A 24-minute listen    

Suzanne Hutchins, lead portfolio manager on the BNY Mellon Real Return Fund, visited our studios to talk about the long-term thematic approach of her strategy, why it has a cash-plus benchmark, and how her fine art background helps in her role. 

In a wide-ranging interview, Suzanne explains how she and her team think about the big structural economic trends in terms of the ‘4 Ds’.

These are debt – with the global economy having 40% more debt now than during the 2008 financial crisis; demographics, which impact consumer spending patterns; distortion from technology; and the disruption of financial assets through quantitative easing (QE).

She explains how we are in huge period of transition with rising social and populist activity, and QE having created a big wealth divide between ‘haves’ and ‘have nots’.

“We do think that policy is in need of change because QE hasn’t really worked. Its raised financial asset prices but hasn’t engineered a good global economic recovery.

“Greater fiscal response further down the road means we might get more inflation coming through the system, which again calls for versatility and adaptability.”

Suzanne also talks through how her fund is structured, how it achieves its return target, and how the team swerves illiquid asset classes. She also explains how finance is as much an art as it is a science.

 

See also our video interview with Suzanne, talking about maximising your ‘toolkit’ in a low-return world, here. 

Suzanne was also part of our big Income Debate, which you’ll be able to watch this week on Octo Members.