# Mawer Tax Effective Balanced Fund - MAW105



## newfoundlander61 (Feb 6, 2011)

From what I understand about this fund it is ideally suited for a non-reg account. Does any of the forum members hold this specific fund in a non-reg account and if so what is reported each year for tax purposes of does this only occur if you sell? I would think that any distributions are reinvested? Thanks for any info. I realize that their is likely a similar ETF that has a cheaper MER similar to this but it is a very good managed company from what I see based on all their funds and management style.

Paul


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## AltaRed (Jun 8, 2009)

Check it out on its own website, and also Morningstar http://quote.morningstar.ca/QuickTakes/fund/f_ca.aspx?t=F0CAN05MRQ&region=CAN&culture=en-CA MAW105 still pays out investment income each year that is taxed, whether or not distributions are re-invested or not. You'd have to compare with MAW104 https://quote.morningstar.ca/quicktakes/Fund/f_ca.aspx?t=0P0000714D&region=CAN&culture=en-CA side by side to see differences.

I'd focus that comparison on return performance and annual investment income. My gut reaction in the past has been negligible differences with MAW105 having slight lower MER, resulting in slightly higher yield.


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## GreatLaker (Mar 23, 2014)

I have MAW105 in a taxable account with distributions reinvested.

You are responsible for reporting both income earned during each year you own it, and capital gains/losses when you sell.

I receive a T3 mailed to me from Mawer annually. It reports all the usual taxable items: Actual eligible dividends, taxable amount of dividends, dividend tax credit, other income, foreign income and foreign tax paid. Just plug and play into your tax software. I assume a T5008 would also be issued for capital gains when I sell, but I have never sold any so I can't confirm. I track my own ACB, but it corresponds to what my broker (TDDI) reports on my statements.

This CRA document explains hw taxation works for mutual funds. The same principles apply to ETFs.
CRA: Tax Treatment of Mutual Funds for Individuals


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## dubmac (Jan 9, 2011)

Alta's Right.
I hold it in a non-reg account. It has been a good fund to provide diversification, and some growth in that account. distributions are reinvested. Like you said it has a low MER, well managed, low volatility. They are 7.7% cash now. They don't "do" gold or oil (much) in the fund. Value-based.


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## AltaRed (Jun 8, 2009)

VBAL, XBAL ZBAL would all be the comparable ETFs but only VBAL has a bit of history. All of these balanced ETFs have slightly different global asset allocation slices, but still focus on a 60/40 split. Only time will tell which might marginally outperform the other.

I hold MAW104 in my TFSA, while my spouse holds VBAL in her RRIF and my ex holds VBAL in her TFSA. I suspect there is no meaningful difference between any of them. Mawer does have a good track record on both MAW104 and MAW105.

Added: Some discount brokers won't sell Mawer funds because they don't pay trailers.


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## Foxx88 (Aug 1, 2019)

I hold Maw105 in a non-registered account and Maw104 in a registered account. I'm fairly new to investing in these funds and I know they're subject to market volatility, though I'm hoping not as big swings as individual equities. The past week has been *interesting.* I haven't had time to compare how these funds fared in comparison to the overall market's reaction to the interest rate decline and trade war, but they did drop. True, this is a long-term investment so I suppose that matters less, but still. Being new to these funds I'll be curious to see just how much "downside protection" they afford.

_Edited for typo._


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