The portfolio is diversified quite nicely, with exposure to most key asset
classes, including domestic and foreign large cap and small cap stocks, as
well as domestic and foreign fixed income. At the end of June, a third was
invested in bonds, 18% Canadian equity, 19% in U.S. equity, and 26%
Each of the underlying funds are managed using Mawer’s disciplined,
research-driven, bottom-up process that looks to find well managed, wealth
creating companies that are trading at less than they are worth. This
approach is very team-focused, with portfolio managers and analysts
constantly challenging ideas. Another interesting aspect is the stress
testing of valuations the team conducts, helping to provide an extra layer
of insight to the companies they own.
The equity portfolio holds what can best be described as quality companies,
and the sector mix is somewhat similar to the benchmark, except for a
modest overweight in financials and industrials, and an underweight in
healthcare, utilities, and real estate. It is the quality bias that created
a headwind to the performance during the year, as it was the
commodity-focused sectors, materials, and energy that led the way higher.
Fixed income is a bit of a weakness with this fund, as its positioning
looks very much like the indices, resulting in a high levels of interest
sensitivity, which hurt in a rising yield environment.
Still, this remains one of the best choices for investors looking for a one
ticket solution. It offers a very disciplined management process, and a
rock-bottom MER of 0.96%. Even adding in 1% for dealer compensation, this
fund is still cheap.
Mawer Balanced Fund
Mawer Investment Management
Global Neutral Balanced
FundGrade A+ Awards:
2011, 2012, 2013, 2014, 2015, 2016
Greg Peterson since June 2006
MAW104 (no load)
Dave Paterson, CFA, is the Director of Research, Investment Funds for
D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due
diligence on a variety of investment products. He is also the publisher
Dave Paterson’s Top Funds Report,
offering regular commentary and in-depth analysis of Canada’s top
investment funds. He uses a unique analytical approach to identify
funds with strong, risk-adjusted returns, and regularly publishes his
insights and analyses in Fund Library.
Notes and Disclaimer
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amount of your investment in the fund will be returned to you. Fund values
change frequently and past performance may not be repeated. No guarantee of
performance is made or implied. This article is for information purposes
only and is not intended as personalized investment advice.