The low interest rate environment makes it difficult for savers to meet their return ambitions without stepping out of deposits and becoming investors in riskier assets. This challenge puts an increasing spotlight on risk management. Investors need to take a more considered view of risk. Schroders has a long history of finding intelligent ways to help investors better manage risk in their portfolios.
Perceptions of risk are as unique as each client. We take care to understand what risk means – whether it is the risk that inflation will erode returns, or that clients will outlive their wealth, or that stock markets will sell off rapidly leading to capital losses. That said, without some risk, there is no return. Our experienced teams ensure that we understand the risks inherent in every investment we make, with the aim of increasing the predictability of outcomes for our clients.
We draw on our knowledge and experience across the globe to partner with our clients. We jointly build “real world” risk-managed products that aim to enable clients to meet their savings goals with confidence. Our cutting edge proprietary systems have been built from the ground up. Our capabilities across sustainable investing, systematic risk management, data analysis and insights give us an edge in managing risk in our funds.
Risk management is integrated into our analysis of individual securities and total portfolios. We build products and services designed to help manage specific risks. At each stage, we undertake in-depth analysis in order to get a better understanding of our clients’ potential key risks, their savings aims and how the combination can be managed effectively.
Intelligent risk management is integral to what we do. It forms part of every investment decision our fund managers make. It’s embedded into all of our funds, no matter whether they invest in equities, bonds, property or alternatives, in one country or on a global basis.
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.
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.