RISKS ASSOCIATED WITH MAKING AN INVESTMENT
General Risks
Mawer currently engages in several different investment strategies or models that our clients may
choose among to meet their investment objectives, as further outlined below in the sub‐section
“Investment Strategies and Related Material Risks.” For each of these different investment strategies or
models, Mawer manufactures, distributes, and manages a public Canadian mutual fund (the Mawer
Canadian Mutual Funds). For certain models, Mawer also distributes and manages non‐public Canadian
pooled funds (the Mawer Canadian Pooled Funds). Mawer applies one investment process to all of its
investment strategies and models. The risks involved with investing in each of these strategies are
outlined in detail in the respective offering documents for each Mawer Fund, and the material risks for
each type of investment strategy are described below in further detail in the sub‐section “Investment
Strategies and Related Material Risks.”
Please be advised that investing in securities involves risk of loss that clients should be prepared to bear.
Securities laws require us to disclose the risks that should be considered when making an investment
decision. Before making any investment decision, it is important to consider your investment objectives,
your level of risk tolerance, and the risks associated with the investment you are considering. Generally,
there is a strong relationship between the amount of risk associated with a particular investment and its
potential to increase in value in the long‐term. However, investment risks vary depending on the type of
investment. A complete description of the risks associated with an investment in each Mawer Fund that
may be held in your account is set out in that fund’s offering document, and we encourage you to read
those risks carefully prior to an investment in any Mawer Fund. If your account is invested directly in
individual securities, certain other investment risks may apply depending on the types of securities you
own.
The risks associated with investing in a Canadian mutual fund relate to the fund’s underlying
investments. The Mawer Funds own different types of securities depending upon their investment
objectives, such as cash, different classes of equity shares, bonds, or other debt instruments. The value
of these investments will change from day‐to‐day, reflecting changes in interest rates, economic
conditions, and market and company news. As a result, the value of a fund’s units may go up or down,
and the value of your investment in a Mawer Fund when you redeem it may be more or less than when
you initially purchased it.
The full amount of your investment in any Mawer Fund is not guaranteed. Unlike bank accounts or other
insured investment of banking products, Mawer Fund units are not covered by the Canada Deposit
Insurance Corporation or any other government deposit insurer in Canada or the United States.
Under exceptional circumstances, a Mawer Fund may suspend the redemption of units. Your right to
redeem your units may be suspended if we suspend the determination of net asset value for that
particular Mawer Fund.
Specific Material Risks
Everyone has a different tolerance for risk. Some individuals are significantly more conservative than
others when making their investment decisions. It is important to take into account your own comfort
with risk as well as the amount of risk suitable for your financial goals when considering an investment.
The risks associated with investing in a fund relate to the fund’s underlying investments. When you
make your investment decision, we recommend that you consider the different types of investments
made by each fund, their relative return over time, and their volatility. Additionally, please note that tax
laws and regulations applicable to your investment or a particular Mawer Fund or account are subject to
change. We strongly recommend that you consult with your own tax advisors to determine the potential
tax‐related consequences of investing through an account or in a Mawer Fund. Below we describe
certain material risks which apply to the Mawer Funds. Not all risks apply to every Mawer Fund, and
your investment may be subject to risks other than those discussed in this Brochure. For a description of
the specific risks associated with the Mawer Funds, please refer to the discussion below, “Investment
Strategies and Related Material Risks,” as well as the specific information contained in the offering
documents for each Mawer Fund.
Stock market risk – The value of most securities, in particular equity securities, changes with stock
market conditions. These conditions are affected by general economic and market conditions.
Specific issuer risk – The value of all securities will vary positively and negatively with developments
within the specific companies or governments that issue the securities.
Interest rate risk – The value of fixed income securities will generally rise if interest rates fall and fall if
interest rates rise. Changes in interest rates may also affect the value of equity securities.
Liquidity risk – Liquidity risk is the possibility that a mutual fund will not be able to convert its
investments to cash when it needs to. The value of securities that are not regularly traded (less liquid)
will generally be subject to greater fluctuations.
Credit risk – The value of fixed income securities depends, in part, on the perceived ability of the
government or company that issued the securities to pay the interest and to repay the original
investments. Securities issued by issuers that have a low credit rating are considered to have a higher
credit risk than securities issued by issuers that have a high credit rating.
Foreign security risk – The value of foreign securities will be affected by factors affecting other similar
securities and could be affected by additional factors such as the absence of timely information, less
stringent auditing standards, and less liquid markets. As well, different financial, political, and social
factors may involve risks not typically associated with investing in Canada. In general, investments in
more developed markets, such as the US and Western Europe, have lower foreign security risk, while
investments in emerging markets, such as Southeast Asia or Latin America, have higher foreign security
risk.
Currency risk – The value of securities denominated in a currency other than Canadian dollars will be
affected by changes in the value of the Canadian dollar in relation to the value of the currency in which
the security is denominated.
Income trust risk – Income trusts generally hold securities of an underlying active business or are
entitled to receive a royalty on revenues generated by such business. The investment returns of an
income trust are subject to the risks to which the underlying business is subject, such as industry risks,
interest rate fluctuations, commodity prices, or other economic factors. To a degree, income trusts are
structured in part to provide a constant stream of income to investors, and therefore an investment in
an income trust may be subject to interest rate risk.
Derivatives risk – A derivative security is a financial instrument that derives its value from an underlying
security, such as a stock or bond, a currency, or a financial market. It is not a direct investment in the
underlying security itself. The Mawer Funds can invest in derivatives for hedging purposes and for non‐
hedging purposes. “Hedging” means a transaction or a series of transactions designed to offset or
reduce a specific risk associated with specific positions held by the Mawer Funds in certain investments
or groups of investments. Trading in derivatives does entail certain risks:
When a derivative is used for hedging, if a market assumption is wrong, the Fund could forego
gains that it would have attained if it had not entered into the hedging arrangement. In addition,
there is no guarantee that hedging will be effective and that it will eliminate or reduce a loss or
exposure that it was designed to hedge.
When a derivative is used for non‐hedging purposes, it may expose the Fund to volatility and
other risks that affect the underlying market. Any losses that the Mawer Fund may incur as a
result of investing in derivatives may be greater than if the Mawer Fund had invested in the
underlying security itself.
A Fund may be unable to “close out” a position to achieve the intended result if trading in a
derivative is halted, or if the market for it becomes illiquid or is subject to trading limits.
The price of a derivative may not accurately reflect the value of the underlying security.
Many types of derivative contracts involve contracts with third parties. The other party to a
derivative contract may not be able to honour its obligations under the contract. In addition, if
money has been deposited with a derivatives dealer, the dealer may go bankrupt and money
deposited with the dealer will be lost.
The Mawer Funds may only invest in or use derivative instruments for purposes that are consistent with
the investment objectives of the Mawer Funds; provided they do so in accordance with and subject to
the provisions of applicable securities legislation. The Mawer Funds will not begin using derivatives prior
to providing unitholders with at least 60 days’ written notice that they intend to begin using derivatives.
Multi‐series risk – Each of the Mawer Funds offers more than one series of units. If, for any reason, a
Mawer Fund cannot pay the expenses of one series using such series’ proportionate share of the Mawer
Fund’s assets, the Mawer Fund will be required to pay the expenses out of another series’ proportionate
share of the Mawer Fund’s assets. This could lower the investment returns of the other series.
Fund of fund risk – When a Mawer Fund (the top fund) invests some or all of its assets in units of
another Mawer Fund (the underlying fund), the underlying fund may have to sell its investments at
unfavourable prices to meet large redemption requests by the top fund. This can reduce the returns of
the underlying fund. In addition, the top fund’s performance is directly related to the investment
performance of the underlying fund held by it.
Securities lending, repurchase, and reverse repurchase risk – The Mawer Funds may engage in
securities lending transactions, repurchase transactions, and reverse repurchase transactions to try to
earn additional income and enhance their performance. There are risks associated with such
transactions. If the other party to the transaction defaults in its obligations or goes bankrupt, the fund
will be forced to make a claim in order to recover its investment. In the case of a securities lending or
repurchase transaction, a fund could incur a loss if the value of the security loaned by the fund or sold
by the fund has increased by more than the value of cash and security held by the fund. In the case of a
reverse repurchase transaction, the fund would be left with security that may have dropped below the
value the fund paid for the investments and the fund would incur a loss if it disposed of the security.
Canadian securities law provides that a fund may only enter into securities lending, repurchase, or
reverse repurchase transactions if such transactions take place pursuant to a specific program which is
subject to a number of conditions and requirements. The Mawer Funds will not begin engaging in
securities lending, repurchase, or reverse repurchase transactions prior to providing unitholders with at
least 60 days’ written notice that they intend to engage in such transactions.
Large investor risk – Units of the Mawer Funds may be purchased and redeemed by large investors,
such as financial institutions or other mutual funds. These investors may purchase or redeem large
numbers of securities of a Mawer Fund at one time. The purchase or redemption of a substantial
number of securities of a Mawer Fund may require the portfolio manager of the Mawer Fund to change
the composition of the portfolio of the Fund significantly or may force the portfolio manager of the
Mawer Fund to buy or sell investments at unfavourable prices, which can affect performance and may
increase realized capital gains of the Mawer Fund. Where such an investor is our client we will use our
discretion to effect such transactions in a manner that will reduce the impact on the Mawer Fund.
However, there is no assurance that the impact of such a transaction on the Mawer Fund will be
reduced altogether.
Small capitalization risk – Securities of smaller companies are usually traded less frequently and in
smaller volumes than those of large companies. Funds that invest a significant portion of their assets in
small companies are subject to small capitalization risk and may find it more difficult to buy and sell
securities and tend to be more volatile than Funds that focus on larger capitalization companies.
Concentration risk – Concentration risk is the risk associated with investments that are concentrated in
a particular issuer, issuers, sector, or in a single country or region of the world. Concentration of
investments allows a fund to focus on the potential of a particular issuer, sector, or region. However,
concentration also means that the value of the fund tends to be more volatile than the value of a more
diversified fund because the fund’s value is affected more by the performance of that particular issuer,
sector, country, or region.
Loss restriction risk – If a Mawer Fund experiences a “loss restriction event”, (i) the Mawer Fund will be
deemed to have a year‐end for tax purposes (which could result in the Mawer Fund being subject to tax
unless it distributes its income and capital gains prior to such year‐end), and (ii) the Fund will become
subject to the loss restriction rules generally applicable to corporations that experience an acquisition of
control, including a deemed realization of any unrealized capital losses and restrictions on their ability to
carry forward losses. Generally, a Mawer Fund will be subject to a loss restriction event when a person
becomes a “majority‐interest beneficiary” of the Fund, or a group of persons becomes a “majority‐
interest group of beneficiaries” of the Mawer Fund, as those terms are defined in the affiliated persons
rules contained in the
Income Tax Act (Canada), with appropriate modifications. Generally, a majority‐
interest beneficiary of a fund will be a beneficiary who, together with the beneficial interests of persons
and partnerships with whom the beneficiary is affiliated, has a fair market value that is greater than 50%
of the fair market value of all the interests in the income or capital, respectively, in the fund. Generally,
a person is deemed not to become a majority‐interest beneficiary, and a group of persons is deemed not
to become a majority group of beneficiaries, of a fund, if the fund meets certain investment
requirements and qualifies as an “investment fund” under the rules.
Cyber Security Risk – The Mawer Funds and their service providers’ use of internet, technology, and
information systems may expose a fund to potential risks linked to cyber security breaches of those
technological or information systems. Cyber security breaches, amongst other things, could
allow an unauthorized party to gain access to proprietary information, customer data, or fund
assets, or cause the Fund and/or its service providers to suffer data corruption or lose operational
functionality.
Investment Strategies and Related Material Risks
1. Canadian Money Market The investment objective of the Mawer Canadian Money Market Strategy is to earn interest
income by investing primarily in government treasury bills, bonds, and corporate obligations.
Strategies used to achieve this objective include interest rate anticipation, yield analysis, credit
and spread analysis, and taking advantage of supply and demand anomalies.
The strategy invests in government treasury bills and bonds and corporate obligations maturing
in 365 days or less. The strategy will have a dollar‐weighted average term to maturity of no
more than 180 days, and no more than 90 days when calculated on the basis that the term of a
floating rate obligation is the period remaining to the date of the next rate setting. The
proportion invested in each type of security will vary with market conditions.
There are no specific limits on the portion of the strategy’s assets that may be directly invested
in foreign securities or indirectly exposed to foreign securities. However, as of the date of this
Brochure, we do not expect the strategy’s overall exposure to investments in foreign securities
to exceed 33% of the strategy’s assets.
The strategy may engage in securities lending, repurchase, or reverse repurchase transactions as
permitted by applicable Canadian securities legislation from time to time. The strategy may
enter into such transactions to try to earn additional income and to enhance its performance.
In the event that adverse market, economic, political, or other considerations arise, we may as a
temporary defensive tactic, sell securities held by the strategy in the affected market or markets
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets. We may also decline from
acquiring securities in the affected market or markets and hold an increased position in cash,
notes, or short‐term instruments, or acquire securities in markets that we consider more stable.
Material Risks
The major risks in this strategy are specific issuer risk and interest rate risk. The specific issuer
risk is mitigated by the use of credit rating agencies and credit rating restrictions within the
strategy. The interest rate risk is mitigated by limiting the average term of the investments of
the strategy. If the strategy invests in or uses derivative instruments or if the strategy engages in
securities lending, repurchase, or reverse repurchase transactions, that portion of its assets may
also be affected by derivatives risk and securities lending, repurchase and reverse repurchase
risk.
2. Canadian Bond Investment Objectives The investment objective of the Mawer Canadian Bond Strategy is to invest for interest income
and capital returns primarily from bonds and debentures of Canadian government and
corporate issuers. Treasury bills or other short‐term investments may be used from time to
time.
Investment Strategies
The strategy is primarily invested in a diversified portfolio of high‐quality Canadian government
and corporate bonds. The balance of the strategy’s assets will be short‐term fixed income
securities.
The strategy focuses on security, sector, credit and curve analysis in making investment
decisions. Investment considerations may include interest rates, yield spreads, exchange rates,
structures, credit spread and fundamental analysis of sovereign, government, corporate and
structured finance issuers. The strategy may engage in active trading of securities.
There are no specific limits on the portion of the strategy’s assets that may be directly invested
in foreign securities or indirectly exposed to investments in foreign securities. However, as of
the date of this Brochure, we do not expect the strategy’s overall exposure to investments in
foreign securities to exceed 33% of the strategy’s assets.
The strategy may invest in or use derivative instruments for purposes that are consistent with
the investment objectives of the strategy, provided that it does so in accordance with and
subject to the provisions of applicable Canadian securities legislation. The strategy may make
use of “specified derivatives” within the meaning of Canadian securities legislation, for hedging
purposes and for non‐hedging purposes.
The strategy may engage in securities lending, repurchase or reverse repurchase transactions, as
permitted by applicable Canadian securities legislation from time to time. The strategy may
enter into such transactions to try to earn additional income and to enhance its performance.
The strategy may invest a portion of its net assets in units of Mawer Funds where such
investment is compatible with the investment objective and strategies of the strategy. These
investments will be selected on the same basis as other investments of the strategy.
and maintain a portion of the strategy’s assets in the form of cash, notes, or short‐term
instruments, or acquire securities in more stable markets. We may also decline from acquiring
securities in the affected market or markets and hold an increased position in cash, notes, or
short‐term instruments, or acquire securities in markets that we consider more stable.
The major risks for the Mawer Canadian Bond Strategy are interest rate risk and credit risk. To
reduce the interest rate risk, our current operating strategy is to vary duration only within
narrow limits compared to that of the benchmark. Credit risk is reduced by diversification and
by in‐depth credit analysis. If the strategy invests in or uses derivative
Instruments, or if the strategy engages in securities lending, repurchase, or reverse repurchase
transactions, that portion of its assets may also be affected by derivatives risk and securities
lending, repurchase and reverse repurchase risk.
3. Global Bonds The investment objective of the Mawer Global Bond Strategy is to invest for interest income and
the preservation of global purchasing power primarily in fixed income securities from around
the world.
Investment Strategies The strategy intends to achieve its investment objective by investing primarily in a broadly
diversified portfolio of government, government‐related, corporate and structured fixed income
securities denominated in local and foreign currencies.
The strategy focuses on currency, country, issuer, and security risk analysis when making
decisions by following a disciplined investment process. Investment considerations may include,
but are not limited to, absolute and relative currencies, interest rates, yield curves, credit
spreads, structures and fundamental analysis of government, government‐related, corporate
and structured issuers.
Except as described below in relation to certain investments that exceed 10% of the strategy’s
assets, the strategy may invest in fixed income securities of any quality or term, and there are
no specific limits on the portion of the strategy’s assets that may be directly invested in foreign
securities or indirectly exposed to investments in foreign securities. The strategy may engage in
active trading of securities.
The strategy may invest in or use derivative instruments for purposes that are consistent with
the investment objective of the strategy, provided that it does so in accordance with and subject
to the provisions of applicable Canadian securities legislation. The strategy may make use of
“specified derivatives” within the meaning of Canadian securities legislation, for hedging
The strategy may engage in securities lending, repurchase or reverse repurchase transactions, as
and maintain a portion of the strategy’s assets in the form of cash, notes, or short‐term
instruments, or acquire securities in more stable markets. We may also decline from acquiring
securities in the affected market or markets, and hold an increased position in cash, notes
or short‐term instruments, or acquire securities in markets that we consider more stable.
Material Risks The principal risks of the strategy include currency risk, credit risk, interest rate risk,
concentration risk, foreign securities risk, and liquidity risk. If the strategy invests in or uses
derivative instruments or if the strategy engages in securities lending, repurchase, or reverse
repurchase transactions, that portion of its assets may also be affected by derivatives risk and
securities lending, repurchase and reverse repurchase risk.
4. Balanced Investment Objectives The investment objective of the Mawer Balanced Strategy is to achieve above‐average long‐
term returns from income and capital gains. We intend to achieve this objective by investing up
to all of the assets of the strategy in Mawer Funds, as well as by investing directly in equity and
equity‐related securities and fixed‐income securities such as treasury bills, short‐term notes,
debentures, and bonds.
Investment Strategies We will analyze the economy and markets with a view to determine which of the above asset
classes are more likely to offer attractive risk/return characteristics within a medium to long‐
term time frame.
We have determined that radical shifts in asset mix run the risks inherent in market timing. We
believe that incremental shifts in asset mix are more desirable.
We have defined commitment ranges for various asset classes as follows:
Cash 0 – 10%
Bonds 30 – 50%
Equities 45 – 70%
We will not concentrate more than 20% of the strategy’s net assets in a particular industry as
defined by the S&P/TSX Composite Index Industry Classifications or their equivalents in the
United States or internationally.
Our approach is strategic – limiting individual asset mix changes to no more than 5% of the
portfolio at any one time.
The strategy may invest up to all of its assets in other Mawer Funds we manage in order to
achieve the investment objectives and investment strategies of the strategy. The strategies
utilized serve as model portfolios for the asset classes in which they provide participation.
The strategy may invest approximately 49% of its net assets in foreign securities, however, as
the strategy intends to invest certain of its assets in securities of other investment funds that
may themselves invest in foreign securities, the actual exposure of the strategy to investments
in foreign securities may exceed this amount.
The strategy may invest in or use derivative instruments for purposes that are consistent with
the investment objectives of the strategy, provided that it does so in accordance with and
subject to the provisions of applicable Canadian securities legislation. The strategy may make
use of “specified derivatives” within the meaning of Canadian securities legislation, for hedging
purposes and for non‐hedging purposes.
The strategy may engage in securities lending, repurchase or reverse repurchase transactions as
permitted by applicable Canadian securities legislation from time to time. The strategy may
enter into such transactions to try to earn additional income and to enhance its performance.
In the event that adverse market, economic, political, or other considerations arise, we may as a
temporary defensive tactic, sell securities held by the strategy in the affected market or markets
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets. We may also decline from
acquiring securities in the affected market or markets and hold an increased position in cash,
notes, or short‐term instruments, or acquire securities in markets that we consider more stable.
The major risk for the Mawer Balanced Strategy is stock market risk, with some additional risks
including specific issuer risk, foreign security risk, interest rate risk, liquidity risk, and currency
risk. We believe that all such risks can be minimized through appropriate diversification of
currencies, countries, industries, and individual securities. If the strategy invests in or uses
derivative instruments or if the strategy engages in securities lending, repurchase, or reverse
repurchase transactions, that portion of its assets may also be affected by derivatives risk and
securities lending, repurchase, and reverse repurchase risk.
5. Tax Effective Balanced Investment Objectives The investment objective of the Mawer Tax Effective Balanced Strategy is to invest for above‐
average long‐term, tax‐effective rates of return. We intend to achieve this objective by investing
up to all of the assets of the strategy in Mawer Funds as well as by investing directly in equity
and equity‐related securities and, when appropriate, treasury bills, short‐term notes,
debentures and bonds.
Investment Strategies We have defined commitment ranges for various asset classes as follows:
Cash 0 – 10%
Bonds 30 – 50%
Equities 45 – 70%
We will analyze the economy and markets with a view to determine which of the above asset
classes are more likely to offer attractive risk/return characteristics within a medium to long‐
term time frame. We believe that radical shifts in asset mix run the risks inherent in market
timing and that by making incremental shifts in the asset mix of the strategy, we will more likely
achieve high long‐term, after‐tax rates of return.
We will not concentrate more than 20% of its net assets in a particular industry as defined by
the S&P/TSX Composite Index Industry Classifications or their equivalents in the United States or
internationally.
Our approach is strategic – limiting individual asset mix changes to no more than 5% of the
portfolio at any one time.
The strategy may invest up to all of its assets in other Funds we manage in order to achieve the
investment objectives and investment strategies of the strategy. The strategies utilized serve as
model portfolios for the asset classes in which they provide participation.
The strategy may invest approximately 70% of its net assets in foreign securities; however, as
the strategy intends to invest certain of its assets in securities of other investment funds that
may themselves invest in foreign securities, the actual exposure of the strategy to investments
in foreign securities may exceed this amount.
subject to the provisions of applicable
Canadian securities legislation. The strategy may make use of “specified derivatives” within the
meaning of Canadian securities legislation for hedging purposes and for non‐hedging purposes.
enter into such transactions to try to earn additional income and to enhance its performance.
In the event that adverse market, economic, political, or other considerations arise, we may as a
temporary defensive tactic, sell securities held by the strategy in the affected market or markets
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets.
We may also decline from acquiring securities in the affected market or markets and hold an
increased position in cash, notes, or short‐term instruments, or acquire securities in markets
that we consider more stable.
Material Risks The major risk for the Mawer Tax Effective Balanced Strategy is stock market risk, with some
additional risks including specific issuer risk, foreign security risk, interest rate risk, liquidity risk,
and currency risk. We believe that all such risks can be minimized through appropriate
diversification of currencies, countries, industries, and individual securities. If the strategy
invests in or uses derivative instruments or if the strategy engages in securities lending,
repurchase, or reverse repurchase transactions, that portion of its assets may also be affected
by derivatives risk and securities lending,
repurchase, and reverse repurchase risk.
6. Global Balanced The investment objective of the Mawer Global Balanced Strategy is to provide above‐average
risk‐adjusted returns by investing primarily in equity and equity‐related securities and fixed‐
income securities from around the world. The strategy may invest in any part of the capital
structure in both public and private entities.
The strategy intends to achieve above‐average returns with below average risk through a well‐
diversified portfolio. The strategy is constructed with the goal of being resilient to the inherent
uncertainties of markets.
Investments in the strategy are determined on a security by security basis. The strategy is
insensitive to how individual investments in the strategy compare to its benchmark index. We
systematically review macroeconomic and thematic risks and adjust individual weights to
improve the resiliency of the portfolio. There are no specific limits on the portion of the
strategy’s assets that may be exposed to foreign securities.
The amount allocated to any asset class will be determined by the prevailing global
opportunities and risk characteristics, subject to the following policy guidelines:
Fixed Income 30% minimum
Equities 40% minimum
We have determined that radical shifts in asset mix run the risks inherent in market timing and
believe that incremental shifts in asset mix are more desirable.
Within equities the strategy focuses on wealth‐creating companies bought at discounts to their
intrinsic values and employs a long‐term holding period to allow for investor recognition or
corporate growth and to minimize transaction costs.
Within fixed income the strategy focuses on security, sector, credit and curve analysis in making
investment decisions. Investment considerations may include interest rates, yield spreads,
exchange rates, structures, credit spreads, and fundamental analysis of sovereign, government,
corporate and structured finance issuers. The portfolio turnover in fixed income securities may
be high.
use of “specified derivatives” within the meaning of Canadian securities legislation, for hedging
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets. We may also decline from
acquiring securities in the affected market or markets and hold an increased position in cash,
notes, or short‐term instruments, or acquire securities in markets that we consider more stable.
Material Risks Risks for the Mawer Global Balanced Strategy include foreign security risk, currency risk, stock
market risk, credit risk, interest rate risk, small capitalization risk, and specific issuer risk. The
risk of loss may be increased by the limited liquidity of some of the securities in the portfolio
(liquidity risk).
The Mawer Global Balanced Strategy may hedge the currency exposure of the portfolio as we
deem appropriate. However, hedging against a decline in the value of a currency does not
eliminate the risk of declines in prices of the securities in the portfolio.
If the strategy invests in or uses derivative instruments, or if the strategy engages in securities
lending, repurchase, or reverse repurchase transactions, that portion of its assets may also be
affected by derivatives risk and securities lending, repurchase and reverse repurchase risk.
7. Canadian Equity Investment Objectives The objective of the Mawer Canadian Equity Strategy is to invest for above‐average, long‐term,
risk‐adjusted returns by investing primarily in securities of Canadian companies. Treasury bills or
short‐term investments, not exceeding three years to maturity, may also be used from time to
time. This is a larger capitalization strategy.
We employ the following strategies to achieve the strategy’s objectives:
We seek to systematically create a broadly diversified portfolio of wealth‐creating
companies bought at discounts to their intrinsic value.
We seek to employ a long‐term holding period to allow for investor recognition or
corporate growth and to minimize transaction costs.
There are no specific limits on the portion of the strategy’s assets that may be directly invested
in foreign securities or indirectly exposed to investments in foreign securities. However, as of
the date of this Brochure, the strategy is focused on investing in Canadian securities and the
strategy’s exposure to foreign securities, if any, is only through indirect investments. In addition,
as at the date hereof, we do not expect to invest more than 15% of the strategy’s net asset
value in foreign securities in ordinary circumstances.
the investment objectives of the strategy, provided that it does so in accordance with and
subject to the provisions of applicable Canadian securities legislation. The strategy may make
use of “specified derivatives” within the meaning of Canadian securities legislation for hedging
purposes and for non‐hedging purposes.
The strategy may engage in securities lending, repurchase or reverse repurchase transactions as
permitted by applicable Canadian securities legislation from time to time. The strategy may
enter into such transactions to try to earn additional income and to enhance its performance.
The strategy may invest a portion of its net assets in units of Mawer Funds where such
investment is compatible with the investment objective and strategies of the strategy. These
investments will be selected on the same basis as other investments of the strategy.
In the event that adverse market, economic, political, or other considerations arise, we may as a
temporary defensive tactic, sell securities held by the strategy in the affected market or markets
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets.
We may also decline from acquiring securities in the affected market or markets and hold an
increased position in cash, notes, or short‐term instruments, or acquire securities in markets
that we consider more stable.
There can be risks in Canadian equities such as the possibility of reduction in value of any given
stock (stock market risk and specific issuer risk). Liquidity risk may reduce our ability to sell stock
in a timely and efficient manner. There can also be some currency risk as some Canadian stocks
are traded in foreign currency. We believe that all such risks can be minimized through
appropriate diversification of currencies, countries, industries, and individual securities.
Additional risks to this strategy are multi‐series risk and income trust risk. If the strategy invests
in or uses derivative instruments or if the strategy engages in securities lending, repurchase, or
reverse repurchase transactions, that portion of its assets may also be affected by derivatives
risk and securities lending, repurchase, and reverse repurchase risk.
8. Canadian Small Cap Equity The objective of the Mawer Canadian Small Cap Equity Strategy is to invest for above‐average,
long‐term, risk‐ adjusted returns by investing primarily in securities of smaller Canadian
companies. Treasury bills or short‐term investments, not exceeding three years to maturity, may
also be used from time to time. This is a smaller capitalization strategy.
Investment Strategies We employ the following strategies to achieve the strategy’s objectives:
We seek to systematically create a broadly diversified portfolio of wealth‐creating
companies bought at discounts to their intrinsic value.
We seek to employ a long‐term holding period to allow for investor recognition or
corporate growth.
There are no specific limits on the portion of the strategy’s assets that may be directly invested
in foreign securities or indirectly exposed to investments in foreign securities. However, as of
the date of this Brochure, the strategy is focused on investing in Canadian securities and the
strategy’s exposure to foreign securities, if any, is only through indirect investments.
The strategy may invest in or use derivative instruments for purposes that are consistent with
the investment objectives of the strategy, provided that it does so in accordance with and
subject to the provisions of applicable Canadian securities legislation. The strategy may make
use of “specified derivatives” within the meaning of Canadian securities legislation, for hedging
purposes and for non‐hedging purposes.
and maintain a significant portion of the strategy’s assets in the form of cash, notes or short‐
term instruments, or acquire securities in more stable markets.
We may also decline from acquiring securities in the affected market or markets and hold an
increased position in cash, notes, or short‐term instruments, or acquire securities in markets
that we consider more stable.
There can be risks in Canadian equities such as the possibility of reduction in value of any given
stock (stock market risk and specific issuer risk). The risk of loss may be increased by the limited
liquidity of some of the securities in the portfolio (liquidity risk and income trust risk). If the
strategy invests in or uses derivative instruments, or if the strategy engages in securities lending,
repurchase, or reverse repurchase transactions, that portion of its assets may also be affected
by derivatives risk and securities lending, repurchase, and reverse repurchase risk.
9. US Equity
Investment Objectives
The investment objective of the Mawer US Equity Strategy is to provide above‐average, long‐
term, risk‐adjusted returns from both capital gains and dividend income by investing primarily in
equity and equity‐related securities of entities. Treasury bills or short‐term investments may
also be used from time to time.
Investment Strategies We employ the following strategies to achieve the strategy’s objectives:
We strive for above‐average long‐term returns with lower than average levels of risk.
We apply a highly disciplined, research‐driven process and long‐term view to achieve
this objective.
Broad diversification is achieved through investments in a number of separate
companies and different industry sectors. We may not concentrate more than 20% of
the net assets of the strategy (at market value at the time of the transaction) in a
particular industry as defined by the S&P Global Industry Classification Standards
Industries categories.
We intend to add value through prudent security selection, diversification, and
emphasis upon relative security valuations.
There are no specific limits on the portion of the strategy’s assets that may be directly invested
in foreign securities or indirectly exposed to investments in foreign securities.
use of “specified derivatives” within the meaning of Canadian securities legislation for hedging
The strategy may engage in securities lending, repurchase or reverse repurchase transactions as
permitted by applicable Canadian securities legislation from time to time. The strategy may
enter into such transactions to try to earn additional income and to enhance its performance.
The strategy may invest a portion of its net assets in units of Mawer Funds where such
investment is compatible with the investment objective and strategies of the strategy. These
investments will be selected on the same basis as other investments of the strategy.
In the event that adverse market, economic, political, or other considerations arise, we may as a
temporary defensive tactic, sell securities held by the strategy in the affected market or markets
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets.
We may also decline from acquiring securities in the affected market or markets and hold an
increased position in cash, notes, or short‐term instruments, or acquire securities in markets
that we consider more stable.
Material Risks The major risk for the Mawer US Equity Strategy is foreign security risk, with some additional
risks including stock market risk, specific issuer risk, liquidity risk, and currency risk.
The strategy may hedge the currency exposure of the portfolio as we deem appropriate.
However, hedging against a decline in the value of a currency does not eliminate the risk of
declines in prices of the securities in the portfolio.
We believe that all such risks can be minimized through appropriate diversification of industries
and individual securities. If the strategy invests in or uses derivative instruments, or if the
strategy engages in securities lending, repurchase, or reverse repurchase transactions, that
portion of its assets may also be affected by derivatives risk and securities lending, repurchase,
and reverse repurchase risk.
10. International Equity
The objectives of this strategy are to achieve above‐average, long‐term, risk‐adjusted returns
and to provide diversification of risk by investing primarily in entities outside of Canada and the
United States. The strategy will be invested primarily in equities and equity‐related securities.
The amount invested in any one country will vary depending upon the economic, investment,
market outlook, and opportunities in each area. Treasury bills or short‐term investments, not
exceeding three years to maturity may also be used from time to time.
Investment Strategies We believe that non‐North American equities (i.e., equity securities of non‐Canadian and non‐
US . issuers) can provide an opportunity to invest in many of the world’s top companies that
may be trading at significant discounts to their North American counterparts, and whose value
has not yet been fully recognized by investors. In addition, such a portfolio can participate in
industries that exist outside North America, or industries that are growing faster than their
North American counterparts, as well as opportunities arising from economic or political
restructuring. It is intended that the strategy will diversify through equity and debt securities,
currencies, industries, and countries to increase the safety of the principal, and to increase the
growth and liquidity of the investments and units in the strategy.
The Mawer International Equity Strategy is managed with the primary focus of selecting good
companies exhibiting attractive valuation and investment characteristics. Risk management is
enhanced by the broadly diversified nature of the portfolio. Therefore, the asset allocation mix
is determined by relative valuations and by the need for adequate diversification. This is known
as a bottom‐up approach and is distinguished from funds that concentrate on regional or
country selection basis. The focus is on relative price and growth expectations and finding good
balance sheet strength and growing earnings.
As the amount invested in any one country will vary depending upon the economic, investment,
and market opportunities in any one area, we will manage the strategy based on what we
believe to be prudent management practices rather than by investing specific percentages of
the assets of the strategy in particular countries. There are no specific limits on the portion of
the strategy’s assets that may be directly invested in foreign securities or indirectly exposed to
investments in foreign securities.
use of “specified derivatives” within the meaning of Canadian securities legislation, for hedging
In the event that adverse market, economic, political, or other considerations arise, we may as a
temporary defensive tactic, sell securities held by the strategy in the affected market or markets
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets. We may also decline from
acquiring securities in the affected market or markets, and hold an increased position in cash,
notes, or short‐term instruments, or acquire securities in markets that we consider more stable.
Material Risks The major risk for the Mawer International Equity Strategy is foreign security risk, with some
additional risks including stock market risk, specific issuer risk, liquidity risk and currency risk.
The strategy may hedge the currency exposure of the portfolio as we deem appropriate.
However, hedging against a decline in the value of a currency does not eliminate the risk of
declines in prices of the securities in the portfolio.
We believe that all such risks can be minimized through appropriate diversification of
currencies, countries, industries, and individual securities.
If the strategy invests in or uses derivative instruments, or if the strategy engages in securities
lending, repurchase, or reverse repurchase transactions, that portion of its assets may also be
affected by derivatives risk and securities lending, repurchase, and reverse repurchase risk.
11. Global Small Cap Equity
Investment Objectives
The objective of the Mawer Global Small Cap Equity Strategy is to provide above‐average, long‐
term, risk‐adjusted returns by investing primarily in securities of smaller companies around the
world. The strategy will be primarily invested in equities and equity‐related securities. The
amount invested in any one country will vary depending upon the economic, investment, and
market outlook and opportunities in each area. Treasury bills or short‐term investments not
exceeding three years to maturity may also be used from time to time.
We employ the following strategies to achieve the strategy’s objective:
We seek to systematically create a broadly diversified portfolio of wealth‐creating
companies bought at discounts to their intrinsic value.
We seek to employ a long‐term holding period to allow for investor recognition or
corporate growth.
There are no specific limits on the portion of the strategy’s assets that may be directly invested
in foreign securities or indirectly exposed to investments in foreign securities.
The strategy may invest in or use derivative instruments for purposes that are consistent with
the investment objectives of the strategy, provided that it does so in accordance with and
subject to the provisions of applicable Canadian securities legislation. The strategy may make
use of “specified derivatives” within the meaning of Canadian securities legislation for hedging
purposes and for non‐hedging purposes.
The strategy may engage in securities lending, repurchase or reverse repurchase transactions as
permitted by applicable Canadian securities legislation from time to time. The strategy may
enter into such transactions to try to earn additional income and to enhance its performance.
The strategy may invest a portion of its net assets in units of Mawer Funds where such
investment is compatible with the investment objective and strategies of the strategy. These
investments will be selected on the same basis as other investments of the strategy.
In the event that adverse market, economic, political, or other considerations arise, we may as a
temporary defensive tactic, sell securities held by the strategy in the affected market or markets
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets. We may also decline from
acquiring securities in the affected market or markets and hold an increased position in cash,
notes, or short‐term instruments, or acquire securities in markets that we consider more stable.
Risks for the Mawer Global Small Cap Strategy include foreign security risk, currency risk, stock
market risk and specific issuer risk. The risk of loss may be increased by the limited liquidity of
some of the securities in the portfolio (liquidity risk).
The strategy may hedge the currency exposure of the portfolio as we deem appropriate.
However, hedging against a decline in the value of a currency does not eliminate the risk of
declines in prices of the securities in the portfolio.
If the strategy invests in or uses derivative instruments, or if the strategy engages in securities
lending, repurchase or reverse repurchase transactions, that portion of its assets may also be
affected by derivatives risk and securities lending, repurchase and reverse repurchase risk.
12. Global Equity Investment Objectives The objective of the Mawer Global Equity Strategy is to invest for above‐average, long‐term,
risk‐adjusted returns in securities of companies around the world. We will allocate capital to the
best global opportunities, which may include both large and small capitalization companies. The
amount invested in any one country will vary depending upon the economic, investment and
market opportunities in each area. The strategy will be primarily invested in equity and equity‐
related securities. This is an all‐capitalization global equity fund. Treasury bills or short‐term
investments, not exceeding three years to maturity may also be used from time to time.
Investment Strategies We employ the following strategies to achieve the strategy’s objective:
We seek to systematically create a broadly diversified portfolio of wealth‐creating
companies bought at discounts to their intrinsic values.
We seek to employ a long‐term holding period to allow for investor recognition or
corporate growth and to minimize transaction costs.
There are no specific limits on the portion of the strategy’s assets that may be directly invested
in foreign securities or indirectly exposed to investments in foreign securities.
use of “specified derivatives” within the meaning of Canadian securities legislation for hedging
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets. We may also decline from
acquiring securities in the affected market or markets and hold an increased position in cash,
notes, or short‐term instruments, or acquire securities in markets that we consider more stable.
Material Risks Risks for the Mawer Global Equity Strategy include foreign security risk, currency risk, stock
market risk and specific issuer risk. The risk of loss may be increased by the limited liquidity of
some of the securities in the portfolio (liquidity risk).
The strategy may hedge the currency exposure of the portfolio as we deem appropriate.
However, hedging against a decline in the value of a currency does not eliminate the risk of
declines in prices of the securities in the portfolio.
If the strategy invests in or uses derivative instruments or if the strategy engages in securities
lending, repurchase, or reverse repurchase transactions, that portion of its assets may also be
affected by derivatives risk and securities lending, repurchase and reverse repurchase risk.
13. Emerging Markets Equity Strategy Investment Objectives The objective of the Mawer Emerging Markets Equity Strategy is to achieve above‐average,
long‐term, risk‐adjusted returns in by investing primarily in equity and equity related securities
of companies located or active in emerging market countries. Treasury bills or short‐term
investments not exceeding three years to maturity may also be used from time to time.
We employ the following strategies to achieve the strategy’s objective:
We seek to systematically create a broadly diversified portfolio of wealth‐creating
companies bought at discounts to their intrinsic values.
We seek to employ a long‐term holding period to allow for investor recognition or
corporate growth and to minimize transaction costs.
There are no specific limits on the portion of the strategy’s assets that may be directly invested
in foreign securities or indirectly exposed to investments in foreign securities. The amount
invested in any one country will vary depending upon the economic, investment, market
outlook, and opportunities in each geographic area.
the investment objectives of the strategy, provided that it does so in accordance with and
subject to the provisions of applicable Canadian securities legislation. The strategy may make
use of “specified derivatives” within the meaning of Canadian securities legislation for hedging
purposes and for non‐hedging purposes.
The strategy may engage in securities lending, repurchase or reverse repurchase transactions as
permitted by applicable Canadian securities legislation from time to time. The strategy may
enter into such transactions to try to earn additional income and to enhance its performance.
The strategy may invest a portion of its net assets in units of Mawer Funds where such
investment is compatible with the investment objective and strategies of the strategy.
In the event that adverse market, economic, political, or other considerations arise, we may as a
temporary defensive tactic, sell securities held by the strategy in the affected market or markets
and maintain a significant portion of the strategy’s assets in the form of cash, notes, or short‐
term instruments, or acquire securities in more stable markets. We may also decline from
acquiring securities in the affected market or markets, and hold an increased position in cash,
notes, or short‐term instruments, or acquire securities in markets that we consider more stable.
Material Risks Risks for the Mawer Global Equity Strategy include foreign security risk, currency risk, stock
market risk and specific issuer risk. The risk of loss may be increased by the limited liquidity of
some of the securities in the portfolio (liquidity risk).
The strategy may hedge the currency exposure of the portfolio as we deem appropriate.
However, hedging against a decline in the value of a currency does not eliminate the risk of
declines in prices of the securities in the portfolio.
If the strategy invests in, or uses derivative instruments, or if the strategy engages in securities
lending, repurchase, or reverse repurchase transactions, that portion of its assets may also be
affected by derivatives risk and securities lending, repurchase and reverse repurchase risk.
Using Borrowed Money to Make an Investment
Securities may be purchased using available cash or a combination of available cash and borrowed
money. If available cash is used to pay for the securities in full, the percentage gain or loss will equal the
percentage increase or decrease in the value of the securities purchased. Using borrowed money to
purchase securities can magnify the gain or loss on the cash invested. This effect is called leveraging.
If you are considering borrowing money to make investments or considering providing us with borrowed
money to make investments on your behalf, you should be aware that a leveraged purchase involves
greater risk than a purchase using available cash resources only. The extent to which a leveraged
purchase involves undue risk is a decision that needs to be made by you, and will vary depending on
your personal circumstances, your risk and return objectives, and the securities or other investments
purchased. The use of leverage may not be suitable for all investors.
It is also important that you are aware of the terms of any loan that is secured by securities or other
investments. Under the terms of any loan that is secured by investments or other securities, the lender
may require that the amount outstanding on the loan does not rise above an agreed percentage of the
market value of the securities or other investments. Should this occur, you will be required to pay down
the loan, or sell the investments so as to return the loan to the agreed percentage relationship. Money
is also required to pay interest on the loan. Under these circumstances, investors who leverage their
investments are advised to have adequate financial resources available both to pay interest and also to
reduce the loan if borrowing arrangements require such a payment. In addition, if you borrow money to
purchase securities, their responsibility to repay the loan and pay interest as required by its terms
remains the same even if the value of the securities purchased declines.
please register to get more info