U.S. Mid Cap Equity

As at September 30, 2022

Strategy Profile

Managers:
Jeff Mo, CFA
Benchmark :
Russell Midcap Index
Assets Under Management:
Mawer Investment Management Ltd: $56,139 M
Strategy * : $61 M
Inception Date:
October 31, 2020
  • * 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 equities and equity‐related securities of U.S. mid capitalization entities. Treasury bills or short-term investments, not exceeding three years to maturity, may also be used from time to time. 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:
Jeff Mo, CFA
Benchmark :
Russell Midcap Index
Assets Under Management:
Mawer Investment Management Ltd: $56,139 M
Strategy * : $61 M
Inception Date:
October 31, 2020
  • * 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 equities and equity‐related securities of U.S. mid capitalization entities. Treasury bills or short-term investments, not exceeding three years to maturity, may also be used from time to time. 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: 5.6
  • : 4.1
Sector: Consumer discretionary
  • Portfolio: 10.3
  • : 11.4
Sector: Consumer staples
  • Portfolio: 0
  • : 3.7
Sector: Energy
  • Portfolio: 0
  • : 5
Sector: Financials
  • Portfolio: 9
  • : 13.8
Sector: Health care
  • Portfolio: 15.7
  • : 10.6
Sector: Industrials
  • Portfolio: 23.7
  • : 15.2
Sector: Information technology
  • Portfolio: 28.1
  • : 16.3
Sector: Materials
  • Portfolio: 2.7
  • : 6.1
Sector: Real estate
  • Portfolio: 2.9
  • : 8.1
Sector: Utilities
  • Portfolio: 0
  • : 5.9
Sector: Cash & cash equivalents
  • Portfolio: 1.9
  • : 0

Top 10 Equity Holdings

Portfolio Weight
FTI Consulting 4.9
Windmark 4.4
CDW 4.3
Amphenol 4.2
Charles River Labs International 4.1
LHC Group 3.7
Insperity 3.4
XPEL 3.3
PC Connection 3.1
Premier 3.0
Total 38.4

Market Capitalization

Billions Number of Companies Portfolio Weight
Less than $15 billion - 0.0
$1 to $5 8 21.8
$5 to $15 16 37.2
$15 to $30 9 19.9
$30 to $60 6 13.4
$60+ 3 6.4
Cash & cash equivalents - 2.2
Total 42 100.0

Portfolio Characteristics

Portfolio Russell Midcap Index
ROE (%) 25.3 17.1
Forward P/E 17.7 15.8
Dividend Yield (%) 0.7 1.7
Active Share (%) 95.8 -

Source: FactSet and Mawer Investment Management Ltd. Portfolio characteristics are based on the Mawer U.S. Mid Cap Equity representative account and is supplemental information to the U.S. Mid Cap Equity Composite. See GIPS report and full disclaimers.

Annualized Performance

Period: YTD
  • U.S. Mid Cap Equity Composite (Net): -25.2
  • U.S. Mid Cap Equity Composite (Gross): -24.8
  • Russell Midcap Index: -24.3
Period: 1 Yr
  • U.S. Mid Cap Equity Composite (Net): -18.5
  • U.S. Mid Cap Equity Composite (Gross): -18
  • Russell Midcap Index: -19.4
Period: Since Inception *
  • U.S. Mid Cap Equity Composite (Net): 8.6
  • U.S. Mid Cap Equity Composite (Gross): 9.3
  • Russell Midcap Index: 5.4

Calendar Year Returns

Calendar Year Returns 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
U.S. Mid Cap Equity Composite (Net) 30.7 - - - - - - - - -
U.S. Mid Cap Equity Composite (Gross) 31.5 - - - - - - - - -
Russell Midcap Index 22.6 - - - - - - - - -

Upside/downside Capture (Since inception * )

Upside Capture
  • U.S. Mid Cap Equity Composite (Net):
  • U.S. Mid Cap Equity Composite (Gross): 123
  • Russell Midcap Index: 100
Downside Capture
  • U.S. Mid Cap Equity Composite (Net):
  • U.S. Mid Cap Equity Composite (Gross): 104
  • Russell Midcap Index: 100
  • * October 31, 2020

Past performance does not guarantee or indicate future results. Performance is in U.S. dollars. See GIPS report(s) and full disclaimers.

U.S. Mid Cap Equity 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 Oct 2020 31 Dec 2020 - - - - - - 1 $0.2 $42,883
31 Dec 2020 31 Dec 2021 31.53% 30.67% 22.58% - - - 1 $0.3 $55,129
31 Dec 2021 30 Sep 2022 -24.79% -25.15% -24.27% - - - 3 $30 $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
U.S. Mid-Cap equity products with a market capitalization a market capitalization of approximately US$60 billion and below, with the primary objective being growth. These products include American stocks with a market capitalization of approximately US$60 billion and below. Includes only accounts considered Institutional.
Restrictions
Maximum 15% cash and cash equivalents.
Composite Creation Date
2021-01-01
Composite Inception Date
2020-10-31
Reporting Currency
All numerical information is calculated and presented in US Dollars.
Invesment Management Fees
65bps on first $25m, 55bps on next $25m, 50bps on next $200m, 45bps on next $250m, 40bps 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. This composite contains 100% of 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
Russell Midcap

The Russell Midcap Index measures performance of the 800 smallest companies (31% of total capitalization) in the Russell 1000 Index.

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 U.S. Mid Cap Equity 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 U.S. Mid Cap Equity strategy and U.S. Mid Cap Equity 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 indices is for informational purposes only. The Russell Midcap Index measures performance of the 800 smallest companies (31% of total capitalization) in the Russell 1000 Index. The strategy does not mirror the stated indices and the volatility may be materially different than the volatility of such index.

Disclaimers

All information is in U.S. dollars unless otherwise stated. The strategy performance presented is based on the U.S. Mid Cap Equity 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 U.S. Mid Cap Equity strategy and U.S. Mid Cap Equity 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 indices is for informational purposes only. The Russell Midcap Index measures performance of the 800 smallest companies (31% of total capitalization) in the Russell 1000 Index. The strategy does not mirror the stated indices and the volatility may be materially different than the volatility of such index.