Description:
This video is an interview featuring Emma Wall, Head of Investment Analysis at Hargreaves Lansdown, and Johanna Kyrklund, Fund Manager at Schroders Asset Management. The video begins with Emma and Johanna facing the camera as they both dial into a video call.
Emma Wall:
Hi Johanna!
Johanna Kyrklund:
Hello!
Emma Wall:
So, what first got you into investing?
Johanna Kyrklund:
Well funnily enough, I didn't even know what the area was until I actually got a job. So my degree was in politics, philosophy and economics – I was always interested in the big picture. I heard about this role at Morgan Grenfell in the late 90s as I left university that was really trying to think about markets from the top down, and it sort of sounded like it was aligned with my interests so that's how I first got into investing.
Emma Wall:
And do you think that is a female-centric or female way of looking at investing, the sort of almost more human element versus just the number crunching – or is that too reductive about the genders?
Johanna Kyrklund:
It's hard to tell isn't it? Because, obviously, I've only experienced things as a female, but it's certainly true that I think that investment is about people. It's about our clients, it's about how we as individuals cope with the pressures of the market. So for me the humanity of it is very central to it, and I think maybe sometimes some people from some walks of life are less attracted to this industry, because they don't realise how people-centric it actually is.
Emma Wall:
And how has the industry changed over that time that you've been working? I mean, still to this day I often find I am the only woman in the room – but it's happening less and less. What about your experience?
Johanna Kyrklund:
Yes, I'd say for the first 10 years of my career, I didn't really work with another female investor. And then I joined Schroders and started working with Remi Olu-Pitan, who at the time was a graduate trainee, so that was the first time I was really working with another woman. I think today it's quite normal for us, at least at Schroder's, to have other female investors in the room. So things have changed quite a bit from that perspective, almost unrecognisably so I'd say.
Emma Wall:
And what do you think the benefit of having that diversity of thought in the room does for investment returns?
Johanna Kyrklund:
The investment debates I used to witness in the early part of my career were very adversarial, with people often putting each other down and again, I don't know if that's a male trait or female trait, but that was the dynamic that often was witnessed in investment debates. I found that very off-putting and very difficult to deal with.
Certainly, in the investment meetings we have now within my multi-asset team, I really sought to avoid that kind of mentality. Yes, we want to have a robust debate, but nobody should ever be belittled or humiliated and I think that that is really, that's certainly something we've managed to achieve.
Whether that's because we have more women in our team or a more diverse environment I don't know, but certainly I think that by having a more collaborative approach while still having robust investment debates, you do naturally create a more inclusive environment that brings in all kinds of people from different walks of life, and certainly encourages a much higher level of diversity of thought.
Emma Wall:
Now you're obviously a professional investor, but the lessons you've learned along the way apply to professional and retail investors alike. So, what would you say are your top tips for those individuals who are perhaps just looking to dip their toe in that investment water?
Johanna Kyrklund:
I mean the first thing I'd say is that it's really important for everyone to understand money. It's very fundamental and I think particularly women often think that it's not something for them. There's a book by Merryn Somerset Webb called “Love is not enough”, which I give to all my friends. I really believe that people should care about money – it's very fundamental. That's my first thing – please be interested in it, because it drives everything ultimately in your life. I mean I know that [there are] other things, but it is very important to be in control of your finances – I feel very strongly about that.
[Another] thing that I've learned is that ultimately there's no shortcut to making money. I'm quite boring – people always looking for hot tips from me, but I think it's all about patient investing over the long term, ultimately looking to benefit from that compounding of returns. I think the beauty of compounding of returns is probably something that I've come to appreciate over the years. So that's what I believe in is very long-term investment [and] being quite strategic.
I think that most people if they marked themselves to market on their short-term trading would find they're not adding much value from it.
Emma Wall:
And I suppose also don't be afraid. It can, as you alluded to earlier, be quite a complicating and overwhelming concept, money, but actually it's so important to just get involved, isn't it?
Johanna Kyrklund:
Absolutely, and you know you can get so much information just from reading the papers at the weekend. Thinking through how do I make sure the fees are appropriate for what I'm investing in, and again there are many solutions out there which are designed for people who may be new to investment. But the key is that you do need to take control of your finances.
Emma Wall: Johanna, thank you very much.
Johanna Kyrklund:
Thank you.
The views and topics in this video are not personal recommendations or advice. If you need help choosing investments, please speak to a financial adviser.
Remember if you do choose to invest, the value of investments can fall as well as rise so you could get back less than you put in.
