Private assets are investments that are typically not publicly listed and traded. Because of this, they can often have lower volatility than their public counterparts, offer diversification benefits and uncorrelated returns. Investors, or their managers, generally need specialist relationships to access these types of assets.
As an alternative source of return, private assets can help to diversify investment portfolios and offer potential capital growth to help meet long-term goals.
Private assets are a broad range of investment types and opportunities.
These asset classes offer the potential for attractive income or capital growth, but may be difficult to access through traditional approaches.
Each area of private assets has different performance drivers, so returns may not move in line with mainstream stock markets. They also have high minimum investment levels and may be complex and illiquid, so detailed knowledge is important.
At Schroders, we understand that the private nature of transactions in these assets makes them more complex and less liquid than publicly listed assets. We therefore focus on private assets where the underlying investments can generate cash flows that we can calculate and analyse.
Accessing future economic development
Investing in insurance
Tapping higher-growth companies
Investing in bricks and mortar
A portfolio-based approach
Alternative credit opportunities
When investing in private assets, it is important to choose a strong and stable partner that can provide unrivalled expertise and the right set of solutions.
Schroders has a long track record of investing in private assets and a broad platform on which we provide investors access with a full range of investment choices. We believe the best approach to investing in private assets is to take a long-term view and only select those that offer the best risk-reward profile after conducting thorough due diligence.
Investing in private assets requires knowledge and experience. Our investment professionals are specialists in their respective areas of the private assets landscape, working to find opportunities, long-term trends and themes that can complement equity and bond portfolios. We have a consistent process of deploying investor capital and apply an institutional level of governance across every investment.
We take a solutions-based approach to private assets, providing our investors with a range of options that have the potential to provide higher returns, lower risk and add diversification to portfolios. Through our size and scale, we can offer a truly diverse range of capabilities across private assets.
Any security(s) mentioned above is for illustrative purpose only, not a recommendation to invest or divest.
This material is intended to be for information purposes only and it is not intended as promotional material in any respect. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Opinions stated are matters of judgment, which may change. Information herein is believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. Exchange rate changes may cause the value of the overseas investments to rise or fall. For risks associated with investment in securities in emerging and less developed markets, please refer to the relevant offering document.
The information contained in this material is provided for information purpose only and does not constitute any solicitation and offering of investment products. Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments.
Derivatives carry a high degree of risk and should only be considered by sophisticated investors.
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