Global Multi-Asset Portfolios

Low cost, actively managed multi-asset funds for a changing world

Dynamic

Dynamic asset allocation combined with active stock selection to adapt to a changing world.

Active management at passive prices

We cap the Ongoing Charge Figure (OCF) at 0.22%.

Best of Schroders

Leveraging the resources of our multi-asset and economics teams and over 700 investment professionals.

Diversified

Five global multi-asset funds, well diversified by asset class, geography, sector and style.

Service

We help you stay in control of client conversations with regular updates, webinars and a dedicated sales team.

Objective and risk considerations

Objective

The funds aim to provide capital growth and income by investing in a diversified range of assets and markets worldwide with a target average annual volatility (a measure of how much each fund's returns may vary over a year) over a rolling five year period. This target volatility is fund specific and varies between 30% to 90%* of that of global stock markets (represented by the MSCI All Country World index), depending on the investment objective of each fund.

*Please refer to the Prospectus for the individual risk profile volatility target.

Risk considerations

Counterparty risk: The funds may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole. Credit risk: A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless. Currency risk: The funds may lose value as a result of movements in foreign exchange rates. Derivatives risk: Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to manage the funds efficiently. The funds may also materially invest in derivatives including using short selling and leverage techniques with the aim of making a return. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the funds. High yield bond risk: High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk meaning greater uncertainty of returns. Higher volatility risk: The price of the funds may be volatile as it may take higher risks in search of higher rewards, meaning the price may go up and down to a greater extent. Investments in other collective investment schemes risk: The funds will invest mainly in other collective investment schemes. Liquidity risk: In difficult market conditions, the funds may not be able to sell a security for full value or at all. This could affect performance and could cause the funds to defer or suspend redemptions of its shares, meaning investors may not be able to have immediate access to their holdings. Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested. Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in loses to the funds. Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve. 

"We navigate a changing world by dynamically adjusting our allocations to different asset classes, selecting the best companies around the world and importantly delivering this at the cost of a passive fund."

Tara Jameson

Fund Manager, Multi-Asset Investments

Making the most of opportunities in the market

Philip Chandler, Head of UK Multi-Asset and Tara Jameson, Fund Manager, introduce the Global Multi-Asset Portfolios.

Meet your local Schroders contact

Allocating assets dynamically

The funds benefit from three stages of decision-making.

Global Multi-Asset Portfolios - strategic and dynamic asset allocation

A finely-tuned balance

To help us make the right decisions with strategic asset allocation, our extensive asset class research forms the base of our investment philosophy. By understanding how assets typically behave over time, we can build portfolios that maximise returns for each level of risk.

There is a choice of five funds. At one end is the Cautious Portfolio, which is designed to be more defensive with a higher weight to assets such as bonds and cash. At the other end there is the Adventurous portfolio, which is designed to deliver longer-term returns through a higher holding in growth assets like equities. Each of the portfolios in the range takes a different level of risk, which means you can choose the one that best meets your clients' needs.

An illustration of how our strategic asset allocation may look is below.

Strategic asset allocation for the Global Multi-Asset Portfolios

Funds that adapt to a changing world

We take a dynamic approach to adjusting the asset allocation of the portfolios relative to their long-term strategic positions. Each portfolio has enough flexibility to dynamically allocate assets to both take advantage of opportunities and also avoid risks presented by the markets.

Active stock selection

We combine both active and passive investment approaches for stock selection. When we decide on an active approach, we have access to an extensive range of Schroder funds. We aim to combine funds with differing processes and styles in order to achieve our performance objectives whilst balancing the portfolio’s risk.

For our passive selection, we use index ETFs, equity and bond futures and FX forward contracts. These allow us to dynamically adapt to market conditions to implement our views, hedge exposure and manage risk.

Risk mapped

The portfolios are independently risk mapped by Distribution Technology, Defaqto and Synaptic.

Global Multi-Asset Portfolios Risk Mapping

And independently rated

Defaqto-risk-focused-fund-family

Source Defaqto as at February 2024.

A Defaqto Multi-Manager Return Focused Fund (5 Diamond)

The Cautious, Moderately Cautious and Balanced Portfolios have been awarded a 5 Diamond Defaqto rating.

A Defaqto rated Multi-Manager Return Focused Fund (4 Diamonds)

The Growth and Adventurous Portfolios have been awarded a 4 Diamond Defaqto rating.

Rated A premium Fund by Dynamic Planner

The Moderately Cautious Portfolio has been named a ‘Premium’ fund by Dynamic Planner.

Scopic Multi Asset DNA Reports

Awarded to the full range

FAQs

Why does dynamic asset allocation make sense for clients?

Dynamic asset allocation allows portfolios to move promptly to reflect any changes in the economic or market environment. The Global Multi-Asset Portfolios are dynamically managed and incorporate Schroders’ latest asset allocation views. Having the flexibility to make changes to the asset allocation promptly is important whatever the investment climate but even more so during periods of market volatility. That is because dynamic asset allocation can help to mitigate losses and make the path of returns smoother. For advisers and their clients, such an approach offers the reassurance that the assets are being continually monitored and managed in the best possible way in line with a client’s risk tolerance and objectives.

With interest rates high and inflation even higher, what is the benefit of using a dynamic asset allocation strategy over holding cash?

Cash is a great asset class for short-term or rainy day savings and for the first time in years savers are enjoying a reasonable return on their money. But holding cash is not the best approach for those who want to grow their wealth over the long term. Historically, returns on cash have failed to keep pace with inflation, whereas equities have significantly outperformed cash over the long term and offer the most likely opportunity to beat inflation over a long time horizon. Equities are important for investment growth over a multi-year time horizon, but so too is being diversified and dynamic. The Global Multi-Asset Portfolios are fully diversified across asset classes, geography, sector and investment style, and they benefit from active management in both their asset allocation and stock selection.

What is the difference between strategic asset allocation and dynamic asset allocation?

The strategic asset allocation of a portfolio is the main factor that will drive returns over the medium to longer term and should closely reflect both what a client is hoping to achieve and their attitude to risk. To get this first step in portfolio construction right, we use the long-term capital market assumptions from our in-house economics group, which include assumptions on the level of risk of each asset class and the relationships between them. It also includes a long-term expected return based on factors that drive economic growth, such as increasing population size and improving productivity. From this, we build a series of graded strategic allocations to reflect the needs of different clients from the most adventurous to the most cautious. Yet investment markets move constantly due to external events, cyclical changes in the economic environment and shifting investor sentiment. This means there will inevitably be times when individual asset classes deliver returns towards the negative extreme of what can normally be expected. There will also inevitably be some moments when the way that asset classes behave in relation to one another doesn’t conform to what would be expected in normal conditions. The answer is to combine a solid underlying strategic asset allocation framework with a dynamic approach to asset allocation, which addresses cyclical and event driven changes in market risks and opportunities. This is the approach that the Schroder Global Multi-Asset Portfolios take.

Traditional low-cost products can struggle in certain market environments. What makes the Schroder Global Multi-Asset Portfolios different?

During certain periods, equities and bonds have fallen in tandem and some markets around the world have been disproportionally affected. We designed the Global Multi-Asset Portfolios to overcome such challenges. The portfolios avoid the rigid asset allocation and home bias that has been commonplace in some other low-cost multi-asset strategies. Although the portfolios are predominantly invested in global equities, bonds and cash, we can also allocate to commodities, currencies, property and other alternatives when we have conviction in these assets. Importantly, the mix of assets in each portfolio is dynamically managed within its risk parameters to take opportunities and avoid risks as they are presented by the markets.

What do I get for my 22 basis points?

The portfolios give advisers and their clients the best of all worlds – active multi-asset investing at passive prices. With the Global Multi-Asset Portfolios, clients can invest in a fully diversified multi-asset portfolio, dynamically managed to adapt to an ever-changing investment environment, at a price that is capped at 0.22%. They retain more of the profits their portfolio makes, while harnessing the best of Schroders, from the specialist resources of our multi-asset and economics teams to the capabilities of more than 700 investment experts in equities, fixed income and alternatives around the globe. Advisers get a choice of five carefully conceived and dynamically managed portfolios, ranging from Cautious to Adventurous, designed to meet the risk profiles and objectives of a wide range of clients. They also get all the associated benefits of partnering with an asset manager with our scale and strength in multi-asset investing, from trust and confidence in our single-fund solutions to high quality reporting and other resources that can help them to build better client relationships.*

Literature

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Quarterly bulletin

Adviser case studies

Douglas Mitchell, Director at Wealth Professional CFP

Scott Gallacher, Chartered Financial Planner and Director at Rowley Turton (IFA) Ltd

Owen Cook, Partner and Independent Financial Adviser, Ablestoke Wealth Management

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Global Multi-Asset Cautious Portfolio

Global Multi-Asset Moderately Cautious Portfolio

Global Multi-Asset Balanced Portfolio

Global Multi-Asset Growth Portfolio

Global Multi-Asset Adventurous Portfolio

Important information

The Global Multi-Asset Portfolios were previously called the Tactical Portfolios. The name change became effective on 2 May 2023. *Please note that the portfolios may invest up to 100% of their assets in Schroder funds.

Schroder Investment Solutions is the trading name for the following products and services: the Schroder Blended Portfolios, the Schroder Global Multi-Asset Portfolios, the Schroder Managed Defensive Fund, the Schroder Income Portfolio, the Schroder Active Portfolios, the Schroder Strategic Index Portfolios and the Schroder Sustainable Portfolios. The Schroder Blended Portfolios, the Schroder Global Multi-Asset Portfolios, the Schroder Managed Defensive Fund and the Schroder Income Portfolio are provided by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registration No 4191730 England. Authorised and regulated by the Financial Conduct Authority. The Schroder Active Portfolios, the Schroder Strategic Index Portfolios and the Schroder Sustainable Portfolios are provided by Schroder & Co. Limited. Registered office at 1 London Wall Place, London EC2Y 5AU. Registered number 2280926 England. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.