Investment Horizons: Issue 3

18 May 2015

Thought leadership from Schroders: widening investors’ horizons.

We’re pleased to announce the publication of the latest edition of Investment Horizons, our regular look at vital themes relevant for institutional investors. In light of the many challenges they face, we have sought in this edition to view the investment horizon through a wider lens than usual:

Building and measuring outcome-oriented investment strategies

For too long there has been little connection between real-world investment problems and the way portfolios built to solve them are measured. We suggest an alternative to capital-weighted benchmarks which could provide a reality check on whether objectives are achievable.

Why focusing on risk can result in better wealth preservation

Painful losses from the financial crisis have led to a surge of interest in wealth preservation. Is it possible to strike a balance between generating sufficient growth and protecting invested capital? We have developed a portfolio solution that aims to achieve both goals.

Listed real estate: an unexpected buttress against rising rates?

After a strong year for listed property, many are wondering whether the sector can continue to grow with a possible rise in interest rates on the horizon. We argue that listed property can not only grow, but also be a useful diversifier for investors seeking a way to gain global exposure to a liquid asset class.

Can investors do well while also doing good?

Events like BP’s Gulf of Mexico oil spill are stark reminders of the risks of ignoring environmental, social and governance issues. Even so, many investors are reluctant to embrace “sustainable” investing, fearful of the effect on performance. We highlight recent research that suggests such worries may be misplaced.

Have cars reached the end of the road in the developed world?

The fall in oil prices may provide a short-term boost for car sales, but we believe the market is actually in structural decline, at least in developed markets. Future growth will only come from emerging markets. For car companies to thrive in this environment, they need strong brands or competitive costs, or both.

The full edition of Investment Horizons is available below.

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Investment Horizons: Issue 3 28 pages | 1,502 kb

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