Sunniva Kolostyak: Welcome to Morningstar, where I’m today joined by Saida Eggerstedt, the head of sustainable credit at Schroders.
Saida, thank you very much for joining today. You’ve been mentioned in a Morningstar report recently as one of the top UK female fund managers. Let’s start with talking about the funds that you manage and the people that you work with.
Saida Eggerstedt: Thank you. You’re very kind. I really focus on sustainable products, you know, products like Sustainable Euro Credit, which is a sustainable fund with very meaningful, sustainable investment, looking at the European investment grade market, but also opportunities across the credit universe.
I also manage Carbon Neutral Credit. Just like Sustainable Euro Credit, it has now five years performance track record, Carbon Neutral grade has three years performance track record. At the same time, really focuses on climate transition, and it’s a higher, deep green fund that is Article 9. And I’ve been also working on Social Impact Credit for more than three years, which really looks at SDGs and impact opportunities globally. So these are the main portfolios that I manage day to day, that’s my day job.
How Is Schroders Navigating Market Volatility?
Kolostyak: Given the current volatile macroeconomic environment, where are you currently looking to find opportunities?
Eggerstedt: You are very right. We certainly had a very volatile start in the year. And there is lots of political, new information that’s being published every day. But in general, we actually like volatility because that gives us investment opportunities at higher spreads or higher yield. We are positive actually on economic surprise in Europe at this time. So we are looking for some cyclical sector opportunities. Starting with the auto sector where the spreads have really widened, and we have engaged and we see some names.
We’ll be doing credit repair this year. We’re also looking at some sustainable, basic materials sector, whether it’s aluminum. We’re also looking at utilities sectors, which normally have to issue a lot as they transition to renewables and that gives the portfolio some duration. But at the same time, we are also looking at smaller companies, smaller and mid-sized companies also from an impact point of view, because these names are not really analyzed that much for ESG. We engage with them and some of those companies could be in innovative technology or some services, which are also important, given otherwise the economic outlook and the consumer are pretty healthy at this point.
We look for opportunities across rating spectrum, across—we are a global house so really over the global market, in different maturities. And we try to engage with the companies so that they also improve, over time, their financials and sustainability, which gives us some opportunities. We also think that the social bond market, even the blue bond market and some green bonds this year, could come from less known names. And it really could be interesting to broaden the spectrum of investments.
How Women Can Thrive in Asset Management
Kolostyak: Can you also just mention some of the obstacles that you’ve had to overcome to get to where you are, and what advice do you have for younger women now trying to enter into this industry?
Eggerstedt: I think there is no secret that it remains a male-dominated industry. It’s not a question of whether it’s good or bad, but that’s the reality. And I think up to this day, sometimes I think that the male colleagues, they might have the same performance, but they have a lot more confidence. But, you know, on the other hand, maybe this lack of confidence also make us women work more, with more sincerity. And we are very detailed analysts. And as I changed companies are went into new cultures, new languages, I had to really show that the work that I do is good enough, that over time, one could get rid of those distractions, the other things about me, and really concentrate on the quality of the work. But that takes some time and dedication and, speaking up, I guess, at the right moment.
It was also important for me to, even though it’s male dominated, sometimes to find people who will promote women, but also women who’s had children. People who get children, their brain might phase out for a while because it’s a completely new experience. But on the other hand, one can also have a very broader view and even more responsibility. So one really comes back to the job.
I would advocate that it is possible, with lots of coordination also with the partners and the rest of the family, but also the children. They understand the work—and do explain that work, because sometimes you work in the finance industry and we might not explain it to our friends or family what we are doing. But that’s also something that could add value over time because you’re making other people financially aware. And on the other hand, one doesn’t feel so much out of touch which one can, as one is always trying to make money.
One advice is also to take care of one’s health. Something I didn’t always implement, given that I was working as a fund manager full time, also doing my CFA exams and then also volunteering for CFA grading. But someone can also volunteer for something. You know, it’s it’s different for different people, but you find a peer group, sometimes within a professional peer group, outside direct work.
That’s also nice to really exchange views and understand the other areas of finance rather than just one’s own work. But in general, be very open to new ideas, new people, let others also challenge, sometimes take a contrarian view. And in sustainability, especially given it’s very much developing, to keep a positive point but also really communicate to the other stakeholders. In my case, also, the companies we’re investing in, all the sovereigns. Keep on learning as much as possible, not be rigid. But on the other hand, also be very true and sincere to the final investors because, you know, we manage other people’s money.
Kolostyak: Saida, thank you very much for joining us today. For Morningstar, I’m Sunniva Kolostyak.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
