EAFE Large Cap Equity

As at September 30, 2022

Strategy Profile

Managers:
David Ragan, CFA
Jim Hall, CFA, MBA
Benchmark :
MSCI EAFE Index (Net)
Assets Under Management:
Mawer Investment Management Ltd: $56,139 M
Strategy * : $40 M
Inception Date:
June 30, 2019
  • * Based on all accounts following the strategy

For more information, please contact us.

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 objective of this strategy is to achieve attractive long-term, risk-adjusted rates of return by investing in companies located in developed countries outside of Canada and the United States, primarily in Europe, Australasia, and the Far East (EAFE). The portfolio is built from the bottom up by selecting high-quality companies at reasonable prices, focusing on the long-term prospects of each company.

Strategy Profile

Managers:
David Ragan, CFA
Jim Hall, CFA, MBA
Benchmark :
MSCI EAFE Index (Net)
Assets Under Management:
Mawer Investment Management Ltd: $56,139 M
Strategy * : $40 M
Inception Date:
June 30, 2019
  • * Based on all accounts following the strategy

For more information, please contact us.

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 objective of this strategy is to achieve attractive long-term, risk-adjusted rates of return by investing in companies located in developed countries outside of Canada and the United States, primarily in Europe, Australasia, and the Far East (EAFE). The portfolio is built from the bottom up by selecting high-quality companies at reasonable prices, focusing on the long-term prospects of each company.

Sector Weights

Sector: Communication services
  • Portfolio: 2.6
  • : 4.8
Sector: Consumer discretionary
  • Portfolio: 8.9
  • : 11
Sector: Consumer staples
  • Portfolio: 9.4
  • : 11.3
Sector: Energy
  • Portfolio: 0
  • : 4.9
Sector: Financials
  • Portfolio: 10.9
  • : 17.6
Sector: Health care
  • Portfolio: 14.2
  • : 13.9
Sector: Industrials
  • Portfolio: 30.6
  • : 15
Sector: Information technology
  • Portfolio: 10.8
  • : 7.9
Sector: Materials
  • Portfolio: 5.6
  • : 7.5
Sector: Real estate
  • Portfolio: 0
  • : 2.8
Sector: Utilities
  • Portfolio: 1.6
  • : 3.4
Sector: Cash & cash equivalents
  • Portfolio: 5.5
  • : 0

Regional Weights

Region: Asia Pacific ex. Japan
  • Portfolio: 4.1
  • : 12.8
Region: Europe ex. U.K.
  • Portfolio: 53.3
  • : 48.2
Region: Japan
  • Portfolio: 13.2
  • : 22.6
Region: Middle East/Africa
  • Portfolio: 1.6
  • : 0.8
Region: United Kingdom
  • Portfolio: 22.3
  • : 15.5
Region: Cash & Cash Equivalents
  • Portfolio: 5.5
  • : 0

Top 10 Equity Holdings

Portfolio Weight
Wolters Kluwer NV 3.7
BAE Systems 3.4
Novo Nordisk 3.1
DBS Group Holdings 2.7
KDDI 2.6
LVMH Moet Hennessy Louis Vuitton SE 2.6
Roche Holding 2.6
Bunzl 2.5
Diageo 2.3
RELX 2.3
Total 27.8

Market Capitalization

Billions Number of Companies Portfolio Weight
Less than $10 billion 4 3.4
$10 to $50 39 60.1
$50 to $200 11 19.5
$200+ 5 11.5
Cash & Cash Equivalents - 5.5
Total 59 100.0

Portfolio Characteristics

Portfolio MSCI EAFE Index (Net)
ROE (%) 26.1 18.0
Forward P/E 17.1 11.2
Dividend Yield (%) 2.4 3.5
Active Share (%) 82.7 -
Annual Turnover 31.2 -
Number Of Holdings 59 -

Source: FactSet and Mawer Investment Management Ltd. Information is based on the Mawer EAFE Large Cap representative account and is supplemental information to the EAFE Large Cap Composite GIPS report(s). See GIPS report(s) and full disclaimers.

Annualized Performance

Period: YTD
  • EAFE Large Cap Composite (Net): -31.8
  • EAFE Large Cap Composite (Gross): -31.4
  • MSCI EAFE Index (Net): -27.1
Period: 1 Yr
  • EAFE Large Cap Composite (Net): -27.6
  • EAFE Large Cap Composite (Gross): -27.2
  • MSCI EAFE Index (Net): -25.1
Period: Since Inception *
  • EAFE Large Cap Composite (Net): -1.2
  • EAFE Large Cap Composite (Gross): -0.6
  • MSCI EAFE Index (Net): -2

Calendar Year Returns

Calendar Year Returns 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
EAFE Large Cap Composite (Net) 16.0 14.9 - - - - - - - -
EAFE Large Cap Composite (Gross) 16.8 15.6 - - - - - - - -
MSCI EAFE Index (Net) 11.3 7.8 - - - - - - - -

Upside/downside Capture (Since inception * )

Upside Capture
  • EAFE Large Cap Composite (Net):
  • EAFE Large Cap Composite (Gross): 102
  • MSCI EAFE Index (Net): 100
Downside Capture
  • EAFE Large Cap Composite (Net):
  • EAFE Large Cap Composite (Gross): 97
  • MSCI EAFE Index (Net): 100
  • * June 30, 2019.

Past performance does not guarantee or indicate future results. Performance is in U.S. dollars. Returns for greater than one year have been annualized. See GIPS report(s) and full disclaimers.

EAFE Large 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
30 Jun 2019 31 Dec 2019 5.96% 5.62% 7.01% - - - 1 $1 $34,550
31 Dec 2019 31 Dec 2020 15.61% 14.86% 7.82% - - - 1 $1 $42,883
31 Dec 2020 31 Dec 2021 16.80% 16.04% 11.26% - - - 2 $3 $55,129
31 Dec 2021 30 Sep 2022 -31.44% -31.78% -27.09% - 18.57% 19.12% 2 $2 $40,322
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
Primary objective is to achieve above-average long-term, risk-adjusted returns and to provide diversification of risk by investing primarily in developed-market, larger capitalization entities outside of Canada and the United States, primarily in Europe, Australasia and the Far East (EAFE). Minimum market capitalization will be equal to or greater than the market capitalization of the largest company in the bottom one-third of the MSCI EAFE index at time of initial purchase. Includes only accounts considered Institutional.
Restrictions
Maximum 10% cash and cash equivalents. Minimum 85% EAFE Large Cap Equity.
Composite Creation Date
2019-09-30
Composite Inception Date
2019-06-30
Reporting Currency
All numerical information is calculated and presented in US Dollars.
Invesment Management Fees
Investment Management Fees 65bps on first $25m, 50bps on next $25m, 45bps on next $200m, 40bps on next $250m, 35bps on balance.

The amounts of assets in the investment fee tiers are based on US Dollars.
Returns
Returns presented are time-weighted returns. Past performance does not guarantee future results. The composite contains 100% proprietary assets that are non-fee paying on December 31, 2021. 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. Advisory fees are described in part 2 of the firm’s Form ADV.

Net-of-fee returns are calculated by deducting 1/12th of the top tier of the management fee schedule (0.65%) 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.
Benchmark
MSCI EAFE Index (Net)
The MSCI EAFE Index represents large- and mid-cap stocks across 21 Developed Markets countries (excluding the U.S. and Canada).

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 USD and net of withholding taxes, if applicable.
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 U.S. dollars unless otherwise stated. The strategy performance presented is based on the EAFE Large 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.

    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 and other expenses that may be incurred in the management of the client account. Mawer Investment Management Ltd.’s management fee schedule is outlined in Part 2A of its Form ADV. 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.

    Past performance does not guarantee or indicate future results. All financial investments involve an element of risk. The value of investments may rise and fall so you may get back less than originally invested. Investors should consider the risks, including lower returns, related to currency movements between their investing currency and the portfolio’s base currency, if different. Investors should be aware that forward-looking statements and forecasts may not be realized.

    The information contained herein was provided by Mawer Investment Management Ltd. and intends to provide you with information related to Mawer EAFE Large Cap strategy and EAFE Large Cap Composite 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.

    References to market or composite indices, benchmarks, or other measures of relative market performance over a specified period of time are provided for information only. Reference or comparison to an index does not imply that the portfolio will be constructed in the same way as the index or achieve returns, volatility, or other results similar to the index.

    Indices are unmanaged, include the reinvestment of dividends and do not reflect transaction costs or any performance fees. Unlike indices, the strategy is actively managed and may include substantially fewer and different securities than those comprising each index. Results for the strategy as compared to the performance of the stated index are for informational purposes only. The MSCI EAFE Index represents large and mid-cap stocks across 21 Developed Markets countries (excluding the U.S. and Canada). The strategy does not mirror the stated index and the volatility may be materially different than the volatility of such index.

    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).

Disclaimers

All information is in U.S. dollars unless otherwise stated. The strategy performance presented is based on the EAFE Large 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.

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 and other expenses that may be incurred in the management of the client account. Mawer Investment Management Ltd.’s management fee schedule is outlined in Part 2A of its Form ADV. 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.

Past performance does not guarantee or indicate future results. All financial investments involve an element of risk. The value of investments may rise and fall so you may get back less than originally invested. Investors should consider the risks, including lower returns, related to currency movements between their investing currency and the portfolio’s base currency, if different. Investors should be aware that forward-looking statements and forecasts may not be realized.

The information contained herein was provided by Mawer Investment Management Ltd. and intends to provide you with information related to Mawer EAFE Large Cap strategy and EAFE Large Cap Composite 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.

References to market or composite indices, benchmarks, or other measures of relative market performance over a specified period of time are provided for information only. Reference or comparison to an index does not imply that the portfolio will be constructed in the same way as the index or achieve returns, volatility, or other results similar to the index.

Indices are unmanaged, include the reinvestment of dividends and do not reflect transaction costs or any performance fees. Unlike indices, the strategy is actively managed and may include substantially fewer and different securities than those comprising each index. Results for the strategy as compared to the performance of the stated index are for informational purposes only. The MSCI EAFE Index represents large and mid-cap stocks across 21 Developed Markets countries (excluding the U.S. and Canada). The strategy does not mirror the stated index and the volatility may be materially different than the volatility of such index.

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).