October 2015
Marketing material
Schroder International Selection Fund
EURO Corporate Bond
Schroder ISF* EURO Corporate Bond invests primarily in investment
grade corporate bonds across Europe. The fund aims to achieve consistent
outperformance across all market environments by adopting a themes-based
investment approach combined with forward looking credit research.
Why invest?
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Equities
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a
Investment style
t
Adopts a top-down approach to identify themes driving all fixed income sectors
Focuses on building low correlated alpha sources while minimising risk
enefit from strong security selection thanks to Schroders’ fully integrated global fixed income
B
platform, combining expertise across all fixed income sectors.
Key highlights
Asset class
te
Take advantage of an innovative themes-based approach to investment and research
B
Capitalise on the credit opportunities available
The corporate bond market in Europe has seen tremendous growth over recent years offering a
wealth of investment opportunities across a diverse range of industries and companies. Although
the majority of Euro denominated corporate bond issuers are local companies, the market has
become increasingly global as many companies outside Europe choose to issue their credit in
Euros. The fund has some flexibility to invest in non-euro denominated bonds (which we hedge
back to euro) and other off benchmark positions, such as high-yield bonds. Themes-based approach to investment
Financial markets across the world are increasingly interrelated, with events having both a direct
and indirect impact on bond issuers across European credit markets. Schroders’ fixed income
platform brings together our global team of fixed income specialists to share proprietary research
and generate views for the global markets over the medium term. From this, the European credit
team identifies forward looking credit investment themes and works with our credit research team
to implement these themes through security selection.
A diversified asset class
The European corporate bond market is well diversified across region, industry and company
as well as credit quality. By implementing an innovative investment process and utilising all of
the resources at our disposal, we are able to develop investment themes that are diversified by
horizon and style, which is key to delivering consistent outperformance.
Extensive proprietary research
By utilising the in-depth analysis and detailed knowledge of our credit research team, we are able
to identify subtle and discreet effects that global events have on corporate bond issuers. This can
add real value to security selection. Our security selection is also enhanced by our credit analysts
working in collaboration with our strong equity research team, who together are able to develop a
deep understanding of the companies that they cover.
Fund Manager
Patrick Vogel, Head of European Credit
Patrick Vogel joined Schroders in August 2012 as Head of European Credit. Prior to joining Schroders, Patrick held roles at
Legal & General Investment Management as Head of European Credit and at Deutsche Bank as a senior portfolio manager.
Patrick has a Dipl-Kfm degree in Business Administration from Johann Wolfgang Goethe-Universitat Frankfurt am Main.
Source for rating: Citywire, awarded to Patrick Vogel, as at 31 August 2015.
*Schroder International Selection Fund is referred to as Schroder ISF throughout this document.
Schroder International Selection Fund EURO Corporate Bond
Investment process
Schroders’ Awards
Our integrated global fixed income team of asset class and sector specialists are based in local
markets around the world. They combine proprietary top-down research and fundamental credit
research within a disciplined fundamental research process. The team works closely with a strong
equity research team to develop deep understanding of the companies that they cover.
2014
1. Themes: Multiple, forward looking diversified themes to play out across various time
horizons. Themes implemented through issuer selection via Proprietary credit research
rewarding excellence in business
Special Commendation
Source: Management Today, ‘Britain’s Most
Admired Company’, 2013/2014; Investment
Europe ‘Investment Group of the year’ 2014;
Funds Europe Awards, special Commendation
for European Asset Management Company
(AUM over €20bn). Portfolio Adviser ‘Readers’
Choice Award’, Fund Awards 2014.
2. Credit strategy: Monthly meetings to assess top-down views on credit and identify
potential risks / opportunities
PORTFOLIO
3. Relative value: proprietary tools for quantitative credit and relative value analysis
Fund rating
4. Risk management: embedded within portfolio management and additional
independent oversight.
Source: Schroders, as at 30 September 2015.
Source: Schroders, Morningstar, rating awarded
to A Acc share class, as at 30 September 2015.
Risk considerations
–– The capital is not guaranteed
–– Non-investment grade securities will generally pay higher yields than more highly rated
To learn more about Schroders’
Luxembourg domiciled fund ranges, visit:
securities but will be subject to greater market, credit and default risk
–– A security issuer may not be able to meet its obligations to make timely payments of interest
www.schroders.lu
and principal. This will affect the credit rating of those securities
–– Currency derivative instruments are subject to the default risk of the counterparty.
The unrealised gain and some of the desired market exposure may be lost
–– Investments denominated in a currency other than that of the share-class may not be hedged.
The market movements between those currencies will impact the share-class
–– Investment in bonds and other debt instruments including related derivatives is subject
€437.4bn managed across
equities, fixed income, multi-asset,
alternatives and real estate.
to interest rate risk. The value of the fund may go down if interest rate rise and vice versa
–– It may be difficult to sell quickly positions of one or more companies to meet redemption
requests upon demand in extreme market conditions
An extensive global network of
3,600+ employees.
–– The fund may hold indirect short exposure in anticipation of a decline of prices of these
exposures or increase of interest rate
–– The fund may be leveraged, which may increase its volatility.
37 offices in 27 countries across
Europe, the Americas, Asia and
the Middle East.
Key information
ISIN code
LU0113257694
Bloomberg code
SCHEHIA:LX
Date of inception
30 June 2000
Fund currency
Benchmark
Entry charge
Ongoing charges (latest available)*
About Schroders
Over 200 years’ experience of
investment markets.
Source: Schroders, as at 30 June 2015.
EUR
Bank of America Merrill Lynch EMU Corporate
3.00% of gross investment amount
1.05%
All information in the table above is for the A Accumulation share class, for further share class information
please see the Prospectus.
* The ongoing charges figure is based on the last year’s expenses for the year ending May 2015 and may vary from
year to year.
Source for rating: Fitch, ‘Highest Standards’
awarded to Schroders on 1 April 2015.
Important information: This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the
“Company”). Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares. Subscriptions for shares of the Company can only
be made on the basis of its latest Key Investor Information Document and prospectus, together with the latest audited annual report (and subsequent unaudited semi-annual report, if
published), copies of which can be obtained, free of charge, from Schroder Investment Management (Luxembourg) S.A. The Company is a Luxembourg-registered UCITS recognised
in the UK under Section 264 of the Financial Services and Markets Act 2000. There will be no right to cancel any agreement to purchase shares under section 6.7 of the UK Financial
Services Conduct of Business Sourcebook. All or most of the protection provided by the UK regulatory system does not apply to investments in the Company and compensation will
not be available under the UK Financial Services Compensation Scheme. An investment in the Company entails risks, which are fully described in the prospectus. Past performance is
not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get the amount originally invested.
Schroders has expressed its own views and opinions in this document and these may change. This document is issued by Schroder Investment Management Ltd., 31, Gresham Street,
EC2V 7QA, who is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored. w47929