| Fund Company | Mawer Investment Management Ltd. |
| Fund Type | Global Neutral Balanced |
| Rating | B |
| Style | Blend |
| Risk Level | Medium |
| Load Status | No Load |
| RRSP/RRIF Suitability | Excellent |
| TFSA Suitability | Excellent |
| Manager | Greg Peterson since June 2006 |
| MER | 0.98% |
| Code | MAW 104 |
| Minimum Investment | $5,000 |
Analysis: If you are looking for a great, one stop solution that gives you exposure to a wide range of asset classes, then this is a fund that is definitely worthy of consideration. It is a portfolio that invests in mutual funds that are managed by Calgary based Mawer Investments.
The target asset mix is set in the neighbourhood of 40% fixed income and 60% equity. While the manager has the ability to move this mix based on his outlook, the reality is that it doesn’t stray too far from the target. At March 31, it was modestly overweight equities.
Each of the underlying funds are of the utmost quality. However, if we had to pick a weak spot it would be with the Bond fund, which looks very much like the benchmark. Duration is on the low end of its allowable range, coming it at half a year lower than the DEX Universe Bond Index. It is modestly overweight in corporate bonds. This positioning may have been okay in a falling rate environment, we don’t believe it will do as well once rates begin to rise.
Each of the equity funds is managed using a disciplined, research driven process that looks to find great companies with strong management teams that are trading at a discount to its intrinsic value.
Its performance has consistently been above that of its benchmark and peer group for two main reasons. The first is the disciplined process that is used by the managers in the underlying funds. The second reason is cost. With an MER of 0.98%, it is one of the lowest priced balanced funds available.
Considering the above, it is our opinion that this is one of the better balanced funds available. It is consistent. We don’t expect it to shoot the lights out, but it also won’t hurt you too badly on the downside. Another positive is that it provides access to a few Mawer funds that have been capped.
This is a great fund for investors looking for a one ticket solution for their portfolio where they know they can rest easy, knowing their portfolio is in good hands. It is best suited for registered plans because it pays out distributions that are mainly considered regular income for tax purposes, which are taxed at the highest marginal rate.