For professional investors and advisers only
Schroders’
QEP investment solutions
A strategic approach to
investing
Schroders QEP Investment Solutions | A Strategic Approach to Investing
The QEP Investment Team has been
managing global equities for over 15 years and
has a proven performance track record across
a comprehensive range of strategies.
We offer investors intelligent portfolio
construction grounded in innovative and
forward-looking research.
This brochure provides an introduction to our
investment philosophy, process and product
range, covering the following funds:
Schroder ISF1 QEP Global Core
Schroder ISF QEP Global Blend
Schroder ISF QEP Global ESG
Schroder ISF QEP Global Quality
Schroder ISF QEP Global Active Value
Schroder ISF QEP Global Value Plus
Schroder ISF QEP Global Emerging Markets
Schroder ISF QEP Global Absolute
Schroder International Selection Fund is referred to as Schroder ISF throughout this document.
1
Schroders QEP Investment Solutions | A Strategic Approach to Investing
An introduction
“We aim to offer clients marketleading performance, based on
strong stock selection, forwardlooking research and intelligent
portfolio construction.”
The QEP Investment Team has been a key component of
Schroders’ specialist equity capabilities since its launch in
1996. Led by Justin Abercrombie, our 28-strong team is
based in London, Sydney, New York and Hong Kong. We
currently manage around €36 billion for clients all over the
world. The team has generated a strong track record across
its range of global and emerging equity strategies.
Justin Abercrombie
Fund Manager and Head of Schroders’ QEP Investment Team
Fundamental insights on an industrial scale
We take a strategic approach to investing in global equities, marrying fundamental
analysis with the scalability and rigour of quantitative investment tools.
Our philosophy
Our philosophy is underpinned by three key principles:
1
A FOCUS ON STOCK VALUATIONS AND BUSINESS QUALITY
We focus on two key drivers of long-term equity returns: stock valuation and
business quality (as defined by measures of company profitability, stability and
financial strength).
2
PORTFOLIO CONSTRUCTION ON AN INDUSTRIAL SCALE
We use quantitative tools to ‘scale up’ our investment process and search
for the most attractive opportunities across a global universe of more than
15,000 stocks across more than 40 countries. This allows us to gain exposure
to a genuinely wide range of opportunities, including those potentially untapped
by other managers. In addition, the exceptional diversification of our portfolios,
typically invested in more than 500 stocks, helps reduce stock-specific risk.
3
EXPERIENCED FUND MANAGERS IN THE DRIVING SEAT
While computers lend breadth and scale to our process, an experienced fund
manager is ultimately responsible for constructing each of our portfolios. We
make every trade decision and are constantly seeking ways to enhance our
process and capture future opportunities.
Source: Schroders, assets as at 31 December 2015, team as at 31 March 2016.
1
Schroders QEP Investment Solutions | A Strategic Approach to Investing
A fundamental basis
Why invest in Value and Quality?
Defining Value
and Quality
We believe that Value and Quality are the two key drivers of long-term equity
returns. Our investment process focuses on identifying stocks with these
attributes across our wide global universe of over 15,000 stocks.
We analyse stocks using a variety of different measures. When it comes to
assessing Value, we use a range of indicators to evaluate how attractively priced
a stock is. These include measures of dividends, cash flow, earnings, sales and
assets. In terms of Quality, we look specifically at a business’ profitability, its
stability and its financial strength.
Identifying Value*
Identifying Quality*
1. Dividends (current, forecast and growth)
1. Profitability (return on equity, capital
employed, assets )
2. Cash flow (gross and net)
3. Earnings (current and forecast)
4. Sales and assets
2. Stability (of earnings, sales, dividends,
cash flow)
3. F
inancial strength (liquidity, leverage,
debt service)
* Sample of metrics used to measure Value and Quality.
Delivering returns
across the
market cycle
2
There is a wealth of evidence to support the long-term case for investing in both
Value and Quality as individual strategies. However, while both have outperformed
the broader equity market over the long term, they tend to deliver their returns at
different points in the market cycle. For example, Quality stocks tend to perform
well in environments when Value stocks can struggle such as periods of heightened
risk aversion or market uncertainty. However, as market conditions improve and
investors embrace riskier opportunities, Value strategies are typically rewarded as
higher Quality stocks lag.
SCHRODERS QEP INVESTMENT SOLUTIONS | A STRATEGIC APPROACH TO INVESTING
The chart below demonstrates the diversifying relationship between Value and
Quality based on US equity data stretching back to 1955, although a similar
relationship can be seen in the global markets. The blue line shows the returns of
Quality stocks minus the returns of Value stocks over time. It shows that Quality
has outperformed when risk aversion has been high, such as during the Global
Financial Crisis of 2007 – 2008, but has underperformed in periods where Value
has outperformed such as in the recovery of 2009.
We exploit this relationship between Value and Quality across our range of
global and emerging market equity strategies in order to offer clients a range of
risk and performance options, depending on their return target and risk appetite.
Quality outperforms
25%
20%
Credit crunch – risk aversion is high
15%
10%
5%
0%
Value outperforms
-5%
-10%
-15%
-20%
Global recovery,
conditions normalised
-25%
-30%
1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
Recessions
Quality less Value (annual return spread)
Source: Schroders, as at 31 October 2015. Uses QEP proprietary indicators which are composites of several
Quality and Value measures. Diagram shows the performance of the Quality indicator minus the Value indicator, over
12-month rolling periods, in USD terms.
3
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Portfolio
construction matters
Delivering higher returns
Stock selection
is only the
starting point
There are many ways to build an active portfolio and generate higher returns
than a market index. For many managers, picking the best stocks is the most
important aspect of this process. For us, knowing what to buy is only the
beginning – how to combine stocks and construct a portfolio is equally
important. We believe that this understanding of portfolio construction and how
to balance opportunities and risks effectively is one of our most significant
competitive advantages.
Our portfolio
construction
priorities
We take a number of strategic steps within our investment process which, together,
contribute to our ability to outperform the broader market through time.
1
LOOK BEYOND THE INDEX to access a wide opportunity set
As global investors we want to be able to access the very best opportunities,
wherever they may be. As such, we look far beyond the confines of traditional
market indices (typically dominated by the largest stocks, predominantly in the
developed world) to a truly global universe of over 15,000 stocks, including
emerging markets. Moreover, with the exception of our Core strategy, we do not
refer to index weightings in given sectors or regions when building our portfolios:
we only invest where we find the best opportunities from either a Value or a
Quality perspective.
2
‘Active share’
explained
Active share is a measure of
the proportion of a portfolio’s
holdings that are different to
the benchmark; an indexed
portfolio identical to the
benchmark would have a 0%
active share, and a portfolio
with no overlap at all with the
benchmark would have an
active share of 100%.
4
Diversification and conviction – the best of both worlds.
We build exceptionally well-diversified portfolios, typically invested in over
500 stocks. This level of diversification significantly reduces stock-specific
risk – the risk that the failure of a single investment could jeopardise the overall
performance of the fund – but it also exposes investors to a greater number and
a richer array of return opportunities. Crucially, a high level of diversification does
not mean compromising on conviction and active returns. It is possible to have
the best of both worlds. Our portfolios look very different to the index with active
shares typically in excess of 70% across our unconstrained range. (See ‘Active
Share’ explained).
3
WEIGHT STOCKS ACCORDING TO CONVICTION, NOT SIZE
We believe that the decision on how much to own of a given stock is as
important as selecting the stock in the first place. In particular, we believe in
breaking the link between stock weightings and size (market capitalisation).
Just because a stock is large does not necessarily mean it should form a bigger
component of your portfolio. Instead, we focus on investing according to how
much conviction we have in that stock (how attractive is it from a valuation and a
quality perspective?) and liquidity.
Schroders QEP Investment Solutions | A Strategic Approach to Investing
An innovative range
Offering options to our clients
We have developed a comprehensive range of solutions for clients. All QEP strategies are based on
our central body of research but exploit these insights in different ways in order to offer a range of
different style, risk and return options for our investors.
Strategy
Description
Relative
target*
Tracking
error **
Active
share
Number
of stocks
Strategy
inception
Global
Core
Designed to deliver repeatable
outperformance with low index relative risk
at a competitive fee.
+1%
<1.5%
>40%
500+
January 2000
Global
Blend
Combines Value and Quality in an indexunconstrained global strategy. Designed to
deliver higher returns across a broad range
of market environments.
+3%
3–4%
>70%
400+
September 2008
Global
ESG
Combines Value, Quality and ESG
considerations in an index-unconstrained
global strategy. Designed to deliver higher
returns across a broad range of market
environments.
+3%
3–4%
>70%
300+
September 2015
Global
Quality
Global index-unconstrained strategy,
focused on Quality stocks. Designed to
offer a more stable alternative to traditional
growth style investing.
+3%
3–4%
>70%
400+
October 2007
Global
Value
Global index-unconstrained strategy,
focused on Value stocks. Designed to offer
higher long-term returns with low stock
specific risk.
+3%
4–5%
>70%
500+
October 2004
Global
Value Plus
Global index-unconstrained strategy,
investing up to 150% long Value stocks and
up to 50% short lower Quality stocks. The
long side aims to maximise exposure to the
long-term Value premium, while shorting
lower Quality acts as both a style diversifier
and return driver.
+5%
5–7%
N/A
700+
July 2008
Global
Emerging
Markets
Combines Value and Quality in an indexunconstrained emerging markets strategy.
Designed to deliver higher returns across a
broad range of market environments.
+3%
3–5%
>70%
300+
March 2012
Global
Absolute
Global equity market neutral strategy
aiming to deliver uncorrelated absolute
returns. Exploits Value and Quality as key
drivers of long-term equity performance.
N/A
N/A
N/A
1000+
August 2010
*Outperformance objectives are gross of fees per annum over a complete market cycle. Global Core vs the MSCI World. Global Emerging
Markets vs the MSCI Emerging Markets. Global Absolute has an absolute return target vs LIBOR. Global ESG, given the fund’s ESG related
restrictions, the benchmark used is the MSCI AC World excluding the Casinos and Gaming, Tobacco, Aerospace and Defence, Brewers and
Distillers and Vintners sub-industries. Remaining strategies vs the MSCI AC World or comparable index.
**Tracking error is not targeted (except for Global Core); these figures are expected ex post values over the long term.
Source: Schroders. Guidelines only and subject to change.
5
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Our team
Established and experienced
The QEP Investment Team has been a key component of Schroders’ specialist
equity capabilities since its launch in 1996. Led by Justin Abercrombie, our
28-strong team is based in London, Sydney, New York and Hong Kong.
We currently manage around €36 billion for clients all over the world.
The team is organised across three key functions: Research, Portfolio
Implementation and Product Management. Research is responsible for analysing
new investment strategies and enhancing our existing processes. Portfolio
Implementation oversees the day-to-day management of client portfolios. Product
Management oversees client retention and business development.
Additionally, the QEP investment team draws on Schroders’ significant global
resources for trading, IT, risk and compliance.
Our senior investors
Justin Abercrombie
Head of QEP
Investment Team
David Philpotts
Head of Research
David King
Head of Portfolio
Construction and Risk
–
–
–
–
–
Joined Schroders in 1996
Investment career commenced in 1993
A founding member of the QEP team
Lead fund manager on all of the team’s global equity strategies
Holds a BSc in Business Economics from the University
of Reading and an MSc in Econometrics from London
Metropolitan University.
– Joined Schroders in 1996
– Based in Sydney
– Investment career began at the Bank of England in 1990
as an Econometrician
– Holds an MSc (distinction) and BSc (first class) in Economics,
University of Warwick.
–– Joined Schroders in 2000
–– Investment career commenced in 1989
–– David joined Schroders as part of the QEP investment team and
has held a variety of roles throughout the business
–– Holds an MSc (distinction) and BSc (first class) in Mathematics,
from the University of Warwick
–– David is a Fellow of the Institute of Mathematics and its Applications.
Stephen Langford
Senior Analyst and
Portfolio Manager
6
– Joined Schroders in 2003
– Investment career commenced in 1999 at Quaestor
Investment Management
– CFA charterholder
– Holds a DPhil in Chemical Physics, University of Oxford
and a BSc (Hons) in Chemistry and Molecular Physics,
University of Nottingham.
Source: Schroders, assets as at 31 December 2015, team as at 31 March 2016.
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Schroder ISF
QEP Global Core
Schroder ISF QEP Global Core is an actively managed fund which aims to deliver
consistent outperformance of the MSCI World with limited index-relative risk.
Why invest?
–– D
esigned to offer investors the benefits of index-based investing from a risk
and cost perspective, with the advantage of the relative outperformance
–– B
enefits from strategic diversification between Value and Quality drivers, offering
the potential for outperformance across a broad range of environments
–– E
xploits a wide opportunity set, tapping into all sectors and regions, and
investing across the market cap spectrum; some flexibility to deviate from the
index in a risk-controlled way.
Fund facts
ISIN code
Bloomberg code
Benchmark
Date of inception
Fund currency
Ongoing charges (latest available)2
Entry charge
LU0106255481
SCHGEQA:LX
MSCI World (NDR)
30 September 20011
USD
0.51%
Up to 1.00% of gross investment amount
Information in the table above is for the C Accumulation share class, for further share class information please see
the prospectus.
The fund originally launched on 03 June 1993 under different management. The QEP Investment Team took over
the management of the fund on 30 September 2001.
1
The ongoing charges figure is based on the last year’s expenses for the year ending December 2015 and may vary
from year to year.
2
Ratings
Source for ratings: Morningstar ratings,
as at 29 February 2016.
7
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Schroder ISF
QEP Global Blend
Schroder ISF QEP Global Blend follows a index-unconstrained strategy,
investing in stocks on the basis of valuations and business quality. It aims to
deliver above-market returns over the long run.
Why invest?
–– B
enefits from strategic diversification between Value and Quality drivers, offering
the potential for outperformance across a broad range of environments
–– E
xploits a wide opportunity set, tapping into all sectors and regions, including
the emerging markets, and investing across the market cap spectrum
–– Innovative approach to portfolio construction combining high conviction with
broad diversification.
Fund facts
ISIN code
LU0740768584
Bloomberg code
SQGDBCU:LX
Reference index
MSCI AC World (NDR)
Date of inception
29 February 2012
Fund currency
USD
Ongoing charges (latest available)
1
Entry charge
1.34%
Up to 1.00% of gross investment amount
Information in the table above is for the C 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 December 2015 and may vary
1
from year to year.
Ratings
Source for rating: Morningstar ratings
as at 29 February 2016.
8
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Schroder ISF
QEP Global ESG
Schroder ISF QEP Global ESG follows an index-unconstrained strategy,
investing in stocks on the basis of valuations, business quality and ESG
considerations. It aims to deliver above-market returns over the long run.
Why invest?
–– Benefits
from strategic diversification between Value and Quality drivers,
offering the potential for outperformance across a broad range of
environments, whilst also incorporating ESG considerations
–– Exploits
a wide opportunity set, tapping into all sectors and regions, including
the emerging markets
–– Innovative
approach to portfolio construction combining high conviction with
broad diversification.
Fund facts
ISIN code
LU1274619029
Bloomberg code
SIQGIZU:LX
Reference index
MSCI AC World Custom ESG (NDR)1
Date of inception
24 September 2015
Fund currency
USD
Ongoing charges (latest available)
0.8%
Entry charge
None
2
Information in the table above is for the IZ Accumulation share class, for further share class information please see
the prospectus.
Given the fund’s ESG related restrictions, the benchmark used for reference purposes is the MSCI AC World index
1
(NDR) excluding the Casinos and Gaming, Tobacco, Aerospace and Defence, Brewers and Distillers and Vintners
sub-industries.
The ongoing charges figure shown here is an estimate of the charges because the fund was launched recently and
2
did not have a year’s expenses upon which to calculate the figure. The fund’s annual report for each financial year
will include detail on the exact charges made.
9
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Schroder ISF
QEP Global Quality
Schroder ISF QEP Global Quality follows an index-unconstrained strategy
which tends to perform particularly well at times of market uncertainty or
heightened risk aversion. It aims to deliver above-market returns over the long run.
Why invest?
–– A
ims to offer investors a more stable alternative to traditional growth
approaches, by investing in higher quality companies
–– E
xploits a wide opportunity set, tapping into all sectors and regions, including
the emerging markets
–– Innovative approach to portfolio construction combining high conviction with
broad diversification.
Fund facts
ISIN code
LU0319795521
Bloomberg code
SCHGQAC:LX
Reference index
MSCI AC World (NDR)
Date of inception
17 October 2007
Fund currency
USD
Ongoing charges (latest available)
1
Entry charge
1.31%
Up to 1.00% of gross investment amount
Information in the table above is for the C 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 December 2015 and may vary 1
from year to year.
Ratings
Source for rating: Morningstar ratings
as at 29 February 2016.
10
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Schroder ISF
QEP Global Active Value
Schroder ISF QEP Global Active Value follows an index-unconstrained
strategy designed to exploit the long-term premium available to investors in Value
stocks. It aims to deliver above-market returns over the long run.
Why invest?
–– D
esigned to seek out attractively valued companies in order to harvest the
long-term value premium
–– E
xploits a wide opportunity set, tapping into all sectors and regions, including
the emerging markets, and investing across the market cap spectrum
–– Innovative approach to portfolio construction combining high conviction with
broad diversification.
Fund facts
ISIN code
LU0203346498
Bloomberg code
SCHGVCA:LX
Reference index
MSCI AC World (NDR)
Date of inception
29 October 2004
Fund currency
USD
Ongoing charges (latest available)
1
Entry charge
1.32%
Up to 1.00% of gross investment amount
Information in the table above is for the C Accumulation share class, for further share class information please see
the Prospectus.
1
The ongoing charges figure is based on the last year’s expenses for the year ending December 2015 and may vary
from year to year.
Ratings
Source for rating: Morningstar ratings
as at 29 February 2016.
11
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Schroder ISF
QEP Global Value Plus
Schroder ISF QEP Global Value Plus follows an index-unconstrained strategy,
aiming to deliver above-market returns over the long term. It has the flexibility to
invest up to 150% long in Value stocks and up top 50% short in lower Quality
stocks, making your capital work harder.
Why invest?
–– A
ims to generate outperformance across a broad range of market environments
by exploiting the long-term premium available to investors in Value stocks,
and also by shorting lower Quality stocks, which acts as a return driver and a
style diversifier
–– E
xploits a wide opportunity set, tapping into all sectors and regions, including
the emerging markets, and investing across the market cap spectrum
–– Innovative approach to portfolio construction combining high conviction with
broad diversification.
Fund facts
ISIN code
LU1019481453
Bloomberg code
SIQGCAU:LX
Reference index
MSCI AC World (NDR)
Date of inception
6 February 20141
Fund currency
USD
Ongoing charges (latest available)
2
Entry charge
1.33%
Up to 1.00% of gross investment amount
Information in the table above is for the C Accumulation share class, for further share class information please see
the Prospectus.
1
Although the inception date of the Schroder ISF QEP Global Plus was in February 2014 its predecessor fund, the
Schroder IF QEP Global Value Extension, was launched in July 2008; all assets in the predecessor fund transitioned
to the Schroder ISF vehicle and there were no resulting changes to the team, philosophy or process.
The ongoing charges figure is based on the last year’s expenses for the year ending December 2015 and may vary
2
from year to year.
Ratings
Source for rating: Morningstar ratings
as at 29 February 2016.
12
Schroders QEP Investment Solutions | A Strategic Approach to Investing
Schroder ISF
QEP Global Emerging Markets
Schroder ISF QEP Global Emerging Markets follows a index-unconstrained
strategy, investing in stocks on the basis of valuations and business quality. It
aims to deliver above-market returns over the long run.
Why invest?
–– B
enefits from strategic diversification between Value and Quality drivers, offering
the potential for outperformance across a broad range of environments
–– A
ll cap exposure; exploits a wide opportunity set, tapping into all sectors
and regions
–– Innovative approach to portfolio construction combining high conviction with
broad diversification.
Fund facts
ISIN code
LU0747139474
Bloomberg code
SGEMCUA:LX
Reference index
MSCI Emerging Markets (NDR)
Date of inception
29 March 2012
Fund currency
USD
Ongoing charges (latest available)
1
Entry charge
1.11%
Up to 1.00% of gross investment amount
Information in the table above is for the C Accumulation share class, for further share class information please see
the Prospectus.
1
The ongoing charges figure is based on the last year’s expenses for the year ending December 2015 and may vary
from year to year.
Ratings
Source for rating: Morningstar ratings
as at 29 February 2016.
13
SCHRODERS QEP INVESTMENT SOLUTIONS | A STRATEGIC APPROACH TO INVESTING
Schroder ISF
QEP Global Absolute
Schroder ISF QEP Global Absolute follows a global equity market neutral
strategy, aiming to deliver uncorrelated absolute returns over the long term.
Why invest?
– Aims to generate positive uncorrelated returns across a broad range of market
environments by exploiting two complementary drivers of long-term stock
returns – Value and Quality – both by going long in attractive stocks and short
in unattractive ones
– Exploits a wide opportunity set, tapping into all sectors and regions, including
the emerging markets, and investing across the market cap spectrum
– Innovative approach to portfolio construction combining high conviction with
broad diversification.
Fund facts
ISIN code
LU1201919690
Bloomberg code
SCHQGCU:LX
Date of inception
27 May 2015
Fund currency
Ongoing charges (latest available)1
Performance fee
Entry charge
USD
1.22%
10% of the outperformance2
Up to 1.00% of gross investment amount
Information in the table above is for the C Accumulation share class, for further share class information please see
the Prospectus.
14
1
The ongoing charges figure shown here is an estimate of the charges because the fund was launched recently
and did not have a year’s expenses upon which to calculate the figure. The fund’s annual report for each financial
year will include detail on the exact charges made.
2
Subject to the “high water mark” principle, 10.00% of the share class outperformance in excess of the BBA Libor
USD 3 Month Act 360.
T R U S T E D
H E R I T A G E
A D V A N C E D
T H I N K I N G
At Schroders, asset management is our business and our goals are
completely aligned with those of our clients – the creation of long-term value.
We manage €425.4 billion on behalf of institutional and retail investors,
financial institutions and high net worth clients from around the world,
invested in a broad range of asset classes across equities, fixed income,
multi-asset and alternatives.
We employ over 3700 talented people worldwide operating from 38 offices
in 28 different countries across Europe, the Americas, Asia, Middle East
and Africa, close to the markets in which we invest and close to our clients.
Schroders has developed under stable ownership for over 200 years
and long-term thinking governs our approach to investing, building client
relationships and growing our business.
To find out more about our business and our range of funds and
services, go to
www.schroders.com/qep
Source: Schroders as at 31 December 2015.
The capital is not guaranteed. 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. The fund will not hedge its market risk in a down cycle. The value of the fund will move similarly to the markets. Investments in small companies
can be difficult to sell quickly which may affect the value of the fund and, in extreme market conditions, its ability to meet redemption requests upon demand. Emerging equity
markets may be more volatile than equity markets of well established economies. Investments into foreign currencies entail exchange risks. The fund may be leveraged, which
may increase its volatility. The fund enters into financial derivative transactions. If the counterparty were to default, the unrealised profit on the transaction and the market
exposure may be lost. Changes in China’s political, legal, economic or tax policies could cause losses or higher costs for the fund. 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. The fund’s operations may depend on third parties in countries
where operational oversight standards are less developed. The fund may hold indirect short exposure in anticipation of a decline of prices of these exposures or increase of
interest rate. There is no guarantee that a financial derivative contract will achieve its intended outcome, even if the terms of the contract are completely satisfied. 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. 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. w48369