Peter Harrison - CEO of Schroders | Podcast | In Good Company | Norges Bank Investment Management

Welcome to another exciting episode of "In Good Company!" Today, we’re thrilled to have Peter Harrison, the CEO of Schroders, one of Europe's largest asset managers with an incredible legacy of nearly 200 years. Peter shares his insights on navigating the constantly evolving investment landscape, which includes shifts toward private markets, the impact of AI and technology in asset management, and the challenges facing the UK market today.

Nicolai Tangen, our host and CEO of Norges Bank Investment Management, delves deep into Peter's experience, offering listeners a closer look at how Schroders maintains its competitive edge in this fast-paced industry.

Key Takeaways from Peter Harrison

• Long-Term Ownership: Peter emphasizes the importance of committed ownership through family backing, allowing for a long-term view essential for navigating change and evolving business needs.
• Industry Shifts: Significant transitions such as the rise of passive management, the boom in private equity, and the increasing focus on sustainability challenge conventional asset management strategies.
• Embracing Risk: Risk-taking is deemed necessary for attracting investment, especially with the UK market's decline due to regulatory changes and rising competition from abroad.
• The Importance of Technology: Schroders has made substantial investments in technology and data analytics to stay ahead, recognizing that this is vital for growth in today's market.
• Building Resilient Teams: Peter discusses the necessity of great leadership, cultural adaptability, and mentorship in building effective investment teams.

Navigating Change in the Investment Landscape

The investment management industry is undergoing massive transformation. Peter highlights several key trends:

• Shift Toward Private Markets: There is a marked movement away from public companies, with a growing focus on private equity and private debt.
• Technological Disruption: Advances in AI and data analytics are reshaping how investment decisions are made, with a strong emphasis on utilizing these tools to inform strategies.
• Sustainability and Governance: Governance practices are evolving, with heightened scrutiny around corporate behaviors and a stronger emphasis on sustainability metrics.

The UK Market's Changing Dynamics

Peter discusses the unique challenges faced by the UK market:

Peter recognizes a shift in risk appetite among investors, suggesting that while there are challenges, the climate is becoming more favorable for change.

Leadership Insights from Peter Harrison

As a seasoned leader, Peter reflects on his transition from investor to CEO:

• Understanding Leadership Style: He emphasizes the importance of being authentic and connecting with teams at all levels.
• Cultural Change: Peter believes in creating an open, honest environment where mistakes are opportunities for learning, essential for team development and innovation.
• Continuous Learning: As a mentor, he encourages young professionals to engage broadly and think critically about their career paths and personal happiness.

Overall, Peter underscores the importance of adaptability, strong cultural foundations, and nurturing talent to drive growth.

Advice for Young Professionals

Peter’s final thoughts for young people looking to navigate their careers:

"Do not assume that climbing the greasy pole is the route to happiness. Engage with the world outside your immediate environment and develop a vision for what you truly want from your career."

He's passionate about fostering a new generation of leaders who value meaningful opportunities over traditional metrics of success.

Conclusion

Thank you, Peter, for your insights and for your ongoing collaboration with Norges Bank Investment Management over the years. It's been a pleasure to dive into the changing landscape of asset management and gain perspective from one of the industry's leaders!

Stay tuned for more inspiring conversations on "In Good Company," where we continue our mission of transparency and understanding of global investment strategies.

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