Shares of the Mackenzie Precious Metals Fund (MFC8530) have recently been incorporated into the SIACharts Hypothetical 5 CAD Mutual Fund Model at a price of $76.55, following quarterly rebalancing at the end of Q3. The model focuses on mutual funds within the top five relative strength-ranked sectors, with precious metals equity (EWI186) currently holding the #1 position in the SIA Mutual Fund Sector Report. MFC8530 distinguishes itself from typical precious metals funds by offering a diversified portfolio that includes senior, intermediate producers, and junior explorers, as well as direct investments in precious metals. Its top ten holdings, which comprise 44.91% of the fund, include major players like Agnico Eagle Mines (11.14%) and Barrick Gold (4.67%). This diversification makes the fund particularly appealing for advisors looking to invest in a hot sector while saving time and effort. In terms of performance, MFC8530 has experienced a remarkable increase of 44.33% over the past nine months. This contrasts sharply with its three-year performance of only 10.69%, suggesting that the fund may be entering a new growth phase. Currently ranked #1 among Mackenzie funds, MFC8530 is backed by strong relative strength metrics, as detected by the SIA Ai platform. Additionally, the fund has achieved a perfect SMAX score of 10, reinforcing its standing against other asset classes.

From a technical perspective, MFC8530 is demonstrating a major breakout on a 1% point and figure chart, having recently surpassed the critical $75 resistance level. This breakout follows a triple top formation and indicates potential further gains, with resistance identified at $85.31 based on the vertical count from prior consolidation. Should the fund reach $79.57, it would complete a follow-up double top (catapult), signaling continued bullish momentum. With strong technical indicators and impressive relative strength readings, MFC8530 appears well-positioned for future performance, making it a compelling option for investors looking to capitalize on the precious metals sector.

The Compound Annual Growth Rate (CAGR) of 13.42% significantly outperforms the SIA CAD 60/40 Balanced benchmark, which stands at 7.26%. Since its inception, this research strategy has achieved impressive returns of 728% (gross of fees) compared to the benchmark’s 224%, demonstrating the effectiveness of combining relative strength with a concentrated investment approach. However, the model faced challenges during the summer months, reflected in a 3-month performance of only 1.89% versus the benchmark’s 6.46%. Recent portfolio adjustments appear to be positively impacting performance, with a one-month return of 4.16% compared to the benchmark’s 1.69%, indicating a recovery in momentum. Importantly, the strategy continues to generate alpha, currently measuring at 2.87, while maintaining a low beta of 0.53, which signifies reduced volatility relative to the market. The up capture rate of 98% and a down capture rate of only 25% further illustrate the strategy's ability to perform well in rising markets while minimizing losses in downturns. Fund Selection Process: FOR ADVISOR USE ONLY - The hypothetical fund selection process recommends the top 5 relative strength ranked names, one each from the top 5 relative strength ranked mutual fund sectors. This model is rebalanced and monitored only on a quarterly basis. On a quarterly basis, the model is updated which looks to own only mutual funds within the top 5 relative strength ranked sectors. If the individual fund drops below the Favored zone on the quarterly update, it is sold and the model recommends to buy the top ranked fund within that sector universe with a 6 or higher SMAX score. During a quarterly rebalance period, a fund stays in the model if the sector is still ranked within the top 5 rankings and the fund is still found in the Favored zone of its respective sector report. We will not consider any Leveraged or inverse sectors for this strategy or US Currency Mutual Funds