With regards to the UK economy, Round thinks the pound has behaved exactly as predicted and had begun that process a while ago.
“It’s a no-win game, and if you’re investing in a range of companies on an international basis, you are going to win on some and lose on others. What we’re really about are the underlying companies and businesses,” she says.
“My feeling is that sterling will roughly stay where it is. If as a country we are attractive to investors, then I wouldn’t be surprised to see more M&A going on, which may or may not be a good thing.”
The solid legal framework of ownership of companies and property in the UK is why the domestic market and London in particular are still going to be attractive for overseas investors as a centre for safety, in Round’s view.
“Asian and Middle East investors want a safe home and London won’t lose that quality overnight just because they’re not part of Europe,” she says.
In terms of whether or not there will be a recession in the UK in the near future, Round believes there will probably be a slowdown over a period of time, but nothing catastrophic.
“I think there will be a slowdown but I have absolutely no idea how bad it’s going to be, and I don’t think anyone knows. If you read what the media is saying you’d probably be going away and slitting your wrists.”
Looking even further into the future, Round believes responsible investing is the way to go. “It’s not an approach that isn’t supported by performance,” she explains.
“If you think about all the companies that have gone wrong through poor business practices, the reputational damage caused by poor supply chain management is enormous.
“Managing the ESG risks as part of an integrated strategy must be a very good way of making investment decisions. Studies have started to show that over the long run this is the way to create the profit we want for our clients, with principles.”
