Director talk: Richard Class

In the boardroom

How would you explain your role to somebody who was new to investment trusts?

The board of an investment trust exists to protect shareholders’ interests. We are independent of the manager and all service providers, and monitor activities without fear or favour. Our role is to ask appropriate questions.

What’s the number one skill you bring to the board?

I am fortunate to have more than three decades of experience in the fixed income markets from several perspectives. Many people shy away from the sector because they believe it is too complex. It’s important to be able to understand and explain clearly how the fund invests across the credit markets.

Who’s been the biggest influence on your career?

An ex-colleague and friend has been my mentor for three decades. Having someone who understands your situation, but who can be both objective and helpful, has been invaluable.

What is the proudest moment of your career?

On the day that sterling left the Exchange Rate Mechanism in 1992, I was able to arbitrage the interest rate and foreign exchange derivative markets by effectively lending money in sterling for three months at 16.5% whilst simultaneously borrowing it back at 16%.

Although it is a long time ago, I learnt a valuable early lesson about staying calm and objective when markets are in turmoil. This has helped me navigate subsequent crises more effectively.

What advice would you offer to new directors?

It is important to recognise that the board is a team, with different areas of expertise.  Understanding the transition from an executive to non-executive role requires learning which questions are appropriate and which are not. A strong board is one where cognitive diversity exists, to optimise the management of risk.

Away from work

What’s your number one desert island disc?

Music is the greatest art form, in my opinion. I listen to hours of classical music every day and am an amateur pianist. Choosing only one disc is very difficult. If I was marooned on a desert island, I would want to be uplifted so I would select ‘The Marriage of Figaro’ by Mozart.

Of all the places you have visited on your travels, which comes top of the list and why?

The setting sun over the golden stones of Jerusalem is hard to beat.

If you had to cook for a dinner party, what would you make?

Slow cooked roast beef with vegetables and roast potatoes, paired with a smooth red wine.

What are you terrible at?  

With age comes greater maturity and a diminution of my impatience!

What do you do for fun?

I play the piano, both solo and with a friend who plays the flute. In the summer, I spend as much time as possible at Lord’s and the Oval watching the cricket.

Richard is also a senior advisor to OptimX, which helps clients to reduce the costs of using financial markets, and an accomplished mentor.