Insurance Asset Management

Transcription

1 For Financial Intermediaries, Institutional and Consultant use only. Not for redistribution under any circumstances. Schroders Insurance Asset Management

2 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 Assets Active investment Fixed income Multi-asset Equities Alternatives Maximizing return Minimizing capital Managing risk Liabilities Risk management Liability risk analysis Asset liability matching Structuring & hedging expertise Volatility management

3 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 fi rm, harnessing Schroders broad, global investment and operational resources, to design and deliver capital effi cient 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 fi ne-tune solutions.

4 Investment resources Schroders has signifi cant investment capability covering asset classes and markets worldwide, with over 420 investment professionals in 38 offi ces across 28 countries. As well as our Equity, Fixed Income and Multi Asset divisions we have signifi cant 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 signifi cant 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.

5 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 diversifi cation benefi ts of a global fi xed 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 fi xed 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 fi t 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 fl agship 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 signifi cant 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 Pacifi c region with offi ces 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 Pacifi c 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

6 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 benefi ts of a genuinely global equity opportunity set. Multi-Asset Multi Asset investing is a signifi cantly 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 specifi c 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

7 About Schroders 13% 10% 25% BY REGION* 41% UK Continental Europe** Asia Pacific Americas 25% BY PRODUCT 42% 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 fi nancially 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 confl icts 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, fi xed income, multi-asset and alternatives. We employ more than 3,700 talented people worldwide in 38 offi ces 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, As of December 31, 2015

8 Contact Details United States Andrew Terry Phone: United Kingdom Paul Forshaw Phone: Europe David Thompson Phone: Asia-Pacific Chris Howells Phone: Charles Matterson Phone: 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 fi nancial 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 Schroder Investment Management North America Inc. 875 Third Ave 22nd Floor, New York, NY (212) BRO-INSASSTMGMT