SCHRODER INTERNATIONAL SELECTION FUND1 GLOBAL CREDIT INCOME

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SCHRODER INTERNATIONAL SELECTION FUND1 GLOBAL CREDIT INCOME
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Schroder International Selection Fund1 Global Credit
Income
Think Income. Think Stability. Think Innovation.
                                                               Past performance is not a guide to future performance and may not be repeated.
March 2020                                  1Schroder   International Selection Fund is referred to as Schroder ISF throughout this presentation.
SCHRODER INTERNATIONAL SELECTION FUND1 GLOBAL CREDIT INCOME
What’s next for global credit markets?
Value of assets in central banks’ balance sheets ($ trillions)                                          Global % of negative debt yield
                                                                                                         18

            BIS sounds alarm on corporate debt pile-up                                                   16
                                                                                                                                                  What’s in a A(AA) Credit Rating?
            Financial Times, 5 March 2019                                                                                                         ‘…combination of increased BAA issuance and
                                                                                                         14                                       decreased AAA issuance poses financial stability
                                                                                                                                                  concerns
                                                                                                                                                  Liberty Street Economics – Federal Reserve Bank of NY, 08
                                                                                                         12                                       January 2020

                                                                                                         10

                                                                                                          8
       IMF warns high corporate leverage could threaten
       financial stability                                                                                6

       IMF/Financial Stability Report, 19 April 2019
                                                                                                          4                Leveraged finance: a supervisory concern in the Banking
                                                                                                                           Union?
                                                                                                          2
                                                                                                                           European Parliament Briefing, March 2019

                                                                                                          0

                                                                                                                       Jun-14

                                                                                                                                                            Jun-15

                                                                                                                                                                                                Jun-16

                                                                                                                                                                                                                                    Jun-17

                                                                                                                                                                                                                                                                        Jun-18

                                                                                                                                                                                                                                                                                                            Jun-19
                                                                                                                                         Dec-14

                                                                                                                                                                              Dec-15

                                                                                                                                                                                                                  Dec-16

                                                                                                                                                                                                                                                      Dec-17

                                                                                                                                                                                                                                                                                          Dec-18

                                                                                                                                                                                                                                                                                                                              Dec-19
                                                                                                                                Sep-14

                                                                                                                                                                     Sep-15

                                                                                                                                                                                                         Sep-16

                                                                                                                                                                                                                                             Sep-17

                                                                                                                                                                                                                                                                                 Sep-18

                                                                                                                                                                                                                                                                                                                     Sep-19
                                                                                                              Mar-14

                                                                                                                                                   Mar-15

                                                                                                                                                                                       Mar-16

                                                                                                                                                                                                                           Mar-17

                                                                                                                                                                                                                                                               Mar-18

                                                                                                                                                                                                                                                                                                   Mar-19
                                                                                                                                                                        Global % of negative yield debt ($ trillions)

Source LHS: Refinitiv Datastream, Schroders Economics Group, Bloomberg as of October 2019 . Source RHS: Bloomberg, Barclays as of February 28, 2020

1
SCHRODER INTERNATIONAL SELECTION FUND1 GLOBAL CREDIT INCOME
Think Income.

                     Think Stability.

                     Think Innovation.

    Source: Schroders.

2
SCHRODER INTERNATIONAL SELECTION FUND1 GLOBAL CREDIT INCOME
Think Income: Schroder ISF Global Credit Income
An income fund with global credit as the primary source

             A dynamic and unconstrained approach with true global diversification

             Drawdown mitigation techniques built into proprietary asset allocation
             model

              No sector or regional biases

              Bottom-up credit selection driven by a thematic credit selection process

               A Fund designed solely to meet its objective: deliver stable yield 1 while mitigating
                                                  drawdowns
Source: Schroders as at 31 January 2020, for illustrative purposes only. 1At the last record date, the A Dis USD share class paid 5.00% p.a. distribution yield at end November. This is a target only and is not guaranteed. In the event that the fund's
performance is less than the intended distributions, the distributions will be made from the fund's capital. Other currency share class yields adjusted to account for hedging cost. Guidelines refer to internal guidelines only that are subject to change.
The distribution rate is reviewed by the investment team on a quarterly basis. Clients are paid distributions on a monthly basis for the A USD Dis share class.

3
Think Stability: A global approach with proven alpha delivery from
Schroders
                                                                                                  Schroder ISF Global Credit Income performance3 and drawdown4 since inception
                  Strong performance track record
                                                                                                 12%
                                                                                                 10%
                                                                                                                                                            10,4%
                                                                                                  8%
              7/9                                            US$                                  6%
           Flagship Credit
          strategies are top
                                                            134bn                                 4%                                                                                             5,1%
                                                                                                                                                                                                                                      6,1%
        quartile vs. peers over                            Fixed income
                5 years                                       division2                           2%
                                                                                                  0%                     1,3%
                                                                                                                        YTD                                1 Year                                2 Year                     Since Inception (p.a.)

                                    2.01                                                           0%
                                  Sharpe ratio since                                              -2%           -0,6%
                                      inception                                                                                                     -1,9%                                -2,3%
                                                                                                  -4%                   -2,7%                                                                                                -2,7%
                                                                                                  -6%
                                                                                                                                                            -6,1%                                -5,4%
                                                                                                  -8%                                                               -6,6%                                                                    -7,3%
         1 year peer group                             3 year peer group                         -10%                                                                                                                                -8,9%
                rank                                          rank                               -12%                                                                                              -11,0%
                                                                                                           Schroder ISF Global Credit           iShares Global Corporate            iShares Global High Yield             JPM EMBI Global Total
              Top quartile                                Top decile                                            Income A Dis*                          Bond ETF                            Bond ETF                           Return Index

                                                                                                                             1 year max. drawdown                3 year max. drawdown                5 year max. drawdown

           Experienced team focused on delivering industry leading performance and downside
                                               mitigation
Past performance is not a guide to future performance and may not be repeated.
1Peer group rank and external ratings as at 31 January 2020. Peer group rank sourced from Morningstar using default primary retail share classes. This does not include three credit strategies due to insufficient track record length (under five years).
2Fixed income division AUM as at 28 June 2019. 3Source: Schroders for performance information as at 31 January 2020. 4Source: Schroders, Bloomberg, Barclays, JP Morgan, BlackRock as at 14 January 2020. The information contained herein: (1)

is proprietary to Bloomberg and/or its content providers; (2) may not be copied or distributed; (3) may not be accurate, complete or timely; and (4) has not been checked or verified by Schroders in any way. None of Bloomberg, its content providers or
Schroders shall be responsible for any damages or losses arising from any use of the information in any way.

4
Think Innovation: A proprietary multi-stage allocation process with
drawdown mitigation risk built in

                                                            Objectives
                                                         Income and drawdown
                                                              mitigation

                                                                                                               Sleeve managers implement security selection views
                  Drawdown
                  mitigation
                Economic cycle and

                                                                                                                                                                    Global Allocation
                correlation analysis

                                                            Allocation
                                                                                         Validated by Credit
                                                              Model
                                                                                          Asset Allocation
                                                               and                           Committee
                                                            Optimiser
             Expected returns
             Sourced from global credit
                     platform

                                                           Constraints
                                                     Global Diversification, turnover,
                                                                tail loss

Source: Schroders, for illustrative purposes only.

5
Capturing upside and mitigating drawdowns
GCI asset allocation decisions
Capture upside (Q1 2017)                                               US rates spike higher (Q1 2018)                                                                                                                  Preserving capital (Q4 2018)
    5                                                                   3                                                                                                                                                1

                                                                        2
    4                                                                                                                                                                                                                    0

                                                                        1

    3                                                                                                                                                                                                                    -1
                                                                        0

    2                                                                  -1                                                                                                                                                -2

                                                                       -2
    1                                                                                                                                                                                                                    -3

                                                                       -3

    0                                                                                                                                                                                                                    -4
                                                                       -4

 -1                                                                    -5                                                                                                                                                -5
                                                                            29-dic.

                                                                                                                                                                      02-mar.
                                                                                                                                                                                09-mar.
                                                                                                                                                                                          16-mar.
                                                                                                                                                                                                    23-mar.
                                                                                                                                                                                                              30-mar.
                                                                                                                              02-feb.
                                                                                                                                        09-feb.
                                                                                                                                                  16-feb.
                                                                                                                                                            23-feb.
                                                                                      05-ene.
                                                                                                12-ene.
                                                                                                          19-ene.
                                                                                                                    26-ene.

                                                         Schroder ISF Global Credit Income A Dis                                                                                    iShares Global High Yield Bond
                                                         iShares JPM US EM Bond ETF                                                                                                 iShares Global Corporate Bond ETF

Source: Schroders, BlackRock, iShares, Bloomberg, JPM as of January 2020.

6
Thematic credit research approach aims to provide a forward
context to credit research
       Themes provide a forward-looking context to credit research

       Environmental and Social trends combine with other non-financial external secular trends

       Recent research focuses on pensions, gas distribution and the impact of lower rates for longer

 Company                                                             Sector                                       Theme

                                                                     Media                                        Viewing trends

                                                                     Real estate                                  Immigration, urbanisation and e-commerce

                                                                     Services                                     Urbanisation

Source: Schroders. For illustrative purposes only and should not be considered a recommendation to buy or sell.

7
Adoption of streaming accelerates
Case Study: Netflix
                                                                        Attractive new issue pricing
    Market leader: Netflix is the largest subscription video                                                                             370
                                                                                         1,0%
    on demand (SVOD) provider in the world.
                                                                                         0,9%
                                                                                                                                         350

                                                                                                                                               Bond Spread vs Libor
                                                                                         0,8%
    Streaming: the company utilizes data and technology to
    improve its services rather than sell it on to advertisers.                          0,7%

                                                                  Portfolio allocation
                                                                                                                                         330
    Competition is intense, but penetration is low in the US                             0,6%
    and especially outside of the US
                                                                                         0,5%                                            310
                                                                                         0,4%
    Content: 7 years ago the company began on its path to                                                                                290
    build original content. This results in a higher cash burn,                          0,3%
    but they have more control over content and these are                                0,2%
    typically front loaded                                                                                                               270
                                                                                         0,1%
                                                                                         0,0%                                            250
    Fundamentals: BB- issue offering attractive relative
    value relative to peers

                                                                                                % MV   NFLX 3.875% 11/15/29 (ASW, RHS)
Source: Bloomberg as of 13 January 2019.

8
An unloved name in an unloved sector
Case Study: Casino
    What happened?                                                                               COFP 3.2480 07/03/24 €
    Complicated ownership structure
                                                                                                 0,6%                                  Monoprix chairman Regis Schultz
                                                                                                                                       quite France’s Casino group
                                                                                                                                                                                                                          10%
    Three entities through which Jean-Charles                                                                                          Financial Times, 25 June 2019
    Naouri owns Casino entered procedure
    de sauvegarde                                                                                0,5%                                                                                                                     9%
    At the same time retail/supermarket names

                                                                          Portfolio allocation
    have been under pressure

                                                                                                                                                                                                                                 Bond Yield
                                                                                                 0,4%                                                                                                                     8%

    Recent issues                                                                                       Casino parent Rallye enters
    Disruption/price wars                                                                        0,3%   bankruptcy protection                                                                                             7%
                                                                                                        Financial Times, 23 May 2019

    Overleverage/complicated ownership structure
                                                                                                 0,2%                                                                                                                     6%

    Long-term rewards                                                                            0,1%                                                                                                                     5%
    In-depth analysis provides comfort in
    senior debt
                                                                                                 0,0%                                                                                                                     4%
    Familiarity with prior issues in supermarket                                                    May-19         Jun-19          Jul-19          Aug-19         Sep-19       Oct-19    Nov-19     Dec-19    Jan-20
    space (Iceland and Tesco) aided analysis
                                                                                                                                   % MV                                  COFP 4.498 03/7/24 (Yield, RHS)
    Position initiated at a yield of 8%+ in €

Source: Bloomberg, FT; as at January 2020, for illustrative purposes only. Any references to securities, sectors, regions and/or countries are for illustrative purposes only and are not to be considered a recommendation to
buy or sell.

9
Extracting value in ‘boring’ sectors – waste management
Case Study: Servicios Medio Ambiente (FCC)
                                                                 Inaugural issuer creating attractive premiums relative to
     Solid business fundamentals: FCC is a waste                 market
     management services company
                                                                  200
                                                                                        180
                                                                  180                                             167
     Green bond: the issuance will be used to existing green
     projects in Spain and the UK. Focusing on Social             160
     development goals (SDGs) with the most impact: Pollution     140
     prevention and control and clean transportation              120
                                                                  100
     Urbanisation: Fundamentals remain well supported by           80          66
                                                                                                           57
     population growth and urbanisation trends.                    60
     The business has been operating in many jurisdictions for     40
     over 80 years with high barriers to entry                     20
                                                                    0
     Regulatory: limited risk for the company as any price                 02/12/2019 (at issue)           12/18/2019
     changes are passed on to clients                                     Barclays Euro Aggregate Corporate OAS (ASW, bps)
                                                                          FCCSER 1.661 12/04/26 (ASW, bps)

Source: Bloomberg, Barclays as of December 18, 2019.

10
How are we positioned?
Key portfolio characteristics as at 28 February 2020
                                                                                                                                                      Investment grade split (%MV1)
                                                                                                                                                                              5,5
                                                                       Strategy                                                                                                                            EUR

                                                                                                                                                                                                           GBP
 AUM                                                                      $3.9bn                                                                                                               32,6
                                                                                                                                                                    25,6                                   USD

                                                                                                                                                                                                           SEK
 Effective Yield                                                             3.5%
                                                                                                                                                                                                           EM
                                                                                                                                                                                  11,2
 OAS2                                                                        +207

 Effective Duration                                                            4.8
                                                                                                                                                           High yield split (%MV1)
 Investment Grade3                                                         74.9%

 High Yield3                                                               25.6%                                                                                                                           EUR
                                                                                                                                                                      8,3                      8,7
                                                                                                                                                                                                           GBP
 Number of     issuers4                                                       615
                                                                                                                                                                                                           USD

                                                                                                                                                                                                           EM
 Average credit rating                                                       BBB
                                                                                                                                                                                         3,1
                                                                                                                                                                            5,4

Source: Schroders, FIA, based on unaudited data as at 28 February 2020. 1MV is Market Value. 2OAS is Option Adjusted Spread. 3May not sum to 100% as forwards, IRS, CDS float and unrated securities are excluded.
4Fund issuer number treats each CDS index as a single issuer. The fund is fully hedged to USD. Any references to securities, sectors, regions and/or countries are for illustrative purposes only and are not to be considered a

recommendation to buy or sell.

11
Opportunities in 2020
Summary of our views

  Initial signs of optimism                                 Remain defensive while          Preference for defensive            Emerging markets
    in global growth likely                                     searching for                       sectors
   impacted by Covid - 19                                       idiosyncratic
       CB likely to accelerate                                  opportunities
         accommodation                                       Preference for IG within the       Opportunities in more          EM offering attractive
   Fiscal policy could be an                                          portfolio             defensive non-cyclical sectors   opportunities relative to DM
 additional support mechanism                                                                    such as healthcare,
                                                            Looking to take advantage of                                     Searching for opportunities in
                                                                                              telecommunications and
      US looks to remain more                                   dislocation by adding                                        the corporate and sovereign
                                                                                                       utilities
     resilient compared to other                              selectively within HY and                                        space across IG and HY
                markets                                      other names that have sold      Cyclical and subordinated
                                                                   off aggressively         banking exposure continues
                                                                                              to remain at low levels

Source: Schroders, as at 28 February 2020. For illustrative purposes only.

12
Key takeaways

                                 − Income focused objective: Designed with income and drawdown
     Distribution yield: 5%
      3Y Volatility: 2.0%
                                   mitigation in mind

                                 − Stability: Volatility is here to stay so it is important to have a dynamic
     Portfolio credit quality:
      Investment Grade *
                                   management approach that minimises drawdowns

                                 − Innovation is important: New techniques and approaches are
                                   needed to manage credit in the environment of tomorrow
     Top decile performer vs
         category peers
                                 − Diversification: Choose a fund that is not reliant on particular regions
                                   or sectors in the credit market

                                 Don’t follow consensus: It is a crowded market, but experienced
                                 credit teams can uncover opportunities to outperform peers
                                  Source: Schroders, as at December 2019. * Using average ratings across Moody’s, S&P and Fitch. The fund has been investment grade on average over the full life of the
                                  fund. Morningstar references global flexible bond peer group over 3 and 5 years using net of fees A USD share class as at 31 December 2019.

13
Appendix
Schroder ISF Global Credit Income
Attribution
 Date                              Total Return (bps)                  FX (bps)                   Rates (bps)                 Sovereign (bps)                     Credit (bps)                  Residual (bps)
 20161                                       127                            2                            9                              16                              117                           -17
 2017                                        869                           16                           -3                             162                             722                            -37
 2018                                        -53                          112                          -21                             126                             -285                            15
 2019                                       1,249                          164                         209                             114                              777                           -16
 Jan-19                                      228                           15                           22                              27                              164                             1
 Feb-19                                      100                           14                          -26                              14                              100                            -2
 Mar-19                                      163                           15                           96                               7                               42                             4
 Apr-19                                      112                           14                          -31                              9                              120                             -1
 May-19                                       9                            14                          111                              -5                             -107                            -3
 Jun-19                                      207                           13                           47                              25                             124                              0
 Jul-19                                      133                           14                          23                               14                              82                              1
 Aug-19                                      73                            12                          129                             -20                              -42                            -7
 Sep-19                                       4                             11                         -53                              11                              41                             -7
 Oct-19                                       55                           12                          -37                              7                               74                            -1
 Nov-19                                       14                            9                          -33                              1                               36                             0
 Dec-19                                       87                           13                          -51                              18                              105                            2
 2020                                        147                           10                          127                              6                                5                             -1
 Jan-20                                      147                           10                          127                              6                                5                             -1
 Total                                      2,489                          330                         344                             460                             1,393                          -37

Past performance is not a guide to future performance and may not be repeated. The return may increase or decrease as a result of currency fluctuations.
Source: Schroders, as at dates specified, gross of all fees, based on end-of-day market prices for benchmark comparison. 12016 since inception 30 November 2016. Please refer to the prospectus for
applicable fees.

15
2019 Performance Attribution
Summary
          Quarter                        Portfolio Net Return                 Positive contributors                                                                Negative detractors
                                                                              – US Energy
                                                                              – EM Sovereign
                                                                              – GBP Senior Banks & non-banking fin serv
         Q1 2019                                +4.5%                         – EUR Real Estate, Senior Bank, Utilities
                                                                              – EUR and GBP Services
                                                                              – Global Rates
                                                                              – Global Rates
                                                                              – USD senior banks, energy, telcos
         Q2 2019                                +3.0%                         – EUR real estate, utility , telcos, and senior banks                                - GBP insurer
                                                                              – EMD sovereigns
                                                                              – Issuers: VW, Ukraine, EDF, Telefonica, Romania, Achmea
                                                                              – USD healthcare, utility, senior banking                                            - Global Rates
                                                                              – EUR Consumer cyclical                                                              - EUR Real Estate, Services
         Q3 2019                                +1.9%                         – EMD hard currency sovereigns                                                         and Healthcare
                                                                              – USD Energy                                                                         - EUR Utilities
                                                                              – Issuers: Pemex, Casino,, Vonovia                                                   - EUR and US Telcos

                                                                              – GBP Senior Banks and Sub Insurance
                                                                              – USD and EUR Banking                                                                - EM Sovereign
         Q4 2019                                +1.3%                         – USD services, utilities, and healthcare                                            - EUR real estate
                                                                              – Single B/BB exposure in USD and EUR                                                - Global Rates
                                                                              – Issuers: RL Finance, Virgin Money, Santander UK, Nationwide

Source: Schroders, Barclays and Bloomberg as of December 31, 2019. Performance based on SCGCAIU LX, USD A Distributing share class of SISF Global Credit Income.

16
Schroder ISF Global Credit Income: Positioning
Flexible allocation across regions and credit quality is key

                    Investment grade                                                   High yield                                         Emerging markets
 40%                                35%                        10%                                                           10%
 35%                      33% 34%31%                                                    9%                                                                          9%        9%
               30%                                                                                                                                           8%
                                                               8%                            7%                                                   8%                     7%
 30%                                                                                                                         8%
        26% 26% 23%
 25%                                                                                                   6%                                    6%
                                                               6%    5%                           5%                         6%    6%
 20%                                                                                                                                    5%
                                                      13%12%              4% 3%
 15%                                          11% 12%          4%                 3%                        3% 3%            4%
                                                                                                                     3% 3%
 10%
  5%                                                           2%                                                            2%
  0%
                                                               0%                                                            0%
              USD                  EUR             GBP
                                                                          USD                EUR                 GBP                       IG                        HY
               Feb-20     Dec-19     Sep-19     Jun-19                      Feb-20     Dec-19     Sep-19    Jun-19                      Feb-20    Dec-19   Sep-19   Jun-19
  – BBB issuers offer attractive value compared to
                                                               – Against a stabilizing macro environment we
    single A and the BB portion of the market
                                                                 see some opportunities to rotate back into                  – Reducing exposure in EM IG post a strong
  – Prefer opportunities within senior banking,                  high yield                                                    rally
    healthcare, media and energy sectors
                                                               – Looking for opportunities to rotate into the US             – Attractive opportunities remain in HY
  – After the strong rally in GBP and USD we                     and have allocated some capital to single B                   sovereign and corporates
    have started to take some profits                            opportunities in Europe

Source: Schroders as of 28 February 2020.

17
Dynamic allocations based on best opportunities
More globally diversified than traditional US biased strategies
100

 80

 60                                                                                                                                                                                                                                                                      2016–2017: Positive macro backdrop/attractive valuations led to a
 40                                                                                                                                                                                                                                                                      more aggressive portfolio allocation across HY and EMD
 20

  0
                                                                                                                                                                                                                                                                         Early 2018: Concerns about US credit valuations and the impact of
                                             abr.-17

                                                       jun.-17

                                                                                           oct.-17

                                                                                                                                                                               oct.-18
                                                                       ago.-17

                                                                                                                                    abr.-18

                                                                                                                                                           jun.-18

                                                                                                                                                                     ago.-18

                                                                                                                                                                                                             abr.-19

                                                                                                                                                                                                                       jun.-19

                                                                                                                                                                                                                                           oct.-19
                                                                                                                                                                                                                                 ago.-19
      dic.-16

                                                                                                         dic.-17

                                                                                                                                                                                         dic.-18

                                                                                                                                                                                                                                                     dic.-19
                            feb.-17

                                                                                                                   feb.-18

                                                                                                                                                                                                   feb.-19

                                                                                                                                                                                                                                                               feb.-20
                                                                                                                                                                                                                                                                         higher funding costs on EMD markets led us to reduce US IG and
                                                                                                                                                                                                                                                                         EMD exposure
                DM North America                                                               DM Europe (ex UK)                                                      UK                                               DM Oceania/Asia
                EM Asia                                                                        EM Europe                                                              EM Latin America                                 EM Africa/Middle East

35                                                                                                                                                                   100                                                                                                 Mid 2018: EUR IG offered better value than the US. HY
30                                                                                                                                                                    90
                                                                                                                                                                      80                                                                                                 outperformance remained at odds with macro data
25                                                                                                                                                                    70
20                                                                                                                                                                    60
                                                                                                                                                                      50
15                                                                                                                                                                    40
10                                                                                                                                                                    30
                                                                                                                                                                      20
 5                                                                                                                                                                    10                                                                                                 Current: Prefer opportunities in IG and EM BB corporates.
 0                                                                                                                                                                     0                                                                                                 Remain senior in the capital structure within banks and retain
                                                                                                                                                                               abr.-17
                                                                                                                                                                                jun.-17

                                                                                                                                                                                oct.-17

                                                                                                                                                                                jun.-18

                                                                                                                                                                                oct.-18

                                                                                                                                                                                jun.-19

                                                                                                                                                                                oct.-19
                                                                                                                                                                               ago.-17

                                                                                                                                                                               abr.-18

                                                                                                                                                                               ago.-18

                                                                                                                                                                               abr.-19

                                                                                                                                                                               ago.-19
                                                                                                                                                                                dic.-16

                                                                                                                                                                                dic.-17

                                                                                                                                                                                dic.-18

                                                                                                                                                                                dic.-19
                                                                                                                                                                                feb.-17

                                                                                                                                                                                feb.-18

                                                                                                                                                                                feb.-19

                                                                                                                                                                                feb.-20
                                                                                                                                                                                                                                                                         preference for defensive sectors
                                                                                                     Gov Rel

                                                                                                                                              EM Gov-Rel
                                                         Fin Senior
                                      Non-Cyclicals
                Cyclicals

                                                                                 Fin Sub

                                                                                                                    EM Corporates

                                                                                                                                                                               DM IG               DM HY               EM IG               EM HY               NR
                                                                      Current

Source: Schroders as of 28 February 2020

18
Schroders Global Credit team
A truly global strategy requires a well resourced global team

                                                                            Credit Allocation Committee

                         Credit Strategist                                             Lead PMs                                  Quantitative Research

                                                                                      Patrick Vogel
                            Rajeev Shah                                                                                         Quantitative Research team
                                                                                     Julien Houdain

                                                                      Portfolio Management – Sub Portfolios
                                                   US             Pan European Investment                 US
     Pan European High Yield                                                                                          Emerging Markets                       ABS
                                                High Yield                Grade                    Investment Grade
                                             US High Yield team    Pan European IG team               US IG team         EM team                     Securitised team
      Pan European HY team
                                                 New York                London                        New York          New York                       New York

                                                                                  Credit Research

                          EMEA Research                                           Americas Research                                  Asia Research

                         Patrick McCullagh                                           David Knutson                                    Raymond Chia

                                                                                Over 40 Analysts Globally

                                                                                Sustainability Team

Source: Schroders, as at 28 February 2020.

19
Schroders credit platform
A common approach applied across credit strategies
                                                                                                                                                         AUM                 ESG
                                                       Benchmark                                                   Lead PM(s)                                    Inception                Sustainable
                                                                                                                                                    (millions)               Integrated
Benchmarked Strategies
EURO Corporate Bond                                    ICE BofAML1 Euro Corporate                                  Patrick Vogel                      €10,177    Jun 2000

EURO Credit Conviction                                 iBoxx Euro Corporate BBB                                    Patrick Vogel                       €2,131    Dec 2013

EURO High Yield                                        ICE BofAML Euro High Yield Constrained                      Peter Harvey                        €1,399    Nov 2012

Sterling Corporate Bond                                ICE BofAML Sterling Corporate and Collateralised            Jonathan Golan                        £676    Dec 2007

All Maturities Corporate Bond                          ICE BofAML Sterling Non-Gilt                                Alix Stewart                        £1,091    Feb 2001

Long Dated (+15 years) Corporate                       ICE BofAML 15+ Year Sterling Non-Gilt                       Alix Stewart                          £381    Jan 2001
Unconstrained Total Return Strategies
High Yield Opportunities                               Total Return                                                Daniel Pearson                        £510    Feb 2000

Strategic Credit                                       3-Month GBP LIBOR                                           Peter Harvey                        £2,379    Apr 2006

Strategic Bond                                         Total Return                                                Patrick Vogel                          £64    Mar 2012

Global Multi Credit                                    Ref2: Barclays Multiverse ex Treasury A+ to B- USD Hedged   Patrick Vogel / Julien Houdain        $462    Jun 2016

Global Credit Income                                   –                                                           Patrick Vogel / Julien Houdain      $3,883    Nov 2016

Global Credit Income Short Duration                    –                                                           Julien Houdain                         €55    Dec 2019
Absolute Return Strategies
EURO Credit Absolute Return                            3-Month EURIBOR                                             Patrick Vogel                        €457     Nov 2015
Sustainable Strategies
Sustainable EURO Credit                                ICE BofAML1 Euro Corporate                                  Saida Eggerstedt                       €27    Dec 2019

Source: Schroders as at 28 February 2020.
¹BofAML is Bank of America Merrill Lynch. ²Indicates that index is used for reference only.

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Schroder ISF Global Credit Income
Profile
                                         Global Credit Income

 Type                                    Unconstrained Credit Income

 Aim1                                    Attractive yield, drawdown risk actively managed

 Expected risk                           Circa 3–5% volatility, Maximum VaR:
Important information
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 (Europe) 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.

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www.schroders.com/en/privacy-policy or on request should you not have access to this webpage.

Forecast warning

The forecasts stated in the presentation are the result of statistical modelling, based on a number of assumptions. Forecasts are subject to a high level of uncertainty regarding future economic and
market factors that may affect actual future performance. The forecasts are provided to you for information purposes as at today’s date. Our assumptions may change materially with changes in
underlying assumptions that may occur, among other things, as economic and market conditions change. We assume no obligation to provide you with updates or changes to this data as assumptions,
economic and market conditions, models or other matters change.

Issued in February 2020 by Schroder Investment Management Limited, 1 London Wall Place, EC2Y 5AU. Registration No 1893220 England. Authorised and regulated by the Financial Conduct
Authority. For your security, communications may be taped or monitored.

Sustainability accreditation

Our Schroders sustainability accreditation helps investors distinguish how ESG factors are considered across our products. The fund has been awarded an Integrated accreditation. ESG factors are
embedded into the investment process and can be clearly evidenced. There is a strong commitment to stewardship and company engagement. For further information about our Schroders sustainability
accreditation please visit www.schroders.lu/sustainabilityaccreditation.

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Contact
Schroder Investment Management Limited,
1 London Wall Place, EC2Y 5AU, London.

schroders.com
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