The Schroder QEP Global ex-US Value Equity strategy takes an index-unconstrained approach to international stock investing.
The strategy uses a value-biased investment process that seeks to exploit a wide range of stock selection opportunities across all market caps. While market cap indices have higher weights in expensive stocks, this strategy’s largest weights are in good value stocks with solid fundamentals. Schroder QEP Global ex-US Value
Equity is designed to be extremely well diversifi ed and aims to deliver higher returns over the long term.
– Over 15 years track record in managing global equity portfolios
– Team manages over $39 billion in assets
– Investment philosophy is based upon combining fundamental data and well-researched behavioral insights
– Considerable emphasis is placed on construction and genuine diversifi cation of risk
1. Value outperforms in the long run: Our analysis suggests that value investing has ‘worked’ in 36 out of 40 countries on an historical basis.
Academic evidence dating back to the 1920s further supports the idea that value is a powerful long-term investment strategy.
1 Our approach to investing is designed to invest alongside this favorable long-run tailwind from value.
2. Seeks high return without concentrated stock risk: Seeking higher returns can be associated with greater risk, as this is often achieved through a very concentrated stock portfolio. We seek to reduce stock risk by building a highly diversifi ed portfolio but with no less conviction.
3. Stock weights determined by fundamentals, not market cap: Our approach is to weight stocks based upon their fundamentals and liquidity. This is more balanced and reduces stock selection ‘mega-cap’ drag which is particularly acute for other value investors.
4. Bottom-up, index unconstrained investing for more effi ciency: We maximize our investment opportunities by systematically analyzing over 15,000 global stocks every day. The more attractively-priced stocks we fi nd in a particular region or sector, the greater the subsequent portfolio allocation. This unconstrained bottom-up approach maximizes the potential return opportunity and avoids dead-money being allocated to expensive stocks to satisfy index constraints.
1 Graham & Dodd (1934), Barbara & Lyon (1997), Basu (1977), Davies (1994), Fama and French (1992, 1993, 1995, 1998, 2006), Rosenberg, Reid and Lamstein (1985)
15%
As of March 31, 2016
*Inception August 31, 2006
10%
Schroder QEP Global ex US Value (Gross)
Schroder QEP Global ex US Value (Net)
MSCI AC World ex US †
2.40 2.22
2.40 2.22
5%
†The MSCI AC World ex USA
Index captures large and mid cap representation across 22 of 23
Developed Markets (DM) countries
(excluding the US) and 23 Emerging
Markets (EM) countries. With 1,856 constituents, the index covers approximately 85% of the global equity opportunity set outside the US
0%
-5%
-10%
-15%
Difference (Gross)
Difference (Net)
-0.38
QTD
+2.78%
+2.60%
-0.38
YTD
+2.78%
+2.60%
-3.79-4.47
-9.19
1 yr
+5.39%
+4.72%
3.13 2.42
0.32
3.09 2.37
0.31
4.86 4.14
1.62
3 yr
+2.82%
+2.10%
5 yr
+2.78%
+2.06%
Annual S.I.*
+3.24%
+2.51%
Gross
Net
MSCI AC World ex US
Difference (Gross)
Difference (Net)
2015
-3.16%
-3.83%
-5.66%
+2.51%
+1.83%
2014
-3.39%
-4.07%
-3.87%
+0.47%
-0.20%
2013 2012 2011
+4.40% +3.18% +2.32%
+3.57% +2.35% +1.70%
Past performance is not a guide to future performance. The value of an investment can go down as well as up and is not guaranteed. Please refer to the disclosures at the end of the document for important information about the composite, including the defi nition of the Benchmark. Performance for periods greater than 1 year is annualized.
Please see the disclosures at the end of this document for more details about the composite creation date.
All data and statistics as of March 31, 2016.

Schroder QEP Global ex-US Value Equity
33.3
Mega (>$20bn)
60.6
Large ($5bn-$20bn)
25.3
31.7
29.1
Mid ($1bn-$5bn)
7.7
10.4
Small ($250m-$1bn)
0.0
Micro (<$250m)
1.8
0.0
Schroder QEP Global ex-US Value
MSCI AC World ex US
Cash
0.1
0.0
0 20
Source: Schroders, MSCI as of March 31, 2016.
40 60 80
Cont Europe
Japan
United Kingdom
Emerging Markets Asia
Pacific Ex Japan
Emerging Markets Emea
North America
Emerging Markets Latam
3.7
3.1
6.6
10.4
8.6
7.2
2.3
2.9
Cash
0
0.1
0.0
10
Source: Schroders, MSCI as of March 31, 2016.
16.9
16.1
15.2
13.8
14.5
15.2
20
30.3
33.1
Schroder QEP
Global ex-US Value
MSCI AC World ex US
30 40
Industrials
11.2
12.7
14.9
Materials
6.9
Consumer Discretionary
9.8
11.2
12.2
Telecommunication Svcs
5.3
9.0
Banks
14.9
Health Care
Information Technology
Energy
Insurers/Asset Mgt
6.4
6.3
5.6
7.0
8.6
8.8
8.3
8.4
8.0
Consumer Staples
11.1
Schroder QEP
Global ex-US Value
Real Estate
3.1
4.1
2.3
3.6
MSCI AC World ex US
Utilities
Cash
0
0.1
0.0
5 10 15 20 25
Source: Schroders, MSCI as of March 31, 2016.
Sectors/regions/market caps listed are shown for illustrative purposes and are not to be considered a recommendation to buy or sell.
Active share 1
Total weight of non-index stocks
Tracking Error (annualized since inception)
Number of stocks
Weighted average market cap ($m)
Price to book 4
Price to earnings
Return on equity 6
5
3
2
76.6%
36.6%
3.48
840
30,624
1.37
14.15
15.67
Source: Schroders, MSCI as of March 31, 2016. Inception date August 30, 2006.
Characteristics are vs. MSCI AC World ex US Index.
1. Measures the percentage amount the portfolio differs from the benchmark. A reading of 0% suggests holdings are identical to the benchmark. 2. The annualized standard deviation of the active returns of a portfolio relative to the benchmark. 3. An average that takes into account the proportional relevance of each component, rather than treating each component equally. Market cap is the market price of an entire company on any given day, calculated by multiplying the number of shares outstanding by the price per share. 4. A ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share. 5. The sum of a company’s price-to-earnings, calculated by taking the current stock price and dividing it by the trailing earnings per share for the past 12 months. 6. The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation’s profi tability by revealing how much profi t a company generates with the money shareholders have invested.
5.
6.
7.
8.
1.
2.
3.
4.
Telstra Corp Ltd.
Roche Holdings AG
Astrazeneca
Nestle SA
Taiwan Semiconductor Manufacturing Corp.
Novartis AG
Sanofi
Total SA
9.
TeliaSonera AB
10.
Telenor ASA
Total
Country
Australia
Switzerland
United Kingdom
Switzerland
Taiwan, Province Of China
Switzerland
France
France
Sweden
Norway
% of Total Market Value
0.75
0.75
0.74
0.74
0.74
0.74
0.73
0.73
0.72
0.71
7.35
Source: Schroders as of March 31, 2016.
Securities listed (excluding cash and cash equivalents) are shown for illustrative purposes and not to be considered a recommendation to buy or sell. The top ten holdings are based on a representative account. Cash and cash equivalents are excluded from the calculations. These holdings are subject to change and should not be viewed as an investment recommendation. It should not be assumed that any of these holdings were or will be profi table.

Schroder QEP Global ex-US Value Equity
Market Review
Developed equity markets ended the fi rst quarter broadly fl at which disguised a very volatile start to the year. By mid-February global markets had fallen sharply due to concerns about the strength of the global economy. As has been the recent case when investors take fright, policymakers marched to the rescue. Dovish moves by central banks underscored a big rebound in commodity prices.
Firmer oil prices, which in our view appear to have become the key barometer of investors’ risk tolerance, played a signifi cant role in boosting sentiment. Developed markets rallied strongly over the remainder of the quarter, but it was the new-found strength in emerging markets and riskier assets that further reinforced the recovery. Emerging markets ended the quarter ahead of developed equities.
The fi rst quarter of 2016 bore the hallmarks of a period of market rotation, as the extremes of the last few years receded and tentative signs of a recovery in Value emerged. Since the mid-February low, market performance has been broadening from the narrow cohort of winners that dominated last year and has been led by previous laggards.
The dominant performance of growth and defensive equities in recent years has created many opportunities for investors, particularly those with a value orientation. We believe the common view that value can only be captured today by taking on excessive risk to be overly simplistic. Value opportunities are spread much more widely than the traditional ‘risky’ areas of emerging markets and resources. To mention just a few, we see signifi cant opportunities in US industrials, global banks and the UK market
Performance and Strategy
The QEP Global ex US Value strategy outperformed its reference index over the fi rst quarter, with contributions from all sectors.
Our holdings in telecoms, where we focus on companies with good fi nancial strength, boosted relative performance: we saw contributions across a number of regions, but emerging markets such as South Africa and Thailand stood out. Stock selection in the technology sector was also a strong contributor with positive infl uences from many parts of the globe, notably semiconductor manufacturers in Taiwan, German software holdings, and hardware companies in Japan, the UK and Taiwan. Positions held in consumer discretionary stocks in several regions helped relative performance, but even more signifi cant was the benefi t of avoiding the larger auto manufacturers in Japan and Continental Europe.
Materials was another strong contributor, in particular our mining holdings in Australia and South Africa, and gold stocks in the latter and Turkey.
Outlook and Positioning
We maintain a lower weight in the defensives on which the market continues to place high valuations, notably consumer staples.
We have continued to trim defensive positions over the quarter
(telecoms being the exception) in order to invest in more attractive opportunities. We maintain a higher weight in the telecoms sector where many companies offer an attractive dividend yield. Amongst utilities and telecoms we are still focused on stocks where dividends are well covered by cashfl ows coupled with reasonable balance sheets.
Our exposure to technology stocks is focused on attractively valued, higher quality names. In consumer discretionary we continue to maintain exposure across a broad range of industries. We added to selected industrials over the quarter, particularly European stocks.
Our focus within both consumer discretionary and industrials remains on those stocks with a track record of producing strong cashfl ows which are trading at depressed valuations.
We have maintained our modest overweight position in materials.
Mining stocks form the highest exposure within materials where we like the larger, lower cost, diversifi ed miners best. Similarly, within energy we are avoiding the higher cost producers, such as
Canadian oil sands, which are likely to be impacted to a greater extent by continued oil price pressure.
The strategy’s exposure to fi nancials remains driven fi rst by our view of the quality (risk) of a company and then the right valuation for any opportunity. Within this sector we remain focused on identifying and taking advantage of selective deep value opportunities in the banking sector where the balance of risk and return is favorable.
Source: Schroders
Important Information: Schroders is a global asset management company with $462.1 billion under management as of December 31, 2015. Our clients are major fi nancial institutions including banks and insurance companies, public and private pension funds, endowments and foundations, high net worth individuals, fi nancial intermediaries and retail investors. Our aim is to apply our specialist asset management skills in serving the needs of our clients worldwide and in delivering value to our shareholders. With one of the largest networks of offi ces of any dedicated asset management company and over 420 portfolio managers and analysts covering the world’s investment markets, we offer our clients a comprehensive range of products and services. Further information about Schroders can be found at www.schroders.com/us. Portfolio data and risk characteristics based on a sample account. Details may vary from account to account. 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. The information and opinions contained in this document have been obtained from sources we consider to be reliable. 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.
Schroders has expressed its own views and opinions in this document and these may change. Past performance is not a guide to future performance. The value of investments can go down as well as up and is not guaranteed. Sectors/securities illustrate examples of types of sectors/securities in which the strategy invested and may not be representative of the strategy’s current or future investments. Portfolio sectors/securities and allocations are subject to change at any time and should not be viewed as a recommendation to buy/sell. 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. Schroder Investment Management North America Inc. is an indirect wholly owned subsidiary of Schroders plc and is a SEC registered investment adviser and registered in Canada in the capacity of Portfolio Manager with the Securities Commission in Alberta, British
Columbia, Manitoba, Nova Scotia, Ontario, Quebec, and Saskatchewan providing asset management products and services to clients in Canada. This document does not purport to provide investment advice and the information contained in this newsletter is for informational purposes and not to engage in a trading activities. It does not purport to describe the business or affairs of any issuer and is not being provided for delivery to or review by any prospective purchaser so as to assist the prospective purchaser to make an investment decision in respect of securities being sold in a distribution. 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 LLC, a member of the FINRA.
SIMNA Inc. and Schroder Fund Advisors LLC are indirect, wholly-owned subsidiaries of Schroders plc, a UK public company with shares listed on the London Stock Exchange. 875
Third Avenue, New York, NY 10022-6225, (212) 641-3800, www.schroders.com/us.

Schroder QEP Global ex-US Value Equity
All investments, domestic and foreign, involve risks including the risk of possible loss of principal. The market value of the portfolio may decline as a result of a number of factors, including adverse economic and market conditions, prospects of stocks in the portfolio, changing interest rates, and real or perceived adverse competitive industry conditions. Investing overseas involves special risks including among others, risks related to political or economic instability, foreign currency (such as exchange, valuation, and fl uctuation) risk, market entry or exit restrictions, illiquidity and taxation. Emerging markets pose greater risks than investments in developed markets.
Schroder QEP Global ex-US Value
As of: December 31, 2014
Defi nition of the Firm: The Firm is defi ned as all accounts managed by Schroder Investment Management in the UK and US, by wholly owned subsidiaries of Schroders PLC. Prior to January 1, 2007 SIM London & SIM North America existed as two separate Firms which were compliant & verifi ed as separate entities until December 31, 2006. The consolidation of these two Firms was made as part of a move towards creating one global Firm. Composite and Firm assets reported prior to January 1, 2007 represent those of the legacy fi rm which managed the product. Prior to January 1, 2011 the SPrIM (Schroder Property Investment Management) Firm existed separate to the Schroder Investment Management UK and US Firm, from January 1, 2011 these Firms have been combined into a single fi rm. On April 2, 2013, Schroder U.S. Holdings Inc., a subsidiary of Schroders plc, purchased STW
Fixed Income Management LLC (“STW”) and on July 2, 2013, Schroders plc, purchased Cazenove Capital Holdings, assets managed by STW and Cazenove are included in the Firm from January 1, 2014. Assets Managed against a liability driven mandate are excluded from the GIPS Firm. A complete list and description of the Firm’s composites and performance results is available upon request.
Composite Defi nition: The QEP – Global ex-US Value Composite (the “Composite”) is comprised of all Schroder Investment Management (UK & US), fully discretionary accounts that are managed in a similar manner and seek to achieve a total return above the MSCI AC World ex-US (NDR), MSCI EAFE (NDR) or comparable index through active investment in diversifi ed, index-unconstrained, Value style-biased portfolios. Composite accounts typically do not hold US securities, and invest predominantly in equities and equity-related securities, although other fi nancial instruments are permitted. Derivatives may be used to achieve the investment objective and to reduce risk or manage the fund more effi ciently.
None of these accounts use leverage. This description was redefi ned on 11/29/2012, the redefi nition has been made to enhance the composite description by increasing the level of detail used to describe the investment strategy. Previous disclosures are available upon request.
As of November 2013 the primary benchmark for this composite was changed from MSCI EAFE (NDR) to the MSCI AC World ex-US (NDR) for all periods since inception. The latter is a more appropriate comparison for the strategy, as emerging markets are typically included in the investment universe. No change was made to the investment process and the benchmark continues to be used only as a reference for performance comparison.
Composite Construction: New accounts are included from the beginning of the fi rst full month of management on a discretionary basis. Terminated accounts are excluded from the end of the last full month of discretionary management. This Composite has no minimum asset level for inclusion.
The composite currency is US Dollar
Composite Inception Date: 08-31-2006
Composite Creation Date: 11-01-2006
Calculation Methodology: The portfolio returns are time-weighted rates of return that are adjusted for cash fl ows. Portfolio returns are combined using beginning of period asset weights to produce the composite return. Periodic returns are geometrically linked to produce annual returns.
Dividends on equities are recognized net of irrecoverable withholding tax. Since January 1999 dividends have been recognized as of the ex-dividend date having previously been recognized on a cash basis. Performance results are presented before the deduction of management fees and custodian fees but after trading expenses.
Fee Calculation: Net of fees composite returns are prepared by deducting a model fee based on the highest retail management fee of 0.7%. Actual fees paid by institutional accounts in the composite were less than this amount.
Dispersion: The dispersion of annual returns is measured by the asset weighted standard deviation of portfolio returns represented within the composite for the full year provided a minimum of 5 portfolios are available.
Additional Information: The exchange rates used are provided by WM. Each currency is valued at 4 pm on the last business day of the month. Additional information regarding policies for valuing portfolios, calculating and reporting returns and a description of all composites are available on request.
GIPS Compliance and Verifi cation: Schroder Investment Management (UK & US) claims compliance with the Global Investment Performance Standards GIPS® and has prepared and presented this report in compliance with the GIPS standards. Schroder Investment Management (UK & US) has been independently verifi ed for the periods January 1, 1996 to
December 31, 2014.
Verifi cation assesses whether (1) the fi rm has complied with all the composite construction requirements of the GIPS standards on a fi rm-wide basis and (2) the fi rm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The QEP – Global ex-US Value (the “composite”) has been examined for the periods January 1, 2008 to December 31, 2014. The verifi cation and performance examination reports are available upon request.
Composite Performance Results
Composite - QEP - Global ex-US Value
Primary Benchmark - MSCI AC World ex US (NDR)
Secondary Benchmark - MSCI EAFE (net dividends re-invested)
Currency: USD
Gross Returns as of: Dec-31- 2014
Firm: SIMNA
Year
2014
2013
2012
2011
2010
2009
2008
2007
2006*
Gross Composite
Return
-3.39%
19.69%
20.02%
-11.39%
18.17%
55.96%
-44.92%
11.88%
13.83%
Net Composite
Return
-4.07%
18.86%
19.18%
-12.01%
17.34%
54.88%
-45.30%
11.11%
13.57%
As at Dec 2014
Annualized 3 Year
Annualized 5 Year
Annualized 7 Year
Annualized 10 Year
Annualized S.I.
3
Gross Composite
Return
11.54%
7.76%
3.22% n/a
5.72%
Net Composite
Return
10.76%
7.01%
2.50% n/a
4.99%
Primary
Benchmark
Return
-3.87%
15.29%
16.83%
-13.71%
11.15%
41.45%
-45.52%
16.65%
11.21%
Primary
Benchmark
Return
9.00%
4.43%
-0.63% n/a
2.63%
Secondary
Benchmark Return
-4.90%
22.78%
17.32%
-12.14%
7.75%
31.78%
-43.38%
11.17%
10.52%
Secondary
Benchmark Return
11.06%
5.33%
-0.47% n/a
2.10%
3 Year
Composite
Risk
1
12.86%
15.91%
18.42%
23.39%
29.06%
27.46% n/a n/a n/a
Composite
Risk 1
12.86%
15.74%
21.81% n/a
20.48%
3 Year Primary
Benchmark
Risk
1
12.99%
16.46%
19.53%
23.04%
27.67%
25.60% n/a n/a n/a
Primary
Benchmark
Risk 1
12.99%
16.51%
21.26% n/a
19.96%
3 Year
Secondary
Benchmark
Risk
1
13.21%
16.48%
19.65%
22.75%
26.61%
23.91% n/a n/a n/a
Secondary
Benchmark
Risk 1
13.21%
16.73%
20.71% n/a
19.34%
Number of
Portfolios
(throughout period)
< 5
< 5
< 5
< 5
< 5
< 5
< 5
< 5
< 5
Account
Dispersion
2 n/a n/a n/a n/a n/a n/a n/a n/a n/a
Market Value at
Average Account
Value at end of end of Period
772,944,211
623,261,137
409,633,510
16,845,868
13,678,517
11,073,158
8,082,917
13,211,292
11,372,192
Period
257,648,070
311,630,569
204,816,755
16,845,868
13,678,517
11,073,158
8,082,917
13,211,292
11,372,192
Percentage of
Firm Assets
0.27%
0.24%
0.18%
0.01%
0.01%
0.01%
0.01%
0.01%
0.03%
Total Firm Assets
4
282,697,291,678.31
255,707,099,715.41
223,940,416,622.14
194,958,113,724.01
202,946,283,267.48
161,183,088,769.55
89,646,473,691.69
161,124,537,714.28
35,533,229,886.00
Fee Schedule
Net of fees composite returns are prepared by deducting a model fee based on the highest retail management fee of 0.7%. Actual fees paid by institutional accounts in the composite were less than this amount.
2 Asset weighted standard deviation of annual gross returns of accounts that have been in the composite for the entire yea
3 Since Inception
4 Since December 31, 2003 Total Firm Assets include non-fee paying accounts. 2003 Total Firm Assets value has been restated due to the inclusion of those non-fee paying accounts
Total Firm Assets from 2007 incorporate the UK & US firm merger as detailed in the Definition of the Firm, from the start of 2011 Schroder Property Investment Management Mult
Manager accounts are included in the Total Firm Assets
* Returns are for a part period year
N/A - Information is not statistically meaningful due to an insufficient number of portfolios for the entire year
Source: Schroders
PFS-QEPGAVEXUS