The Funds

What are your fund codes?

What is the difference between Series A and Series O funds?

Series A funds are a no-load, no trailer Mutual Fund series. Series A funds are available to investors through multiple channels such as Mawer Direct Investing Ltd., discount brokerages, and investment advisors. Series O funds are available to Mawer Investment Counselling investors with a $2 million minimum. This fund series has a tiered outside fee schedule.

Do you have an F Series?

We do not offer F Series funds, however, many advisors use our funds in fee based accounts. Since we do not pay trailers or commissions, our funds can be used effectively in the same manner as  F Series funds. 

Does the MER of the Mawer Balanced Fund include the fees of the underlying funds?

Yes. You only pay the Mawer Balanced Fund MER. The underlying funds that the Balanced Fund holds are Series O funds. These funds have small expense ratios (typically under 0.10%) however they do not charge a management fee (which is what constitutes the bulk of the MER). The Balanced Fund MER is an all-inclusive fee which takes into account the management fee of the Balanced Fund as well as the expense ratios of the underlying funds. In short, you are not double charged for the underlying funds.

See the MERs for our Series A funds here.

Is the Mawer New Canada Fund available for purchase?

No, the Mawer New Canada Fund is closed to new and existing mutual fund investors. Our concern is that an influx of new capital into the fund might exceed the available investment opportunities to the detriment of the performance of the fund and, in turn, our existing clients.

 

When are the funds priced?

The Mawer Mutual Funds are priced once per business day, after the markets have closed.

You can view the prices for the previous business day here.

Do you have funds that trade in U.S. dollars?

No, all of our mutual funds are denominated in Canadian dollars.

What is the difference between your balanced funds?

The Balanced Fund and the Tax Effective Balanced Fund hold the same allocation of securities. The difference lies in the tax overlay strategy within the Tax Effective Balanced Fund. The Tax Effective Balanced Fund tries to minimize distributions to unitholders to defer their tax liability and allow the investment to grow with less of a tax drag by holding the underlying securities individually (instead of holding funds as is the case for the Balanced Fund) and offsetting capital gains with capital losses. We recommend that investors hold the Balanced Fund in tax sheltered accounts (RRSP, SPRRSP, TFSA, RRIF, LIF, etc), and hold the Tax Effective Balanced Fund in non-registered, fully taxable accounts. The Global Balanced Fund leverages our global equity platform for capital allocation, combined with a stock-by-stock approach to risk management in order to improve portfolio resiliency. Equities are coupled with the stability of investment grade Canadian and Global bonds. A global focus means the fund has a wider investment universe to choose from and a smaller concentration in Canadian equities. 

Learn more about the difference here

What is the difference between the Mawer Global Equity and Mawer International Equity fund?

The major difference between the two funds is geographic. The International Equity Fund (IEF) invests in entities outside of Canada and the United States. The Global Equity Fund (GEF) invests in entities from around the world. In general, the GEF can be used as a standalone fund, whereas the IEF can be used as part of an overall asset mix, particularly if you already have a larger exposure to Canadian and U.S. equities.

Do your funds hedge currency exposure?

No, we do not hedge currency exposure. For a more detailed explanation for our rationale, see The Portfolio is the Hedge.

Fee and Purchase Inquiries

What are your fees for A Series Funds?

Mawer Mutual Funds are no-load, meaning there are no sales or trailing commissions, no set-up fees, and no purchase, transfer or redemption fees. Clients only pay the Management Expense Ratio (MER).

See the MERs for our Series A funds  here.

Do you have trailing commissions? Any additional fees?

No, the Management Expense Ratio (MER) is the only fee charged. Please contact your broker/dealer directly to inquire about any fees they may charge.

See the MERs for our Series A funds here.

Do you have short-term trading or early redemption fees?

All Mawer Mutual Funds have a holding period of 90 days to avoid a short-term trading penalty. We have the option to levee a 2% fee in such circumstances.

What are your minimum investment levels?

Mawer Direct Investing Ltd. requires a minimum of $250,000.

Mawer Investment Counselling requires a minimum of $1 million.

Mawer Mutual Funds can be purchased via an investment advisor or through a discount brokerage for a minimum of $5,000 per fund.

Learn more about the different ways to invest here.

What are TERs?

The Trading Expense Ratio (TER) is a measure of the fund's trading costs. It represents total trading commissions (expenses) expressed as an annualized percentage of average daily net assets during the year. The TER is independent of a fund's Management Expense Ratio.

Can I purchase your funds through my investment advisor or discount broker?

Yes, Mawer Mutual Funds are available for purchase through investment advisors and discount brokers (with the exception of RBC Direct Investing).

A minimum initial purchase of $5,000 per fund is required. Once the initial minimum is met, there are no minimum requirements for additional investments.

To invest through a discount broker or investment advisor, please contact the financial institution or investment advisor directly.

Can I buy your funds through my RBC Direct Investing account?

No, Mawer Mutual Funds are no longer offered through RBC Direct Investing.

Can I buy non-Mawer funds or other securities through Mawer Direct Investing Ltd.?

No, Mawer Direct Investing Ltd. only offers Mawer Mutual Funds for purchase.

Can I transfer my investments to you?

Yes, you can transfer funds from any existing registered or non-registered account that you hold at another institution. Please contact us to find out how we can help with the transition. 

Do I have to be a Canadian resident to invest with Mawer?

Yes, you must be a Canadian resident to open a account with Mawer.

Do I have to be a Canadian resident to invest with Mawer Direct Investing Ltd.

Yes, you must be a Canadian resident to hold/open an account with Mawer Direct Investing Ltd. ("MDIL"). MDIL can open accounts for clients in BC, AB, SK, MB and ON.

What is your cut off time for trade instructions?

We require all trade instructions to be provided by 12pm (noon) MST in order to complete trades on the same day.

Tax and Distributions

What are distributions?

Distributions are the mechanism by which mutual funds transfer interest, dividend income, and realized capital gains that have accrued inside the fund over the course of the month or year to unit holders.

Something important to keep in mind is that distributions do not necessarily relate to a fund’s short-term performance. A fund may pay a distribution even if its performance during the year is negative. Conversely, in a year of strong performance, a fund may pay out a much smaller distribution than what the annual return may suggest.

Why do mutual funds pay distributions?

Mutual funds pay taxes at the highest marginal tax rate. As such, it is more tax-efficient for mutual funds to distribute their income and gains to unitholders so that the income is taxed at a more favourable rate.

Why did the price of the fund drop immediately following a distribution payout?

Immediately following a distribution, the price of a fund drops by an amount equivalent to the payment. The offset occurs when additional units of the fund are issued to the account and these are equivalent in value to the amount of the distribution. This means that the value of your investment doesn’t change; instead you end up owning more units in the fund at a lower unit price.

For example, let’s say you own 100 units in a fund that is valued at $10.00/unit for a total investment value of $1,000. If the fund pays a distribution of $0.10/unit, its price will drop to $9.90 following the distribution ($990). But, because 1.01 units ($0.10/$9.90) will be re-invested in the fund, the value of your investment remains unchanged (101.01 units x $9.90/unit = $1,000).

Why is there a capital gain on my T3 when I didn't sell anything?

Mutual funds are structured in such a way that when the fund pays out a distribution (from interest, dividend income, realized capital gains) the individual investor or unitholder pays the tax personally. This is typically a good thing for investors as most are taxed at a lower rate than a mutual fund.

What are the distribution payout options?

The default option for unitholders is to have their distributions re-invested into additional units of the fund. Alternatively, unitholders can opt to receive the distributions in cash if they provide instructions accordingly. The tax treatment of both options is identical.

How will I know what distributions I’ve received?

You will receive a T3 slip in early February for each non-registered account you own which will report all of the income and capital gain distributions paid out by the mutual funds you hold.

What are the foreign withholding tax implications from holding Mawer Funds?

Any non-Canadian dividend received by the mutual funds will be subject to foreign withholding tax.  These withholding taxes are within the fund, and are deducted before the unitholders receive any distributions.

Why would the Mawer Balanced Fund have a higher distribution than the Mawer Tax Effective Balanced Fund?

Mutual funds receive a tax credit each year to offset any capital gains realized as a result of unitholder redemptions. The tax credit the mutual funds receives is proportionate to the level of redemptions within the fund (i.e., more redemptions leads to a higher tax credit). If the Mawer Balanced Fund has a higher relative level of redemptions than the Mawer Tax Effective Balanced Fund, this would lead to a higher tax credit for the Balanced Fund. The higher tax credit could offset any realized capital gains in the Fund which may not occur to the same extent in the Tax Effective Balanced Fund. 

When are distributions made?

The following six Mawer Mutual Funds pay an income distribution monthly (on the last business day of the month):

  • Global Balanced Fund
  • Balanced Fund
  • Tax Effective Balanced Fund
  • Global Bond Fund
  • Canadian Bond Fund
  • Canadian Money Market Fund

Please note: This distribution is comprised of any interest and dividends earned by the fund for that particular month. Should the fund not accrue income in excess of the fund’s management expense ratio, it will not trigger a distribution for that month.

With the exception of the Mawer Canadian Money Market Fund, all of the Mawer Mutual Funds pay a year-end distribution. This distribution payout will be comprised of net income and net realized capital gains. In December, the Mawer Canadian Money Market Fund will pay the normal monthly distribution at month-end.

Why have I not received a monthly distribution from a fund that is supposed to pay a monthly distribution?

Mawer funds do not always pay a monthly distribution payment. Income received inside the fund is first applied against the management expense ratio (MER) of the fund and anything left over is distributed to unitholders. This is a common mutual fund structure as it creates tax efficiency. If the income is less than the fund’s MER, unitholders will not receive a distribution.

Are there implications to investing later in the year?

If you are a unitholder of record on the record date, you will receive the full distribution regardless of how many months you have been invested in the fund. This means that if you purchased a fund towards the end of the year, you will be paid out income for the entire year. It may be beneficial to speak with your Investment Counsellor or Advisor if you are considering investing in a fund closer to year-end.

Other

What is the difference between discretionary and non-discretionary?

Discretionary investment management is a form of investment management where trading decisions are made for clients at the portfolio manager's discretion. For non-discretionary investment management, the client initiates trading decisions.

Learn more about the different ways to invest here.

What is Mawer Direct Investing Ltd. and how is it different from Mawer Investment Management Ltd.?

Mawer Direct Investing Ltd. is a non-discretionary service offering. Clients are provided with portfolio recommendations based on their individual situation, however, they are the ultimate decision makers for any changes.

Mawer Investment Management Ltd. offers a discretionary service whereby investment counsellors work with clients to establish specific investment objectives and risk parameters which are incorporated into an Investment Policy Statement (IPS).  Once an IPS is established, our investment counsellors assume responsibility for managing and monitoring the portfolio.

Learn more about the different ways to invest here.

How do the Mawer Mutual Funds differ from ETFs?

The Mawer Mutual Funds are all actively managed, meaning there is a team of investment professionals who research and analyze numerous companies to determine those that they believe are best suited to be held in a particular mandate. They actively evaluate and re-evaluate these companies on an ongoing basis to either add or trim positions as necessary. Exchange Traded Funds are passively managed investments, meaning they generally track or follow an index or basket of securities. The securities in the ETF that are bought/sold are often based on the underlying index or securities it is tracking.

Who owns Mawer?

Mawer is independent and 100% employee owned.

What makes Mawer different from other investment managers?

What we believe distinguishes Mawer from other investment mangers is our consistent adherence to our investment approach; our independence which provides an entrepreneurial mindset and closely aligns our interests with those of our clients; and, our strong culture and well-defined vision, mission, and core set of values that enables us to have an excellent work environment that is passionate, team-based, and client-focused.

How are my assets protected?

Mawer Directing Investing clients have CIPF coverage. CIPF offers limited protection to client assets should the firm become insolvent.

Ultimately, while the assets (e.g. securities and cash) within the Mawer Mutual Funds are held by our custodians (State Street, RBC Investor Services or wherever a client may direct us), they do not belong to the custodian. Nor do they belong to Mawer Investment Management. Rather, they belong to the Funds themselves and, in turn, the unitholders of the funds. Therefore, in the event that Mawer faces financial difficulties or bankruptcy, the assets without our funds are always protected. This segregation of ownership ensures that the unitholders of the Mawer Mutual Funds are the only individuals that have access of claim to the assets within them.


Still have questions? We're here to help.

Phone: +1 (403) 262-4673
Toll-Free: +1 (800) 889-6248
Email: info@mawer.com