Our exclusive interview with Schroders’ Philip Chandler focuses on how and why active management is so important in a changing world.
As advisers face an increasingly complex global landscape – from political populism and inflationary pressures to renewed market concentration – multi-asset solutions have never played a more central role in portfolio construction. In this exclusive interview, IFA Magazine Editor, Sue Whitbread, speaks with Philip Chandler, Chief Investment Officer (CIO) of Schroder Investment Solutions (SIS) and Head of UK Multi-Asset at Schroders, about how the firm is helping advisers and their clients adapt to today’s changing world, as well as the global multi-asset investment philosophy that has brought them success so far. They also discuss the key differences between the SIS range of multi-asset solutions and others available on the market, as well as the added value that their team can bring to advisers and their clients.
Chandler explains why the SIS multi-asset range continues to stand out in a competitive field, highlighting the importance of global expertise, active management, and a robust, forward-looking investment process. He shares his views on how advisers should be responding to the current market volatility – particularly following the disruptive policy shifts seen in Q2 2025 – and where his team is spotting both investment opportunities and risks across asset classes and regions.
With over 140 multi-asset investment professionals globally and deep in-house capabilities, Chandler argues that now is the time for advisers to re-evaluate traditional investment approaches and embrace a more dynamic, diversified and client-focused investment strategy by choosing a trusted investment partner with a proven track record.
SW: Why should advisers choose Schroder Investment Solutions over its peers when it comes to multi-asset solutions?
PC: “At SIS, we’re active managers and on so many different levels. Our range of global model portfolios and multi-asset funds are built around core principles of consistent performance and partnership with advisers. We’re focused on delivering good client investment outcomes by leveraging Schroders’ proven investment expertise and at a cost that can offer real value for money.
“When I speak with advisers and clients, they share a number of reasons why they choose us. First and foremost, as a leading asset manager, Schroders is a trusted brand with over 200 years of heritage. While we continue to play to our strengths we also keep ahead of the game with our eyes on the future. That gives advisers and their clients confidence in our stability, long-term thinking, and financial strength.
“Secondly, we bring the ‘Best of Schroders’ to the adviser and client experience. While many of our portfolios follow a whole-of-market approach, our value goes far beyond fund selection. We develop our own Strategic Asset Allocation (SAA) using in-house capital market assumptions from our in-house economics team. We also use proprietary optimisation software and run our own risk analytics – all of which underpin a rigorous and thoughtful portfolio construction process.
“We also benefit from having one of the largest multi-asset teams in the industry. Our global asset allocation committee feeds into our portfolio decisions, ensuring a robust, performance-led approach that advisers and their clients can rely on.
“Third, we offer a wide range of risk-managed solutions across both our Model Portfolio Service (MPS) and multi-asset funds. Whether advisers are looking for active, blended, passive, or sustainable options, we provide access to the full market spectrum. This means that advisers have access to everything they need to meet all client needs and outcomes that they’re looking for. These are available on multiple platforms too which we know is a big advantage.
“Lastly, we pride ourselves on the support we give to advisers. That includes comprehensive portfolio updates, detailed quarterly performance reports, ongoing market commentary, and a wealth of client-friendly materials – both written and video. Our regional sales teams are another key strength: they’re approachable, knowledgeable, and available to help advisers with any queries. Ultimately, it’s the engagement that financial advisers have with us, not only actively managing clients’ investments, but also providing rich and informative reporting which makes the difference. We’re able to build long-term, trusted relationships with advisers, enabling them to deliver appropriate investment solutions for their clients. We’ll also continue to keep them updated with progress as the years go on.
“Investment performance is obviously something that none of us can guarantee but what we aim to provide is consistency of performance over the longer term. When you combine such consistent performance with exceptional service and access to the depth of resources that we have, we really become that trusted investment partner. The package represents more than just an investment solution, it’s all about that relationship based on trust.
“Ultimately, everything we do is about making advisers’ lives easier and helping them deliver appropriate investment solutions for their clients.”
SW: You mentioned the team there, how large is the multi-asset team at Schroders?
PC: “Globally, we have over 140 investment professionals dedicated to multi-asset. It’s a genuinely international team, with significant presence not just in London, but also in Hong Kong, Singapore, Europe, Sydney and New York. That global footprint has been especially valuable for us in recent years.
“What’s also important is that having such a large, dedicated team means we can manage everything in-house. We’re an independent multi-asset team focused solely on the needs of our multi-asset clients – which allows us to stay aligned with client objectives at all times.”
SW: We’ve seen significant market volatility in Q2 2025, particularly following Trump’s tariff announcements. Should advisers and their clients be doing anything differently within their portfolios to try and protect against this uncertainty?
PC: “Yes – quite a few things, I’d suggest. The world has fundamentally changed. Pre-Covid, the dominant risk was slowing economic growth. When that happened, central banks would cut interest rates, bond prices would rise, and portfolios benefitted from the negative correlation between equities and bonds. That made portfolio construction relatively straightforward.
“But today, we’re in a multi-threat environment. Between 2021 and 2023, inflation became a major concern, severely impacting bonds and other assets. Now, in 2025, we’re seeing the disruptive effects of political populism and trade policy – like Trump’s tariffs. These are not short-term shocks; they’re structural shifts.
“In this new world, diversification is more important than ever – but it has to go beyond just owning a mix of equities and bonds. For example, many global equity portfolios are now heavily concentrated in a handful of mega-cap stocks. If that narrow leadership falters, investors face real risks.
“We’re also seeing rising concerns around fiscal sustainability in various countries, where government deficits are on unsustainable paths. The challenge isn’t just about one policy decision in the US – it’s a broader, global issue.
“I’d argue that investors should be re-evaluating strategic asset allocations. What worked 10 years ago – in an era of strong equity-bond diversification – may no longer be fit for purpose. It’s time to ‘kick the tyres’ on those strategies and consider diversification not just by asset class, but by region too. Political risk isn’t confined to the US; we’re seeing populist pressures across Europe as well.
“For lower-risk clients in particular, alternatives can play a crucial role – helping reduce reliance on traditional fixed income by providing uncorrelated sources of return. Across the board we have a broad allocation to alternatives and benefit from not being constrained here.
“Active management becomes more valuable in this kind of environment. Dynamic asset allocation, flexibility, and strong stock selection are vital. With today’s market concentration, I believe that passive strategies can leave investors overexposed. Active managers can be more selective – picking the winners and avoiding the losers. Given the size and strength of our resources, this gives us a particular advantage.”
SW: From an asset allocation perspective, are there any particular regions or asset classes where you’re seeing notable opportunities or heightened risks as an active investor?
PC: “At SIS, we began the year with a more optimistic outlook on global growth than the consensus – particularly for the US. Despite the recent uncertainty around trade policy, that stronger economic backdrop hasn’t disappeared. Labour markets remain resilient, not just in the US but also in parts of Europe, supporting household income growth and helping ease the effects of the cost-of-living crisis.
“That said, stronger growth brings inflation risk. At Schroders, we’ve consistently flagged inflation as a more persistent threat than many market participants expected. As a result, we’ve pushed back against the idea that the Federal Reserve would make aggressive rate cuts. Yes, some policy easing is possible, but not a wholesale pivot while inflationary pressures remain.
“This macro backdrop shapes our positioning. On the equity side, we see selective opportunities where earnings look robust, though clearly the environment remains uncertain. At the same time, we’re cautious on government bonds – especially whenever markets start to price in aggressive rate cuts that may not materialise.
“Portfolio construction is critical in this context. It’s not just about selecting asset classes or managers but understanding how everything fits together within the portfolio – particularly the relationships between equities, bonds, currencies, and alternatives.
“One area we’ve been paying close attention to is the role of the US dollar. For the past 15 years, dollar exposure has been a reliable hedge – for both market stress and inflation. That was particularly evident in 2022, and many UK investors benefited. However, in 2025, geopolitical shifts and questions about the US’s reliability as a global partner have started to challenge the dollar’s role as a safe haven.
“That raises a key question for UK investors: should we return to the pre-global financial crisis mindset? For advisers whose clients have their income and assets in Sterling and plan to retire in the UK, then perhaps their portfolios should carry more Sterling exposure than they have in recent years.
“We’re also considering the roles of commodities and alternatives. Gold, for instance, has been a strong performer in our portfolios in recent years. But more broadly, we’re thinking holistically – how to combine these components in a way that can deliver a smoother return profile for clients.
“In short, the asset allocation conversation is no longer just about the traditional 60/40 split and the debate around equity/bond allocations – it’s about currencies, inflation resilience, and global political risk. Getting the full picture right is what really matters now. And that’s where I believe that selecting a manager with proven investment expertise, which has the resources in breadth and scale to deliver consistent returns for investors is key.”
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About Philip Chandler, CFA
Head of UK Multi-Asset, Schroders & CIO, Schroder Investment Solutions
Philip joined Schroders in 2003 and is Head of UK Multi-Asset & CIO, Schroder Investment Solutions. He is responsible for all UK-based multi-asset clients with benchmark, SAA or peer group-based objectives, and was appointed CIO of Schroder Investment Solutions (SIS) in December 2024. Philip has co-managed the Schroder Global Multi-Asset Portfolios, part of the SIS range, since inception in 2017. He is a member of the Global Asset Allocation Committee and part of the Duration risk premia team of the Strategic Investment Group Multi-Asset (SIGMA). Philip initially joined Schroders as a portfolio manager in the Fixed Income team, with responsibilities for global bonds, money markets and UK government bond portfolios. He transferred to the Multi-Asset team in 2009 and was seconded to New York 2011- 2015. Philip is a CFA Charterholder and holds a Degree in Philosophy, Politics and Economics from the University of Oxford.
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