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1 Full Rating Report Traditional Asset Managers / UK Asset Manager Rating Rating Criteria Rating Criteria Company & staffing Risk management & controls Portfolio management Investment administration Source: Fitch Technology M1 Description 5 Superior: Asset manager operations demonstrating the lowest vulnerability to operational and investment management failure. Click here to receive Fitch s complimentary research on asset managers For comprehensive coverage of Fitch s AM research, visit fitchratings.com/fam Key Rating Drivers Diversified Client Mix: The rating of (Schroders) reflects the company s diversified, global product range and client base. A long history and structural independence further support the robustness of the franchise in unstable markets. Recent Investments: The company s stable profitability and liquidity ensures the solid funding of investment, IT and regulatory needs, as demonstrated by additional staff hires (workforce up by a net 7% in 2011). Specifically, Schroders made high profile hires to strengthen its absolute return expertise and its multi-asset investment capabilities. Evolving Business: Schroders has been expanding its capabilities in alternative, absolute return and liability-driven investments, which creates a new operating environment for the company (which has historically been focused on traditional investments). The strategic evolution is well controlled in Fitch Ratings opinion. Strong Risk Management Framework: Schroders has an effective risk and governance framework that is well embedded in the business but also benefits from the independent oversight of influential risk functions and committees. Disciplined Investment Processes: The active, mainly fundamental research-driven investment process has proven stable in volatile markets and is supported by accountable, focused staff and asset class-specific analytics. In Fitch s view, an increased focus on macrorisks and dynamic risk allocations has enhanced portfolio construction, particularly in fixed income. Robust Operational Platform: Investment operations are scalable and robust, as demonstrated by an ability to absorb increased volumes and product complexity in The reliance on some third-party service providers is monitored through strict oversight and control procedures. Adapting Technology: Schroders IT platform is built around global third-party vendor systems and asset class-specific proprietary applications. A project aimed at upgrading its front-office systems to match evolving business requirements in particular the expanded use of OTC derivatives commenced in In Fitch s view, system migrations tend to increase temporary operational risk, but Schroders has proven in the past its ability to successfully manage projects of this scale. Industry Pressures: The main challenges facing Schroders involve fighting the retail industry s outflow trend, picking up opportunities in the institutional space, expanding its absolute return investment capabilities and adapting to sizeable regulatory changes. The potential overhaul of the front-office technological platform is also a major project. Manager Profile Analysts Manuel Arrive, CFA manuel.arrive@fitchratings.com Richard Woodrow, CFA richard.woodrow@fitchratings.com Global Asset Management Company: Schroders the core subsidiary of Schroders plc ( A+ /Stable/ F1 ) is a global asset management company with GBP182.2bn under management as at end-september 2011 (62% institutional, 38% retail, excluding private banking), 46% of which is invested in equities. The company employed 2,900 staff globally as at 30 September The Asset Manager Rating assigned to Schroders refers to the investment activities based in London (excluding alternatives), the major global investment centre. 25

2 Manager Profile Schroders is a global asset management company with GBP182.2bn in assets under management (AuM) as at September 2011 (end- 2010: GBP196.7bn). Schroders is owned by Schroders Plc, founded in 1804, which has been listed on the London Stock Exchange since The Schroder family holds about 47.5% of the company. Schroders Plc is rated A+ /Stable/ F1, affirmed by Fitch in January As at 30 September 2011, 1,353 staff were located in London, historically the main investment centre (2,900 globally). Schroders services a variety of different institutional investors, such as corporates, pension funds, local and public authorities and charities, as well as retail clients. High net worth individuals are serviced by the dedicated private banking division. Address Company contact 31 Gresham Street London EC2V 7QA UK Emma Holden Head of Corporate Communications Tel emma.holden@schroders.com Ownership Parent/affiliates London Stock Exchange listed; about 47.5% of the capital is held by the founder family Schroders plc Web site CEO Michael Dobson Type of organisation Asset management company CFO Kevin Parry Year founded 1804 Group CIO Alan Brown Domicile, place of incorporation London; UK Investment Heads Ken Lambden: Head of Equities Karl Dasher: Head of Fixed Income Nicolaas Marais: Head of Multi-Asset and Portfolio Solutions Registration(s)/jurisdiction(s) FSA, Reg.No Portfolio managers 161 in total at 30 September 2011 Assets Under Management (all as at 30 September 2011) AUM Growth (GBPm) AUM Breakdown by Geography (Client Domicile) Continental Europe 24% Americas 13% UK 37% (September) Source: Asia Pacific 26% Source: AUM Breakdown by Asset Class (As at September 2011) Private banking 9% Breakdown by Client Type (%) Institutional funds Intermediary Private banking 100 Alternatives 12% Equity 42% Multi asset 18% Fixed income 19% Source: Related Criteria Reviewing and Rating Asset Managers (August 2010) 0 End 2006 End 2007 End 2008 End 2009 End 2010 Sep 2011 Source: 2

3 Key Rating Drivers Strengths Long history, strong brand name, exclusive focus and extensive track record in asset management. Global, diversified book of business (by geography, asset class and distribution channel). Overall solid risk management framework and governance structures with influential risk functions. Thorough, research-intensive, mainly bottom-up investment processes. Rating M1 Challenges To manage enhanced regulatory requirements and associated costs. To manage potential upgrade of front-office IT platform. To develop and roll out new product offerings in total return and outcome-oriented strategies, adapting processes and systems. To maintain stability among key staff and preserve talent pool amongst increasing industry competition. Score Company & Staffing 1.75 Stable ownership by Schroders Plc ( A+ /Stable/ F1 ), publicly listed, also providing private banking services. Record inflows in 2009 and 2010 relative to peers. GBP5.1bn net inflows year-to-september 2011; institutional net inflows offsetting retail net outflows. Expansion of personnel in 2011, including key hires in fixed income and multi-asset. Strong positioning in multi-asset, emerging markets, global equities and credit among other capabilities. More than 2,900 employees, of which 347 are investment professionals. Global team structure adhering to key organisational principles. Breadth and depth of staff at all levels. Strong track record of senior management effectively executing strategy. Risk Management & Controls 1.75 Strong governance structure and risk functions, featuring independence and with a focus on specific risk types. Operational risk management practices supported by dedicated database and monitoring tool with a focus on emerging risks. Investment compliance monitoring largely automated through embedded controls in the Charles River System. Enterprise-wide and granular counterparty risk exposure monitoring. Sophisticated proprietary and third-party risk analytics as per asset class for investment risk management. Strong monitoring of outsourced functions, mitigating reliance on JP Morgan as key service provider. Portfolio Management 2.00 Mainly fundamental bottom-up, research-driven investment processes. Enhanced macro, top-down inputs in fixed income. Evolution of processes, analytics and culture accompanies launch of more sophisticated strategies and products. Strong performance accountability of portfolio managers and research, with clear identification of ownership for value creation. Information gathering and knowledge sharing through global integrated research portal. Process adequacy validated by strong performance over three years (81% of funds above benchmark as at 30 September 2011), despite deteriorating one-year performance. Trading desk is well resourced, global, highly automated, with advanced pre- and post-trade analytics. Investment Administration 2.25 Good standard of monthly and quarterly reporting, complemented with enhanced e-services. Scalability and robustness of centralised operations hubs, demonstrated by ability to absorb increased volumes in High level of straight-through processing and flexibility, supported by central data warehouse and Simcorp Dimension (SCD). New settlement system successfully rolled out in Technology 2.00 IT architecture largely built around global third-party vendors, ensuring a high level of integration. Strong set of asset class-specific decision support systems (portfolio modelling and risk analytics). Front-office functionalities provided by Charles River system, automated broker communication, trade matching and settlement. Middle-office functionalities and portfolio accounting through SCD, well integrated with a central data warehouse. A project aimed at upgrading front-office systems commenced in 2011, supporting the expansion towards more sophisticated products and strategies. Coordination of business requirements with IT, facilitated by new hire for key front-office role. 3

4 Stable ownership by Schroders Plc, publicly listed Sound capitalisation and cash generation, low leverage Company & Staffing Shareholding & Financial Standing (Schroders) is owned by Schroders Plc, which has been listed on the London Stock Exchange since 30 September The Schroder family holds about 47.5% of the voting equity in various nominee accounts; around 6% of the total ordinary and non-voting ordinary shares in issue (as at 30 September 2011) are owned by employees. Fitch s ratings of Schroders Plc ( A+ /Stable/ F1 ) were affirmed in. Overall, the company s financial standing is backed by sound capitalisation and cash generation, and a large share of liquid assets on its balance sheets. Details on Schroders Plc s financial strength can be found in the report Schroders Plc, dated 25 January 2011 and available at Controlled strategic evolution to successfully build a diversified global asset manager Recent development of new capabilities in LDI and absolute return space Experience in the Asset Management Industry Schroders history dates back more than 200 years to Historically focused on the management of UK equities and institutional clients, Schroders has shifted its business to diversify its geographical presence, client and product mix. In Fitch s view, Schroders is a truly global, multi-expertise asset management organisation. This controlled strategic evolution of the business was achieved mainly through organic growth. Schroders demonstrated good resilience during the 2008 crisis, thanks to its diversified, traditional business franchise. Furthermore, the group has benefitted strongly from the market recovery in 2009 and 2010, in terms of inflows and investment performance. In particular, the return of institutional net inflows (GBP16.8bn in 2010 and GBP4.9bn in 2009) was a key milestone for the company. In Fitch s opinion, during this period, Schroders managed growth and increasing operational complexities in an appropriate manner. More recently, the company has been developing, still in a controlled manner, a more sophisticated range of products and services. Absolute return strategies and retirement solutions for institutional investors including liability driven investments (LDIs) are two recent key areas of growth. Schroders has positively differentiated itself from its peers across the recent cycle. This achievement is a testament to the management at Schroders, which effectively executed a well-considered business strategy. Corporate Independence & Governance Schroders independence and exclusive focus on asset management minimises potential conflicts of interest and maximises the alignment of goals with clients. However, the company does not have a majority of independent non-executive directors on its board. Global team structure adhering to key organisational principles Breadth and depth of staff at all levels Use of scalable platforms for operations and focused skill pools for investment decisions Expansion of personnel in 2011 and 2010, following stabilisation in 2009 and reduction in 2008 Schroders has the capacity to manage funds and segregated accounts under various jurisdictions and regulatory regimes. The majority of institutional funds fall under the provisions of the FSA regulations in the UK or respective local regimes. Funds sold in the intermediary business are primarily Luxembourg-domiciled UCITS funds. Schroders works with recognised international and local third-party distributors. Third-party service providers used for custody, asset and fund administration, and transfer agency tasks are recognised specialists. The main provider is JP Morgan; others include Bank of New York Mellon, HSBC, BBH, IFDS, Fortis and Citco. Further outsourced functions include the London IT infrastructure. Relationships with third parties are based on service level agreements (SLAs) and are subject to regular reviews and tight monitoring by means of key performance indicators (KPIs) and subsequent follow-ups. 4

5 Figure 1 Schroder Investment Management Staffing/Key Functions Function No. of staff Senior management 13 Investment 347 Professionals Of which Equity (PM and 53 analysts) Fixed income (incl. 28 EM market debt) Multi-asset and 50 portfolio Solutions Trading desk (London only) Source: Schroder Investment Management, as of end-september Staffing Asset management is organised on a global scale under the leadership of the global chief investment officer (CIO) who oversees fixed income, quantitative equities and investment operations. Equities (with the exception of quantitative global equities), EM debt, multi-asset and structured products report directly to the CEO. Schroders expanded its workforce by a net 7% in 2011 (to end September) (4% in 2010), to support planned business expansion. Specifically, Schroders made high profile hires to develop its macro capabilities in fixed income and to strengthen its multi-asset investment teams. One key challenge for Schroders is to retain its most talented investment professionals, in a model that promotes accountability of investment performance. Investment professionals demonstrate substantial industry experience in their core fields of expertise (see Figure 1). The agency notes that Schroders investment staff, in particular PMs, are empowered and accountable, which attracts leading professionals. Well staffed investment teams allow the company to use scalable platforms, while reaping the advantages of being small and decentralised when it comes to decision-making and flexibility. As a global asset manager, Schroders benefits from the scale of its operations located in London, Luxembourg and Singapore. Control functions consist of internal audit, risk and compliance. They are well staffed and well regarded in the organisation. Portfolio managers have over 18 years experience on average Research analysts with over 14 years industry experience Risk Management & Controls Control Organisation Structure Schroders has a solid and well organised risk management framework, with clearly assigned responsibilities in place. This ensures a high level of oversight from top management and the board of directors, through delegation to board committees. The organisation of risk controls at Schroders relies on an independent Risk Group function reporting to the CEO and embedded risk teams reporting into the business. The risk organisation has demonstrated its effectiveness since it was established in Fitch believes that risk structure is well balanced and provides a forward-looking assessment of risks. Fitch particularly notes the capacity to identify new potential sources of risk through a market cycle and to conduct scenario analysis on the failure of a counterparty or service providers. Effective risk mapping in place Close monitoring of third-party service providers, in line with Schroders outsourcing culture Operational Risk Management Operational risk management is the remit of a dedicated risk function. The tight framework includes a detailed risk mapping of the business and a monitoring of incidents and issues, all documented in an intranet-based risk management system called SWORD. The loss database allows for the assessment of trends and exceptions. In 2011, the number of incidents increased in line with volumes, but aggregated losses were lower than in Reporting is aggregated through a revised risk dashboard which maps open issues at a granular level. Relationships with third parties are based on service level agreements (SLAs) and are subject to regular reviews and tight monitoring, by means of key performance indicators and subsequent follow-ups. Compliance and Controls Schroders has a defined compliance framework in place, ensuring compliance with regulations in all jurisdictions in which the company is active. Formal monitoring activities and control routines are coordinated with the internal audit function. Relevant policies, procedures and standards are reviewed and updated at least on a yearly basis. Escalation procedures are well defined and operate effectively. Restrictions and controls on investment constraints at the portfolio level are automatically monitored through the Charles River Trading System on a pre- and post-trade basis. Controls 5

6 on valuation and pricing of the funds are securely performed by means of multi-level checks, and automated controls of tolerance limits, facilitated by a vendor solution and defined reconciliation procedures. Investment risk management and budgeting supported by asset classspecific analytics Enhanced use of stress testing Enterprise-wide and granular counterparty risk exposure monitoring Investment Risk Management Schroders has mapped and effectively monitors market risks and risk profiles for all of its funds through a dedicated governance structure. Risk management procedures are evolving to adapt to the increasing sophistication of Schroders strategies and instruments. Aggregated risk reports are provided to a dedicated board, acting as a sub-committee to the Global Risk Committee. Schroders uses dedicated proprietary tool sets for investment risk monitoring. These are aligned to capture a diversified range of risk factors relevant to the specific asset classes and strategies. Fitch views these tools as well standardised and suited to their objectives, allowing for stress testing, value-at-risk calculation and back testing of portfolios. Portfolio performance monitoring and attribution is managed by a dedicated team within the portfolio services division, utilising BI-SAM analytics for fixed income and equity portfolios. For balanced and diversified funds, Schroders multi-asset risk technology (SMART) enables risk reporting and analysis. Fitch notes that performance attribution in the multi-asset space is partially manual. Liquidity risk management is performed through key risk indicators and scenario analysis to assess the effect of portfolio liquidation in various market conditions. Counterparty credit risk is monitored daily against enterprise-wide, consolidated exposure limits in a granular manner. Portfolio Management Established stock-picking skills based on high quality fundamental research Enhanced macro inputs to portfolio construction in fixed income Decisions made by small, accountable PM sub-teams Equities The investment philosophy emphasises mispriced opportunities in quality, out-of-favour companies whose potential earnings power should emerge over the long term. The investment process for UK and European equities is effectively bottom-up, focused on stock selection and geared to be neutral in terms of a systematic style bias over a cycle. Research analysts, organised on a sector basis, are fully integrated with investment teams. Mispriced stocks are evaluated by Schroders fundamental research and proprietary company valuation model (CVM). Strategic and macro-economic analysis forms part of the process, setting the context for financial modelling and for risk allocation at the portfolio construction stage. The analysis ultimately translates into a ranking, reflecting performance expectations. Figure 2 Equities AUM Breakdown (GBP76bn AUM) (As at September 2011) Americas 17% Continental Europe 21% Source: Schroder Investment Management UK 26% Asia Pacific 36% Decision-making and portfolio construction are executed by small specialist teams supported by a range of dedicated management tools, such as Portfolio Risk Investment Strategy Manager (PRISM) for portfolio construction and monitoring. Stocks are weighted and ranked according to the PM s conviction within the remits of the given risk parameters and additional liquidity considerations. In Fitch s view, the framework allows for efficient risk budgeting and control of potential style tilts in portfolios. Schroders dedicated quantitative global equity products concentrate on generating a diversified portfolio of stocks, unconstrained with regard to sector, country and market capitalisation. The process incorporates proprietary filtering, based on company fundamentals, and a judgemental overlay on recommended trades if required. Portfolios are very granular and optimised on a daily basis. Equity trading is highly professional, completely unbundled, well resourced and with global execution on a 24/7 basis. Traders have complete discretion in trade execution, which is fully 6

7 electronic. Their extensive knowledge of the most liquid market pools and best order routes (ie Direct Market Access, LiquidNet, multi-broker algorithms) support efficient execution. Fixed Income Bottom-up credit research forms the keystone of Schroders investment process. The credit process has evolved with the hiring of a CIO for fixed income in 2010 towards an increased weight given to a macro top-down view and systematic risk management in portfolio construction. Figure 3 Fixed Income AUM Breakdown (GBP35bn AUM) (As at September 2011) UK 26% Americas 13% Source: Schroder Investment M anagement Continental Europe 35% Asia Pacific 32% A global independent fundamental team of around 30 credit research analysts is complemented by a team of four quantitative analysts. Fundamental credit research inputs and processes are standard. The outputs consist of a fundamental view on the direction of credit quality (six to 12 months outlook), a ranking of issuers within sectors and an issuer concentration limit. Strategies are formulated using a scorecard approach and all qualitative assessments are fully documented. Quantitative, model-based inputs have been integrated further into the investment process. Top-down views are formalised via macro-credit strategy and global sector strategy. Credit and sector strategy outputs which include a projected three-month return for global credit and a sector ranking are used for strategic asset allocation and beta rotation. Risk budgeting and portfolio construction is the responsibility of the lead PM, facilitated by the use of proprietary systems such as FIA and Quick Risk, but also Barclays Point. Trades are executed by a central trading desk through fixed income platforms such as TradeWeb or Market Access. Schroders intends to trade more credit derivatives in Multi-Asset Investments and Portfolio Solutions Multi-asset investments cover a wide range of products and customised solutions for institutional and retail investors. Schroders also offers a wide range of Portfolio Solution products aimed at risk mitigation, such as Liability Driven Investments (LDIs). Fitch views Schroders competitive edge in the multi-asset area as deriving from the risk premia-based strategic and dynamic allocations made, the use by a focused group of accountable decisionmakers, and a proprietary multi-asset risk technology. Multi-asset fund portfolio construction aims to capture risk premia, incorporating top-down, judgemental views, into the portfolio through a quantitative process. Schroders classic approach in formulating the investment strategy relies on the quarterly Risk Premia Group meetings (SIGMA) and the Global Asset Allocation Committee (GAAC). The Risk Premia Group formulates long-term views on risk premia and trade ideas, all synthesised in a scorecard. The GAAC consists of a small group of senior independent multi-asset specialists who decide on trades and asset class preferences. Multi-asset class fund managers ultimately construct portfolios in accordance with GAAC and SIGMA asset class preferences and risk objectives. The abovementioned investment approach is implemented through a series of diversified long/short trade ideas and defined risk budgets, set by the GAAC and proposed by clearly identified sponsors. PMs and risk specialists make full use of SMART. The tool enables modelling of portfolio risks under a variety of scenarios and the attribution of risk between active and market risk. Figure 4 Multi-Assets AUM Breakdown (GBP33bn AUM) (As at September 2011) European multi asset 4% Structured 5% Americas multi asset 6% UK multi asset new balanced 16% M ulti manager 4% Asian multi asset 18% Source: Schroder Investment M anagement UK multi asset tradional balanced 24% Liability driven investments 23% 7

8 Emerging Markets The sources of returns for emerging market equities (USD26bn AUM as at September 2011) are 50% based on stock picking and 50% based on a proprietary top-down quantitative models for country selection. This utilises a controlled judgmental overlay which takes into account five groups of factors (valuation, growth, currency/risk, momentum and interest rates). The stock selection process is driven by fundamental research conducted by Schroders team of locallybased analysts. Risk budgets are actively managed and stop losses are defined. The team consists of 38 professionals located in all key EM countries. Fitch highlights the discipline, documentation and repeatability of the global process. Emerging market debt (USD11bn as at September 2011) is an absolute return strategy, investing in both local and hard currency cash instruments. The research process focuses on both fundamental and quantitative country research, but also technical and sentiment analysis to derive forecasts. Portfolio construction is disciplined, based on diversification rules, avoidance of averaging down and active use of cash, with a clear focus on downside risks. Enhanced client interface Three, scalable, centralised operations hubs Extensive use of third-party service providers, requiring strong oversight and control Investment Administration Reporting & Communication Schroders generally produces summarised monthly reports to its investors, followed by a more detailed quarterly reporting. Reporting content and presentation is of a good standard. For Schroders mutual fund range, monthly fact sheets are available containing all pertinent information. The delivery has been improved over the past 12 months, as Schroders has developed client portals (to access portfolio data), mobile web and social media offerings, among other solutions. Institutional clients can access information via a dedicated portal called Schroders Link. Administration In Fitch s opinion, operational processes are well standardised and automated. Schroders has a robust, scalable operational platform in place, centralised in London, Luxembourg and Singapore. Services rendered particularly net asset value (NAV) calculation are continuously assessed by means of key performance indicators and close and regular followups with internal teams and external providers. Schroders retains specialised functions inhouse, such as performance attribution, derivatives operations and data management. Fund valuation functions and asset pricing sources are mainly delegated to external parties or independent sources (such as Markit for the pricing of OTC derivatives.) A Global Pricing Committee is in place to oversee asset valuation processes. Corporate actions processing is currently a manual process, although supported by dedicated tools and teams. Fitch notes that Schroders has recently strengthened the procedures within this area, and has a medium-term goal to invest in new technology to help automate the process. As the business evolves towards more absolute return and alternative investments, Schroders is adapting its administrative and technical support for derivatives and short positions, among others. Technology Front Office Schroders uses Charles River, an industry-standard application, as its main order management, trading and compliance tool. Positions are reconciled daily directly with SimCorp Dimension (SCD), the portfolio accounting tool and prime book-of-record. Risk analytics tools are mainly proprietary, specifically designed to cover the risk and return drivers of the individual asset classes. They are actively used for risk budgeting and portfolio constructions. They allow a view of risks from various perspectives and enable PMs to get a 8

9 deep insight into underlying risk factors and sensitivities. Risk metrics are calculated to include all standard measures. A project aiming at upgrading front-office systems was initiated in 2011; it considers a range of internal and external solutions. The purpose of the project is to advance technology platforms to support a wider use of financial instruments (including OTC derivatives) and investment strategies (including LDI). New systems are also being considered for asset allocation and multi-asset performance attributions. In Fitch s view, system migrations tend to increase temporary operational risk, but Schroders has proven in the past its ability to successfully manage projects of this scale. Middle & Back Office Schroders uses SCD as a core integrated middle- and back-office system. Figure 5 shows additional applications Fitch believes to be efficient and suitable for purpose. Figure 5 IT Platform Selected Systems Function Investment/Risk systems Data systems Trading systems Middle- and back-office systems Reporting systems Fund administration Corporate systems Source: Schroders Key tools Proprietary tools for research, portfolio modelling, investment risk analysis and asset allocation, plus Barclays Point, Barra Eagle Pace, CADIS Charles River, Direct Market Access, LiquidNet, TradeWeb, DTSA Simcorp (Dimension and TradeMatch), Sunguard (Intellimatch) Eagle Pace, BISAM (B One), Kurtosys (previously FundReports) Bravura (GFAS) Oracle Financials & HR Well designed, modern IT architecture, built mostly from thirdparty global software High level of integration through interfaces and central databases Changing front-office operating model, evolving technology Data Management and Integration Generally, Schroders uses two global hubs for data storage: Eagle PACE (for the security master file, investment and benchmark data, and account positions) and SCD (for portfolio data and position-keeping). Interfaces with internal applications, as well as required third-party agents, are well established, providing a consistent set of quality data and largely automated access to it. IT Security Schroders has outsourced its IT infrastructure in London to Computacenter, which is responsible for the system security, integrity and maintenance. Schroders has established business continuity and disaster recovery procedures, which are regularly tested and reviewed. A dedicated Information Assurance team focuses on mitigating online risks. 9

10 Appendix Top 10 Funds by AUM as at 30 September-11 AUM (GBP) Inception date 1 SISF Emerging Markets Debt 4,575,382, Aug 97 2 SISF EURO Corporate Bond 4,339,582, Jun 00 3 Schroder Diversified Growth Fund 3,374,184, May 06 4 SISF Global High Yield 2,728,710, Apr 04 5 SAS Commodity Fund 2,623,749, Oct 05 6 Schroder Commodities 3C7 2,543,760, Apr Schroder UK Alpha Plus Fund 2,488,020, Jun 02 8 Schroder Global Quantitative Active Value Fund 2,107,323, Dec 05 9 SISF BRIC (Brazil, Russia, India, China) 1,697,613, Oct Schroder BRICs Equity Baby Fund 1,533,472,034 Oct 2005 Source: Schroders 10

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