Schroders Fiduciary Management proposition is underpinned by six core beliefs that we believe are the drivers for success.
Understanding the sources of risk and the key contributors to total risk lies at the heart of our investment approach.
This approach, with an underlying Integrated Risk Management framework, allows our clients to make informed decisions about the nature of the risk they are willing to take.
The main goal for most trustees is to achieve a smooth path to full funding, and to manage funding level risk along the way. Our approach
is driven by a strong focus on managing funding level risk.
Our Flight Path design includes de-risking through time as the funding level improves. This ensures that as trustees approach their long-term goals, the focus of their investment strategy moves from seeking growth to providing certainty of returns.
By substantially hedging and having tailored LDI portfolios, clients can manage liability risk. Liability risk is the largest risk that many pension schemes face and represents the impact of changing interest rates and inflation expectations.
We believe that trustees should minimise liability risk as it is an unrewarded risk. This frees up risk capital that can be invested across the growth portfolio, where it is more rewarded.
Central to our investment philosophy is the view that asset allocation is the key driver of investment returns
within growth portfolios.
We design portfolios which express asset allocation views as efficiently as possible. Drawing upon our extensive investment management resource, we seek to exploit a particular asset allocation view or theme with laser-like precision.
Asset classes behave differently and the relationships between them change over time. Our growth portfolios are diversified across a range of asset classes, markets and investment styles to avoid concentration risk. We continually monitor and review investment markets so changes in our views and therefore the exposures we hold in our clients’ portfolios are managed dynamically.
We take our best investment ideas and find the most efficient way to implement them. For traditional assets, this is typically through passive or systematic approaches. For many alternative assets, manager skill forms a key part of the overall return. We review a universe of managers to find the most appropriate one for the investment idea we are expressing.
Please remember that the value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. This marketing material is for professional investors or advisers only. This site is not suitable for retail clients. Issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No: 1893220 England. Authorised and regulated by the Financial Conduct Authority. For your security, communications may be recorded or monitored.