產品資料概要施羅德環球基金系列 - 港元債券 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 Invest

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1 Schroder ISF - Hong Kong Dollar Bond A Acc 施羅德環球基金系列 - 港元債券 A 類股份累積單位 As at 截至 31/08/2018 CIESêê Eligible 資本投資者入境計劃 êê 合資格基金 Important Information 重要事項 The fund invests primarily in fixed and floating rate securities denominated in HKD. 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 interest rate, credit and counterparty risks. The fund may use derivatives to meet its investment objective but does not intend to use derivatives extensively for investment purposes. Derivatives exposure may involve higher counterparty, liquidity and valuation risks. In adverse situations, the fund may suffer significant losses from their derivative usage for hedging. 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. 基金主要投資於以港元定值的定息及浮息證券 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承受利率 信貸及交易對手方風險 基金可投資於金融衍生工具以達致投資目標, 但無意為投資目的而大量運用金融衍生工具 運用金融衍生工具可涉及較高的對手方 流通性及估值的風險 在不利的情況下, 基金可能會因為使用金融衍生工具作對沖之用而承受重大虧損 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 capital growth and income by investing in fixed and floating rate securities denominated in HKD. 基金旨在通過投資於以港元定值的定息和浮息證券, 以提供資本增值和收益 Cumulative Performance 累積表現 *^ (%) YTD 3 Mths 1 Yr 年初至今 3 個月 1 年 Fund 基金 Index 指數 ~ (%) Fund 基金 ^ Rating Breakdown 信貸評級分佈 (%) AAA 2.02 AA A BBB 8.62 BB 0.68 B àccc NR Industry Breakdown 行業資產分佈 (%) Corporate Bonds 企業債券 Government Bonds 政府債券 Short Term Investments 短期投資 8.42 Funds 基金 4.89 Floating Rate Notes 浮息票據 4.22 Others 其他 Cash & Cash Equivalents 現金及現金等值 Yrs 3 年 % 3M HIBOR + 50% iboxx ALBI Hong Kong~ 5 Yrs 5 年 Since 27/07/1995^ 自 27/07/1995 Annual Return 基金總回報 (%) Fund 基金 Index~ 指數 Top Holdings 主要投資 (%) Hong Kong Government Bond 1.34% /06/2019 Hong Kong Treasury Bill 0% 07/11/ Hong Kong Government Bond 1.49% /09/2019 Hong Kong Treasury Bill 0% 28/11/ Hong Kong Treasury Bill 0% 14/11/ Hong Kong Treasury Bill 0% 10/10/ China Government Bond 3.13% 13/04/ Hong Kong Government Bond 1.32% /12/2019 Hong Kong Government Bond 1.35% /03/2019 Hong Kong Government Bond 1.61% /12/2018 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 ) HKD ( 港元 ) HKD / ( 港元 ) 0.43% 1.18% Beta (3 yrs) 貝他 (3 年 ) 0.68 Sharpe Ratio (3 yrs) 夏普比率 (3 年 ) Initial Charge up to 首次認購費上限 3.00% Management Fee 管理年費 0.75% p.a. Fund Manager 基金經理 Chow Yang Ang ( 洪朝陽 ) 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 - HKD (A 類累積 - 港元 ) A Dis - HKD (A 類收息 - 港元 ) Distribution Frequency 派息次數 N/A M TM èmorningstar Rating 晨星星號評級 08/02 HKD16, ( 港元 ) 31/ Bloomberg Ticker 彭博代碼 SCHHBAA LX SCHHBAD LX ISIN CODE ISIN 號碼 LU LU Schroder International Selection Fund is referred to as Schroder ISF. êêcapital Investment Entrant Scheme is referred to as CIES. The CIES has been suspended with effect from 15 January 2015 until further notice. Please visit the HKSAR Immigration Department website and/or check with your Financial Intermediary for details. Source : Schroders. NAV-NAV in HKD with net income re-invested. 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. *Effective 09/08/2002, Schroder HK Dollar Fixed Income Fund (since launch date: 27/07/1995) was merged into Schroder ISF HK Dollar Bond. The management fee has been changed from 0.5% p.a. to 0.75% p.a. ^Performance before 09/08/2002 refers to that of the Schroder HK Dollar Fixed Income Fund. ~The benchmark has been changed from Hibor 3mo HKD (Compounded) to HSBC HK Dollar Bond on 01/01/2008, to 50% 3 month HIBOR + 50% HSBC Hong Kong Dollar Bond on 01/05/2015 and to 50% 3M HIBOR + 50% iboxx ALBI Hong Kong on 01/04/2016. The full track record of the previous indices have been kept and chain linked to the new one. Distribution Frequency: M = Monthly; Q = Quarterly; S = Semi-annual; A = Annual; N/A = Not applicable èmorningstar, Inc. All Rights Reserved. Morningstar Rating (TM) as at 31/08/2018. êê 資本投資者入境計劃 已由二零一五年一月十五日起暫停直至另行通知為止, 請查閱香港入境處網站及 / 或向你的金融中介機構查詢詳情 資料來源 : 施羅德投資 基金表現以資產淨值價 ( 港元 ) 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 * 寶源港元定息基金 ( 設立日 :27/07/1995) 於 09/08/2002 轉入至施羅德環球基金系列 - 港元債券 管理年費由 0.5% 轉為 0.75% ^09/08/2002 前的表現資料均屬寶源港元定息基金 ~ 本基金基準已於 01/01/2008 由 Hibor 3mo HKD (Compounded) 更改為 HSBC HK Dollar Bond, 於 01/05/2015 更改為 50% 3 month HIBOR + 50% HSBC Hong Kong Dollar Bond 及於 01/04/2016 更改為 50% 3M HIBOR + 50% iboxx ALBI Hong Kong 過往所有基準的全部往績俱己保存, 並和新的指數串連 派息次數 : M = 每月 ; Q = 每季 ; S = 每半年 ; A = 每年 ; N/A = 不適用 èmorningstar 版權所有 晨星星號評級數據截至 31/08/2018 Download the offering documents here 從此處下載銷售文件

2 產品資料概要施羅德環球基金系列 - 港元債券 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 : 施羅德投資管理 ( 香港 ) 有限公司 ( 香港, 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 ( 港元累積 ) 1.06% A1 類別 ( 港元累積 ) 1.51% A 類別 ( 港元收息 ) 1.06% 交易頻密程度 : 基本貨幣 : 派息政策 : 每日 港元 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 派息可從資本中扣除, 從而減低基金的資產淨值 財政年終結日 : 12 月 31 日 最低投資額 : 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 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) 1

3 施羅德環球基金系列 - 港元債券 目標及投資策略投資目標基金旨在通過投資於以港元定值的定息和浮息證券, 以提供資本增值和收益 投資政策基金將最少三分之二的資產投資於由全球各地政府 政府機構 跨國組織和公司發行, 以港元定值的定息及浮息證券, 及上述工具相關的衍生工具 基金不會投資於非投資級別的證券 ( 按標準普爾的評級或其他信貸評級機構的任何同等評級 ) 基金可透過境外投資機制 ( 於香港說明文件內 中國銀行間債券市場概況 一節中進一步描述 ) 投資於中華人民共和國 ( 中國 ) 基金亦可將不超過其資產淨值 5% 透過債券通 ( 於香港說明文件內 中國銀行間債券市場概況 一節中進一步描述 ) 投資於在中國銀行間債券市場交易的中國境內投資 基金透過境外投資機制及債券通對中國境內投資作出的投資擬少於資產淨值的 30% 基金不得 : (a) 將其多於 10% 的資產淨值投資於城投債, 即由地方政府融資平台 ( 地方政府融資平台 ) 所發行, 並在中國交易所買賣債券市場及銀行間債券市場進行買賣的債務工具 該等地方政府融資平台是由地方政府及 / 或其聯屬機構成立的獨立法定實體, 為公益投資或基建項目進行融資 ; (b) 將其多於 5% 的資產淨值投資於資產抵押證券 ( 包括抵押擔保證券及資產抵押商業票據 ); 及 (c) 投資於結構性存款或結構性產品 基金可投資於任何國家 ( 包括新興市場國家 ) 地區或行業的資產淨值的有關部分並不受任何限制 基金亦可投資於貨幣市場工具和持有現金 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 金融衍生工具的運用基金為達致投資增益 減低風險或更有效地管理, 可運用長倉和短倉的金融衍生工具 基金可例如在以下情況運用金融衍生工具以產生額外收益 : 透過買賣信貸違約掉期合約的保障投資於信貸風險 透過策略性地使用利息相關金融衍生工具調整基金年期 使用通脹或波動性相關金融衍生工具產生額外收益, 或使用貨幣相關金融衍生工具以增加貨幣投資 亦可運用金融衍生工具以提供合成工具 該等金融衍生工具包括場外交易及 或交易所買賣的期權 期貨 認股證 掉期 遠期合約, 及 或以上組合 然而, 基金無意為投資目的而大量運用金融衍生工具 2

4 施羅德環球基金系列 - 港元債券 本基金有哪些主要風險? 投資涉及風險 請參閱銷售文件, 了解風險因素等資料 1. 有關投資於債務證券的風險 - 信貸和對手方風險 - 投資於債務證券承受發行商的信貸 / 違約風險, 可能對證券的結算造成不利影響 - 利率風險 - 投資於基金承受利率風險 一般來說, 利率下跌時債務證券的價格會上升, 而利率上升則價格會下跌 - 信貸評級風險 - 由信貸評級機構給予的信貸評級受若干限制, 不可在所有時間保證證券和 / 或發行商的信譽 - 信貸評級被降低的風險 - 債務證券或其發行商的信貸級別可能在後來被降級 當被降級, 基金的價值可能受負面影響 投資經理未必即時出售該等證券, 基金或會因而承受額外損失的風險 - 流動性和波動性風險 - 未上市 未獲評級或未有活躍交易的證券的流動性偏低和波動性偏高 該等證券的價格或會承受波動 該等證券的買賣差價或會偏高, 基金在出售該等工具時可能會產生重大的交易成本, 甚至可能蒙受損失 - 估值風險 - 對基金的投資進行的估值或涉及含糊和主觀的決定 假如該等估值原來是不正確的, 可能影響基金的資產淨值計算 2. 主權債務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債務可能承受政治 社會及經濟風險 政府機構如期償還到期本金和利息的能力或意願受多種因素影響 當政府機構對其主權債務違約, 主權債務持有人 ( 包括基金 ) 或會被要求參與該等債務重組, 額外借款給相關政府機構 基金可能在該等事件中蒙受重大損失 3. 金融衍生工具基金可投資於金融衍生工具以達致特定投資目標 不保證該等金融衍生工具的表現會為該基金帶來正面影響 投資於金融衍生工具或須承受高度的資本虧損風險 涉及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, 以及對沖風險 金融衍生工具的槓桿元素 / 成份可導致虧損顯著多於基金投資於金融衍生工具的金額 基金不保證市場能提供理想的對沖工具, 或對沖技術可以達到預期效果 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 4. 集中地理地區 基金投資於集中地理地區或會承受較投資於採用較多元化的投資組合 策略的基金為高的風險 基金的價值可能較容易受影響著相關地理地區的不利經濟 政治 政策 外匯 流動性 稅務 法律或監管事件所影響 3

5 施羅德環球基金系列 - 港元債券 5. 新興和較落後市場的風險基金可投資於新興和較落後市場 投資於新興和較落後市場涉及的風險較投資於已發展國家的證券為高, 例如擁有權及保管權風險 政治和經濟風險 市場及結算風險 流動性及波動風險 法律及監管風險 執行及交易對手方風險, 以及貨幣風險 基金的每股資產淨值亦可能負面地受影響, 投資者繼而蒙受損失 6. 有關派息的風險 - 就採取一般派息政策的收息股份類別而言, 支出將從資本 ( 非收入 ) 中支付, 可分派收入因此而增加, 而增加的部份可被視為從資本中支付的股息 資本增長將減慢, 在低資本增長時期或會出現資本侵蝕 - 採取固定派息政策的收息股份類別將基於一個固定金額或每股資產淨值的一個固定百分比派息 因此, 派發固定股息之股份類別, 其股息款項可能同時由收入及資本中支付, 或未必將股份類別賺到的大部份投資收入完全派發 - 閣下應注意從資本中支付的派息, 即相當於從閣下原本投資的金額中, 或從該等金額賺取的任何資本收益中退回或提取部份款項, 所以, 該等派息可能導致每股資產淨值即時下跌 本基金過往的業績表現如何? 8% 6% 4% 2% 0% -2% -4% -6% 6.6% 5.5% 3.2% 3.1% 2.1% 2.1% 1.7% 0.1% % -3.8% 註 - 往績並非預測日後業績表現的指標 投資者未必能取回全部投資本金 - 基金業績表現以歷年末的資產淨值作為比較基礎, 股息會滾存再作投資 - 上述數據顯示基金的 A 類別 ( 港元累積 ) 總值在有關曆年內的升跌幅度 業績表現以港元計算, 當中反映出基金的持續費用, 但不包括基金可能向閣下收取的認購費及贖回費 - 基金發行日 : A 類別 ( 港元累積 ) 發行日 : 管理公司視 A 類別 ( 港元累積 )( 即以基金的基本貨幣計值的零售股份類別 ) 為基金的最適合代表股份類別 註 : 這些年度的業績表現乃在不再適用的情況下取得的 在這些年度, 基金出現重大變更, 即投資目標及政策變更和費用下調 本基金有否提供保證? 本基金並不提供任何保證 閣下未必能取回投資本金 4

6 施羅德環球基金系列 - 港元債券 投資本基金涉及哪些費用及收費? 閣下或須繳付的收費 基金股份交易或須繳付以下費用 費用 金額 股份類別 A A1 D 認購費 ( 首次認購費 ) 以認購總金額之 3.00% 為上限 以認購總金額之 2.00% 為上限 無 轉換費不多於轉換股份價值的 1.00% 贖回費 無 基金持續繳付的費用 以下收費將從基金總值中扣除, 閣下的投資回報將會因而減少 每年收費率 ( 佔基金總值百分比 ) 股份類別 * A A1 D 管理費 0.75% 0.75% 0.75% 存管費不多於 0.005% 業績表現費 ( 表現費 ) 無 行政費不多於 0.25% 分銷費無 0.50% 1.00% 保管服務費不多於 0.3% 交易費用 ( 由存管處徵收 ) 每宗交易不多於 150 美元 會計及估值服務費不多於 0.015% * 如發售貨幣對沖股份類別, 年率最高達每股資產淨值 0.03% 的對沖費將由招致有關費用的貨幣對沖股份類別承擔 對沖費將支付給提供貨幣對沖服務的管理公司 註 : 截至本文件日期, 本基金的 D 類股份並不向香港公眾發售 其他費用 閣下進行基金股份交易或須繳付其他費用 有關由基金繳付的費用, 請參閱銷售文件 5

7 施羅德環球基金系列 - 港元債券 其他資料 - 施羅德投資管理 ( 香港 ) 有限公司在基金每個交易日交易截止時間 ( 即香港時間下午 5 時正 ) 或之前直接或經配售商收妥的認購或贖回要求, 一般按隨後釐定的基金相關資產淨值執行 閣下作出認購或贖回指示前, 請向閣下的配售商查問其內部的交易截止時間, 因其交易截止時間可能會較基金的為早 - 列載所有可供認購之收息股份類別的派息次數和計算股息基準的股息一覽表, 以及採取 (i) 不固定派息政策或 (ii) 固定派息政策並從資本中支付股息之各收息股份類別過去 12 個月的股息成份 ( 即從資本和可分派淨收入支付派息的百份比 ), 可向施羅德投資管理 ( 香港 ) 有限公司索取及瀏覽施羅德網站 ( - 供香港投資者認購的其他股份類別的業績表現上載至網站 - 基金在每一交易日計算基金資產淨值及刊登股份價格, 並上載至網站 該網站未經證監會審閱 重要提示 閣下如有疑問, 應諮詢專業意見 證監會對本概要的內容並不承擔任何責任, 對其準確性或完整性亦不作出任何陳述 6

8 PRODUCT KEY FACTS Schroder International Selection Fund Hong Kong Dollar Bond 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 (Hong Kong) Limited, located in Hong Kong, internal delegation J.P. Morgan Bank Luxembourg S.A. Ongoing charges over a year*: Class A HKD Acc 1.06% Class A1 HKD Acc 1.51% Class A HKD Dis 1.06% Dealing frequency: Base currency: Dividend policy: Daily HKD 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. Distributions may be paid out of capital and reduce the fund s net asset value. 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 D shares of the fund are not being offered to the public in Hong Kong. What is this product? This is a sub-fund of Schroder International Selection Fund, a mutual fund domiciled in Luxembourg and its home regulator is Commission de Surveillance du Secteur Financier. 1

9 Schroder International Selection Fund Hong Kong Dollar Bond Objectives and investment strategy Investment Objective The fund aims to provide capital growth and income by investing in fixed and floating rate securities denominated in HKD. Investment Policy The fund invests at least two-thirds of its assets in fixed and floating rate securities denominated in HKD issued by governments, government agencies, supra-nationals and companies worldwide and derivatives related to the above instruments. The fund does not invest in non-investment grade securities (as measured by Standard & Poor s or any equivalent grade of other credit rating agencies). The fund may invest in the People s Republic of China ( PRC ) under the Foreign Access Regime (as further described in the section headed Overview of China Interbank Bond Market in the Hong Kong Covering Document). The fund may also invest up to 5% of its net asset value in PRC onshore investments traded on the China Interbank Bond Market via Bond Connect (as further described in the section headed Overview of China Interbank Bond Market in the Hong Kong Covering Document). It is intended that the exposure of the fund to PRC onshore investments through the Foreign Access Regime and Bond Connect will be less than 30% of the net asset value. The fund may not invest:- (a) more than 10% of its net asset value in Urban Investment Bonds ( 城投債 ), which means debt instruments issued by local government financing vehicles ( LGFVs ) and traded on the PRC exchange-traded bond markets and interbank bond market. These LGFVs are separate legal entities established by local governments and/or their affiliates to raise financing for public welfare investment or infrastructure projects; (b) more than 5% of its net asset value in asset-backed securities (including mortgage-backed securities and asset-backed commercial papers); and (c) in structured deposits or structured products. The fund is not subject to any limitation on the portion of its net asset value that may be invested in any country (including emerging market countries), region or sector. The fund may also invest in money market instruments and hold cash. 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. 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 FDI, generating additional income through inflation or volatility linked FDI or increasing its currency exposure through the use of currency related FDI. FDI could also be employed to create synthetic instruments. Such FDI include over-the-counter 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. 2

10 Schroder International Selection Fund Hong Kong Dollar Bond 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. 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 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. 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, over-the-counter 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. 4. Concentrated geographical locations The fund investing in concentrated geographical locations may be subject to a higher level of risks comparing to a fund investing in a more diversified portfolio/strategy. The value of the fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the relevant geographical locations. 3

11 Schroder International Selection Fund Hong Kong Dollar Bond 5. 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, 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. 6. 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. 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. How has the fund performed? 8% 6% 4% 2% 0% -2% -4% -6% 6.6% 5.5% 3.2% 3.1% 2.1% 2.1% 1.7% 0.1% % -3.8% Note Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-To-NAV, with dividend reinvested. These figures show by how much the fund s A HKD Accumulation increased or decreased in value during the calendar year being shown. Performance data has been calculated in HKD including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Fund launch date: 2002 Class A HKD Accumulation launch date: 2002 The management company views the Class A HKD Accumulation, being the retail share class denominated in the base currency of the fund, as the most appropriate representative share class of the fund. Note: The performance of these years was achieved under circumstances that no longer apply. During these years, there was material change(s) to the fund, namely, changes of investment objective and policy, reduction of fee(s). Is there any guarantee? This fund does not have any guarantees. You may not get back the full amount of money you invest. 4

12 Schroder International Selection Fund Hong Kong Dollar Bond 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 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 0.75% 0.75% 0.75% 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 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. 5

13 Schroder International Selection Fund Hong Kong Dollar Bond 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 cut-off 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 cut-off 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. 6