Schroder ISF* Euro Liquidity. For Professional Investors only * ISF refers to International Select Fund throughout the document

Transcription

1 Schroder ISF* Euro Liquidity For Professional Investors only * ISF refers to International Select Fund throughout the document

2 1 Money market portfolio management

3 Fixed income assets under management As at 31 December 2008 Total AUM (US$158bn) Fixed income AUM (US$27bn) Global 6.8% Alternatives 30.1% Asia 17.3% UK 28.6% Equity 52.6% Australia 3.5% Fixed Income 17.3% US 29.4% Euro 14.5% Source: Schroders 2

4 Money Market Portfolio Management Objective Capital Preservation Liquidity Return Philosophy We consider cash as an asset class in its own right that demands specialist investment expertise We believe in taking active risk only where active risk is rewarded 3

5 Schroders competitive advantage in Money Markets Global Resources : Strong fully integrated local money market team Transparent and repeatable process Consistent returns Appropriate risk return profile for the product High conviction - exploiting the investment universe and backing our views 4

6 Fund Performance As at 30 June 2009 Schroder ISF Euro Liquidity % M 3M 6M 1YR 3YR ann. 5YR ann. Schroder ISF Euro Liquidity A Acc Citi EUR 1m Eurodeposit LC TR Source: Schroders as at 30 June

7 Schroder ISF Euro Liquidity As at 30 June 2009 Portfolio Statistics Fund 1 Month Euribor Yield (% per annum) 1.07% 0.73% Duration 0.20 yrs 0.08 yrs Credit quality Aa1 Market Value 1.86bn Duration Distribution (MV%) 6.5% Portfolio Composition (MV%) 12.02% 21.1% 26.4% 2.71% 7.03% 48.39% 46.0% 29.85% 0-1 month 1-3 months 3-6 months 6-9 months 9-12 months CD CP Government Cash and other net assets FRN 6 Source: Schroders

8 The Inflation Outlook The Economist Poll - average consumer price forecasts for 2009 (%) Eurozone USA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar UK Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Japan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 7 Source: The Economist, as at March 2009

9 Fundamentals: Bank Rate GrIP = Growth and Inflationary Pressures EURO GrIP (30 June 2009) Eurozone GrIP Table (June 2009) SDs from mean Eurozone GrIP index Nominal base rate, rhs % Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Consumer confidence INSEE Industrial production Retail Sales IFO Euro area business climate BNB Survey Growth contribution PPI Unemployment rate Price trend over next 12mths PMI prices charged Inflation contribution Equity market Trade-weighted Euro Asset prices contribution Total Average For each series, values tend to be based on a 3 month moving average of the 6-month % change, normalised relative to the last 5 years. 8 Source: Schroders

10 Liquidity Cautious approach to illiquidity maintain steady maturity ladder 9 Source: Schroders as at 25 July 2008

11 Appendix 10

12 Schroder ISF EURO Liquidity The fund in brief Aim : Euro Liquidity aims to provide liquidity and current income in a manner consistent with the preservation of capital Performance benchmark, Citi Euro 1 month deposit index Approach : Guidelines: Investing in a well diversified portfolio of mainly money market securities Bottom up security selection based on in-house credit research Minor interest rate risk Cost efficiency keep trading costs to a minimum Invests mainly in highly rated short maturity (less than 12 months) money market securities such as deposits, CDs, CP and FRNs. Minimum rating A2/P1 respectively Invests in longer dated securities such as bank/corporate FRNs and ABS/MBS to add yield (maximum one year maturity for fixed rate securities) Low interest rate exposure maximum WAM # 180 days Euro denominated securities only 11

13 Comparing Moody s criteria for the funds Schroder ISF Euro Liquidity Moody s Rating Credit Risk Minimum Credit Rating Aaa (Bond) MR1 Equivalent to 36 month Aaa bond A2 (A3 allowed if rated P-1 short-term and less than 120 days to maturity) Maximum Maturity No official Moodys limit (but Schroders have set 10 years) Maximum WAM 180 days Source: Moody s. As at March

14 European Fixed Income Biographies David Scammell Head of European & UK interest rate strategies 2004 Schroders 1998 United Bank of Kuwait, Portfolio Manager 1996 Central Bank of Finland, Portfolio Manager 1993 The Bank for International Settlements, Portfolio Manager 1987 The Bank of England, Mathematican - MA, Helsinki University - 15 years of Investment Experience - 4 Years with Schroders Jamie Stuttard - Head of European & UK Fixed Income 2003 Schroders 2002 PIMCO. Vice President and euro and sterling investment grade portfolio manager Dresdner RCM Global Investors Dresdner Kleinwort Benson. Investment bank credit analyst MA, Cambridge University 10 years of investment experience 5 years with Schroders Thomas Sartain European & UK Money Markets Fund Manager 2005 Schroders 2003 Royal Bank of Scotland BA Honours, University of Reading 4 year of investment experience 3 years with Schroders 13

15 European Fixed Income biographies cont Chris Ames European & UK ABS Portfolio Manager 2007 Schroders 2005 Cheyne Capital, Portfolio Manager 2002 BNP Paribas, Head of Structured Credit Research 1999 Wall Street Analytics, Managing Director 1998 Nikko Principal Investments 1991 Lehman Brothers, Director/Vice President MBA, Stern School of Business at University BA, Boston University 17 years of investment experience 1 year with Schroders Adam Cordery, CFA Head of European & UK credit strategies 2004 Schroders 2000 Invesco, Head of European High Yield/High Yield Analyst 1996 UBK Asset Management, Credit Analyst/Fund Manager 1991 Economist Intelligence Unit, Senior Economist 1989 Civil Aviation Authority, Economist BA, Cambridge University 12 years of investment experience 4 years with Schroders Sarang Kulkarni, CFA European & UK Credit Fund Manager 2008 Schroders 2002 Aerion Fund Management. Portfolio Manager 1998 Anderson Corporate Finance. Corporate Financier 1994 Peregrine Capital. Corporate Financier BE, University of Bombay Postgraduate diploma, IIM Calcutta 6 years investment experience Lucette Yvernault European & UK Credit Fund Manager 2005 Schroders 2000 Citigroup Asset Management, Portfolio Manager and Vice president 2000 CMG First State Investment Hong Kong, Associate Fund Manager Mastaire of Engineering in Management and Financial Analysis, EPF Sceaux 9 years of investment experience 3 years with Schroders 14

16 Important Information For Professional Investors only. Not suitable for Private Customers. This presentation is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroder Investment Management Ltd (Schroders) does not warrant its completeness or accuracy. No responsibility can be accepted for error of fact or opinion. This does not exclude or restrict any duty or liability that Schroders has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Schroders has expresses its own views and opinions in this document and these may change. Reliance should not be laced on the views and information in the documents when taking individual investment and/or strategic decision. Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested For the purposes of the Data Protection Act 1998, the data controller in respect of any personal data you supply is Schroder Investment Management Limited (SIM). Personal information you supply may be processed for the purposes of investment administration by the Schroders Group which may include the transfer of data outside the European Economic Area. SIM may also use such information to advise you of other services or products issued by the Schroder Group unless you notify it otherwise in writing. The forecasts stated in the presentation are the result of statistical modelling, based on a number of assumptions. Forecasts are subject to a high level of uncertainty regarding future economic and market factors that may affect actual future performance. The forecasts are provided to you for information purposes as at today's date. Our assumptions may change materially with changes in underlying assumptions that may occur, among other things, as economic and market conditions change. We assume no obligation to provide you with updates or changes to this data as assumptions, economic and market conditions, models or other matters change. 15

17 Important Information This presentation does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the Company ). Nothing in this presentation should be construed as advice and is therefore not a recommendation to buy or sell shares. Subscriptions for shares of the Company can only be made on the basis of its latest prospectus together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, from Schroder Investment Management (Luxembourg) S.A. The Company is not managed in order to qualify for UK distributor status. It may not meet the requirements of investors subject to UK taxation. An investment in the Company entails risks, which are fully described in the prospectus. Past performance is not necessarily a guide to future performance and may not be repeated. Investors may not get back the full amount invested, as prices of shares and the income from them may fall as well as rise. Exchange rate changes may cause the value of any overseas investments to rise or fall. Schroders has expressed its own views and opinions in this presentation and these may change. This presentation is issued by Schroder Investment Management (Luxembourg) S.A., 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. For your security, all telephone calls are recorded. 16

18 Important information This presentation is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroder Investment Management Ltd (SIM) does not warrant its completeness or accuracy. This does not exclude or restrict any duty or liability that SIM has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Schroders has expressed its own views and opinions in this document and these may change. Past performance is not a guide to future performance and the value of investments can fall as well as rise. Issued by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA Telephone: Authorised and regulated by the Financial Services Authority. For your security, communications may be taped or monitored. 17