In focus

Investment Horizons - Spring 2020

In this, our year-end edition of what has been arguably one of the most interesting starts to any decade ever, we look at transitions across the asset management world.

Perhaps one of the most pronounced transitions was the response to the pandemic, resulting in zero interest rates here in the US. As one of the last bastions of yield in the developed markets, many wonder where do investors go from here? Our Head of Securitized Credit, Michelle Russell-Dowe, explains why the “road less traveled” may offer clues in the search for yield, without a dramatic increase in risk.

Our next two articles focus on the Corporate universe. The first article is on culture and why it matters not just to engage with companies on such issues, but to do so intelligently. The second paper looks at how important it is to understand the cost (or benefit) that a company or sector has on society – and why it’s critical to go beyond the theoretical. In both cases, the transition from companies being beholden only to their stockholders is becoming a thing of the past as there are many stakeholders in today’s corporate ownership framework.

Our penultimate article looks at a grass-roots asset class – green bonds. Our Head of Sustainable Credit Saida Eggerstedt sits down and provides a Q&A on the market’s transition to green bonds, what investors need to know as they near the $1 trillion milestone, as well as the emergence of “social bonds.”

Finally, China’s presence in the market continues to reach new heights. The private markets are no exception, and the RMB universe will undoubtedly gain more attention in the decade ahead. As we outline in this research piece, access to the right structure and having local expertise is critical for foreign institutions.

The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.