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OK. Now I see. BTW, the Tax Advantage Balanced fund is MAW105. I seem to recall that MAW105 (Tax-advantaged) is invested in the same holdings as Mawer Balanced MAW104. If so, then MAW104 and 105 are composed of the same Mawer funds, and in the same proportions.
MAW104 holds other Mawer funds (7 holdings). MAW105 holds securities directly (229 holdings). They both follow the same benchmark. I believe holding securities directly is one of the reasons it can be more tax effective, because it gives the manager more control over tax loss selling.
 

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OK. Now I see. BTW, the Tax Advantage Balanced fund is MAW105. I seem to recall that MAW105 (Tax-advantaged) is invested in the same holdings as Mawer Balanced MAW104. If so, then MAW104 and 105 are composed of the same Mawer funds, and in the same proportions.


just checked ... Mawer is now calling it the Tax Effective Balanced Fund ... a few years ago when last i looked it was named the Tax Advantage Balanced Fund.

fund may have changed its name but appears to have retained the exact same approach. You can see its holdings in the 31 december/18 financial statements below. Nothing but individual publicly traded stocks plus major bonds pages 32 through 35. No other mutual funds as sub-holdings.

there is a tax-related reason for this, as i've mentioned. To work the Mawer "tax effective" strategy, the managers require actual stocks & bonds, not derivative proxies. You can see all these securities in the linked financial statement below.

i've never been a Mawer client so i remain a bit indifferent to the code numbers they assign to this fund or that fund. I remember their funds stricty by name.

it's a nice-looking fund imho. The tax effective strategy means that the simple annual returns will be low, so some people avoid Mawer Tax Effective for this reason. Investors would buy it strictly for its long-term capital appreciation potential. Myself i would be a bit hesitant about anybody's L-TCAP these days. By that i mean i'd keep Tax Effective if i already owned it, but i wouldn't commit lashings of money as a new investor.


https://www.mawer.com/assets/Financial-Statements/2018-Mutual-Funds-Audited-Financial-Statements-ENG-FINAL.pdf


PS it's remotely possible they re-orged the old Tax Advantage Fund & it still exists as a 3rd fund. But the fund i've been speaking of is the above, stuffed with what have to be bona fide stocks & bonds like a christmas pudding.

PPS best holiday wishes to Black Mac & Co
 

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MAW104 holds other Mawer funds (7 holdings). MAW105 holds securities directly (229 holdings). They both follow the same benchmark. I believe holding securities directly is one of the reasons it can be more tax effective, because it gives the manager more control over tax loss selling.

yes exactly
 

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Thanks HP & Laker.
warm wishes east to you.
I miss the old days with the cyber-cmf-ice-fishing derby. Not sure if you recall - it was a blast!
 

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Not sure how this thread moved from ZMI vs. VBAL to Mawer, but it's a very edifying pivot from my perspective. I hold MAW105 and MAW120. Both serve a specific purpose in my portfolio. Mawer has some tidbits on its website on their balanced funds and the tax overlay strategy.

https://www.mawer.com/faq/

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.
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.

The Mawer tax effective strategy

A tax-effective approach to investing makes sense because it can minimize taxes and provide investors with the ability to compound those savings in future years. At Mawer we use multiple strategies to manage taxable mandates in order to maximize after-tax returns.

Here’s what we do and how we do it: https://www.mawer.com/learn/investor-education/the-mawer-tax-effective-strategy/
 
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