If your need as an institutional investor is to derive income, it is difficult to find a solution in the current market environment that is consistent, sensibly priced and offers a meaningful real yield. We do not believe this is going to materially change. However, this is not without historical precedent. Solutions do exist but they require expertise and the ability to consider a much wider range of investments than in the past.
The current low yield market environment is a difficult one for income investors to navigate. Institutional investors will need to utilize the full investment toolkit of equities, fixed income, alternatives and derivatives, alongside sophisticated risk management.
Schroders can help. We have the experience, developed over many decades, to partner with institutions to create bespoke income solutions. We have the scale, expertise and resources to access the widest range of investments globally.
We believe active investment management is crucial to meeting the income needs of institutional investors. Active management means being able to consider the widest range of investment opportunities across the world, analyzing these opportunities to ensure they are reliable and, importantly, paying the right price. Active management is also the skill of diversifying investments in order to deliver an income solution whilst managing the risks.
At Schroders we have the expertise, experience and resources to help design and deliver income solutions for our institutional clients.
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.
*Source: Schroders as at 31 December 2019
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