Clients want their money managed in line with their long-term goals. These might include a specific income target, a sustainability objective, a growth target or capital preservation. Our approach to multi-asset can help ensure our clients’ needs are met in a variety of market environments.
Not all investors want the same outcomes. That’s why a dynamic approach to asset allocation has become increasingly important. All investors do, however, want predictability and consistency, especially in an uncertain and volatile world. This requires a broad combination of investments, including innovative approaches in areas such as commodities, infrastructure or in alternative risk premia. We believe a portfolio with true risk diversification has a better chance of surviving difficult markets.
Not only do you need a robust process to navigate tough environments, you also need the right human factors. The culture and the accountability of our team is what sets us apart from the competition. We actively seek to identify and minimise mistakes stemming from cognitive biases. Being able to “fail well” and learn from mistakes is key to our competitive advantage.
We can tailor portfolios to specific client needs. We may use both active and passive strategies within portfolios, maintaining a focus on delivering the best possible value for money. Please note: not all products are available in every market.
Sustainability is at the core of everything we do. We use our in-house sustainability tools to ensure environmental, social and governance (ESG) factors are woven into every aspect of our multi-asset research and portfolio construction. We also believe strongly in active engagement and companies.
Correlations between assets change. We can take full advantage of this fact by being adaptable to different market regimes. Changing correlations pose a significant risk for static multi-asset investors for the period to come. But this provides a real opportunity for dynamic multi-asset investors. Our quantitative research team works closely with our portfolio managers to build and actively enhance a suite of in-house tools, including our proprietary Schroders Multi- Asset Risk Technology system.
We have a disciplined “risk premium” investment approach, which decomposes asset classes into their component parts. This enables us to understand the true drivers of risk and return and how they interact. Meanwhile, our continual focus on risk management combines quantitative tools with forward-looking scenario analysis.
Our multi-asset research process harnesses our global team of 100+ specialists. They are based throughout the US, Europe and Asia Pacific, looking at markets from every angle. A physical presence in our clients’ local markets gives us a better understanding of their specific requirements.