Mawer Tax Effective Balanced Fund

As at March 28, 2024
Morningstar Rating™
(as at Mar 28, 2024)
Fund Managers:
Steven Visscher, CFA
Series Start Date:
Feb 26, 1988
Fund Net Asset Value:
$1,610.0 million
Total Net Asset Value (Series A):
$1,171.0 million
Net Asset Value Per Unit:
$44.35
RRSP Eligibility:
Yes
Management Expense Ratio * :
0.89% (as at Dec 31, 2023)
Trading Expense Ratio :
0.02% (as at Dec 31, 2023)
Fund Code:
MAW105

Fund Profile

Morningstar Rating™
(as at Mar 28, 2024)
Fund Managers:
Steven Visscher, CFA
Series Start Date:
Feb 26, 1988
Fund Net Asset Value:
$1,610.0 million
Total Net Asset Value (Series A):
$1,171.0 million
Net Asset Value Per Unit:
$44.35
RRSP Eligibility:
Yes
Management Expense Ratio * :
0.89% (as at Dec 31, 2023)
Trading Expense Ratio :
0.02% (as at Dec 31, 2023)
Fund Code:
MAW105

What Does this Fund Invest In?

The fund may invest up to all of its assets in equity and equity-related securities, treasury bills, short-term notes, debentures and bonds from Canadian, U.S. and international issuers or in other funds managed by Mawer. They can be of any size and from any industry.

Investor Suitability

Investors seeking long-term growth at low-medium risk with tax effectiveness.

Investment Strategy

The Manager’s traditional equity approach of systematically buying wealth creating companies at a discount to intrinsic value is used to construct the equity part of the portfolio. The fixed income part of the portfolio follows our traditional fixed income approach of focusing on sector allocation, security selection, and trading strategies. For asset mix, the Manager analyzes which combination of asset classes is most likely to offer the most attractive risk/return characteristics within a medium to long-term time frame, and carries out asset mix changes gradually to reduce risk. The manager minimizes taxes through the application of a tax overlay strategy, with the objective to minimize taxable distributions.

What Does this Fund Invest In?

The fund may invest up to all of its assets in equity and equity-related securities, treasury bills, short-term notes, debentures and bonds from Canadian, U.S. and international issuers or in other funds managed by Mawer. They can be of any size and from any industry.

Investor Suitability

Investors seeking long-term growth at low-medium risk with tax effectiveness.

Investment Strategy

The Manager’s traditional equity approach of systematically buying wealth creating companies at a discount to intrinsic value is used to construct the equity part of the portfolio. The fixed income part of the portfolio follows our traditional fixed income approach of focusing on sector allocation, security selection, and trading strategies. For asset mix, the Manager analyzes which combination of asset classes is most likely to offer the most attractive risk/return characteristics within a medium to long-term time frame, and carries out asset mix changes gradually to reduce risk. The manager minimizes taxes through the application of a tax overlay strategy, with the objective to minimize taxable distributions.

Asset Mix

Type: Canadian Bonds
Percentage: 32.5%
Type: International Equity
Percentage: 17.5%
Type: U.S. Equity
Percentage: 15.7%
Type: Canadian Large Cap Equity
Percentage: 15.2%
Type: Global Small Cap Equity
Percentage: 7.1%
Type: Cash & Cash Equivalents
Percentage: 5.5%
Type: Canadian Small Cap Equity
Percentage: 3.8%
Type: US Mid Cap
Percentage: 1.4%
Type: Emerging Markets
Percentage: 1.3%
  • Canadian Bonds32.5%
  • International Equity17.5%
  • U.S. Equity15.7%
  • Canadian Large Cap Equity15.2%
  • Global Small Cap Equity7.1%
  • Cash & Cash Equivalents5.5%
  • Canadian Small Cap Equity3.8%
  • US Mid Cap1.4%
  • Emerging Markets1.3%

Top Holdings

Top Holdings Weight (%)
Mawer Global Small Cap Fund Series O 7.1
Cash & Cash Equivalents 5.5
Province of Quebec 3.6% September 1, 2033 2.7
Canadian Government Bond 3.25% December 1, 2033 1.7
Province of Ontario 3.65% June 2, 2033 1.7
Canadian Government Bond 2% December 1, 2051 1.5
Canada Housing Trust No 1 2.65% March 15, 2028 1.3
Mawer Emerging Markets Equity Fund Series O 1.3
Canadian Pacific Railway Co 2.54% February 28, 2028 1.0
Amphenol Corp 0.9
JPMorgan Chase & Co 1.9% March 5, 2028 0.9
Bank of Montreal 3.65% April 1, 2027 0.8
Microsoft Corp 0.8
Canadian Natural Resources Ltd 0.8
Aon PLC 0.8
Toronto-Dominion Bank 5.42% July 10, 2026 0.8
Thomson Reuters Corp 2.24% May 14, 2025 0.8
Taiwan Semiconductor Manufacturing Co Ltd 0.7
Royal Bank of Canada 0.7
Visa Inc 0.7
Marsh & McLennan Cos Inc 0.7
Rheinmetall AG 0.7
Province of Ontario 2.8% June 2, 2048 0.7
Hydro One Inc 4.91% January 27, 2028 0.7
Wolters Kluwer NV 0.6

Net Performance

As at June 28, 2024

1 Yr 3 Yr 5 Yr 10 Yr
Mawer Tax Effective Balanced Fund 9.9 2.0 4.8 6.3
Internal Tax Effective Benchmark § 12.1 3.5 6.3 6.2
Morningstar Rating™ - 3 3 3
Number of Funds in Morningstar Category 4 1569 1324 1194
Number of Holdings , ** 323
Number of Countries , ** 33

Equity Sector Weights

Sector: Communication services
  • Portfolio : 3.9
  • Internal Tax Effective Benchmark § : 4.8
Sector: Consumer discretionary
  • Portfolio : 6.6
  • Internal Tax Effective Benchmark § : 8.6
Sector: Consumer staples
  • Portfolio : 7
  • Internal Tax Effective Benchmark § : 5.3
Sector: Energy
  • Portfolio : 4.4
  • Internal Tax Effective Benchmark § : 10.2
Sector: Financials
  • Portfolio : 24.2
  • Internal Tax Effective Benchmark § : 19
Sector: Health care
  • Portfolio : 10.9
  • Internal Tax Effective Benchmark § : 7.4
Sector: Industrials
  • Portfolio : 22.1
  • Internal Tax Effective Benchmark § : 13.4
Sector: Information technology
  • Portfolio : 12.4
  • Internal Tax Effective Benchmark § : 15
Sector: Materials
  • Portfolio : 4.7
  • Internal Tax Effective Benchmark § : 10
Sector: Real estate
  • Portfolio : 1.5
  • Internal Tax Effective Benchmark § : 3.7
Sector: Utilities
  • Portfolio : 2.2
  • Internal Tax Effective Benchmark § : 2.8

Disclaimers

  • * Management expense ration (“MER”) is based on total expenses for the stated period and is expressed as an annualized percentage of daily net assets during the period.
  • The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net assets during the year.
  • Performance has been presented for the A-series mutual funds and has been calculated net of fees. Performance has been expressed in Canadian dollars.
  • § See benchmark history.
  • Fund level exposure
  • Security level exposure
  • ** Equity and Fixed Income holdings, excluding cash
  • Benchmark History

    Mawer  Tax Effective Balanced Benchmark History (changes made prospectively):

    Jan 2011: 5% 91 Day Treasury Bill, 37.5% FTSE TMX Canada Universe Bond, 22.5% S&P/TSX Composite, 17.5% S&P 500, 17.5% MSCI EAFE (net)
    Jan 2012: 5% 91 Day Treasury Bill, 35% FTSE TMX Canada Universe Bond, 15% S&P/TSX Composite, 15% S&P 500, 15% MSCI EAFE (net), 7.5% BMO   Weighted Small Cap (Blended), 7.5% Russell Global Small Cap
    Aug 2013: MSCI EAFE (net) returns is used to calculate the blended benchmark from inception. Previously, MSCI EAFE (gross) was used.
    Oct 2015: 5% 91 Day Treasury Bill, 30% FTSE TMX Canada Universe Bond, 5% FTSE WGBI, 15% S&P/TSX Composite, 7.5% BMO Small Cap (blended), 15% S&P 500, 15% MSCI EAFE (net), 7.5% Russell Global Small Cap
    Oct 2016: 5% 91 Day Treasury Bill, 30% FTSE TMX Canada Universe Bond, 5% FTSE WGBI, 15% S&P/TSX Composite, 7.5% S&P/TSX Small Cap, 15% S&P 500, 15% MSCI ACWI ex-USA (net), 7.5% MSCI ACWI Small Cap (net)
    June 2021: 5% FTSE Canada 91 Day TBill Index, 35% FTSE Canada Universe Bond, 15% S&P/TSX Composite, 7.5% S&P/TSX Small Cap, 15% S&P 500, 15% MSCI ACWI ex-USA (net), 7.5% MSCI ACWI Small Cap (net)

    Rationale for Change: Changes were made to underlying asset class benchmarks. Because the benchmarks for the Mawer Tax Effective Balanced Fund are based on those of the underlying funds, the internal Balanced benchmark changes accordingly.

    Mawer International Equity Benchmark History (changes made prospectively):

    Jan 1988: MSCI EAFE (net)
    Oct 2016: MSCI ACWI ex-USA (net)

    Rationale for Change: MSCI ACWI (net) excluding US Index is a better representation of the mandate in our opinion. For example, the past benchmark does not include Emerging Markets whereas the fund has holdings in these markets consistent with its prospectus and   investment policy statement.

    Mawer New Canada Benchmark History (changes made prospectively):

    Jan 1988: BMO Weighted Small Cap (Blended)
    Oct 2016: S&P/TSX Small Cap

    Rationale for Change: MSCI ACWI (net) Index is a better representation of the mandate in our opinion. Past benchmark does not include Emerging Markets whereas the fund has holdings in these markets consistent with its prospectus and investment policy statement.

    Mawer Global Small Cap Benchmark History (changes made prospectively):

    Oct 2007: Russell Global Small Cap 
    Oct 2016: ACWI Small Cap (net)

    Rationale for Change: MSCI ACWI Small Cap (Net) Index is consistent with using MSCI benchmarks in other asset classes outside of Canada and the United States. In addition, the MSCI ACWI Small Cap (Net) Index follows the Global Investment Classification Standards (GICS) whereas the Russell Global Small Cap Index does not.

    Benchmark returns are rebalanced on a monthly basis.


Mawer Mutual Funds are managed by Mawer Investment Management Ltd. Mawer Mutual Fund returns are reported in Canadian dollars and calculated after management fees and operating expenses have been deducted. In comparison, index returns do not incur management fees or operating expenses.

Index returns are supplied by third parties—we believe the data to be accurate, however, cannot guarantee its accuracy. 

Performance returns for the Mawer Mutual Funds and benchmarks are calculated by Mawer Investment Management Ltd. These returns are historical simple returns for the 3 month, YTD and 1 year periods, and annualized compounded total returns for periods after 1 year.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts and prospectus before investing. The indicated rates of return (other than for a money market fund) are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions. The indicated rates of return for a money market fund is an annualized historical yield based on the seven-day period ended as indicated and annualized in the case of effective yield by compounding the seven-day return and does not represent an actual one-year return. The indicated rates of return do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that a money market fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment will be returned to you. Mawer Mutual Funds are managed by Mawer Investment Management Ltd.

Mawer Mutual Funds do not have trailing commissions. If you purchased units of the Mawer Mutual Funds through a third-party dealer, you may be subject to commissions or additional sales charges. Please contact your dealer for more information.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

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