In order to bring you the best possible user experience, this site uses Javascript. If you are seeing this message, it is likely that the Javascript option in your browser is disabled. For optimal viewing of this site, please ensure that Javascript is enabled for your browser.
Schroders Logo

Schroders House View

This document outlines Schroders’ asset allocation policy, detailing where we are positive and negative.

Published Date List of Documents
16/06/2009Multi-Asset Group: Asset Allocation Views (60 KB)

The rally in risk assets is likely to continue over the summer due to a combination of high levels of liquidity and a better tone to the macro data. However, after the bounce in activity created by the inventory cycle, we continue to believe that markets will pause in an environment where final demand is found to be lacking and corporate earnings remain under pressure.

Against this backdrop, our positioning in risk continues to be mainly via credit, both investment grade and high yield, where spreads, although retreating remain close to historically wide levels. We also have a long position in commodities and emerging market currencies. On balance, we have a neutral exposure to equities, as a small short position is offset through our long positions in the high beta Pacific ex Japan and emerging markets. Following the sell off, government bond yields are beginning to look attractive again, so we have added duration. Elsewhere, we now have a less pessimistic outlook on the UK commercial property market, where prices appear to be close to finding a floor.

When the new trades are added to our existing positions, the net result is that the Global Asset Allocation Committee increased portfolio risk this month, with the reflation trades outweighing the more defensive positions.


Download Adobe Reader

If you do not have Adobe Reader, you can download the software for free using the link above. It is necessary to install Adobe Reader in order to display and download PDF documents.

For professional advisers only. This site is not suitable for private customers.

Issued by Schroder Investments Limited, 31 Gresham Street, London EC2V 7QA. Schroder Investments Limited is the ISA manager and markets unit trust products for Schroder Unit Trusts Limited and the Schroder Investment Trust Dealing Service for the manager, Schroder Investment Management Limited. Schroder Unit Trusts Limited manages Schroders unit trust products. All companies are authorised and regulated by the Financial Services Authority.

© Copyright 2009 Schroders plc

About Us | Contact Us | Site Map