Q: I have a large (for me) holdings in these two Mawer funds.
I can either keep paying the management fees and the annual capital gain, or sell MAW150 at a loss, or sell both, get hit by a large capital gain (MAW107) and buy Canadian ETF's holding small and mid US stocks.
What'd you do?
Thanks Jerry
I can either keep paying the management fees and the annual capital gain, or sell MAW150 at a loss, or sell both, get hit by a large capital gain (MAW107) and buy Canadian ETF's holding small and mid US stocks.
What'd you do?
Thanks Jerry
5i Research Answer:
We can't personalize answers, and regardless we do not know specifics here (tax hit, tax rate, risk tolerance, time frame, etc. ). We would not consider either a 'bad' fund, at least as far as mutual funds go. We do think small caps are set to run, so we would lean towards keeping M150; M107 is closed to new investors, so selling may prevent any return to the fund. But, it has an inception return of 12.7%, and we would consider it one of the best funds available. IWO could be a small cap substitute, but M150 has better numbers (some of this is due to currency, but M150 has not lagged much). For now, we think keeping both is the right move.