Mawer Global Equity

Analysis: Managed by the team of Jim Hall and Paul Moroz, this go anywhere equity fund invests in companies of any size that meet the Mawer investment criteria. In very simple terms, they are looking for wealth-creating businesses with competent management and long-term competitive advantages. Once they find these companies, they buy them at a reasonable price and look to hold them for the long term. To find these opportunities, the managers follow a highly disciplined, research-driven, bottom-up process

It can invest in companies of any size, but has recently focused on larger names. At the end of February, more than three quarters was invested in larger companies.

The portfolio is much different than its benchmark. It holds approximately 70 stocks, with the top ten making up about 30%. It is overweight in industrials and financials, and significantly underweight in consumer focused names.

They tend to take a longer term outlook when looking at a company. This is reflected in the fund’s very low level of portfolio turnover. It has averaged less than 20% per year since its launch.

Performance has been very strong, gaining 17.8% a year for the past three, besting both the index and most of the peer group. Perhaps even more impressive is this has been done with a much lower level of volatility, resulting in very strong risk adjusted returns.

With its go anywhere mandate and bottom up portfolio construction approach, there may be periods of time where performance lags the peer group and benchmark. However, given the strength, reputation and process in place at Mawer, I would expect that this fund will continue to deliver above average returns with below average risk for investors over the long term.