Mackenzie Financial 13F Portfolio

The biggest buys table makes one thing obvious: they want more duration and more operating leverage to secular trends, not just simple beta.

• UnitedHealth (up 112.2%, +$228.2M) is the standout: they’ve effectively doubled exposure to the dominant managed-care platform. That’s a clear bet that scale, data and complexity in US health care will keep compounding UNH’s earnings, even if policy risk is noisy.
• Canadian Pacific Kansas City (+9.1%, +$175.0M) extends an already large bet on North American freight and cross‑border trade integration. Pair that with a smaller add to Canadian National Railway, and you’ve got a thesis that railroads remain the lowest‑cost infrastructure for continental growth.
• Brookfield Corp (BN) (+12.5%, +$166.3M) and Visa (+25.0%, +$129.3M) are being treated as global tollbooths on capital and commerce. Both sit in the real‑asset and payments ecosystems where volume growth and pricing power can coexist for a long time.
• Amazon (+9.2%, +$127.6M) is a vote for cloud and logistics scale, not just e‑commerce. They’re pairing that with deeper exposure to the AI supply chain further down the stack — notably Micron (+18.1%, +$100.6M), where they’re leaning into memory as a tight bottleneck for AI and data‑center build‑out.
• Wheaton Precious Metals (+16.3%, +$104.5M) and incremental moves in Agnico Eagle, Barrick and Hudbay show they still like precious‑metals optionality, but are rotating within the complex rather than abandoning it.

Taken together, the “buy” side is about platform economics: health insurers, rails, payments networks, hyperscale cloud and royalty‑style metals exposure, all scaled franchises with advantaged unit economics.

On the sell side, Mackenzie is harvesting from exactly where you’d expect after a long run of outperformance and crowding: over‑owned defensives and local cyclicals.

• Franco‑Nevada (down 34.7%, -$251.4M) is the single largest trim, even as they added to Wheaton. That looks like a relative value and concentration call within gold royalties rather than a macro call on the metal itself.
• Royal Bank of Canada (-4.3%, -$247.0M) and TD (-5.1%, -$210.7M) are classic “source of funds” trades: huge, highly profitable positions with large embedded gains being clipped at the margin to free capital. Apple (-7.9%, -$218.8M) sits in the same bucket — still a core holding, just less of it.
• Cenovus (-16.6%, -$148.8M), Teck (-18.5%, -$139.8M) and Pembina (-13.9%, -$75.3M) show them easing back on more volatile energy and mining exposure even as they keep integrated names like Suncor and Canadian Natural essentially intact.
• Brookfield’s listed manager BAM (-20.7%, -$128.3M), Cisco (-21.3%, -$126.0M), TELUS (-11.7%, -$58.8M), Linde (-14.3%, -$73.0M), Kinross (-15.5%, -$80.2M) and AbbVie (-17.3%, -$89.9M) all fall into a similar pattern: trimming mature or lower‑growth franchises where multiple expansion has already done some work.

The important nuance: they’re not capitulating on any theme. They’re compressing position sizes in crowded winners and more marginal cyclicals, and recycling that cash into higher‑conviction expressions of the same broad ideas — rails over miners, UNH over slower pharma, Micron over incremental mega‑cap tech beta.

Viewed by sector, the shift is subtle in basis points but clear in intent: incremental dollars are sliding from domestic financials, energy and gold into tech, health care, real assets and rails.

Technology rose to 22.1% from 21.87%, not via the glamour names (Apple and Nvidia were both trimmed) but through adds to Microsoft, Broadcom, Micron and Applied Materials. That’s a rotation from headline AI winners into the plumbing — memory, equipment and the cloud platforms that monetize AI over time.

Health care climbed to 5.07% from 4.8%, almost entirely on the UnitedHealth and Eli Lilly adds, offsetting cuts to Johnson & Johnson and AbbVie. It reads as a move toward growthier, innovation‑driven cash flows and away from slower big‑pharma stalwarts.

Finance, at 29.04%, remains the anchor but edged down as the big Canadian banks were trimmed while Canadian Imperial, Bank of Nova Scotia, Manulife, Sun Life and JPMorgan saw tweaks rather than wholesale changes. Energy slipped to 9.03% from 9.26% and basic materials to 9.16% from 9.43%, reflecting the Teck, Cenovus, Pembina, Franco‑Nevada and Kinross reductions even as they added to Hudbay and Wheaton.

Real‑asset adjacencies are quietly growing: real estate (largely Brookfield and the misclassified Visa/Mastercard) rose to 4.21% from 3.83%, and industrials nudged up to 7.0% on the back of the rail buys. Telecommunications dropped to 1.51% from 1.8% as Cisco and TELUS were used as partial funding sources.

Read holistically, this quarter looks like a quality upgrade rather than a style lurch. Mackenzie is keeping its traditional ballast in Canadian banks, pipelines and gold, but the marginal trade is to exchange some local cyclicality and crowded defensives for global, scale‑driven profit engines.

The way they rebalanced tech — shaving Apple and Nvidia while adding to Microsoft, Broadcom, Micron, Applied Materials and Amazon — says they see more durable upside in the infrastructure and monetization layers of AI and cloud than in any single end‑device cycle. The UnitedHealth and Eli Lilly adds tell a similar story in health care: pay for proven innovation and system leverage, not just dividend yield.

Trims in Franco‑Nevada, Teck, Cenovus, TELUS, Cisco, AbbVie and the Canadian megabanks look like risk‑budget management in a book that already compounded at 14.47% annualized over three years. With sector weights only modestly changed, the real shift is inside those buckets — toward names with better unit economics, more recurring revenue and more direct exposure to secular growth.

If that continues, expect the portfolio to behave slightly less like a pure Canadian macro proxy and more like a global compounder sleeve sitting on a domestic value core. The next few quarters will show whether they keep migrating in that direction or treat this as a one‑off rebalance after a strong 11.05% quarter.