Schroder ISF Global Credit Income aims to deliver a stable stream of income in all market environments by investing dynamically across the global bond

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1 Important Information: 1. The fund invests primarily in fixed and floating rate securities issued by governments and companies worldwide. 2. For share classes with a general dividend policy, expenses will be paid out of capital rather than out of gross income. The amount of distributable income therefore increases and the amount so increased may be considered to be dividend paid out of capital. Share classes with a fixed dividend policy may pay out both income and capital in distributions. Where distributions are paid out of capital, this amounts to a return or withdrawal of part of your original investment or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares. 3. The fund invests in debt securities which may be subject to credit and counterparty risk, interest rate risks, credit ratings risk, credit downgrading risk, liquidity and volatility risk and valuation risk. The fund may invest in unrated and noninvestment grade securities which are exposed to greater credit risks. 4. Investment in sovereign debt obligations issued or guaranteed by governments or their agencies of certain developing countries and certain developed countries may expose the fund to political, social and economic risks. The fund may suffer significant losses upon defaults by government entities. 5. The fund may invest in emerging markets which are subject to political and economic, legal and regulatory, market and settlement, execution and counterparty and currency risks. 6. The fund may use derivatives to meet its specific investment objective. Derivative exposures may involve credit risk and counterparty risk, liquidity risk, valuation risk, volatility risk, overthecounter transaction risks and hedging risk. In adverse situations, the use of hedging instruments may become ineffective in hedging and the fund may suffer significant losses. You should not make any investment decision solely based on this document. Please read the relevant offering document carefully for further fund details including risk factors. Schroder ISF Global Credit Income Blending the right mix for changing investment climates 30 November, 2018

2 Schroder ISF Global Credit Income aims to deliver a stable stream of income in all market environments by investing dynamically across the global bond market. The fund also focuses on managing risk to mitigate volatility. Why invest in the Schroder ISF Global Credit Income? Fixed payout of 4.5% p.a (Applicable to A Dis USD and HKD classes. Dividend may be paid out of capital pay attention to important information 2 )^ Bonds are popular investments for people seeking income. While interest rates are still at low levels, by investing across the global bond market, the fund can combine various types of bonds to provide a relatively attractive level of income with a sensible balance of risks. The fund s primary objective is to maintain sustainable and attractive distribution payments, and intends to make a fixed payout of 4.5% per annum^. 4.5 Flexibility in investing across a wide range of bonds and credits Managed with a benchmarkunconstrained approach, the fund is not tied down to an index and therefore not limited to what bonds it can invest in. Bonds of different types and regions offer different levels of potential return. We can invest across the global bond market wherever we find attractive income opportunities. We aim to deliver a consistent and attractive level of income in all market environments by investing freely across the global bond spectrum, including investment grade, high yield, and emerging market sovereign and municipal bonds, assetbacked securities, and so on. Having a broad investment universe also helps us diversify risk effectively. Municipal Investment Grade Assetbacked Securities Tapping into a world of bond opportunities Types of Bonds & Credits Emerging Markets High Yield Developed Markets Mortgagebacked Securities Rigorous risk management to mitigate volatility We recognise that investors seeking income can be more sensitive to capital loss. Dynamic asset allocation informed by scenario correlation analysis allows the fund to reduce risk during market downturns by building a welldiversified bond portfolio. Detailed drawdown risk analysis as well as risk management on currency and interest rates are incorporated with an aim to help the fund mitigate potential loss and volatility relative to the global credit market. Detailed drawdown risk analysis Risk management on currency and interest rates Mitigate potential loss and volatility relative to the global credit market 1

3 Schroder ISF Global Credit Income Fund features A Distribution share class offers a fixed payout^ (for details refer to the table below) Flexible allocation across a broad range of bonds and credits to adapt to different market environments Active risk management to mitigate volatility Available share classes and distribution policy & frequency Share classes A Dis USD A Dis HKD A Dis GBP Hedged A Dis RMB Hedged LU SCGAIRH LX A Dis EUR Hedged A Acc USD ISIN code Bloomberg ticker LU SCGCAIU LX LU SCGCAIH LX LU SCGAIGH LX LU SCGAIEH LX LU SCGCAAU LX N/A Distribution policy A Dis AUD Hedged LU SCGAIAH LX Variable Distribution frequency Fixed, 4.5% p.a. Monthly Fixed, 4.5% p.a. Monthly Fixed, 4.0% p.a. Monthly Variable A Acc EUR Hedged LU SCGAAEH LX N/A Monthly Monthly Fixed, 3.5% p.a. Quarterly N/A N/A Top holdings Spain Government Bond 0.35% 30/07/ Eurofins Scientific 3.375% 30/01/ Banco de Sabadell 1.625% 07/03/ Zimmer Biomet Holdings 1.414% 13/12/ Akelius Residential Property 3.875% 05/10/ Western Power Distribution 3.5% 16/10/ Blackstone Property Partners Europe 2.2% 24/07/ ING Groep 2.5% 15/11/ Heathrow Finance 4.75% 01/03/ mbank 1.058% 05/09/ Fund performance Cumulative performance (%) Fund YTD 1.7 3mth 1.2 1Yr 1.3 3Yrs N/A 5Yrs N/A Weights (%) Since Launch 7.2 Dividend distribution record^ Share classes A Dis USD A Dis HKD A Dis GBP Hedged A Dis AUD Hedged A Dis RMB Hedged A Dis EUR Hedged Distribution per share Price on record date Last record date Upcoming distribution record date of distribution share classes 19/12/ /11/ /11/ /11/ /11/ /11/ /09/2018 Annual return (%) Fund Key Information Fund objective NAV per share (class A Acc) The Fund aims to provide income and capital growth by investing in fixed and floating rate securities issued by governments and companies worldwide. The Fund aims to mitigate losses in falling markets. The mitigation of losses cannot be guaranteed. USD # 1.1 Note: The distribution record date may subject to change. Geographical breakdown Rating breakdown United Kingdom United States Spain France Germany Netherlands Luxembourg Italy Others Cash & Cash Equivalents AAA AA A BBB BB B CCC+ NR Weights (%) Weights (%) Hi/Lo (past 12 mths, class A Acc) Fund manager Launch date Fund size (million) Initial charge up to (class A) Management fee (class A) Dealing frequency Financial year end USD / Patrick Vogel & Team 30/11/2016 USD % 1.1% p.a. Daily 31/12 The fund offers an investment choice for investors who wish to enjoy a fixed payout^ look for active asset management that aims to maximise yield over an economic cycle are positive on the potential growth around the world Note: Investors should consider your own investment objective and risk tolerance level and seek independent professional advice. Schroder International Selection Fund is referred to as Schroder ISF. ^ The manager will make distributions in respect of distribution units. The manager has the sole and absolute discretion to vary the rate and/or frequency of distributions, subject to one month s prior notice to the relevant unitholders. Distribution yield is not indicative of the return of the fund. Distributions may be paid from capital of the fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units. For details of the distribution policy and frequency of all share classes, please refer to the Distribution Policy & Frequency table. All fund information as at 30/11/2018. Source: Schroders. Fund performance based on Class A Acc; NAVNAV in USD with net income reinvested. The fund size quoted includes all classes of the fund. # Performance is calculated from the fund s since launch date 30/11/2016. Investment involves risks. Past performance is not indicative of future performance. Please refer to the relevant offering documents for fund details including risk factors. This material, including the website, is issued by Schroder Investment Management (Hong Kong) Limited and has not been reviewed by the SFC. Management Company: Schroder Investment Management (Europe) S.A., 5, rue Höhenhof, L1736 Senningerberg, Grand Duchy of Luxembourg Supervisory Authority: Commission de Surveillance du Secteur Financier, 110, route d Arlon, L2991 Luxembourg 2

4 Schroder ISF Global Credit Income A Acc 施羅德環球基金系列 環球收息債券 A 類股份累積單位 As at 截至 30/11/2018 Important Information 重要事項 The fund invests primarily in fixed and floating rate securities issued by governments and companies worldwide. For share classes with a general dividend policy, expenses will be paid out of capital rather than out of gross income. The amount of distributable income therefore increases and the amount so increased may be considered to be dividend paid out of capital. Share classes with a fixed dividend policy may pay out both income and capital in distributions. Where distributions are paid out of capital, this amounts to a return or withdrawal of part of your original investment or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares. The fund invests in debt securities which may be subject to credit and counterparty risk, interest rate risks, credit ratings risk, credit downgrading risk, liquidity and volatility risk and valuation risk. The fund may invest in unrated and noninvestment grade securities which are exposed to greater credit risks. Investment in sovereign debt obligations issued or guaranteed by governments or their agencies of certain developing countries and certain developed countries may expose the fund to political, social and economic risks. The fund may suffer significant losses upon defaults by government entities. The fund may invest in emerging markets which are subject to political and economic, legal and regulatory, market and settlement, execution and counterparty and currency risks. The fund may use derivatives to meet its specific investment objective. Derivative exposures may involve credit risk and counterparty risk, liquidity risk, valuation risk, volatility risk, overthecounter transaction risks and hedging risk. In adverse situations, the use of hedging instruments may become ineffective in hedging and the fund may suffer significant losses. You should not make any investment decision solely based on this document. Please read the relevant offering document carefully for further fund details including risk factors. 基金主要投資於全球各地政府及公司發行的定息和浮息證券 一般股息政策的股份類別, 支出將從資本而並非總收入中支付, 可分派收入因此增加, 而增加的部份可被視為從資本中支付的股息 定息政策的股份類別, 其股息可能同時由收入及資本中支付 從資本中支付的派息相當於從閣下原本投資的金額中, 或從該等金額賺取的資本收益中退回或提取部份款項, 可能導致每股資產淨值即時下跌 基金投資於債務證券或會承受信貸和對手方風險 利率風險 信貸評級風險 信貸評級被降低的風險 流動性和波動性風險及估值風險 基金可投資於未獲評級和不具投資級別的證券而承受較大的信貸風險 基金投資於若干發展中國家和已發展國家的政府或其代理發行或保證的主權債務可能承受政治 社會及經濟風險 當政府機構對其主權債務違約, 基金可能在該等事件中蒙受重大損失 基金可投資於新興市場而須承受政治和經濟 法律及監管 市場及結算 執行及交易對手方及貨幣風險 基金可投資於金融衍生工具以達致特定投資目標 運用金融衍生工具的風險包括信貸風險和對手方風險 流動性風險 估值風險 波動性風險 場外交易市場交易風險及對沖風險 在不利的情況下, 基金使用的對沖工具可能無效, 並可能因而蒙受重大虧損 閣下不應僅倚賴本文件而作出任何投資決定 請詳閱有關銷售文件以得悉基金之詳情包括風險因素 Investment Objective 投資目標 The Fund aims to provide income and capital growth by investing in fixed and floating rate securities issued by governments and companies worldwide. The Fund aims to mitigate losses in falling markets. The mitigation of losses cannot be guaranteed. 基金旨在通過投資於由全球各地政府及公司發行的定息和浮息證券, 以提供收益和資本增值 基金旨在減低跌市時的損失 減低損失不能獲得保證 Cumulative Performance 累積表現 (%) YTD Fund 基金 (%) Fund 基金 3 Mths 1 Yr 3 個月 1 年 年初至今 N/A Rating Breakdown 信貸評級分佈 (%) AAA 1.33 AA 7.75 A BBB BB B àccc NR 2.32 Geographical Breakdown 地區資產分佈 (%) United Kingdom 英國 United States 美國 Spain 西班牙 7.66 France 法國 5.97 Germany 德國 5.01 Netherlands 荷蘭 4.60 Luxembourg 盧森堡 3.31 Italy 意大利 2.78 Others 其他 Cash & Cash Equivalents 現金及現金等值 Yrs 3 年 5 Yrs 5 年 N/A 7.19 Annual Return 基金總回報 (%) ê Since Launch 自設立日起 Fund 基金 Top Holdings 主要投資 (%) Spain Government Bond 0.35% 30/07/ Eurofins Scientific 3.375% 30/01/ Banco de Sabadell 1.625% 07/03/ Zimmer Biomet Holdings 1.414% 13/12/ Akelius Residential Property 3.875% /10/2078 Western Power Distribution 3.5% /10/2026 Blackstone Property Partners Europe 2.2% /07/2025 ING Groep 2.5% 15/11/ Heathrow Finance 4.75% 01/03/ mbank 1.058% 05/09/ Industry Breakdown 行業資產分佈 (%) Industrial 工業 Financial Institutions 金融機構 Utility 公用事業 6.70 Agencies 機構債券 6.67 Sovereign 主權債券 4.52 Treasuries 國庫債券 2.35 Others 其他 1.65 Cash & Cash Equivalents 現金及現金等值 9.83 Key Information 基金資料 Unit NAV 單位資產淨值 Hi/Lo (Past 12 mths) 最高 / 最低 ( 過去十二個月 ) Annualised Return (3 yrs) 年度回報率 (3 年 ) Annualised Volatility (3 yrs) 年均相對波幅 (3 年 ) Beta (3 yrs) 貝他 (3 年 ) Sharpe Ratio (3 yrs) 夏普比率 (3 年 ) USD ( 美元 ) USD / ( 美元 ) N/A N/A N/A N/A Initial Charge up to 首次認購費上限 3.00% Management Fee 管理年費 1.10% p.a. Fund Manager 基金經理 Launch Date 推出日期 Fund Size 資產值 (million 百萬元 ) Financial Year End 財政年度結算日 Schroders InvestLink Code 施羅德資訊通 編號 Share Class Available 可認購單位類別 A Acc USD (A 類累積 美元 ) A Dis USD (A 類收息 美元 ) A Dis HKD (A 類收息 港元 ) A Dis AUD Hedged (A 類收息 澳元對沖 ) A Dis RMB Hedged (A 類收息 人民幣對沖 ) A Acc EUR Hedged (A 類累積 歐元對沖 ) A Dis EUR Hedged (A 類收息 歐元對沖 ) A Dis GBP Hedged (A 類收息 英鎊對沖 ) Distribution Frequency 派息次數 N/A M M M M N/A Q M Patrick Vogel & Team 11/16 USD ( 美元 ) 31/ Bloomberg Ticker 彭博代碼 SCGCAAU LX SCGCAIU LX SCGCAIH LX SCGAIAH LX SCGAIRH LX SCGAAEH LX SCGAIEH LX SCGAIGH LX ISIN CODE ISIN 號碼 LU LU LU LU LU LU LU LU Schroder International Selection Fund is referred to as Schroder ISF. Source : Schroders. NAVNAV in USD with net income reinvested. The Fund size quoted includes all classes of the Fund. Investment involves risks. Past performance is not indicative of future performance. Please refer to the relevant offering documents for fund details including risk factors. This material, including the website, is issued by Schroder Investment Management (Hong Kong) Limited and has not been reviewed by the SFC. êperformance is calculated from the fund's since launch date (30/11/2016). Distribution Frequency: M = Monthly; Q = Quarterly; S = Semiannual; A = Annual; N/A = Not applicable 資料來源 : 施羅德投資 基金表現以資產淨值價 ( 美元 ) 計算, 收益再投資 本基金之資產值已涵蓋其所有類別 投資涉及風險 過往表現未必可作日後業績的準則 詳情 ( 包括風險因素 ) 請參閱有關銷售文件 本文件及網站由施羅德投資管理 ( 香港 ) 有限公司刊發並未受香港證監會檢閱 ê 基金表現由基金自設立日起計算 ( 即 30/11/2016) 派息次數 : M = 每月 ; Q = 每季 ; S = 每半年 ; A = 每年 ; N/A = 不適用 Download the offering documents here 從此處下載銷售文件

5 Schroder International Selection Fund Société d Investissement à Capital Variable 5, rue Höhenhof, L1736 Senningerberg Grand Duchy of Luxembourg Tel: Fax: IMPORTANT: This letter is important and requires your immediate attention. If you have any questions about the content of this letter, you should seek independent professional advice. The directors of Schroder International Selection Fund accept full responsibility for the accuracy of the information contained in this letter and confirm, having made all reasonable enquiries, that to the best of our knowledge and belief there are no other facts the omission of which would make any statement misleading. 11 August 2018 Dear Shareholder, Schroder International Selection Fund share class designations We are pleased to inform you that following a review of our share class offering, the board of directors of Schroder International Selection Fund has decided to enhance the naming convention that we use for all distribution share classes with effect from 11 September This change will make it easier for you to identify the key characteristics of the distribution share classes that you are holding. The attached schedule provides the old and new names for each of Schroders distribution share classes that are being offered to the public in Hong Kong. Following the change, there will be several new characters at the end of the share class name, to indicate: Distribution frequency (M = monthly, Q = quarterly, S = semiannual, A = annual) Distribution type (F = fixed or V = variable) Currency carry (C) 1 Different distribution rates the actual fixed percentage or amount will not be displayed in the name, instead a numerical suffix will differentiate the share classes (e.g. 2, 3, n) For the avoidance of doubt, the change will not affect the existing distribution characteristics of the share classes; the change is simply to indicate those characteristics within the share class name itself. There will be no changes to ISIN codes or to the naming convention of Accumulation share classes. All other key features of the Fund will remain the same. Any expenses incurred directly as a result of making this change will be borne by Schroder Investment Management (Europe) S.A., the Company s management company. 1 This refers to the premium or discount that may apply to the distribution. Distributions may include a premium when the interest rate of a currency hedged share class is higher than the fund's base currency interest rate. Consequently when the interest rate of a currency hedged share class is lower than the fund's base currency interest rate, the dividend may be discounted. The level of premium or discount is determined by differences in interest rates and is not part of the fund's investment objective or investment policy. R.C.S. Luxembourg B For your security telephone conversations may be recorded

6 Page 2 of 2 If you have any questions or would like more information, please contact your usual professional advisor or Schroder Investment Management (Hong Kong) Limited at Level 33, Two Pacific Place, 88 Queensway, Hong Kong or calling the Schroders Investor Hotline on (+852) Yours faithfully, Cord Rodewald Authorised Signatory Alastair Woodward Authorised Signatory

7 Page 1 of 4 Schedule Fund Asian Bond Total Return Current name of distribution share classes New name of distribution share classes ISIN Codes A1 Distribution EUR A1 Distribution EUR MV LU A Distribution HKD A Distribution HKD MV LU A Distribution A Distribution MV LU A1 Distribution A1 Distribution MV LU D Distribution D Distribution MV LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged MV LU Asian Dividend A Distribution A Distribution MF LU Maximiser * A Distribution AUD A Distribution AUD MF LU A Distribution EUR A Distribution EUR MF LU A Distribution EUR Hedged A Distribution EUR Hedged MF LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged MF LU A Distribution AUD Hedged A Distribution AUD Hedged MFC LU Asian Equity Yield Asian Local Currency Bond Asian Opportunities Asian Total Return BRIC (Brazil, Russia, India, China) China Opportunities A Distribution GBP A Distribution GBP AV LU A Distribution A Distribution MF LU A1 Distribution A1 Distribution MF LU A Distribution A Distribution MV LU A Distribution EUR Hedged A Distribution EUR Hedged MV LU A Distribution A Distribution AV LU A Distribution GBP A Distribution GBP AV LU A Distribution GBP A Distribution GBP AV LU A Distribution EUR A Distribution EUR AV LU A Distribution HKD A Distribution HKD QV LU Emerging Asia A Distribution GBP A Distribution GBP AV LU Emerging Europe A Distribution GBP A Distribution GBP AV LU A Distribution A Distribution AV LU Emerging Markets A Distribution A Distribution AV LU Emerging Markets Debt Absolute Return A Distribution A Distribution QF LU A1 Distribution A1 Distribution MF LU A Distribution EUR Hedged A Distribution EUR Hedged QF LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged MF LU A Distribution GBP Hedged A Distribution GBP Hedged AV LU * The name Dividend Maximiser refers to the investment objective of the fund to enhance the fund dividend by generating extra income from selling covered call options on the underlying equity portfolio and this may reduce the potential capital growth and future income of the fund. It does not suggest that the manager would aim at seeking the highest possible dividends for the fund.

8 Page 2 of 4 Emerging Multi Asset Income A1 Distribution AUD Hedged A1 Distribution AUD Hedged MF LU A Distribution A Distribution MF LU A1 Distribution A1 Distribution MF LU A Distribution AUD Hedged A Distribution AUD Hedged MFC LU A Distribution EUR Hedged A Distribution EUR Hedged QF LU A Distribution HKD A Distribution HKD MF LU EURO Bond A Distribution A Distribution QF LU A1 Distribution A1 Distribution QF LU EURO Corporate Bond A Distribution A Distribution SF LU A1 Distribution A1 Distribution SF LU EURO Equity A Distribution A Distribution AV LU EURO Government Bond A Distribution A Distribution AV LU EURO Short Term Bond A Distribution A Distribution AV LU European Dividend Maximiser* A Distribution A Distribution QF LU A1 Distribution A1 Distribution QF LU A Distribution USD Hedged A Distribution USD Hedged MF LU European Value A Distribution A Distribution AV LU European Large Cap A Distribution A Distribution AV LU A Distribution GBP A Distribution GBP AV LU European Smaller Companies A Distribution A Distribution AV LU Frontier Markets Equity A Distribution A Distribution AV LU Global Bond A Distribution A Distribution AV LU A Distribution EUR Hedged A Distribution EUR Hedged QF LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged QF LU Global Corporate Bond Global Credit Duration Hedged Global Credit Income A Distribution A Distribution MV LU A1 Distribution A1 Distribution MV LU A Distribution EUR Hedged A Distribution EUR Hedged QF LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged QF LU A1 Distribution AUD Hedged A1 Distribution AUD Hedged MVC LU A Distribution RMB Hedged A Distribution RMB Hedged MFC LU A Distribution A Distribution QF LU A1 Distribution A1 Distribution QF LU A Distribution USD Hedged A Distribution USD Hedged AV LU A Distribution A Distribution MF LU A Distribution HKD A Distribution HKD MF LU A Distribution EUR Hedged A Distribution EUR Hedged QF LU A Distribution GBP Hedged A Distribution GBP Hedged MF LU

9 Page 3 of 4 Global Dividend Maximiser* A Distribution AUD Hedged A Distribution AUD Hedged MFC LU A Distribution RMB Hedged A Distribution RMB Hedged MFC LU A Distribution A Distribution QF LU A1 Distribution A1 Distribution QF LU A Distribution EUR Hedged A Distribution EUR Hedged QF LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged QF LU A Distribution AUD Hedged A Distribution AUD Hedged MFC LU A Distribution RMB Hedged A Distribution RMB Hedged MFC LU Global Emerging Market Opportunities A Distribution A Distribution AV LU Global Energy A Distribution EUR A Distribution EUR AV LU A Distribution GBP A Distribution GBP AV LU Global Equity Alpha A Distribution GBP A Distribution GBP AV LU Global Equity Yield A Distribution GBP A Distribution GBP AV LU A Distribution A Distribution MF LU A1 Distribution A1 Distribution MF LU A Distribution HKD A Distribution HKD MF LU Global Gold A Distribution A Distribution AV LU A Distribution GBP Hedged A Distribution GBP Hedged AV LU Global High Yield Global Inflation Linked Bond Global Multi Asset Income A Distribution A Distribution MV LU A1 Distribution A1 Distribution MF LU A Distribution EUR Hedged A Distribution EUR Hedged QV LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged QV LU A1 Distribution AUD Hedged A1 Distribution AUD Hedged MVC LU A Distribution AUD Hedged A Distribution AUD Hedged MVC LU A Distribution HKD A Distribution HKD MV LU A Distribution A Distribution QV LU A1 Distribution A1 Distribution QV LU A Distribution A Distribution MF LU A1 Distribution A1 Distribution MF LU A Distribution EUR Hedged A Distribution EUR Hedged QV LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged QV LU A Distribution HKD A Distribution HKD MF LU A Distribution GBP Hedged A Distribution GBP Hedged MF LU A Distribution AUD Hedged A Distribution AUD Hedged MFC LU A Distribution RMB Hedged A Distribution RMB Hedged MF LU

10 Page 4 of 4 Global Cities Real Estate # A Distribution EUR A Distribution EUR SV LU Global Smaller Companies A Distribution A Distribution AV LU Global Sustainable Growth A Distribution EUR Hedged A Distribution EUR Hedged QV LU Global Target Return A Distribution A Distribution MF LU A Distribution AUD Hedged A Distribution AUD Hedged MFC LU A Distribution EUR Hedged A Distribution EUR Hedged MF LU A Distribution HKD A Distribution HKD MF LU A Distribution RMB Hedged A Distribution RMB Hedged MFC LU Greater China A Distribution GBP A Distribution GBP AV LU Hong Kong Dollar Bond A Distribution A Distribution MV LU Japanese Equity A Distribution A Distribution AV LU Japanese Opportunities A Distribution A Distribution AV LU Latin American A Distribution GBP A Distribution GBP AV LU A Distribution A Distribution AV LU Middle East A Distribution A Distribution AV LU QEP Global Active Value A Distribution A Distribution AV LU Strategic Bond A Distribution A Distribution MV LU A Distribution EUR Hedged A Distribution EUR Hedged QV LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged QV LU A Distribution GBP Hedged A Distribution GBP Hedged AV LU Taiwanese Equity A Distribution A Distribution AV LU UK Equity A Distribution USD A Distribution USD AV LU A Distribution A Distribution AV LU US Dollar Bond A Distribution A Distribution QF LU A Distribution EUR Hedged A Distribution EUR Hedged QF LU A1 Distribution EUR Hedged A1 Distribution EUR Hedged QF LU A Distribution GBP Hedged A Distribution GBP Hedged QV LU A1 Distribution A1 Distribution QV LU US Large Cap A Distribution A Distribution AV LU A Distribution GBP A Distribution GBP AV LU US Small & Mid Cap Equity A Distribution A Distribution AV LU US Smaller Companies A Distribution A Distribution AV LU # The fund is not authorized by the SFC under the Code on Real Estate Investment Trusts.

11 PRODUCT KEY FACTS Schroder International Selection Fund Global Credit Income Issuer: Schroder Investment Management (Europe) S.A. October 2018 This statement provides you with key information about this product. This statement is a part of the offering document. You should not invest in this product based on this statement alone. Quick facts Management company: Investment manager: Depositary: Schroder Investment Management (Europe) S.A. Schroder Investment Management Limited, located in United Kingdom, internal delegation J.P. Morgan Bank Luxembourg S.A. Ongoing charges over a year*: Class A AUD Hedged Dis 1.44% Class A EUR Hedged Acc 1.43% Class A EUR Hedged Dis 1.43% Class A HKD Dis 1.40% Class A USD Dis 1.40% Class A GBP Hedged Dis 1.43% Class A USD Acc 1.40% Class A RMB Hedged Dis 1.43% Dealing frequency: Base currency: Dividend policy: Daily USD A, A1 and D Accumulation share classes Dividend will not be distributed but will be reinvested into the fund. A, A1 and D Distribution share classes The board of directors generally has discretion as to whether or not to make any distribution save for the Distribution share classes with fixed dividend policy which are subject to the disclosures below. Distributions may be paid out of capital and reduce the fund s net asset value. In respect of Distribution share classes with fixed dividend policy, the distribution amount per share is calculated as follows: dividend rate distribution frequency over a year net asset value per share on the record date. Details of the Distribution share classes with fixed dividend policy are set out below: Fixed Distribution Share Class Currency Distribution Frequency over a year Dividend Rate Class A USD Dis USD Monthly (12) 4.5% per annum Class A HKD Dis HKD Monthly (12) 4.5% per annum Class A GBP Hedged Dis GBP Monthly (12) 4.0% per annum Class A EUR Hedged Dis EUR Quarterly (4) 3.5% per annum Investors should note that a positive distribution yield does not imply a positive return. The board of directors will periodically review fixed distribution share classes and reserves the right to make changes. 1

12 Schroder International Selection Fund Global Credit Income Financial year end of this fund: 31 December Minimum investment: A, A1 and D share classes: Initial EUR1,000 or USD1,000 (or equivalent); Subsequent investment EUR1,000 or USD1,000 (or equivalent) * The ongoing charges figure is based on the annualised expenses for the interim period ended 30 June This figure may vary from year to year. Note: As of the date of this document, Class A1 and Class D shares of the fund are not being offered to the public in Hong Kong. What is this product? This is a subfund of Schroder International Selection Fund, a mutual fund domiciled in Luxembourg and its home regulator is Commission de Surveillance du Secteur Financier. Objectives and investment strategy Investment Objective The fund aims to provide income and capital growth by investing in fixed and floating rate securities issued by governments and companies worldwide. The fund aims to mitigate losses in falling markets. The mitigation of losses cannot be guaranteed. Investment Policy The fund invests at least twothirds of its assets in fixed and floating rate investment grade and high yield securities issued by governments, government agencies, supranationals and companies worldwide, including emerging market. As the fund is indexunconstrained it is managed without reference to an index. The fund may invest: in excess of 50% of its assets in securities that have a below investment grade credit rating (as measured by Standard & Poor s or any equivalent grade of other credit rating agencies for rated bonds and implied Schroders ratings for nonrated bonds); up to 20% of its assets in assetbacked securities and mortgagebacked securities; up to 10% of its assets in convertible bonds (including contingent convertible bonds); up to 10% of its assets in openended investment funds; and in money market instruments and hold cash. The fund may invest up to 40% of its net asset value in emerging market debt (fixed and floating rate) securities. The investment manager aims to mitigate losses by diversifying the fund s asset allocation away from areas of the market identified as having a high risk of material negative return. It is the current intention of the investment manager that the fund will not invest more than 10% of its net asset value in securities issued by or guaranteed by any single country with a credit rating below investment grade. Under exceptional circumstances (e.g. market crash or major crisis), the fund may be invested temporarily up to 100% of its net asset value in liquid assets such as bank deposits, certificates of deposit, commercial paper and treasury bills for cash flow management. 2

13 Schroder International Selection Fund Global Credit Income Use of financial derivative instruments ( FDI ) The fund may use FDI, long and short, with the aim of achieving investment gains, reducing risk or managing the fund more efficiently. FDI may be employed for instance to generate additional income from exposure to credit risk in purchasing or selling protection through credit default swaps, adjusting the fund s duration through the tactical use of interest related derivatives, generating additional income through inflation or volatility linked derivatives or increasing its currency exposure through the use of currency related derivatives. FDI could also be employed to create synthetic instruments. Such FDI include overthecounter and/or exchange traded options, futures, warrants, swaps, forward contracts and/or a combination of the above. However, the fund does not intend to use FDI extensively for investment purposes. The expected level of leverage of the fund is 500% of the total net assets by using sum of notionals approach or the expected maximum leverage using the commitment approach is 50%. What are the key risks? Investment involves risk. Please refer to the offering document for details including the risk factors. 1. Risk relating to investment in debt securities Credit and counterparty risk Investment in debt securities is subject to the credit/default risk of the issuer which may also adversely affect the settlement of the securities. Interest rate risks Investment in the fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise. Below investment grade and unrated debt securities Investments in fixed income securities below investment grade or unrated are generally subject to higher degree of counterparty risk, credit risk, volatility risk, liquidity risk and risk of loss of principal and interest than higher rated securities. Credit ratings risk Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times. Credit downgrading risk The credit rating of debt securities or their issuers may subsequently downgraded. In the event of such downgrading, the value of the fund may be adversely affected. The investment manager may not be able to dispose of such securities immediately and the fund may therefore be subject to additional risk of loss. Liquidity and volatility risk Securities not listed or rated or actively traded may have low liquidity and higher volatility. The prices of such securities may be subject to fluctuations. The bid and offer spread of their price may be high and the fund may therefore incur significant trading costs and may even suffer losses when selling such instruments. Valuation risk Valuation of the fund s investment may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the net asset value calculation of the fund. 2. Sovereign debt risk Investment in sovereign debt obligations issued or guaranteed by governments or their agencies of certain developing countries and certain developed countries may expose the fund to political, social and economic risks. A government entity s willingness or ability to repay principal and interest due in a timely manner may be affected by various factors. In the event that a government entity defaults on its sovereign debt, holders of sovereign debt, including the fund, may be requested to participate in the rescheduling of such debt and to extend further loans to the relevant government entity. The fund may suffer significant losses in such events. 3

14 Schroder International Selection Fund Global Credit Income 3. Emerging and less developed markets The fund may invest in emerging and less developed markets. Investing in emerging and less developed markets is subject to greater risks than investing in securities of developed countries such as ownership and custody risks, political and economic risks, market and settlement risks, liquidity and volatility risk, legal and regulatory risks, taxation risk, execution and counterparty risk, and currency risk, which may adversely affect the net asset value per share of the fund and investors may as a result suffer losses. 4. FDI The fund may use FDI to meet its specific investment objective. There is no guarantee that the performance of FDI will result in a positive effect for the fund. FDI exposure may lead to a high risk of significant capital loss. Risks associated with FDI include credit risk and counterparty risk, liquidity risk, valuation risk, volatility risk, overthecounter transaction risks and hedging risk. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the fund. There is no guarantee that the desired hedging instruments will be available or hedging techniques will achieve their desired result. In adverse situations, the use of hedging instruments may become ineffective in hedging and the fund may suffer significant losses. 5. Risks relating to distributions For distribution share classes with a general dividend policy, expenses will be paid out of capital rather than out of gross income. The amount of distributable income therefore increases and the amount so increased may be considered to be dividend paid out of capital; capital growth will be reduced and in periods of low growth capital erosion may occur. Distribution share classes with a fixed dividend policy will distribute the dividends based on a fixed amount or fixed percentage of the net asset value per share. This may result in share classes with fixed distributions either paying out both income and capital in distribution payments, or not substantially distributing all the investment income which a share class has earned. Investments in distribution share classes with fixed dividend policy are not an alternative to a savings account or fixedinterest paying investment. The percentage of distributions paid by distribution share classes with fixed dividend policy is unrelated to expected or past income or returns of these share classes or the fund. The distribution can thus be higher or lower than the income and return that were effectively realised. Distribution share classes with fixed dividend policy will continue to distribute in periods that the fund has negative returns or is making losses, which further reduces the net asset value of the distribution Share Classes with fixed dividend policy. In extreme circumstances, investors may not be able to get back the original investment amount. Investors should note that a positive distribution yield does not imply a positive return. Distribution share classes with a fixed dividend policy do not distribute a fixed amount and the constant percentage of distribution results in higher absolute distributions when the net asset value of the relevant Distribution share classes with fixed dividend policy is high, and lower absolute distributions when the net asset value of the relevant distribution share classes with fixed dividend policy is low. You should note that in the circumstances where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares. 4

15 Schroder International Selection Fund Global Credit Income The distribution amount and net asset value of the currency hedged share class may be adversely affected by differences in the interest rates of the reference currency of the currency hedged share classes and the fund s base currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than other noncurrency hedged share classes. 6. Risks relating to hedging and the hedged classes In respect of the share classes which the management company of the fund has the ability to fully hedge the shares of such share classes in relation to the fund currency, currency exposures or currency hedging transactions within the fund s portfolio will not be considered. The aim of currency hedged share class is to provide you with the performance returns of the fund s investments by reducing the effects of exchange rate fluctuations between the share class s and the fund s base currency. However there is no assurance that the hedging strategies employed will be effective. Where undertaken, the effects of this hedging will be reflected in the net asset value and, therefore, in the performance of such share class. Similarly, any expenses arising from such hedging transactions will be borne by the share class in relation to which the expenses have been incurred. It should be noted that these hedging transactions may be entered into whether the reference currency is declining or increasing in value relative to the relevant fund currency and so, where such hedging is undertaken it may substantially protect investors in the relevant share class against a decrease in the value of the fund currency relative to the reference currency, but it may also preclude investors from benefiting from an increase in the value of the fund currency. There can be no assurance that the currency hedging employed will fully eliminate the currency exposure to the reference currency. 7. Currency risks Assets and share classes may be denominated in currencies other than USD and some may not be freely convertible. The fund may be adversely affected by changes in foreign exchange rates and exchange rate controls of the currencies in which securities are held, the reference currencies of the share classes and the US Dollar. This exposes all share classes of the fund to exchange rate fluctuations and currency risk. It may not be practicable or possible to hedge against such foreign exchange/currency risk exposure. 8. RMB Currency Risk and RMB share classes related risk RMB is currently not freely convertible and is subject to foreign exchange control policies and restrictions. There can be no assurance that RMB will not be subject to depreciation. Any depreciation of RMB could adversely affect the value of investor s investment in share classes denominated in RMB. Share classes denominated in RMB will be valued with reference to offshore RMB ( CNH ) rather than onshore RMB ( CNY ). While CNH and CNY represent the same currency, they are traded at different rates. Any divergence between CNH and CNY may adversely impact investors. NonRMB based investors in share classes denominated in RMB may have to convert HK dollar or other currency(ies) into RMB when investing in share classes denominated in RMB and subsequently convert the RMB redemption proceeds and/or dividend payment (if any) back to HK dollar or such other currency(ies). Investors will incur currency conversion costs and you may suffer losses depending on the exchange rate movements of RMB relative to HK dollar or such other currencies. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB. 5

16 Schroder International Selection Fund Global Credit Income How has the fund performed? Since the fund is launched for less than a full calendar year, there is insufficient data to provide a useful indication of past performance to investors. Is there any guarantee? This fund does not have any guarantees. You may not get back the full amount of money you invest. What are the fees and charges? Charges which may be payable by you You may have to pay the following fees when dealing in the shares of the fund. Fee What you pay Share class A A1 D Subscription fee (Initial charge) Up to 3.00% of the total subscription amount Up to 2.00% of the total subscription amount Nil Switching fee (Switching charge) Redemption fee (Redemption charge) Up to 1.00% of the value of the shares to be switched Nil 6

17 Schroder International Selection Fund Global Credit Income Ongoing fees payable by the fund The following expenses will be paid out of the fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the fund s value) Share class* A A1 D Management fee 1.10% 1.10% 1.10% Depositary fee Up to 0.005% Performance fee Nil Administration fee Up to 0.25% Distribution charge Nil 0.50% 1.00% Custody safekeeping fee Up to 0.3% Transaction fees (charged by the Depositary) Up to USD150 per transaction Fund accounting and valuation fees Up to 0.015% * Where currency hedged share class is offered, a hedging charge of up to 0.03% per annum of the net asset value per share will be borne by the currency hedged share class in relation to which the charge is incurred. The hedging charge will be payable to the management company, which provides the currency hedging service. Note: As of the date of this document, Class A1 and Class D shares of the fund are not being offered to the public in Hong Kong. Other fees You may have to pay other fees when dealing in the shares of the fund. Please refer to the offering document for fees payable by the fund. 7

18 Schroder International Selection Fund Global Credit Income Additional information You generally buy and redeem shares at the fund s relevant net asset value ( NAV ) after Schroder Investment Management (Hong Kong) Limited receives your request, directly or via a distributor, in good order at or before 5pm HK time, being the fund s dealing cutoff time on each dealing day of the fund. Before placing your subscription or redemption orders, please check with your distributor for the distributor s internal dealing cutoff time (which may be earlier than the fund s dealing cutoff time). A dividend calendar including details on the distribution frequency and the dividend calculation basis for all available distribution share classes and a composition of the dividend payments (i.e. the percentages of distribution being paid out of capital and net distributable income) for the last twelve months for each of these distribution share classes (i) with a variable distribution policy or (ii) with a fixed dividend policy and paying dividends out of capital are also available from the Schroder Investment Management (Hong Kong) Limited on request and from the Schroders Internet site ( Past performance information of other share classes offered to Hong Kong investors is available online at The net asset value of this fund is calculated and the price of shares is published on each dealing day. They are available online at This website has not been reviewed by the SFC. Important If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 8

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28 產品資料概要施羅德環球基金系列 環球收息債券 發行人 :Schroder Investment Management (Europe) S.A 年 10 月 本概要提供本基金的重要資料, 是銷售文件的一部分 請勿單憑本概要作投資決定 資料便覽 管理公司 : Schroder Investment Management (Europe) S.A. 投資經理 : Schroder Investment Management Limited( 英國, 內部委任 ) 存管處 : J.P. Morgan Bank Luxembourg S.A. 全年經常性開支比率 *: A 類別 ( 澳元對沖收息 ) 1.44% A 類別 ( 歐元對沖累積 ) 1.43% A 類別 ( 歐元對沖收息 ) 1.43% A 類別 ( 港元收息 ) 1.40% A 類別 ( 美元收息 ) 1.40% A 類別 ( 英鎊對沖收息 ) 1.43% A 類別 ( 美元累積 ) 1.40% A 類別 ( 人民幣對沖收息 ) 1.43% 交易頻密程度 : 基本貨幣 : 派息政策 : 每日 美元 A A1 和 D 累積股份類別 不會派發股息, 但會將股息再投資於基金 A A1 和 D 收息股份類別 董事會一般可酌情決定是否作出任何派息, 惟採取固定 派息政策的收息股份類別須受下文的披露規定 派息可從資本中扣除, 從而減低基金的資產淨值 就採取固定派息政策的收息股份類別而言, 每股派息金額計算如下 : 派息率 全年派息次數 於紀錄日的每股資產淨值 採取固定派息政策的收息股 份類別的詳情載於下文 : 固定收息股份類別 貨幣 全年派息次數 派息率 A 類別 ( 美元收息 ) 美元 每月 (12 次 ) 每年 4.5% A 類別 ( 港元收息 ) 港元 每月 (12 次 ) 每年 4.5% A 類別 ( 英鎊對沖收息 ) 英鎊 每月 (12 次 ) 每年 4.0% A 類別 ( 歐元對沖收息 ) 歐元 每季 (4 次 ) 每年 3.5% 投資者應注意, 正派息收益率並不意味正回報 董事會將定期檢討固定收息股份 類別及保留作出更改的權利 1

29 施羅德環球基金系列 環球收息債券 財政年終結日 : 最低投資額 : 12 月 31 日 A A1 和 D 股份類別 : 首次投資 1,000 歐元或 1,000 美元 ( 或其等值 ); 額外 認購 1,000 歐元或 1,000 美元 ( 或其等值 ) * 全年經常性開支比率是根據截至 2018 年 6 月 30 日的半年度年率化費用計算, 每年均可能有所變動 註 : 截至本文件日期, 本基金的 A1 類及 D 類股份並不向香港公眾發售 本基金是什麼產品? 基金為施羅德環球基金系列旗下的一項子基金, 施羅德環球基金系列以互惠基金形式在盧森堡成立, 監管機構為盧森 堡金融業管理局 (Commission de Surveillance du Secteur Financier) 目標及投資策略投資目標基金旨在通過投資於由全球各地政府及公司發行的定息和浮息證券, 以提供收益和資本增值 基金旨在減低跌市時的損失 減低損失不能獲得保證 投資政策基金將最少三分之二的資產投資於由全球各地 ( 包括新興市場國家 ) 政府 政府機構 跨國組織和公司發行的定息和浮息投資級別及高收益證券 由於基金不受指數約束, 故此不會參考指數來管理 基金可以 : 將超過 50% 的資產投資於信貸評級低於投資級別的證券 ( 就具評級債券而言, 按標準普爾的評級, 或其他信貸評級機構的任何同等級別 ; 就未獲評級債券而言, 按施羅德的評級 ); 將最多 20% 的資產投資於資產抵押證券和按揭抵押證券 ; 將最多 10% 的資產投資於可換股債券 ( 包括應急可轉債 ); 將最多 10% 的資產投資於開放式投資基金 ; 和 投資於貨幣市場工具和持有現金 基金可將其最多 40% 的資產淨值投資於新興市場債務 ( 定息和浮息 ) 證券 經理人旨在透過對基金的資產配置實現多樣化, 遠離被識別為具高度的重大負回報風險的市場範疇, 以減低損失 投資經理現時無意將基金超過 10% 的資產淨值投資於任何單一國家發行或保證, 但信貸評級低於投資級別的證券 在特殊情況下 ( 例如 : 股災或重大危機 ), 基金可暫時將其最多 100% 的資產淨值投資於諸如銀行存款 存款證 商業票據及國庫券等流動資產作現金流管理 2