Thought Leadership (Professional Only)

Investment Horizons: Issue 5

Welcome to the fifth edition of Investment Horizons, our regular look at the vital themes for institutional investors.

2 May 2016

Does “Big Food” face a showdown over sugar?

The rise in sugar consumption and its link with ill health could create serious problems for the food and beverage sector. There are close parallels with the issues faced by the tobacco industry, and that could spell bad news for investors.

The case for small caps in a world of disruption and deflation

The underperformance of small caps has prompted suggestions that the traditional arguments in their favour no longer hold. But in the current economic circumstances, we argue that small caps can bring unique characteristics to a wider investment portfolio.

Consistent returns are the key to better pensions

Financing retirement is one of the biggest problems faced by individuals. We’ve looked at more than 300 years of UK investment history and concluded that the best results come from minimising investment surprises, rather than maximising contribution levels.

Is inflation overstated?

Official measures of inflation are crucial to the smooth functioning of markets, but there is strong evidence to suggest that official benchmarks have consistently overstated the rise in the cost of living. This is likely to have serious ramifications for investors.

Primer: taking correlations out of the black box

We look at the shortcomings of correlation and suggest that overcoming them requires us to make some educated forecasts about what the future will be like and then to adjust our expectations accordingly.

Read the full report

Investment Horizons: Issue 5 28 pages | 1,727 kb



  • Fixed Income
  • Multi-Asset
  • Responsible Investment
  • Pensions
  • Interest Rates
  • Volatility
  • Thought Leadership

Important Information: The views and opinions contained herein are those of Schroders’ Investment team, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.  UK: Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA, is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored. Further information about Schroders can be found at US: Schroder Investment Management North America Inc. is an indirect wholly owned subsidiary of Schroders plc, a SEC registered investment adviser and is registered in Canada in the capacity of Portfolio Manager with the Securities Commission in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan providing asset management products and services to clients in Canada. 875 Third Avenue, New York, NY, 10022, (212) 641-3800.