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.
Past performance is not a guide to future performance and may not be repeated.
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. Exchange rate changes may cause the value of any overseas investments to rise or fall.
Alternatives can be more volatile than shares and bonds, and it may be harder to cash in the investment at short notice.
The views and opinions contained herein are those of the authors, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This webpage is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the webpage when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. 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. The data contained in this webpage has been obtained from sources we consider to be reliable. No responsibility can be accepted for errors of fact and the data should be independently verified before further publication or use. The sectors shown are for illustrative purposes only and not to be considered a recommendation to buy or sell. Exchange rate changes may cause the value of any overseas investments to rise or fall. All investments, domestic and foreign, involve risks including the risk of possible loss of principal. Investing in equities involves risk considerations, including market risk, prospects of stocks in the portfolio, changing interest rates, and real or perceived adverse competitive industry conditions. Investing in bonds may include interest rate, credit, inflation/deflation risk, mortgage and asset-backed securities, U.S. Government securities, and liquidity risks, to varying degrees. Investing overseas involves special risks including among others, risk related to political or economic instability, foreign currency (such as exchange, valuation, and fluctuation) risk, market entry or exit restrictions, illiquidity and taxation. These risks exist to a greater extent in emerging markets than in developed markets. The use of derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets. Private assets are intended only for qualified and/or sophisticated investors and carry special risk considerations, including illiquidity risk, wide differences in valuations, the use of leverage, and higher credit risk than traditional assets. Asset allocation and diversification cannot ensure a profit or protect against loss of principal. No investment strategy, capability or technique can guarantee it will achieve its stated objective. In North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc providing asset management products and services as a US SEC registered investment adviser and in the capacity of Portfolio Manager with the securities regulatory authorities in Canada. For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorized and regulated by the Financial Conduct Authority.