325. Why the traditional 60/40 portfolio is the lazy approach

FundCalibre - Investing on the go

In this episode, we look at the unique strategies behind the recently launched Schroder Global Multi-Asset Cautious Portfolio, with co-manager Philip Chandler. We explore how the fund maintains an exceptionally low cost of 22 basis points while leveraging dynamic asset allocation and a broad array of investment tools. Philip provides an insightful analysis of the current economic landscape, discussing the impacts of inflation, geopolitical turmoil, and the evolving role of equities and bonds in a balanced portfolio. He also outlines the innovative approaches Schroders takes in portfolio construction and the benefits of internal management and proprietary tools in achieving optimal returns for clients.

What’s covered in this episode:

• Cost efficiency in portfolio management
• Benefits of in-house tools and economies of scale at Schroders
• Importance of adapting to economic changes
• Challenges with the traditional 60/40 portfolio
• Impact of inflation and geopolitical risks
• Three-stage process for building a diversified portfolio
• Advantages of real-time access to managers
• Examples of using ETFs in the portfolio
• Managing client exceptions with risk-mapped portfolios
• Current positions amidst current market volatility
• Evaluating the potential for soft versus hard economic landings

More about the fund:

The Schroder Global Multi-Asset Cautious Portfolio aims to provide capital growth and income by investing in a diversified range of assets and markets worldwide, with a target average volatility (a measure of how much the fund's returns may vary over a year) over a rolling five-year period of 4% per annum. The fund adopts a fettered approach by using Schroder’s own fundamental and systemic active solutions, alongside some passive positions, to build a cost-efficient portfolio for investors.

Learn more on fundcalibre.com
Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.