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Focus on Funds

Top Portfolio Managers Are Spotting Opportunity

The market outlook, industry trends, and gender diversity topped the discussion among a panel of four leading women in asset management at ICI’s recent General Membership Meeting. In the June 22, 2018, edition of Focus on Funds, Marie Chandoha, president and CEO of Charles Schwab Investment Management, offers highlights of the discussion.

Transcript

Stephanie Ortbals-Tibbs, ICI director of media relations: What do the smartest minds in the investment business have to say about portfolio management trends? At ICI’s recent General Membership Meeting, some of the smartest portfolio managers out there gathered around the table to share their thoughts. Here are some key takeaways from their discussion.

Marie Chandoha, president and CEO of Charles Schwab Investment Management: Well, it’s interesting. Even though each of the women on the panel had a different view of what inning we were in with respect to the economic growth cycle, they all felt that there were great investment opportunities around the world.

Ortbals-Tibbs: Were there some things they picked up on and anything that surprised you?

Chandoha: Well, you know, interestingly, there was a lot of conversation about how Chinese bonds were going to be entering our mainstream indices, and China [Class] A shares were going to be entering the mainstream equity indices. So, many of the panelists talked about, number one, being a great opportunity in terms of a whole new set of companies, but also building up their research departments, because that’s just around the corner—where all those companies are going to enter the indices.

Ortbals-Tibbs: So that’s really a new frontier. You’ll be kind of, as you say, kind of staffing up the research side, and then new opportunities for investors as a result.

Chandoha: Yes, exactly.

Ortbals-Tibbs: Anything else that you picked up on from the investment side of things in terms of yourequities or bonds that other portfolio managers or others in the fund industry might find interesting?

Chandoha: What I found interesting is that my panelists definitely felt that data was an important source of information. But it’s not necessarily the quantity of data—it’s really making sure that you can make connections between that data to find those great opportunities.

Ortbals-Tibbs: One of the other interesting conversations you all had is not only about your own careers, which were great, but about your desire to build a pipeline of the next generation of women leaders and investors in the industry.

Chandoha: We did talk about the fact that less than 10 percent of portfolio managers are women. We’re all very passionate about increasing the diversity of portfolio managers, and building thepipeline of women in the industry. So all of us are working to spread the word in different forms—to particularly women in college—working with nonprofits.

Ortbals-Tibbs: And it sounded [like] you were also doing some mentoring there, which was nice—keeping in mind that, as much as you can give young women skills, you also have to give them encouragement.

Chandoha: Yes, yes. It’s not just about bringing them into the industry, but helping them progress in the industry once they’re in.

Ortbals-Tibbs: So then, standing back and thinking about the whole robust discussion, what do you hear assome other key takeaways for where investment is going, where portfolio management is going, in the industry?

Chandoha: Well, I think one of the interesting passions from all the women on the panel was that there’s a lot of debate about passive and active. And they all feel that active can make a difference for investors—generate performance—and are passionate about the future of active management in our industry.

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