Manulife U.S. Mid-Cap Equity Fund

Managed by Mawer Investment Management Ltd., this fund targets companies with strong fundamentals and proven business models, but which have yet to reach their full potential. Discover a compelling solution focused on finding U.S. based opportunities for investors.


The objective of Manulife U.S. Mid-Cap Equity Fund is to provide above-average long-term, risk-adjusted returns by investing primarily in equities of U.S. mid-capitalization companies.

The fund is sub-advised by our partner Mawer Investment Management Ltd., who bring with them 35 years of experience investing in mid cap securities. Through deep dive security selection and a focus on only the highest quality securities, the fund actively seeks companies with the right balance of stability and potential growth to take their business to the next level. This approach helps to create a broad diversified portfolio of potentially wealth-creating companies with excellent management teams bought at discounts to their intrinsic values.

The fund is targeted to investors who are:

  • Seeking long-term returns from a portfolio of U.S. equity securities
  • Willing to accept a medium level of investment risk
  • Investing for the long term

Note: U.S dollar and segregated fund versions are also available.

  • Unlike their large cap counterparts, most mid cap companies aren’t household names, so they tend to be overlooked by investors and analysts.

  • They’re also likely to be more established and profitable1 than small cap firms and they have a history of lower volatility.2

  • They can also offer significant pricing power, helping them power through inflationary environments.3

But perhaps the greatest benefit of mid caps is diversification. Unlike U.S. large caps, which have become dominated by just a few sectors and companies, U.S. mid cap securities run the gamut of sectors, from IT and communications through to industrials and consumer staples, and everything in between.

U.S. mid caps have become significantly cheaper relative to large caps.

Relative P/E ratios, large caps vs. mid caps

Chart showing the relative P/E ratio of the S&P 500 Index (large caps) compared to the S&P 400 Index (mid caps) since 2008. The chart shows that U.S. mid caps have become significantly cheaper relative to large caps.

Source: Manulife Investment Management, Bloomberg, as of March 31st, 2023. Large caps are represented by the S&P 500 Index. Mid caps are represented by the S&P 400 Index.

Mid caps combine growth prospects and stability

Source: Manulife Investment Management. For illustrative purposes only.

Headquartered in Calgary, Alberta, Mawer has been managing portfolios for individual and institutional investors for more than three decades. Mawer is an independent, privately owned company and because investment management is their only business, they can focus on their primary objective: to preserve and create wealth for investors.

The firm employs a disciplined, research-driven process and long-term view in the management of portfolios. Value-added returns are achieved through prudent security selection and portfolio mix based on fundamental analysis of securities.

The investment management team offers investment expertise across all asset classes. Strong relative returns are achieved through a team process which blends the unique expertise and style of all investment specialists.

U.S. mid caps: look in the middle for diversification opportunities

While U.S. mid caps have many appealing characteristics, such as profitability, growth prospects, strong historical returns, and pricing power, we’d argue that one of their greatest benefits is diversification. We explain why.
Read more

Managing valuation and quality risk with mid caps

Mid-cap equities currently present a pocket of opportunity for investors, helping to mitigate valuation risk and quality risk within portfolios.
Read more


Advisors, are you ready to discover a land of opportunity?

Book a meeting with a member of the Manulife Investment Management sales team to discuss how Manulife U.S. Mid-Cap Equity Fund can fit as a core equity holding.

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Important disclosures

1 Source: Trailing Weighted Earnings Per Share Bloomberg, February 2022. 2 Source: 20-Year Risk/Return Profile, Morningstar, April 2022. Small, mid, and large-cap equities are represented by the following indices respectively: Russell 2000 Index TR CAD, Russell Mid Cap Index TR CAD; S&P 500 Index TR CAD. Performance histories are not indicative of future returns. Indices are unmanaged and cannot be purchased directly by investors. The indices cited are widely accepted benchmarks for investment performance within their relevant regions, sectors or asset classes, and represent non-managed investment portfolios. Although these indices are similar to the fund's objectives, there may be material differences including permitted holdings or investment strategies, which may impact returns. Please refer to the Fund Facts of the fund for more information. 3 “Market Intelligence: Midquarter 1Q22 Outlook”, Manulife Investment Management, February 2022. 

Manulife Funds are managed by Manulife Investment Management Limited (formerly named Manulife Asset Management Limited).

Manulife Investment Management is a trade name of The Manufacturers Life Insurance Company. The Manufacturers Life Insurance Company (Manulife) is the issuer the GIF Select insurance contract, and the Manulife Private Investment Pools—MPIP Segregated Pools (MPIP Segregated Pools) insurance contract and the guarantor of any guarantee provisions therein. Commissions, management fees, and expenses all may be associated with segregated fund investments. Please read the information folder contract and fund facts before investing.Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. 

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund and segregated fund investments. Please read the fund facts as well as the prospectus before investing in mutual funds and the information folder, contract and the fund facts before investing in segregated fund products. The indicated rates of return for Manulife U.S. Mid Cap Equity Fund 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.

© 2023 Copyright Manulife Investment Management. This media reflects the views of the sub-advisor of Manulife Investment Management Limited. These views are subject to change as market and other conditions warrant. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation. The commentary does not constitute an offer or an invitation by or on behalf of Manulife Investment Management to any person to buy or sell any security or investment product. This material should not be revised as a current or past recommendation or a solicitation of an offer to buy or sell investment products or to adopt any investment strategy. Manulife Investment Management is not responsible for any damages or losses arising from any use of this information.