| Fund Company | Mawer Investment Management Ltd. |
| Fund Type | Global Equity Balanced |
| Rating | A |
| Style | Growth |
| Risk Level | Medium |
| Load Status | No Load |
| RRSP/RRIF Suitability | Excellent |
| TFSA Suitability | Excellent |
| Manager | Craig Senyk since September 2004 |
| MER | 0.99% |
| Code | MAW 105 – No Load Units |
| Minimum Investment | $5,000 |
Analysis: This fund used to be known as the Mawer Canadian Diversified Investment Fund, until its name change midway through 2012. Under the new name, it has the objective of achieving a long term, value added total return on both a pre-tax and after tax basis. It invests in a mix of large and small cap stocks, bonds and cash.
Equities are selected using Mawer’s traditional approach of systematically buying wealth creating companies at a discount to intrinsic value. The fixed sleeve focuses on sector allocation, security selection, and trading strategies.
The asset mix is actively managed, based on Mawer’s macro analysis that 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. Any changes to the asset mix are done gradually to reduce risk. At November 30, it held 7% in cash, 31% in bonds, and the balance in equities.
With tax effective returns being part of the objective of the fund, taxes are minimized through the application of a tax overlay strategy, with the objective to minimize taxable distributions. It has paid a variable monthly distribution for the past year that has ranged between $0.0111 and .0441 per unit. All the distributions paid this year are expected to be treated as dividend or capital gain for tax purposes.
Since Mr. Senyk took over in 2004, performance has been above average in every year except for 2009, when its 17.6% gain lagged other balanced funds. For the five years ending November 30, it has gained an average annualized return of 12.2% per year. Shorter term numbers are equally as impressive, with a one year gain of 20.6%. A great deal of emphasis is placed on risk management, with the fund’s volatility being well below the category average.
No matter how you slice it, this is a great balanced fund. It offers a diversified portfolio of Canadian and global equities, combined with conservatively managed bond exposure. Costs are very reasonable, with an MER of 0.99%. This can be a great core holding for most investors, and could even be a great total investment solution for some smaller investors looking for a diversified portfolio. I expect that it will continue to deliver above average returns with below average risk.