938451 1 schroder gaia platform_cqs november berlin 2011 final

Schroder GAIAUCITS Hedge Fund Platform

Ritchie Oriol Product Specialist, CQS

November 2011 | For professional investors and advisers only

Schroder GAIAIntroduction

GAIA stands for Global Alternative Investor Access

Schroder GAIA is a Luxembourg UCITS SICAV

Currently 3 funds available on the platform (see below) looking to add 6 additional funds in 2012

1Schroder GAIA CQS Credit

Source: Schroders as at 31 October 2011

Fund Strategy Manager Launch dateAUM

As at 31/10/11

Schroder GAIA Egerton European Equity

European equity long/ short

John Armitage, Egerton Capital 25 November 2009 USD 640m

Schroder GAIA Sloane Robinson Emerging Markets

Emerging market equity long/ short

Richard Chenevix-Trench and Christopher Morrell, Sloane Robinson

30 June 2010 USD 219m

Schroder GAIA CQS Credit Credit long short Simon Finch, CQS Asset

Management Limited 13 April 2011 USD 193m

Schroder GAIA CQS Credit

Prospective investors should consult with their independent financial advisor with respect to their specific investment objectives, financial situation or particular needs to determine the suitability of investment.

CQS

Founded in 1999, CQS is a USD10.2bn1 global multi strategy asset manager

Strategies managed in asset backed security, convertible security, corporate credit, distressed debt, loan, multi-strategy and resource products

Over 200 staff located globally of which 76 are specialist investment professionals

Experienced portfolio management and trading teams located in key financial centres

Strong risk adjusted performance track record underpinned by fundamental research and quantitative analysis

Founding member of the Hedge Fund Standards Board


1Source: CQS as at 30 September 2011.

What is Schroder GAIA CQS Credit?

An absolute return focused credit long short UCITS fund that invests in corporate bonds and liquid credit protection (CDS)

Investment Grade and High Yield corporate credits primarily in North America and Europe

Aims to outperform LIBOR with a target excess net return of +4% to +8%1

Low correlation to other credit managers and negative correlation to risky asset indices2

Actively hedged to minimise interest rate exposure

Portfolio of approximately 30 – 50 single names

Based on an existing credit long short hedge fund managed by CQS since April 20093

– Since Inception annualised return: 6.92%; volatility: 3.78%4


1Target returns are targets only, are based over the long-term of the performance projections of the investment strategy and market conditions at the time of modelling and therefore, subject to change. There is no guarantee that any target return can be achieved. Investors should not place any reliance on such target return in deciding whether to invest in the Fund. Please refer to the Prospectus for full details.2 CQS Analysis3CQS Credit Long Short Fund launched April 1 20094As at 30 September 2011. Source: CQS Credit Long Short Fund USD B1 Series, Administrator Final NAV

Performance Since Launch (%)1



Source: Schroders, as at 31 October 2011. Schroder GAIA CQS Credit C Accumulation EUR NAV to NAV basis, net income reinvested. Past performance is no guarantee of future returns. 1Fund inception: 13 April 2011.

98

100

102

104

106

108

Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11

Schroder GAIA CQS Credit Performance

(%) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec ITD

2011 (0.38) 0.79 2.09 1.27 1.78 2.11 (1.01) 6.80

NAV

980

1030

1080

1130

1180

1230

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11

CQS Credit Long Short (CLS) Fund


¹Cumulative performance since inception to 30 September 2011, net of fees. USD Compounded Return is USD B1 SeriesPast performance is no guarantee of future returns. Please refer to the Fund’s Offering document for more detailed information. Investors should be aware that the performance of the UCITS fund and the flagship (non-UCITS) are not comparable.

CLS Fund Performance

NAV

(%) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec YTD

2011 0.74 (0.10) 0.22 (0.13) 0.63 1.63 1.66 1.34 1.65 7.88

2010 2.45 1.86 (0.28) 2.39 1.33 0.07 (0.62) 1.51 0.17 (0.46) 0.32 (0.56) 8.40

2009 - - - (0.85) 0.32 1.64 (1.47) 1.35 0.02 0.44 1.42 (1.75) 1.08

Performance Since Launch (%)1

USD Compounded Return

Since Launch Performance Differential 58bps

Schroder GAIA CQS Credit Performance vs. Offshore Fund


Source: Schroders NewFinance Capital, as at 31 October 2011.

95

100

105

110

Apr-11 May-11 Jun-11 Jul-11 Aug-11 Oct-11

Schroder GAIA CQS Credit C Acc EUR Share ClassCQS Credit Long Short Feeder Fund Ltd- B1 EUR

-2%

-1%

0%

1%

2%

3%

4%

May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11

Schroder GAIA CQS Credit C Acc EURCQS Credit Long Short Feeder Fund Limited - B1 EUR

Superior performance over peer group since inception

Schroder GAIA CQS Credit Performance vs. Peer Group


Source : Morningstar as at 30 September 2011

Rank YTD

2011 Since Inception

(13/04/2011)Peer Group Launch Date May Jun Jul Aug Sep YTD1 Schroder GAIA CQS Credit A Acc EUR 13/04/2011 0.75 2.05 1.21 1.77 2.09 7.68 7.682 GAM Star Divers Mkt Netrl Credit EUR Acc 24/09/2010 0.32 0.19 0.18 0.53 0.19 2.17 1.473 Avoca Credit Abs Return Fd A EUR 28/04/2010 0.71 -1.34 0.28 -0.13 -0.69 1.22 -1.634 Threadneedle Credit Opp Inst EUR 08/09/2009 0.27 0.29 -0.34 -2.51 -1.19 -1.51 -3.375 Henderson Credit Alpha A Acc 01/03/2010 1.7 -3.89 2.82 -2.42 1.63 -1.73 -0.886 JPM Income Opportunity A (acc)-EUR (Hdg) 12/07/2007 -0.06 -0.3 -0.28 -1.74 -1.62 -2.19 -3.767 Absolute Insight Credit B1p EUR 31/10/2009 0.62 -0.72 0.02 -4.49 -6.86 -2.20 -11.58 Oyster Credit Opportunities EUR 2 23/07/2009 0.08 -0.55 -0.1 -3.28 -3.39 -5.28 -7.259 Pictet Total Return Kosmos P EUR 23/06/2011 N/A N/A 0.76 0.83 -0.12 N/A N/A

Mean/Count 0.95 -0.64 0.61 -1.27 -0.29 -1.34 -1.49Standard Deviation 0.93 1.6 0.91 1.99 3.31 2.26 5.66

Since launch, the strategy has demonstrated low volatility and negative correlation to traditional risky assets

Historic Volatility & Correlation


1 CQS’s offshore Credit Long Short Fund from April 2009 through to end of April 2011 then chain linked to Schroder GAIA CQS Credit C Acc EUR. Performance data is provided for information purposes only. Performance of Schroder GAIA CQS Credit may differ to that of CQS’ Credit Long Short Fund and therefore historic data should be interpreted accordingly. Source: Schroders NewFinance Capital as at 30 September 2011.

Historic Volatility Correlation

Schroder GAIA CQS Credit1 3.9% 1.00

S&P 500 16.5% (0.59)

MSCI World 18.7% (0.64)

Dow Jones Credit Suisse Hedge Fund Index 6.0% (0.51)

IBOXX Liquid High Yield Index 10.3% (0.64)

Barclays Global Aggregate Bond Index 2.2% 0.32

How to allocate to UCITS alternative investments?Complementary when combined with long only credit strategies


Source: Schroders, data from April 2009 to 31 August 2011 in EUR. 1 CQS’s offshore Credit Long Short Fund B1 EUR from April 2009 through to end of April 2011 then chain linked to Schroder GAIA CQS Credit C Acc EUR. 2 Morningstar Peer Group Average (50%:GIF OS EUR High Yield Bond + 50%: GIF OS EUR Corporate Bond )

6%

8%

10%

12%

14%

16%

2% 3% 4% 5% 6% 7%

20:80

40:60

60:40

80:20

100:0

0:100

Portfolio AllocationAllocation to Schroder GAIA CQS Credit1 0% 20% 40% 60% 80% 100%Allocation to Credit long only Peer Group2 100% 80% 60% 40% 20% 0%

ResultsAnnualised Return 16.06% 14.30% 12.53% 10.75% 8.95% 7.15%Annualised Volatility 7.02% 5.34% 3.83% 2.79% 2.80% 3.85%Sharpe Ratio 2.24 2.61 3.18 3.72 3.07 1.76

CQS1

Long Only Peer Group2

Annualised Returns

Annualised Volatility



Initial charge: Percentages are stated with reference to the total subscription amount, which represents A and C Shares 3.09% and A1 Shares 2.04% of the Net Asset Value per Share. Investment Management & Distribution Fee: Percentages are stated with reference to the Net Asset Value of the Fund or the Net Asset Value per Share, as may be appropriate. Source: Schroders 31 October 2011* USD Hedged shares - BBA Libor USD 3 Month Act 360 GBP Hedged shares - BBA Libor GBP 3 Month Act 365

Share Classes A A1 CMinimum Initial Subscription/ Minimum Holding €10,000 €50,000 €500,000

Initial Charge Up to 3% Up to 2% Up to 3%Investment Management Fee 2.00% 2.00% 1.50%Distribution Fee None 0.50% None

Performance Fee 20% of the outperformance over BBA Libor EUR 3 Month Act 360* subject to a High Water Mark

Key FeaturesInvestment focus Credit long short portfolio principally investing through corporate bonds and liquid CDSLaunch date 13 April 2011Dealing frequency Weekly (every Wednesday), and on the last business day of each monthDeal cut off 13.00 Luxembourg time three business days preceding a dealing daySettlement Three business days following a dealing dayNAV Publication Daily on t + 1Base Currency EURAvailable Share Classes EUR, GBP Hedged, USD Hedged Fund Registration Fund will be registered in key European markets

(where required, certain share classes will include UK reporting status, German and Austrian tax reporting)

Portfolio Management Team


*Cross coverage of sectors by analysts. Total team size is 13, excluding ABS and Distressed teams

Credit Long Short Portfolio Management Team

Michael Hintze

CEO and SIO

Simon Finch – CIO CreditSurojit Roy Choudhury

Simon BuckinghamDarren Toner

CQS Fundamental Research Serge Ramin – Head of Research

Energy AsiaFinancials and Utilities Comms.

Basic Materials, Industrials, Diversified

Real Estate DistressedABS

Consumer Cyclical & Non

Cyclical

Dedicated Credit Research Team * Specialist Research

Ritchie Oriol – Product Specialist

Active Trading: Investment Thesis of Each Position Challenged and Validated on an Ongoing Basis

Investment Process


Macro Themes

Fundamental Credit Research

Technicals & News Flow

Portfolio of Long and Short Credit

Positions(Typically 30-50)

Position Selection

Bottom Up

Fundamentals

Catalysts

Asymmetrical Risk / Reward

Centralised Decision

Position Construction

Position Sizing versus Hedging

Spread Risk

Jump Risk

Liquidity / Cost to Exit

Recent Portfolio Themes


Source: CQS. These potential strategies are for illustrative purposes only and not indicative of future focus. There is no guarantee that the Fund will invest in these strategies or do so in the manner set forth in this presentation

Theme Drivers Potential StrategiesCredit / Equity Cycle: Transfer of value from debt holders to equity holders

Slowing growthMargins under pressureLonger term share price underperformance puts management under pressure to pursue value enhancing programmes for equity holders, e.g., M&A, share buy-backs, re-leveraging

Short exposure to:– Food & Beverage– Pharmaceuticals– Health Care

Impact of austerity programmes in peripheral European corporates

Reduced consumer discretionary spendingHigh debt levelsPotential for one-off or increased taxes and regulatory changes

Short exposure to:– Telecommunications– Utilities

Idiosyncratic opportunities in financials

Attractive yieldsStrong coveragePotential for positive event risk in selected cases

Long exposure to:– Insurance Subordinated Debt

Cyclicals highly geared into GDP growth

Reduced consumer demandChallenging operating environmentHigh debt levels

Specific short positions in :– Paper– Chemicals – Airlines– Advertising

We believe the CLS fund is positioned to benefit from an environment where credit spreads widen. The fund is managed to achieve a low exposure to movements in interest and exchange rates

CQS Credit Long Short Fund Scenario Analysis1


1 As at 30 September 2011. 2 Including relevant credit and interest rate hedges. Downside credit, rates and foreign exchange estimations reflect conservative modeling assumptions, but do not reflect worst case scenarios. Estimates are based on the market conditions at the time of modeling are therefore, subject to change

Strategy Type Credit -20%

Credit+20%

Rates -100bp

Rates+100bp

FX -10%

FX+10%

Corporate Debt Strategies2 0.97% (0.79%) 0.04% (0.05%)

CDS Strategies (2.23%) 2.18% 0.05% (0.04%)

Total (%NAV) (1.26%) 1.39% 0.08% (0.09%) (0.02%) 0.02%

Sector Rating* Country

Snapshot of Exposure: Schroder GAIA CQS Credit1


1Analysis expressed as a percentage of Gross Bond Equivalent Exposure.Source: Schroders as at 30 September 2011

-30 -20 -10 0 10 20

Government

TelecommunicationServices

Financials

Materials

InformationTechnology

ConsumerDiscretionary

Industrials

Health Care

Consumer Staples

-35 -25 -15 -5 5 15 25

AAA

AA

A

BBB

BB

B

CCC

NR

-60 -50 -40 -30 -20 -10 0 10

UnitedKingdom

Germany

Luxembourg

Netherlands

Ireland

Italy

France

UnitedStates

LongShort

Appendix

Offering access to quality hedge fund strategies in a regulated liquid format

Schroder GAIA


Schroder GAIASICAV

(UCITS)

Schroder GAIA Sloane Robinson Emerging Markets


Schroder GAIA QEP Global

Absolute

Schroders (Aug 10)

Sloane Robinson LLP (Jun 10)

CQS Asset Management

Limited (Apr 11)

Regulated by the CSSF Luxembourg

Schroder GAIA Egerton European

Equity

Egerton Capital Limited (Nov 09)

Schroder Investment Management (Luxembourg) S.A.

Third Party Managers Schroder Managed

Additional Schroder Managers

Schroders

Schroder GAIAGeneral Flow Chart


Schroder Investment Management (Luxembourg) S.A. (SIMLUX) Schroders NewFinance (NFC)Brown Brothers Harriman (BBH)

SIMLUX

ManagementCompanyServices

Schroder GAIA(Global AlternativeInvestor Access)LUX. SICAVUCITS

DomiciliaryAgent

PrincipalPayingAgent

GlobalDistributor

Transfer Agent

DailyCompliancePost-trade

& RegulatoryRisk

monitoring

NAV validation by SIMLUX before official release

EgertonEuropean

Equity

ManagerEgerton

Opus MultiStrategy

ManagerNFC

SloaneRobinsonEmergingMarkets

ManagerSloane

RobinsonBBH

Custody

BBHFund

Accounting

Pricingsources

Complianceengine

Riskengine

RBS

BBHWorldview

Counterparties

Transaction

Transaction

Transaction

Transaction

Transaction

Transaction

ComplianceFeed

Risk Feed

Compliance & Risks Reports

Sub proceeds(Appro)

Red proceeds(Expro)

Tradeconfirmation NAV &

portfolioreporting

Pre-trade compliance by each manager

NAV & portfolio feed

Sub / Redinfo

NFCInvestment

Advisor(selection ofthird partyinvestmentmanagers)

NFCRisk Monitoring

Risk Reports

CQS Credit

Manager CQS

UCITS Hedge Fund vs Offshore Hedge Fund

UCITS hedge fund Offshore hedge fund

Prime broker Requirement to have an independent custodian so typical prime broker arrangement is not possible

Prime broker

Eligible Assets Prescribed includes by of way of example cash, transferable securities, derivatives, funds

Flexible

Commodities, Property

Excludes commodity futures, limited to equities, ETFs, and financial indices

Can also invest in derivatives on individual commodities, properties, and physical property / commodities

Borrowing Limited to 10% on a temporary basis Can borrow e.g. up to 200% on a permanent basis

Leverage 200% global exposure or prescribed VaR limit Flexible

Short sales Short sales not permitted, can only seek short exposure via derivatives

Short sales permitted

Diversification 5/ 10/ 40 Flexible

Minimum dealing / valuation frequency

Twice monthly (typically weekly) Annually although most monthly or quarterly


Schroders and CQS have expressed their own views and opinions in this presentation and these may change. Any views and opinions of CQS may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.Important Information: This presentation does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder GAIA (the “Company”). Nothing in this presentation 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 prospectus together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copied 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 asrise and investors may not get back the amount originally invested.Third party data is owned or licensed by the data provider and may not be reproduced or extracted and used for any other purposewithout the data provider's consent. Third party data is provided without any warranties of any kind. The data provider and issuer of the document shall have no liability in connection with the third party data. The Prospectus and/or www.schroders.lu contains additional disclaimers which apply to the third party data. Schroders has expressed its own views and opinions in this presentation and these may change.

This presentation is issued by Schroder Investment Management Limited, 31, Gresham Street, EC2V 7QA, who is authorised and regulated by the Financial Services Authority. Registration No 1893220, England. For your security, all telephone calls are recorded.

Important Information


938451 1 schroder gaia platform_cqs november berlin 2011 final

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