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Schroders
Insurance Asset Management
S C H R O D E R S
I N S U R A N C E
A S S E T
M A N A G E M E N T
Managing insurance
client portfolios
Our philosophy
Our process is designed so that our insurance client portfolios
receive the attention of our most talented investors and risk
managers, backed up by the well-resourced teams in which
they sit. Our framework for managing insurance assets brings
together centers of excellence in insurance, active investment
and risk management, as shown below. We believe that the
quality of investment and risk management decision making
has never been more important and that the caliber of the
decision makers you have harnessed to your portfolio can be
a crucial differentiator.
Insurance expertise
Regulation, capital and solvency
Benchmark and design strategy
Specialized service and reporting
Liabilities
Assets
Active
investment
Fixed income
Multi-asset
Equities
Alternatives
Maximizing
return
Minimizing
capital
Managing
risk
Risk
management
Liability risk analysis
Asset liability matching
Structuring &
hedging expertise
Volatility management
S C H R O D E R S
I N S U R A N C E
A S S E T
M A N A G E M E N T
Insurance understanding
Delivering dedicated and focused
solutions to the insurance sector
Schroders has been managing assets for insurance clients since
1972 and now has $83.2 billion of insurance client assets under
management worldwide.
Our dedicated insurance asset management group serves as a hub of
insurance client understanding and expertise within the firm, harnessing
Schroders’ broad, global investment and operational resources, to design
and deliver capital efficient investment strategies.
We provide customized investment, service and support solutions
for insurance clients recognizing the growing interest insurance companies
have in a more sophisticated and active investment and risk dialogue with
their asset manager.
Source: Schroders, as of December 31, 2015
Bridging the gap between clever
ideas and regulatory reality
There is no shortage of clever investment ideas out there,
but there is a real shortage of strategies that actually
work for insurance companies. We focus on how we
can add value; providing new ideas that are relevant.
We work with our insurance clients’ various stakeholders
to help analyse problems and fine-tune solutions.
S C H R O D E R S
I N S U R A N C E
A S S E T
M A N A G E M E N T
Investment resources
Schroders has significant investment capability covering asset classes and markets worldwide, with over
420 investment professionals in 38 offices across 28 countries. As well as our Equity, Fixed Income and
Multi Asset divisions we have significant specialist capabilities in Insurance-Linked Securities (ILS), Real
Estate, Commodities and Convertibles. We are also one of a very small number of asset managers with
significant local currency investment capabilities in less developed markets.
Our global platform of investment resources provides an extensive range of investment components
to insurance clients, and adds weight to our mult-asset and asset allocation services.
Our network of investment professionals is shown below:
Schroders offices
Americas
Argentina 2 (E)
Bermuda
Brazil 5 (E/FI/MA)
Cayman Islands*
Chile
Mexico
USA 54
(A/E/FI/MA)
UK and
Channel Islands
UK 216 (A/E/FI/MA)*
Channel Islands 4 (A/MA)*
Asia
Australia 25 (E/FI/MA)
China 5 (E) BoComm JV
Hong Kong 23 (E/FI/MA)*
India Axis JV
Indonesia 7 (E/FI/MA)
Japan 17 (E/FI/MA)
Singapore 19 (E/FI/MA)*
South Korea 7 (E/MA)
Taiwan 7 (E/MA)
Europe and Middle East
Denmark
Luxembourg
France 5 (A)
Netherlands
Germany 6 (A)* Spain*
Gibraltar*
Sweden
Italy 1 (MA)*
Switzerland 28 (A/E/FI/MA)*
UAE 3 (E)
Key
A Alternatives (Property/EMD/Commodities)
E
Equities
FI Fixed Income
MA Multi-Asset
Investment centres (locations where Schroders has investment capabilities)
*Wealth management
Source: Schroders as of December 31, 2015.
S C H R O D E R S
I N S U R A N C E
A S S E T
M A N A G E M E N T
Fixed Income
Our fully integrated network of well-resourced, locally-based expert investment teams in the major
investment centers comprises over 100 professionals based around the world managing over $119
billion in Fixed Income assets. We deliver a broad range of traditional core, and innovative specialist
strategies and design and manage portfolios against a range of customized benchmarks for
insurance clients.
US Fixed income: Our well-resourced US Fixed Income team, based in New York and Philadelphia,
covers the Government, Agency, Investment Grade, High Yield, ABS/MBS and Municipal sectors.
The team has delivered consistently strong risk adjusted returns in core strategies and its historic high
upside capture and low downside capture evidence its ability to manage insurance client portfolios.
Global Multi-Sector: Increasingly, US insurance clients are looking to access the much wider
opportunity set and diversification benefits of a global fixed income universe. Our specialist Global
Multi Sector team based in London runs global bond-benchmarked and libor-based absolute return
strategies that allow our clients to access the global market place. We believe our global fixed income
platform is a key differentiator.
Global Credit: Credit investing is a core competency for Schroders Fixed Income. Our global credit
research team gives us the depth and breadth of credit resource necessary to succeed. We design
and manage customized global credit portfolios, including hedged to USD and asset swapped
strategies, to fit a variety of US insurance client objectives.
Emerging market debt: An allocation to Emerging Market Debt forms an increasingly important part
of insurance company portfolios. Our long only absolute return strategy has a long track record of
delivering industry leading risk adjusted returns. Our flagship benchmark relative strategy is innovative
in that it allocates dynamically to the three key sectors of the asset class—Corporates, Sovereigns
and Local Markets—depending on where we think the best risk adjusted opportunity lies.
Equities
Schroders has a significant global presence as an equity investor, currently managing $186 billion
in equity assets. Our team of 100+ portfolio managers and 100+ analysts based in investment centers
around the world, close to the markets we invest in, gives us an edge. We deliver a broad range of
equity strategies across markets and styles to try to meet the needs of our clients. These include
customized, separate account portfolios for insurance clients focused on particular risk and return
outcomes, including yield-focused strategies.
Asia Pacific: Schroders has been long established in the Asian Pacific region with offices in 9 cities
including major centers such as Hong Kong and Singapore. In total, we have more than 600 staff in the
region, evidencing our commitment, managing $62 billion in assets.
Our Japanese equity and Asia Pacific ex–Japan equity strategies have delivered very strong results for
investors and may form a useful complement to a domestically-focused equity portfolio.
Global Emerging Markets: Again, Schroders has had a long-standing presence in emerging equity
markets and has earned itself a strong reputation. Our Emerging Market Equities team of 46 investors
based in 8 countries has an average of 14 years’ experience, and manages $22 billion in assets.
A key area of interest for many of our insurance clients looking to position their portfolios for the future is
our ‘Frontier Markets’ capability, which allows us to deliver access to the next wave of emerging
market economies.
Source: Schroders, as of December 31, 2015
S C H R O D E R S
I N S U R A N C E
A S S E T
M A N A G E M E N T
Global Equities: Many asset managers focus their portfolio construction on a small subset of the global
opportunity set because they lack capacity. Schroders by contrast has developed a distinctive process
that allows it to analyze a universe of circa 15,000 stocks. Our specialist Quantitative Equity Products
(QEP) investment team of 29 people has been managing specialist global strategies since 2002, and now
manages $39 billion across a range of global strategies. It looks for value across the full global universe,
and has a compelling track record. It offers our US insurance clients access to the benefits of a genuinely
global equity opportunity set.
Multi-Asset
Multi Asset investing is a significantly growing area of interest for insurance CIO’s as they struggle
to meet the investment challenges posed by low yields and heightened volatility and we are seeing
increasing interest in the scale of our multi-asset resources and the quality of our active asset allocation
process. Schroder’s has been managing multi-asset mandates since the 1940s. Our global Multi Asset
team manages $115 billion and comprises more than 110 individuals in London, New York, Zurich, Hong
Kong, Singapore and Sydney and is a specialist, independent business within Schroders.
We have the resources to analyze and deliver your investment and risk objectives, designing and
managing innovative strategies with specific risk and return outcomes, including volatility and
downside-loss management objectives.
In addition, we recently launched an innovative Strategic Beta strategy based on our distinctive
risk-premia based research approach to asset allocation. This offers insurance portfolios a simple
way of introducing risk managed growth asset exposures to their portfolios.
Risk management expertise
Our Portfolio Solutions team is a risk analysis and risk management center of excellence within Schroders
that is responsible for managing all of our investment risk-aware and outcome-orientated strategies.
We manage $20 billion in these investment and risk outcome focused portfolios and design and manage
sophisticated strategies to support US insurance client variable annuity product and general account
investment objectives.
Source: Schroders, as of December 31, 2015
S C H R O D E R S
I N S U R A N C E
A S S E T
M A N A G E M E N T
About Schroders
10%
13%
41%
25%
BY REGION*
UK
Continental Europe**
Asia Pacific
Americas
25%
42%
BY PRODUCT
Equities
Fixed Income
Alternatives
Multi-Asset
Wealth Management
4%
21%
19%
*By client domicile
**Including Middle East
We believe we have a number of strengths that make us an attractive partner for insurance companies
who value stability, strength and investment excellence.
Schroders was established more than 200 years ago and is now the largest specialist asset manager
by market capitalization quoted on the London stock exchange, with the founding Schroder family
controlling 48%1 of our share capital. We are financially strong with no debt and over $1.4 billion in
group capital, meaning that we can invest to support our business through the market cycle.
From an investment perspective, as asset management is our only business we have no organizational
conflicts or distractions. This means we can approach investment with a focused perspective and an
entrepreneurial attitude.
We are a truly global business, managing $462.1 billion on behalf of institutional and retail investors
around the world, invested in a broad range of asset classes across equities, fixed income, multi-asset
and alternatives. We employ more than 3,700 talented people worldwide in 38 offices in 28 different
countries, as it is important to us that we are close to our clients and the markets we invest in.
Source: Schroders, as of December 31, 2015.
1
As of December 31, 2015
S C H R O D E R S
I N S U R A N C E
A S S E T
M A N A G E M E N T
Contact Details
United States
Europe
Andrew Terry
Phone: +1 212 488 1515
Email: andrew.terry@schroders.com
David Thompson
Phone: +44 20 7658 6317
Email: david.thomspson@schroders.com
United Kingdom
Asia-Pacific
Paul Forshaw
Phone: +44 20 7658 2524
Email: paul.forshaw@schroders.com
Chris Howells
Phone: +44 20 7658 6706
Email: chris.howells@schroders.com
Charles Matterson
Phone: +44 20 7658 6706
Email: charles.matterson@schroders.com
www.schroders.com/usinsurance
This brochure is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for
the purchase or sale of any financial instrument mentioned in this brochure. The material is not intended to provide, and should not be relied on for accounting, legal or tax advice,
or investment recommendations. Information herein has been obtained from sources we believe to be reliable but Schroder Investment Management North America Inc. (SIMNA)
does not warrant its completeness or accuracy. No responsibility can be accepted for errors of facts obtained from third parties. Reliance should not be placed on the views and
information in the document when taking individual investment and/or strategic decisions. Past performance is no guarantee of future results. The value of investments can fall as well
as rise as a result of market movements.
The opinions stated in this document include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of
what we currently know. However, there is no guarantee that any forecasts or opinions will be realized. This document does not constitute an offer to sell or any solicitation of any
offer to buy securities or any other instrument described in this document.
Schroder Investment Management North America Inc. (“SIMNA, Inc.”) is an investment advisor registered with the U.S. SEC. It provides asset management products and services
to clients in the U.S. and Canada including Schroder Capital Funds (Delaware), Schroder Series Trust and Schroder Global Series Trust, investment companies registered with the
SEC (the “Schroder Funds”). Shares of the Schroder Funds are distributed by Schroder Fund Advisors Inc., a member of FINRA. SIMNA, Inc. and Schroder Advisors Inc. are
indirect, wholly-owned subsidiaries of Schroders plc, a UK public company with shares listed on the London Stock Exchange. Schroder Investment Management Ltd. is the
UK based investment subsidiary of Schroders plc. Further information about Schroders can be found at www.schroders.com/us. © Schroder Investment Management North
America Inc. 875 Third Ave – 22nd Floor, New York, NY 10022 (212) 641-3800
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