Last year's stock and bond market routs were a reminder of the importance of risk control. Investors seeking a global equity fund that prioritizes risk management and diversification could consider Mawer Global Equity, which has a Morningstar Analyst Rating of Gold. The Calgary-based fund has a seasoned management team and well-defined investment process that have helped it beat its benchmark and category average over the long term.
Mawer Investment Management Focuses on Stakeholders – and Risk
Mawer Investment Management, the parent firm of Mawer Global Equity, has a strong, values-driven culture that is reflected in its approach to risk management. One key aspect of this culture is its commitment to doing the right thing for clients, employees, and the community. For instance, the 100 percent employee-owned firm is able to attract and retain top talent, and it has a strong record of closing strategies to manage capacity. Because the investment management team represents the bulk the firm’s owners, they have a lot of incentive to pay close attention to risk control.
The firm also values diversity of thought, which is reflected in the diverse team of investment professionals – encompassing 10 countries, 13 languages, and 23 educational backgrounds. This diversity helps the team look at risk management from multiple viewpoints and build resilient portfolios. Mawer takes a disciplined, research-driven approach, using a customized Monte Carlo simulation to generate a range of potential outcomes for each holding and make informed decisions about portfolio construction across all strategies.
Mawer Global Equity is Diversified – Without Energy
Mawer Global Equity, which is also a cornerstone of the firm's multi-asset strategies (two of which earn a Morningstar Analyst Rating of Bronze), has a diversified portfolio spanning a variety of sectors and countries, and limits single security and sector weights to further mitigate risk. These strategies have helped the fund consistently provide strong downside protection while still outperforming its benchmark and category average during rising markets.
For instance, from April 2010 through March 2022, the fund lost less than its benchmark and peers in five out of the six times the Morningstar Global Gross Index dropped 10% or more for at least one month.
The disciplined team is willing to forgo short-term gains to adhere to its process and manage risk. For example, the squad continued to avoid most energy sector stocks as they rallied and outperformed last year because historically the managers have found very few companies in the sector that offer what they look for—the ability to generate sustainable wealth and shares that trade at discounts based on the managers’ value estimates. This focus on long-term fundamentals and valuations has been one of the secrets of the fund's consistent, long-term outperformance.
Mawer Global Equity is Set for Long-Term Success
Mawer Global Equity’s track record, which spans multiple market cycles and economic downturns, showcases its resilience and ability to deliver solid returns. Since its October 2009 inception through November 2022, the A-share class's 11.9% annualized return beat the Morningstar Global Gross Index and Morningstar Global Equity category by 0.9 and 3.7 percentage points, respectively. This off-the-beaten-track team and process have earned investors’ long-term confidence.
