Helena Morrissey is one of the most well-known figures in the city. Over the next 15 years, she was appointed CEO of Newton Investment Management, and at the age of 35, she managed more than twice the assets.
Now, now chair of Fidelis and Eton College donations, investors and campaigners join Wilfred Frost’s Master Investor Podcast. In a conversation from the gilded market to free speech, she made a brisk diagnosis of UK competitiveness and provided some clear advice for leaders and investors.
You named your name as a bond investor before stepping up Newton. What is your snapshot of today’s G7 bond market? Do we flirt with proper dislocation for a long time?
I’m worried about complacency. Finance rooms throughout developed countries are thin, and the toolkits that help during the financial crisis (especially scale QE) are no longer mobilized in the same way. Yields rose sharply, but mainly in an orderly manner. We don’t have many “cliff edge” moments outside of Japan. This does not mean we are safe. If market participants think they will only fund the government at a higher rate, the spiral can be vicious. We are easily affected by this emotional shift.
You have been fighting for the independence of the central bank for a long time. Threatened?
Independence is precisely because the election cycle is short, and the temptation of political expediency remains unchanged. I managed gilding in the run of the 1997 election; the day when Gordon Brown awarded the Bank of England to operate independence, the market staged one of its biggest rally. That is, independence does not mean running in a vacuum. The Treasury Department, central banks and broader government policies must work together, which is sometimes lacking, especially in the United States.
You’ve talked about career-defining trade before 1997. What has it taught you?
Discipline against the trend. When the yield is over 8%, I start buying long gilding because the market has the worst price. There was a time when I was “wrong” – the bill of exchange told me every day – but I kept retesting the analysis. We held it for many years and when the yield dropped below 3%, we made a profit. The lesson is to keep your head and catch those rare moments when you lose yourself around, and the risk rewards are indeed asymmetric.
At 35, you were asked to run Newton, with five young children at home without formal management training. How did you go from portfolio management to leadership?
Some skills translations: Take you with you, create space for challenges, and focus the team on signals, not on noise. But fund managers rarely get any help in management. Companies often assume that if you can run money, you can run people. That’s wrong. At Newton, we learned to separate responsibilities – maintain investment authority with one person while providing managers to those who are more suitable for this. The result is better for both the client and the culture.
You founded 30% of the club in 2010 to improve the gender balance of the board. What problems are you trying to solve? What have you learned?
After the financial crisis, it was obvious that collective thinking was dangerous. At that time, women had less than one-tenth of the UK board seats. The 30% goal is not arbitrary; it reflects the “critical mass”, the view that minority voices stop feeling and begin to influence the outcome. Progress has since been achieved primarily through voluntary action rather than quotas. But Dei’s efforts did appear in some places. Terminology and fingering make the initiative feel exclusive. Purpose always makes better decisions through cognitive diversity and equal opportunities for talent.
Freedom of speech returns to the board agenda, usually with some fatigue. How should leaders navigate?
By modeling a confident civilization. If people are afraid to raise embarrassing questions or express unpopular opinions, innovative organizations cannot be built. We allow disagreements to become personalized. Leaders must reiterate a simple contract: welcome strong debates; Ad Hominem attacks are not. Inclusion should mean that everyone who contributes has a say, rather than one group to another.
London’s status as a financial center is a concern for many years. Where are we now-what will you do?
We are relying on stored energy. London still has top-notch people and global prospects, but the risk rewards that challenge the status quo have deteriorated. There are too many processes, too few permissions to allow for attempts, mistakes and improvements. Two priorities. In the short term, through taxation and tone, it is a signal that the creators of Britain want to grow to live and build here. Personal tax burden and daily frictions push talents abroad. In the long run, enable the new competitive goals of regulators to be achieved. This does not mean a return to the “light touch”, but it does mean timely, predictable decisions and a culture that can innovate rather than suffocate.
You were interviewed by the Governor of the Bank of England. If asked, would you do this?
In any era, this is honor. My broader view, though, is about how we appoint leaders. When the selection panel is drawn from the same small circle, you inevitably copy the status quo. If you want different results, you can expand the aperture – no matter who you consider and how to weigh the evidence of leadership.
Technology once again powers the market and polarizes them. Are we in the bubble area?
Some readings make people feel bubbled: the action of a large hat means perfect results, minimal execution risk and no competition. I am optimistic about innovation and capitalism’s ability to allocate capital to great ideas. But there was no straight up. Geopolitics is full of dilemmas; supply chains are reconnected; capital costs are no longer close to zero. Investors should maintain a weather focus on valuation and concentrated risks.
You’ve always felt candid about the obstacles you encountered in the early days – as a woman without urban connections, returning from maternity leave and the only woman in the 16 Strong team. What has changed?
culture. We no longer think it is acceptable to entertain customers by excluding colleagues. We talk more about money, careers, and choices more openly. But progress cannot be guaranteed. We must continue to re-list the basics of business and the included human cases and focus on what works within the team, rather than a commitment to glossy.
What are your career advice?
“Jump before you look.” It runs against the usual legal counsel, but too many talented people (especially women) have studied the decision to die and will never seize the opportunity. At 59, I met more peers who didn’t feel as sorry as those who regretted and failed. Calculated risks are part of any fulfilling career.
And investors?
Kipling Rules: Keep your head. Don’t panic, or pour in arrogance. Establish diversified, stable exposure and then prepare to take decisive action at important moments. These transactions don’t come often, but they define careers.
Finally, what do you want the UK business community to do this year?
Talk less about decline and more about delivery. Hiring potential. Reward smart risks. and rebuild the habit of disagreement. If we can do that – in corporate and public life, we will make better decisions and accelerate growth. Finally, that’s the point.
