[Month] 2008 | Fund Flyer Golden Bull Fund Manager Award 2013 Golden Bull Fund Manager Award 2012 Golden Bull Fund Manager Award 2011 Fund Summary Schroder Real Return Fund Wholesale Class About the Schroder Real Return strategy Why choose the Schroder Real Return strategy? Target consistent real returns The Schroder Real Return Fund strategy has the simple investment objective of returning 5% per annum (before fees) above Australian inflation over rolling 3 year periods. Minimising the risk of loss Investments are managed with the intention of minimising the chance of losing money while also achieving a real return relative to inflation. Flexible asset allocation We only invest in assets that are likely to assist the strategy earn its return objective taking into account changing market conditions. Investors choose the Schroder Real Return strategy for the following investment benefits: −− Real objective: The strategy was developed in Australia for Australian clients and designed to target real returns above local inflation. Delivery of the performance objective is the prime focus – not arbitrary benchmarks or peer comparisons. −− Focussed risk management: The investment decision making is framed around achieving a real return outcome with the greatest certainty and managing the risks that matter, like downside risk and the risk of not achieving the target return. The investment process incorporates a multi-pronged risk management framework, designed to identify, understand and mitigate any inherent downside risk within the portfolio. −− Unconstrained asset allocation: Differentiated approach whereby the investment opportunities are constantly reassessed in recognition that valuations matter with wide investment ranges providing flexibility to allocate effectively and efficiently. −− Transparent and liquid: The strategy investments are held in predominantly traditional assets with no leverage and with strict limits on exposure to liquidity constrained alternatives. −− Real diversification: A key emphasis is to ensure the portfolio is diversified across a broad array of risk premium, assets, and securities. The aim is to enable the portfolio to achieve its objective in all environments. −− Cost effective and value for money: The strategy is designed to offer clarity and transparency in pricing. It is sensibly and fairly priced with a competitive management cost seeing the benefits of target performance accruing to the investor, not the manager. Dedicated, experienced investment team Schroders’ Australian Multi-Asset team manages over A$7.2 billion (as at 31 March 2014) of which more than A$5.8 billion is invested in the Schroder Real Return strategy. Clients range from major institutions to individual investors. While the highly experienced Australian team has clear ownership and accountability for meeting investor objectives, it also draws on the resources of Schroders’ strong global multi-asset team, and over 450 investment professionals in all key regions and asset classes (as at March 2014). How the Schroder Real Return strategy invests The Schroder Real Return strategy invests in a highly diversified portfolio of assets drawn across the three broad types of investments according to the likely returns and the risk: −− Defensive assets – those which are relatively secure with low volatility such as investment grade debt securities and cash −− Diversifying assets – those offering higher potential returns usually with an income generating focus which assist in diversifying the portfolio’s sources of return e.g. high yielding debt alternatives. −− Growth assets – offering potentially the highest returns but also higher volatility e.g. Australian and international equities and property trusts. Fund Summary Schroder Real Return Fund Wholesale Class How the Schroder Real Return strategy invests (continued) Indicative asset allocation ranges The Schroder Real Return strategy uses a dynamic approach when allocating to the different types of assets to take full advantage of the opportunities presented in the market. As the market’s risks and returns change, so too will the strategy’s composition. The diverse nature of this strategy ensures that it will manage downturns in the share market while minimising losses. 100% 80% 60% 40% 20% 0 What are the risks? Defensive Diversifying Growth It is important to understand the risks associated with investing in the Fund. Schroders actively assesses and manages risk at every stage of the investment process. The main risks specifically with investing in this strategy are market risk, equities risk, fixed interest and debt securities risk, derivatives risk and risks associated with international investing such as movements in exchange rates. For further details about the risks of investing in this strategy please refer to the Product Disclosure Statement. Fund information Contact details Retail Sales Team: 1300 136 471 Fund name Schroder Real Return Fund Wholesale Class APIR Code SCH0047AU Inception date 1 July 2010 Distribution frequency Normally twice yearly Benchmark RBA Trimmed Mean Management costs 0.90% pa Ray Macken Head of Sales ray.macken@schroders.com Ph: 02 9210 9330 Mob: 0414 300 796 Mardi Hall Head of Retail Sales mardi.hall@schroders.com Ph: 02 9210 9318 Mob: 0403 040 565 Chris Boyd (WA) National Account Manager chris.boyd@schroders.com Ph: 02 9210 9259 Mob: 0416 077 166 Jasmine del Villar (NSW/SA/ACT) National Account Manager jasmine.delvillar@schroders.com Ph: 02 9210 9313 Mob: 0401 576 385 David Burke (QLD/NSW) National Account Manager david.burke@schroders.com Ph: 02 9210 9256 Mob: 0403 106 377 Jude Fernandez (VIC/TAS) National Account Manager jude.fernandez@schroders.com Ph: 02 9210 9312 Mob: 0414 604 772 Lisa Hamilton (Researchers & Platforms) National Account Manager lisa.hamilton@schroders.com Ph: 02 9210 9316 Mob: 0410 564 775 Daniel Connell (VIC/NSW) Business Development Manager daniel.connell@schroders.com Ph: 02 9210 9352 Mob: 0414 385 968 Disclaimer: Investment in the Schroder Real Return Fund Wholesale Class may be made on an application form in the current Product Disclosure Statement (PDS) which is available from Schroder Investment Management Australia Limited (ABN 22 000 443 274, AFS Licence 226473) website www.schroders.com.au. The information contained in this flyer is general information only. It does not contain and should not be taken as containing any financial product advice or financial product recommendations. Before acting on the information contained in this flyer you should obtain a copy of the PDS and consider the appropriateness of the information in regard to your objective, financial situation and needs before making any decision about whether to invest, or continue to hold. The repayment of capital and performance in the Fund is not guaranteed by Schroders or any company in the Schroders Group. Opinions constitute our judgement at the time of issue and are subject to change. Past performance is not an indicator of future performance. Investment guidelines represented are internal only and are subject to change without notice. For security reasons, telephone calls may be taped. May 2014 SC919