As bottom-up, benchmark agnostic, fundamental investors, we seek to identify companies with sustainable competitive advantages, regardless of industry or economic conditions. We believe that by consistently following our investment philosophy—seeking wealth-creating companies, with great management teams, bought at a discount to intrinsic value—we can provide investors with above-average, long-term, risk-adjusted returns.
Global Small Cap
As at December 31, 2022This strategy is closed to new institutional investors.
Strategy Profile
- Managers:
-
Christian Deckart, CFA, PhD
Karan Phadke, CFA
John Wilson, CFA
- Benchmark :
-
MSCI ACWI Small Cap (Net)
- Assets Under Management:
-
Mawer Investment Management Ltd: $82,539 M
Strategy * : $3,478 M - Inception Date:
- October 2, 2007
- * Based on all accounts following the strategy
Investment Philosophy
As bottom-up, benchmark agnostic, fundamental investors, we seek to identify companies with sustainable competitive advantages, regardless of industry or economic conditions. We believe that by consistently following our investment philosophy—seeking wealth-creating companies, with great management teams, bought at a discount to intrinsic value—we can provide investors with above-average, long-term, risk-adjusted returns.
What Does the Strategy Invest In?
The strategy invests primarily in equity and equity-related securities of smaller companies around the world. The amount invested in any one country will vary depending upon individual company by company opportunities in each area. The strategy will diversify through currencies, industries, and countries to increase safety, and to increase the growth and liquidity of the investments. Treasury bills or short-term investments, not exceeding three years to maturity, may also be used from time to time.
Sector Weights
Regional Weights
Top 10 Equity Holdings
| Portfolio Weight | |
|---|---|
| De'Longhi | 4.5 |
| Ipsos | 3.8 |
| PC Connection | 3.6 |
| InPost | 3.4 |
| Winmark | 3.4 |
| Atea | 3.2 |
| RS Group | 3.2 |
| Aramex | 2.6 |
| Insperity | 2.5 |
| CBIZ | 2.4 |
| Total | 32.6 |
Market Capitalization
| Billions | Number of Companies | Portfolio Weight |
|---|---|---|
| $0 to $1 | 10 | 8.8 |
| $1 to $3 | 17 | 33.1 |
| $3 to $10 | 25 | 50.4 |
| $10+ | - | 0.0 |
| Cash & Cash Equivalents | - | 7.7 |
| Total | 52 | 100.0 |
Portfolio Characteristics
| Portfolio | MSCI ACWI Small Cap (Net) | |
|---|---|---|
| ROE (%) | 21.2 | 12.0 |
| Forward P/E | 14.9 | 15.8 |
| Dividend Yield (%) | 2.7 | 2.3 |
| Active Share (%) | 99.1 | - |
| Annual Turnover | 19.7 | - |
| Number Of Holdings | 52 | - |
Source: FactSet and Mawer Investment Management Ltd. Portfolio characteristics are based on the Mawer Global Small Cap representative account and is supplemental information to the Global Small Cap Composite. See GIPS report and full disclaimers.
Annualized Performance
Calendar Year Returns
| Calendar Year Returns | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Global Small Cap Composite (Net) | -17.2 | 5.5 | 15.6 | 25.5 | -2.4 | 22.2 | 0.0 | 31.7 | 12.7 | 41.1 | 29.8 |
| Global Small Cap Composite (Gross) | -16.3 | 6.7 | 16.8 | 26.8 | -1.4 | 23.5 | 1.0 | 33.1 | 13.9 | 42.6 | 31.2 |
| MSCI ACWI Small Cap (Net) * | -12.8 | 15.1 | 14.3 | 18.4 | -6.7 | 15.7 | 8.3 | 18.3 | 9.1 | 33.7 | 15.6 |
Upside/downside Capture (10 Yr)
- * MSCI ACWI Small Cap (Net). Prior to October 2016, Russell Global Small Cap Index.
- † July 31, 2008
Past performance does not guarantee or indicate future results. Performance is in Canadian dollars. See GIPS report(s) and full disclaimers.
Global Small Cap Composite
| Period Start | Period End | Gross-of-Fee Composite Return | Net-of-Fee Composite Return | Benchmark Return | Internal Dispersion | Composite Gross 3-Yr St Dev | Benchmark 3-Yr St Dev | Number of Relationships at Period End | Total Composite Assets (Millions) at Period End | Total Firm Assets (Millions) at Period End |
| 31 Dec 2012 | 31 Dec 2013 | 42.61% | 41.13% | 33.67% | - | 8.84% | 10.68% | 4 | $566 | $15,496 |
| 31 Dec 2013 | 31 Dec 2014 | 13.87% | 12.69% | 9.13% | - | 6.65% | 8.55% | 8 | $601 | $18,611 |
| 31 Dec 2014 | 31 Dec 2015 | 33.11% | 31.72% | 18.27% | 1.02% | 8.30% | 8.85% | 14 | $816 | $22,769 |
| 31 Dec 2015 | 31 Dec 2016 | 1.02% | -0.03% | 8.26% | 0.17% | 10.82% | 10.62% | 14 | $747 | $26,723 |
| 31 Dec 2016 | 31 Dec 2017 | 23.54% | 22.25% | 15.67% | 0.88% | 11.91% | 10.95% | 12 | $825 | $32,648 |
| 31 Dec 2017 | 31 Dec 2018 | -1.39% | -2.42% | -6.68% | 0.28% | 10.83% | 11.36% | 12 | $760 | $35,251 |
| 31 Dec 2018 | 31 Dec 2019 | 26.80% | 25.48% | 18.35% | 1.72% | 9.16% | 10.72% | 11 | $845 | $44,802 |
| 31 Dec 2019 | 31 Dec 2020 | 16.77% | 15.55% | 14.29% | 0.37% | 13.24% | 17.70% | 11 | $911 | $54,632 |
| 31 Dec 2020 | 31 Dec 2021 | 6.66% | 5.54% | 15.11% | 0.58% | 13.24% | 16.52% | 11 | $902 | $69,636 |
| 31 Dec 2021 | 31 Dec 2022 | -16.32% | -17.20% | -12.76% | 0.70% | 15.59% | 18.88% | 11 | $690 | $60,085 |
- Compliance Statement
- Mawer Institutional claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Mawer Institutional has been independently verified for the periods from January 1, 2007 to December 31, 2021. The verification report(s) is/are available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.
- Definition of the Firm
- For the purposes of applying the GIPS Standards, the Firm is defined as all institutional segments of Mawer Investment Management Limited ('Mawer'), collectively held out as Mawer Institutional. Private clients, Mutual Fund Direct clients and Separately Managed Accounts (SMA) are not included in the GIPS Firm.
- Composite Description
- Global equity products with a market capitalization of less than $3 billion CAD, with the primary objective being growth. These products include Canadian, American, and international equities that have a market capitalization less than $3 billion CAD at the time of initial purchase. Includes only accounts considered Institutional.
- Restrictions
- Maximum 15% cash and cash equivalents. Minimum 70% Global Small Cap.
- Composite Creation Date
- 2013-09-01
- Composite Inception Date
- 2008-07-31
- Reporting Currency
- All numerical information is calculated and presented in Canadian Dollars.
- Invesment Management Fees
- 105bps on first $5m, 75bps on next $20m, 65bps on next $25m, 60bps on balance. The amounts of assets in the investment fee tiers are based on Canadian Dollars.
- Returns
-
Returns presented are time-weighted returns. Over all reporting periods in this report, all discretionary accounts are fee-paying. Past performance does not guarantee future results. Gross-of-fee returns include the reinvestment of all income received/earned. Gross-of-fees returns are presented before management fees and other expenses. Returns do not reflect the deduction of investment advisory fees. Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule (1.05%) from the monthly gross composite return. Actual fees may vary depending on the applicable fee schedule and the size of the account. Mawer Institutional bears the costs of investment research. Research costs are not separately charged to clients.
- Custom Benchmark
- As of 1 Oct 2016: MSCI ACWI Small Cap (net). From Inception to 30 Sep 2016: Russell Global Small Cap. All benchmarks are total return indices (TRIs). Composite benchmarks, if they consist of a blend of more than one index, are calculated by weighting the respective index returns on a monthly basis. Composite and benchmark returns are in Canadian dollars and net of withholding taxes, if applicable. On 1 Oct 2016 the benchmark was changed to more accurately reflect the strategy of the composite.
- Internal Dispersion
- Internal dispersion is calculated using the equal-weighted standard deviation of annual gross returns of those relationships that were included in the composite for the entire period. No dispersion measure is presented when the composite consists of five or fewer portfolios for the full year.
- Standard Deviation
- The three-year annualized standard deviation measures the variability of the composite gross returns and the benchmark returns over the preceding 36-month period; it is not presented when 36 monthly returns are not available.
- Trademark
- GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
- Policies
- Mawer Institutional's policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request.
- List of Composites and Pooled Funds
- A list of composite descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds are available upon request.
Disclaimers
All information is in Canadian dollars unless otherwise stated. The strategy performance presented is based on the Global Small Cap Composite and is gross and net of fees. Returns are calculated using a time-weighted calculation and are annualized for periods greater than one year. The index is unmanaged and does not incur fees or expenses. It is not possible to directly invest in an index.
Gross-of-fee returns include the reinvestment of all income received/earned and are presented before management fees and other expenses, and after withholding taxes, if applicable. A client's actual return will be reduced by management fees. Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule from the monthly gross-of-fee returns of the composite. Actual fees may vary depending on the applicable fee schedule and the size of the account.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts and the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mawer Mutual Funds are managed by Mawer Investment Management Ltd.
Mawer Mutual Funds do not have trailing commissions. If you purchased units of the Mawer Mutual Funds through a third-party dealer, you may be subject to commissions or additional sales charges. Please contact your dealer for more information.
The information contained herein was provided by Mawer Investment Management Ltd. and intends to provide you with information related to Mawer Global Small Cap Fund at a point in time. It is not intended to be investment advice applicable to any specific circumstance and should not be construed as investment advice. Market conditions may change impacting the composition of a portfolio. Mawer assumes no responsibility for any investment decisions made based on the information provided herein. Certain information contained herein is obtained from third parties. Mawer believes such information to be accurate and reliable as at the date hereof, however does not guarantee that it is accurate or complete or current at all times.
References to specific securities are presented for informational purposes only. Information relating to investment approaches or individual investments should not be construed as advice or endorsement. Any views expressed were prepared based upon the information available at the time and are subject to change. All information is subject to possible correction. In no event shall Mawer be liable for any damages arising out of, or in any way connected with, the use or inability to use this information appropriately.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com).
