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Q1/6 Focus on ETFs
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Q2/3 MB Cdn Eq Growth
Q2/3 Batterymarch US Eq
Q1/3 Saxon Stock
Q1/3 BG Balanced
Q4/2 Mawer New Canada
Q4/2 Perigee T-Plus
Q3/2 PH&N Dividend Inc
Q3/2 PH&N Bond
Q2/2 Leith Wheeler Cdn Eq
Q2/2 Perigee Diversifund
Q1/2 PH&N Cdn Equity
Q1/2 Mawer U.S. Equity







Mawer New Canada Closure

The Mawer New Canada Fund closed its doors to new investors in January. According to its manager, Martin Ferguson, this action was taken because large inflows of cash had begun to compromise his ability to prudently manage the portfolio for existing investors. Mawer saw a 95% increase in its small-cap assets (including both the mutual fund and much larger institutional accounts) in only 12 months. About one year ago Mr. Ferguson foresaw eventual difficulties in effectively deploying so much cash in the often illiquid small-cap market.

When I spoke with Mr. Ferguson about the closure he candidly pointed out that Mawer has no prior experience with such situations. He anticipates re-opening the fund once he has gained enough confidence in his abilities to effectively manage the increased assets. It is expected that the fund will remain closed for at least twelve months.

Those who still want a piece of Mawer New Canada should note that the Mawer Balanced RSP fund, which is managed as a fund of funds, still invests some of its portfolio in units of the New Canada fund.

As previously mentioned, we have reluctantly removed the Mawer New Canada fund from the Frugal Funds list. However, it must be said that the placement of existing investors' interests above those of the firm constitutes admirable behaviour on the part of Mr. Ferguson and of Mawer itself. We will be happy to return the fund to its rightful place on the list when it once again becomes available to new investors.

FF: Q1 2005

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