Art of Boring

Listen as Mawer Investment Management Ltd. takes a deeper dive into the investment philosophy and strategies that have helped put the odds in their clients’ favour for over 50 years.

Quarterly Update | Q2 2026 | EP 221 07/15/2026

Quarterly Update | Q2 2026 | EP 221 Canadian equities gained in the second quarter of 2026 even as the economy tripped the technical definition of a recession and an oil shock sent crude toward $120 before it fell back. Institutional portfolio manager Kevin Minas and investment counsellor Stu Morrow review the quarter, from the gap between the Canadian market and the Canadian economy to the case for holding commodity exposure as geopolitical risk becomes a recurring feature rather than a one-off. They also discuss what a narrow, AI-led rally means for a diversified portfolio, record hyperscaler bond issuance in Canada, and how the Bank of Canada and the Fed held rates through a volatile stretch. The conversation closes on the quarter’s asset allocation: trimming equities back toward a neutral mix. Key Takeaways Canada met the technical definition of a recession, but the picture underneath was nuanced. GDP rebounded about 0.5% in April with most industries expanding, and per-capita output grew, closer to a stall-speed economy than a true contraction. The market and the economy can tell different stories. Financials and energy dominate the TSX while real estate and healthcare drive more of the real economy, which helps explain a roughly 7% TSX return alongside soft growth. Geopolitical risk increasingly looks like a recurring condition rather than a rare tail event. With oil spiking near $120 before falling back toward $70, the episode makes the case that commodity exposure can play a portfolio-construction role, chosen selectively where valuation and business quality support it, rather than serving as a call on prices. The Fed stood pat under new chair Kevin Warsh, and the Bank of Canada held across its April and June meetings after cutting substantially. In Canadian bonds, the team added duration as yields rose on inflation fears and removed it as they fell. On AI, the aim is not to guess whether the buildout keeps running, but to choose which risk to live with: too much concentration in the theme on one side, or falling behind by stepping away from it on the other. The team keeps the portfolio from leaning too far in either direction by weighing the companies spending on the buildout against the hyperscalers earning from it, since one company’s capital spending is another’s revenue. With memory stocks, the risk lies less in the multiple paid than in the cyclicality of the earnings. Credit was constructive, with record hyperscaler issuance in Canada including a $14 billion Amazon deal that Mawer participated in. With spreads tight, positioning stayed higher-quality and shorter-dated, and the balanced strategy trimmed equities back toward a neutral asset mix. Companies Mentioned: Amazon, Alphabet (Google), Meta, Microsoft, Oracle Host: Kevin Minas, CFA, CAIA, Mawer Institutional Portfolio Manager Guest: Stu Morrow, CFA, Mawer Investment Counsellor This episode is available for download anywhere you get your podcasts. 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 us at: https://www.youtube.com/@MawerInvestment https://www.mawer.com https://www.linkedin.com/company/mawer-investment-management/ #ArtOfBoring #MawerInvestmentManagement #MawerInvestment #Podcasts /episode/index/show/artofboring/id/42094085

Emerging Markets: Different Hats, Better Decisions, and Learning Faster | EP 220 07/09/2026

Emerging Markets: Different Hats, Better Decisions, and Learning Faster | EP 220 Investment teams increasingly build and rely on their own AI tools, but the payoff depends on how deliberately a team reinvests the time that AI frees up. Emerging markets portfolio manager Wen Quan Cheong walks through how his team puts believability-weighted decision making into daily practice, and where AI has genuinely enhanced the process. He closes with a tour of the emerging-market themes he is watching most closely, from reshoring and clean-room capacity to physical AI, low-earth-orbit satellites, and businesses winning simply by putting the customer first. Above all, he returns to the idea that AI’s real value lies in what a team chooses to do with the time it saves. Key Takeaways The team practices believability-weighted decision making: deferring more to teammates with deeper expertise on a given name, while still doing enough independent work to spot blind spots. One of AI’s biggest productivity gain so far for the team has been in forensic analysis, running deeper, more consistent checks across longer time periods than a human could alone, freeing up time for higher-value work like idea generation and company research. That saved time is meant to be reinvested, not banked: attending more conferences, joining more management calls, and turning insight generation itself into a discipline, described as “learning compression.” On reshoring, the team sees opportunity less in the household names and more in the infrastructure behind the shift: industrial park developers, port operators, and specialized clean-room engineering firms like Acter Group and CTP. Beyond AI and reshoring, the team explores other areas such as physical AI and low-earth-orbit satellites, as well as EM businesses, such as NU Holdings, Bajaj Finance, and HDFC Bank, that win by being more customer-obsessed than entrenched incumbents. Host: Rob Campbell, CFA Institutional Portfolio Manager Guest: Wen Quan Cheong, CFA Emerging Markets Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 us at: https://www.youtube.com/@MawerInvestment /episode/index/show/artofboring/id/42000920

Global Equity: The Odyssey, the AI Trade, and Concentration Risk | EP 219 07/02/2026

Global Equity: The Odyssey, the AI Trade, and Concentration Risk | EP 219 AI portfolio construction in global equity markets (memory semiconductors, mega IPOs, and how to manage concentration risk) is the focus of this conversation with Mawer’s global equity portfolio manager Paul Moroz. Drawing on Homer's Odyssey, he explains the discipline the team applies when navigating themes that are moving quickly: from trimming SK Hynix systematically as the position grew, to sizing up what a wave of large IPOs means for cost of capital, to the central trade-off between underexposure and overconcentration in the AI complex. He also puts numbers around the portfolio's AI positioning and explains how hyperscaler holdings act as a natural offset. The episode closes on humility as a process requirement, reflected in the portfolio's expansion to nearly 90 names with smaller, more incremental position sizing. Key Takeaways Memory semiconductors, including SK Hynix, illustrate the discipline required around fast-moving themes. The team has sold back nearly as much as it invested in SK Hynix while the position has grown to over 5% of the portfolio — a deliberate trimming driven by ongoing valuation modeling, not a change in the thesis. The risk is not the price-to-earnings multiple; it is the cyclicality of earnings, and the question of how long the current upcycle runs. Odysseus' response to the Sirens when he ties himself to the mast and has his crew row with beeswax in their ears is a useful analogy for process. Decisions made in advance of the moment of seduction, grounded in a systematic valuation framework, are more reliable than decisions made in the heat of a rapid move. Large IPOs entering markets signal a more capital-intensive economic period and raise real questions about where the capital comes from. Companies already in the S&P 500 benefit from a structural cost-of-capital advantage over those outside it, and the team watches for what needs to be sold as large new issuers absorb liquidity. A period of multiple compression, while uncomfortable for near-term statements, improves long-term reinvestment returns. The Scylla-versus-Charybdis choice (the monster on one side, the whirlpool on the other) maps directly onto the AI portfolio construction problem. The team's AI hardware exposure sits at approximately 22.7% of the portfolio; a 50% drawdown in that sleeve would represent roughly an 11-12% hit to the overall portfolio. An offsetting 15.5% is held in hyperscalers (Meta, Microsoft, Amazon) whose capital expenditure is the revenue of the hardware side, producing a natural hedge that brings net directional AI exposure to around 7-8%. The team's response to the Cyclops story (Odysseus boasting after his victory, which brought years of suffering from Poseidon) is portfolio humility expressed through construction. The global equity portfolio now holds just under 90 names, with positions sized smaller and traded in smaller increments to reduce the cost of being wrong and to manage in a high-volatility environment. Some holdings that look nothing like AI businesses have begun moving with AI sentiment. The team treats these correlation shifts as arbitrage opportunities: when something is priced as an AI stock but carries different underlying risk, there may be a better entry or exit available elsewhere in the complex. 0:00 - Introduction: Homer's Odyssey and the AI Trade 1:39 - The Sirens: Memory Stocks, SK Hynix, and Valuation Discipline 7:54 - Managing a Position That Has Grown Beyond Its Cost Base 10:30 - Mega IPOs, Cost of Capital, and Index Inclusion Advantage 15:49 - Scylla vs. Charybdis: Choosing Your Risk in AI 17:58 - AI Portfolio Construction: Numbers, Offsets, and Net Exposure 23:11 - Correlation Creep: When Non-AI Stocks Start Acting Like AI 24:42 - The Cyclops Story: Humility, Diversification, and Process 26:53 - Closing: Managing Money Across Generations 27:15 - Outro and Subscribe Host: Rob Campbell, CFA, Institutional Portfolio Manager Guest: Paul Moroz, CFA, Global Equity Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 us at: https://www.youtube.com/@MawerInvestment /episode/index/show/artofboring/id/41911735

Looking Under the Hood: Canadian Equity Concentration and Diversification | EP 218 06/18/2026

Looking Under the Hood: Canadian Equity Concentration and Diversification | EP 218 Canada’s stock market has set repeated record highs in 2026, even as the domestic economy feels soft. Canadian equity portfolio manager Mark Rutherford explains the gap between the two, and why a large weight in financials can represent more diversification rather than less. He walks through how the team rotated within the sector as the banks re-rated, and the discipline behind trimming a gold position that had run. As indexes themselves have grown more concentrated, the conversation lands on a simple idea: knowing what you own matters more than ever. Key takeaways • The Canadian market and the Canadian economy can tell very different stories. Commodities and financials drive a large share of corporate earnings even though relatively few people work in those sectors, which helps explain record markets alongside near-zero real growth. • A large weight in financials is not a single bet. Beneath the label sit banks, life, property and casualty insurers, alternative asset managers, and exchanges, each with its own return drivers and correlations. • Position weights reflect what has worked, but they are not fixed. As the banks re-rated from roughly 10 to 12 times earnings toward 15 to 16 times, the team recycled capital into property and casualty insurers and alternative asset managers offering more attractive returns. • Gold earns its place through company economics, not a price forecast. Royalty businesses and selected miners were added for their free cash flow and differentiated correlation, then trimmed as the combined weight grew and the rate and inflation backdrop shifted. • Trimming winners is as much a part of the discipline as finding them. Allowing any single position or exposure to grow unchecked introduces risk that has nothing to do with the original thesis. • Indexes have become increasingly concentrated vehicles. Knowing what you own, and holding exposures by deliberate choice rather than by default, can be key to real diversification. Host: Andrew Johnson, CFA Institutional Portfolio Manager Guest: Mark Rutherford, CFA Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 us at: #ArtOfBoring #MawerInvestmentManagement #MawerInvestment #Podcasts /episode/index/show/artofboring/id/41682445

Balanced Portfolios: A Market Tug of War and the Discipline to Stay Neutral | EP 217 06/10/2026

Balanced Portfolios: A Market Tug of War and the Discipline to Stay Neutral | EP 217 In this episode, portfolio manager Steven Visscher covers how Mawer's balanced portfolios navigated 2025 and how they are positioned in 2026. With a war-driven energy shock on one side and an AI investment boom on the other, the market is pulling in two directions at once. Steven walks through what that means for asset mix, where the team is seeing signs of investor complacency, and why cracks in private credit could soon create a meaningful opportunity. Key Takeaways: Two forces are competing for market direction in 2026: a war-driven energy shock from the conflict in Iran pushing inflation and rates higher, and a broadening AI investment boom driving strong earnings momentum across the global economy. AI capital investment has expanded well beyond the hyperscalers to include memory, storage, cooling, data centres, and electrical grid infrastructure, with more than 80% of S&P 500 Q1 reporters beating earnings expectations. Current positioning remains close to neutral at 60% equity, with a continued underweight to U.S. equities in favour of international and emerging markets. Valuations, interest rates, and investor psychology all support staying close to that neutral stance. Cracks in private credit are emerging through rising defaults and client redemption gating. The team is building global credit exposure gradually and is prepared to deploy capital more aggressively when a dislocation occurs. In an environment of competing forces and mixed signals, staying diversified, maintaining valuation discipline, and building portfolios that can withstand multiple scenarios remains the priority. Host: Andrew Johnson, CFA Institutional Portfolio Manager Guest: Steven Visscher, CFA Investment Counsellor This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/41542615

U.S. Mid-Cap: The Physical Economy Comeback, Capital Intensity, and Portfolio Positioning | EP 216 05/14/2026

U.S. Mid-Cap: The Physical Economy Comeback, Capital Intensity, and Portfolio Positioning | EP 216 In this episode, Jeff Mo, U.S. mid-cap portfolio manager, explores a fundamental shift in how economies may grow over the next decade. He makes the case that after 25 years of intangible, internet-driven expansion, growth may increasingly depend on building physical things again: data centers, electrical infrastructure, factories, defense systems, satellites. Jeff walks through the forces driving this transition, from AI's voracious appetite for capital to geopolitical tensions reshaping supply chains and defense spending. The conversation examines how these macro themes connect to bottom-up stock selection, where the U.S. mid-cap team is finding opportunities today, and why maintaining inherent contradictions in the portfolio remains essential even as thematic investing dominates market behavior. • Why producing one unit of GDP today requires about a third as much oil as in the 1970s, yet capital expenditure per unit of GDP growth may be rising as the economy shifts from intangible services back toward physical infrastructure and manufacturing. • How AI data center buildouts, reshoring of manufacturing, rising defense budgets, and the expanding space economy are all driving higher demand for physical capital, commodities, and industrial capacity after a decade of underinvestment. • How the hyperscalers (Google, Amazon, Microsoft, Meta) are moving from massive net cash positions to net debt as they fund AI infrastructure, tightening capital availability for the rest of the economy and potentially raising interest rates and dampening consumer spending. • Where the U.S. mid-cap team is finding opportunities aligned with these themes, from companies like Northrop Grumman, SanDisk, and OSI Systems, while maintaining portfolio balance through inherent contradictions. • Why humility matters most when contemplating big-picture themes: the goal isn't predicting the future but building a diversified portfolio of wealth-creating companies that can withstand multiple scenarios. [00:00] Introduction: From Intangible to Physical Economy [00:50] Opening Discussion with Jeff Moe [01:42] Oil Efficiency vs. Rising CapEx Requirements [03:39] Economic Growth: Labor, Capital, and Productivity [04:11] Infrastructure Investment and Reshoring Trends [06:52] Defense Spending and Capital Intensity [07:08] The Space Economy: Satellites and Connectivity [11:00] Memory Market Dynamics and Contract Changes [12:22] Cyclicality in a Capital-Intensive Economy [15:04] Consumption vs. Investment: Portfolio Implications [17:44] Connecting Themes to Bottom-Up Research [18:44] Idea Generation and Stock Selection Process [21:32] Winners and Losers: The Bits to Atoms Trade [22:00] Portfolio Construction: Inherent Contradictions [25:21] Where the Theme Might Be Wrong [26:09] Long-Term Wealth Creation and Economic Optimism [28:18] Closing and Subscription Information Host: Rob Campbell, CFA Institutional Portfolio Manager Guest: Jeff Mo, CFA Portfolio Manager This episode is available for download anywhere you get your podcasts. Visit us at: 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. #ArtOfBoring #MawerInvestmentManagement #MawerInvestment #Podcasts #capitalmarkets #geopoliticalinvesting #commodityMarkets #capitalexpenditure #physicalEconomy #GDPGrowth /episode/index/show/artofboring/id/41296005

International Equity: Finding Quality Opportunities in Today’s Market | EP.215 04/30/2026

International Equity: Finding Quality Opportunities in Today’s Market | EP.215 In this episode, Peter Lampert, international equity portfolio manager, examines the Middle East conflict and its implications for global markets. He walks through the portfolio's diversification strategy, explains the team's nearly 40-year history with Shell, and explores how a changing market backdrop has challenged traditional definitions of quality and why forward-looking analysis may matter more than historical patterns. How the Middle East conflict and the Strait of Hormuz blockade are affecting oil and LNG flows, and why equity markets have largely looked through the disruption so far. The portfolio's diversification strategy, balancing energy importers like TSMC with energy producers like Shell to create resilience across different scenarios. Why the team exited Shell in 2015 during the commodity boom, and what changed to make it attractive again when they reinitiated the position in 2022. How the traditional quality factor has underperformed over the last five years as interest rates and commodity prices rose, rotating investor interest away from high-quality growth companies. Why forward-looking analysis is critical—finding wealth-creating companies that don't fit the conventional quality mold, like European defense companies and Korean memory producers benefiting from AI demand. 0:00 Introduction & Episode Overview 0:27 Disclaimer 0:44 Middle East Conflict and Market Implications 1:13 Strait of Hormuz Blockade and Energy Disruption 2:10 Key Risks: Oil, LNG, and Infrastructure Damage 3:30 Portfolio Positioning and Energy Exposure 4:39 Case Study: How TSMC Manages Energy Risk 6:42 Portfolio Diversification Strategy 7:27 Balancing Energy Importers and Producers 8:37 Shell: A 40-Year Investment History 10:35 Quality Factor Underperformance 11:00 Redefining Quality in Changing Markets 14:41 Final Thoughts: Long-Term Perspective 15:19 Closing Remarks and Subscribe Host Info: Rob Campbell, CFA Institutional Portfolio Manager Peter Lampert, CFA Portfolio Manager Visit us at: #ArtOfBoring #MawerInvestmentManagement #Podcasts #BeBoringMakeMoney /episode/index/show/artofboring/id/41054105

Global Credit: Energy Shocks, AI Borrowing, and Signs of Stress | EP 214 04/23/2026

Global Credit: Energy Shocks, AI Borrowing, and Signs of Stress | EP 214 In this episode, Brian Carney, lead portfolio manager of the Mawer Global Credit Opportunities Strategy, examines a fixed income backdrop reshaped by geopolitical escalation, an energy shock, and sharply changing interest-rate expectations. He explains why higher benchmark yields and modestly wider spreads still leave many parts of credit looking expensive, where Mawer is finding more selective value through bottom-up research, and why the strategy remains tilted toward shorter-duration, higher-quality credit. The conversation also explores AI-related bond issuance from hyperscalers, signs of strain in leveraged finance and private credit, and what a more fragile lending environment could mean for investors. Highlights: How geopolitical escalation and higher oil prices have pushed inflation concerns back to the forefront and reshaped rate expectations in major markets. Why higher benchmark yields have not been enough to make much of longer-duration or lower-quality credit compelling today. A look at two selective opportunities: CoreWeave, tied to AI infrastructure, and a fallen angel with potential catalysts and downside protection. How AI is being used inside Mawer’s research process to sort through a vast global credit universe and surface new ideas. Why massive borrowing by hyperscalers to fund AI CapEx could pressure investment-grade spreads over the next 12 to 18 months. Early signs of stress in leveraged loans and private credit, and why Brian sees growing evidence of “decay” in parts of the lending market. Chapters: [0:00] Introduction [0:32] Disclaimer [0:49] Welcome and Guest Introduction [0:54] Macro Environment Shifts: Geopolitical Tensions and Energy Shocks [1:44] Impact on Global Credit Markets and Central Bank Expectations [4:32] Where to Find Value in Credit Markets Today [6:47] Portfolio Positioning: Defensive Stance Explained [7:18] Credit Opportunity #1: CoreWeave and the AI Revolution [8:35] Credit Opportunity #2: A Fallen Angel Opportunity [9:49] Using AI Technology in Credit Research [10:59] Hyperscaler Bond Issuance: The New Market Dynamic [13:47] Impact of Tech Giants Crowding the Investment Grade Market [14:56] Private Credit Risks and Bank Syndication Challenges [16:53] Signs of Decay in Private Credit Markets [20:42] Closing Thoughts: Positioning for Opportunity [21:16] Outro Host: Kevin Minas, CFA Institutional Portfolio Manager Guest: Brian Carney, CFA Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/40980630

Quarterly Update | Q1 2026 | EP 213 04/15/2026

Quarterly Update | Q1 2026 | EP 213 In this episode, Institutional Portfolio Manager Kevin Minas and Investment Counsellor Stu Morrow examine the forces shaping markets in the first quarter of 2026. From the escalating conflict in the Middle East and its impact on oil, inflation, and growth to the broadening AI disruption across software and asset-light business models, they explore how investors can stay thoughtful in an increasingly complex environment. The conversation covers stagflation risks, bond market dynamics, the role of gold as a hedge, and the portfolio adjustments being made as quality businesses face new tests of durability in a changing world order. Key Highlights: • Middle East conflict and stagflation risks: The escalation in Iran has dominated Q1, with the Strait of Hormuz carrying a fifth of daily global oil and gas consumption. Beyond energy, the conflict threatens fertilizer supplies, semiconductor inputs, and global growth—raising the specter of stagflation as slowing growth meets rising inflation, limiting central banks' ability to cut rates. • Equity market performance beneath the surface: While headline quarterly returns appeared calm, significant sector and regional divergence emerged. Energy outperformed (benefiting Canada and developed international markets), while U.S. mega-cap tech and software faced scrutiny over AI CapEx spending and disruption risks. • Bond markets challenged in inflationary environment: Central banks stayed on the sidelines in Q1, balancing inflation concerns against growth risks. Yields rose across the curve, with bonds selling off alongside equities and challenging their traditional safe-haven role. Diversification within fixed income—including global credit with higher yield and lower duration—remains critical for navigating different market regimes. • AI disruption broadening beyond software: The AI "loser" narrative expanded from software providers to consultants, insurance brokers, wealth managers, and other asset-light business models. Markets are pricing in disintermediation risk even where fundamentals haven't deteriorated, with stocks treated as "guilty until proven innocent" based on concerns about future cash flows. • Discipline through uncertainty: Despite multiple potential outcomes from geopolitical and market disruptions, Mawer's investment process remains focused on competitive advantages, durable returns on capital, and disciplined management. The playbook has been updated through broad diversification and careful position sizing—emphasizing that a quality approach carries investors through periods of heightened complexity. Host: Kevin Minas, CFA, MBA, CAIA Institutional Portfolio Manager Guest: Stu Morrow, CFA Investment Counsellor This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/40879540

Global Equity: When the Voting Machine Overwhelms the Weighing Machine | EP 212 03/25/2026

Global Equity: When the Voting Machine Overwhelms the Weighing Machine | EP 212 In this episode, global equity portfolio manager Paul Moroz examines how investors can navigate a market increasingly shaped by conflict, shifting narratives, and wider ranges of possible outcomes. He begins with the recent escalation in the Middle East and the market’s relatively measured response, then considers the second-order effects that can matter just as much as the initial shock. The conversation also explores how recent AI-driven swings in software have revealed a market increasingly influenced by thematic flows and short-term sentiment, rather than the more measured process of weighing business fundamentals. Throughout, Paul returns to a central idea: good portfolio management is rarely about one big call, but about making many small, disciplined decisions within a diversified portfolio. Highlights: Why the market’s reaction to the recent escalation in the Middle East has remained relatively measured so far John Deere as a second-order effects case study: how rising oil and fertilizer costs can affect customer economics, margins, and capital allocation Thematic trading and the gap between price and intrinsic value: the Centrini AI thought piece in February triggered a broad software sell-off, showing how quickly disruption narratives—not fundamentals—can dominate market pricing Capital intensity isn't the enemy—poor returns are. Microsoft and Amazon are pouring billions into AI infrastructure, but a key question is whether bundling compute with distribution advantages will deliver attractive returns on that capital. Why Paul believes the market’s “voting machine” is increasingly overwhelming the “weighing machine.” Markets vote on sentiment every day but building real businesses (and real wealth) takes years of focusing on fundamentals while tuning out the noise. Host: Rob Campbell, CFA Institutional Portfolio Manager Guest: Paul Moroz, CFA Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/40610565

U.S. Equities: Software, Security, and Shifting Regimes | EP 211 02/19/2026

U.S. Equities: Software, Security, and Shifting Regimes | EP 211 In this episode, U.S. equity portfolio manager Grayson Witcher explores what it means to invest exclusively in American businesses at a time when the U.S. is becoming more short‑term, more transactional, and more central to global change. He contrasts a shifting U.S. “extraction” mindset with China’s longer-term industrial strategy and considers how that dynamic is reshaping globalization into a more regional, security-conscious world. The conversation then turns to portfolio implications: why the team has been reducing exposure to mature, highly penetrated software names facing intensifying competition and AI disruption, how the market’s treatment of AI has evolved from hype to a more “show me the returns” phase, and where they see resilient opportunities. Highlights: How a more short-term, “extraction”-oriented U.S. policy stance—via tariffs, reshoring, and industrial policy—is altering incentives for companies and trading partners. The evolving nature of software moats in an AI world, including higher competitive intensity, mature end markets, and why some long-term winners’ valuations may no longer be justified. The market’s transition from rewarding any AI narrative to demanding clearer evidence of economic returns on massive cloud and data-center capital spending. A deliberate tilt toward businesses positioned for a more regionalized, security-focused world order, including nuclear, defense, and automation suppliers with multiple ways to win. The importance of remaining bottom-up and valuation-driven while acknowledging regime change—using portfolio construction to manage uncertainty rather than making binary macro bets. Host: Andrew Johnson, CFA Institutional Portfolio Manager Guest: Grayson Witcher, CFA, AB Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/40144415

Emerging Markets: AI "Picks and Shovels," ROIC, and the Great Supply Chain Reshuffle | EP 210 02/12/2026

Emerging Markets: AI "Picks and Shovels," ROIC, and the Great Supply Chain Reshuffle | EP 210 Wen Quan Cheong, co-manager of Mawer’s emerging markets equity strategy, outlines four major themes shaping the opportunity set today. First, the “picks and shovels” of AI: upstream enablers such as advanced chip manufacturers, memory makers, and specialized chip-testing firms that are benefiting from structural bottlenecks in the AI supply chain. Second, companies that are actually converting AI investment into higher returns on capital. Third, the “Great Supply Chain Reshuffle,” where national security concerns, tariffs, and “China plus one” strategies are driving a reconfiguration of strategic manufacturing infrastructure across Asia and the U.S. And finally, a broader universe of less obvious EM stories that illustrate how opportunity is evolving across regions and sectors as these forces play out. Highlights: Why upstream AI enablers are seeing such powerful earnings leverage: how capacity cuts, equipment bottlenecks, and surging demand for DRAM, HBM, and NAND have flipped the memory market from oversupplied to structurally tight. What it takes for companies to truly convert AI investment into sustainable returns on invested capital, and why early, well-run adopters may enjoy a multi year edge. How shifting geopolitics, U.S. tariffs, and national security concerns are driving a “Great Supply Chain Reshuffle,” from TSMC-linked clean room specialists like Actor Group supporting new fabs to Chinese manufacturers using their domestic scale and integration to expand overseas. Why emerging markets are more than just China and tech, with examples ranging from Saudi insurance aggregation and Vietnamese pharmacies to ship maintenance businesses with recurring revenues. Host: Rob Campbell, CFA Institutional Portfolio Manager Guest: Wen Quan Cheong, CFA Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/40066740

Accounting Shenanigans and the Pursuit of Economic Truth | EP 209 02/10/2026

Accounting Shenanigans and the Pursuit of Economic Truth | EP 209 Equity analyst Alex Romaines joins the podcast to unpack “accounting shenanigans” and why getting from reported numbers to the economic truth of a business is so critical for long-term investors. Drawing on forensic accounting frameworks, he explains how a deep grounding in accounting shapes the way he interrogates financial statements—moving beyond compliance with standards to questions of judgment, incentives, and sustainability. The conversation discusses the issue of stock-based compensation: why adding it back to “adjusted” earnings can be misleading, how dilution and buybacks can quietly transfer wealth from outside shareholders to insiders, and practical ways investors can incorporate these real costs into valuation. Alex then highlights other red flags on his radar today—from lengthening depreciation schedules on fast-changing tech hardware, to vendor financing that may inflate revenues, to the quiet return of special purpose vehicles. Highlights: How a forensic accounting mindset helps investors move from reported numbers to the real economics of a business—and why that gap matters. Stock-based compensation as a quiet wealth transfer mechanism, and practical ways long-term investors can account for its true cost. The growing role of judgment in modern financial reporting, from “adjusted” earnings to the incentives shaping management’s disclosures. Other accounting signals Alex is watching now, including depreciation assumptions, vendor financing, and the renewed use of special purpose vehicles. Host: Rob Campbell, CFA Institutional Portfolio Manager Guest: Alex Romaines, CFA Equity Analyst This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/40048810

Nostalgia Is Not a Strategy: Adapting the Investing Playbook to a Changing World Order | EP208 02/03/2026

Nostalgia Is Not a Strategy: Adapting the Investing Playbook to a Changing World Order | EP208 In a world where geopolitical tension, economic inequality, and technological change are all accelerating, what does it mean to be a long‑term, bottom‑up investor? In this episode, portfolio manager Paul Moroz explores how today’s regime differs from the post‑crisis “Pax Americana” era. Drawing on history—from Shakespeare to ancient debt jubilees—he connects recurring human patterns of fear, greed, and class conflicts to today’s tensions. The discussion then turns to specifics around how investors must adapt in a more volatile world, and how AI is emerging both as a powerful market force and as a tool that is reshaping the day‑to‑day work of investors. Highlights include: How recurring historical patterns—from Shakespeare’s Coriolanus to ancient debt jubilees—shed light on today’s tensions around inequality and financial repression How portfolio construction may need to adapt: broader diversification, smaller positions, heavy emphasis on risk management Why bottom‑up analysis still matters as much as ever, even when top‑down forces feel louder How AI’s ability to let fewer people do more work could widen existing wealth divides, reshape career paths in knowledge‑based fields, and force organizations to rethink how they hire, train, and promote talent Why the edge in investing is shifting from gathering information to asking better questions and exercising sound human judgment Host: Rob Campbell, CFA Institutional Portfolio Manager Guest: Paul Moroz, CFA Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/39972030

Data Moats in the Age of AI | EP 207 01/28/2026

Data Moats in the Age of AI | EP 207 In this episode, we sit down with equity analyst Joshua Samuel to explore how artificial intelligence and large language models (LLMs) are fundamentally reshaping the nature of competitive advantages tied to data. Josh presents a comprehensive framework for evaluating data moats in the modern era, breaking down four critical categories that can separate lasting advantages from temporary ones. The conversation examines how companies across sectors—from FinTech to defense—are leveraging data to drive better decision making and outcomes. He also addresses the flip side: where traditional data advantages are being eroded by AI's ability to synthesize information, and why trust and execution remain crucial even amongst data advantages. Key Highlights: AI systems now capture and analyze subconscious behavior patterns through clicks and scrolls, potentially knowing users better than they know themselves Traditional data moats in legal, medical, and scientific databases face existential threats as LLMs trained on humanity's collective knowledge can synthesize equivalent insights General-purpose AI can outperform specialized systems by piecing together disparate information, even without access to proprietary datasets In high-stakes B2B environments, established relationships and trust remain powerful defenses against AI disruption, especially where career risk is involved Examines Tencent as a rare example of a company that combines all four dimensions of a strong data moat—proprietary, continuously refreshed, high‑dimensional, and closed‑loop data—spanning social, payments, commerce, and mini‑program ecosystems. Host: Rob Campbell, CFA Portfolio Manager Guest: Joshua Samuel, CFA Equity Analyst This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/39903570

Quarterly Update | Q4 2025 | EP 206 01/15/2026

Quarterly Update | Q4 2025 | EP 206 In this episode, Investment Counsellor Stu Morrow and Institutional Portfolio Manager Kevin Minas examine the forces reshaping markets in the fourth quarter. From central banks navigating the shift toward policy normalization to equity leadership rotating beyond mega-cap AI stocks, they explore how a resilient but slowing economy is influencing investment decisions. The conversation covers evolving credit conditions, geopolitical developments including recent events in Venezuela, and the portfolio adjustments being made as valuations rise and late-cycle dynamics emerge. Key highlights: Global growth is moderating, labour markets are softening, and inflation is easing, giving central banks room to shift from restrictive policy toward gradual normalization. Steeper yield curves and very tight credit spreads leave bond investors with decent starting yields but limited compensation for taking extra credit or liquidity risk—arguing against “reaching for yield.” Equity leadership is broadening beyond a narrow group of U.S. megacap AI winners, with stronger participation from cyclicals, financials, and international markets—a healthier backdrop for diversified, active investors. The AI boom is increasingly about infrastructure—semiconductors, memory, power, and data centres—raising questions about sustainability, profitability, and bubblelike dynamics in parts of the ecosystem. Geopolitical shifts, including U.S. intervention in Venezuela and a move toward more transactional “spheres of influence,” reinforce the case for disciplined, diversified, valuation driven positioning and only incremental asset mix adjustments. Host: Kevin Minas, CFA, MBA, CAIA Institutional Portfolio Manager Guest: Stu Morrow, CFA Investment Counsellor This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/39735570

Banks, Barrels and Gold: Canadian Equity in a Risky World | EP 205 01/12/2026

Banks, Barrels and Gold: Canadian Equity in a Risky World | EP 205 From lingering “Liberation Day” tariff fears and a shift toward a more pro-growth federal policy stance to changing leadership within key sectors, Canadian equity portfolio manager Mark Rutherford unpacks what moved markets for Canadian equities in 2025. He explains how this backdrop influenced recent positioning in the Canadian equity portfolio, including adjustments within energy, banks, and gold. The conversation then turns to the U.S. intervention in Venezuela and its implications for Canadian oil: how potential increases in Venezuelan heavy crude could affect Western Canadian differentials, why integrated producers may be relatively better positioned, and the role of TMX export capacity in supporting basin pricing. Stepping back, Mark explores the move toward a more transactional, spheres of influence world and how the team is incorporating this evolving U.S.–Canada dynamic into portfolio construction through diversified, incremental shifts rather than binary macro bets. Key Highlights: • In 2025, Canadian equity returns were shaped less by the initial “Liberation Day” tariff shock and more by how markets digested that risk over time alongside a domestic pivot toward pro-growth policy—forces that helped support energy, commodities, and especially the banks. • Within financials, Canadian banks—TD in particular—saw improving fundamentals as credit conditions held up, wealth and capital markets businesses performed well, and a more growth oriented regulatory stance supported competitiveness. • In energy, the team tilted toward integrated producers like Suncor and trimmed more differential sensitive exposure such as Canadian Natural, balancing the long-term risk of higher Venezuelan heavy crude supply against the offsetting support of TMX export capacity. • The team selectively added to gold producers, seeing attractive unit economics and reasonable valuations, and viewing gold as a useful diversifier in a world of geopolitical tension, dedollarization talk, and looser fiscal discipline. • Stepping back, Mark frames Venezuela and trade policy within a broader shift toward transactional spheres of influence and “mercantilist” great power politics—arguing for diversified, incremental positioning changes rather than binary macro bets or anchoring portfolios to any single geopolitical outcome. Host: Andrew Johnson, CFA Portfolio Manager Guest: Mark Rutherford, CFA Equity Analyst This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/39680025

U.S. Mid-Cap Resilience: Beyond the Headlines | EP 204 12/10/2025

U.S. Mid-Cap Resilience: Beyond the Headlines | EP 204 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 evolving CapEx landscape, and why mid-cap valuations may offer compelling long-term potential. KEY HIGHLIGHTS: U.S. consumer spending remains resilient overall, though lower-income segments are showing more strain and deal-seeking behavior. Companies with strong competitive advantages continue to demonstrate pricing power and healthy margins, despite inflation and shifting cost pressures. The current CapEx boom is not limited to AI—reshoring, supply chain resilience, and manufacturing investments are driving activity across sectors. Market volatility in the mid-cap space has led to outsized stock reactions, creating opportunities for long-term, bottom-up investors. Defense and industrial companies, such as CACI International and ITT, are benefiting from innovation, management execution, and evolving end markets. Mid-cap valuations are reasonable relative to large-caps, with select areas appearing overlooked and offering attractive long-term return potential. Host: Rob Campbell, CFA Portfolio Manager Guest: Jeff Mo, CFA Portfolio Manager 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. Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/39277760

Credit Markets: Caution, Compression, and Opportunity | EP 203 11/26/2025

Credit Markets: Caution, Compression, and Opportunity | EP 203 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 bankruptcies may signal broader, systemic credit market weakness rather than isolated events, with deteriorating lending standards and rising delinquencies warranting caution. Growing sovereign debt and persistent inflation are challenging the traditional “safe haven” status of U.S. Treasuries, prompting a preference for shorter duration and higher-quality credit exposure. The surge in AI-driven capital expenditures is fueling a wave of debt issuance by large tech companies, likely putting upward pressure on credit spreads and shifting market dynamics in favour of lenders over time. Regulatory rollbacks in the U.S. are reducing transparency and increasing risk-taking, especially in unregulated and private markets, raising concerns about financial stability and corporate behaviour. Credit risk premiums remain compressed, with investors often inadequately compensated for lower-quality credit risk; opportunities are limited, and selectivity is critical. Defensive positioning—focusing on capital preservation, short duration, and high-quality issuers—remains key, with readiness to deploy capital quickly when market dislocations create attractive opportunities. Host: Kevin Minas, CFA, Institutional Portfolio Manager Guest: Brian Carney, CFA, Portfolio Manager This episode is available for download anywhere you get your podcasts. 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. Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/39089900

International Equity: AI Enablers, Competitive Strength, Portfolio Resilience | EP 202 11/05/2025

International Equity: AI Enablers, Competitive Strength, Portfolio Resilience | EP 202 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 modernization, and the need for careful risk management as AI adoption and global trends unfold. Lampert emphasizes a diversified, long-term approach—balancing AI-driven growth, sector-specific opportunities in Europe and Asia, and resilience against macro risks—to position the portfolio for sustainable value creation in a rapidly changing world. Key highlights: How international equities are benefiting from AI infrastructure growth, focusing on companies enabling the semiconductor supply chain (e.g., power supply units, memory makers). The importance of distinguishing between firms temporarily boosted by AI demand and those with strengthening long-term competitive advantages. Attractive valuations and growth opportunities for AI enablers outside the U.S., particularly in Europe, Taiwan, and Korea. An examination of portfolio diversification, including exposure to Japanese companies amid governance reforms and IT modernization. Risk management in balancing AI exposure with other portfolio drivers and the need for resilience as adoption and global trends evolve. The ongoing debate around incumbent software companies’ ability to adapt to AI, emphasizing a case-by-case, long-term approach. Host: Rob Campbell, CFA – Institutional Portfolio Manager Guest: Peter Lampert, CFA – Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/38911790

Global Equity Update: Collaboration, Diversification, and Staying in the Middle of the Net | EP 201 10/29/2025

Global Equity Update: Collaboration, Diversification, and Staying in the Middle of the Net | EP 201 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 overweights, while adding strategic small positions that provide optionality for rapid capital allocation as markets shift Fundamental momentum alignment improved by reducing problem positions and increasing strong earnings momentum names, resulting in better down capture characteristics during market declines Strategic AI complex exposure built through diversified Asian infrastructure plays in memory, power, data centers, and chip fabrication, targeting high market share businesses with better risk-adjusted returns Comprehensive IT sector review underway to identify opportunities in potentially mispriced software companies Portfolio repositioning complete with approximately 19% turnover executed to create a more balanced, diversified portfolio aligned with the platform's investment philosophy: designed for resilience across market regimes Host: Rob Campbell, CFA – Institutional Portfolio Manager Guest: Paul Moroz, CFA – Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/38809390

Quarterly Update | Q3 2025 | EP 200 10/10/2025

Quarterly Update | Q3 2025 | EP 200 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 infrastructure growth Central banks are balancing growth concerns and inflation risks, with both the Fed and Bank of Canada beginning easing cycles in September Equity markets showed a strong “risk-on” tone, hitting record highs, with AI and commodities (especially gold and copper) driving much of the growth and market attention. Fixed income returns were strong, led by central bank easing and tighter credit spreads; portfolios favored short-duration bonds and gradually reduced risk as valuations rose. Asset Mix shifts include trimming U.S. and Canadian large cap equities after strong absolute returns, increasing exposure to emerging markets and global credit, and shifting from cash to fixed income for better yield and resilience. The team remains committed to core investment principles while adapting portfolios for changing market dynamics Host: Andrew Johnson, CFA - Institutional Portfolio Manager Guests: Kevin Minas, CFA, MBA, CAIA - Institutional Portfolio Manager Vijay Viswanathan, CFA, MBA - Director of Research, Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/38541685

The Canadian Bond Balancing Act: Trade Policy, Central Banks, and Economic Growth Impacts | EP 199 10/06/2025

The Canadian Bond Balancing Act: Trade Policy, Central Banks, and Economic Growth Impacts | EP 199 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 banks, including the Bank of Canada and the U.S. Federal Reserve, have shifted from a wait-and-see approach to resuming rate cuts as growth slows and inflation pressures moderate, though questions about central bank independence and timing of policy moves remain. Canadian bond market performance has been driven by both falling interest rates—especially at the short end of the curve—and tightening credit spreads, with shorter maturities and lower-quality credits outperforming, while longer-dated bonds have lagged due to concerns about persistent inflation. The current strategy emphasizes a steepening yield curve, overweight positions in shorter-dated, higher-quality corporate bonds, and caution on longer maturities, reflecting expectations for continued central bank easing and ongoing risks from inflation and credit fundamentals. Despite recent headlines about rising bond-equity correlations and market risks, fixed income remains a valuable portfolio diversifier, offering higher yields than in recent years and providing a cushion against volatility and modest rate increases. Host: Kevin Minas, CFA– Institutional Portfolio Manager Guest: Christa Caughlin, CFA– Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/38457280

Patience and Progress: Navigating Japan’s Investment Terrain | EP 198 10/01/2025

Patience and Progress: Navigating Japan’s Investment Terrain | EP 198 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 engagement with people and companies provides deeper context for investment decisions. Japanese corporate culture emphasizes stakeholder capitalism, with surplus value often distributed to customers, employees, suppliers, and society—sometimes at the expense of shareholder returns; this results in high-quality service, strong employee loyalty, and long-term relationships. Balance sheets in Japan tend to be conservative, offering downside protection but limiting upside potential; recent years have seen gradual shifts toward greater efficiency and shareholder focus, though progress is uneven and culturally nuanced. Digitalization and technology adoption present significant opportunities, as Japan faces labor shortages and lags in some areas of tech implementation; companies enabling digital transformation may be well-positioned for growth. Corporate transformation is occurring slowly, with some firms like Hitachi making deliberate, long-term changes to focus on higher-return areas and divest less profitable segments; this reflects a broader trend of incremental governance and capital allocation improvements. Host: Rob Campbell, CFA– Institutional Portfolio Manager Guest: Ian Turnbull, CFA– Equity Analyst This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/38409940

From Invisible Hand to Heavy Hand: Government Stakes, AI, and the Shifting CapEx Cycle in U.S. Markets | EP 197 09/17/2025

From Invisible Hand to Heavy Hand: Government Stakes, AI, and the Shifting CapEx Cycle in U.S. Markets | EP 197 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. markets are experiencing a rare surge in capital spending, driven by AI, reshoring, defense, and infrastructure—marking a departure from decades of just-in-time, low-investment environments. The U.S. government’s direct stakes in companies like Intel signal a move toward more strategic, state-influenced capitalism, reminiscent of crisis or wartime interventions but now focused on critical industries. Despite significant investment, most companies have yet to realize meaningful returns from generative AI. The market’s optimism may be outpacing actual productivity gains, raising questions about long-term ROI. The team seeks diversified exposure to transformative themes (e.g., AI, automation) without betting on single winners, emphasizing companies with adaptable management and clear execution plans. Rising CapEx, persistent inflation drivers, and government intervention create both risks and opportunities. The focus remains on businesses resilient to macro shifts and capable of thriving across scenarios. This episode is available for download anywhere you get your podcasts. 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. Host: Rob Campbell, CFA– Institutional Portfolio Manager Guest: Grayson Witcher, CFA, AB – Portfolio Manager Visit Mawer at https://www.mawer.com. Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/38243595

Convergence and Complacency: Today's Credit Markets | EP 196 08/27/2025

Convergence and Complacency: Today's Credit Markets | EP 196 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 the portfolio’s defensive positioning with high-quality, short-duration securities and highlights Saturn Oil and Gas as an example of selective opportunities that still favor lenders. He concludes with insights on how AI is enhancing the investment process while emphasizing that technology cannot replace the importance of human relationships in credit analysis. Key Takeaways: • How the Global Credit team approaches today's tight spread environment by focusing on capital preservation rather than reaching for yield, positioning for future market dislocations when opportunities will emerge. • The key early warning indicators to monitor for potential credit market stress, including hedge fund liquidations, counterparty credit reductions, and central bank intervention patterns. • The reality behind private credit's popularity: —understanding whether the additional ~200 basis points over public high yield adequately compensates for illiquidity, reduced transparency, and higher fees. • The critical importance of credit covenant analysis in the investment process, and how the shift toward borrower-friendly terms over the past decade has reduced lender protections. • The rationale behind the Saturn Oil and Gas investment, highlighting how disciplined management, forced deleveraging through quarterly bond buybacks, and attractive spreads create value in a challenging market. • How AI technology is being integrated to enhance the investment process through improved issuer triage and covenant comparison, while maintaining the essential human relationships that drive successful credit investing. This episode is available for download anywhere you get your podcasts. 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. Host: Kevin Minas, CFA - Institutional Portfolio Manager Guest: Brian Carney, CIM – Portfolio Manager Visit Mawer at https://www.mawer.com. Follow us on social: LinkedIn - https://www.linkedin.com/company/mawer-investment-management/ Instagram - https://www.instagram.com/mawerinvestmentmanagement/ /episode/index/show/artofboring/id/37967750

From Inventory to Innovation: Canadian Small Caps in Focus | EP 195 08/06/2025

Back to the Future: Global Equity | EP 194 07/30/2025

Quarterly Update | Q2 2025 | EP 193 07/10/2025

Quarterly Update | Q2 2025 | EP 193 In this episode Canadian bond portfolio manager, Crista Caughlin, and balanced portfolio manager, Steven Visscher discuss Q2’s market and economic activity. Topics covered include “Liberation Day's” tariff shocks, central bank policies, inflation, and other themes. Key Takeaways: The announcement and subsequent deferral of sweeping U.S. tariffs caused significant market volatility, with a sharp initial selloff followed by a rapid recovery. The uncertainty around trade policy had a pronounced impact on economic growth expectations and market sentiment. The quarter featured slowing growth in both the U.S. and Canada, with notable weakness in consumer spending and business investment. Despite expectations, inflation remained contained, and employment data presented a mixed picture—stronger in the U.S., weaker in Canada. Central banks responded differently to domestic economic conditions. The ECB cut rates twice due to weaker growth and contained inflation, while the Fed and Bank of Canada adopted a wait-and-see approach, maintaining a dovish bias but holding rates steady. There was a notable reversal in equity performance trends, with international and emerging market equities outperforming U.S. equities. This—among other factors—raised questions about the potential end of U.S. exceptionalism, though we remain cautious against drawing premature conclusions. Credit spreads tightened to multi-decade lows, reflecting either investor confidence or complacency. Interest rates remained range-bound despite volatility, and the structural shift to higher neutral rates appears to have already occurred in recent years. Host: Kevin Minas, CFA, MBA, CAIA – Institutional Portfolio Manager Guests: Crista Caughlin, CFA – Portfolio Manager Steven Visscher, CFA – Portfolio Manager This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/37354220

Customizing the Last Mile: AI, Innovation, and Mawer’s Tech Evolution | EP 192 06/25/2025

Customizing the Last Mile: AI, Innovation, and Mawer’s Tech Evolution | EP 192 In this episode, Justin Anderson, Mawer’s Chief Technology Officer, sits down to discuss the evolving “build-in vs. build-out” technology framework. Justin explains how Mawer approaches technology decisions—balancing vendor solutions with in-house customization—and shares practical examples from the firm, including proprietary solutions such as trade&MAWER and M42. The conversation explores how advances in AI and large language models are accelerating the shift toward more tailored, efficient solutions. He also offers insights for investors on what to look for in management teams as organizations adapt to rapid technological change. Key Takeaways: The “build-in vs. build-out” framework focuses on how companies customize technology for their unique needs, beyond simply buying or building from scratch. Advances in AI and large language models are making it easier and more cost-effective to develop in-house solutions. Mawer’s internal platforms, such as trade&MAWER and M42, demonstrate the benefits of a build-out approach. Leadership and culture are critical—successful organizations encourage experimentation, embrace new technology, and balance innovation with risk management. Investors should look for companies whose management teams understand technology, address technical debt, and foster a culture of curiosity and adaptability. Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager Guest: Justin Anderson, CFA, MSc, Chief Technology Officer This episode is available for download anywhere you get your podcasts. 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 . Follow us on social: LinkedIn - Instagram - /episode/index/show/artofboring/id/37140700

Art of Boring

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