Schroder ISF* Global Multi Credit November 2016 | For professional investors and advisers only *Schroder International Selection Fund is referred to as Schroder ISF throughout this presentation November 2016 Patrick Vogel | Head of European Credit
Schroder ISF*
Global Multi Credit
November 2016 | For professional investors and advisers only *Schroder International Selection Fund is referred to as Schroder ISF throughout this presentation
November 2016
Patrick Vogel | Head of European Credit
Make your capital work harder in credit High return potential from allocation across a broad credit universe
1
Source: Schroders, Barclays Capital, December 2015
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
EM
24%
EM
14%
US
Corp
11%
US
Corp
11%
US HY
29%
PE HY
14%
EM
10%
US HY
12%
EM
13%
ABS
6%
PE HY
65%
US HY
15%
US
Corp
8%
PE HY
27%
PE HY
10%
GBP
Corp
13%
PE HY
2%
PE HY
15%
ABS
11%
ABS
8%
EM
11%
EM
27%
EM
12%
GBP
Corp
9%
PE HY
11%
US HY
13%
Covrd
3%
US HY
58%
EM
12%
GBP
Corp
7%
EM
18%
US HY
7%
EUR
Corp
9%
ABS
2%
US HY
2%
GBP
Corp
9%
GBP
Corp
7%
EUR
Corp
9%
PE HY
26%
US HY
11%
PE HY
6%
EM
9%
ABS
12%
EUR
Corp
-3%
EM
35%
PE HY
11%
EM
6%
GBP
Corp
16%
Covrd
3%
US
Corp
8%
EM
1%
ABS
2%
US
Corp
9%
EUR
Corp
7%
ABS
9%
US
Corp
8%
EUR
Corp
8%
EUR
Corp
4%
ABS
5%
US
Corp
9%
US
Corp
-4%
US
Corp
19%
US
Corp
9%
ABS
6%
US HY
16%
EUR
Corp
2%
Covrd
6%
GBP
Corp
1%
EUR
Corp
1%
Covrd
6%
Covrd
6%
GBP
Corp
9%
EUR
Corp
7%
GBP
Corp
7%
Covrd
3%
US
Corp
4%
PE HY
9%
GBP
Corp
-9%
GBP
Corp
16%
GBP
Corp
9%
US HY
5%
EUR
Corp
14%
GBP
Corp
2%
ABS
6%
Covrd
1%
Covrd
0%
EUR
Corp
6%
US HY
4%
Covrd
8%
GBP
Corp
7%
Covrd
6%
ABS
3%
GBP
Corp
1%
Covrd
3%
EM
-15%
EUR
Corp
16%
ABS
6%
Covrd
4%
Covrd
11%
ABS
-1%
PE HY
6%
EUR
Corp
-1%
GBP
Corp
-1%
US HY
-7%
EM
-2%
US HY
-3%
Covrd
5%
US
Corp
6%
US HY
2%
Covrd
1%
GBP
Corp
1%
US HY
-26%
Covrd
9%
EUR
Corp
5%
EUR
Corp
2%
US
Corp
10%
US
Corp
-2%
EM
5%
US
Corp
-1%
US
Corp
-2%
PE HY
-16%
PE HY
-14%
PE HY
-9%
ABS
3%
ABS
5%
US
Corp
2%
EUR
Corp
1%
EUR
Corp
1%
PE HY
-32%
ABS
7%
Covrd
4%
PE HY
-3%
ABS
3%
EM
-3%
US HY
2%
US HY
-5%
Best
Worst
An unconstrained credit strategy, aiming for a high risk-adjusted total return
The Global Multi Credit strategy A Schroders perspective
2
Source: Schroders
A truly active strategy biased
towards more liquid credit
State of the art technique to optimise
top-down global allocation
A well established global credit
platform
Schroders innovative themes-based
credit investment process
Schroders: global credit capabilities Local expertise delivered globally
3
Source: Schroders, as at October 2016
Amsterdam: Loans
London: DM & EM Credit, Sovereigns
Paris: Infrastructure debt
Zurich: Convertibles, ILS
New York: DM & EM Credit, ABS,
Sovereigns
Philadelphia: Municipals
Buenos Aires: Credit, Sovereign
Sâo Paulo: Credit, Sovereign
Hong Kong: Credit, Sovereigns
Jakarta: Credit, Sovereign
Singapore: Credit, Sovereigns
Sydney: Credit, Sovereigns
Taipei: Credit, Sovereign
Schroders investment offices with credit expertise
Global credit scorecards Regional credit views
4
Note: For illustration purposes only
Top-down asset allocation and optimisation A multi-stage allocation process
5
Source: Schroders
Team views:
monthly scorecard
Black-
Litterman
model
&
optimiser
Objectives
Constraints
Investment team
validation
Glo
bal a
lloca
tion
Risk model
The credit team’s views expressed in a diversified way Team views integrated with Black Litterman model
6
Source: Schroders. For illustration purposes only
A credit allocation
committee collectively
making decisions on the
overall asset allocation
and model calibration
Utilising scorecards from
all asset classes
Formal discussions on a
monthly basis
Outcome: optimised
allocation across the full
portfolio
Team ensures allocation
decisions within each
sub portfolio are
appropriate at the fund
level
Risk budget is suitably
allocated
Bi-weekly discussions
Credit allocation committee
Fund risk and
construction team
Delegated sub portfolios
to regional experts
across the globe
Incorporate credit
allocation and themes
across asset classes
Sub-portfolio management
regional credit specialists
Investment strategy Global Multi Credit process summary
7
Source: Schroders
Schroders Global Multi Credit team A global strategy utilising our established global credit platform
8
Source: Schroders, as at 31 October 2016
Portfolio Management – Sub Portfolios
Pan European High
Yield
US
High Yield
Pan European
Investment Grade
US
Investment Grade Emerging Markets ABS
Michael Scott Wesley Sparks
Martha Metcalf Patrick Vogel Rick Rezek
James Barrineau
and team Chris Ames
Credit Research
EMEA Research Americas Research Asia Research
Patrick McCullagh David Knutson Raymond Chia
Over 35 Analysts Globally
Credit Allocation Committee
Senior PM
High Yield
Senior PM
Investment Grade
Lead
PM
Credit
Strategist
Quantitative
Strategists
Michael Scott Alix Stewart Patrick Vogel Rajeev Shah Szevak Nszdejan
Yow Tsu Lim
Themes-based investment process Innovative approach to credit
Themes based investment process combined with market strategy meeting. Implementing
forward looking themes within the context of current market conditions
9
Source: Schroders
Them
es
Consumer Trends Demographics
Technology
Investor Trends
Horizon
Schroder ISF
Global Multi Credit
The fund
Schroder ISF Global Multi Credit Fund profile
11
Source: Schroders as at 31 October 2016.
Schroder ISF Global Multi Credit
Type Unconstrained total return credit
Aim Outperform the reference index by 3-4% p.a. gross over a cycle
Expected risk Circa 3 – 6% volatility
Strategy Flexible credit, global universe including IG, HY, EM sovereign and credit, ABS, convertibles, munis
Reference index For reference only: Barclays Multiverse USD,EUR,GBP ex treasury, A+ to B- ($ hedged)
Fund manager Patrick Vogel and Schroders Credit Team
Vehicle Schroder ISF UCITS fund range
Liquidity Daily
Guidelines
Flexible unconstrained
ABS: max 20%
Convertibles: max 20%
Active duration: +/- 2 years
Launched June 2016
Schroder ISF Global Multi Credit Summary
12
Source: Schroders FIA. Based on un-audited data as at 31 October 2016
*Fund issuer number treats each CDS index as a single issuer and excludes the non-credit line items (futures fixed income, margin cash balance, SYN, synthetic cash fixed
income, currency). The fund is fully hedged to USD.
Strategy
AUM $196m
Effective yield 4.1%
OAS +256
Effective duration 6.0
Number of issuers* 332
Average credit rating BBB-
19.3
16.8
23.1
18.3
9.4
13.2
Duration (%MV)
0-2Y
2-4Y
4-6Y
6-8Y
8-10Y
10+Y
24.2
12.0 63.9
Hedged currency (%MV)
EUR
GBP
USD
DTS contribution
Global Multi Credit Strategy Regional allocation
13
Source: Schroders, Bank of America Merrill Lynch. Based on un-audited data as at 31 October 2016.
0
2
4
6
8
10
12
14
16
18
Nov15
Dec15
Jan16
Feb16
Mar16
Apr16
May16
Jun16
Jul16
Aug16
Sep16
Oct16
DM Europe DM North America DM Oceania
DM Asia EM Asia EM Europe
EM South America EM Africa/Midde East
MV%
0
10
20
30
40
50
60
70
80
90
100
Nov15
Dec15
Jan16
Feb16
Mar16
Apr16
May16
Jun16
Jul16
Aug16
Sep16
Oct16
DM Europe DM North America DM Oceania
DM Asia EM Asia EM Europe
EM South America EM Africa/Midde East
DTS contribution
Global Multi Credit Strategy Country allocation
14
Source: Schroders, Bank of America Merrill Lynch. Based on un-audited data as at 31 October 2016. MV chart will not add up to 100% as cash, forwards and CDS float are
excluded. Countries with <1% MV/ 0.25 DTS have been excluded.
MV%
0.0
0.4
0.8
1.2
1.6
2.0
High Low Current
0
3
6
9
12
15
High Low Current
50
40
30
20
10
0
10
8
6
4
2
0
DTS contribution
Global Multi Credit Strategy Sector allocation
15
Source: Schroders, Barclays Based on un-audited data as at 31 October 2016. Sectors based on Barclays level 3.
MV%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Non Cyclicals Cyclicals Fin Senior Fin Sub
High Low Current
5
10
15
20
25
30
35
Non Cyclicals Cyclicals Fin Senior Fin Sub
High Low Current
DTS contribution
Global Multi Credit Strategy Rating allocation
16
Source: Schroders, Bank of America Merrill Lynch. Based on un-audited data as at 31 October 2016. MV chart will not add up to 100% as cash, forwards and CDS float are
excluded. Ratings based on the average of Moodys, S&P and Fitch
0
2
4
6
8
10
12
14
16
18
20
Nov15
Dec15
Jan16
Feb16
Mar16
Apr16
May16
Jun16
Jul16
Aug16
Sep16
Oct16
DM IG DM HY EM IG EM HY NR
MV%
0
10
20
30
40
50
60
70
80
90
100
Nov15
Dec15
Jan16
Feb16
Mar16
Apr16
May16
Jun16
Jul16
Aug16
Sep16
Oct16
DM IG DMHY EM IG EM HY NR
Representative account* performance as at 31 October 2016
Source: Schroders, gross of fees at 31 October 2016. Periods of less than 1 year are not annualised. *Pooled fund launched 8 June 2016, prior to this performance from a
segregated account following the same strategy is used.
Global Multi Credit strategy
Investment objective
Guidelines
Total assets: $196 million
Achieve a total return of LIBOR +5% per annum before fees over a market cycle
Inception date: 30 November 2015
Flexible unconstrained credit strategy
Max ABS: 20%
Max Convertibles: 20%
Max VaR: 12%
17
-4
-2
0
2
4
6
8
10
Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16
Global Multi Credit EUR Hedged
%
London Credit Composite performance as at 31 October 2016
18
1 year
[Since Inception] 3 years (p.a.)
[2 years (p.a.)]
Information Ratio
(3 years) [2 years]
Peer Group
Ranking
Total Return Excess Return Total Return Excess Return **Sharpe Ratio 1y/3y [2y]
Benchmark Relative
Euro Corporate Bond 6.97 1.87 6.33 2.10 1.95 1 / 1
Euro Credit Conviction* 7.91 2.33 5.84 3.12 1.97 1 / 1
Euro High Yield 8.52 2.36 7.30 2.03 1.75 1 / 1
UK All Maturities Corporate Bond 12.15 1.65 7.46 0.59 0.77 1 / 2
UK Long Dated Corporate Bond 18.81 1.15 10.92 0.77 0.99 1 / 1
Absolute Return
Euro Credit Absolute Return* 4.14 4.36 - - - -
Strategic Credit 5.71 5.32 4.16 3.74 1.61** 2 / 1
Total Return
Monthly High Income 12.20 - 9.47 - 1.92** 1 / 1
Global Multi Credit (EUR hedged)* 7.70 - - - - -
Source: Schroders. Data as at 31 October 2016. Returns reflect performance gross of fees. Strategies are based on gross NAV pricing or internal B-one pricing.
*Inception dates: Euro Credit Conviction, January 2014; Euro Credit Absolute Return, November 2015; Global Multi Credit, November 2015.
Peer group rankings based on Morningstar peer groups.
Optimising returns through a holistic credit approach
Global Multi Credit strategy Summary
19
Source: Schroders
A truly active strategy biased
towards more liquid credit
State of the art technique to optimise
top-down global allocation
A well established global credit
platform
Schroders innovative themes-based
credit investment process
Recent questions from clients
“Following the election of Trump, how do you see US policies impacting your investment
decisions?”
“What is your current outlook and where do you see opportunities for Global Multi Credit?”
20
Source: Schroders
This presentation 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 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 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 presentation and these may change
This presentation 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, all telephone calls are recorded
Risk Considerations
Mortgage or asset-backed securities may not receive in full the amounts owed to them by underlying borrowers.
A failure of a deposit institution or an issuer of a money market instrument could create losses.
A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses.
A derivative may not perform as expected, and may create losses greater than the cost of the derivative.
Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty and operational risk.
High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk.
A rise in interest rates generally causes bond prices to fall.
The fund uses derivatives for leverage, which makes it more sensitive to certain market or interest rate movements and may cause above-average volatility and risk of loss.
In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend
redemptions of its shares.
Failures at service providers could lead to disruptions of fund operations or losses.
Important information
21
Euro Corporate Bond Composite Disclosure as at 31 December 2015
22
Definition of Firm
The Firm is defined as all accounts managed by Schroder Investment Management in the UK and
US, by wholly owned subsidiaries of Schroders PLC. Prior to 1st January 2007 SIM London &
SIM North America existed as two separate Firms which were compliant & verified as separate
entities until 31st December 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 1st January
2007 represent those of the legacy firm which managed the product. Prior to 1st January 2011 the
SPrIM (Schroder Property Investment Management) Firm existed separate to the Schroder
Investment Management UK and US Firm, from 1st January 2011 these Firms have been
combined into a single firm. 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 1st January 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 Definition
The Euro Corporate Bond Composite (the "Composite") is comprised of all Schroder Investment
Management (UK & US), fully discretionary accounts which seek to achieve returns above the
Merrill Lynch EMU Corporate Index ER00 (GDR) by investing in bonds and other fixed and
floating rate securities denominated in Euro issued by governments, government agencies,
supranational and corporate issuers. A minimum of 80% of net assets will be held in non-
sovereign securities. In February 2007 the Composite changed name from the Schroder Lux Euro
Corporate Composite to Euro Corporate Bond Composite. This change does not affect the
Composite history, investment decisions or strategy used. Derivatives may be used to achieve the
investment objective and to reduce risk or manage the fund more efficiently. The fund may use
leverage and take short positions.
Composite Construction
New accounts are included from the beginning of the first 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 EURO
Composite Inception Date: 30/06/2000
Composite Creation Date: 04/04/2002
Calculation Methodology
The portfolio returns are time-weighted rates of return that are adjusted for cash flows. 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
recognised net of irrecoverable withholding tax. Since January 1999 dividends have been
recognised as of the ex-dividend date having previously been recognised on a cash basis.
Performance results are presented before the deduction of management fees and custodian fees
but after trading expenses.
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.
Fee Schedule
The fee scale applied to the composite is 0.45% p.a.
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 Verification
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
verified for the periods 1st January 1996 to 31st December 2013. The verification report(s) are
available upon request. Verification assesses whether (1) the firm has complied with all the
composite construction requirements of the GIPS standards on a firm-wide basis, and (2) the
firm's policies and procedures are designed to calculate and present performance in compliance
with the GIPS standards. Verification does not ensure the accuracy of any specific composite
presentation.
Definition of Firm
The Firm is defined as all accounts managed by Schroder Investment Management in the UK and
US, by wholly owned subsidiaries of Schroders PLC. Prior to 1st January 2007 SIM London &
SIM North America existed as two separate Firms which were compliant & verified as separate
entities until 31st December 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 1st January
2007 represent those of the legacy firm which managed the product. Prior to 1st January 2011 the
SPrIM (Schroder Property Investment Management) Firm existed separate to the Schroder
Investment Management UK and US Firm, from 1st January 2011 these Firms have been
combined into a single firm. 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 1st January 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 Definition
The Euro Credit Conviction Composite (the "Composite") is comprised of all Schroder Investment
Management (UK & US), fully discretionary accounts which seek to achieve returns above the
IBOXX Euro Corporate BBB Index by investing in bonds and other fixed and floating rate
securities denominated in Euro issued by governments, government agencies, supranational and
corporate issuers worldwide. A maximum of 20% of the net assets will be invested in securities
issued by governments and government agencies. Accounts may also invest in derivatives and
may create short or long exposure to the underlying assets of the derivatives
Composite Construction
New accounts are included from the beginning of the first 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 EURO
Composite Inception Date: 31/01/2014
Composite Creation Date: 18/02/2014
Calculation Methodology
The portfolio returns are time-weighted rates of return that are adjusted for cash flows. 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
recognised net of irrecoverable withholding tax. Since January 1999 dividends have been
recognised as of the ex-dividend date having previously been recognised on a cash basis.
Performance results are presented before the deduction of management fees and custodian fees
but after trading expenses.
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.
Schroder EURO Credit Conviction Disclosure as at 31 December 2015
23
Schroder All Maturities Corporate Bond Composite Disclosure as at 31 December 2015
24
Definition of Firm
The Firm is defined as all accounts managed by Schroder Investment Management in the UK and
US, by wholly owned subsidiaries of Schroders PLC. Prior to 1st January 2007 SIM London &
SIM North America existed as two separate Firms which were compliant & verified as separate
entities until 31st December 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 1st January
2007 represent those of the legacy firm which managed the product. Prior to 1st January 2011 the
SPrIM (Schroder Property Investment Management) Firm existed separate to the Schroder
Investment Management UK and US Firm, from 1st January 2011 these Firms have been
combined into a single firm. 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 1st January 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 Definition
The Schroder All Maturities Corporate Bond Composite comprises of all Schroder Investment
Management (UK & US), fully discretionary accounts which seek to achieve returns above the
Merrill Lynch Sterling All Stocks, Non-Gilts Index. The Fund's investment objective is to provide
capital growth and income primarily through investment in non-government debt securities.
Composite accounts may also invest in a wide range of investments including transferable
securities, derivatives, cash, deposits, collective investment schemes and money market
instruments. None of the accounts in the Composite uses leverage.
Composite Construction
New accounts are included from the beginning of the first 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 Pound Sterling
Composite Inception Date: 28/02/2001
Composite Creation Date: 30/01/2008
Calculation Methodology
The portfolio returns are time-weighted rates of return that are adjusted for cash flows. 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
recognised net of irrecoverable withholding tax. Since January 1999 dividends have been
recognised as of the ex-dividend date having previously been recognised on a cash basis.
Performance results are presented before the deduction of management fees and custodian fees
but after trading expenses.
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.
Fee Schedule
The fee scale applied to the composite is 0.25% p.a.
GIPS Compliance and Verification
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
verified for the periods 1st January 1996 to 31st December 2013. The verification report(s) are
available upon request. Verification assesses whether (1) the firm has complied with all the
composite construction requirements of the GIPS standards on a firm-wide basis, and (2) the
firm's policies and procedures are designed to calculate and present performance in compliance
with the GIPS standards. Verification does not ensure the accuracy of any specific composite
presentation.
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.
Schroder Sterling Over 15 Years Corporate Bond Composite
Disclosure as at 31 December 2015
25
Definition of Firm
The Firm is defined as all accounts managed by Schroder Investment Management in the UK and
US, by wholly owned subsidiaries of Schroders PLC. Prior to 1st January 2007 SIM London &
SIM North America existed as two separate Firms which were compliant & verified as separate
entities until 31st December 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 1st January
2007 represent those of the legacy firm which managed the product. Prior to 1st January 2011 the
SPrIM (Schroder Property Investment Management) Firm existed separate to the Schroder
Investment Management UK and US Firm, from 1st January 2011 these Firms have been
combined into a single firm. 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 1st January 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 Definition
The Schroder Sterling Over 15 Yrs Corporate Bond Composite (the "Composite") is comprised of
all Schroder Investment Management (UK & US), fully discretionary accounts which seek to
achieve returns above the ML > 15 Yr All Stocks TL UNP8 index by investing in bonds and other
fixed and floating rate securities denominated in GBP and other currencies issued by
governments, government agencies, supra-national and corporate issuers worldwide. None of the
accounts in the composite use leverage.
Composite Construction
New accounts are included from the beginning of the first 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 Pound Sterling
Composite Inception Date: 31/03/2001
Composite Creation Date: 25/02/2008
Calculation Methodology
The portfolio returns are time-weighted rates of return that are adjusted for cash flows. 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
recognised net of irrecoverable withholding tax. Since January 1999 dividends have been
recognised as of the ex-dividend date having previously been recognised on a cash basis.
Performance results are presented before the deduction of management fees and custodian fees
but after trading expenses.
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.
Fee Schedule
The fee scale applied to the composite is 0.25% p.a.
GIPS Compliance and Verification
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
verified for the periods 1st January 1996 to 31st December 2013. The verification report(s) are
available upon request. Verification assesses whether (1) the firm has complied with all the
composite construction requirements of the GIPS standards on a firm-wide basis, and (2) the
firm's policies and procedures are designed to calculate and present performance in compliance
with the GIPS standards. Verification does not ensure the accuracy of any specific composite
presentation.
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.
Definition of Firm
The Firm is defined as all accounts managed by Schroder Investment Management in the UK and
US, by wholly owned subsidiaries of Schroders PLC. Prior to 1st January 2007 SIM London &
SIM North America existed as two separate Firms which were compliant & verified as separate
entities until 31st December 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 1st January
2007 represent those of the legacy firm which managed the product. Prior to 1st January 2011 the
SPrIM (Schroder Property Investment Management) Firm existed separate to the Schroder
Investment Management UK and US Firm, from 1st January 2011 these Firms have been
combined into a single firm. 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 1st January 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 Definition
The Euro High Yield Composite (the "Composite") is comprised of all Schroder Investment
Management (UK & US), fully discretionary accounts which seek to achieve returns above the
Bank of America Merrill Lynch Euro High Yield Constrained Index (HEC0) by investing in bonds
and other fixed and floating rate securities denominated in Euro issued by governments,
government agencies, supranational and corporate issuers worldwide. A minimum of 70% of the
net assets will be invested in securities with a credit rating below investment grade.
Composite Construction
New accounts are included from the beginning of the first 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 EURO
Composite Inception Date: 31/12/2012
Composite Creation Date: 07/01/2013
Calculation Methodology
The portfolio returns are time-weighted rates of return that are adjusted for cash flows. 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 recognised net of irrecoverable withholding tax. Since January 1999
dividends have been recognised as of the ex-dividend date having previously been recognised on
a cash basis. Performance results are presented before the deduction of management fees and
custodian fees but after trading expenses.
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.
Fee Schedule
Fee Schedule - The fee scale applied to the composite is 0.6% p.a.
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 Verification
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
verified for the periods 1st January 1996 to 31st December 2013. The verification report(s) are
available upon request. Verification assesses whether (1) the firm has complied with all the
composite construction requirements of the GIPS standards on a firm-wide basis, and (2) the
firm's policies and procedures are designed to calculate and present performance in compliance
with the GIPS standards. Verification does not ensure the accuracy of any specific composite
presentation.
Schroder Euro High Yield Composite Disclosure as at 31 December 2015
26
Definition of Firm
The Firm is defined as all accounts managed by Schroder Investment Management in the UK and
US, by wholly owned subsidiaries of Schroders PLC. Prior to 1st January 2007 SIM London &
SIM North America existed as two separate Firms which were compliant & verified as separate
entities until 31st December 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 1st January
2007 represent those of the legacy firm which managed the product. Prior to 1st January 2011 the
SPrIM (Schroder Property Investment Management) Firm existed separate to the Schroder
Investment Management UK and US Firm, from 1st January 2011 these Firms have been
combined into a single firm. 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 1st January 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 Definition
The Schroder Monthly High Income Composite (the "Composite") is comprised of all Schroder
Investment Management (UK & US), fully discretionary accounts that seek to achieve a total
return in excess of the 100% HPCO £ Hedged, prior to 31/8/08 40% UC00 + 60% HPC0 100% £
hedged was used index. Composite account's objective is to achieve a high level of income from
a diversified portfolio of debt securities. The full spectrum of available securities, including
unrated issues and those of non-investment grade, will be utilised. Investments will be in directly
held transferable securities. The fund may also invest in collective investment schemes, warrants
and money market instruments. None of the accounts in the Composite use leverage. On
31/07/2014, the composite was restated for the periods 31/01/04-30/06/2014 so that returns were
reported gross of CT61 tax.
Composite Construction
New accounts are included from the beginning of the first 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 Pound Sterling
Composite Inception Date: 31/03/2000
Composite Creation Date: 04/04/2002
Calculation Methodology
The portfolio returns are time-weighted rates of return that are adjusted for cash flows. 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 recognised net of irrecoverable withholding tax. Since January 1999
dividends have been recognised as of the ex-dividend date having previously been recognised on
a cash basis. Performance results are presented before the deduction of management fees and
custodian fees but after trading expenses.
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.
Fee Schedule
The fee scale applied to the composite is 1.25% p.a.
GIPS Compliance and Verification
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
verified for the periods 1st January 1996 to 31st December 2013. The verification report(s) are
available upon request. Verification assesses whether (1) the firm has complied with all the
composite construction requirements of the GIPS standards on a firm-wide basis, and (2) the
firm's policies and procedures are designed to calculate and present performance in compliance
with the GIPS standards. Verification does not ensure the accuracy of any specific composite
presentation.
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.
Schroder Monthly High Income Composite Disclosure as at 31 December 2015
27
Definition of Firm
The Firm is defined as all accounts managed by Schroder Investment Management in the UK and US, by
wholly owned subsidiaries of Schroders PLC. Prior to 1st January 2007 SIM London & SIM North
America existed as two separate Firms which were compliant & verified as separate entities until 31st
December 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 1st January 2007 represent those of the legacy
firm which managed the product. Prior to 1st January 2011 the SPrIM (Schroder Property Investment
Management) Firm existed separate to the Schroder Investment Management UK and US Firm, from 1st
January 2011 these Firms have been combined into a single firm. 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 1st January 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 Definition
The Strategic Credit Composite is comprised of all Cazenove Capital, fully discretionary accounts that are
managed in a similar manner and seek to generate a total return above sterling cash interest rates.
Accounts in the composite invest primarily through a flexible allocation to investment grade bonds,
noninvestment grade bonds and derivative instruments. It invests in rated and unrated securities including
bonds, notes of fixed variable interest, preference shares, equities, convertible and other securities issued
by government, quasigovernment, supranational, bank and corporate entities, and derivative instruments.
The fund manager, has the flexibility to invest across the credit spectrum, depending on where he sees
the most relative value. Accounts in the composite invest in predominantly UK and Euro issuers, aiming
to generate a gross return substantially above cash over the medium term.
Composite Construction
New accounts are included from the beginning of the first 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
Pound Sterling
Composite Inception Date: 31/12/2007
Composite Creation Date: 23/12/2013
Calculation Methodology
The portfolio returns are time-weighted rates of return that are adjusted for cash flows. 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 recognised net of
irrecoverable withholding tax as of the ex-dividend date. Unless otherwise stated performance results are
presented before the deduction of management fees and custodian fees but after trading expenses.
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. Net returns have been calculated
based on the highest fee rate charged to each account in the composite. The highest fee applied to the
composite is 1% p.a.
Leverage
Derivative instruments (including but not limited to: forward foreign exchange transactions, credit default
swaps, interest rate and government bond futures) may be used for the purposes of efficient portfolio
management and/or meeting the investment objectives of the fund. Such derivative contracts have the
potential to significantly increase the Fund’s risk profile and may create leveraged exposure to the credit
market. The Manager will employ a risk management process to manage any derivative exposure
achieved for the purposes of efficient portfolio management.
Schroder Strategic Credit Composite Disclosure as at 31 December 2015
28
Schroder Euro Corporate Bond composite Composite performance results as of: 31 December 2015
29
Composite - Euro Corporate Bond Composite
Primary Benchmark - Merrill Lynch EMU Corporate Index ER00 (GDR)
Secondary Benchmark - n/a
Year
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return
3 Year
Composite Risk 1
3 Year Primary
Benchmark Risk1
Number of
Portfolios
(throughout
period)
Account
Dispersion2
Market Value at
end of Period
Average Account
Value at end of
Period
Percentage of
Firm Assets Total Firm Assets4
2015 1.82% 1.36% -0.43% 3.27% 2.92% < 5 n/a 7,388,111,330 2,462,703,777 n/a n/a
2014 9.97% 9.48% 8.25% 2.99% 2.81% < 5 n/a 5,217,294,487 1,739,098,162 2.23% 233,624,472,102.86
2013 5.03% 4.56% 2.39% 4.86% 3.91% < 5 n/a 3,476,851,647 1,738,425,824 1.87% 185,570,666,417.77
2012 14.16% 13.64% 13.03% 5.15% 3.84% < 5 n/a 3,788,172,424 3,788,172,424 2.23% 169,857,719,025.49
2011 -0.66% -1.10% 1.99% 5.36% 4.26% < 5 n/a 4,341,261,175 4,341,261,175 2.89% 150,181,474,947.82
2010 4.63% 4.16% 4.82% 4.73% 4.88% < 5 n/a 5,287,304,566 5,287,304,566 3.50% 151,277,519,306.48
2009 17.68% 17.15% 14.90% 4.20% 4.71% < 5 n/a 5,330,550,173 5,330,550,173 4.74% 112,342,282,237.88
2008 0.83% 0.38% -3.28% 3.26% 3.75% < 5 n/a 249,775,712 249,775,712 0.39% 64,491,545,975.88
2007 0.28% -0.17% 0.22% 2.24% 2.18% < 5 n/a 98,069,338 98,069,338 0.09% 110,204,532,829.05
2006 0.87% 0.42% 0.46% 2.38% 2.38% < 5 n/a 235,519,995 235,519,995 0.25% 94,818,131,792.34
2005 4.58% 4.11% 4.08% 2.56% 2.66% < 5 n/a 403,835,405 403,835,405 0.50% 81,145,632,932.60
2004 8.14% 7.65% 7.48% 2.69% 2.84% < 5 n/a 330,094,389 330,094,389 0.44% 75,762,917,408.50
2003 7.15% 6.67% 6.35% 2.97% 3.10% < 5 n/a 200,805,039 200,805,039 0.28% 72,079,501,076.53
2002 9.23% 8.74% 8.84% n/a n/a < 5 n/a 54,222,076 54,222,076 0.08% 69,967,330,959.83
2001 5.74% 5.27% 6.49% n/a n/a < 5 n/a 33,231,310 33,231,310 0.12% 26,792,715,571.07
2000* 4.10% 3.87% 4.55% n/a n/a < 5 n/a 23,202,209 23,202,209 0.07% 34,606,500,107.88
As at Dec 2015
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return Composite Risk1
Primary
Benchmark Risk1
Annualised 3 Year 5.55% 5.08% 3.34% 3.27% 2.92%
Annualised 5 Year 5.93% 5.45% 4.93% 4.23% 3.49%
Annualised 7 Year 7.34% 6.86% 6.29% 4.31% 3.63%
Annualised 10 Year 5.29% 4.82% 4.08% 4.10% 3.76%
Annualised S.I.3 5.92% 5.45% 5.07% 3.64% 3.44%
1 Annualised standard deviation of gross monthly returns for the composite and monthly returns for the benchmark
2 Asset weighted standard deviation of annual gross returns of accounts that have been in the composite for the entire year
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 Multi
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
Currency: EUR
Gross Returns as of: 31-Dec-2015
Firm: UK-INT
Schroder Euro Credit Conviction composite Composite performance results as of: 31 December 2015
30
Composite - EURO Credit Conviction
Primary Benchmark - IBOXX EURO Corporates BBB
Secondary Benchmark - n/a
Year
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return
3 Year
Composite Risk 1
3 Year Primary
Benchmark Risk1
Number of
Portfolios
(throughout
period)
Account
Dispersion2
Market Value at
end of Period
Average Account
Value at end of
Period
Percentage of
Firm Assets Total Firm Assets4
2015 2.43% 1.42% -0.91% n/a n/a < 5 n/a 989,956,119 989,956,119 n/a n/a
2014* 8.82% 7.83% 6.66% n/a n/a < 5 n/a 372,723,246 372,723,246 0.16% 233,624,472,102.86
As at Dec 2015
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return Composite Risk1
Primary
Benchmark Risk1
Annualised 3 Year n/a n/a n/a n/a n/a
Annualised 5 Year n/a n/a n/a n/a n/a
Annualised 7 Year n/a n/a n/a n/a n/a
Annualised 10 Year n/a n/a n/a n/a n/a
Annualised S.I.3 5.83% 4.78% 2.93% 3.65% 3.23%
1 Annualised standard deviation of gross monthly returns for the composite and monthly returns for the benchmark
2 Asset weighted standard deviation of annual gross returns of accounts that have been in the composite for the entire year
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 Multi
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
Currency: EUR
Gross Returns as of: 31-Dec-2015
Firm: UK-INT
Schroder All Maturities Corporate Bond composite Composite performance results as of: 31 December 2015
31
Composite - Schroder All Maturities Corporate Bond Composite
Primary Benchmark - ML Non-Gilts All Stocks TL UNP0
Secondary Benchmark - n/a
Year
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return
3 Year
Composite Risk 1
3 Year Primary
Benchmark Risk1
Number of
Portfolios
(throughout
period)
Account
Dispersion2
Market Value at
end of Period
Average Account
Value at end of
Period
Percentage of
Firm Assets Total Firm Assets4
2015 0.60% 0.35% 0.74% 5.79% 5.95% < 5 n/a 845,752,760 845,752,760 n/a n/a
2014 12.15% 11.87% 12.33% 5.02% 4.95% < 5 n/a 1,012,749,924 1,012,749,924 0.56% 181,303,377,699.73
2013 2.64% 2.38% 0.81% 5.77% 5.20% < 5 n/a 984,137,593 984,137,593 0.64% 154,389,192,281.00
2012 14.19% 13.91% 13.20% 5.57% 4.68% < 5 n/a 1,443,544,747 1,443,544,747 1.05% 137,767,097,276.00
2011 4.43% 4.17% 7.23% 6.12% 6.06% < 5 n/a 1,424,681,876 1,424,681,876 1.14% 125,447,599,076.00
2010 6.73% 6.46% 8.45% 6.15% 7.09% < 5 n/a 1,374,146,483 1,374,146,483 1.06% 129,624,298,705.00
2009 15.31% 15.02% 11.06% 5.36% 6.66% < 5 n/a 1,087,219,418 1,087,219,418 1.09% 99,813,040,697.00
2008 0.58% 0.32% -3.57% 4.12% 4.99% < 5 n/a 494,295,166 494,295,166 0.79% 62,351,920,495.00
2007 1.54% 1.28% 1.89% 3.19% 3.23% < 5 n/a 177,795,046 177,795,046 0.22% 80,942,699,545.00
2006 1.37% 1.11% 0.85% 3.26% 3.19% < 5 n/a 173,322,695 173,322,695 0.27% 63,884,694,460.00
2005 9.42% 9.15% 8.79% 3.88% 3.75% < 5 n/a 448,930,903 448,930,903 0.81% 55,754,866,657.00
2004 7.13% 6.86% 7.00% 4.54% 4.55% < 5 n/a 549,939,651 549,939,651 1.03% 53,638,602,879.00
2003 6.72% 6.45% 5.94% n/a n/a < 5 n/a 439,929,652 439,929,652 0.87% 50,787,751,863.00
2002 7.25% 6.98% 9.91% n/a n/a < 5 n/a 220,683,855 220,683,855 0.48% 45,605,358,759.00
2001* 6.39% 6.16% 5.58% n/a n/a < 5 n/a 110,640,140 110,640,140 0.24% 46,408,027,096.00
As at Dec 2015
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return Composite Risk1
Primary
Benchmark Risk1
Annualised 3 Year 5.01% 4.75% 4.49% 5.79% 5.95%
Annualised 5 Year 6.67% 6.40% 6.73% 5.55% 5.38%
Annualised 7 Year 7.87% 7.60% 7.58% 5.73% 5.75%
Annualised 10 Year 5.81% 5.55% 5.15% 5.35% 5.61%
Annualised S.I.3 6.40% 6.14% 5.98% 5.12% 5.29%
1 Annualised standard deviation of gross monthly returns for the composite and monthly returns for the benchmark
2 Asset weighted standard deviation of annual gross returns of accounts that have been in the composite for the entire year
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 Multi
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
Currency: GBP
Gross Returns as of: 31-Dec-2015
Firm: SIM-UK
Schroder Sterling Over 15 Years Corporate Bond composite
Composite performance results as of: 31 December 2015
32
Composite - Schroder Sterling Over 15 Yrs Corporate Bond Composite
Primary Benchmark - ML > 15 Yr All Stocks TL UNP8
Secondary Benchmark - n/a
Year
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return
3 Year
Composite Risk 1
3 Year Primary
Benchmark Risk1
Number of
Portfolios
(throughout
period)
Account
Dispersion2
Market Value at
end of Period
Average Account
Value at end of
Period
Percentage of
Firm Assets Total Firm Assets4
2015 -0.53% -0.78% -0.76% 9.77% 9.86% < 5 n/a 284,071,392 284,071,392 n/a n/a
2014 19.30% 19.00% 18.76% 7.89% 7.73% < 5 n/a 295,860,045 295,860,045 0.16% 181,303,377,699.73
2013 0.62% 0.37% -0.69% 8.01% 7.67% < 5 n/a 258,461,728 258,461,728 0.17% 154,389,192,281.00
2012 13.77% 13.48% 13.22% 7.64% 7.40% < 5 n/a 293,228,340 293,228,340 0.21% 137,767,097,276.00
2011 8.98% 8.71% 12.37% 8.76% 9.43% < 5 n/a 263,709,596 263,709,596 0.21% 125,447,599,076.00
2010 6.96% 6.69% 9.86% 9.77% 10.79% < 5 n/a 260,071,071 260,071,071 0.20% 129,624,298,705.00
2009 13.07% 12.79% 12.31% 8.81% 9.90% < 5 n/a 288,634,852 288,634,852 0.29% 99,813,040,697.00
2008 -2.85% -3.10% -4.20% 7.13% 7.42% < 5 n/a 239,739,641 239,739,641 0.38% 62,351,920,495.00
2007 -0.48% -0.73% -0.73% 5.32% 5.25% < 5 n/a 203,450,712 203,450,712 0.25% 80,942,699,545.00
2006 -0.11% -0.36% -0.08% 4.97% 4.82% < 5 n/a 210,405,163 210,405,163 0.33% 63,884,694,460.00
2005 11.95% 11.67% 11.60% 5.11% 5.09% < 5 n/a 296,645,085 296,645,085 0.53% 55,754,866,657.00
2004 7.98% 7.71% 7.80% 6.27% 6.55% < 5 n/a 306,545,686 306,545,686 0.57% 53,638,602,879.00
2003 7.77% 7.50% 6.72% n/a n/a < 5 n/a 423,741,472 423,741,472 0.83% 50,787,751,863.00
2002 8.38% 8.11% 10.69% n/a n/a < 5 n/a 354,125,727 354,125,727 0.78% 45,605,358,759.00
2001* 6.78% 6.58% 6.19% n/a n/a < 5 n/a 162,192,707 162,192,707 0.99% 16,391,633,816.00
As at Dec 2015
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return Composite Risk1
Primary
Benchmark Risk1
Annualised 3 Year 6.09% 5.82% 5.38% 9.77% 9.86%
Annualised 5 Year 8.16% 7.89% 8.29% 8.66% 8.63%
Annualised 7 Year 8.68% 8.40% 9.08% 8.89% 9.23%
Annualised 10 Year 5.63% 5.36% 5.73% 8.47% 8.80%
Annualised S.I.3 6.71% 6.44% 6.79% 7.97% 8.25%
1 Annualised standard deviation of gross monthly returns for the composite and monthly returns for the benchmark
2 Asset weighted standard deviation of annual gross returns of accounts that have been in the composite for the entire year
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 Multi
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
Currency: GBP
Gross Returns as of: 31-Dec-2015
Firm: UK-INT
Schroder Euro High Yield composite Composite performance results as of: 31 December 2015
33
Composite - Euro High Yield Composite
Primary Benchmark - ML Euro High Yield Constrained (HEC0)
Secondary Benchmark - n/a
Year
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return
3 Year
Composite Risk 1
3 Year Primary
Benchmark Risk1
Number of
Portfolios
(throughout
period)
Account
Dispersion2
Market Value at
end of Period
Average Account
Value at end of
Period
Percentage of
Firm Assets Total Firm Assets4
2015 4.41% 3.37% 0.73% 4.22% 4.45% < 5 n/a 292,731,005 292,731,005 n/a n/a
2014 6.10% 5.05% 5.35% n/a n/a < 5 n/a 136,649,999 136,649,999 0.06% 233,624,472,102.86
2013 10.06% 8.97% 10.04% n/a n/a < 5 n/a 116,541,067 116,541,067 0.06% 185,570,666,417.77
As at Dec 2015
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return Composite Risk1
Primary
Benchmark Risk1
Annualised 3 Year 6.83% 5.77% 5.30% 4.22% 4.45%
Annualised 5 Year n/a n/a n/a n/a n/a
Annualised 7 Year n/a n/a n/a n/a n/a
Annualised 10 Year n/a n/a n/a n/a n/a
Annualised S.I.3 6.83% 5.77% 5.30% 4.22% 4.45%
1 Annualised standard deviation of gross monthly returns for the composite and monthly returns for the benchmark
2 Asset weighted standard deviation of annual gross returns of accounts that have been in the composite for the entire year
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 Multi
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
Currency: EUR
Gross Returns as of: 31-Dec-2015
Firm: SIM-UK
Schroder Monthly High Income composite Composite performance results as of: 31 December 2015
34
Composite - Schroder Monthly High Income Composite
Primary Benchmark - 100% HPCO £ Hedged, prior to 31/8/08 40% UC00 + 60% HPC0 100% £ hedged was used
Secondary Benchmark - n/a
Year
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return
3 Year
Composite Risk 1
3 Year Primary
Benchmark Risk1
Number of
Portfolios
(throughout
period)
Account
Dispersion2
Market Value at
end of Period
Average Account
Value at end of
Period
Percentage of
Firm Assets Total Firm Assets4
2015 7.07% 5.75% 1.91% 4.07% 4.28% < 5 n/a 243,985,324 243,985,324 n/a n/a
2014 6.89% 5.57% 5.72% 5.93% 5.64% < 5 n/a 220,092,492 220,092,492 0.12% 181,303,377,699.73
2013 10.28% 8.92% 10.70% 11.70% 9.37% < 5 n/a 205,315,184 205,315,184 0.13% 154,389,192,281.00
2012 24.73% 23.19% 29.17% 13.40% 10.94% < 5 n/a 217,286,420 217,286,420 0.16% 137,767,097,276.00
2011 -9.45% -10.56% -2.70% 15.40% 15.06% < 5 n/a 201,066,016 201,066,016 0.16% 125,447,599,076.00
2010 12.38% 10.99% 16.28% 15.89% 18.98% < 5 n/a 281,919,367 281,919,367 0.22% 129,624,298,705.00
2009 52.89% 51.00% 78.26% 14.56% 18.17% < 5 n/a 151,673,641 151,673,641 0.15% 99,813,040,697.00
2008 -8.96% -10.09% -30.65% 10.95% 12.29% < 5 n/a 60,900,541 60,900,541 0.10% 62,351,920,495.00
2007 0.27% -0.97% 0.10% 3.06% 3.14% < 5 n/a 69,176,038 69,176,038 0.09% 80,942,699,545.00
2006 7.33% 6.00% 6.67% 2.64% 2.85% < 5 n/a 88,470,000 88,470,000 0.14% 63,884,694,460.00
2005 10.07% 8.71% 8.92% 3.40% 3.56% < 5 n/a 63,363,000 63,363,000 0.11% 55,754,866,657.00
2004 8.86% 7.51% 13.63% 3.89% 5.74% < 5 n/a 58,641,000 58,641,000 0.11% 53,638,602,879.00
2003 14.22% 12.81% 20.43% 4.17% 9.51% < 5 n/a 55,131,573 55,131,573 0.11% 50,787,751,863.00
2002 3.93% 2.64% -0.77% n/a n/a < 5 n/a 48,871,771 48,871,771 0.11% 45,605,358,759.00
2001 5.42% 4.12% -1.80% n/a n/a < 5 n/a 21,562,797 21,562,797 0.05% 46,408,027,096.00
2000* 3.20% 2.24% -4.45% n/a n/a < 5 n/a 18,898,279 18,898,279 0.03% 62,120,171,305.00
As at Dec 2015
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return Composite Risk1
Primary
Benchmark Risk1
Annualised 3 Year 8.07% 6.73% 6.04% 4.07% 4.28%
Annualised 5 Year 7.35% 6.02% 8.43% 9.31% 7.76%
Annualised 7 Year 13.65% 12.25% 17.58% 10.87% 10.87%
Annualised 10 Year 9.15% 7.80% 8.69% 11.00% 11.78%
Annualised S.I.3 8.69% 7.34% 7.65% 9.00% 10.44%
1 Annualised standard deviation of gross monthly returns for the composite and monthly returns for the benchmark
2 Asset weighted standard deviation of annual gross returns of accounts that have been in the composite for the entire year
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 Multi
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
Currency: GBP
Gross Returns as of: 31-Dec-2015
Firm: SIM-UK
Schroder Strategic Credit composite Composite performance results as of: 31 December 2015
35
Composite - Strategic Credit Composite
Primary Benchmark - UK Treasury Bills 3 Month
Secondary Benchmark - n/a
Year
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return
3 Year
Composite Risk 1
3 Year Primary
Benchmark Risk1
Number of
Portfolios
(throughout
period)
Account
Dispersion2
Market Value at
end of Period
Average Account
Value at end of
Period
Percentage of
Firm Assets Total Firm Assets4
2015 3.33% 2.45% 0.45% 1.99% 0.01% < 5 n/a 1,242,522,627 621,261,313 n/a n/a
2014 3.08% 2.20% 0.42% 2.57% 0.01% < 5 n/a 1,141,151,520 570,575,760 0.63% 181,303,377,699.73
2013 4.79% 3.84% 0.38% 4.57% 0.03% < 5 n/a 1,083,584,961 541,792,481 8.45% 12,820,807,398.92
2012 13.27% 12.24% 0.47% 4.94% 0.02% < 5 n/a 1,053,923,669 526,961,835 13.92% 7,569,738,495.91
2011 -0.95% -1.86% 0.58% 6.03% 0.05% < 5 n/a 1,032,854,043 516,427,021 17.42% 5,928,179,794.47
2010 8.09% 7.09% 0.54% 8.65% 0.60% < 5 n/a 805,284,674 402,642,337 12.10% 6,653,235,819.12
2009 28.38% 27.20% 0.66% n/a n/a < 5 n/a 431,873,465 215,936,732 6.15% 7,016,746,425.74
2008 -9.79% -10.63% 4.83% n/a n/a < 5 n/a 218,660,440 109,330,220 4.44% 4,921,902,420.08
As at Dec 2015
Gross Composite
Return
Net Composite
Return
Primary
Benchmark
Return Composite Risk1
Primary
Benchmark Risk1
Annualised 3 Year 3.73% 2.83% 0.42% 1.99% 0.01%
Annualised 5 Year 4.60% 3.67% 0.46% 3.68% 0.02%
Annualised 7 Year 8.21% 7.24% 0.50% 4.39% 0.04%
Annualised 10 Year n/a n/a n/a n/a n/a
Annualised S.I.3 5.78% 4.83% 1.03% 6.01% 0.42%
1 Annualised standard deviation of gross monthly returns for the composite and monthly returns for the benchmark
2 Asset weighted standard deviation of annual gross returns of accounts that have been in the composite for the entire year
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 Multi
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
Currency: GBP
Gross Returns as of: 31-Dec-2015
Firm: CAZ