Balanced

As at September 30, 2022

Strategy Profile

Managers:
Greg Peterson, CFA
Steven Visscher, CFA
Benchmark :
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), 5% 91 Day Treasury Bill, 35% FTSE TMX Canada Universe Bond
Assets Under Management:
Mawer Investment Management Ltd: $77,135 M
Strategy * : $14,124 M
Inception Date:
March 31, 1988
  • * Based on all accounts following the strategy

For more information, please contact us.

Investment Philosophy

The Manager’s traditional equity approach of seeking to find wealth-creating companies, led by great management teams, purchased at a discount to intrinsic value is used to construct the equity portion of the portfolio. The fixed income portion 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.

What Does the Strategy Invest In?

The strategy invests in Canadian, U.S., and International equity securities, as well as bonds and other strategies managed by Mawer that invest in debentures of government and corporate issues or in those securities directly.

Strategy Profile

Managers:
Greg Peterson, CFA
Steven Visscher, CFA
Benchmark :
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), 5% 91 Day Treasury Bill, 35% FTSE TMX Canada Universe Bond
Assets Under Management:
Mawer Investment Management Ltd: $77,135 M
Strategy * : $14,124 M
Inception Date:
March 31, 1988
  • * Based on all accounts following the strategy

For more information, please contact us.

Investment Philosophy

The Manager’s traditional equity approach of seeking to find wealth-creating companies, led by great management teams, purchased at a discount to intrinsic value is used to construct the equity portion of the portfolio. The fixed income portion 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.

What Does the Strategy Invest In?

The strategy invests in Canadian, U.S., and International equity securities, as well as bonds and other strategies managed by Mawer that invest in debentures of government and corporate issues or in those securities directly.

Asset Mix Allocation

Asset Mix Range (%) Benchmark (%) Portfolio * (%)
Equity 45 - 70 60.0 58.3
Canadian 10 - 45 22.5 19.1
Global 20 - 70 37.5 39.3
Canadian Bonds 25 - 50 35.0 33.4
Cash & Cash Equivalents 0 - 15 5.0 8.2
  • * Security Level Exposure. See GIPS report(s) and full disclaimers.

Equity Characteristics

Sector Weights

Sector: Communication services
  • Portfolio: 5.5
  • : 5.4
Sector: Consumer discretionary
  • Portfolio: 6.1
  • : 9.1
Sector: Consumer staples
  • Portfolio: 7.7
  • : 6.3
Sector: Energy
  • Portfolio: 4.3
  • : 10
Sector: Financials
  • Portfolio: 21.2
  • : 18.4
Sector: Health care
  • Portfolio: 9.2
  • : 8.3
Sector: Industrials
  • Portfolio: 19.8
  • : 11.7
Sector: Information technology
  • Portfolio: 16.7
  • : 13
Sector: Materials
  • Portfolio: 5.7
  • : 10.4
Sector: Real estate
  • Portfolio: 2
  • : 4.1
Sector: Utilities
  • Portfolio: 1.7
  • : 3.3

Regional Weights

Region: Asia Pacific ex. Japan
  • Portfolio: 5.4
  • : 9.5
Region: Canada
  • Portfolio: 32.7
  • : 39.7
Region: Europe ex. U.K.
  • Portfolio: 16.5
  • : 8.9
Region: Japan
  • Portfolio: 3.1
  • : 4.8
Region: Latin America
  • Portfolio: 0.5
  • : 0.8
Region: Middle East/Africa
  • Portfolio: 0.5
  • : 1.3
Region: United Kingdom
  • Portfolio: 6.9
  • : 3
Region: United States
  • Portfolio: 34.5
  • : 32
Region: Emerging Markets
  • Portfolio: 6.1
  • : 8.9

Top 10 Equity Holdings

Portfolio Weight
Aon Plc 1.6
RBC 1.4
Marsh & McLennan 1.4
Microsoft 1.4
Canadian Natural 1.3
Wolters Kluwer 1.3
Toronto-Dominion Bank 1.3
Amphenol 1.2
Alphabet 1.2
Canadian Pacific Railway 1.1
Total 13.2

Market Capitalization

Billions Portfolio Weight
Less than $1 3.4
$1 to $3 9.1
$3 to $10 17.1
$10 to $50 25.2
$50 to $100 20.3
$100+ 24.9
Total 100.0

Portfolio Characteristics

Portfolio Benchmark*
ROE (%) 21.6 17.1
Forward P/E 14.7 12.7
Dividend Yield (%) 2.2 2.7

*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). Information is based on the equity portion of the Mawer Balanced representative account and is supplemental information to the True Balanced Composite GIPS report and is presented on a security level basis.

Bond Characteristics

Contribution to Duration

By Sector

Sector: Corporate
  • Portfolio: 2.2
  • : 1.5
Sector: Municipal
  • Portfolio: 0
  • : 0.2
Sector: Provinical
  • Portfolio: 3.5
  • : 3.4
Sector: Federal
  • Portfolio: 1.8
  • : 2.3

By Credit Rating

Rating: AAA
  • Portfolio: 1.8
  • : 2.4
Rating: AA
  • Portfolio: 3.4
  • : 3.3
Rating: A
  • Portfolio: 1.7
  • : 1.1
Rating: BBB
  • Portfolio: 0.6
  • : 0.7

By Curve Positioning

Term: 2 Year
  • Portfolio: 0.9
  • : 0.6
Term: 5 Year
  • Portfolio: 1
  • : 0.9
Term: 7 Year
  • Portfolio: 0.2
  • : 0.7
Term: 10 Year
  • Portfolio: 0.9
  • : 1.1
Term: 15 Year
  • Portfolio: 0.3
  • : 0.4
Term: 20 Year
  • Portfolio: 1.9
  • : 1.3
Term: 30 Year
  • Portfolio: 1.6
  • : 2.4

Top 10 Holdings

Top 10 Holdings Weight (%)
Canada Housing Trust No 1 1.95% Dec 15, 2025 12.6
Province of Ontario 4.65% Jun 02, 2041 4.4
Province of Quebec 3.1% Dec 01, 2051 3.6
Bank of Nova Scotia 2.95% Mar 08, 2027 3.6
Government of Canada Dec 01, 2045 3.4
Canadian Pacific Railway Co 2.54% Feb 28, 2028 3.1
Toronto-Dominion Bank 2.667% Sep 09, 2025 2.8
Province of Quebec 1.5% Sep 01, 2031 2.7
Thomson Reuters Corp 2.239% May 14, 2025 2.6
Royal Bank of Canada 3.369% Sep 29, 2025 2.5
Total 41.3

Characteristics

Portfolio Benchmark**
Yield To Maturity (%) 4.4 4.1
Effective Maturity (Years) 10.2 10.4
Modified Duration (Years) 7.5 7.5

**5% 91 Day Treasury Bill, 35% FTSE TMX Canada Universe Bond

Source: FactSet and Mawer Investment Management Ltd. Information is based on the bond portion of the Mawer Balanced representative account and is supplemental information to the True Balanced Composite GIPS report and is presented on a security level basis. See GIPS report(s) and full disclaimers including credit rating methodology below.

Annualized Performance

Period: YTD
  • True Balanced Composite (Net): -16.1
  • True Balanced Composite (Gross): -15.7
  • Benchmark *: -14
Period: 1 Yr
  • True Balanced Composite (Net): -12.6
  • True Balanced Composite (Gross): -12
  • Benchmark *: -10.8
Period: 3 Yr
  • True Balanced Composite (Net): 1.5
  • True Balanced Composite (Gross): 2.2
  • Benchmark *: 2.7
Period: 5 Yr
  • True Balanced Composite (Net): 4.1
  • True Balanced Composite (Gross): 4.8
  • Benchmark *: 3.9
Period: 10 Yr
  • True Balanced Composite (Net): 7.5
  • True Balanced Composite (Gross): 8.3
  • Benchmark *: 6.3
Period: Since Inception †
  • True Balanced Composite (Net): 6.2
  • True Balanced Composite (Gross): 6.9
  • Benchmark *: 4.7

Calendar Year Returns

Calendar Year Returns 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
True Balanced Composite (Net) 10.1 10.2 15.6 -0.6 10.2 3.8 10.4 12.6 20.0 11.2
True Balanced Composite (Gross) 10.9 11.0 16.5 0.1 11.0 4.5 11.2 13.3 20.8 12.0
Benchmark * 10.3 10.6 14.5 -3.0 8.5 7.6 6.1 9.5 14.6 8.1

Upside/downside Capture (10 Yr)

Upside Capture
  • True Balanced Composite (Net):
  • True Balanced Composite (Gross): 111
  • Benchmark *: 100
Downside Capture
  • True Balanced Composite (Net):
  • True Balanced Composite (Gross): 93
  • Benchmark *: 100
  • * 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), 5% 91 Day Treasury Bill, 35% FTSE TMX Canada Universe Bond
  • December 31, 2006

Past performance does not guarantee or indicate future results. Performance is in Canadian dollars. See GIPS report(s) and full disclaimers. See disclaimers for additional details on benchmarks.

True Balanced Composite

Period Start Period End Gross-of-Fee Composite Return Net-of-Fee Composite Return Benchmark Return Internal Dispersion Composite Gross 3-Yr St Dev Benchmark 3-Yr St Dev Number of Relationships at Period End Total Composite Assets (Millions) at Period End Total Firm Assets (Millions) at Period End
31 Dec 2011 31 Dec 2012 11.97% 11.19% 8.08% 1.02% 5.39% 5.45% 55 $1,982 $11,334
31 Dec 2012 31 Dec 2013 20.81% 19.96% 14.60% 1.68% 4.82% 4.93% 84 $2,936 $15,496
31 Dec 2013 31 Dec 2014 13.34% 12.55% 9.48% 0.35% 3.94% 4.34% 99 $3,441 $18,611
31 Dec 2014 31 Dec 2015 11.16% 10.39% 6.09% 1.22% 5.53% 5.44% 111 $3,575 $22,769
31 Dec 2015 31 Dec 2016 4.52% 3.79% 7.59% 0.51% 5.85% 5.64% 120 $3,554 $26,723
31 Dec 2016 31 Dec 2017 10.99% 10.22% 8.48% 0.56% 6.47% 5.81% 120 $3,768 $32,648
31 Dec 2017 31 Dec 2018 0.08% -0.62% -2.99% 0.61% 5.69% 5.24% 122 $3,559 $35,251
31 Dec 2018 31 Dec 2019 16.46% 15.65% 14.49% 0.44% 5.55% 5.42% 124 $3,653 $44,802
31 Dec 2019 31 Dec 2020 10.96% 10.19% 10.64% 0.93% 8.21% 10.05% 130 $3,853 $54,632
31 Dec 2020 31 Dec 2021 10.86% 10.09% 10.27% 0.76% 8.20% 9.60% 126 $3,816 $69,636
31 Dec 2021 30 Sep 2022 -15.66% -16.10% -14.00% 1.22% 10.15% 11.18% 122 $3,038 $55,405
Compliance Statement
Mawer Institutional claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Mawer Institutional has been independently verified for the periods from January 1, 2007 to December 31, 2021. The verification report(s) is/are available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.
Definition of the Firm
For the purposes of applying the GIPS Standards, the Firm is defined as all institutional segments of Mawer Investment Management Limited ('Mawer'), collectively held out as Mawer Institutional. Private clients, Mutual Fund Direct clients and Separately Managed Accounts (SMA) are not included in the GIPS Firm.
Composite Description
Fixed income and equity products with the primary objective balanced between growth and capital preservation. Fixed income products include Canadian government and agency securities, corporate obligations, structured products, and foreign bonds. Equity products include Canadian, American, and international stocks. Includes only accounts considered Institutional.
Restrictions
Must have 45-70% equities with the balance in Canadian fixed income.
Composite Creation Date
2013-09-01
Composite Inception Date
2006-12-31
Reporting Currency
All numerical information is calculated and presented in Canadian Dollars.
Invesment Management Fees
70bps on first $5m, 40bps on next $20m, 30bps on next $25m, 25bps on balance.
The amounts of assets in the investment fee tiers are based on Canadian Dollars.
Returns
Returns presented are time-weighted returns. Over all reporting periods in this report, all discretionary accounts are fee-paying. Past performance does not guarantee future results.

Gross-of-fee returns include the reinvestment of all income received/earned. Gross-of-fees returns are presented before management fees and other expenses. Returns do not reflect the deduction of investment advisory fees.

Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule (0.7%) from the monthly gross composite return. Actual fees may vary depending on the applicable fee schedule and the size of the account. Mawer Institutional bears the costs of investment research. Research costs are not separately charged to clients.
Custom Benchmark
As of 1 Oct 2016: 5.00% 91-Day TBill; 35.00% FTSE Canada Universe; 15.00% S&P/TSX Composite; 7.50% S&P/TSX SC; 7.50% MSCI ACWI SC (net); 15.00% S&P 500; 15.00% MSCI ACWI ex-USA (net). As of 1 Jan 2012: 5.00% 91-Day TBill; 35.00% FTSE Canada Universe; 15.00% S&P/TSX Composite; 7.50% BMO SC; 7.50% Russell Global SC; 15.00% S&P 500; 15.00% MSCI EAFE (net). From inception to 31 Dec 2011: 5% 91-Day TBill; 35% FTSE Canada Universe; 22% S&P/TSX Composite; 19% S&P 500; 19% MSCI EAFE (net).

All benchmarks are total return indices (TRIs). Composite benchmarks, if they consist of a blend of more than one index, are calculated by weighting the respective index returns on a monthly basis. Composite and benchmark returns are in Canadian dollars and net of withholding taxes, if applicable. For the composites using blended benchmarks, a 31 Dec 2011 change in benchmark was effected to better reflect a greater emphasis on global and small capitalization equities. On 1 Oct 2016 the benchmark was changed to more accurately reflect the strategy of the composite.
Internal Dispersion
Internal dispersion is calculated using the equal-weighted standard deviation of annual gross returns of those relationships that were included in the composite for the entire period. No dispersion measure is presented when the composite consists of five or fewer portfolios for the full year.
Standard Deviation
The three-year annualized standard deviation measures the variability of the composite gross returns and the benchmark returns over the preceding 36-month period; it is not presented when 36 monthly returns are not available.
Trademark
GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Policies
Mawer Institutional's policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request.
List of Composites and Pooled Funds
A list of composite descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds are available upon request.
  • Disclaimers

    All information is in Canadian dollars unless otherwise stated. The strategy performance presented is based on the True Balanced Composite and is gross and net of fees. Returns are calculated using a time-weighted calculation and are annualized for periods greater than one year. The index is unmanaged and does not incur fees or expenses. It is not possible to directly invest in an index.

    Gross-of-fee returns include the reinvestment of all income received/earned and are presented before management fees and other expenses, and after withholding taxes, if applicable. A client's actual return will be reduced by management fees. Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule from the monthly gross-of-fee returns of the composite. Actual fees may vary depending on the applicable fee schedule and the size of the account.

    Past performance does not guarantee or indicate future results. All financial investments involve an element of risk. The value of investments may rise and fall so you may get back less than originally invested. Investors should consider the risks, including lower returns, related to currency movements between their investing currency and the portfolio’s base currency, if different. Investors should be aware that forward-looking statements and forecasts may not be realized.

    The information contained herein was provided by Mawer Investment Management Ltd. and intends to provide you with information related to Mawer Balanced strategy and True Balanced Composite at a point in time. It is not intended to be investment advice applicable to any specific circumstance and should not be construed as investment advice. Market conditions may change impacting the composition of a portfolio. Mawer assumes no responsibility for any investment decisions made based on the information provided herein. Certain information contained herein is obtained from third parties. Mawer believes such information to be accurate and reliable as at the date hereof, however does not guarantee that it is accurate or complete or current at all times.

    References to specific securities are presented for informational purposes only. Information relating to investment approaches or individual investments should not be construed as advice or endorsement. Any views expressed were prepared based upon the information available at the time and are subject to change. All information is subject to possible correction. In no event shall Mawer be liable for any damages arising out of, or in any way connected with, the use or inability to use this information appropriately.

    London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2022. 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.

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

    Mawer Internal Balanced benchmark:
    As of 1 Oct 2016: 5.00% 91-Day TBill; 35.00% FTSE Canada Universe; 15.00% S&P/TSX Composite; 7.50% S&P/TSX SC; 7.50% MSCI ACWI SC (net); 15.00% S&P 500; 15.00% MSCI ACWI ex-USA (net). As of 1 Jan 2012: 5.00% 91-Day TBill; 35.00% FTSE Canada Universe; 15.00% S&P/TSX Composite; 7.50% BMO SC; 7.50% Russell Global SC; 15.00% S&P 500; 15.00% MSCI EAFE (net). From inception to 31 Dec 2011: 5% 91-Day TBill; 35% FTSE Canada Universe; 22% S&P/TSX Composite; 19% S&P 500; 19% MSCI EAFE (net).

    Mawer Credit Rating Methodology:
    Bond ratings are determined using the security level ratings of S&P, DBRS and Moody’s. If two agencies rate a security, and the ratings are not equal, we use the lower of the two ratings. If three agencies rate a security, we use the most common rating. In the rare event that all three agencies disagree, we use the middle rating. To determine the aggregate rating of a portfolio, each rating is given a numeric value, and then the weighted average for the portfolio is taken and translated back into a letter grade including cash and cash equivalents. An issuer rating may be applied for bonds classified as Government if security-level ratings are not available.

Disclaimers

All information is in Canadian dollars unless otherwise stated. The strategy performance presented is based on the True Balanced Composite and is gross and net of fees. Returns are calculated using a time-weighted calculation and are annualized for periods greater than one year. The index is unmanaged and does not incur fees or expenses. It is not possible to directly invest in an index.

Gross-of-fee returns include the reinvestment of all income received/earned and are presented before management fees and other expenses, and after withholding taxes, if applicable. A client's actual return will be reduced by management fees. Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule from the monthly gross-of-fee returns of the composite. Actual fees may vary depending on the applicable fee schedule and the size of the account.

Past performance does not guarantee or indicate future results. All financial investments involve an element of risk. The value of investments may rise and fall so you may get back less than originally invested. Investors should consider the risks, including lower returns, related to currency movements between their investing currency and the portfolio’s base currency, if different. Investors should be aware that forward-looking statements and forecasts may not be realized.

The information contained herein was provided by Mawer Investment Management Ltd. and intends to provide you with information related to Mawer Balanced strategy and True Balanced Composite at a point in time. It is not intended to be investment advice applicable to any specific circumstance and should not be construed as investment advice. Market conditions may change impacting the composition of a portfolio. Mawer assumes no responsibility for any investment decisions made based on the information provided herein. Certain information contained herein is obtained from third parties. Mawer believes such information to be accurate and reliable as at the date hereof, however does not guarantee that it is accurate or complete or current at all times.

References to specific securities are presented for informational purposes only. Information relating to investment approaches or individual investments should not be construed as advice or endorsement. Any views expressed were prepared based upon the information available at the time and are subject to change. All information is subject to possible correction. In no event shall Mawer be liable for any damages arising out of, or in any way connected with, the use or inability to use this information appropriately.

London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2022. 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.

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

Mawer Internal Balanced benchmark:
As of 1 Oct 2016: 5.00% 91-Day TBill; 35.00% FTSE Canada Universe; 15.00% S&P/TSX Composite; 7.50% S&P/TSX SC; 7.50% MSCI ACWI SC (net); 15.00% S&P 500; 15.00% MSCI ACWI ex-USA (net). As of 1 Jan 2012: 5.00% 91-Day TBill; 35.00% FTSE Canada Universe; 15.00% S&P/TSX Composite; 7.50% BMO SC; 7.50% Russell Global SC; 15.00% S&P 500; 15.00% MSCI EAFE (net). From inception to 31 Dec 2011: 5% 91-Day TBill; 35% FTSE Canada Universe; 22% S&P/TSX Composite; 19% S&P 500; 19% MSCI EAFE (net).

Mawer Credit Rating Methodology:
Bond ratings are determined using the security level ratings of S&P, DBRS and Moody’s. If two agencies rate a security, and the ratings are not equal, we use the lower of the two ratings. If three agencies rate a security, we use the most common rating. In the rare event that all three agencies disagree, we use the middle rating. To determine the aggregate rating of a portfolio, each rating is given a numeric value, and then the weighted average for the portfolio is taken and translated back into a letter grade including cash and cash equivalents. An issuer rating may be applied for bonds classified as Government if security-level ratings are not available.