Matt hudson uk-equity-income_citywire presentation_uk05785

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Cazenove UK Equity Income Fund

October 2013

Matthew Hudson Fund Manager

** Remove from final presentation **

Pragmatic income approach

1st quartile over 1, 3 and 5 years

Fund size: £480 million

Fund yield: 3.6%

Market yield and dividend

growth

Dividend growth

Slowdown Recession Recovery Expansion

High yield Low/no yield, high capital

growth

Stock:

Delivers:

Cycle:

Business cycle philosophy

Pragmatic process: income and capital

Cazenove UK Equity Income Fund

Summary

1

Source: FE Analytics, Schroders, bid to bid with net income reinvested, in GBP, B income class, as at 31 August 2013. For illustrative purposes only

Premium Real

Yields

Capital Returns

Superior Dividend Growth

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2013 2012 2011 2010 2009

Cazenove UK

Equity Income

Fund (%)

24.0 20.4 1.0 17.3 20.8

IMA UK Equity

Income sector

(%)

19.8 13.6 -3.2 14.6 23.7

Quartile

ranking 1 1 1 1 3

Five year cumulative Discrete annualised calendar

Cazenove UK Equity Income Fund

Performance summary

2

Source: FE Analytics, bid to bid with net income reinvested, in GBP, B income class, as at 31 August 2013

Top decile over 3 and 5 years

Only fund in the sector to be 1st quartile in 2010, 2011 and 2012

-0.4

-0.2

0

0.2

0.4

0.6

0.8

Cazenove UK Equity Income Fund

IMA UK Equity Income

FTSE All Share index

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5 years cumulative income returns

Cazenove UK Equity Income Fund 25.5%

FTSE All-Share index 20.0%

The power of compounding?

Income reinvested outperforms*

Source:, bid to bid with net income reinvested, in GBP, B income share class. (LHS) FE Analytics, since benchmark launch; (RHS) Morningstar, B income share

class, five years to 31 August 2013

?

3

0

200

400

600

800

1,000

1,200

1,400

1,600

01-D

ec-8

5

01-D

ec-8

7

01-D

ec-8

9

01-D

ec-9

1

01-D

ec-9

3

01-D

ec-9

5

01-D

ec-9

7

01-D

ec-9

9

01-D

ec-0

1

01-D

ec-0

3

01-D

ec-0

5

01-D

ec-0

7

01-D

ec-0

9

01-D

ec-1

1

FTSE All Share Price Index

FTSE All Share Total Return Index

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Annualised returns

Appreciating capital Capital returns are the driver of total returns

4

Source: Lipper, B (Inc) share class, net income reinvested 31 December 2005 to 28 February 2013

4.49

5.96

7.80

1.73 2.29

3.16

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

IMA UK Equity Income FTSE All-Share Cazenove UK Equity Income B Inc

Total Return % (Annualised) Capital Return % (Annualised)

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Cazenove UK Equity Income Fund relative to IMA UK Equity Income (%)

Cazenove UK Equity Income Fund

5

Performance analysis

Source: Lipper 30 June 2005 to 31 December 2012

-90

-70

-50

-30

-10

10

30

50

70

90

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

Ju

n-0

5

Oct-

05

Feb-0

6

Ju

n-0

6

Oct-

06

Feb-0

7

Ju

n-0

7

Oct-

07

Feb-0

8

Ju

n-0

8

Oct-

08

Feb-0

9

Ju

n-0

9

Oct-

09

Feb-1

0

Ju

n-1

0

Oct-

10

Feb-1

1

Ju

n-1

1

Oct-

11

Feb-1

2

Ju

n-1

2

Oct-

12

Cumulative Fund Performance

Relative Performance Cumulative fund performance

“Bear” “Bull”

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Cazenove UK Equity Income Fund Risk analysis and returns against the UK Equity Income sector

6

Source: Cazenove Capital. Analysis shown for three years to 31 December 2012

4

6

8

10

12

14

Total return (% p.a.)

0.60

0.70

0.80

0.90

1.00

1.10

Beta

9

11

13

15

Volatility (% p.a.)

0.2

0.4

0.6

0.8

1.0

Sharpe ratio

3.00

5.00

7.00

Tracking error (% p.a.)

-2.0

0.0

2.0

4.0

6.0

Jensen's alpha (% p.a.)

-4.0

-1.0

2.0

5.0

8.0

Total relative return (% p.a.)

-0.6

-0.1

0.4

0.9

1.4

Information ratio

10th – 25th percentile

25th – 50th percentile

50th – 75th percentile

90th – 75th percentile

Investment philosophy

and process

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Global industrial production – % change year

on year

Business cycle in theory Business cycle in reality

Business cycle investing overview Back to reality

Source: Morgan Stanley, MSCI, Datastream, as at 31 December 2012

Slowdown

Recession Recovery

Expansion Expansion Slowdown

8

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Income strategy Through the cycle

Source: Cazenove Capital Management. The securities shown are for illustrative purposes only and not a recommendation to buy or sell shares

9

Market yield and dividend growth

Dividend growth

Slowdown Recession Recovery Expansion

High yield Low/no yield, high capital

growth

Stock:

Delivers:

Cycle:

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Income portfolio construction Driving returns

Pragmatic income investor

Premium yield and dividend growth

Focused portfolio

Benchmark aware

Source: Cazenove Capital, as at 30 June 2013

10

Premium Real

Yields

Capital Returns

Superior Dividend Growth

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Cazenove UK Equity Income Fund Portfolio through the cycle

Source: Cazenove Capital Management, as at 31 May 2013. *Cash 4.7% at year end 2008

0

10

20

30

40

Ja

n-0

8

Ju

l-0

8

Ja

n-0

9

Ju

l-0

9

Ja

n-1

0

Ju

l-1

0

Ja

n-1

1

Ju

l-1

1

Ja

n-1

2

Ju

l-1

2

Business cycle (+ve) active weights

Commodity Cyclical Consumer CyclicalFinancial GrowthGrowth Defensive Industrial CyclicalValue Defensive

-40

-30

-20

-10

0

Ja

n-0

8

Ju

l-0

8

Ja

n-0

9

Ju

l-0

9

Ja

n-1

0

Ju

l-1

0

Ja

n-1

1

Ju

l-1

1

Ja

n-1

2

Ju

l-1

2

Business cycle (-ve) active weights

Commodity Cyclical Consumer Cyclical

Financial Growth

Growth Defensive Industrial Cyclical

Value Defensive

December

2005

December

2006

December

2007

December

2008*

December

2009

December

2010

December

2011

December

2012

Premium real yields 44 49 68 86 60 54 55 60

Superior dividend growth 37 30 21 6 10 20 30 24

Capital returns 19 21 11 8 30 26 15 16

No of stocks 69 78 58 51 68 57 52 55

11

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Income screening – yield, growth + quality

Company meetings and

fundamental analysis

Detailed stock history

(consistency, cover, quality etc.)

Monthly fund dividend forecasts

FTSE 350: Income characteristics

Income portfolio construction

12

Stock selection

Source: Cazenove Capital, Factset (FTSE 350 and ex IT)

Superior Dividend Growth

Capital Returns

Premium Real Yields

Yield 5.4% DPS Growth 6.5% P/E 10.2

Yield 2.9% DPS Growth 12.0% P/E 13.6

Yield 2.3% DPS Growth 13% P/E 13.5

Outlook and current positioning

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Market review Global cycles?

14

Source: Markit and Thomson Datastream, to 31 August 2013

UK Markit Manufacturing PMI US ISM Manufacturing PMI

Germany Markit Manufacturing PMI Japan Markit Manufacturing PMI

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US HOUSING STARTS & RESIDENTIAL FIXED INVESTMENT % GDP(G00I)

73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 1113

400

500

1000

1500

2000

2500

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

US NEW PRIVATE HOUSING UNITS STARTED (AR) VOLA

Resdntial GDFCF as % GDP(R.H.SCALE)

Source: DATASTREAM

GARP becomes GAAP

Growth re-rated in a low growth world

Smaller is bigger

Mid and small caps out performance a global phenomenon

Greenbucks

USD weakness reversing as US economy recovers

‘Risk On Risk Off’

European sovereign spreads mattered in 2010 , 2011,

2012….but 2013?

Growth at any price (GAAP)

Market review

15

Mapping the landscape

Source: ASR/Morgan Stanley

US economic strength

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Investors mistaking ‘low volatility’ for growth

‘Secure’ dividend stocks squeezed upwards

Value traps?

Trend P/E relative, 1990–2013

Income investing

16

Yield at a premium

Source: Mirabaud, as at 31 May 2013. The securities shown are for illustrative purposes only and not a recommendation to buy or sell shares

20

40

60

80

100

120

140

160

180

Ja

n-9

0

Ma

y-9

1

Sep

-92

Ja

n-9

4

Ma

y-9

5

Sep

-96

Ja

n-9

8

Ma

y-9

9

Sep

-00

Ja

n-0

2

Ma

y-0

3

Sep

-04

Ja

n-0

6

Ma

y-0

7

Sep

-08

Ja

n-1

0

Ma

y-1

1

Sep

-12

Trend P/E relative Average + 1 SD - 1 SD

Trend historic EPS growth rate = 0.0%

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‘High volatility’ stock de-rated is the opposite

side of the trade

Value opportunity

Trend P/E relative, 1990–2012

Income investing

17

Valu’ in yield

Source: Mirabaud, as at 31 May 2013. The securities shown are for illustrative purposes only and not a recommendation to buy or sell shares

0

20

40

60

80

100

120

140

Ja

n-9

0

Ju

n-9

1

No

v-9

2

Apr-

94

Sep

-95

Feb-9

7

Ju

l-9

8

De

c-9

9

Ma

y-0

1

Oct-

02

Ma

r-04

Aug

-05

Ja

n-0

7

Ju

n-0

8

No

v-0

9

Apr-

11

Sep

-12

Trend P/E relative Average + 1 SD - 1 SD

Trend historic EPS growth rate = 3.9%

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Market yield attractive after “yield rise” with

dividend growth a positive

At stock level, dividend yield needs to be

combined with attractive valuation (FCF, P/E etc)

Higher volatility stocks (e.g. cyclicals) are

attractive investments at the right point in

the cycle

Dividend growth at mid-cycle levels but special

return enhancements

Starting UK yields and 10 year returns

After the fall

18

Opportunities in UK equity income

Source: Citigroup, as at 5 July 2013

R² = 0.7

-5

0

5

10

15

20

25

30

2 3 4 5 6 7 8

3.6% now

-15

-10

-5

0

5

10

15

May-08 May-09 May-10 May-11 May-12 May-13

% of Estimates Upgraded Less % Downgraded Per Month

3m Rolling Average

10-year total return CAGR

Dividend yield

UK dividend revisions

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Dividend recovery underway

UK dividend growth 2012/13 circa 6–7%

Dividend growth stocks re-rating

Special dividend enhancements

UK dividend growth forecasts

After the fall

19

Dividend recoveries

Source: (chart) Citi, as at 15 August 2013

(table) MSDW/Datastream, FTSE, Global Financial Data, Morgan Stanley Research, Shore Capital, as at 31 December 2012

The securities shown are for illustrative purposes only and not a recommendation to buy or sell shares

Year Fund Dividend distributions (net)

2007 4.39p

2008 5.12p

2009 4.84p

2010 4.55p

2011 4.86p

2012 5.12p

4

8

12

16

20

Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13

2011 Dividend growth 2012 Dividend growth

2013 Dividend growth 2014 Dividend growth

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Portfolio strategy Active positions

Source: Schroders, as at 18 September 2013. The securities shown are for illustrative purposes and not a recommendation to buy or sell shares

Market cap exposures (%) Index Portfolio

FTSE 100 83.1% 62.6%

FTSE 250 14.3% 27.2%

FTSE Small Cap 2.5% 3.0%

AIM - -

Ex Index - 3.4%

Cash - 4.2%

Portfolio risk

Predicted tracking error p.a. 3.1%

Beta 0.95

# of stocks 58

Underweight Market Overweight

-3.85% Royal Dutch Shell A

-3.63% HSBC

-2.73% Royal Dutch Shell

-2.53% Diageo

-2.00% BG Group

-1.74% Vodafone

-1.50% Unilever

-1.49% SAB Miller

-1.55% Lloyds

-1.98% BHP Billiton

Reed Elsevier +1.87%

BT Group +1.71%

Jupiter Fund Management +1.69%

DS Smith +1.60%

Aviva +1.57%

Debenhams +1.57%

Legal and General +1.55%

Resolution +1.54%

Beazley +1.52%

Kier +1.51%

20

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Portfolio strategy Business cycle style tilts

Source: Schroders, as at 18 September 2013. The securities shown are for illustrative purposes only and not a recommendation to buy or sell shares

Style grouping

Change over 12 months

vs. FTSE

All-share

Fund % Index % Key stocks

Commodity cyclicals -20.5% 21.5 Rio Tinto

Consumer cyclicals +35.0% 6.4 Carphone Warehouse

Industrial cyclicals +10.8% 5.8 Melrose

Financials +9.7% 19.9 Intermediate Capital

Small/Unallocated/Cash = 4.5 Cineworld

Growth +16.0% 4.7 Sage

Growth defensives +5.3% 9.8 Babcock

Value defensives +0.9% 27.4 Reed

1.0

11.9

9.1

22.1

13.6

27.6

Overweight Underweight

7.3

7.3

Neutral or N/A

21

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Developed markets: US growth “robust”,

Europe weak but improving and Abenomics

starting to work

Emerging markets: China activity stabilising,

FX pressures and weaker growth outside China

UK earnings base stabilising – cyclicals should

outperform defensives

Portfolio positive skew towards consumer

cyclicals and financials over growth defensives.

Moderating underweight in commodity cyclicals

Earnings and leading indicators, 1988-2013

Outlook

22

Source: Citi, Thomson Reuters Datastream, as at 5 July 2013

The securities shown are for illustrative purposes only and not a recommendation to buy or sell shares

UK trend earnings growth, 1971–2012

-50

-30

-10

10

30

30

35

40

45

50

55

60

65

88 90 92 94 96 98 00 02 04 06 08 10 12

US ISM Index - 6mth Lead (LHS)

UK PMI (LHS)

Global PMI (LHS)

12m Fwd Earn - YoY Growth % (RHS)

0

100

200

300

400

Jan-7

1

Feb

-74

Ma

r-7

7

Apr-

80

Ma

y-8

3

Jun-8

6

Jul-8

9

Aug-9

2

Sep-9

5

Oct-

98

No

v-0

1

De

c-0

4

Jan-0

8

Feb

-11

UK EPS Trend EPS 7% p.a., base April 1978

Appendices

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Member of the Cazenove Capital Pan-European

equity team at Schroders, with responsibility for

equity income portfolios

Manages over £850m in UK equity

income strategies

– Cazenove UK Equity Income Fund

– Equity Income Trust for Charities, a UK

authorised Common Investment Fund

Responsible for the following UK sectors:

– Banks, construction and materials, gas water

and multi utilities, mining and electricity

Joined Cazenove Capital in 2001 from AIB Govett

Investment Management. Prior to this he was a

chartered accountant at PriceWaterhouseCoopers.

Graduated from Cambridge University with a

degree in History. Matthew has 14 years of

investment experience

Matt Hudson Fund manager

Source: Citywire, as at 30 June 2013

24

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Julie Dean, Head of Business Cycle Team

Cazenove Capital Pan-European equity team At Schroders

Source: Schroders, as at 6 July 2013

UK

Steve Cordell UK Absolute

Paul Marriage UK Smaller Companies

John Warren UK Smaller Companies

Matthew Hudson Equity Income

Julie Dean UK Equity

David Docherty UK Equity

Michael Zorko UK Equity

Wade Pollard UK Equity

Charlotte Morrish UK Equity

Europe

Steve Cordell Europe ex UK

Steve Cordell Pan Europe

Lionel Rayon Pan Europe, High Alpha

Kuldip Shergill Pan Europe, High Alpha

James Sym Europe ex UK

25

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The fund aims to outperform by 1.5% over rolling 3 year periods and achieve

a minimum yield of 110% of the benchmark yield*

Pragmatic income

Income and capital returns

Business cycle approach

Focused portfolio

Cazenove UK Equity Income Fund

26

Overview

Source: Schroders, as at 31 August 2013. Ratings from Citywire, Rayner Spencer Mills, Morningstar and Trustnet Crowns, as at 30 September 2013 *Internal

performance objective

Benchmark FTSE All-Share index

Number of stocks Current 58, minimum 35

Portfolio restrictions

(relative to FTAS)

Stock +5%/No minimum

Sector +10/No minimum

50% max weight in mid-cap,10% in

small/AIM/other

(+ minimum 80% in UK Equities)

Tracking risk 3.1%

Launch date 6 May 2005

Fund size £507m

Structure UK Domiciled, UCITS III

Base currency £ (Sterling)

Historic yield 3.6%

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Year Dividend distributions

(net)

2007 4.39p

2008 5.12p

2009 4.84p

2010 4.55p

2011 4.86p

2012 5.12p

Fund income return

5 years cumulative

FTSE All Share return

5 years cumulative

25.6% 20.3%

Cazenove UK Equity Income Fund Dividends and income returns

Source: Cazenove Capital Management. Five years ended 31 December 2011 (B Income class). Note: 2013 interim dividend growth +15% year on year

Share Class Bloomberg

Ticker Lipper Codes

A Inc CAZUEAI LN 65000477

B Inc CAZUEBI LN 65000481

X Inc CAZUKEX LN 65000480

X Acc CAZUKXA LN 68150522

27

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Cazenove Capital UK equities Research responsibilities

Source: Schroders, as at 31 August 2013

Steve Cordell

Technology Hardware

Software

Julie Dean

General Financial

Healthcare Equipment

Life Insurance

Non-Life Insurance

Pharmaceuticals and Biotechnology

David Docherty

Aerospace and Defence

Automobile and Parts

Electronic and Electrical Equipment

Forestry and Paper

General Industrials

Industrial Engineering

Oil and Gas Producers

Oil Equipment and Services

John Warren

Support Services – ex FTSE 100

Travel and Leisure

Matthew Hudson

Banks

Construction and Materials

Electricity

Gas Water and Multi Utilities

Mining and Industrial Metals

Paul Marriage

Smaller Companies

Michael Zorko

Telecoms

Chemicals

Charlotte Morrish

Beverages

Food and Drug Retailers

Food Producers

General Retailers

Household Goods – Personal

Media

Personal Goods

Travel and Leisure

Wade Pollard

Household Goods – Housebuilders

Industrial Transportation

Real Estate

Support Services – FTSE 100

Tobacco

28

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Earnings downgraded, political

interventions…

…but valuations supportive

Business cycles in action Conflicting emotions

Source: Mirabaud, as at 11 April 2013

2

6

10

14

18

22

26

30

Ja

n-7

1

Ma

y-7

4

Sep

-77

Ja

n-8

1

Ma

y-8

4

Sep

-87

Ja

n-9

1

Ma

y-9

4

Sep

-97

Ja

n-0

1

Ma

y-0

4

Sep

-07

Ja

n-1

1

Trend PE Median + 1 SD -1 SD

29

UK market price earnings multiples based on trend

earnings growth

UK: Trend P/E, 1971–2012

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US economic surprise indicator UK defensives percentages PER premium

vs. cyclicals

US optimistic… …but market focused on European woes

Business cycles in action

30

‘Added cyclicals’ in Q3 2011

Source: Cazenove Capital, Datastream, BAML, as at end of 2012

** Remove from final presentation **

Commodity cyclicals

Consumer cyclicals

Industrial cyclicals

Financials

Growth

Growth Defensives Value Defensives

-30

-20

-10

0

10

20

30

40

50

Style group performance pre- and post-LTRO announcement

Business cycles in action ‘Flip flop’ in Q4 2011

Source: Cazenove Capital Management, as at 31 May 2013

‘Downtime’ – style groupings performance (31 December 2010 to 4 October 2011) ‘LTRO Bounce’ – style groupings performance (4 October 2011 – to 20 March 2012)

31

Absolute Returns

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Business cycle investing Market analysis

Source: Cazenove Capital Management

Pragmatic approach combining top-down macro view with earnings based security selection

Avoid permanent style/size bias

Demand for products and services changes throughout the business cycle

Operational gearing of companies impacts profitability of companies

Sector market divides are not homogenous. They do not necessarily help us determine the behaviour ~ of these stocks within the cycle

Define the beta of stocks and allocate them to seven style groupings:

Commodity cyclicals Growth Financials Growth defensives

Consumer cyclicals Value defensives

Industrial cyclicals

HIGH BETA LOW BETA

32

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Seven style groupings

Commodity cyclicals

Stocks whose revenues are linked either directly or indirectly to a particular commodity product such as oil, steel, gas, mining, bulk

chemicals e.g. BP, Rio Tinto

Consumer cyclicals

Cyclical stocks which rely on consumer spending for their revenues e.g. retailers, automotives, house builders, leisure, general retail

e.g. Marks & Spencer, easyJet

Industrial cyclicals

Stocks which manufacture capital goods or which have revenues linked to industrial production e.g. engineering, aerospace, construction

e.g. GKN, Cookson

Growth

Stocks which grow revenues well in excess of GDP with a high degree of uncertainty or volatility e.g. luxury goods, medical technology,

IT e.g. Smith and Nephew, ARM Holdings

Financials/Interest rate sensitive

Stocks whose business depends on interest rate spreads, financial markets and asset valuations e.g. banks, insurers, real estate

e.g. Barclays, Land Securities

Growth defensives

Stocks which grow revenues in excess of GDP with a low volatility and high visibility e.g. support services, food retailers e.g. Pearson,

Compass Group

Value defensives

Stocks which grow revenues at or below GDP with low volatility and high visibility e.g. telecommunications, pharmaceuticals, utilities,

food producers, beverages, tobacco, e.g. GlaxoSmithKline, Vodafone

Source: Cazenove Capital. The securities and sectors shown are for illustrative purposes and not a recommendation to buy or sell shares

33

** Remove from final presentation **

Business cycle investing Horses for courses

34

Source: Thomson Datastream, as at 31 August 2013. The securities shown are for illustrative purposes and not a recommendation to buy or sell shares

Performance relative to FTSE All Share

Stock Sector Style 31 Nov 1999 –

12 March 2003

12 March 2003 –

15 June 2007

15 June 2007 –

3 March 2009

3-Mar-2009 –

31-Aug-2013

Morgan Adv. Mats. Electronic and electrical Cyclical -74% +272% -42% +82%

Bodycote Industrial engineering Cyclical -55% +114% -26% +184%

Senior Aerospace and defense Cyclical -40% +100% -48% +482%

Diageo Beverages Defensive +147% -17% +40% +32%

GlaxoSmithKline Pharmaceuticals Defensive +16% -39% +49% -15%

Reed Elsevier Media Defensive +72% -23% +43% -16%

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FILTRONA

FROM 31/5/05 TO 9/2/12 WEEKLY

2005 2006 2007 2008 2009 2010 2011 2012

100

150

200

250

300

350

400

450

HIGH 397.30 10/ 1/12 LOW 110.25 23/ 6/09 LAST 380.30 Source: Thomson Reuters Datastream

A value trap

A growth stock

Recovery to growth

Bought

Sold

Franchise

Income

Optionality

Stock selection

35

Filtrona

Source: Thomson Datastream, 20 January 2005 to 9 February 2012 weekly. The securities shown are for illustrative purposes only and not a recommendation to buy

or sell shares

Filtrona

From 31 May 2005 to 9 February 20012 Weekly

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For professional advisers only. This material is not suitable for retail clients.

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down

as well as up and investors may not get back the amount originally invested. Schroders has expressed its own views and these may change.

The data contained in this document has been sourced by Schroders and should be independently verified before further publication or use. The

forecasts included in this presentation should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are

based on our own assumptions which may change. We accept no responsibility for any errors of fact or opinion and assume no obligation to provide

you with any changes to our assumptions or forecasts. Forecasts and assumptions may be affected by external economic or other factors.

The fund primarily invests in equities and as such tends to be more volatile than a fund investing in bonds, but may also offer greater potential for

growth. The value of the underlying investments in equity funds may fluctuate quite dramatically in response to the activities and results of individual

companies, as well as in connection with general market and economic conditions. The levels and bases of tax assumptions may change. Please

refer to the Prospectus and Key Investor Information document for further details.

Telephone calls may be recorded for training and monitoring purposes.

Forecast risk warning: The forecasts included in this presentation should not be relied upon, are not guaranteed and are provided only as at the date

of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any errors of fact or opinion and

assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts and assumptions may be affected by external

economic or other factors.

FTSE International Limited (“FTSE”). “FTSE” is a trade mark of the London Stock Exchange Group of companies and is used by FTSE International

Limited under licence. All rights in the FTSE indices vest in FTSE and/or its licensors. Neither FTSE not its licensors accept any liability for any errors

or omissions in the FTSE indices or underlying data. No further distribution of FTSE data is permitted without FTSE’s express written consent.

Source for ratings: Citywire, Rayner Spencer Mills, Morningstar and Trustnet Crowns, as at 30 September 2013.

Issued in September 2013 by Schroder Investments Limited, 31 Gresham Street, London, EC2V 7QA. Registered no. 2015527 England.

Authorised and regulated by the Financial Conduct Authority. UK05785

Important information

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