January Distributions Error Affecting Balanced Funds

We identified that an error was made on January 29, 2016 in calculating the amount of monthly distribution paid out on the three Mawer Balanced funds. Balanced Fund, Global Balanced and Tax Effective Balanced funds pay out interest income on a monthly basis and pay capital gains + dividends annually. On January 29, capital gains were paid out erroneously due to an administrative error by our fund valuation service provider. This affected the daily price (NAV) and the unit distribution.

To correct this, January 29 distributions in each of the three funds were identified, cancelled and new, correct distributions processed. These corrections were done overnight February 2 and all unitholder accounts were updated at that time. Details of the impact in each fund can be found here.

To prevent future errors, our fund valuation service provider, is completing a thorough review of their processes to identify the points of failure that allowed this error to occur and then go unchecked before the distributions were processed.  On our end, we are also putting additional checks in place to ensure that the NAVs are accurate before they are released publicly. Oversight of our service providers is our responsibility. We take full accountability for this error and we are taking all possible steps to prevent a reoccurrence.

On behalf of Mawer, I would like to offer my personal apology for this error. It is not representative of the level of excellence we strive to provide our clients.

If you have any questions about your account, please contact your Mawer representative directly.


Sincerely,

Michael Mezei
President