Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
News Release
Schroders creates framework to help
overcome fixed income investor paralysis
22 November 2013
Schroders Global Strategic Solutions team is today launching its latest in-depth thought piece which is
titled ‘Fixed Income, Flexible Outcomes - Getting what you need from your bond portfolio’. The report
has been written in response to clients seeking guidance on how they should be managing their fixed
income exposure.
In this report, the Global Strategic Solutions team have devised a framework to help institutional
investors around the world, many of whom are experiencing investor paralysis, address the
vulnerabilities in their bond portfolios.
Scott Lothian - Senior Strategist, Global Strategic Solutions - comments:
“The past three decades have been exceptionally kind to traditional bond investors. Steadily falling
yields, globalisation and a generally-conducive regulatory environment have meant that bond markets
have delivered on multiple fronts. Whether investing for income, a real return, to hedge liabilities or to
diversify more risky assets, fixed income portfolios have largely obliged.
“The environment has undeniably changed – to persist with old strategies and expect the same
outcome is irrational. Investors are generally aware of the uncertain outlook for bonds and
consequently for their existing portfolios. The debate on interest rate hikes is much more about ‘when’
rather than ‘if’, with the end of quantitative easing (QE) often viewed as a key catalyst. Many
institutional investors are experiencing a degree of ‘analysis paralysis’ because the decisions that
need to be made are justifiably daunting and the road ahead has many forks.
“Overcoming this paralysis will take time, resource and conviction. Unfortunately, there is no single
‘magic bullet’ replacement for the multi-faceted solutions bonds have delivered in years gone by.
Therefore, investors need to build portfolios to target their own specific required outcomes and accept
that these probably will not come with the added extras many bondholders have become used to over
Schroders plc
Registered office at above address
Reg. 3909886 England
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For your security, communications may be taped or monitored
Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
the past 30 years. We believe that acceptable solutions are achievable for investors of all governance
levels, and encourage the use of our frameworki to ignite the movement.”
If you would like to speak to the team please or receive a copy of the full ‘Investment Perspectives:
Fixed Income, Flexible Outcomes’ please contact Estelle Bibby or Kathryn Sutton using the contact
details below.
Scott Lothian has undertaken a video to explain the report in further detail. If you would like to view
the video please click here: http://bit.ly/17QADT7
For further information, please contact:
Estelle Bibby, European Institutional: Tel +44 (0)20 7658 3431/ estelle.bibby@schroders.com
Kathryn Sutton, International: Tel +44 (0)20 7658 5765 / kathryn.sutton@schroders.com
Notes to Editors
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Schroders plc
Schroders is a global asset management company with £256.7 billion (EUR307.2 billion/$415.8 billion)
under management as at 30 September 2013. Our clients are major financial institutions including
pension funds, banks and insurance companies, local and public authorities, governments, charities,
high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate
from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders
has developed under stable ownership for over 200 years and long-term thinking governs our
approach to investing, building client relationships and growing our business.
Past performance is not a guide to the future 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 amount
originally invested.
Further information about Schroders can be found at www.schroders.com.
Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial
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alerting service.
i
Further information regarding the framework can be found in the full report
Schroders plc
Registered office at above address
Reg. 3909886 England
2
For your security, communications may be taped or monitored