and-expense summary. Under IFRS Accounting Standards — the framework specified in the filing — the statements typically include a statement of financial position (balance sheet) showing the fund's net assets and their composition; a statement of comprehensive income detailing investment income, expenses and realised and unrealised gains and losses; a statement of changes in net assets attributable to holders of redeemable units; a statement of cash flows; and a schedule of investment portfolio listing every security held by the fund at the year end.

The schedule of portfolio investments is often the most closely read section by investment analysts and fund researchers. It discloses, as at the fund's year end, every individual position in the portfolio — the security name, country, sector, par value or number of units held, cost, fair value and percentage of net assets. For a global high-yield bond fund, this schedule would reveal the geographic distribution of the portfolio, the credit quality of the holdings, the sectors represented, and the degree of concentration in any single issuer or country.

The notes to the financial statements are equally important. They disclose the fund's accounting policies, the fair-value hierarchy applied to different types of securities, any significant estimates and judgements made by management, related-party transactions (including fees paid to the manager and any fund-of-fund structures), financial instrument risks (credit risk, interest-rate risk, currency risk, liquidity risk), and unit-transaction data showing how the fund's unit count changed during the year through subscriptions and redemptions. Unitholders who want to understand their fund fully should read all of these components, not just the headline net-asset figure.

The Most Important Details: Governance, Accountability and the Auditor's Role

The Management's Responsibility for Financial Reporting section of the filing, signed by Luke Gould (President and Chief Executive Officer, Mackenzie Financial Corporation) and Terry Rountes (Chief Financial Officer, Funds), sets out the formal accountability structure for the financial statements. Under Canadian securities regulation and IFRS requirements, management is responsible for the preparation and fair presentation of the financial statements, for maintaining adequate internal controls, and for ensuring that the fund's accounting policies are applied consistently and appropriately.

The signatures of the President & CEO and the CFO, Funds, on this section are not a formality. They represent a formal representation by senior management that the financial statements have been prepared with integrity and in accordance with the applicable standards. If material errors or misstatements were subsequently discovered, those executives would bear regulatory and potentially legal responsibility for them. This governance structure is part of the investor-protection framework that underpins public fund disclosure in Canada.

KPMG LLP's audit opinion, which accompanies the financial statements, provides independent verification of management's representations. The audit process involves testing the fund's valuation methodologies for its securities, confirming that income and expenses have been recorded correctly, verifying that unit transactions have been accounted for properly, and assessing whether the disclosures in the notes are complete and accurate. An unqualified (clean) audit opinion from KPMG would indicate that, in the auditor's professional judgement, the financial statements present the fund's affairs fairly. Unitholders should read the full audit opinion in the filed document for the precise wording and any qualifications.

Why Investors May Be Watching: The Case for Reviewing Annual Fund Statements

Many mutual fund investors pay less attention to annual financial statements than to quarterly performance reports or fund fact sheets. This is understandable — quarterly updates are more frequent, shorter and often presented in a more accessible format. However, the annual audited financial statements contain information that no other document provides: verified, independently audited data on the fund's financial position for an entire fiscal year.

For unitholders in the Mackenzie Global Sustainable High Yield Bond Fund, the annual statements answer several important questions. How has the fund's net asset value changed over the year, and what drove that change — income, realised gains, unrealised gains, or some combination? What expenses did the fund incur, including management fees, administration fees and other operating costs, and how do those compare with the prior year? What did the portfolio look like at March 31, 2026, in terms of geographic exposure, sector allocation and credit quality? Were there any significant changes in the investment process or accounting policies?

These are not merely academic questions. For investors comparing this fund against its peers, or assessing whether it continues to meet their investment objectives, the annual statements provide data that is not available anywhere else in audited form. Reviewing the statements is a basic step in responsible fund stewardship, and Mackenzie's filing of these statements on SEDAR+ ensures they are publicly accessible to anyone who wants to examine them.

Market Context: The Canadian Mutual Fund Industry and SEDAR+ Disclosure

Canada has one of the largest mutual fund industries relative to population among developed economies. Tens of millions of Canadians hold mutual funds in registered accounts — Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), Registered Education Savings Plans (RESPs) and others — as well as in non-registered investment accounts. The mutual fund industry is overseen by the Canadian Securities Administrators (CSA), the umbrella body of provincial and territorial securities regulators, and is governed by National Instrument 81-101 (Mutual Fund Prospectus Disclosure) and National Instrument 81-106 (Investment Fund Continuous Disclosure), among others.

Under NI 81-106, investment funds are required to file annual and interim financial statements with securities regulators, and those statements must be made available to investors. SEDAR+ is the platform through which this disclosure is made public. The requirement for an annual audit by an independent registered public accounting firm — KPMG LLP in this case — is also mandated by regulation and is designed to protect investors by ensuring the integrity of the financial information they receive.

IGM Financial (TSX: IGM), as the parent company of Mackenzie Financial Corporation, is itself subject to the continuous disclosure requirements applicable to TSX-listed public companies. Investors who hold IGM Financial shares on the TSX would monitor Mackenzie's fund performance and AUM trends as factors affecting IGM's revenue and profitability, since Mackenzie's management fees flow through to IGM's consolidated results. However, the annual financial statements of the Mackenzie Global Sustainable High Yield Bond Fund are the fund's own disclosure documents — they pertain to the fund's assets and results, not to IGM Financial's corporate financials.

Industry Context: What 'Global Sustainable High Yield' Means for Fixed-Income Investors

The name of the fund — Mackenzie Global Sustainable High Yield Bond Fund — contains three distinct investment concepts that are worth unpacking for investors who are newer to fixed income or ESG investing. Understanding each element provides essential context for evaluating whether this type of fund fits a given investor's objectives and risk tolerance.

'High yield' refers to the credit quality and associated yield characteristics of the bonds held in the portfolio. High-yield bonds — also commonly called 'junk bonds,' though that term is less used in professional circles — are bonds issued by companies that carry credit ratings below investment grade. The major rating agencies assign credit ratings to bond issuers; investment-grade bonds are those rated BBB- or above by S&P/Fitch, or Baa3 or above by Moody's. Bonds rated below those thresholds are considered high yield. Because the issuing companies carry a higher risk of default — that is, failing to make scheduled interest or principal payments — investors demand a higher rate of interest (yield) as compensation. In benign economic conditions, high-yield bonds can generate attractive income; in recessions or periods of credit stress, default rates rise and prices can fall sharply.

'Global' indicates that the fund is not restricted to Canadian or North American issuers. It can invest in high-yield bonds issued by companies in Europe, Asia, Latin America and other markets, subject to any constraints in its investment mandate. Global diversification can reduce concentration in any single economy but adds currency exposure and requires expertise in multiple jurisdictions' credit markets and regulatory frameworks. Currency risk — the risk that the Canadian dollar appreciates against foreign currencies in which bonds are denominated, reducing the Canadian-dollar value of those holdings — is a material consideration for a global fixed-income fund.

'Sustainable' indicates that the fund applies environmental, social and governance (ESG) criteria to its investment process alongside traditional credit analysis. This can take various forms: exclusionary screening (avoiding issuers in certain industries, such as thermal coal or controversial weapons), ESG scoring (assessing issuers on sustainability metrics), positive selection (favouring issuers with stronger ESG profiles within the high-yield universe), or engagement (seeking to influence issuer behaviour through active ownership). The specific methodology applied by Mackenzie to this fund would be described in its prospectus, fund facts and other regulatory documents available on SEDAR+.

Potential Opportunities

For investors who hold units of the Mackenzie Global Sustainable High Yield Bond Fund, the annual audited financial statements represent an opportunity to conduct a thorough annual review of their investment. The full filing on SEDAR+ provides the verified data needed to assess the fund's fee burden, the evolution of its portfolio, any changes in the fund's overall scale, and the manner in which gains and losses accumulated over the fiscal year.

For prospective investors considering the fund, the annual statements — read alongside the current prospectus and fund facts sheet — offer a comprehensive view of the fund's historical financial presentation. While past financial data is not a guarantee of future results, the portfolio schedule and income statement provide a concrete picture of the type of securities the fund invests in and the income and expense structure it operates under.

At a broader thematic level, the sustainable high-yield bond category represents an intersection of two investment trends that have attracted significant attention from Canadian and global investors: the search for income in a world where traditional government and investment-grade bond yields may not meet income-seeking investors' needs, and the growing integration of ESG considerations into fixed-income portfolios. A fund that combines both themes under a major manager like Mackenzie may appeal to investors seeking both income potential and alignment with sustainability values — though the trade-offs between yield, credit risk and ESG filtering are real and should be understood before investing.

Key Risks and Uncertainties

High-yield bonds carry materially higher credit risk than government bonds or investment-grade corporate bonds. In periods of economic stress, high-yield issuers are more likely to default on their debt obligations, which can result in significant losses for bond holders. A fund investing globally in high-yield bonds is exposed to the credit cycles of multiple economies simultaneously, which can amplify both gains and losses depending on the direction of the global credit environment.

Interest-rate risk is another significant consideration. When interest rates rise, existing bond prices fall — and this relationship is more pronounced for longer-duration bonds. High-yield bonds tend to have shorter durations than investment-grade bonds, which somewhat mitigates interest-rate sensitivity, but the effect is not zero. A fund with a global mandate may also be exposed to different interest-rate cycles in different countries, adding complexity to the duration profile.

Currency risk, liquidity risk and ESG mandate risk round out the key considerations. Currency risk arises because the fund holds bonds denominated in foreign currencies; adverse currency movements can offset the income generated by high yields. Liquidity risk is relevant because high-yield bond markets, while generally functioning, can become illiquid in stress periods, making it difficult to exit positions without accepting lower prices. ESG mandate risk refers to the possibility that the sustainability screen constrains the investable universe in ways that affect performance relative to a non-ESG high-yield benchmark. Unitholders should read the risk section of the full prospectus and the notes to the financial statements for a complete discussion of these and other risks.

What Could Affect the Fund Next

For a fixed-income mutual fund, the key drivers of performance in the coming period are primarily external: the trajectory of global interest rates, the health of the global credit cycle, and the relative performance of high-yield issuers across the industries and geographies represented in the portfolio. If global economic conditions remain stable, high-yield bonds tend to generate returns from their income component; if economic conditions deteriorate, credit spreads — the premium above government bond yields that high-yield issuers pay — can widen sharply, reducing bond prices and potentially leading to defaults.

Specifically for the sustainable high-yield bond mandate, the evolution of ESG standards and regulatory requirements in different jurisdictions is also relevant. As ESG disclosure regulations tighten globally — including rules in the European Union, Canada and other major markets — the quality and comparability of ESG data available to fund managers may improve, potentially affecting how the sustainability screen is applied and how the fund's portfolio evolves.

At the manager level, any changes at Mackenzie Financial Corporation or IGM Financial — in leadership, investment team, fee structures, fund mergers or strategic direction — could affect how the fund is managed going forward. Unitholders should monitor communications from Mackenzie and review any amendments to the fund's prospectus or other regulatory filings for material changes to the fund's investment mandate, fees or management structure.

Long-Term Outlook

The long-term outlook for any investment fund depends on factors that are inherently uncertain: market conditions, the quality of the manager's investment process, the evolution of the asset class and the regulatory environment. For the Mackenzie Global Sustainable High Yield Bond Fund, the long-term case rests on several premises: that global high-yield bonds continue to offer a yield premium sufficient to compensate for credit risk; that Mackenzie's investment team can identify and manage that credit risk effectively; and that the sustainability overlay adds value either through better risk management, access to improving ESG-aligned issuers, or both.

The high-yield bond market has historically provided returns between those of investment-grade bonds and equities over full market cycles, with higher volatility than the former and lower volatility than the latter. Whether this return profile is consistent with any given investor's objectives and risk tolerance is a personal determination that should be made with reference to the investor's time horizon, other assets and income needs.

The annual audited financial statements for the fiscal year ended March 31, 2026, provide the most recent verified baseline for assessing how the fund has performed and what it holds. They are the foundation on which an informed long-term view of the fund should be built — but they are a starting point, not an ending point. Investors are encouraged to consult the full filing and to seek professional financial advice tailored to their circumstances.

Conclusion

Mackenzie Financial Corporation has filed annual audited financial statements for the Mackenzie Global Sustainable High Yield Bond Fund for the fiscal year ended March 31, 2026, on SEDAR+. The fund is managed by Mackenzie Investments, a subsidiary of IGM Financial Inc. (TSX: IGM), and was audited by KPMG LLP. The statements were prepared under IFRS Accounting Standards, with Canadian dollars as the functional and presentation currency, and management responsibility was affirmed by Luke Gould, President and CEO, and Terry Rountes, CFO, Funds.

The fund is a mutual fund — not an exchange-listed security — that invests in global, below-investment-grade bonds with a sustainability mandate layered onto its credit-selection process. Its annual financial statements are a key disclosure document for unitholders, providing an independently verified account of the fund's financial position, income, expenses and portfolio composition for the fiscal year.

Investors who hold or are considering units in this fund should read the complete filing on SEDAR+, including the portfolio schedule, notes and auditor's opinion. Given the specific risks associated with high-yield bonds — credit risk, interest-rate sensitivity, currency risk and liquidity risk — and the additional considerations of a global and ESG-constrained mandate, professional financial advice is particularly valuable before making allocation decisions. This article is a factual overview, not a recommendation of any kind.