Download pdf - Schroder Tokyo Fund Schroder Japan Growth plc...Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may

Marketing material for professional investors or advisers only. This material is not suitable for retail clients

Andrew Rose, Fund Manager

Schroder Tokyo FundSchroder Japan Growth plcSchroders Investment Conference 2018, Manchester

22 May 2018

#SICM18

@Schroders_UK

New team structure from October 2017Execution of long-term plans

1

Source: Schroders, as at 31 October 2017. *Schroder International Selection Fund will be referred to as Schroder ISF throughout this presentation.

Secondment to London from Tokyo

• Masaki Taketsume joined the team in London from August 2017• Masaki has been our technology analyst in Tokyo for the last 10 years but is transitioning to a Fund Management role• Now working alongside Andrew Rose to gain broad experience• Takafumi Miura joined the team in Tokyo two years ago and is now in a position to assume Masaki’s research responsibilities

Implementation of long-term succession plan in Tokyo

• Shogo Maeda will retire as Head of Japanese Equities on 1 October 2017• Kazuhiro Toyoda becomes lead Fund Manager of the Schroder ISF* Japanese Equity Fund

• Ken Maeda is appointed Head of Japanese Equities• Ken continues as Fund Manager of the Schroders ISF Japanese Opportunities Fund

• Taku Arai is appointed Deputy Head of Japanese Equities• Supporting Ken in the management of Schroders’ business and team in Japan

New team structure from October 2017Culmination of long-term succession plan

2

Source: Schroders, as at 31 March 2018, *based in London

Ken MaedaHead of Japanese Equities

Madoka SatoAkira NamegawaHiromi Mori

Tetsuo IwashitaTakafumi MiuraKazuko YabutaniJoshua Bennison

Sector Analyst Masaaki Nishikori (Head of Research)

Takuya FurutaniKota Takahashi

Small Cap Fund Manager/Analyst Ayumi Kobayashi (Team Leader)

Andrew Rose* Masaki Taketsume*

Kazuhiro ToyodaHirokazu Kawachi

Fund Manager

Nathan Gibbs*

Taku AraiDeputy Head of Japanese Equities

Product Manager

Performance

Performance – Schroder Tokyo Fund As at 30 April 2018

4

Source: Morningstar, Performance is presented for Z class Acc units, net of fees, bid to bid, GBP. *Includes a fair market value adjustment of -0.6%. Source for ratings: The Adviser Centre, Morningstar, Square Mile, City Financial, Fund Calibre, Square Mile and Rayner Spencer Mills, as at 30 April 2018.Please refer to the Morningstar disclaimer in the important information at the end of this document.

Returns in GBP

Schroder Tokyo Fund* +21.2 -7.3 +4.0 +25.0 +3.1 +16.4 +27.2 +13.6

TSE 1st Section Index (TOPIX) +19.5 -11.9 +2.8 +24.6 +2.7 +18.2 +23.4 +15.6

Relative +1.7 +4.6 +1.2 +0.4 +0.4 -1.8 +3.8 -2.0

2017(%)

2016(%)

2015(%)

2010(%)

2012(%)

2013(%)

2014*(%)

2011(%)

Past performance is not a guide to future performance and may not be repeated.

Returns in GBP

Schroder Tokyo Fund -0.6 +12.0 +12.4 +11.3 +9.6

TSE 1st Section Index (TOPIX) +0.6 +13.4 +13.2 +11.2 +8.2

Relative -1.2 -1.4 -0.8 +0.1 +1.4

3 months(%)

3 year(% p.a.)

5 year(% p.a.)

10 year(% p.a.)

1 year(%)

Schroder Tokyo Fund

5

Source: Schroders

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.

Funds that invest solely in the companies of one country or region can carry more risk than funds spread over a number of countries or regions.

Schroder Tokyo Fund – risk factors:

• Currency risk : The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses.

• Equity risk : Equity prices fluctuate daily, based on many factors including general, economic, industry or company news.

• Liquidity risk : In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares.

• Operational risk : Failures at service providers could lead to disruptions of fund operations or losses.

Percentile ranking

Performance relative to peer group – Schroder Tokyo Fund

As at 30 April 2018

6

Source: Morningstar, bid to bid, Acc units, GBP, Basic Rate Tax, net of fees. Universe: all UK Registered Investment Funds, Japan, Equity.

24

49

2016

24 22 2318

25

13

29

6

15

55

93

1 1 4

93

19

95

31 2823

45

32

13

40

64

25

53

26

72

58

0th

10th

20th

30th

40th

50th

60th

70th

80th

90th

100th

85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 1720

18 Y

TD


Largest positive contributions to performance

Largest negative contributions to performance

Stock selection attribution – Schroder Tokyo Fund3 months to 30 April 2018

7

Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell. Source: FactSet. Contributions are purely indicative as FactSet uses unaudited data. Stock weights are average weights over the period and returns are expressed in JPY.

Security Fund (%)

Load difference

(%)

Absolute return

(%)

Impact Security Fund (%)

Load difference

(%)

Absolute return

(%)

Impact

TDK Corp 2.8 2.6 7.5 0.3 Bridgestone 3.2 2.6 -11.7 -0.2

Sankyu Inc 2.2 2.2 9.1 0.3 Sekisui Chemical 1.4 1.2 -17.1 -0.1

Shimadzu 0.9 0.8 17.2 0.2 Nintendo Co Ltd 0.3 -0.8 14.7 -0.1

Otsuka Holdings 1.5 1.0 7.7 0.1 Fujitsu Ltd 1.3 1.1 -17.7 -0.1

JGC Corp 1.3 1.2 7.4 0.1 Unipres Corp 0.8 0.8 -20.0 -0.1

Total 1.0 Total -0.8


Largest positive contributions to performance

Largest negative contributions to performance

Stock selection attribution – Schroder Tokyo Fund12 months to 30 April 2018

8

Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell. Source: FactSet. Contributions are purely indicative as FactSet uses unaudited data. Stock weights are average weights over the period and returns are expressed in JPY.

Security Fund (%)

Load difference

(%)

Absolute return

(%)

Impact Security Fund (%)

Load difference

(%)

Absolute return

(%)

Impact

Sankyu Inc 2.0 2.0 58.2 0.7 SK Kaken Co 2.1 2.1 3.3 -0.4

TDK Corp 2.7 2.5 38.1 0.5 Hi-Lex Corp 1.8 1.8 -1.3 -0.4

Disco Corp 2.1 2.0 37.6 0.4 KDDI Corp 2.9 1.7 -4.0 -0.3

Shimadzu 0.8 0.7 70.6 0.3 Nintendo Co Ltd 0.3 -0.7 83.4 -0.3

Haseko Corp 1.3 1.2 38.8 0.3 Keyence Corp 0.0 -1.1 48.4 -0.3

Total 2.1 Total -1.6


Schroder Tokyo Fund

9

Sectors shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell. Source: FactSet. Contributions are purely indicative as FactSet uses unaudited data.

YTD attribution

-1.4

-1.2

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

Air T

ransp

orta

tion

Ba

nks

Ch

em

ica

ls

Co

nstru

ctio

n

Ele

ctric

Ap

plia

nce

s

Ele

ctric

Po

we

r & G

as

Fis

hery

, Ag

r & F

ore

stry

Foods

Gla

ss &

Ce

ram

ics P

rodu

cts

Info

rma

tion &

Co

ms

Insura

nce

Iron &

Ste

el

Land T

ransporta

tion

Ma

chin

ery

Ma

rine

Tra

nsp

orta

tion

Me

tal P

rodu

cts

Min

ing

Nonfe

rrous M

eta

ls

Oil &

Co

al P

rodu

cts

Oth

er F

inan

cin

g B

usin

ess

Oth

er P

rodu

cts

Ph

arm

aceu

tica

l

Pre

cis

ion In

stru

ments

Pu

lp &

Pa

pe

r

Re

al E

sta

te

Re

tail T

rade

Ru

bb

er P

rodu

cts

Securitie

s &

Com

Futu

res

Se

rvic

es

Textile

s &

Ap

pa

rels

Tra

nsp

orta

tion

Eq

uip

me

nt

Wa

reho

usin

g &

Ha

rbor T

ran

s…

Wh

ole

sale

Tra

de

Allocation effect Selection effect

12 months to 30 April 2018


Correlation with “Value” is a recent phenomenon

10

Source: Thomson Reuters Datastream, weekly data as at 30 April 2018. Securities/Index shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

1.08

1.1

1.12

1.14

1.16

1.18

1.2

0.280

0.285

0.290

0.295

0.300

0.305

0.310

0.315

Mar

13

Aug

13

Jan

14

May

14

Oct

14

Mar

15

Jul 1

5

Dec

15

Apr 1

6

Sep

16

Jan

17

Jun

17

Nov

17

Mar

18

Schroder Tokyo Fund relative to Topix Index Topix Value relative to Topix Index (rhs)

Typically style factors are outweighed by stock selection

Policy

Recent transactions (Last 3 months to 30 April 2018)

12

– Toyota Industries– Bandai Namco– Kureha Corp

– Okinawa Electric Power– Mitsubishi Corp

– IHI Corp– Nippon Soda– Murata Manufacturing– Recruit Holdings– Unipres Corp

– Honda Motor– Yamada Denki– ABC-MART– Shimadzu Corp

Newly added: Outright sales:

Additions: Reductions:

Source: Schroders. Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

– Slightly pro cyclical, additions to cyclicals

– Overweight financials – slightly underweight banks but overweight insurance, adding to Nomura

– Underweight large cap consumer electronics, prefer components, SPE – but reducing latter on

strength

– Overweight autos – broadly defined

– Slightly overweight small/micro cap

– Overweight retail

– Adding to real estate

Policy

13

Source: Schroders, as at 31 March 2018. For illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Started a new holding in SMC, pneumatic equipment maker

14

SMC relative to Topix1

(Rebased to 100)

SMC market share in pneumatic equipment2

1Source: Thomson Datastream, as at 30 April 2018.2Source: BoAML, as at 31 December 2017.Securities and regions shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

85

90

95

100

105

110

115

120

125

130

135

140

Dec

15

Feb

16

Apr 1

6

Jun

16

Aug

16

Oct

16

Dec

16

Feb

17

Apr 1

7

Jun

17

Aug

17

Oct

17

Dec

17

Feb

18

Apr 1

8

SMC relative to Topix Index

“Short sell” report issued

Japan 70%

Europe 20%

North America 23%

China 38%


JXTG (leading integrated oil producer)

15

JXTG relative to Topix Index Market share trends of Japanese Oil product whole

Source: Schroders, Thomson Datasteam as at 30 April 2018. Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

40

50

60

70

80

90

100

110

Jan

13

Jun

13

Nov

13

Apr 1

4

Sep

14

Feb

15

Jul 1

5

Dec

15

May

16

Oct

16

Mar

17

Aug

17

Jan

18

JXTG relative to Topix Index

Added to position in anticipation of FCF improvements

Rebased to100

48%

31%

14%

2% 5%0%

JXTGIdemitsu + Showa ShellCosmo OilKignus OilTaiyo OilOthers

1996 2016

15%

8%

2%

12%

16%14%

11%

7%

5%4%

2%2% 4%

Nippon Oil Mitsubishi OilKyusyu Oil Japan EnergyIdemitsu Cosmo OilShowa Shell MobilEsso General OilKignus Oil Taiyo OilOthers

FCF improvements through consolidation & investment discipline

Added to position


TDK

16

TDK relative to Topix Index TDK Operating profits by business (Y bil)*

Source: Schroders, Thomson Datasteam as at 30 April 2018. *Note: FY16 figures excludes one-time gains (sales of RF business) and losses (restructuring charges). Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell. Forecast risk warning: Please see the information slide at the end of this presentation.

70

80

90

100

110

120

130

140

150

160

170

Jan

13

May

13

Sep

13

Jan

14

May

14

Sep

14

Jan

15

May

15

Sep

15

Jan

16

May

16

Sep

16

Jan

17

May

17

Sep

17

Jan

18

TDK relative to Topix Index

Trimmed positions as our thesis began to play out

Rebased to100

-100

-50

0

50

100

150

200

FY11 FY12 FY13 FY14 FY15 FY16 FY17e FY18e FY19e

Eliminations OthersSensors Film productsApplied Magnetics Passives componentstotal

Business transformation leading stable & sustainable earnings growthPast performance is not a guide to future performance and may not be repeated.

Started new position in Toyota Industries – trades at a discount to the market value of its shareholdings, whilst key business lines should benefit from growth in E-commerce and EVs

17

Breakdown of OP 3/17 (Daiwa estimate) Market value of Toyota Industries shareholders and enterprise value of materials handling equipment

Source: Schroders, Daiwa Securities, as at 30 April 2018. Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.


9

21

70

Others Compressors Material Handling equipment

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

03/4 04/10 06/4 07/10 09/4 10/10 12/4 13/10 15/4 16/10 18/4

(Y bn)

Market value of Toyota Industries’ shareholdings – net interest-bearing debt + estimated EVs of material-handling equipment/compressor opsMarket value of Toyota Industries’ shareholdings – net interest-bearing debt + estimated EV of material-handling equipment ops

Market value of Toyota Industries’ shareholdings – net interest-bearing debt

Overweight/underweight positions %

Active sector positions – Schroder Tokyo FundAs at 30 April 2018

18

Source: Schroders FactSet. Fund position less benchmark weight. Based on unaudited data. Sectors shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

3.8

3.0

2.2

2.1

-1.7

-1.8

-3.5

-3.6

Land Transportation

Insurance

Rubber Products

Retail Trade

Other Products

Information & Communication

Foods

Services

7.8

5.2

3.0

7.0

0.5

5.6

0.9

0.7

% of portfolio Underweight Overweight

Overweight positions (%) Underweight positions (%)

Active stock positions – Schroder Tokyo FundAs at 30 April 2018

19

Source: Schroders FactSet. Fund position less benchmark weight. Based on unaudited data. Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

2.4

2.4

2.3

2.1

2.0

2.0

1.9

1.9

1.8

1.7

Bridgestone

TDK Corp

Sankyu Inc

SK Kaken

SMFG

Mitsui & Co

Japan Airlines

KDDI Corp

East Japan Railway

Hi-Lex Corp

-1.5

-1.4

-1.3

-1.0

-0.9

-0.8

-0.8

-0.8

-0.8

-0.8

SoftBank

Sony Corp

Keyence Corp

Mizuho Financial Gp

Fanuc Corp

Nintendo Co Ltd

Mitsubishi Corp

NTT DoCoMo

Kao Corp

Shin-Etsu Chemical

UnderweightOverweight

Style Research Skyline

Fund risk characteristics – Schroder Tokyo FundAs at 30 April 2018

20

Source: Schroders PRISM inc cash. Based on unaudited data. Figures from Style Research unless otherwise stated.

Schroder Japan Growth Fund plc

Schroder Japan Growth Fund plc - performanceAs at 30 April 2018

22

Source: Schroders, Morningstar, cum-income NAV with dividends reinvested . *Inception date 11 July 1994 . The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested. The fund holds investments denominated in currencies other than sterling, changes in exchange rates will cause the value of these investments, and the income from them, to rise or fall.Source of ratings: Morningstar, as at 30 April 2018. Please refer to the Morningstar disclaimer in the important information at the end of this document.

Fund size: £326.3m

Benchmark: Tokyo Stock Exchange 1st Section Index (TOPIX) (Total

Return)

Net gearing: 13%

Number of holdings: 87


Returns in GBP

Schroder Japan Growth -0.7 +13.8 +12.3 +12.5 +4.0

TSE 1st Section Index (TOPIX) +0.6 +13.4 +13.2 +11.2 +1.8

Relative -1.3 +0.4 -0.9 +1.3 +2.2

3 months

(%)

3 year

(%p.a.)

5 year

(%p.a.)

Since inception

(%p.a.)*

1 year

(%)

Schroder Japan Growth Fund plc

23

Source: Schroders, Morningstar, cum-income NAV with dividends reinvested.

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.

Schroder Japan Growth Fund plc – risk factors:

• Currency risk : The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses.

• Equity risk : Equity prices fluctuate daily, based on many factors including general, economic, industry or company news.

• Liquidity risk : In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares.

• Operational risk : Failures at service providers could lead to disruptions of fund operations or losses.

Returns in GBP

Schroder Japan Growth plc +21.5 -8.2 +5.7 +32.9 +7.0 +17.9 +23.0 +16.1

TSE 1st Section Index (TOPIX) +19.5 -11.9 +2.8 +24.6 +2.7 +18.2 +23.4 +15.6

Relative +2.0 +3.7 +2.9 +8.3 +4.3 -0.3 -0.4 +0.5

2017(%)

2016(%)

2015(%)

2010(%)

2012(%)

2013(%)

2014(%)

2011(%)

Fund premium/discount1 Relative performance vs. TOPIX2

Strong record of long-term outperformanceAs at 30 April 2018

24

90

100

110

120

130

140

150

160

170

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

1Source: Bloomberg, Premium/discount is calculated as the fund’s share price as a percentage of NAV.2Source: Schroders, Thomson Reuters Datastream. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested.

-40-20

020406080

100120140160180200220240

Jul-1

994

Jan-

1996

Jul-1

997

Jan-

1999

Jul-2

000

Jan-

2002

Jul-2

003

Jan-

2005

Jul-2

006

Jan-

2008

Jul-2

009

Jan-

2011

Jul-2

012

Jan-

2014

Jul-2

015

Jan-

2017

% Premium/Discount Price Net Asset Value

AppendixInvestment process

Research resourceDeep knowledge and experience of sector specialist

26

Source: Schroders, as at 31 March 2018.

Large and Mid Cap AnalystYears of

Investment Experience

SchrodersCareer

Real Estate, Electric Power and Gas, Housing Construction, Plant Construction, Other Financials Masaaki Nishikori 20 18

Machinery, Transport Equipment, Rubber Products Tetsuo Iwashita 28 11

Telecommunication, Media, Printing, Amusement, Service, Software, Internet Akira Namegawa 26 18

Pharmaceutical, Foods, Toiletry Products Madoka Sato 25 31

Banks, Securities, Insurance Kazuko Yabutani 18 17

Air, Land and Marine Transport, Warehouse, Retail Hiromi Mori 15 11

Precision, Consumer Electronics, Electronic Components, Industrial Electronics, Semiconductor Production Equipment, Glass and Ceramics Takafumi Miura 7 2

Wholesale, Non-ferrous Metals, Oil, Chemical, Iron&Steel Joshua Bennison 3 1>

Small Cap Fund Manager/Analyst

Services, Healthcare, Housing/Real Estate, Transportation, Electronic Components, Consumer Goods, Specialty Retailer, Financials Ayumi Kobayashi 24 14

Materials, Chemicals, Capital Goods, Foods (Materials), Restaurants, Constructions, Transportation Equipment Takuya Furutani 23 14

Electrical Appliances, IT Services, Media, Internet Kota Takahashi 12 5

Research structureResource is committed to areas of greatest potential added value


2,308 Company Contacts in 2017

Large and Mid Cap Stocks

– Unbiased– Cover larger size

c.400 stocks

Small Cap Stocks– Cover stocks with

market cap smaller than top c.400 stocks

– Buy list of c.200 companies

Large and Mid Cap Analyst

– 8 sector analysts– Average 18 years’

experience

Small Cap Team– 3 Specialists– Average 20 years’

experience

27

Research universedetermine fair

value and rating

Discussstock ideas and sector

views

Bottom-up approach based on in-house research

Strong valuation discipline with contrarian bias

Long-term approach with low turnover

Typically overweight in mid & small caps

Schroder Tokyo Fund Key features


1

2

3

28

4

Investment process summaryIdea generation from in-house research


29

Analyst researchMarket cap

Top 400 stocks+ Small cap

Research discussionStock ideas and sector

views

Portfolio construction

Fund managers meeting

exchange views

Trade execution and risk control

Stock selection Portfolio construction and risk management

Fund Manager research

Net cash adjustment

Profit cycle adjustment

Fair value

Quality ranking criteria:– Growth– Quality of earnings– Financial strength– Management– Shareholder focus

Fund managers and analysts discuss fair values and stock grading proposed by analysts

Fair value modelConsistent valuation discipline

30


EPS (FY3)Analysts’ earnings forecasts

Market PER(FY3)

Qualitative analysisPremium/discount

– Research recommendations are the key input to the portfolio construction process

– The greater the level of conviction in a recommendation (grades 1 – strong buy and 4 – strong sell) the more closely this is reflectedin portfolios

Portfolio: combined active positions by stock grading

Research recommendations drive portfolio constructionPositions by stock grading

31

Source: Schroders. *Active positions for Schroder Tokyo Fund at 31 March 2018.

-50% -30% -10% 10% 30% 50%

Not graded

Grade 4

Grade 3

Grade 2

Grade 1

Overweight Underweight

Total active position*

Buy

Sell

SummarySchroder Tokyo Fund

32

Source: Schroders, as at 31 March 2018

Strong and experienced Japanese Equity Team

Long-term, bottom-up, research-driven process with consistent valuation discipline

The successful application of our process is evident in our performance record

1

2

3

Thank you

Disclaimer

34

For professional advisers only. This material is not suitable for retail clients.

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 amount originally invested.

Schroders has expressed its own views and these may change. The data contained in this document has been sourced by Schroders and should be independently verified before further publication or use. 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 Unit Trusts Limited (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. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions.

The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any errors of fact or opinion and assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts and assumptions may be affected by external economic or other factors.

Disclaimer

35

Source for ratings: The Adviser Centre, Morningstar, City Financial, Fund Calibre, Square Mile and Rayner Spencer Mills, as at 30 April 2018.

© 2018 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to: http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf

Issued in May 2018 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No. 4191730 England. Authorised and regulated by the Financial Conduct Authority. JE00198

http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf

ContactAdvisory sales desk: +44 (0) 207 658 3894

Asset Manager sales desk: +44 (0) 207 658 3210

Schroder Investment Management Limited,

31 Gresham Street, London EC2V 7QA.

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