Schroder International Selection Fund
Société d'Investissement à Capital Variable
5, rue Höhenhof, L-1736 Senningerberg
Grand Duchy of Luxembourg
Tel : (+352) 341 342 202
Fax : (+352) 341 342 342
IMPORTANT: This letter is important and requires your immediate attention. If you have any
questions about the content of this letter, you should seek independent professional advice. The
directors of Schroder International Selection Fund accept full responsibility for the accuracy of the
information contained in this letter and confirm, having made all reasonable enquiries, that to the
best of our knowledge and belief there are no other facts the omission of which would make any
statement misleading.
4 April 2011
Dear Shareholder,
Schroder International Selection Fund EURO Dynamic Growth
After considerable analysis and review, the board of directors (the "Board") of Schroder International
Selection Fund (the "Company") has decided that it is in the best interests of shareholders of the
Company's EURO Dynamic Growth sub-fund (the "Fund") to merge it with the Company's EURO Equity
sub-fund. This decision has been taken in accordance with Article 5 of the articles of incorporation and the
provisions of the Company's prospectus.
The primary objective of both funds is to invest for growth. Within an extremely competitive marketplace,
the Fund has not proved as popular as the EURO Equity sub-fund, experiencing declining sales since
2006. The Fund has experienced outflows in each year since then. The Board is of the opinion that
merging the Fund into the much larger EURO Equity sub-fund (which had EUR 899.1 million under
management on 31 December 2010 compared to EUR 120.7 million in the Fund on the same date) will
result in economies of scale which are in the interests of the Fund’s shareholders. The EURO Equity
sub-fund has performed better than the Fund over three and five years.
Both sub-funds are managed by Schroder Investment Management Limited and have similar investment
objectives. The management fees are the same for equivalent share classes for both sub-funds, except for
the C share class where it is lower for the EURO Equity share class. Further details can be found in the
appendix of this letter along with other key information about the two sub-funds, including their investment
objectives.
The Fund has no outstanding set-up costs. The expenses incurred in the merger, including the legal and
regulatory charges, will be borne by the Company’s management company, Schroder Investment
Management (Luxembourg) S.A.. From 4 April 2011, in order to account for the market-related transaction
costs associated with the disposal of any investments that would not fit well in the EURO Equity sub-fund’s
portfolio, or associated with redemption orders received during the period leading up to the merger, the
Fund's net asset value per share will be adjusted down each time there is a net outflow from the Fund by
means of a dilution adjustment. In the unlikely event that there are net inflows to the Fund during this
period the net asset value per share will be adjusted upwards. Costs associated with portfolio trading
required to align the Fund's portfolio with that of the EURO Equity sub-fund from 5 May 2011 to the date of
the merger will be included in the calculation of the net asset values per share calculated for those days.
Further information relating to dilution adjustments is available in the Company's prospectus in section 2.3
"Calculation of the Net Asset Value".
www.schroders.com
R.C.S. Luxembourg - B. 8202
For your security, telephone conversations may be recorded
Page 2 of 4
The merger will be implemented on Thursday 12 May 2011 (the "Effective Date")1. If you do not wish to
hold shares in the EURO Equity sub-fund from the Effective Date you may at any time up to and including
deal cut-off time on Wednesday 4 May 2011 redeem your holding in the Fund or switch into the same
share class of one or more of the Company's other sub-funds. Schroder Investment Management
(Luxembourg) S.A. acting as the Company's management company will execute your instructions free of
charge in accordance with the provisions of the Company's prospectus. However, please note that some
distributors, paying agents, correspondent banks or similar agents might charge you switching and / or
transaction fees. Please also note that they might have a local deal cut-off time which is earlier than the
Fund's cut-off time in Hong Kong, and we recommend that you check with them to ensure that your
instructions reach Schroders in Hong Kong before the deal cut-off given above.
A switch or redemption might also affect your tax status and you might be prohibited from switching into
other sub-funds if they are not registered for public distribution in your country of citizenship, domicile or
residence. We therefore recommend you to seek independent professional advice in these matters.
In order that existing shareholders have sufficient time to make alternative investment arrangements for
regular or mandated payments, they will be able to continue to invest in the Fund until deal cut-off on
Wednesday 4 May 2011. However, subscriptions or switches into the Fund from new investors will not be
accepted after deal cut-off on Monday 4 April 2011. On the Effective Date, for the shares of each class
that they hold in the Fund, shareholders will receive an equal amount by value of shares of the same class
in the EURO Equity sub-fund, calculated at the net asset value per share of the two sub-funds on the
Effective Date. The first dealing date for your shares in the Euro Equity sub-fund will be Friday 13 May
2011.
We hope that you will choose to remain invested in the EURO Equity sub-fund or another of the
Company’s sub-funds. If you would like more information about them, the Company's prospectus is
available free of charge upon request at the Company’s Hong Kong Representative’s registered office,
located at Suite 3301, Level 33, Two Pacific Place, 88 Queensway, Hong Kong and is also available on
the Schroders Internet site at www.schroders.com.hk. The website is not authorised by the Securities and
Futures Commission (“SFC”) and may contain information on funds which are not authorised by the SFC
and may not be offered to the retail public in Hong Kong.
If you would like more information, or have questions about the merger, please contact your usual
professional advisor or Schroders Investor Hotline on (+852) 2869 6968.
Yours faithfully,
Noel Fessey
Authorised Signatory
1
Gary Janaway
Authorised Signatory
Not, as stated in the Company's prospectus, 14 April 2011.
Page 3 of 4
Appendix
Key Features Comparison Table
The following is a comparison of the principal features of the Fund and the EURO Equity sub-fund. Both
are sub-funds of the Schroder International Selection Fund. Full details are set out in the Prospectus.
Schroder International Selection
Fund EURO Dynamic Growth
Schroder International Selection
Fund EURO Equity
Investment Objective
To provide capital growth primarily
through dynamic investment in a
growth style biased portfolio of equity
securities of companies in countries
participating in the EMU and
denominated in Euro.
To provide capital growth primarily
through investment in equity
securities of companies in countries
participating in the EMU.
Fund's Risk Profile
This Fund is a higher risk vehicle. In
particular the use of financial
derivative instruments for investment
purposes may increase the share
price volatility, which may result in
higher losses for the investor.
This Fund is a medium risk vehicle.
In particular the use of financial
derivative instruments for investment
purposes may increase the share
price volatility, which may result in
higher losses for the investor.
Profile of the Typical
Investor
Style equity funds may be suitable
for investors who are more
concerned with maximising long-term
returns than minimising possible
short-term losses.
Mainstream equity funds may be
suitable for investors who are
seeking long-term growth potential
offered through investment in
equities.
Fund Currency
EUR
EUR
Launch Date
30 August 2000
21 September 1998
Total Fund Size (million)
as at 31 December 2010
EUR 120.782 million
EUR 899.166 million
Management Fees by
Share Class
A, A1 and B: 1.50% per annum
A, A1 and B: 1.50% per annum
C: 1.00% per annum
C: 0.75% per annum
I: not applicable
I: not applicable
Page 4 of 4
Total expense ratios2 per share class as at 31 December 2010 (unaudited)
Schroder International
Selection Fund EURO Dynamic
Growth
Schroder International
Selection Fund EURO Equity
A Accumulation
2.01%
2.00%
A Distribution
2.01%
2.00%
A1 Accumulation
2.43%
2.42%
B Accumulation
2.61%
2.60%
C Accumulation
1.33%
1.07%
C Distribution
1.33%
1.07%
I Accumulation
0.07%
0.06%
A Accumulation
LU0116149229
LU0106235293
A Distribution
LU0227788113
LU0091115906
A1 Accumulation
LU0133718220
LU0133706308
B Accumulation
LU0116149906
LU0106235376
C Accumulation
LU0116150409
LU0106235459
C Distribution
LU0225597458
LU0091116201
I Accumulation
LU0134346385
LU0134334704
ISIN Codes
2
The total expense ratio is calculated from the Distribution Charge, Shareholder Servicing Fee, Investment
Management Fee and the Administrative, Custodian and Transfer Agency Fees as applicable for each
share class.