The latest multi-asset perspectives from Ella Davies, Multi-Asset Manager at Schroder, highlight why active diversification matters now and how their multi-asset solutions are built to adapt as market conditions evolve.
Navigating uncertainty
Until recently there was a relatively clear story to share with clients: easing inflation, a gradual shift towards lower interest rates, and signs of a broadening market.
Now that narrative has become less straightforward, and you may have found that your client conversations have become more complex as the landscape has shifted.
Geopolitical tensions, energy price volatility, concerns over the growth outlook and the prospect of renewed inflationary pressures are adding up to a wider range of possible outcomes.
In this environment, conversations with clients often extend beyond asset allocation or fund selection, focusing instead on finding clarity in the uncertainty.
With that in mind, I hope these multi-asset insights help support those discussions and make them a little easier to navigate.
Global Multi-Asset Portfolios: building resilience with active management
In challenging investment environments, active management really proves its worth – combining a long-term view, selective positioning, and adaptability as conditions evolve.
Alongside this, thoughtful diversification continues to play a crucial role, helping to create portfolios that can navigate volatility while capturing opportunities.
At Schroders, we focus on building resilient portfolios that are designed to deliver throughout the investment cycle.
Our range of Global Multi-Asset Portfolios has been developed to meet the needs of UK advisers and your clients.
Constructed to provide investors with a globally diversified, risk-mapped framework that adapts to changing conditions, they are managed using the same multi-asset views that guide all our multi-asset portfolios.
Supported by Schroders’ global research teams, they integrate top-down macro insights with bottom-up stock selection to build resilience, manage risk, and capture opportunities across asset classes.
And because they invest solely in Schroders’ funds, our Global Multi-Asset Portfolios offer high-quality, genuinely active management at a passive price.
Our multi-asset views
Equities: resilience despite headwinds
Rising energy prices have clouded the inflation outlook and could delay interest rate cuts.
Amid heightened geopolitical tensions, questions over global growth are adding another layer of complexity.
Nevertheless, we remain overweight in equities. Although markets are set to remain volatile, valuations have fallen and corporate earnings remain broadly supportive.
However, we have trimmed some of our more cyclical exposure to reflect the risk of ongoing disruption to energy supplies.
Our positive view of US equities has not changed. Historically, US markets have remained resilient during periods of high oil prices, and the economic outlook continues to be underpinned by solid earnings growth and healthy consumer spending.
Bonds: balancing act
We remain cautious on government bonds. Political uncertainty and higher energy prices have reignited concerns over inflation, undermining scope for rate cuts and limiting potential returns.
Our outlook on corporate credit has shifted from neutral to negative. Credit spreads, particularly in US investment grade debt, no longer offer adequate compensation for rising macroeconomic risks.
Commodities: evolving the allocation
We have moved to a more constructive stance on commodities following the recent rise in oil prices, having previously taken profits on the initial spike.
We are neutral on oil and industrial metals: oil remains driven by geopolitics in the near term, while softer growth expectations are likely to weigh on demand for industrial metals.
We continue to favour gold as a diversifier in an uncertain environment, supported by sustained central bank demand, particularly from emerging markets.
At the same time, we are adding exposure to agriculture, where geopolitical pressures and weather-related risks are likely to tighten supply dynamics through the rest of the year.
Active resilience
In today’s complex markets, resilience and flexibility are more important than ever.
Our Global Multi-Asset Portfolios are designed to navigate uncertainty, balancing active insights, disciplined risk management, and long-term conviction to help your clients remain on course, whatever the future holds.
To find out more about the Schroder Global Multi-Asset Portfolios, click here: Global Multi-Asset Portfolios – Schroders’ Multi-Asset Funds
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