Art of Boring

Mawer Investment Management Ltd.
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Art of Boring

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

  1. 3 DAYS AGO

    Navigating Tariff Tensions in Canada: Risks and Opportunities

    In this episode, we discuss the escalation of U.S./Canada tariff tensions with Mark Rutherford, co-manager of Mawer’s Canadian equity strategy. Mark provides historical context of how we got here; highlights the potential economic impact tariffs may have on the Canadian economy; provides specific portfolio holding examples of how businesses and industries may be affected; and mentions several potential benefits for Canada. Ultimately, he stresses that adhering to a disciplined, long-term investment approach is vital amid uncertainty. Key Takeaways: In the U.S., manufacturing’s decline has driven trade and financial deficits, exacerbated by a strong dollar. Tariffs aim to correct these imbalances. Being diversified and adjusting portfolio positioning from a bottom-up and scenario planning lens is key amidst uncertainty. Tariffs could cause a potential Canadian recession, a weaker dollar, and lower interest rates. The team is monitoring U.S. dollar strength, risk havens, and possible global currency interventions while assessing the broader economic impact of tariffs on prices and growth On the flip side, Canada could benefit from reduced internal trade barriers, increased infrastructure and energy projects, and greater political will to attract capital—potentially driving long-term economic growth, job creation, and higher tax revenues. For now, the recommendation is to focus on “prepare don’t predict,” maintain discipline amid market swings, avoid rash decisions, monitor exposures, and seek long-term opportunities. Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager Guest: Mark Rutherford, 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/

    17 min

  2. JAN 21

    Quarterly Update | Q4 2024

    In this episode, we discuss 2024's economic landscape and what to expect in 2025, with Crista Caughlin, lead portfolio manager of the Mawer Canadian bond strategy. Crista highlights U.S. and Canadian growth trends, central bank rate adjustments, housing market dynamics, equity and fixed-income performance, and political uncertainties. She also discusses Mawer’s asset allocation strategy, balancing risks with opportunities amidst shifting fiscal policies, trade tensions, and global economic developments heading into 2025. Key Takeaways: The year 2024 saw resilient U.S. growth despite headwinds, while Canada faced weaker growth and higher unemployment. Q4 showed modest improvements in Canadian growth and employment, but inflation trends potentially shifted upward in both regions late in the year. In 2024, the Bank of Canada aggressively eased rates, cutting 175 basis points, responding to weaker growth and target-level inflation. The Fed eased more gradually, cutting 100 basis points, as robust U.S. growth supported higher rates. Both central banks aimed to shift from restrictive to less restrictive policies. Political changes in Canada and the U.S. have created uncertainty for fiscal policies and trade dynamics. Tariffs pose risks to Canadian growth and inflation. Central banks remain cautious, awaiting policy clarity while navigating trade and economic interdependencies. The Canadian housing market faces reduced pressure due to Bank of Canada rate cuts and proactive bank measures like extended amortization. However, 2025's higher mortgage renewals at elevated rates pose ongoing risks to household spending and economic growth. Equity markets posted strong 2024 returns, driven by a stronger U.S. dollar, AI growth, and financial sector strength. Fixed-income returns were flat in Q4 but solid annually, with tightening spreads and rising Canadian 10-year rates prompting a defensive portfolio stance. The asset mix committee maintained a neutral equity stance, underweight bonds, and overweight cash in 2024, balancing hard landing concerns with market momentum. Key 2025 themes include fiscal policy uncertainty, global deficits, higher neutral rates, and opportunistic portfolio adjustments to enhance diversification. Host: Kevin Minas, CFA, MBA, CAIA, Mawer Institutional Portfolio Manager Guest: Crista Caughlin, CFA, Mawer Portfolio Manager, Fixed Income 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 -   / mawer-investment-management  Instagram - / https://www.instagram.com/mawerinvestmentmanagement/

    19 min

  3. JAN 15

    Canadian Equity: 2024 Overview and Looking Ahead to 2025

    In this episode we discuss the Canadian equity market with Mark Rutherford, co-manager of Mawer’s Canadian equity strategy. Mark highlights the key drivers behind Canadian equities' strong 2024 performance, highlighting standout sectors like technology, financials, energy midstream, and gold. He also examines challenges in telecommunications and real estate, discusses risks from slower economic growth, inflation, and higher mortgage rates, and emphasizes strategic portfolio adjustments. Key Takeaways: Canadian equities excelled in 2024, driven by strong performance in technology, financials, energy midstream, and gold companies. Elevated valuations now prompt focus on sustainable growth and identifying new opportunities. In 2024, banks benefited from moderated loan growth, margin expansion, cost controls, and strong wealth management and capital markets earnings. Canadian insurance companies transitioned to stable earnings through improved product mixes, rational competition, and capital efficiency. Industries facing challenges or weaknesses in Canada include telecommunications (regulatory pricing pressures, rising competition, and higher refinancing costs) and real estate (expensive debt refinancing, softer industrial demand, and slower rent growth). Looking ahead to 2025, key risks for Canada include slower economic growth, inflation-driven policy shifts, a weakening Canadian dollar, and higher mortgage refinancing rates. To maintain strong portfolio performance, the focus will be on recycling capital into undervalued opportunities, prioritizing bottom-up analysis, and consistently selecting companies with strong fundamentals, aligned management, and reasonable valuations. Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager Guest: Mark Rutherford, 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 -   / mawer-investment-management  Instagram - / https://www.instagram.com/mawerinvestmentmanagement/

    20 min

  4. 12/23/2024

    Why Invest Outside of the U.S.? The Benefits of EAFE Large Cap

    In this episode, we discuss Mawer’s EAFE large cap portfolio with Ian Turnbull, an equity analyst at Mawer. Ian explores the portfolio's diversification benefits, offering exposure to resilient, high-quality companies in 21 markets such as the Nordics, Switzerland, and Singapore. The team targets proven companies with strong moats and global leadership. Key holdings include Wolters Kluwer, BAE, and Chugai. AI's potential in healthcare R&D is highlighted, though regulatory hurdles persist. The team emphasizes balancing risks, leveraging themes like pharma innovation, defense, electrification, and AI, and addressing geopolitical uncertainties for a resilient, long-term portfolio.   Key Takeaways: • The EAFE Large Cap portfolio provides diversification, mitigating risks like U.S. concentration and valuation fragility. It offers compelling opportunities in smaller, well-performing countries like the Nordics, Switzerland, and Singapore. The team’s bottom-up approach targets high-quality companies, emphasizing resilience and long-term potential across 21 diverse markets. • Mawer defines large cap as the top two-thirds of the MSCI EAFE Index ($11B market cap), favoring proven, resilient companies with established moats, economies of scale, and global leadership, tested through cycles and challenges. • Highlighting a few key holdings, Wolters Kluwer’s successful shift from print to digital boosted recurring revenue, customer stickiness, and margin expansion, with AI enhancing value creation and growth. • Another top holding, BAE, benefits from stable government funding and high capital returns. With new management and growing defense spending, it offers strong growth potential, especially in Europe, amid rising geopolitical tensions. • Chugai, a top holding in Japan, was once a distributor for Roche but has evolved into a key R&D engine, developing successful treatments like Hemlibra. Its GLP-1 partnership with Eli Lilly offers strong upside potential. • AI in healthcare R&D promises faster drug discovery, optimizing early-stage processes and reducing costs, benefiting companies with strong R&D cultures while still facing regulatory limits in clinical stages. Valuation in pharma is complex, especially with competition in GLP-1s. • The EAFE Large Cap team focuses on creating a resilient portfolio by balancing risks, seeking contradictions between holdings, and ensuring exposure to key themes like pharma innovation, defense, electrification, and AI, while monitoring geopolitical risks and tariffs. Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager   Guest: Ian Turnbull, CFA, Mawer Equity Analyst   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/

    23 min

  5. 12/13/2024

    Maintaining an All-Weather Strategy: The U.S. Mid Cap Equity Landscape

    In this episode, we discuss the U.S. mid-cap landscape with Jeff Mo, manager of the U.S. mid cap equity strategy at Mawer. Jeff touches on risk management, emphasizing disciplined adherence to investment philosophy and the benefits of balancing risk and return through natural contradictions, like pairing discretionary consumer-focused SharkNinja with countercyclical firms such as FTI Consulting. Additional topics include preemptive risk management, maintaining an all-weather portfolio, and leveraging a robust inventory process to adapt. Key Takeaways: In a hot market, risk management means resisting the temptation to chase speculative trends or high-growth fads without competitive advantages. Instead, it requires disciplined adherence to an investment philosophy—prioritizing quality businesses with strong fundamentals and sustainable value. Purposeful diversification includes inherent contradictions, ensuring steady wealth creation across interest rate cycles by balancing companies benefiting from both low- and high-rate environments. Despite recent market volatility and election-related uncertainties, the focus remains on maintaining an all-weather strategy. The team continues to evaluate companies based on fundamentals and earnings, with no drastic portfolio adjustments needed during this time. Inventory is crucial for risk management, providing a range of high-quality, pre-analyzed options. Mawer’s extensive, multi-stage inventory process ensures quick access to companies with competitive advantages, allowing for strategic, timely decisions based on evolving market conditions. To illustrate natural contradiction, Jeff shares details on specific holdings. SharkNinja's competitive edge lies in its rapid product development, allowing market share growth despite its consumer discretionary risks. To balance, the portfolio includes companies like FTI Consulting and CACI, which thrive in different market conditions, providing stability through natural contradictions. Host: Rob Campbell, 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 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/

    19 min

  6. 12/03/2024

    Opportunities and Watchpoints: A Deep Dive into Global Credit

    In this episode, we discuss key trends and positioning in credit markets with Brian Carney, lead portfolio manager of the Mawer global credit opportunities strategy. We touch on the year’s strong performance driven by tighter spreads, higher yields, and emerging risks such as low risk premiums and the U.S. election. Topics include corporate issuance, fallen angels, and public-private credit convergence. Emphasizing capital preservation, Brian highlights portfolio positioning in high-quality, short-duration securities, such as North American bank bonds, while avoiding high-yield exposure. Key Takeaways: Credit markets have performed well this year, driven by tighter spreads and higher benchmark yields, but risk premiums are historically low. Brian suggests investors prioritize capital preservation over chasing yield, avoiding high-yield bonds and long-dated credit. Post-U.S. election, vigilance is key amid potential policy-driven market shifts. Trends in the past quarter include fallen angels, commercial real estate risks, and potential high-yield defaults. An actively managed, absolute return credit strategy offers diversification, income, and potential capital appreciation while protecting against adverse credit and interest rate moves. It’s ideal for long-term investors seeking alternatives to passive strategies and opportunities in volatile or distorted markets. Brian recommends investors view absolute return credit as a long-term allocation, not for market timing. Market dislocations are brief, and panic often prevents opportunistic moves. Mawer’s portfolio is managed bottom-up, focusing on individual credit assessments to mitigate risk and seize opportunities. It prioritizes short-duration, high-quality holdings, avoids high yield, and ensures diversification with a maximum issuer cap of 10%, balancing downside risk and concentrated positions. Optimism abounds for long-term credit opportunities and future discussions on continued progress.   Host: Kevin Minas, CFA, MBA, CAIA Mawer Institutional Portfolio Manager Guest: Brian Carney, CIM Mawer Portfolio Manager, Fixed Income 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 -   / mawer-investment-management  Instagram - / https://www.instagram.com/mawerinvestmentmanagement/

    23 min

  7. 11/28/2024

    The “S&P 493”: Managing Risks and Opportunities in the Global Equity Strategy

    In this episode, we discuss the global equity strategy with Christian Deckart, chief investment officer and portfolio manager at Mawer. Christian stresses managing absolute risk over relative risk for better long-term outcomes and details Mawer’s approach to risk management, focusing on decision-making, portfolio risks, and external factors such as government debt and rising rates. He also discusses adapting to AI trends, preferring companies leveraging AI applications over infrastructure investments. He emphasizes maintaining focus on fundamentals amid evolving global and technological landscapes. Key Takeaways: Effective risk management begins with a sound decision-making culture, clear accountability, and thorough evaluation of securities, portfolios, and systemic exposures to avoid unintended biases. Market and portfolio vulnerabilities include rising government debt, interest rate shocks, hidden real estate losses, over-specialized economies, and investor psychology driven by greed and fear. Disciplined risk management and avoiding overreliance or shortsighted behaviors in markets are important keys to success. While AI and semiconductor stocks dominate attention, there are overlooked opportunities in the broader U.S. market, diverse, underappreciated companies that meet rigorous criteria at attractive valuations. Christian highlights investments with potential to leverage AI applications for competitive advantage and long-term profitability beyond initial AI infrastructure trends. While the global equity strategy's absolute performance in 2024 is strong, relative performance lags the benchmark due to its different composition, particularly the focus on stable, "boring" businesses versus high-growth sectors like AI infrastructure. Christian attributes the global equity strategy's underperformance to its broader diversification compared to the benchmark, with a larger focus on stable, recurring businesses and less emphasis on high-growth sectors like AI, particularly in the U.S. market.   Host Name and title: Rob Campbell, CFA Mawer Institutional Portfolio Manager Guest names and titles: Christian Deckart, CFA, PhD Director, Chief Investment Officer, 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 -   / mawer-investment-management  Instagram - / https://www.instagram.com/mawerinvestmentmanagement/

    22 min

  8. 11/26/2024

    Navigating Market Complexities: Insights from the Trading Desk

    In this episode, we discuss market insights with two representatives from the trading desk: Rita Tien, who trades the Americas from Toronto, and Peter Dmytruk, who trades Asia from Singapore. Rita and Peter highlight the complexities of trading, emphasizing the importance of regional differences and the role of the trading desk in executing investment decisions. They discuss the impact of the Japanese carry trade, the shift to T+1 settlement cycles in the U.S. and Canada, and the influence of ETFs and retail investors on market volatility. They also touch on the role of multi-strategy hedge funds and the challenges of managing market risks. The conversation underscores the need for long-term investment strategies and the importance of understanding market structures and dynamics. Key Takeaways: The trading desk plays a critical role in executing investment decisions effectively, navigating market nuances and regional differences. Market events like U.S. elections and Fed rate decisions significantly impact markets, requiring traders to discern meaningful signals from noise. While short-term volatility is challenging, the focus remains on executing trades aligned with long-term strategies. The Japanese carry trade impacts markets, influencing businesses and structured products. Sudden market moves, like Japan's interest rate hike, highlight the importance of communication to assess potential impacts on investment theses. In the U.S. and Canada, the shift to T+1 settlement reduces settlement risk and margin requirements by accelerating fund transfers but adds complexity for global trades due to mismatched settlement cycles. Market volatility is influenced by zero-day options, high-frequency trading, retail investor activity, and leveraged ETFs. Retail-driven markets such as India, Korea, and Taiwan showcase momentum-driven dynamics, while recent SEC rules aim to protect retail investors and improve liquidity access for institutional players. ETFs significantly influence market dynamics, concentrating liquidity and volume, especially during closing auctions, where up to 20% of daily trading occurs. This impacts trade timing, crowding in top-weighted stocks, and creates potential price distortions affecting subsequent trading days. Multi-strategy hedge funds, or "pod shops," drive market overcrowding by leveraging similar strategies, such as M&A arbitrage or index rebalancing. This amplifies market risks, creates volatility during downturns, and provides opportunities for disciplined long-term investors amid rapid shifts. Crowded, momentum-driven trades fueled by leverage and quantitative models can create challenges for disciplined investors, though opportunities arise in volatility. Balancing exposure to popular names with underappreciated companies can mitigate risks while benefiting from structural market inefficiencies. Host Name and title: Rob Campbell, CFA Mawer Institutional Portfolio Manager Guest names and titles: Peter Dmytruk, CFA, P. Eng. Trader Rita Tien Equity Trader  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 -   / mawer-investment-management  Instagram - / https://www.instagram.com/mawerinvestmentmanagement/

    41 min
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4.2
out of 5
5 Ratings

About

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

Information

  • Creator
    Mawer Investment Management Ltd.
  • Years Active
    2018 - 2025
  • Episodes
    179
  • Rating
    Clean
  • Copyright
    Copyright © 2018 Mawer. All rights reserved.
  • Show Website
    Art of Boring

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