How has coronavirus affected your day-to-day work (from a portfolio and workplace perspective)?
Although my workplace setting is very different, in terms of the day-to-day work, very little has changed. We’re able to access all the same systems from home as we do in the office, and communication with colleagues has been really easy using tools like Zoom. If anything, I’ve found these channels of communication are more targeted and efficient, which helps aid the decision-making process. I do miss more informal chats with my colleagues, but we’ve been inventive with remote socialising, ranging from virtual after work drinks to online bingo.
From an investment perspective, as ever, we continue to seek interesting ideas to support portfolio managers. As a group, we maintain diversified portfolios across different types of risk assets in order to enhance risk-adjusted returns through the market cycle, as well as protect investor capital. Given our diversified strategic allocation, we haven’t made any wholesale asset allocation changes during this period, but investment managers continue to monitor portfolios on a tactical basis.
What has surprised you most about markets during the coronavirus sell off?
While we can try and draw parallels with other periods of heightened market volatility, it’s important to appraise the unique set of circumstances we now face. Although in the past markets have seen drawdowns of a similar magnitude, the most recent sell-off has been characterised by the sheer speed of market drawdowns and across asset classes. It’s likely that the speed of drawdowns has been impacted by increased quant and passive flows which have exacerbated volumes as these strategies move together, de-leveraging and de-risking at the same time.
What are the most important points you want to hear from your holdings at the moment?
Maintaining frequent and regular communication with the funds we own is always at the top of our priority list, and it’s just as important we understand how teams are responding to this recent period of volatility. We’re looking for consistency – we want to see the funds we own maintain their disciplined and robust investment approaches in order to avoid any style drift. In addition, we look to understand the sources of return using detailed performance attribution against an appropriate benchmark.
What do you do for fun when you take a break from working at home?
My new border terrier puppy is keeping me entertained during lock-down. I find it is important to take time away from the screens, especially as the lines between work and home life become more blurred. I’ve been making sure I take breaks to go for a run or do some yoga.
What is your favourite snack when working from home?
Hummus!
Do you have a ‘top tip’ to share on working remotely?
Finding a new routine has been key for me. I find getting up and going to bed at the same time every day really helps, as does taking breaks to create boundaries in your day.
How do you find working remotely during volatile markets?
At Rathbones we have a strict investment process that marries top down macro asset allocation with asset selection. We’re also fortunate to be part of a well-resourced research team across equities, fixed income, collectives, asset allocation, risk, and stewardship. Our investment process and resource has allowed us to transfer our approach readily to a remote working environment, and has put us in a strong position to appraise these volatile markets for the benefit of our clients.
Recommended reading/shows to binge watch while social distancing?
I’ve been watching New Amsterdam and The Crown, which are really good. There are also some brilliant plays you can stream for free from The National Theatre.
Emma Saunders is a senior research analyst at Rathbones
