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/