Commodities Diversity Champion: Jessica Fung, Investment Strategist

Meet Jessica Fung, a senior investment strategist and critical minerals expert. In our latest Commodities Diversity Champion interview, Jessica shares her career insights, leadership philosophy, and commitment to diversity and inclusion in the investment and mining sectors.

Jessica talks to us about how she draws inspiration from her parents, her journey navigating challenges, and how her strategic leadership and dedication to equity is fuelling innovation at Pala Investments.

HC Group: Can you tell us about your career path that led you to your current role as an investment strategist?

Jessica Fung: My career journey started in sell side Equity Research post my MBA, where I mainly focused on analysing global metals and mining companies and providing stock recommendations to investors. After a few years, I shifted to a commodity strategist role within the same team, which involved forecasting commodity prices and sharing market reports. This transition allowed me to work with a wider group at the bank beyond capital markets clients, such as corporate lending, economics, and foreign exchange desks.

That was a really exhilarating decade in the commodities world because China's capacity was growing at breakneck speed. China was becoming the world's most influential trading partner. During the global financial crisis, I began my career amidst unparalleled price volatility and unprecedented shifts in policy responses. The aftermath of the crisis reshaped how we view rates and asset correlations today. Seven years ago, I moved to the buy side as an investment strategist, focusing on the critical mineral supply chain strategy amid the evolving landscape of the energy transition.

HC Group: What does your role as an investment strategist involve?

JF: My role as a strategist involves acting as a puzzle master of sorts, where I bring together various inputs to form a comprehensive picture. This includes assessing financial market conditions, macroeconomic factors, and individual industry players with innovative technologies and business models. It’s a lot of fun. The goal is to sift through market noise, identify significant structural themes, and pinpoint impactful investment opportunities. Using a global perspective, we delve deep into data and leverage diverse team insights to piece together the puzzle.

Additionally, I oversee some portfolio investments, handling due diligence, negotiations, and investment management. I spearhead ESG initiatives and have served on the Investment Committee to ensure a holistic approach to our investment strategies.

HC Group: Reflecting on your diverse roles across sectors and regions, could you discuss a specific instance where you encountered a significant challenge and how you overcame it?

JF:  I encountered a significant challenge during my time as a commodities strategist on the sell side. In early 2015, I had been travelling to China quite regularly and I was meeting with companies and industry experts. I observed a growing unease within the mining, metals, and refining sectors due to the ongoing anti-corruption campaign. This evolving sentiment, coupled with global economic uncertainties like the austerity program in Europe, led me to publish a fairly negative view on the commodity markets. It was very unpopular. I had sales colleagues questioning my report's commercial viability, bankers criticizing my lack of experience, and clients scrutinizing my analysis intensively. And as I watched commodity prices rising, I questioned my judgment and felt naive for highlighting such a contrarian perspective.

To overcome this challenge, two key factors played a role. Firstly, I maintained conviction in my work, drawing on on-the-ground research, industry insights, and the support of a skilled research team. Secondly, the backing of senior leadership at the firm, who viewed intelligent risk-taking as a pathway to growth rather than failure, proved crucial. Their emphasis on promoting independent thought within research, coupled with a culture of learning from setbacks, provided me with the resilience to navigate the situation.

While the commodity markets eventually faced a multi-year downturn, the experience was both humbling and empowering. Embracing criticism as constructive feedback, continually testing my viewpoints, and relying on a supportive network of peers were integral to my process. Ultimately, the challenge taught me valuable lessons on resilience, conviction, and the importance of defending one's work with confidence.

HC Group: What do you attribute your success to?

JF: I attribute my success to my parents. They took a huge risk by immigrating to the US and Canada in the early 1970s without much support or English-speaking skills. Despite these challenges, they worked tirelessly to build a business and raise our family. My dad, an entrepreneur, founded his own engineering firm, while my mom, a dedicated homemaker, instilled in us the belief that any career path was possible.

Their immigrant journey inspired me and I’m very grateful for the opportunities they provided for me. I've always felt that the only obstacle in my path was myself, given the opportunities my parents carved out of very little. While biases and prejudices may have surfaced in my career, I refused to let that stop me. This experience has fuelled my commitment to advocate for greater diversity and inclusion in the workplace and industry. By recognizing biases, forming support networks, and actively promoting change, I aim to contribute to a more inclusive environment for all.

HC Group: How has your understanding and application of diversity, equity, and inclusion evolved over the course of your career, and in what ways does it inform your leadership style and decision-making?

JF: Picture your workplace like a small circle on a piece of paper. You can either keep that circle very small and expect new employees to squeeze into it, or you can expand it. In the past, ‘inclusion’ was about ‘fitting in’ and squeezing into the small circle. I believe today's concept of inclusion is about expanding that circle, allowing individuals to enrich the firm's horizons and foster a more inclusive environment. There isn’t a limit to how big that circle can grow. We just have to hit the right markers along the way.

In my leadership role, I value every team member's contribution during strategy reviews and brainstorming sessions. I make it a point to ensure that all voices, regardless of personality, expertise, or language proficiency, are heard. By actively engaging every individual and encouraging diverse perspectives, we foster a culture of intellectual curiosity, leading to vibrant discussions and innovative ideas. We get some pretty incredible creative and out-of-the-box ideas, which is a lot of fun. It also makes for better decision-making because opportunities or risks are discussed that might not otherwise have come up. 

HC Group: You played a key role in developing a Responsible Investment Policy and overseeing carbon accounting. How do you ensure that principles of DEI are integrated into responsible investment practices, particularly concerning environmental and social impacts?

JF: DEI certainly falls within the social part of the ESG framework, which should be essential in every investment review.  ESG is a framework to ensure risk assessment is thorough and comprehensive. When it comes to DEI specifically, the key is dedicating the necessary effort to conduct proper due diligence, though valuing DEI in monetary terms poses challenges, as it's complex to quantify its financial impact accurately.

Publishing DEI-related policies and targets is an important first step. However, to truly gauge a company's commitment to DEI, it is important to engage with senior leadership and conduct on-site visits to witness firsthand how these principles translate into practice. This process involves a more subjective assessment and requires extensive groundwork beyond traditional desktop analysis. Therefore, face-to-face interactions, ideally in person but also via video calls, play a crucial role in discerning the authenticity in implementing DEI initiatives within an organization.

HC Group: Given your experiences, what advice would you offer aspiring leaders in the investment and mining sectors regarding promoting equity, diversity, and inclusion within their organizations and industries?

JF: In the finance and mining sectors, leadership has often been associated with assertive personas. I would urge current and future leaders to reconsider how they recognize and reward performance, whether it's through promotions, bonuses, or capital allocation. It's crucial to actively search for individuals or businesses that may not always seek the limelight but possess the potential to add substantial value with the right support.

One approach is to explore non-traditional talent pools or avenues for inspiration. This could involve seeking talent from unconventional backgrounds or attending niche conferences typically overlooked by industry participants to uncover fresh perspectives and opportunities. Stepping out of our comfort zones, even if it involves some risk to the budget, can lead to innovative breakthroughs and new pathways for growth.

Remember, sticking to the status quo may not produce exceptional results or foster evolution within the organization or industry. Embracing new perspectives, supporting unconventional talent, and daring to venture beyond the norm can pave the way for transformative change and sustained progress.

HC Group: Serving as a Member of the Investment Committee and a member of various Boards of Directors, how do you advocate for diversity and inclusion at the decision-making level?

JF: In any decision-making setting, whether it's a boardroom or an investment committee, gathering comprehensive information is crucial for making sound judgments. This begins with asking the right questions to ensure we have all the necessary insights. Then, advocating for diversity and inclusion means we simply have to pose these questions, in order to prompt thoughtful responses and encourage a broader viewpoint.

I have observed that welcoming diverse perspectives into the boardroom naturally fosters a greater appreciation for inclusivity. While engaging with key stakeholders like the CEO and CFO is essential, I also strive to involve individuals from various roles such as the general manager, head of commercial, Chief of Human Resources, and IT lead. Each member brings a unique frame of reference that can enrich discussions with valuable insights. By acknowledging and valuing these diverse perspectives, we create a more inclusive decision-making environment that leverages a wide range of experiences and backgrounds.

HC Group: Are you a mentor or have your ever undergone mentoring?

JF: I have had the opportunity to both serve as a mentor and benefit from mentorship within the organizations I've been a part of, as well as through external initiatives like Women in Capital Markets. The mentors who have had the most profound impact on my career are those situated in different departments or even external to my organization. They have broadened my perspective, introducing me to career paths and possibilities that I may not have otherwise explored.

I firmly believe that mentoring, whether formal or informal, plays a significant role in career development. I also advocate for reverse mentoring, where junior colleagues can inspire with their enthusiasm and fresh perspectives. They bring new trends and industry insights that can challenge our existing investment strategies and broaden our thinking. This cross-industry exchange of ideas can be invaluable in fostering innovation and growth, offering a different lens through which to view our work.

While time is limited, embracing mentorship in its various forms can yield rich rewards, fuelling personal and professional growth in unexpected ways.