Mawer Tax Effective Balanced Fund

As at March 31, 2019

Morningstar RatingTM: (as at Mar 31, 2019)
Series Start Date: January 8, 1988
Fund Net Asset Value: $1,200.0 million
Total Net Asset Value (Series A): $878.2 million
Net Asset Value Per Unit: $36.58
RRSP Eligibility: Yes
Management Expense Ratio: 0.89% (as at Dec 31, 2018)
Trading Expense Ratio1: 0.03% (as at Dec 31, 2018)
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 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.


Net Performance

1-Yr 3-Yr 5-Yr 10-Yr
Mawer Tax Effective Balanced Fund 6.3 7.1 7.6 10.7
Internal Tax Effective Balanced Benchmark 5.0 7.3 6.3 8.5
Morningstar Rating 4 4 5 5
Number of Funds in Morningstar Category Global Equity Balanced 1683 1105 791 338

Number of Holdings2: 259
Number of Countries2: 30


Top 25 Holdings1 % Weight
Cash & Cash Equivalents 7.7
Mawer Global Small Cap Fund Series O 6.6
Mawer Global Bond Fund Series O 2.2
Government Of Canada 4.0% 01-jun-2041 1.5
Canada Housing Trust No. 1 1.25% 15-jun-2021 1.1
Government Of Canada 1.0% 01-jun-2027 1.1
Province Of Ontario 3.45% 02-jun-2045 1.0
Verisk Analytics Inc 0.9
Aon plc 0.9
Government Of Canada 3.5% 01-dec-2045 0.9
Canada Housing Trust No. 1 2.25% 15-dec-2025 0.9
Marsh & McLennan Companies, Inc. 0.9
Government Of Canada 1.5% 01-jun-2023 0.9
Province Of Quebec 3.5% 01-dec-2045 0.9
Government Of Canada 2.75% 01-jun-2022 0.8
Visa Inc. Class A 0.8
Province Of Ontario 2.6% 02-jun-2027 0.8
Wolters Kluwer NV 0.7
Alphabet Inc. Class C 0.7
Comcast Corporation Class A 0.7
Royal Bank of Canada 0.7
Becton, Dickinson and Company 0.7
Toronto-Dominion Bank 0.6
Brookfield Asset Management Inc. Class A 0.6
Province Of Quebec 3.0% 01-sep-2023 0.6


1 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.

2 Number of Holdings: Fund level exposure; Equity and fixed income holdings excluding cash
Number of Countries: Fund level exposure; Equity and fixed income holdings excluding cash
Asset Mix: Fund level exposure
Equity Sector Weights: Security level exposure


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% Citi 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% Citi 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)

Rationale for Change: Changes were made to underlying asset class benchmarks as noted in above in the Equity Asset Class Tables. 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 a third party—we believe the data to be accurate, however, cannot guarantee its accuracy. Index returns are sourced from FTSE Russell, FactSet and BMO Capital Markets.

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. Since Inception performance has been calculated from the month-end after the initial funding of the mutual fund in order to provide a comparison against a monthly benchmark.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts and the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and 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. Mawer Mutual Funds are managed by Mawer Investment Management Ltd.

The MSCI information may only be used for your internal use, may not be reproduced or disseminated 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)

London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. FTSE® is a trade mark(s) of the relevant LSE Group companies and is/are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.