Fund Selectors

Fund Selectors #7 - Ben Conway, CIO and Head of Fund Management at Hawksmoor

In this episode of Fund Selectors, host Lucy Walker sits down with Ben Conway, CIO and Head of Fund Management at Hawksmoor. Ben shares deep insights into Hawksmoor’s fund selection philosophy, including their unique approach to portfolio construction, the importance of absolute returns, and how they think about valuation through the lens of a fund’s own history. The discussion covers the role of investment trusts, boutique managers, and why they avoid strategic and tactical asset allocation. Ben also speaks candidly about the campaign to reform investment trust cost disclosures and the unintended consequences of regulation on fund buyers. This wide-ranging conversation reveals what it truly means to build portfolios with discipline, curiosity, and a firm commitment to investor outcomes. 0:03 - Introduction by Lucy Walker 0:20 - Guest introduction: Ben Conway 2:22 - Hawksmoor’s bespoke fund research approach 3:59 - Rejecting strategic and tactical asset allocation 5:11 - Portfolio cheapness relative to its own history 6:42 - The importance of margin of safety 8:00 - Growth vs value and valuation dispersion 12:50 - The power of qualitative fund manager interviews 13:59 - The question every manager must answer: “Why now?” 17:28 - What good sales engagement looks like 21:05 - Portfolio construction and position sizing 24:55 - Common-sense mean variance optimisation 26:28 - Role of alternatives and fixed income 27:55 - Why Hawksmoor avoids strategy-based funds 30:02 - Ideal fund manager traits and boutique preferences 35:04 - Proportion of boutiques in Hawksmoor portfolios 39:02 - Turnover and portfolio changes through time 41:09 - Views on passive investing and the active/passive debate 45:09 - Investment trust cost disclosure campaign 52:58 - Statement of operating expenses initiative 55:00 - Concerns about inclusion of investment trusts in CCI regime 58:07 - Book recommendations and reflections on investment learning 1:00:11 - Behavioural bias: forming judgments too quickly 1:02:27 - Final question for next guest

Fund Selectors #6 - Shakhista Mukhamedova, Head of Global Manager Research Europe, RBC Brewin Dolphin

In this episode of Fund Selectors, host Lucy Walker speaks with Shakhista Mukhamedova, Head of Global Manager Research Europe at RBC Brewin Dolphin. Shakhista shares insights from her unique career path, starting in structured products before moving into fixed income and alternatives. The discussion explores the evolution of fund research, the challenges of professionalising manager selection, and the importance of investment philosophy and behavioural analysis in fund research. Shakhista also reveals how her team distils complex information to identify high-conviction fund managers and why gut instinct can sometimes be as crucial as data. Plus, she shares her favourite book recommendations and discusses the behavioural biases fund selectors need to overcome. 10:15 [https://changingdigital.slack.com/archives/DG53HBET0/p1739484929456359] Lucy [0:03] – Introduction by Lucy Walker [0:22] – Guest introduction: Shakhista Mukhamedova’s career path into fund research [1:40] – How Shakhista became interested in markets and investing [5:09] – Career journey at RBC Brewin Dolphin: from structured products to fund selection [9:54] – Expanding into infrastructure, property, and alternatives [13:02] – Leading a global manager research team: defining the team’s purpose [17:02] – Evolution of manager research: from informal selection to professionalisation [22:31] – The four pillars of fund research: people, philosophy, process, and performance [23:45] – Why investment philosophy is often overlooked but crucial [26:08] – The importance of understanding behavioural finance in fund research [31:38] – When a fund “feels” wrong: the role of gut instinct in research [37:01] – How Shakhista’s team collaborates across asset classes and investment solutions [40:23] – Refining the due diligence questionnaire: from 50 pages to a distilled focus [47:00] – Why Brewin Dolphin reduced its recommended fund list to high-conviction picks [51:35] – Book recommendation [57:22] – A past fund research mistake and lessons learned [1:04:26] – Shakhista’s question for the next guest

Fund Selectors #5 - Matthew Piro, Global Head of Oversight and Manager Search, Vanguard

In this episode of Fund Selectors, host Lucy Walker interviews Matt Piro, Global Head of Oversight and Manager Search at Vanguard. Known primarily for their passive strategies, Vanguard’s $750 billion in actively managed assets is a surprise to many. Matt shares insights into his team’s rigorous process for selecting external sub-advisers, the long-term philosophy underpinning their approach, and the challenges of navigating periods of underperformance. The conversation explores how Vanguard structures its manager research team, the role of deep analysis in evaluating managers, and the importance of balancing consistency and adaptability. A must-listen for those interested in active fund management and sub-advised strategies. Timestamps: * [0:03] Introduction by Lucy Walker * [0:20] Guest introduction: Matt Piro, Global Head of Oversight and Manager Search at Vanguard * [0:44] Vanguard’s commitment to active management: surprising industry perceptions * [1:57] Overview of Matt’s role and team structure at Vanguard * [3:26] The long-term approach to manager selection and evaluation * [5:46] Balancing specialisation and breadth within the research team * [7:50] Key elements of Vanguard’s due diligence process * [10:30] Insights into behavioural analysis and skill-based attribution * [12:25] A case study on identifying style drift in managers * [17:30] How team dynamics drive decision-making in fund oversight * [22:45] Adapting team structure to industry changes and new perspectives * [29:04] The importance of search readiness and maintaining a strong manager bench * [36:11] Case study: constructing a core global equity fund with manager diversification * [43:34] Lessons learned from evaluating managers through volatile periods * [49:02] Encouraging open dialogue and challenge within the research team * [54:05] Matt’s book recommendation * [57:02] Matt answers: “What is your biggest bugbear in manager research?” * [1:00:02] Matt poses a question for the next guest: What’s a manager research mistake you’ve learned from?

Fund Selectors #4 - Hannah Evans, Head of Manager Research at Omnis Investments

In this episode of the Fund Selectors Podcast, host Lucy Walker interviews Hannah Evans, Head of Manager Research at Omnis Investments. The conversation centres around fund idea generation, manager selection, and the processes Hannah’s team undertakes when overseeing £11 billion of assets across various mandates. Key themes include the meticulous approach to filtering managers, adapting processes to each search, and the importance of transparency from asset managers. The episode highlights the challenges of balancing fund and manager oversight, navigating manager transitions, and Hannah’s focus on building long-term, sustainable relationships with managers. Timestamps: 0:04 - Introduction by Lucy Walker 0:23 - Guest introduction: Hannah Evans 3:04 - Hannah’s journey into fund research 5:00 - Meeting with fund managers 7:00 - Managing Omnis’ funds 10:07 - The unpredictability of manager changes 12:24 - Conducting a recent manager search at Omnis 16:30 - Filtering down over 300 fund candidates 19:00 - The “RFP light” process for narrowing down managers 23:39 - Importance of consistent process and long-term conviction 30:06 - Identifying key person risk in fund managers 37:00 - Feedback to asset managers: honesty is key 49:05 - Closing remarks on fund selection

Fund Selectors #3 - Ryan Hughes, Investments Director at AJ Bell

In this episode of Fund Selectors, host Lucy Walker interviews Ryan Hughes, Investments Director at AJ Bell. The discussion covers Ryan’s 25-year career, from his early days in financial advice to building AJ Bell’s investment business from scratch. Ryan shares insights into understanding liquidity, team dynamics in fund selection, and the role of culture in investment performance. They also discuss the evolution of asset management and how firms must adapt to growing pressure on fees. 0:03 - Introduction by Lucy Walker 0:22 - Guest introduction: Ryan Hughes 1:10 - Ryan’s career journey: from financial advice to fund research 2:58 - Early lessons in financial advice and pensions 4:16 - The tech bubble and crash’s impact on Ryan’s career 5:53 - Continuous learning in the investment world 6:53 - Building AJ Bell’s investment business from scratch 10:14 - The challenge of starting with a blank slate at AJ Bell 13:03 - Importance of using passive investments with active only when there’s a strong case 14:45 - AJ Bell’s focus on passive and active allocations 15:56 - How AJ Bell works with both DIY investors and advisors 22:06 - Experience and track record as a key factor in selecting active managers 25:05 - The evolving importance of liquidity in fund selection 30:18 - Deep understanding of managers’ philosophy and processes 34:03 - How team dynamics affect investment decisions 37:00 - Red flags in fund management: cultural and organizational issues 44:46 - How active management can remain competitive 49:04 - The success of investment trusts in lowering fees 53:03 - Ryan’s recommended book: The Hour Between Dog and Wolf by John Coates