Investing

Mawer Investments is exploring a $2 Billion Sale

  • Last Updated:
  • Dec 20th, 2018 4:41 pm
22 replies
Member
Mar 11, 2017
257 posts
45 upvotes
BC
Wow.. Are they serious?!? I really like Mawer funds and I hope whoever purchases them do not destroy those funds... oh boy...
Deal Addict
Sep 9, 2003
1831 posts
284 upvotes
Toronto
FFS...all good things come to an end
Deal Fanatic
Jul 1, 2007
8447 posts
1496 upvotes
Would make sense for Manulife to buy them, seeing as they already have them subadvising some funds.

Yeah, it hurts to see another independent (whether it be a fund company or a wealth manager) about to get swallowed up by a bank.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Sr. Member
Feb 21, 2010
878 posts
252 upvotes
Scarborough
Especially after what BNS paid for last two acquisitions, Mawer is hoping for a high price too. Can’t blame them.
I am sure any Canadian bank would love to buy them. Why would they hire BNS to manage the sale? I understand there must be a Chinese wall and BNS still may be running to acquire them, but they definitely can’t use their stock st these prices
Sr. Member
Feb 4, 2017
801 posts
594 upvotes
Toronto
WTH, I just joined them back in August for their tax effective fund. I am switching over to Passive if one of the banks purchase them and increase the fees.
Deal Addict
Jun 3, 2009
4973 posts
974 upvotes
Montreal
Why is Mawer selling itself though? Doesn't it have enough recurring revenues given its huge AUM? Maybe ETF's have already taken significant market share away from it.
Member
Nov 24, 2016
350 posts
378 upvotes
cn_habs wrote: Why is Mawer selling itself though? Doesn't it have enough recurring revenues given its huge AUM? Maybe ETF's have already taken significant market share away from it.
In one of the articles it said that the employees own it. If they can pocket a couple of billion and each walk with hundreds of millions of dollars... why not?
Jr. Member
May 24, 2003
141 posts
53 upvotes
Toronto
That’s too bad. I am a client and was really hoping to stay with them long term. May have to go to ETF.

Does anyone know what the ETF equivalent of mawer global equity? The vanguard ex Canada’s return is 23-% lower annually so I don’t think that’s the right comparison.
[OP]
Deal Fanatic
Aug 5, 2006
5481 posts
2675 upvotes
Global Village
cn_habs wrote: Why is Mawer selling itself though? Doesn't it have enough recurring revenues given its huge AUM? Maybe ETF's have already taken significant market share away from it.
They must be thinking that their valuation has peaked, if there is a market downturn next year inestors will panic and pull out so the time for them to strike is now. Still they have a very strong brand, I can see a potential bidding war for them between BMO, Manulife, CIBC and RBC with CIBC submitting the highest bid. I just hope we see a Mawer ETF line from whomever buys them.
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Newbie
Nov 11, 2018
1 posts
2 upvotes
My household has upper six figures in mawer funds, still in accumulation phase, and was planning to stay longterm. Im going to immediately bail if they sell to a bank.
Newbie
Dec 16, 2007
30 posts
30 upvotes
ottawa
Do the records show that any investment company purchased by a bank has turned to crap? Either by increasing fees, or worsened performance?

Mawer has an online seminar Thursday at 2pm, I am hoping some light will be shed on this matter. I have investments with Mawer and would be nice if things stayed the same.
Deal Addict
User avatar
Oct 14, 2015
1195 posts
872 upvotes
Neo wrote: Does anyone know what the ETF equivalent of mawer global equity? The vanguard ex Canada’s return is 23-% lower annually so I don’t think that’s the right comparison.
Another one you could look at is TSX:XWD iShares MSCI World Index ETF
- inception June 2009
- MER 0.47%

It also underperforms Mawer Global Equity, but then I'll be surprised if there's an ETF out there that beats the Mawer fund.

https://www.blackrock.com/ca/individual ... -index-etf
Deal Addict
User avatar
Oct 14, 2015
1195 posts
872 upvotes
Please reset your panic buttons.

Anyone on Mawer's mailing list, check your inbox.
To be clear, no decision has been made to sell the firm.
[OP]
Deal Fanatic
Aug 5, 2006
5481 posts
2675 upvotes
Global Village
harbor81 wrote: Do the records show that any investment company purchased by a bank has turned to crap? Either by increasing fees, or worsened performance?

Mawer has an online seminar Thursday at 2pm, I am hoping some light will be shed on this matter. I have investments with Mawer and would be nice if things stayed the same.
The 1 that comes to mind is Philips Hager & North, since RBC bought them 10 years ago they're far from crap, still around with similar if not lower MER's. Mawer could be the PH&N of CIBC or whoever ends up buying them.
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