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.

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

Energy, Gold, and Growth: Current Insights on Canadian Markets | EP 191 06/11/2025

Finding Hidden Gems in Emerging Markets | EP 190 06/04/2025

Navigating Uncertainty: Global Small Caps, Process Innovation, and AI at Mawer | EP189 05/22/2025

The Long View: Global Equity Positioning in Uncertain Markets | EP188 04/30/2025

The Long View: Global Equity Positioning in Uncertain Markets | EP188 In this episode, global equity co-manager, Manar Hassan-Agha, examines how tariff policies have created uncertainty for businesses, particularly impacting capital deployment decisions and supply chains. Manar explains how a focus on asset-light, service-oriented businesses with recurring revenue provides resilience during volatile periods, with limited direct exposure to tariff-vulnerable exports. Through specific company examples like Admiral Group, UnitedHealth, and a beauty products business, he illustrates how the team evaluates short-term price movements versus long-term intrinsic value, emphasizing the importance of disciplined position sizing and maintaining a balanced, diversified portfolio across geographies and market caps during uncertain times. Recent tariff policies have created uncertainty for businesses, affecting capital deployment decisions and generating both direct impacts and second-order effects on consumer spending The Global Equity Portfolio has limited direct exposure to tariff-vulnerable exports, with a preference for asset-light, service-oriented businesses with recurring revenue Short-term price movements often contain significant randomness, highlighting the importance of focusing on long-term business fundamentals rather than reacting to news flow Market volatility can create investment opportunities, particularly in companies with temporarily impacted profitability but intact long-term earnings power Maintaining portfolio balance and diversification across quality factors, valuations, geographies and market caps remains essential during uncertain times Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager Guest: Manar Hassan-Agha, CFA, Mawer 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/36374485

Investment Opportunities in a Changing Military Landscape | EP187 04/23/2025

Investment Opportunities in a Changing Military Landscape | EP187 In this episode, we discuss the defense industry's evolution with equity analyst Joshua Samuel. He highlights the historical underinvestment in European defense, the recent increase in defense spending, particularly Germany's program, and the strategic importance of land systems. The conversation highlights how the current geopolitical environment has transformed defense from an underperforming sector to an investment opportunity, though valuations for companies like Rheinmetall now reflect much of this potential. Key Takeaways: Historical Underinvestment: European military spending dropped dramatically from 2.75% of GDP during the Cold War to approximately 1.3% over the last decade. This resulted in significant inventory reduction (77% fewer tanks, 57% fewer aircraft) and industry consolidation. Germany's Leadership: Germany's substantial defense spending package has garnered attention, though not all European countries have the same fiscal capacity to increase military budgets at the same rate. Supply Chain Constraints: Decades of underinvestment created production bottlenecks that can't be solved quickly. Companies like Rheinmetall, which maintained investment during lean periods, are well-positioned with superior production technology and cost structures. Investment Perspective: European defense companies offer potentially higher growth opportunities than U.S. counterparts due to the lower baseline of European defense spending and greater headroom for increases. Companies with established platforms typically present lower investment risk than those developing new technologies. Strategic Autonomy: With the U.S. potentially reducing its global security role, European nations are recognizing the need for self-sufficiency in defense capabilities to protect their interests and sovereignty. Host: Rob Campbell, CFA, Mawer Director, Institutional Portfolio Manager Guest: Joshua Samuel, CFA, Mawer 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 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/36270015

Finding Silver Linings: International Investing Through Trade Policy Turbulence | EP186 04/16/2025

Finding Silver Linings: International Investing Through Trade Policy Turbulence | EP186 In this episode, portfolio manager, Peter Lampert discusses international equities and the impact of tariffs on portfolio management. He provides insights into how his team has been preparing for potential tariffs since Trump's campaign, explaining that most of their international portfolio companies have limited export exposure to the U.S. and instead operate primarily in domestic markets across various regions. He highlights their strategic decision to exit positions that are heavily dependent on global trade, while maintaining confidence in businesses with resilient management teams capable of navigating economic uncertainty. He also shares personal strategies for maintaining a clear head during market volatility and points out some underappreciated silver linings amid tariff concerns. Key points from this episode: How the international equity team prepared for tariff risks during Trump's campaign, viewing market reactions in February as too benign given potential economic impacts. Many companies in their international portfolio have minimal direct exposure to U.S. tariffs, with many operating domestic U.S. businesses or serving their local markets, like Compass (UK-based catering company with 60% US revenue). The importance of emotional discipline, especially during market volatility, and having a team structure that promotes rational decision-making. Potential silver linings that may have been overlooked by markets, including Europe's increased investment in defense and infrastructure, and China's opportunity to shift toward more domestic consumption. Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager Guest: Peter Lampert, CFA, Mawer 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/36182965

Quarterly Update | Q1 2025 | EP185 04/10/2025

Quarterly Update | Q1 2025 | EP185 In this Quarterly episode, Crista Caughlin, lead portfolio manager for Canadian bonds, and Jeff Mo, lead portfolio manager for U.S. midcaps, discuss market performance through Q1 2025 and the significant volatility that followed in early Q2—particularly after "Liberation Day" when the Trump administration imposed sweeping tariffs, followed by retaliation from other countries, and then a partial pause. The discussion explores how these trade tensions have created uncertainty affecting business confidence, consumer spending, and investment decisions. Crista explains that the growth outlook has worsened due to this uncertainty, regardless of whether tariffs ultimately reach 10%, 25% or are delayed. Both emphasize the team’s investment approach during this volatility relies on maintaining a disciplined process, avoiding "hero trades," and carefully modeling potential impacts on individual companies. Key points from this episode: The Trump administration initiated significant trade tensions in early Q2 2025 with "Liberation Day" and the imposition of sweeping tariffs, followed by retaliatory actions from other countries, causing major market volatility before some tariffs were paused on April 9th (except those on China, which remain at 125%). Even before the full implementation of tariffs, business confidence and consumer spending were negatively impacted by uncertainty, with examples of furloughed workers, delayed investments, and cautious spending behaviors from both the private sector and government employees. Central banks are in a difficult "wait and see" position regarding interest rates as they cannot fully overcome the effects of a trade war but will try to help economies adjust while monitoring whether tariff-induced inflation becomes structurally embedded. The asset mix committee has maintained a neutral position in equities throughout the volatility, with a slight shift from U.S. equities toward international markets (particularly Europe) to benefit from potential structural tailwinds. The investment team emphasizes maintaining adherence to a disciplined process during market turbulence. Host: Kevin Minas, CFA, MBA, CAIA, Institutional Portfolio Manager Guests: Crista Caughlin, CFA, Portfolio Manager Jeff Mo, 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/36089385

Market Update: April 8, 2025 | EP184 04/08/2025

When Tariff Waves Crash: Maintaining Course in Volatile Markets | EP183 04/04/2025

U.S. Equity Insights: The Impact of Policy Shifts and AI | EP182 03/26/2025

U.S. Equity Insights: The Impact of Policy Shifts and AI | EP182 In this episode, we discuss the early months of the new U.S. administration with Grayson Witcher, lead portfolio manager for the U.S. equity strategy at Mawer. Grayson touches on the impact of tariffs, including the practical and unpredictable aspects of tariffs and how they influence decision-making. Grayson also shares insights on the potential long-term effects of the AI boom and highlights recent portfolio adjustments in response to evolving market dynamics. Key Takeaways: The market initially surged post-election but has since reversed, with the S&P 500 dropping below election day levels. Policy shifts have hit sectors like pharma, defense, and life sciences. Volatility is rising, inflation concerns persist, and consumer caution is growing. [00:01:34] The current investment approach focuses on avoiding industries most exposed to tariffs, such as autos, agriculture, and luxury exports. Short-term risks include inflation and declining consumer confidence, while long-term consequences are harder to predict. Tariffs may push foreign competitors to innovate and expand globally. [00:07:01] When thinking about the impact of AI on the market, the U.S. equity team focuses on identifying at-risk industries and long-term beneficiaries. Instead of betting on specific AI technologies, they invest in broader themes. [00:15:45] While the portfolio remains largely stable, they have made minor changes due to advances in AI and current market volatility, exiting companies due to the anticipated impact AI will have on them. [00:17:33] As global tensions rise and deglobalization trends continue, demand for enhanced border security and cargo inspection is increasing. A recent portfolio addition is OSI Systems, a security screening company specializing in cargo, airport, and venue security. [00:21:25] 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/35860210

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