Strategic Index Model Portfolios

A lower-priced entry point to our expertise: nine actively-managed portfolios made up of largely passive funds.

Actively investing in passives

We choose the best passive managers and make sure the asset allocation stays fit for purpose.

A focus on cost

Our Ongoing Charge Figure (OCF) includes our model portfolio fee of just 0.15%, without VAT.

Service

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

Active management delivered at a competitive cost

Watch Ryan Paterson, Portfolio Manager introduce the Stratgeic Index Portfolios.

Risk considerations

Counterparty risk: The portfolios may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the portfolios may be lost in part or in whole. Credit risk: A decline in the financial health of an issuer could cause the value of the instruments it issues, such as equities or bonds, to fall or become worthless. Currency risk: The portfolios may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates. Derivatives risk: Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to manage the portfolios efficiently. The portfolios 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 portfolios. Equity risk: Equity prices fluctuate daily, based on many factors including general, economic, industry or company news. 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. Interest rate risk: The portfolios may lose value as a direct result of interest rate changes. Leverage risk: The portfolios use derivatives for leverage, which makes them more sensitive to certain market or interest rate movements and may cause above-average volatility and risk of loss. Liquidity risk: In difficult market conditions, the portfolios may not be able to sell a security for full value or at all. This could affect performance and could cause the portfolios to defer or suspend redemptions of its shares, meaning investors may not be able to have immediate access to their holdings. Money market & deposits risk: A failure of a deposit institution or an issuer of a money market instrument could have a negative impact on the performance of the portfolios. Negative yields risk: If interest rates are very low or negative, this may have a negative impact on the performance of the portfolios. 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.

“The Strategic Index Model Portfolios appeal to investors who take a long-term view on asset class returns and want to be invested predominantly in index funds.”

Ryan Paterson

Portfolio Manager, Schroder Investment Solutions

Actively investing in passives

With our Strategic Index Model Portfolios, we choose a wide range of passive funds from across the marketplace and review these on an ongoing basis.    

Bringing this active touch to passive funds doesn’t just make the portfolios more affordable. It also means your clients can benefit from our fund-picking expertise; we pool knowledge from across Schroders to impartially choose passive funds – ones that are well-diversified by asset class, geographies and sectors. 

A finely-tuned balance

To help us make the right decisions with strategic asset allocations, 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 nine portfolios. At one end is Portfolio 2, which is designed to be more defensive with a higher weight to assets such as bonds and cash. At the other end there is Portfolio 10, 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.

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Decisions, decisions

So how do we pick the right passive funds for these portfolios?  

We select index tracker funds and Exchange Traded Funds (ETFs) with: 

  • a low tracking error 
  • a full or optimised replication method 
  • a low business risk 
  • competitive fees 
  • a reputable firm name attached. 

Meet your local Schroders contact

Risk mapped

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

Risk mapping for the Schroder Strategic Index Portfolios

And independently rated

Defaqto DFM Service Gold Award

Source of ratings: Defaqto, February 2024

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A Premium Solution rated portfolio

Source: Dynamic Planner as at February 2024. The Premium Solution rating has been awarded to Strategic Index Portfolio 7.

Platform availability

Here’s where you can access our Strategic Index Model Portfolios. We don’t endorse or recommend these platforms.   

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Literature

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Quarterly bulletin

Portfolios in focus

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Strategic Index Portfolio 10

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Factsheets

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Fair Value Assessment report

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Report
Schroder Strategic Index Portfolios

Important information

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 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 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.