Extraordinary monetary policy since the financial crisis has skewed investment returns and tightened the relationships between equities, bonds and property, making diversification harder to achieve. Absolute return strategies seek to address this issue and provide more precise risk and return targeting.
Absolute return funds can introduce return streams into a portfolio that rely less on the direction of capital markets. This can be valuable at times of heightened equity valuations and rising interest rates.
This risk reduction potential does not necessarily come at the cost of future performance, which makes absolute return strategies a potentially compelling opportunity.
Schroders has a large absolute return platform and over the past 20 years we have built one of the world’s largest absolute return fund ranges.
Our stable of internally-managed strategies is complemented by a handpicked selection of external alternative managers with proven track records. These are offered in a liquid, transparent and regulated manner.
Our absolute return platform is built on three pillars; return enhancing growth strategies; diversification strategies and inflation protection strategies. Together they cover a broad spectrum of investors’ needs.
We also have the potential to add capabilities to meet the specific requirements of our larger institutional clients.
Our mission is to help investors build durable portfolios, tailored to individual risk and return needs. We take a consultative approach, ensuring that our clients get a portfolio that is tailored to match their needs, while providing consistent support as market conditions change.
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.
Please note that there is no guarantee that an absolute return fund will achieve its objective.
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 reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. 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. UK Investors: 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. 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.
Schroders is a world-class asset manager operating from 37 locations across Europe, the Americas, Asia and the Middle East.
Schroders Wealth Management Solutions aims to help US private and high-net-worth investors solve for a range of income, wealth preservation, and alpha needs through a global network of distinctive long-term investments such as private equity, private debt, real estate, and other alternatives capabilities. We also provide customized portfolio solutions expertise to further enhance the achievement of today’s complex investment objectives.Contact Us