Schroder ISF Global Gold - Schroders Investment Conference
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Schroder ISF Global Gold¹ Schroders Investment Conference 19–23 October Mark Lacey | James Luke Marketing material for professional Portfolio Managers investors or advisers only. Data as at end September 2020 unless otherwise stated. ¹Schroder International Selection Fund Global Gold is referred to as Schroder ISF Global Gold throughout this presentation.
Gold
The way to think about the gold outlook
The commodity case – ok The monetary case – very good
– Supply is highly price in-elastic. If prices rise, mine supply will The ‘monetary’ case for gold allocations is very strong from
grow slowly. If prices fall or even stay around current levels, two key angles:
we expect supply to fall in the mid-term – Firstly, the global economy is stuck in a severe debt trap which
has been worsened by COVID. Extrication from this trap will test
– On the commodity demand side, the case is arguably slightly
Central Bank credibility to the limit. A new paradigm of
weaker; a repeat of the EM jewellery demand boom between
co-ordinated monetary and fiscal policy will drive real interest
the late 1990s and 2005/2006 is unlikely. Industrial demand
rates deeply negative as inflation returns. We see gold as the
growth is also limited
ultimate hedge against both Central Bank credibility and
inflation (which will drive deeply negative real rates)
– Secondly, the case for the U.S. dollar is structurally quite weak
because the likelihood of much larger US deficits, and a
questioning of dollar reserve status, is quite high. Dollar/gold
inverse correlations are high historically
Source: Schroders.
2Gold – what drives the gold price? Monetary demand.
What drives monetary demand? In the current era we believe real interest rates are the
dominant driver of monetary demand
2,500
Gold price base case ‘The end of normalisation’? Late 2018 onwards.
target range as we Real rate relationship strong, but prices at higher
move into 2021… levels as macro policy uncertainty extreme.
2,000 2000–2008 Global boom: EM,
commodities, ‘risk-on’. Real rate
relationship all over the place.
1,500
R² = 0.9435
1,000 From 2008 through to
2013 taper tantrum and
Fed ‘normalisation’ period.
R² = 0.7983
500
R² = 0.1596
0
-3 -2 -1 0 1 2 3 4 5
2000-2008 2008-2018 September 2018 - 20-Sep-20 Linear (2000-2008) Linear (2008-2018) Linear (September 2018 -)
Source: Macquarie, Schroders – September 2020.
3Gold – can real rates go lower? Yes!
Covid crisis is accelerating a structural macro paradigm shift (which was likely anyway)
Zero interest rates + higher inflation = Gold prices plotted against real interest rates
more deeply negative real rates
With monetary policy exhausted and record global debt, we are likely 2,600 -4
entering an era of co-ordinated monetary and fiscal policy. In essence
Modern Monetary Theory (MMT) in all but name. -3
2,100
Interest rates will stay ultra low: -2
– Federal Reserve has promised 'unlimited' treasury bond purchases
-1
– Very high global debt (leverage) means higher nominal rates are 1,600
problematic
0
Inflation is likely to return: 1,100
1
– Multi trillion dollar fiscal expansion including direct helicopter money
to households and firms 2
600
– CB tolerance of higher inflation, de-globalisation, huge growth in
money supply 3
100 4
This is now the defining question for investors: Will Central Banks and
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
governments be able to generate inflation in the next few years. Aided by
‘de-globalisation’, we think the answer is yes. XAU Currency US 5 Year TIPS (rhs)
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.
Source: Bloomberg; Schroders – 25 September 2020.
4Gold – entering an inflationary era
40 years of disinflation now over?
Us excess liquidity (M1-IP) vs. US CPI (yoy) What will define the coming inflationary era?
12 60
10 50
8 40
6 30
4 20
2 10
0 0
-2 -10
-4 -20
1982 1986 1990 1994 1998 2002 2006 2010 2014 2018 2022
US CPI YOY LHS US Excess Liquidity (Advanced 18 months)
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.
Source: Bloomberg; Schroders – 31 August 2020.
5Gold – far from overbought on a relative basis
Gold holdings as a share of global financial assets could increase materially
Above ground gold stocks as a share of total financial assets Gold ETFs as a % of all ETF assets
12% 12%
10% 10%
8% 8%
6% 6%
4% 4%
2% 2%
0% 0%
2006
2008
2010
2012
2014
2016
2018
2020
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
2025
2030
Source: World Gold Council, Schroders – September 2020.
6Gold equities – significant margin expansion
Strong monetary demand is driving gold prices well above product costs
Current spot prices vs. 90th percentile C1 global industry cash costs
140%
120%
100%
80%
60%
40%
20%
0%
-20%
Aluminium Nickel Zinc Copper Gold
Source: Wood MacKenzie; Schroders – September 2020.
7Gold equities
Record ‘all in cost’ (AIC) margins and therefore record free cash flow
North American producer AIC margins Cumulative producer free cash flow by period
US$/Oz US$bn Gold Bugs Index
400 50
350 40
300 30
20
250
10
200
0
150
-10
100
-20
50
-30
0 -40
-50 -50
-100 -60
2005A
2006A
2007A
2008A
2009A
2010A
2011A
2012A
2013A
2014A
2015A
2016A
2017A
2018A
2019A
2020E
2002-2005 2005-2015 2015-2018 2018-2021e
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.
Source: Bloomberg; Schroders – August 2020.
8Gold Equities
Very rapid aggregate balance sheet deleveraging
Total net debt for the NYSE ARCA Gold Bugs Index Net debt/trailing 12m EBITDA (x) for the NYSE ARCA
US$bn Gold Bugs Index
70 14
60
12
50
10
40
8
30
20 6
10
4
0
2
-10
0
-20
-30 -2
2020e
2021e
2022e
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020e
2021e
2022e
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Bloomberg – September 2020.
9Gold equities
Valuations and underlying returns have significantly improved
Gold bugs index FCF yields plotted against price/book Gold bugs index return on equity plotted against
valuation (historic and forecast) EV/EBITDA valuation (historic and forecast)
Free cash yield Return on equity
8% 20%
2020 and 2021 current
6% 15%
2020 and 2021 current 2006
2016 10% 2010
4%
2020 and 2021 (January) 2011
2015 5% 2012
2% 2011 2002 2020 and 2003 2004
2019 2017 2008
2010 2021
0% 2016 2007
2018 2003 (January) 2009
0% 2019 2005
2014 2002
-5%
2017 2004 2018
-2% 2012 2005
2006 2014
2009 2007 -10%
-4%
-15%
2013 2015
-6% 2013
2008 -20%
-8% -25%
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5 10 15 20 25
Price/book EV/EBITDA multiple
Source: Bloomberg; Schroders – August 2020.
10Gold equities
Despite the positives, gold equities have barely begun to outperform gold bullion
Gold spot prices plotted against the FTSE Gold miners index (shown as a ratio)
6 6
Early boom period Lost decade Treading water Renaissance
2000–2005 2005–2015 2015–2019 2019–????
Gold equity outperformance: +80% Gold equity outperformance: -70% Gold equity Gold equity outperformance: ??
5 Absolute return: +250% Absolute return: -75% outperformance: +38% Absolute return: ??
5
Absolute return: +75%
4 4
?
3 3
2 2
1 1
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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.
Source: Bloomberg – September 2020. For illustrative purposes only and should not be viewed as a recommendation to buy or sell gold equities.
11Commodities strategy update
Case study: Schroder ISF Global Gold
Net cumulative total returns in USD since inception Net relative performance and flows vs. ETFs
From inception 29 June 2016 to 30 September 2020 Data as at 30 September 2020
60%
Fund net US$ 1 year
US$
relative Cumulative
AUM
performance⁴ Flows⁵
Schroder ISF Global Gold
55% vs. +7.30% $528m +$14m
Benchmark = FTSE Gold Miners
iShares Gold Producers ETF
50% vs.
Benchmark = S&P Gold Producers -3.78% $2,838m +$568m
VanEck Gold Miners ETFs
vs. -1.53% $17,627m +$1,242m
45% Benchmark = NYSE Arca Gold
Blackrock World Gold
vs. -3.78% $10,089mᶟ +$815m
Benchmark = FTSE Gold Miners
40%
SISF Global Gold¹ iShares Gold Miners VanEck Gold Miners Blackrock World Gold³
Fund/ETF¹ Benchmark²
Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get the amount originally invested.
Source: Schroders. Bloomberg – 30 September 2020. ¹Based on Schroder ISF Global Gold C NAV Net. YTD net flows to end July. ²Benchmark = FTSE World Gold Mines TR Index. ³Combined AUM of Blackrock
World Gold + Gold & General funds. ⁴From inception 29 June 2016. ⁵31 August 2020.
12Gold equities
Elevated margins and clean balance sheets will allow increases in distributions
Excess Cash accumulation at North American Gold Producers Implied North American sector average 2021 dividend yields
under various gold price assumptions (%) under different gold price assumptions and under varying
(US$bn) pay-out ratios
40 7%
35 6%
30
5%
25
4%
20
3%
15
2%
10
5 1%
0 0%
2020 2021 2022 50% 75% 100%
US$1,500/Oz US$1,750/Oz US$2,000/Oz US$1,500/Oz US$1,750/Oz US$2,000/Oz
Source: Scotia, Schroders – September 2020.
13Appendix
James Luke
Fund Manager, Precious Metals
and Commodities
– Co-fund manager of Schroder ISF Global Gold
– Senior fund manager of Schroders Commodities Strategy
– Formerly Co-Head of Metals Research at JP Morgan
Schroder ISF –
–
Investment career commenced in 2005 at Williams De Broe
Previously Metals Research Analyst at UBS (London), Sanford C
Global Gold –
Bernstein (London) and China International Corporation (Beijing)
Joined Schroders in August 2014
Investment Team Mark Lacey
Fund Manager,
Head of Resource Equities
– Head of Schroders Resource Equities
– Co-fund manager of Schroder ISF Global Gold
– Fund manager of Schroder ISF Global Energy Transition
– Fund manager of Schroder ISF Global Energy
– Formerly portfolio manager of Investec Global Energy funds
– Formerly Head of Global Energy at Goldman Sachs
– Was previously ranked as no. 1 energy investment specialist in
Thompson Extel survey
– Career commenced in 1996 at Credit Suisse Asset Management,
managing gold and resources funds
Source: Schroders.
15Schroder ISF Global Gold
Investment process and portfolio construction
Global Gold Schroder ISF
Focus list
universe Global Gold
~90 stocks
~140 stocks 30–40 stocks
– Minimum of 20% of daily – Detailed financial models – High conviction portfolio
volumes over five days to fill – Live valuations for focus list – Global reach
– Fair value upside ranked – Unconstrained approach
– No shorting or leverage
– Maximum cash 40%
Best investment ideas are identified by adopting a long-term perspective, and by using proprietary
fundamental research to identify the intrinsic value of each company
Source: Schroders.
16Schroder ISF Global Gold
Equity selection: focus on core overweights, augmented with overlays
Core overweights
Free Cash Flow (FCF) inflections ‒ Quality disciplined management M&A beneficiaries
‒ Typically companies who have come through ‒ Conservative balance sheets ‒ Current major gold sector thematic
significant capital investment programmes ‒ Strong cash generation ‒ Favour companies with distressed
‒ Impending transition to FCF generation to ‒ Clear NPV upside valuations but quality underlying assets
drive returns, balance sheet inflection and which fit better in larger portfolio
‒ Trading at low end of historical valuation range
equity re-rating ‒ Companies in regions where consolidation
‒ Strong ESG footprint
‒ Strong technical and project de-risking could introduce economies of scale and
capabilities ‒ Examples: Oceana Gold (previous), Pan American G&A reductions
Silver (current)
‒ Examples: Alacer (current overweight) and ‒ Examples: Beadell (previous overweight)
Saracen (previous overweight) and TMAC (current overweight)
‒ Note: appropriate sizing a necessity given
execution risk Macro overlay
On occasion, in consultation with our EMD colleagues, or our underlying commodity view,
the fund has and may in the future utilise:
‒ Physical precious metal holdings
‒ EM currency hedges
‒ Broad equity market puts
‒ Use of cash to increase portfolio defensiveness
The securities mentioned are for illustrative purposes only and not a recommendation to buy/sell.
Source: Schroders.
17Schroder ISF Global Gold
Performance since inception¹ to 30 September 2020
Cumulative total return²
110
90
70
50
30
10
-10
-30
-50
Jun 2016 Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
Schroder ISF Global Gold FTSE Gold
YTD Since Annualised Excess Excess Treynor
Sep 2020 2019 2018 2017 20161 Beta TE
2020 inception1 vol. Sharpe Sortino ratio
Schroder ISF Global Gold -6.66 36.80 51.09 -13.90 11.28 -17.21 12.32 32.90 0.07 0.14 0.96 10.56 11.44
FTSE Gold Mines TR -6.72 37.87 42.68 -10.04 10.23 -23.13 9.98 32.53
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.
Source: Bloomberg; Schroders – 30 September 2020. ¹Since inception 29 June 2016. ²USD I Shares Gross of fees.
18Schroder ISF Global Gold
Performance since inception
Schroder ISF Global Gold performance
Performance relative to FTSE Gold Mines TR USD benchmark and other gold funds
80
70
60
50
40
30
20
10
0
-10
-20
-30
-40
-50
Jun 2016 Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020
Schroder ISF Global Gold Blackrock Investec Global Strategy Franklin Gold and Precious GDX US Equity FTSE Gold Index
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.
Source: Schroders; Bloomberg – 30 September 2020. USD C shares net.
19Schroder ISF Global Gold Performance in US$ – MIFID II disclaimer US$ % 2015 20161 2017 2018 2019 Fund2 - - 10.2 -14.8 49.6 FTSE Gold Mines TR - - 10.2 -10.0 42.7 Risk considerations Liquidity risk: 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. Operational risk: operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund. Currency risk: the fund may lose value as a result of movements in foreign exchange rates. Derivatives risk – efficient portfolio management: derivatives may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund. Emerging Markets & Frontier risk: emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets. Counterparty risk: the fund may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole. Higher volatility risk: the price of this fund may be volatile as it may take higher risks in search of higher rewards. Performance risk: investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve. IBOR: the transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments. This may impact the investment performance of the fund. 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. Source: Bloomberg; Schroders – 31 December 2019. 1Inception 29 June 2016. 2Schroder ISF Global Gold US$ C shares net NAV to NAV. 20
Gold – paradigm shifts can trigger huge gold price moves
Comparing recent bull markets
Spot gold, index = 100
300
250
200
150
100
50
0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500
2004–2008 2008–2012 2018–
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.
Source: Bloomberg; Schroders – 16 September 2020.
21Gold – what drives the gold price?
Recent evidence is clear: monetary demand drives the gold price
Bear market – 2011–2015 Early stage bull market – 2016–2019 Covid acceleration – Q1 2020–
Change in demand (Koz) Change in demand (Koz) Change in demand (Koz)
400 500 400
300 400
300
200 300
200
100 200
0 100 100
-100 0 0
-200 -100
-100
-300 -200
-200
-400 -300
-500 -400 -300
Monetary Commodity Total gold Change in Monetary Commodity Total gold Change in Monetary Commodity Total gold Change in
demand demand demand average gold demand demand demand average gold demand demand demand average gold
price price price
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.
Source: Bloomberg; Schroders – June 2020.
22Gold – what drives monetary demand? Primarily real rates
5-year real yield vs. gold investment demand
2,000 -1.0
1,800
-0.5
1,600
0.0
1,400
0.5
1,200
1.0
1,000
800 1.5
2013 2014 2015 2016 2017 2018 2019 2020
North American Gold ETF Holdings (Metric Tonnes, LHS) US 10 Year Real Yield - (%, inverted, RHS)
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.
Source: Bloomberg; Schroders – July 2020.
23Gold – the monetary case
Gold: core beneficiary of weaker US growth and a weaker US$
US economy accumulating imbalances – trade weighted US dollar vs. US twin deficit
140 0
Sharp deterioration to
130 -7.5% well before -2
COVID-19
120 -4
110
-6
100
-8
90
-10
80 ?
-12
70
-14
60
50 -16
40 -18
30 -20
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021
US trade weighted dollar (LHS) Twin deficit (fiscal + c/a % GDP)
Source: Bloomberg; Schroders – 31 August 2020.
24Gold – what drives monetary demand?
Central Bank gold purchases are more driven by currency concerns
Central Bank gold purchases (metric tonnes)
Justifications given by Central Banks for recent increased
800
gold purchases:
600
De-dollarisation (Turkey)
400 FX diversification (India)
200 ‘An asset that is nobody else's liability’ (Hungary)
0
“Gold is the perfect piggy bank – it’s the anchor
-200
of trust for the financial system. If the system
-400
collapses, the gold stock can serve as a basis
to build it up again”
-600
Dutch Central Bank, May 2019
-800
1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015 2019
Source: World Gold Council, Schroders – December 2019.
25Silver – lots of room to play catch up
Silver has hugely underperformed
Spot precious metals prices
2,500 55
50
2,000 45
Hunt brothers’ squeeze
40
35
1,500
30
25
1,000
20
15
500 10
5
0 0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
Gold (lhs) Silver
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.
Source: Macquarie, Bloomberg, Schroders – October 2020.
26What gold equities need to do to continue to outperform gold
Deliver – capture margin to generate positive returns on capital
Factors in management control:
Financial discipline and returns focus
Maximise existing assets via brownfield reserve growth (exploration success)
Avoid value destructive M&A
Embrace ESG
Avoid egregious non-aligned management compensation
Accurately and fully report costs to avoid un-realistic stakeholder cash flow expectations
Factors (broadly) outside management control:
Positive gold price environment
Limited commodity input inflation (energy and consumables)
Limited Producer FX
Jurisdictional risks
Geology (grade, depth)
Source: Schroders. The opinions stated in this presentation are those of the Schroder investment team and are subject to change.
27Gold equities
Equity valuations and underlying returns have significantly improved
Gold bugs index FCF yields plotted against price/book Gold bugs index return on equity plotted against
valuation (historic and forecast) EV/EBITDA valuation (historic and forecast)
Free cash yield Return on equity
8% 20%
2020 and 2021 current
6% 15% 2020 and 2021 current
2006
2016 10% 2010
4%
2020 and 2021 (January) 2011
2015 5% 2012
2% 2011 2002 2020 and
2019 2017 2008 2003 2004
2010 0%
2021 2016
2018 2003 (January) 2007
0% 2009 2005
2014 2019
-5% 2002
2017 2004 2018
-2% 2012 2005
2006 2014
2009 2007 -10%
-4%
-15%
2013 2015
-6% 2013
2008 -20%
-8% -25%
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5 10 15 20 25
Price/book EV/EBITDA multiple
Source: Bloomberg; Schroders – August 2020.
28Gold equities
On average producers are discounting gold prices well below spot
Gold equity NAV upside under different South African gold equity index (Jgold) Australian gold equity index (ASX Gold)
long-term gold price scenarios¹ vs. ZAR gold price vs. AUD gold price
200% 35,000 10,000 2,800
4,800
175% 9,000 2,600
30,000
4,200
150% 8,000 2,400
25,000
3,600
125% 7,000 2,200
20,000 3,000
100% 6,000 2,000
2,400
75% 15,000 5,000 1,800
50% 1,800 4,000 1,600
10,000
25% 1,200 3,000 1,400
5,000
0% 600 2,000 1,200
-25% 0 0 1,000 1,000
SA Gold Co's AUS Gold US Gold Co's CAD Gold Gold Price Jan 2013 Jan 2015 Jan 2017 Jan 2019 Jan 2021 Jan 2013 Jan 2015 Jan 2017 Jan 2019 Jan 2021
Cos Co's
NAV @ $1500/oz NAV @ $1700/oz NAV @ $1900/oz ZAR Gold Price (LHS) SA Gold Company Index (RHS) Australian gold equity Index AUD Gold Price
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.
Source: Bloomberg/Schroders Estimates – June 2020. ¹Assumes full margin accretion.
29Important information (1 of 2) – European audience Schroder ISF 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. The authors have expressed their own views and opinions in this presentation and these may change. Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our Privacy Policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage. United Kingdom: Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our Privacy Policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage. Issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered Number 1893220 England. Authorised and regulated by the Financial Conduct Authority. European Union/European Economic Area: this presentation is issued by Schroder Investment Management (Europe) S.A., 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. Registered No. B 37.799. For your security, communications may be taped or monitored. France: the Company is created under Luxembourg law and is complying with the Directive 2009/65/CE (UCITS). The Company and some of its compartment have been authorised for distribution in France by the AMF. 30
Important information (2 of 2) – European audience
Austria: Further fund-specific information can be obtained from the key investor information in the current version and the current Sales Prospectus, which are available free of charge in
paper form in German from the Austrian Paying Agent (Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Vienna, Austria) and in German from Schroder Investment Management
(Europe) S.A., German Branch, Taunustor 1, D-60310 Frankfurt am Main [information agent only]). In addition, a current version of the key investor information is available at
www.schroders.at. Investments in the Company are associated with risks that are described in more detail in the key investor information and the Sales Prospectus.
Germany: Further fund-specific information can be obtained from the key investor information in the current version and the current Sales Prospectus, which are available free of charge in
paper form in German from the Paying and Information Agents in Germany (UBS Deutschland AG, OpernTurm, Bockenheimer Landstraße 2–4, D-60306 Frankfurt am Main and Schroder
Investment Management (Europe) S.A., German Branch, Taunustor 1, D-60310 Frankfurt am Main [information agent only]). In addition, a current version of the key investor information is
available at www.schroders.de. Investments in the Company are associated with risks that are described in more detail in the key investor information and the Sales Prospectus.
Poland: Subscriptions for the Company's shares may be made only on the basis of the latest available prospectus and key investor information document (KIID) and the latest audited
annual report (and subsequent unaudited half-yearly report, if published), copies of which may be obtained free of charge from the law firm Wierzbowski Eversheds Sutherland Sp. k.,
Centrum Jasna, ul. Jasna 14/16a, 00–141 Warsaw, Poland and from Schroder Investment Management (Europe) S.A.
The Company is a Luxembourg registered undertaking for collective investment in transferable securities recognised in the United Kingdom and operates in Poland pursuant to the Act
of 27 May 2004 on Investment Funds and Alternative Investment Fund Management (Journal of Laws of 2004, No. 146, item 1546, as amended).
The investor may, depending on the applicable tax obligations, be required to pay tax directly charged on income resulting from investments in fund units. An investment in the Company
involves risks which are fully described in the prospectus.
Greece: UCITS funds do not have a guaranteed performance and previous performance does not guarantee the future performance. OI OΣΕΚΑ ΔΕΝ ΕΧΟΥΝ ΕΓΓΥΗΜΕΝΗ ΑΠΟΔΟΣΗ ΚΑΙ ΟΙ
ΠΡΟΗΓΟΥΜΕΝΕΣ ΑΠΟΔΟΣΕΙΣ ΔΕΝ ΔΙΑΣΦΑΛΙΖΟΥΝ ΤΙΣ ΜΕΛΛΟΝΤΙΚΕΣ.
Switzerland: The Schroder International Selection Fund ('Company') is an open-ended investment company organised as a 'société anonyme' under the laws of the Grand Duchy of
Luxembourg and qualifies as a Société d’Investissement à Capital Variable ('SICAV'). The prospectus and the key investor information document(s) for Switzerland, the articles of association,
the annual and semi-annual reports can be obtained, free of charge, at the offices of the Swiss representative, Schroder Investment Management (Switzerland) AG, Central 2, CH-8001
Zurich and the Swiss paying agent, Schroder & Co. Bank AG, Central 2, CH-8001 Zurich, both authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA.
Please note not all funds are registered in all jurisdictions
For Russian Qualified Investors only: None of the sub-funds mentioned in the conference agenda are registered in Russia
31Important information (1 of 1) – Singapore audience The information in this presentation (the ‘Presentation’) is only for institutional investors based in Singapore. Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments. Derivatives carry a high degree of risk and should only be considered by sophisticated investors. Investors may wish to seek advice from a financial adviser before purchasing units of any Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider whether the Fund in question is suitable for him. Investors should read the prospectus, available from Schroder Investment Management (Singapore) Ltd or its distributors, before deciding to subscribe for or purchase units in any Fund. Funds may carry a sales charge of up to 5%. This Presentation has not been reviewed by the Monetary Authority of Singapore. Schroder Investment Management (Singapore) Ltd 138 Market Street #23–01 CapitaGreen Singapore 048946 Telephone: +65 6534 4288 Fax: +65 6536 6626 Registration No.: 199201080H 32
Important information (1 of 1) – US Offshore and Bermuda Schroders has expressed its own views and opinions in this presentation and these may change. 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. Forecast warning The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any errors of fact or opinion and assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts and assumptions that may be affected by external economic or other factors. 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. Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our privacy policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage. Issued 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. 33
Important information (1 of 1) – Israel audience
Note regarding the Marketing material for Qualified Clients or Sophisticated Investors only.
This communication has been prepared by certain personnel of Schroder Investment Management (Europe) S.A (Registered No. B 37.799) or its subsidiaries or affiliates (collectively, "SIM").
Such personnel are not licensed by the Israeli Securities Authority. Such personnel may provide investment marketing, to the extent permitted and in accordance with the Regulation of
Investment Advice, Investment Marketing and Investment Portfolio Management Law, 1995 (the "Investment Advice Law"). This communication is directed at persons (i) who are
Sophisticated Investors (ii) Qualified Clients ("Lakoach Kashir") as such term is defined in the Investment Advice Law; and (iii) other persons to whom it may otherwise lawfully be
communicated. No other person should act on the contents or access the products or transactions discussed in this communication. In particular, this communication is not intended for
retail clients and SIM will not make such products or transactions available to retail clients.
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