In this episode of Fund Selectors, host Lucy Walker interviews Ryan Hughes, Investments Director at AJ Bell.

The discussion covers Ryan’s 25-year career, from his early days in financial advice to building AJ Bell’s investment business from scratch.

Ryan shares insights into understanding liquidity, team dynamics in fund selection, and the role of culture in investment performance.

They also discuss the evolution of asset management and how firms must adapt to growing pressure on fees.

0:03 - Introduction by Lucy Walker
0:22 - Guest introduction: Ryan Hughes
1:10 - Ryan’s career journey: from financial advice to fund research
2:58 - Early lessons in financial advice and pensions
4:16 - The tech bubble and crash’s impact on Ryan’s career
5:53 - Continuous learning in the investment world
6:53 - Building AJ Bell’s investment business from scratch
10:14 - The challenge of starting with a blank slate at AJ Bell
13:03 - Importance of using passive investments with active only when there’s a strong case
14:45 - AJ Bell’s focus on passive and active allocations
15:56 - How AJ Bell works with both DIY investors and advisors
22:06 - Experience and track record as a key factor in selecting active managers
25:05 - The evolving importance of liquidity in fund selection
30:18 - Deep understanding of managers’ philosophy and processes
34:03 - How team dynamics affect investment decisions
37:00 - Red flags in fund management: cultural and organizational issues
44:46 - How active management can remain competitive
49:04 - The success of investment trusts in lowering fees
53:03 - Ryan’s recommended book: The Hour Between Dog and Wolf by John Coates