Citywire Selector Podcast

Sam Gratton spent a decade in the City working as a credit salesman selling bonds, credit derivatives and structured credit for companies such as Goldman Sachs, JPMorgan and Santander. However, he found himself one day in the need to escape the finance ‘vortex’ as he needed to do something more creative. He then studied film in London, but this eventually led him to establish his own company in Madrid, Spain. He decided to become an English teacher, coach and mentor for high profile business professionals.

In the third episode of the Breaking & Entering new series, we deep dive into the world of classical music, and how an academic musician can easily move towards asset management. Chris Ford now manages the Sanlam AI Artificial Intelligence fund, but there was a time when his job was about deciphering eco-musicology and why French music is still very much a world of its own. A holder of bachelors and masters in music and now head of growth equities at Sanlam Investments, Ford talks about the ‘need for silence’ both in asset management decision-making and a string quarter performance.

In the second episode of the Breaking & Entering new series, we discover the story of Tom Hancock, who went from being a research scientist at IBM surrounded by punched cards and noisy computers, to work in asset management at GMO. Hancock studied computer science at Harvard University and wasn’t particularly interested in finance, until he decided to give it a go after a few experiences in the science field. Get ready to jump on the Citywire Selector Delorean and travel back to the days of (un)flat monitors and old-school coding, when receiving an email seemed like magic.

Even though many Article 8 funds under the Sustainable Finance Disclosure Regulation don’t have buzzwords like ‘ESG’ in the names, their inclusion sends a stronger signal to investors. Speaking to Citywire Selector Hortense Bioy, head of ESG research at Morningstar, said if a fund’s name doesn’t include ‘ESG’ or sustainability terms, these issues are unlikely to play a central role in the strategy. ‘I’m not saying that these funds do not consider ESG factors, many are now doing it. But these factors are, more often than not, non-binding.’ Also in this podcast Bioy discusses Morningstar’s decision to reduce the number of funds it deems sustainable, and what the invasion of Ukraine means for sustainable investments.

Breaking & Entering is back, with ex figure skating athlete Alban Préaubert as the first guest in the second series of the podcast. In this episode, the Sycomore AM fund manager tells Daniel Ruiz about his switch from competing for France in World Championships and GPs all around the globe, to asset management. The Frenchman, who is now focused on overseeing several small and mid caps strategies, believes that professional competition and finance share many values and lessons, which he still applies on a daily basis.

In this episode of EM Insider, Raphael Kassin shares his thoughts on how the Russian invasion of Ukraine has hit specific markets and what investment decisions he has noticed both in the lead up and following the onset of the conflict. Also in this episode, Kassin tells Citywire Selector reporter, Krystle Higgins his own investment strategy in the hours and days after the war began. Kassin also shares predictions on Russia’s future place within global markets in the months and years ahead, as well as what role China may play.

While the traditional ‘gentleman’s club’ ethos may not be as visible as it once was, female fund managers still face daily obstacles not experienced by male peers. That’s according to Polar Capital’s Naomi Waistell, who spoke about her experience and ascent through the financial industry as part of a special podcast produced for International Women’s Day 2022. Waistell said daily sexism still exists within the industry, which is perhaps most keenly felt at times when a group of men in a meeting might expect her to be there to make hot drinks for attendees rather than to present investment ideas.

The increasing importance of ESG and sustainability-focused roles is helping to boost the number of women working in finance. This is according to Susanne Bolin Gärtner, head of fund and manager selection at Danske Bank, who has noticed this significant shift in the last couple of years. Also in this podcast the fund buyer explains why she is sceptical about gender-focused funds and how remote working has changed her options when it comes to hiring specialists outside of the Nordic region for her team.

Stewardship is a powerful tool for investors to nudge companies towards better diversity practices, even though asset managers are still relatively timid at filing resolutions addressing the topic. This is according to Deborah Gilshan, founder of the 100% Club, who talked about the highlights of the recently published FTSE Women Leaders, formerly known as Hampton-Alexander Review. Also in this podcast she explains what a good company culture looks like and why it is important for firms to go beyond gender diversity.

It’s tempting to solve diversity issues through CEO compensation incentives, but investors need to understand the problem is more nuanced. This is according to Anna Snider, head of due diligence for the wealth management division of Bank of America Merrill Lynch, who said there is not enough data to show this approach works. ‘It is also good to have economic incentives and disincentives. It is about what the knock-on effect of that is and what CEOs or organisations in general end up doing, in order to achieve that.’ Also in this podcast, Snider explains how her team interacts with asset managers on diversity data and where companies can still do better.

Which EM countries were the biggest winners and losers in 2021, and where should investors look to in 2022? Emerging market debt expert Raphael Kassin shares his thoughts on the year ahead, as well as what a Russian invasion of Ukraine would look like for the market.

There are a number of experienced female professionals in the fund industry, but many lack the confidence to speak up, which diminishes their chances of being seen. Speaking to Citywire Selector, Manuela Froehlich, co-founder of the Fondsfrauen network, said media training is key in promoting talented female voices in the industry and can help them deal with imposter syndrome. ‘If more female fund managers are visible, this means other female fund managers are watching and thinking: “She is out there, I can do this”.’ Also in this video Froehlich talks about her experience of judging Citywire Gender Diversity awards and what asset managers can do better on gender diversity.

When analysing strategies, fund selectors often consider financial metrics and whether a fund lives up to its stated return profile or investment strategy. However, softer aspects, such as the diversity of the portfolio management team, are often overlooked even though they can lead to better decision making. In this episode of Citywire Selector’s podcast we talk to Nick Samuels, head of manager research at Redington, and Nisha Long, our head of ESG and cross-border research, about their experience of judging the Citywire Gender Diversity awards and how they think fund groups could improve. Samuels also talks about Redington’s internal diversity research and why alternative managers often lag their traditional equity and fixed income peers on these issues.

The Covid-19 pandemic is often painted as solely a healthcare story but other areas stand to benefit and, by extension, investors may soon face an intriguing array of new thematic strategies to capitalise on the most prominent themes. That’s the view of Aanand Venkatramanan, head of ETF investment strategies and index funds at Legal & General Investment Management. In the final episode of this series of Future Thinking, Venkatramanan delves into the themes that came to the fore and what the next wave of innovation could potential involve.

Investors want to go green more than ever before but concerns rage over how to accurately measure what they are doing and whether they are running very quickly in the wrong direction. So, what can they do about it? In this latest episode of Future Thinking, Tatjana Puhan, deputy chief investment officer of systematic boutique Tobam Asset Management, looks at the nuances around ‘raw’ data, the realities of biases creeping in regardless and how processing power will eventually turn the tide. Also in this episode, Puhan talks about her efforts to have more of an impact on the way ESG is discussed by pushing for a role within the UN’s investor network, PRI.

Gary Moglione likes music but he likes royalty revenues more. The specialist investor, who works for Momentum Investment Management, has amassed a portfolio of pop picks that produce a steady stream of returns for his clients. In this latest episode of Future Thinking, the UK-based portfolio manager looks at how CDs were always ripe for disruption, how streaming platforms can stay one step ahead and what that means for the future of how artists get paid.

The outlook for independent asset managers has come under increased scrutiny following a wave of mega-mergers, but Dominic Johnson believes boutiques still have a huge amount to offer even if the challenges are becoming more and more apparent. In this podcast, Johnson, who is CEO and co-founder of Somerset Capital, talked about ‘excessive regulation’, the role of Brexit on London’s boutique culture and why investors would be foolish to focus their attentions solely at the giant fund houses. Also in this episode, Johnson, who is also the former chair of the boutique lobby group IIMI (Independent Investment Management Initiative), said changes to fund structures could also favour companies at the smaller end of the industry.

The term greenwashing is used a lot these days, but it’s not much use for investors in the absence of commonly-agreed definitions of sustainability. This is according to Hortense Bioy, global director of sustainability research at Morningstar, who said greenwashing sometimes results from different perceptions of what is and isn’t green. ‘There are different approaches that meet different investor needs and preferences, and investors shouldn't rely on the label or a name, they should ensure they thoroughly understand a fuzzy ESG objective and investment process. ‘They should also look at the portfolio to check the holdings are in line with the expectations,’ she added. Also in this podcast, Bioy explains why asset managers need sustainability experts and how investors can deal with climate transition challenges.

The ‘emerging middle class’ may be among the most touted topics when it comes to areas of investment potential, but what is the reality of opportunities when it comes to investing with a demographics mindset? In this latest episode of Future Thinking, Henk Grootveld, head of trends investing, Lombard Odier Investment Managers, said there needs to be a keen focused on all aspects of the story, not just what younger generations can bring. Grootveld believes there are sizeable shifts going on in both the developed and emerging worlds. But, with an aging economy and millennial ‘job hoppers’, how can you best harness these switches and will the asset management industry remain a ‘sexy’ career path for future generations?

The plethora of green taxonomies will pose a challenge for global asset managers and could unwittingly lead to greenwashing. Speaking to Citywire Selector Gill Lofts, global sustainable leader at EY, said the sheer number of frameworks defining green businesses in different countries will cause headaches for investment firms. Lofts said fund groups could throw a lot of money and technology at the problem, but juggling different taxonomies is still likely to lead to mistakes. ‘You might have potential greenwashing just through clients misunderstanding what it is they're investing in,’ Lofts said. Also in this podcast, Lofts spoke about the inflation of salaries for sustainability experts and why asset managers still need head of sustainability.