Explore every episode of the podcast Art of Boring

Canada-U.S. tariffs are back, and Canadian investors are asking what they mean for their portfolios. Canadian equity portfolio manager Vijay Viswanathan and fixed income portfolio manager Crista Caughlin break down the tariff picture and last month's Canada Investment Summit across stocks and bonds. They cover why the equity portfolio carries little trade-exposed revenue once exempt commodities like oil and potash are set aside, why unemployment matters more than tariffs for Canadian banks, and how a new business-investment tax deduction pulls the effective rate below the U.S. The conversation closes on a simple idea: what the summit needs now is shovels in the ground, not sound bites on TV.

 

Key Takeaways

The macro backdrop has reversed since 2025: inflation is grinding higher on oil, and the Bank of Canada may hike rather than cut.

The 50% tariff headline overstated reality; USMCA held up and exempt commodities kept trade-exposed revenue low.

About 45% of the Canadian equity portfolio's revenue is CAD and roughly 30% USD, but little is in goods tariffs can easily target.

For banks, unemployment is the KPI that matters; loan losses follow job losses, and diversified business mixes add resilience.

A new tax deduction pulls the effective rate on new investment toward 6% versus roughly 16% in the U.S., but market access still constrains exporters.

The summit's trillion-dollar ambition means a decade of debt issuance, with crowding-out risk against hyperscaler and AI borrowing.

 

Host: Andrew Johnson, Institutional Portfolio Manager

Guest: Crista Caughlin, Fixed Income Portfolio Manager

Guest: Vijay Viswanathan, Director of Research, Canadian 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

https://www.mawer.com

https://www.linkedin.com/company/mawer-investment-management/

 https://www.instagram.com/mawerinvestmentmanagement/

Global credit is absorbing record corporate bond supply as the AI data centre build-out floods the market with debt, yet spreads remain at multi-decade tights. Global credit analysts Sandro Morassutti and Marty Lee revisit the risks the team flagged a year ago, AI-linked issuance, Fed credibility and independence, fiscal spending, and geopolitical risk, and explain why credit spreads have held while government yields have driven the move. They walk through term premium and the long end, why they favour short-dated high-quality credit, the modest duration they have added, and how they are positioned to act when a dislocation finally arrives.

Key Takeaways

AI data centre debt has driven U.S. corporate bond supply to about $1.7 trillion, up 27% year over year and on track for a record.

Despite record issuance, investment-grade spreads sit near 80 basis points and high yield is tighter year to date, at multi-decade tights.

Most of the move in yields has come from government bonds: sovereign yields hit multi-decade highs in the U.K., Japan, and beyond.

The Fed hiked and kept its independence, but credibility and term premium concerns helped push the U.S. 10-year through 5%.

Credit is not directly pricing geopolitical risk; ECB research shows spreads repricing far less than history would imply.

The team favours short-dated, high-quality credit, added modest duration (about 1.2 to just over 2 years), and lifted high yield from roughly 8-9% to 15-16%.

The goal is not to predict the dislocation but to hold the quality and liquidity to buy one.

 

Companies Mentioned: Amazon, Alphabet, Meta, Oracle

 

Host: Kevin Minas, CFA, CAIA, Mawer Institutional Portfolio Manager

Guest: Sandro Morassutti, Mawer Credit Analyst; Marty Lee, Mawer Credit 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 us at:

https://www.youtube.com/@MawerInvestment

https://www.mawer.com

https://www.linkedin.com/company/mawer-investment-management/

 https://www.instagram.com/mawerinvestmentmanagement/

Is AI compute demand durable? Emerging markets equity portfolio manager Wen Quan Cheong returns from a research trip across Taiwan and South Korea and examines AI chip demand, the semiconductor supply chain, and the companies with the strongest structural tailwinds. He breaks compute demand into training, alignment, and inference, explains why margins can widen further down the AI supply chain, and shares what TSMC, SK Hynix, and Samsung revealed about whether this capital cycle is different from the dot-com boom. He also explains how the team trimmed into a crowded AI trade, and makes the case for a non-AI idea: a port operator in the Philippines.

 

Key Takeaways

Slowing the pace of AI is partly a safety and alignment story, and alignment work is itself compute-hungry, which could offset a slower training cycle.

Compute demand splits into training, alignment, and inference; inference is skyrocketing with agentic AI, and one lab's training-to-inference mix has gone from ~80-85% training to about 50/50.

AI looks under-penetrated on tokens per user and per agent, the real driver of compute demand, even as user penetration is already high.

Research trips are a deliberate edge; early groundwork let the team act quickly on clean-room contractor Acter.

Margins can widen further down the AI supply chain thanks to consolidation and price-inelastic hyperscaler demand.

TSMC and memory makers point to a stronger foundation than dot-com and multi-year agreements that lengthen the cycle, though overbuilding is still a risk.

A non-AI idea: a Philippine port operator with defensive, price-setter characteristics and a potential Brazil concession as optionality.

0:00 - Introduction: AI Concerns and Emerging Markets
1:30 - AI Safety, Pacing, and What It Means for Chip Demand
5:03 - Three Buckets of Compute: Training, Alignment, Inference
8:23 - Is AI Demand Under-Penetrated? Users vs. Tokens
9:51 - Why Research Trips Are an Investing Edge
15:20 - Acter: The Clean-Room Bottleneck Behind the Chips
16:58 - Why Margins Grow Further Down the AI Supply Chain
18:50 - TSMC and Memory Makers: Is This Cycle Different?
22:54 - Reading the Market Signal in a Crowded AI Trade
25:48 - A Non-AI Idea: A Port Operator in the Philippines
28:12 - Outro & Subscribe

 

Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager

Guest: Wen Quan Cheong, CFA, Mawer Emerging Markets Equity Portfolio Manager

 

Visit us at:
https://www.youtube.com/@MawerInvestment
https://www.mawer.com
https://www.linkedin.com/company/mawer-investment-management/
https://www.instagram.com/mawerinvestmentmanagement/

Global equity portfolio manager, Paul Moroz, speaks to a wide range of market topics, including what higher discount rates mean for equity valuations and the subtle shifts you might not see in the headlines but that absolutely matter.

Stay tuned for the second half, where Paul discusses Millennium Prize math problems, humility, podcast proliferation, and entropy—for those seeking useful mental models for portfolio construction, the payoff is worthwhile.

Key Highlights:

Bond yields set the discount rate for every asset, and the 10-year U.S. Treasury is above 5%.

A 1% rise in the discount rate implies roughly a 15% decline in equities, yet markets are near highs.

NVIDIA at 13 times next year's earnings suggests multiples compressed while earnings carried prices.

Positioning has moved toward rate beneficiaries and away from consumer discretionary.

A portfolio should work like a rope, with many independent strands so no single one carries the load.

Most of what an investor sees is noise; the work is putting energy into the part that matters.

 

0:00 - Introduction: Rising Bond Yields and Record Highs
1:11 - Why Equity Markets Keep Climbing the Wall of Worry
3:30 - Are Corporate Earnings Just AI?
4:45 - Bond Yields, Discount Rates and the 10-Year Treasury
7:55 - The Equity Duration Math: 1% in Rates, 15% in Stocks
9:32 - NVIDIA at 13 Times Earnings: Growing Into Valuations
11:19 - How Higher Rates Changed the Portfolio
13:38 - Building a Portfolio Like a Rope
16:06 - Humility as an Investment Process
18:45 - ChatGPT Solves a Millennium Prize Problem
23:00 - Entropy Explained: Perfume, Lawns, and Chaos
24:49 - Podcast Proliferation and the Nash Equilibrium
27:40 - Knowledge Adds, Wisdom Subtracts
29:10 - Outro and Subscribe

 

Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager

Guest: Paul Moroz, 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 us at:
https://www.youtube.com/@MawerInvestment
https://www.mawer.com
https://www.linkedin.com/company/mawer-investment-management/
https://www.instagram.com/mawerinvestmentmanagement/

Private equity is opening up to individual investors, and the line between public and private markets is blurring. In this episode, private investments portfolio manager Peter Lieu and institutional portfolio manager Kevin Minas break down secondaries and continuation vehicles, the difference between IRR and distributions, and how Mawer built institutional-quality private equity access through fund commitments, co-investments, and vintage-year diversification, including a new mutual fund trust for registered accounts like RRSPs and TFSAs.

0:00 - Introduction: Private Equity Beyond Endowments and Pensions
1:30 - A Brief History of Private Equity Allocations: Yale to the Maple 8
2:58 - Public-Private Convergence: Why Companies Stay Private Longer
6:17 - Secondaries and Continuation Vehicles Explained
9:40 - IRR vs. Distributions: The Delayed-Exit Debate
13:45 - Bringing Private Equity to Retail: Institutional-Quality Access
15:14 - Co-Investments and 50 Years of Business-Model Analysis
18:25 - Why a Mutual Fund Trust for RRSPs and TFSAs
20:22 - Liquidity and Redemption Windows in a Semi-Liquid Structure
22:21 - Private Equity Returns in a Higher-Rate World
26:06 - What's Next: Sports, Live Entertainment, and Democratization
32:13 - Outro & Subscribe

 

-The line between public and private markets is blurring. Companies are staying private longer, more financing is available without an IPO, and public companies are increasingly being taken private, so accessing value early in a company's life increasingly depends on having private equity exposure.

 

-Continuation vehicles are the modern version of the secondary buyout, not a new idea. They let a manager hold a strong business for longer, and roughly 90% of LPs who can roll into the new vehicle choose to take liquidity instead, which creates both a conundrum for investors and an opportunity for disciplined buyers.

 

-Distributions matter as much as IRR. IRR assumes capital is reinvested at the same rate and can look healthy even when little cash has been returned, so the team evaluates managers on money multiples and cash back, not IRR alone.

 

-Mawer built its access the way large institutions do. The program pairs fund commitments for diversification across companies, geographies, sectors, and vintage years with no-fee, no-carry co-investments, where the firm applies 50 years of business-model analysis to a single company decision.

 

-Registered accounts and private equity are naturally aligned. A new mutual fund trust extends the strategy to RRSPs, LIRAs, and TFSAs, where long time horizons and capital that is already locked up match the illiquidity of the asset class.

 

-Recent returns have been weaker as higher rates pressured valuations and exits slowed while public markets outperformed, but the long-term value drivers remain in place, and a staggered deployment that began in 2022 positioned the strategy for a constructive backdrop.

 

Companies and Assets Mentioned: SpaceX, Amazon, Alpine F1 team, University of Utah Athletics, RedBird Capital, Otro.

 

Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager

Guest: Kevin Minas, CFA, MBA, CAIA, Mawer Institutional Portfolio Manager

Guest: Peter Lieu, CFA, Mawer Portfolio Manager, Private Investments

 

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/
https://www.instagram.com/mawerinvestmentmanagement/

AI CapEx is on track to reach roughly $700 billion at the four largest hyperscalers this year, and equity analyst Irena Petkovic breaks down where all that money is going and what has to be true for it to earn a return. She explains how data centers turned from cost centers into revenue-producing AI factories, the four ways hyperscalers monetize compute, and how the token economy actually works. She then weighs the early evidence of returns against the risks around token pricing, debt financing, and public backlash, and describes how the team positions the portfolio around it.

0:00 - Introduction: The $700 Billion AI CapEx Question
1:29 - How Big Is the Spend? Apollo, Telecom, and Railroads
4:11 - Data Centers as AI Factories: From Cost Center to Revenue
5:53 - Four Ways Hyperscalers Monetize Compute
7:10 - The Token Economy Explained
11:26 - Early Evidence of Returns on AI Investment
14:39 - The Bear Case: Token Prices, Debt, and Backlash
18:49 - Positioning the Portfolio Around AI
20:35 - Outro & Subscribe

 

Highlights:

• Hyperscaler AI CapEx of about $700 billion this year is a scale rivaled historically only by the railroads.
• Capital intensity at Microsoft, Meta, Google, and Amazon has jumped from 5-10% of revenue to upwards of 45%.
• A high return on invested capital justifies spending down free cash flow rather than protecting it.
• The data center is now a revenue-producing AI factory that turns electricity and chips into sellable tokens.
• Compute is monetized four ways: GPU rental, productivity products, enhancing own businesses, and selling tokens.
• Early returns look encouraging, with sub-three-year hardware payback cited and demand exceeding supply.
• Risks to watch are token prices falling faster than volumes and a shift toward debt-funded build outs.

 

Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager

Guest: Irena Petkovic, 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 us at:
https://www.youtube.com/@MawerInvestment
https://www.mawer.com
https://www.linkedin.com/company/mawer-investment-management/
https://www.instagram.com/mawerinvestmentmanagement/

How do you value a memory semiconductor stock like SK Hynix when no one can predict DRAM prices? Equity analyst Shan Rui Yeo walks through the team's Monte Carlo valuation framework: a discounted cash flow run through thousands of scenarios that prices the business on a distribution of returns rather than a single forecast. He also explains how two-times leveraged single-stock ETFs have been amplifying SK Hynix's daily price swings, why regulators and Korean brokers are responding to retail leverage, and why flow-driven volatility can be a gift for long-term investors. The through-line: memory can be cyclical, structurally growing, and wealth-creating all at once.

0:00 - Introduction & Disclaimer
0:21 - How Do You Value a Memory Stock Amid Huge Uncertainty?
0:54 - Monte Carlo Valuation: Pricing SK Hynix on a Distribution of Outcomes
5:27 - Day-to-Day Volatility: Fundamentals or Flows?
6:17 - How 2x Leveraged Single-Stock ETFs Amplify SK Hynix Price Swings
9:40 - What Investors Underappreciate About the Memory Industry
10:21 - Closing Thoughts & Subscribe

Key Takeaways

• Key uncertain variables (DRAM prices, supply response, China risk) are modelled as ranges and run through thousands of scenarios; the output is a distribution of returns, treated stochastically.
• SK Hynix scenarios: bull (prices hold through the decade), realistic (decline from 2028 as supply arrives), bear (accelerated decline on over-investment and Chinese supply).
• The test is being paid adequately across the whole distribution, not picking the right scenario; the distribution centred around 12% with positive skew.
• New data points (LTAs signed, capacity expansion) update the distributions; position sizing follows the shape, and the team trimmed as the shares ran.
• Two-times leveraged ETFs rebalance by buying after rises and selling after falls, amplifying 10 to 15% daily moves in SK Hynix.
• Flow-driven volatility widens the gap between price and value, which long-term investors can use.
• Memory can be cyclical, structurally growing, and wealth-creating at the same time.
  
  

Host: Rob Campbell, CFA, Institutional Portfolio Manager
Guest: Shan Rui Yeo, 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 us at:
https://www.youtube.com/@MawerInvestment
https://www.mawer.com
https://www.linkedin.com/company/mawer-investment-management/
https://www.instagram.com/mawerinvestmentmanagement/

#ArtOfBoring #MawerInvestmentManagement #MawerInvestment #Podcast #Finance #Investing #semiconductor #tech #techexplained #memory #skhynix

Memory has been one of the strongest corners of the semiconductor industry, and strong returns invite hard questions. In the second part of this series, equity analyst Shan Rui Yeo examines the main risks to the memory thesis: rising competition from China's CXMT and YMTC, the technologies that could reduce AI's appetite for memory, and the wave of capacity investment that could eventually tip the industry back into oversupply. He weighs each risk against the constraints holding it back, from equipment export controls to limited EUV supply, and notes that memory companies already trade at three to five times forward earnings. The conversation closes on a working principle: treat the terminal value as a distribution, not a fixed number.

Key Takeaways

• China's CXMT is expanding DRAM capacity aggressively, but export controls on sub-18 nanometre equipment and EUV keep its effective supply share (about 10%) below its capacity share (about 15%).

• YMTC is the more credible technological threat: NAND density comes from stacking layers, and its Xtacking hybrid bonding architecture is proprietary.

• Efficiency gains may grow memory consumption rather than reduce it; cheaper tokens get spent on larger context windows (the Jevons paradox).

• The deepest risk is architectural: if large language models are not the path to AGI, the next paradigm may not be memory hungry, so terminal value is a distribution, not a fixed number.

• Announced capex is enormous but back-loaded into the 2030s, and EUV and equipment capacity are the bottleneck to bringing it online.

• Memory companies trade at three to five times forward earnings; the market is not assuming supernormal profits forever, and the NAND supply outlook is better in the near term.

Companies Mentioned: Samsung, SK Hynix, Micron, CXMT (ChangXin Memory), YMTC (Yangtze Memory), Apple, NVIDIA, Google, ASML, Applied Materials, KLA, Lam Research, TSMC, Intel, Kioxia

Host: Rob Campbell, CFA, Institutional Portfolio Manager

Guest: Shan Rui Yeo, 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 us at:

https://www.youtube.com/@MawerInvestment

https://www.mawer.com

https://www.linkedin.com/company/mawer-investment-management/

https://www.instagram.com/mawerinvestmentmanagement/

One of the defining market stories of the past 12 months has not been AI chips that compute, but the chips that remember. Equity analyst Shan Rui Yeo explains how memory works, from DRAM and NAND to high bandwidth memory, and how an industry that destroyed wealth for four decades became disciplined after consolidating to three players in 2013. He then walks through what changed: AI inference has made memory the key bottleneck, memory content is climbing with each new generation of GPUs, and new supply takes three to four years to build. With prices up sharply and customers signing long-term agreements, Part 1 of this three-part conversation lands on a commodity industry whose business model is changing in real time.   Key Takeaways

• Memory is a commodity with a three-to-four-year supply lag, which is why the cycle has always been difficult.
• Consolidation to three players in 2013 turned four decades of wealth destruction into at least 15% returns on capital through the cycles.
• In AI inference, memory bandwidth sets the speed of token generation, making memory the key bottleneck.
• NVIDIA's Rubin GPU carries 384 GB of DRAM, the equivalent of 32 iPhones per GPU, or 160 million iPhones across five million GPUs.
• HBM consumes three times the wafer capacity of standard DRAM (four times with HBM4) and is forecast to absorb 30% of DRAM wafers by 2027.
• DRAM contract prices are up roughly 200% year to date and 400 to 500% year over year, and price increases are reaching phones, laptops, and consoles.
• Customers are signing three-to-five-year agreements with prepayments, which could support a re-rating of memory companies.  

Companies Mentioned: Samsung Electronics, SK Hynix, Micron, NVIDIA, Intel, Texas Instruments, Apple, Nintendo   Host: Rob Campbell, CFA, Institutional Portfolio Manager Guest: Shan Rui Yeo, 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 us at: https://www.youtube.com/@MawerInvestment https://www.mawer.com https://www.linkedin.com/company/mawer-investment-management/ https://www.instagram.com/mawerinvestmentmanagement/

#ArtOfBoring #MawerInvestmentManagement #MawerInvestment #Podcasts

Canada has spent a generation underinvesting in the infrastructure and resources that underpin its economy, and that may be starting to change. Canadian small cap equity analyst Dominic Drzazga examines the Build Canada theme: what it actually means beyond the headlines, and what has shifted since the federal election. He walks through the legislative groundwork, from the Building Canada Act to a fast-tracked pipeline of named projects, and explains why the clearest near-term opportunities potentially sit in the middle of the value chain rather than with the eventual asset owners. Above all, he frames Build Canada as a long-horizon shift, one where the discipline is separating the projects that break ground from those that stay on the press release.

Key Takeaways

• What the Build Canada theme really means, beyond physical infrastructure to Canada's untapped resources and human capital.
• The legislative changes since the election: the Building Canada Act, faster approvals, and the new Major Projects Office.
• The project pipeline taking shape, from LNG Canada's Kitimat expansion to Ontario Power Generation's small modular reactors.
• Why the near-term beneficiaries are in the middle of the value chain, not the eventual asset owners.
• How the portfolio is positioned: Bird Construction, Dexterra Group, and Black Diamond.
• The key risks: projects that stall, and cost and schedule overruns, and how the team manages them.

Companies Mentioned: Bird Construction, Dexterra Group, Black Diamond Group, Aecon, Dow

Host: Kevin Minas, CFA, CAIA, Mawer Institutional Portfolio Manager
Guest: Dominic Drzazga, 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 us at:

https://www.youtube.com/@MawerInvestment

https://www.mawer.com

https://www.linkedin.com/company/mawer-investment-management/

 https://www.instagram.com/mawerinvestmentmanagement/

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/ https://www.instagram.com/mawerinvestmentmanagement/

#ArtOfBoring #MawerInvestmentManagement #MawerInvestment #Podcasts

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 https://www.mawer.com https://www.linkedin.com/company/mawer-investment-management/ https://www.instagram.com/mawerinvestmentmanagement/ 

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 https://www.mawer.com https://www.linkedin.com/company/mawer-investment-management/ https://www.instagram.com/mawerinvestmentmanagement/ 

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: 

https://www.youtube.com/@MawerInvestment

https://www.mawer.com

https://www.linkedin.com/company/mawer-investment-management/

https://www.instagram.com/mawerinvestmentmanagement/

#ArtOfBoring #MawerInvestmentManagement #MawerInvestment #Podcasts

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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:

https://www.youtube.com/@MawerInvestment
https://www.mawer.com 
https://www.linkedin.com/company/mawer-investment-management/ 
https://www.instagram.com/mawerinvestmentmanagement/

 

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

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:

https://www.youtube.com/@MawerInvestment

https://www.mawer.com

https://www.linkedin.com/company/mawer-investment-management/

https://www.instagram.com/mawerinvestmentmanagement/

 

#ArtOfBoring #MawerInvestmentManagement #Podcasts #BeBoringMakeMoney

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/ 

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 - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/ 

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 https://www.mawer.com.

Follow us on social: 

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social: 

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

 

Follow us on social: 

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram -https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social: 

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social: 

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 -

https://www.linkedin.com/company/mawer-investment-management/

 

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

 

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/

In this episode equity analyst Dominic Drzazga discusses the current state of Canadian small caps, highlighting how geopolitical volatility creates both challenges and opportunities. The conversation covers recent portfolio additions including Sprott's precious metals trust and Kraken's underwater robotics technology, while reflecting on the bittersweet exit of long-time holding Andlauer. Dom also shares insights into how the research team is utilizing AI tools within their process. 

 

Key Takeaways: 

• How the Canadian Small Cap team navigates market volatility and geopolitical uncertainty, emphasizing capital preservation while remaining opportunistic. 

• The team's disciplined inventory assessment process, highlighting how they maintain a robust pipeline of potential investments and actively monitor over 50 companies. 

• The rationale behind recent portfolio moves, including the addition of Sprott for stable precious metals exposure and Kraken Robotics for its leadership in underwater robotics and defense sector growth. 

• The process-driven approach to exits—e.g., the Andlauer takeout as an example of balancing near-term value realization with long-term potential. 

• An inside look at how AI and internal innovation—such as the "earnings monitor agent"—are streamlining research workflows and enhancing investment decision-making. 

 

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/

Paul Moroz returns to The Art of Boring podcast after three years, discussing his reappointment as lead manager of Mawer's global equity strategy. Paul outlines the team's strategic approach to portfolio repositioning and reflects on how the investment landscape has evolved over the past five years. He emphasizes increased diversification, better alignment with other Mawer strategies, and a more balanced approach to market exposure.

 

Key Takeaways:

 

• Paul Moroz and David Ragan have returned to the global equity strategy with renewed energy and focus

 

• The portfolio is increasing its number of holdings for improved diversification and resilience, creating more "chess pieces on the board" Adjustments include boosting technology exposure and reducing positions with weakening business fundamentals

 

• The team is moving quickly but methodically, with most changes expected in the coming months and a return to typical turnover rates thereafter.

 

• Highlighted changes in the last five years: technology's rapid evolution, the rise of capital-light business models, and shifts in passive vs. active investing. But despite structural changes, human psychology remains a constant driver of market behavior. 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/

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 https://www.mawer.com.

 

Follow us on social:

 

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

 

Instagram - https://www.instagram.com/mawerinvestmentmanagement/ 

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/ 

Mark Rutherford, co-manager of Mawer's Canadian large cap strategy, discusses the ongoing volatility in oil, the unique role of gold, the outlook for Canadian banks, and the potential impact of recent political changes. Mark also shares how the Mawer team is leveraging AI to enhance their investment process and decision-making.

Key Takeaways:

• Oil Market: Global demand is rising, driven by economic growth and higher incomes, while supply is shaped by geopolitics, OPEC, and technology.

• Canadian Banks: Loan growth is slow and provisions are higher amid uncertainty, but banks remain well-capitalized and stable.

• Political Change: New pro-growth policies in Canada could boost productivity and create investment opportunities, especially in infrastructure and financials. 

• Gold's role: Gold remains a store of value; Mawer prefers low-cost producers and streaming/royalty models.

• AI Integration: AI is streamlining research, improving efficiency, and generating new investment ideas using proprietary data and tools. 

 

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/

Join Peter Lampert, Portfolio Manager of Mawer's Emerging Markets strategy, as he takes you on a journey from Polish meat counters to UAE boardrooms, revealing how a disciplined bottom-up approach uncovers extraordinary opportunities in overlooked markets.

Key Takeaways:

• Mawer's bottom-up philosophy is consistent across markets, but emerging markets require a nuanced focus on the macro and geopolitical environment.

• Emerging markets are highly diverse and less efficient, often offering more opportunities for disciplined, active investors.

• On-the-ground research—such as recent trips to Poland—helps uncover overlooked businesses and understand local dynamics.

• Portfolio examples include Dino Polska and Asseco Poland, both selected for strong management and growth prospects.

• The asset class is much broader than China; significant opportunities exist in countries like Poland and the UAE. 

• Emphasis on long-term growth, resilience, and finding companies that can thrive in uncertain environments.

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/

In this episode, Karan Phadke, Portfolio Manager for Mawer's global small cap strategy, shares insights on how small caps are navigating trade policy volatility, the importance of proactive management, and Mawer's unique approach to process improvement and AI integration in investment research.

 

Key points from this episode:

 

• Small caps' local focus provides insulation from global trade volatility.

Importance of proactive management teams in uncertain environments.

• Mawer's "ant model" drives continuous process improvement and collaboration.

• Systematic thesis tracking and biweekly case studies enhance investment discipline.

• AI and proprietary data are integrated into Mawer's research process.

• Emphasis on not outsourcing critical thinking and decision-making.

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/ 

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 https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/ 

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/

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 - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/ 

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 https://www.mawer.com.

 

Follow us on social: 

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/ 

Instagram - https://www.instagram.com/mawerinvestmentmanagement/ 

 

Mawer President and portfolio manager, Jim Hall, discusses the current market environment and the team's approach to risk management. The conversation covers what triggered the vast volatility and uncertainty seen in markets, potential scenarios to come, and what the team at Mawer is doing about it. He emphasizes the importance of staying calm, being prepared, and diversifying portfolios to manage risks.

 

Host: Andrew Johnson, CFA, Institutional Portfolio Manager 

Guest: Jim Hall, CFA, MBA, President, 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 - https://www.linkedin.com/company/mawer-investment-management/ 

Instagram - https://www.instagram.com/mawerinvestmentmanagement/ 

In this episode, U.S. mid cap equity portfolio manager, Jeff Mo, discusses the market's sharp sell-off following President Trump's announcement of widespread tariffs on nearly all U.S. trading partners. He provides both short and long-term perspectives on potential economic impacts, including reduced business investment and consumer spending, while explaining that Mawer's investment approach during this volatility remains focused on preparation as opposed to prediction.

 

Key Takeaways:

• "Liberation Day" Tariffs - Trump administration announced widespread tariffs (10-40%) on most trading partners, surprising markets with their scope and scale.
• Market & Economic Response - S&P 500 dropped nearly 5% in one day with bond yields falling; concerns about negative impacts on global growth, business investment, and supply chains
• Consumer Sentiment Impact - Potential weakening of consumer spending due to market losses ("wealth effect") and general uncertainty affecting household financial decisions
• Investment Strategy in Volatility - Mawer's investment approach focuses on preparation over prediction, maintaining a portfolio of quality companies while making only marginal adjustments during market turbulence

Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager

Guest: Jeff Mo, CFA, Mawer Portfolio Manager

 

For more details and full transcript visit: https://mawer.com/the-art-of-boring/podcast

This episode is available for download anywhere you get your podcasts.

--

Founded in 1974, Mawer 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.instagram.com/mawerinvestmentmanagement/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

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 https://www.mawer.com.

Follow us on social: LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/