Investing

Mawer Emerging Market fund?

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  • May 9th, 2017 11:51 pm
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Newbie
Feb 10, 2017
98 posts
85 upvotes
alexcalvado wrote: I don't know any other active funds in Canada from a reputable company with a long track record with a relatively low MER without any load.
You could invest millions of dollars in MAW104 and MAW105 and sleep well at night.
I don't own any because that excess 0,7-0,75% in fee matters to me a lot because it is more than 8K a year for my portfolio !
So yes you can alternatively invest in only index funds.
When the markets will drop, everything will drop : ccp index or Mawer balanced.
But everything will rise again.
So in the end, it doesn't really matter.
What you said makes no sense. On the one hand you said you have trust in Mawer, but on the other hand you invest in ETFs because when markets drop, everything drops. This is not true because if you believed in active management you would believe in downside protection. Losing 50% requires a 100% gain to break even, not gaining back another 50%. If markets fell 50%, index funds will feel this at 100%. If markets fell by 50 but Mawer fell 25%, Mawer would only require 33% gain compared to 100 of index to break even.

Point being if you have trust in any investment manager, their ability to limit losses can substantially outweigh the fees paid.
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Oct 1, 2004
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I would think the Mawer balance funds should include this soon, majority of my portfolio is MAW105, not sure if I should buy this.
Deal Fanatic
Oct 1, 2004
6651 posts
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GTA
1LoveToronto wrote: What you said makes no sense. On the one hand you said you have trust in Mawer, but on the other hand you invest in ETFs because when markets drop, everything drops. This is not true because if you believed in active management you would believe in downside protection. Losing 50% requires a 100% gain to break even, not gaining back another 50%. If markets fell 50%, index funds will feel this at 100%. If markets fell by 50 but Mawer fell 25%, Mawer would only require 33% gain compared to 100 of index to break even.

Point being if you have trust in any investment manager, their ability to limit losses can substantially outweigh the fees paid.
well said, exactly why I invest in MAW104/105 vs e-series or other couch potato models.
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Feb 1, 2012
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greg123 wrote: I would think the Mawer balance funds should include this soon, majority of my portfolio is MAW105, not sure if I should buy this.
Mawer Global Balanced Fund's benchmark was revised in Oct 2016 to include Emerging Markets. The previous global benchmark was MSCI World which excludes emerging markets. The current global benchmark is MSCI ACWI, which includes emerging markets.

Mawer Balanced and Tax-Effective Balanced are Canadian focused balanced funds. It will be interesting to see if emerging markets is added to it, but I don't think it is inevitable.
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1LoveToronto wrote: What you said makes no sense. On the one hand you said you have trust in Mawer, but on the other hand you invest in ETFs because when markets drop, everything drops. This is not true because if you believed in active management you would believe in downside protection. Losing 50% requires a 100% gain to break even, not gaining back another 50%. If markets fell 50%, index funds will feel this at 100%. If markets fell by 50 but Mawer fell 25%, Mawer would only require 33% gain compared to 100 of index to break even.

Point being if you have trust in any investment manager, their ability to limit losses can substantially outweigh the fees paid.
Do you have documentation that proves that active management can limit losses in down markets?

In 2008 Mawer Balanced lost 16.1%, trailing its own benchmark by 2%. According to Stingy Investor Asset Mixer, in C$, a balanced portfolio of 5% 3-month Canadian T-bills, 35% Canadian Aggregate Bonds, 22.5% TSX Composite, 15% S&P500 and 22.5% MSCI EAFE (similar to Mawer 104's benchmark) would have lost 15.2%.

I own some MAW105, but would never put a large portion of my retirement assets into one actively managed mutual fund, no matter how good its recent performance has been.
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Feb 10, 2017
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Deepwater wrote: Do you have documentation that proves that active management can limit losses in down markets?

In 2008 Mawer Balanced lost 16.1%, trailing its own benchmark by 2%. According to Stingy Investor Asset Mixer, in C$, a balanced portfolio of 5% 3-month Canadian T-bills, 35% Canadian Aggregate Bonds, 22.5% TSX Composite, 15% S&P500 and 22.5% MSCI EAFE (similar to Mawer 104's benchmark) would have lost 15.2%.

I own some MAW105, but would never put a large portion of my retirement assets into one actively managed mutual fund, no matter how good its recent performance has been.
I'm not arguing for Mawer. My point is you either believe in efficient markets and go passive or you don't and go active, and if you do have faith in active, it is not limited to solely being able to beat on the upside, outperformance also comes from downside protection. To have faith and call something you can own while sleeping safety is indicative of believing in index outperformance, otherwise passive is what you invest in and safely sleep at night.
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1LoveToronto wrote: I'm not arguing for Mawer. My point is you either believe in efficient markets and go passive or you don't and go active, and if you do have faith in active, it is not limited to solely being able to beat on the upside, outperformance also comes from downside protection. To have faith and call something you can own while sleeping safety is indicative of believing in index outperformance, otherwise passive is what you invest in and safely sleep at night.
I may have misinterpreted the intent of your post.

But I do think it is a myth that active management can anticipate and sidestep drawdowns in bear markets consistently over the long term. And a lot of the documentation that says they can is partisan, produced by companies with a vested interest in active management. Independent analysis often draws the opposite conclusion.
http://www.evidenceinvestor.co.uk/havin ... rotection/
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Feb 5, 2017
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I don't see any problems in having both a passive and active investing strategy at the same time if your portfolio is large enough for that.
Some index ETFs plus some well chosen stocks for example.
Even if MAW104-105 are well managed, they have and will most of the time under perform the markets in good and bad times.
But it's not a reason to not invest in them if you wish (I do not) since you do not have anything else to do.
Jr. Member
Jul 23, 2007
187 posts
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York
Does anyone know exactly around how much does Maw104 and Maw105 pay every month?
I googled Maw104, on Mawer's website it says on Dec 2016 paid $0.2829 dividend, on Jan 2017 paid $0.0027.
I thought MAW104 pays monthly distribution?

Thanks in advance.
guilly wrote: Same here, really hoping for a rebound year. Based on their track record I would say it'll be a better year. I'm thinking of diversifying a little more this year. Last year I held MAW130 and MAW150 luckily I started investing only in the second quarter which allowed me to come out ahead since the first quarter returns were negative :)... I'm thinking of doing a MAW104(25%), MAW130(25%) and MAW150(50%) to try and get a little broader....
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didi love wrote: Does anyone know exactly around how much does Maw104 and Maw105 pay every month?
I googled Maw104, on Mawer's website it says on Dec 2016 paid $0.2829 dividend, on Jan 2017 paid $0.0027.
I thought MAW104 pays monthly distribution?
Did you see this: http://www.mawer.com/our-funds/distributions/

If the fund holdings don't pay any dividends or interest in a month then the fund will not pay a distribution. These are not income funds so they are not geared to pay every month.

Edit: One more thing, many Mawer funds will have a December distribution that is larger than all the other months. The January distribution is more indicative of distributions paid Jan-Nov. Here is Mawer's explanation:
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 comprise of net income and net realized capital gains
Last edited by Deepwater on Apr 16th, 2017 5:01 pm, edited 1 time in total.
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didi love wrote: Does anyone know exactly around how much does Maw104 and Maw105 pay every month?
I googled Maw104, on Mawer's website it says on Dec 2016 paid $0.2829 dividend, on Jan 2017 paid $0.0027.
I thought MAW104 pays monthly distribution?

Thanks in advance.
I can give you a real world example of Mawer105

On March 31/17 I held 606.747 shares of M-105, days price was 33.2460, value of $20171.91

I received a DRIP of .513 shares, a dollar value of $17.05

The G/M lists the income dividend for Mar. 31/17 as 0.0281 --> 606.747 shares x .0281 = $17.05
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Oct 29, 2010
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If you're looking for monthly income, the Mawer balanced funds are not what you're looking for.
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Jul 23, 2007
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York
Thanks for the information.
Isn't it advantages to buy the MAW104 in December before it pays out the larger distribution, then sell it, rather than holding this fund for an entire year without any monthly payout, besides the purchase price maybe higher right before the payout, and the sales commission fee charged by the brokerage?


quote=Deepwater post_id=27687613 time=1492376466 user_id=518705]
Did you see this: http://www.mawer.com/our-funds/distributions/

If the fund holdings don't pay any dividends or interest in a month then the fund will not pay a distribution. These are not income funds so they are not geared to pay every month.

Edit: One more thing, many Mawer funds will have a December distribution that is larger than all the other months. The January distribution is more indicative of distributions paid Jan-Nov. Here is Mawer's explanation:
[/quote]
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didi love wrote: Thanks for the information.
Isn't it advantages to buy the MAW104 in December before it pays out the larger distribution, then sell it, rather than holding this fund for an entire year without any monthly payout, besides the purchase price maybe higher right before the payout, and the sales commission fee charged by the brokerage?
...plug the date Dec 20/16 into this calendar and you'll see the per unit/share price effect of that year end income/capital gain payment

So every month, dividends and capital gains that are awaiting distributions are part of a funds daily NAV, hence the price drop on 'Pay Day'
Member
Mar 7, 2007
221 posts
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Does anyone use scotia Itrade? I know that there's a minimum initial trade of $5000 but is there a minimum for subsequent trades? I'm thinking of transferring my RRSP to maw104 and hoping to set up regular biweekly contributions? Is that doable?

Thanks in advance for your help
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metrognome wrote: Does anyone use scotia Itrade? I know that there's a minimum initial trade of $5000 but is there a minimum for subsequent trades? I'm thinking of transferring my RRSP to maw104 and hoping to set up regular biweekly contributions? Is that doable?

Thanks in advance for your help
...this doesn't answer your question about Scotia, but TDDI has an $5k initial and then a $1k subsequent purchase minimum (in a CASH account anyways, it may differ inside an RRSP??).

It goes against what they list on the GlobeMail site as having $5k initial and then $0 subsequent.
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hebsie wrote: ...this doesn't answer your question about Scotia, but TDDI has an $5k initial and then a $1k subsequent purchase minimum (in a CASH account anyways, it may differ inside an RRSP??).

It goes against what they list on the GlobeMail site as having $5k initial and then $0 subsequent.
Scotia iTrade has a $100 minimum subsequent purchase.
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Nov 26, 2015
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hebsie wrote: ...this doesn't answer your question about Scotia, but TDDI has an $5k initial and then a $1k subsequent purchase minimum (in a CASH account anyways, it may differ inside an RRSP??).

It goes against what they list on the GlobeMail site as having $5k initial and then $0 subsequent.
Mawer doesn't have a minimum for investments after the first one but TDDI does (1000CAD) even in registered accounts. I got a TFSA with them.

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