U.S. Mid-Cap Resilience: Beyond the Headlines | EP 204
Art of Boring
U.S. mid-cap equities are often overlooked, but beneath the headlines of consumer weakness and market volatility, there’s a more nuanced story. Portfolio manager Jeff Mo shares a bottom-up perspective on resilient—though bifurcated—consumer spending, margin surprises, and a capital expenditure boom that extends beyond AI. The discussion explores how company fundamentals, competitive advantages, and valuation opportunities are shaping portfolio decisions, with insights into sectors like defense and industrials. Jeff also addresses the impact of macro trends on stock selection, the...
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Credit Markets: Caution, Compression, and Opportunity | EP 203
Art of Boring
On this episode of The Art of Boring, Global Credit Portfolio Manager Brian Carney unpacks what he believes are some of the most pressing issues in credit markets today. He explores whether recent private market bankruptcies signal deeper systemic concerns, how to position for sovereign bond issuer risk in a sticky inflation world, and the impact of the AI-driven debt wave on credit spreads. He also discusses regulatory rollbacks in the lending markets, credit risk premium mispricings, and concrete portfolio actions for late cycle markets. Key Highlights Recent private market...
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International Equity: AI Enablers, Competitive Strength, Portfolio Resilience | EP 202
Art of Boring
In this episode, portfolio manager Peter Lampert discusses the evolving landscape of international equities, with a special focus on the portfolio’s exposure to AI enablers—companies powering the semiconductor supply chain, from power supply units to memory makers. Lampert explains the importance of distinguishing between firms merely riding the AI investment wave and those whose competitive positions are fundamentally strengthening as a result. The conversation also explores attractive valuations outside the U.S., the growing role of Japanese companies amid governance reforms and IT...
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Global Equity Update: Collaboration, Diversification, and Staying in the Middle of the Net | EP 201
Art of Boring
Paul Moroz returns to share an update on our global equity strategy. We dig into what's changed since Paul resumed the lead portfolio manager role, how the team's collaboration has evolved, and why a more diversified and resilient portfolio is the result. Listen for Paul's take on why optionality and humility matter more than ever. Key highlights: Enhanced team collaboration through structural changes leading to better cross-team idea generation Improved portfolio diversification with holdings expanding to over 70 securities: reduction of consumer staples and discretionary...
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Quarterly Update | Q3 2025 | EP 200
Art of Boring
In this episode, we sat down with our Director of Research, Vijay Viswanathan, and Institutional Portfolio Manager, Kevin Minas, to talk through their observations this past quarter. We talk macro, micro, and everything in between, touching on changing market dynamics, central bank policy, how the portfolios are doing in this environment, and, finally, how we're positioning ourselves as we move forward. Key highlights: Three major macro themes dominated the quarter—trade policy tensions (though somewhat cooling), continued fiscal stimulus despite near-capacity economies, and AI-driven...
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The Canadian Bond Balancing Act: Trade Policy, Central Banks, and Economic Growth Impacts | EP 199
Art of Boring
In this episode, Fixed Income Portfolio Manager Crista Caughlin breaks down the macro forces driving bond markets in 2025. From trade uncertainty to central bank policy shifts, Crista explains how these themes are shaping Canadian fixed income performance and where she sees opportunities ahead. Key highlights: Trade policy uncertainty, fiscal stimulus, and tighter financial conditions have been key macroeconomic themes shaping global and Canadian bond markets, with U.S. trade actions and paused tariffs reducing some volatility but still weighing on Canadian growth and exports. Central...
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Patience and Progress: Navigating Japan’s Investment Terrain | EP 198
Art of Boring
Equity analyst Ian Turnbull shares insights from his latest trip to Japan, highlighting the unique aspects of Japanese society and corporate culture. From surplus and stakeholder capitalism to why you might get more than you pay for at a 7-Eleven convenience store, Ian reflects on the value of on-the-ground research, the trade-offs involved in capital allocation decisions, and pockets of real opportunity within Japan's evolving business landscape. Key Takeaways On-the-ground research in Japan reveals unique cultural and corporate dynamics that are difficult to capture from afar; direct...
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From Invisible Hand to Heavy Hand: Government Stakes, AI, and the Shifting CapEx Cycle in U.S. Markets | EP 197
Art of Boring
In this episode, U.S. Equity Portfolio Manager Grayson Witcher explores the evolving intersection of government policy, innovation, and capital expenditure (CapEx) in U.S. markets. The discussion unpacks how public spending and strategic government stakes—especially in sectors like semiconductors and defense—are reshaping the investment landscape. Grayson reflects on the unique blend of complacency and optimism in today’s markets, the uncertain returns on massive AI-driven CapEx, and the importance of management quality and adaptability in navigating this new era. Key highlights: U.S....
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Convergence and Complacency: Today's Credit Markets | EP 196
Art of Boring
Brian Carney, lead portfolio manager of the global credit opportunities strategy, explores the current credit market environment characterized by tight spreads and low defaults despite global uncertainties. He discusses the concept of "convergence and complacency"—where large pools of capital chase lower-quality borrowers while markets overlook serious warning signs including political pressure on central banks and hidden leverage. The conversation covers key crisis indicators, the weakening of credit covenants over the past decade, and the risks associated with private credit. He outlines...
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From Inventory to Innovation: Canadian Small Caps in Focus | EP 195
Art of Boring
In this episode equity analyst Dominic Drzazga discusses the current state of Canadian small caps, highlighting how geopolitical volatility creates both challenges and opportunities. The conversation covers recent portfolio additions including Sprott's precious metals trust and Kraken's underwater robotics technology, while reflecting on the bittersweet exit of long-time holding Andlauer. Dom also shares insights into how the research team is utilizing AI tools within their process. Key Takeaways: How the Canadian Small Cap team navigates market volatility and geopolitical...
info_outlineIn this episode, balanced portfolio manager, Steven Visscher, covers 2024 performance, asset allocation decisions, trade uncertainty, potential tariffs, and AI-driven productivity growth. Above all, he emphasizes long-term discipline, diversification, and avoiding emotional investment decisions in an unpredictable market environment.
Key Takeaways:
- The balanced portfolio saw strong absolute returns in 2024, with all asset classes performing well. Despite early economic concerns, inflation eased without a recession. Relative performance lagged benchmarks, causing some disappointment.
- The portfolio maintained a neutral 60% equity target in 2024, trimming gains to manage risk. A key structural shift was introducing a 3% allocation to U.S. mid-caps, enhancing diversification and improving valuation metrics by targeting medium-sized companies with long-term growth potential.
- Tariffs and policy shifts are monitored but not pre-positioned for in asset allocation due to their unpredictability. Instead, adjustments occur at the security level, reallocating capital to businesses more resilient to potential trade impacts while managing risk within the portfolio.
- The impact of trade and tariffs on global growth, currency volatility, and policy responses, with heightened uncertainty in 2025.
- A potential productivity boom is emerging, driven by political shifts favoring deregulation and the broader integration of AI beyond tech giants into operational efficiency.
- In the face of uncertainty, staying diversified and committed to a long-term strategy is key. Avoid emotional decisions, resist short-term speculation, and trust in a disciplined approach that has proven effective over time despite market fluctuations. Keep perspective and stay the course.
Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager
Guest: Steven Visscher, CFA, Mawer Portfolio Manager, Balanced
Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.
Visit Mawer at https://www.mawer.com.
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