June 2024
 

Newton Investment Management senior portfolio manager Julianne McHugh reflects on the varied role of asset managers and industry efforts to attract more female investors.

Julianne McHugh

Julianne McHugh is Newton’s senior portfolio manager for various equity mandates including the BNY Mellon Large Cap Securities Strategy. She also oversees investment processes for products with financial and sustainable objectives. Julianne joined Newton in September 2021, following the integration of Mellon Investments Corporation’s equity and multi-asset capabilities into the Newton Investment Management Group and has 30+ years’ experience in capital markets.

What is your current role and how did this develop?

In addition to serving as head of sustainable equities, I am a senior equity portfolio manager at Newton Investment Management. Throughout my 18+ year tenure within the wider Bank of New York Investments’ division I have managed a variety of regional mandates ranging from value to growth – fundamentally driven and quantamentally-driven. Currently I focus more on US equities and manage both core and sustainable strategies.

How did you first get involved in the investment business?

During my junior year of college I spent a semester studying in London and the program involved an internship.

I requested a role in corporate finance but there were not enough roles available to fill the demand. Instead, I was placed in a small, start-up brokerage firm that specialized in the Asian market. I loved it. I decided right then that I wanted to pursue a career in investment management.

How has your career in investment management evolved?

At the start of my career, I expected to become a career analyst specializing in a given sector. Instead, I ended up rotating from one sector to another every few years while working as a fundamental research analyst. I have spent time covering both growth and typical value sectors, US stocks, emerging markets and developed ex-US markets. This breadth of investment experience has allowed me to become a diversified portfolio manager. At the Bank of New York, I have managed a range of strategies, including US strategies, emerging market and global strategies.

How would you characterize your style as a portfolio manager?

My style is that of a fundamental stock picker. I focus on long-term and secular growth opportunities rather than short-term trading opportunities.

What do you like most about working in asset management and what are the key lessons you have learned from working in the investment industry?

For me, the best thing about asset management is that every day is different. To fully assess an investment opportunity one must understand accounting, strategy, economics, finance, marketing, technology, human capital and then take all these factors into consideration.

However, I have also learned that process matters. It is important to build a process that relies on identifying opportunities with competitive advantages consistent with your stated objective. But no one can be right all the time therefore success requires an openness to seeking different perspectives from other investment colleagues, which can help achieve fully rounded investment decisions.

How can investment managers help encourage more women to invest?

The first step is to develop and offer investment products and vehicles that appeal to women. Some research suggests women are more conservative when it comes to risk and are less likely to jump on the ‘hot dots’ and react impulsively to market volatility. Other studies suggest women tend to generate stronger returns than men over time. As a firm, I believe we offer products that can appeal to a female audience. That said, I fear the industry as a whole was originally built to cater to male investors and could do a better job recognizing the sheer value that could be generated by incorporating a focus on women and addressing the largely untapped market opportunity female investors present.