Schroders is committed to independent research. Ultimately, fully seventy-five per cent of the data research we use is produced in-house.
It is our core belief that equity and bond markets are intrinsically flawed. Our managers aim to capitalise on these flaws by proactively adhering to a disciplined, coherent investment approach based on research and backed by our powerful resources.
We are committed to leveraging our global network to the full and using our global research findings to generate potentially competitive returns. To this end, our equity and credit analysts evaluate companies from many perspectives. When determining a business's potential for long-term value creation, our investment professionals carefully consider a company's valuation and earnings power, and their ability to service debt.
Our experienced portfolio managers pursue the research ideas that carry our highest conviction. Using proprietary tools, they construct portfolios that aim to maximise returns with the appropriate level and distribution of risk.
Over our many decades of specialist investment experience, we have continually refined our investment processes to master the complexities of world markets and ensure consistent performance during times of economic and market change.
Careful stock selection lies at the very heart of our service. Typically, the greatest opportunities lie at the stock level, and an information advantage exists for the investment manager best able to research these fundamentals.
Schroders are ultimately long-term investors. For us, establishing the fair value of a stock or security means ignoring market fashions and having the confidence to be contrarian when necessary.
When we determine a company's ability to generate sustainable value and earnings growth, we examine its earnings both quantitatively and qualitatively. We then meet the company's managers to ensure that we fully understand their market and business strategy.
We believe that, over time, the mis-pricing of stocks versus fair value will be recognised by the market, and that our long-term approach to research will lead to long-term outperformance.
We believe that applying a diversified set of long-term investment decisions is the most effective way to benefit our clients. Here again, fundamental analysis is the key to our approach.
When selecting bonds, our investment professionals take small and frequent investment decisions across the widest possible range of uncorrelated opportunities. Our primary objective is to extract a proportion of outperformance from duration, yield curve, sector allocation and security selection. Broadening the investible universe like this helps us deliver an optimal combination of potential risk and return for our clients.
A team of senior investment professionals drawn from each asset class make our asset allocation recommendations. The members of this team then carefully consider the outlook for financial markets, subsequently setting load differences against a global balanced benchmark to establish our house view.
Global research network
Schroders' global network of experienced analysts work in a disciplined and all-encompassing way to identify the true worth of companies.
The scale of our global network enables regular contact with company managers, which is critical to this process. Ultimately, strong interaction and open discussion among our professional analysts and fund managers remain central to our success.
Research is conducted by specialist teams with clearly defined areas of expertise and accountability. Sharing research among these teams enables our investment professionals to compare markets and monitor industry trends.
To bring their local expertise to our global sector teams, our analysts have developed a proprietary software tool – the Global Research Investment Database (GRID). Through GRID we efficiently distribute in-house and external research to all our investment professionals.