How working flexibly can give investors an edge
How working flexibly can give investors an edge
I’ve always said that the question of how you create a high performing investment culture is inextricably linked with the individuals involved and how they interact with each other. This is a people business and this view has been at the heart of how we approach investment matters at Schroders.
As a leader of an investment team, I study charts and spreadsheets. But successful investment management is about much more. The real edge comes from understanding how to get the best out of each individual in my team ensuring that, through collaboration, the whole is greater than the sum of the parts.
Seeking to achieve behavioural advantages through an emphasis on accountability, the development of emerging talent and diversity of thought is an important part of how we improve our ability to achieve our clients’ investment objectives.
Like everybody else, Covid-19 has had a major impact on our working arrangements and shown us that greater flexibility is possible thanks to technological innovation. As a result, we have reviewed our flexible working policy, extending it beyond prescriptive phrases, such as “you are entitled to work from home x days a week”.
We have taken a principles-based approach based on trust and pragmatism so that each investment desk may gauge what combination of working from home and in the office can maximise the productivity of the team.
In practice, our fund managers will be combining working from home with coming to the office. As with most things in life, extremes are rarely practical.
The benefits of working from home for a fund manager is that it may provide an environment which is more conducive to contemplation and original research.
Allowing that flexibility also allows us to attract a broader range of people, such as introverts or people who may have responsibilities at home, bolstering our ability to build diverse teams. Trust and flexibility also engender loyalty. The best investment teams are typically built by people who have worked together over a number of years.
Meeting in the office is also essential, however, as it enables us to get the best out of individuals’ collaboration with each other. Being a truly impactful investor requires interactions with other investors; we learn from and challenge each other.
The importance of developing our less-experienced team members must not be underestimated; a lot of their training is on the job, listening and eventually participating in ad hoc conversations on the desk.
The strength of our investment culture partly rests on our commitment to growing our own talent as well as hiring from outside the firm. We also know that the personal relationships we build in the good times help to build team resilience when we face difficult patches of investment performance. Finally, fulfilling our fiduciary responsibility does require oversight and this has to be conducted in person.
Our flexible working policy is a flexible answer to the question: “How do we make the best investment decisions on behalf of our clients?”
Our mission remains clear – to deliver superior investment performance. Understanding that there are many paths to delivering that performance is what has allowed our culture to stand the test of time.
Any security(s) mentioned above is for illustrative purpose only, not a recommendation to invest or divest.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Opinions stated are matters of judgment, which may change. Information herein is believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. Exchange rate changes may cause the value of the overseas investments to rise or fall. For risks associated with investment in securities in emerging and less developed markets, please refer to the relevant offering document.
The information contained in this document is provided for information purpose only and does not constitute any solicitation and offering of investment products. Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments.
Derivatives carry a high degree of risk and should only be considered by sophisticated investors.
This material, including the website, has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.
- Fixed Income
- Johanna Kyrklund
- Alpha Equity
- Changing lifestyle
- Emerging Markets
- Energy transition
- Global Sustainable Growth
- Global Transformation
- Multi-Asset Solutions
- Private Assets
- Smart manufacturing
- Market views
- Asia ex Japan
- Europe ex UK
- Global Emerging Markets
- Fed repression could turn to Fed regret
- Infographic: A snapshot of the world economy
- Why investors should stay positive on China
- Agents of sustainable change: How Hong Kong investors expect companies to be socially aware
- Will decarbonisation be the mega-trend of the next decade?
- Are Hong Kong investors more motivated by morals or money?