Schroders Investment Management
Commentary
Outlook 2015: Global Equities
We see 2015 as being characterized by an ongoing divergence in global growth and monetary policy that will create attractive pockets of investment opportunity for stockpickers.
Commentary
Outlook 2015: Multi-Manager
Investors need to prepare for lower returns in the next few years, with a focus on capital preservation appearing prudent in the current environment.
Commentary
Outlook 2015: Japanese Equities
Strong corporate earnings growth and a weak yen should continue to provide support to Japanese equities in 2015.
Commentary
Outlook 2015: Convertible Bonds
The equity market is likely to be the main driver of convertibles in 2015, when diligent research will once again be crucial.
Commentary
Outlook 2015: European Equities
Monetary policy remains loose in Europe but governments could do more to boost demand. Meanwhile, the weaker euro and stronger banking sector should help support European equities in the coming year.
Commentary
Equities: Is the Bull Market Under a Threat?
Equity markets have experienced a setback recently and this has led many strategists to question the longer term case for the asset class. However, we remain positive on shares and believe that equities can still generate an attractive premium for investors.
Commentary
Global: Recovery Continues, but Headwinds Persist
Keith Wade, Chief Economist at Schroders, discusses why Schroders has trimmed global growth projections for 2014 and 2015.
Commentary
Bond Investing in a Rising Rate Environment: How to Widen Your Options
Bond valuations now look stretched in a number of areas of the market. However, the global economy now has far fewer headwinds to contend with. One way bond investors can reduce this risk - or even prosper from a rate rise - is via unconstrained bond funds.
Commentary
Schroders Multi-Asset Insights: What is the forward curve telling us about US Treasury yields?
If central bank liquidity provision and the use of forward guidance has been dampening volatility, then its withdrawal over the coming 12 months could result in an increase in volatility. Arguably the recent flattening of the yield curve is a harbinger of this. Given the gradual path of the reduction in liquidity, this process of normalization could be extended. However, with the mean reverting nature of volatility, we believe it is currently cheap and will normalize upwards over the coming months towards its longer term average of 20. This is why we recommend adding actively managed volatilit
Commentary
Schroders Monthly Markets Review: Overview of Markets in April 2014
Global equities edged higher in April. Some stronger macroeconomic data from developed economies helped to support returns but the ongoing crisis in Ukraine remained a headwind for equities. Developed markets outperformed emerging markets. In the US, a generally firmer tone to macroeconomic data and a broadly encouraging corporate earnings season supported sentiment. Investors were also reassured by comments from Federal Reserve (Fed) Chair Janet Yellen about maintaining low interest rates.
Commentary
Is This the End of the World As We Know It?
After five turbulent years of decline and unrelenting economic doom there are signs that change could be afoot.
Commentary
The Next Steps For the Euro: What Is Needed to Ensure Its Survival?
The near term outlook for the Eurozone remains bleak, with the latest International Monetary Fund (IMF) forecasts showing 2013 as another year of falling output for the region. Better growth is desperately needed and there is a case for more cyclical support through easier monetary policy, but there are also structural obstacles to stronger growth. Unless these are addressed, any pick-up in growth will ultimately flounder. In this Talking Point I look beyond the near term cyclical challenges and consider what the Eurozone needs to do to ensure its long term viability.
Commentary
Fiscal Cliff: No Grand Bargain, But Enough for Now
Although the best case scenario is off the table, US markets are breathing a sigh of relief that the tax cliff has been averted at least for a few more months. The final package holds enough for both the bears given that we will have to revisit the fiscal worries in the next few months and for the bulls who believe that the near-term risks have been pushed aside.
Commentary
US reaches Fiscal Cliff Deal, but Uncertainty Remains
Higher taxes on the wealthy will not make a significant dent in consumption as they are likely to be largely met through lower saving. Despite the protestations of many Republicans, it is also difficult to see how an increase in the top rate of income tax from 35% to 39.6% will stifle American enterprise. However, the decision to allow the 2% payroll tax cut to expire will hit many families and is set to raise $95 billion, about 0.6% GDP.
Commentary
2013: A Year in Multi-Asset Investing
Extreme political risk is reduced but the cyclical environment remains challenging. Safe havens are expensive and we are increasingly incentivized to take on more risk. Equity valuations are attractive. Our core emphasis remains on quality although there is tactical opportunity
in pockets of extreme value.