Talking at home with…. SVM's Colin McLean

How are you adapting your business to the current climate?

We are fortunate to be in an industry that can work remotely. Over the past couple of years we have pushed more of our work and services onto the cloud and away from spreadsheets and paper. This mainly came from a 2019 project to focus on our edge - understanding mid-cap businesses and ESG - and outsourcing what matters less for clients.

Before the lockdown we had already moved most of our staff to work remotely as a precaution. Since then we have had greater corporate access, with portfolio companies offering more updates that are much easier for them to do without travelling.

Zoom is new to us, but we have found it works well with our clients. In terms of marketing and investment flows, clients and much of the industry are on hold for now. Without face-to-face contact, it is harder to compete for new business.

What challenges have you faced working remotely?

Not everything can be foreseen. Early on, our office suffered a power cut which required someone to travel and manually reset systems. Keeping team spirit without face-to-face contact is a challenge, although Zoom calls can partly compensate.

In a boutique, the style of my own business management involves walking around and regular interaction - so I have needed to adapt. Written reports and phone calls are rarely as nuanced as I would like. I have become better at fixing home Wi-Fi problems - simple necessity.

What are your top tips for working from home?

Routine matters. This should include coffee breaks and time for exercise or a walk. Working through a daily to-do list helps.

Do you think this experience changes our industry for the better in any way?

Initially the industry struggled to get its tone right and find out what genuinely mattered to clients and the public. For once, investment professionals and commentators were stuck for words. As travel and hospitality will likely be later to return, the industry may have to further adapt to online and virtual methods.

It is good for asset management companies to think more about resilience - not just in business models but in investee companies. Those with high debt and low taxes - a feature of some of those backed by private equity - may move out of favour. The experience has been a humbling one for the industry, which could drive better culture and purpose in future.

What do you expect the biggest challenges to be in fund management over the next 12 months?

The industry may give more thought to work-life balance. That could involve less office space with a greater contribution from home-working and hot-desking. There will be pressure on some medium-sized and smaller brokers providing sell-side research, though for a while they will benefit from a wave of fundraising and refinancing by distressed companies.

The industry must re-examine its purpose if it is to remain relevant not only to clients, but to the younger investment professionals it needs to attract.

Interviewer Richard Romer-Lee is managing director of Square Mile

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