Issue 3, 2015
Unstructured Learning Time
In this edition of Investment Horizons, we examine a range of investment topics that many of our clients are seeking guidance on.
However, being cognizant of today’s constantly-evolving market environment we elected to provide a more high-level, holistic edition with articles that address client objectives – rather than specifi c asset classes.
We begin by addressing the important element of growth in your portfolio. Our Multi-Asset Investment team looks at how economic regimes can be exploited in order to seek a more risk-managed growth solution. On the topic of providing post-retirement income needs, our Global Strategic Solutions team emphasizes the importance of managing the right risk factors, and highlights ways to overcome these risks.
Next, given the headlines that alternatives have made in recent years, we offer a primer on the need for certain investors who rely on hedge funds for diversifi cation to consider a familiar (and more liquid) ‘alternative’ asset class – fl exible fixed income. The similarities may surprise some of you.
Another topic that we believe commands more attention is the potential for environmental, social and governance (ESG) factors to affect investment returns. Our article challenges the perspective that “sustainable investing” means less sustainable returns. Finally, we round out this edition with an in-depth analysis of liability driven investing (LDI) plans and the need to consider an active, value-driven component in order to overcome ‘downgrade bleed.’
We hope you will fi nd something in this edition that kindles your interest. As always, if there is anything you would like to discuss further, please contact your local Schroders representative.