January 2014. Above awards were won by the London office. *Schroder International Selection Fund is referred to as Schroder ISF Presentation for professional investors or advisors only

A Multi-Asset

Approach to

Income Investing

0

500

1,000

1,500

2,000

2,500

1950 1975 2000 2025 2050

Population aged over 60 from 1950 – 2050 US real interest rates

The demand for income A response to demographic and structural pressures

2

Sources: LHS: Bloomberg, Schroders 1971 – 2013; RHS: “World Population Ageing 1950-2050”, Population Division, DESA, United Nations.

Millions %

-5

0

5

10

15

20

25

1971 1977 1983 1989 1995 2001 2007 2013

US Inflation (yoy%) US Interest Rates (%)

An income solution Maximising the benefits of diversification and flexibility

Sources: Schroders, DataStream, 31 December 2013, volatility annualised standard deviation of 5 year monthly returns, DataStream Generic US 10 year, Bank of America Merrill

Lynch Global Credit (USD), Bank of America Merrill Lynch Global High Yield Constrained (USD), JP Morgan GBI–EM Global Diversified Composite (USD), JPM EMBI Global

Composite, MSCI World High Dividend Yield (USD). Global Multi-Asset Income portfolio is calculated using five years of monthly data based on the realised annualise volatility

since inception and simulated volatility prior to inception. See disclaimer for detail of the simulation methodology.

EMD (Local FX)

MSCI World High Dividend Yield $

US 10 Year Dec 2013 Global Investment Grade Bond Index

Global High Yield Bond Index EMD $

US 10 Year June 2007 Global Multi-Asset Income Portfolio

0

1

2

3

4

5

6

7

8

0 2 4 6 8 10 12 14 16 18 20

Representative central bank target inflation rate

3

Current yield and volatility of asset classes

Current yield (%)

Volatility (%)

Approach for

Income Investing

Investment Features

Schroder ISF Global Multi-Asset Income Focus on sustainable income

5%* distribution in monthly or quarterly payments

Estimated 7%** total return p.a. with a target realised volatility of 5–7% p.a. (maximum 10% p.a.)

Directly invested in diversified, global sources of income

Launched in April 2012

$4bn in AUM from across Europe, Asia, Middle East and Latin America

5

*The fund intends to make regular fixed distributions to investors and, if its income is insufficient to cover these payments, these payments may reduce the fund’s capital

The target 5% distribution is formally reviewed on an annual basis. **This is a target only and is not guaranteed

How we ensure sustainability Guiding principals

Sustainable income Core to our philosophy

6

Up to 20 asset classes

Universe of 25,000+ potential

securities

Diversification

Strong balance sheets and stable

cash flows

Maximum 5% exposure to CCC

Quality

Direct investments in liquid, listed

securities

No loans or private equity

Liquidity

Global

Unconstrained Flexible

Schroder

ISF Global

Multi-Asset

Income

Global opportunity set Taking advantage of opportunities wherever they exist

7

Average

yield (%)

Europe

5.7

North America

5.7

South America

7.3

Asia Pacific

4.9

Africa

5.6

Philip Morris

Czech yield 8.2%

P/E 12

International US

dividend yield of

4.3% P/E 17

Vikings River

Cruises

8.9% yield

Net revenue up

67% y/y

Vale SA

P/E 16.6

Est EPS 5.1

5y div growth:

11.5%

Thai Tap Water

4.8% dividend yield

Inflation linked

returns

Revenue growth

8% p.a.

Woolworths

Holdings

Yield 3.15%, ROE

50.3

P/E 22.2

Global

Source: Schroders, as at 31 December 2013. Securities mentioned are for illustration purposes only and should be considered investment advice.

Unconstrained approach Allows unwanted risk to be minimised

Source: Schroders, iShares, as at September 2013 *SPDR as at 30 August 2013

Hidden exposures Schroder ISF Global Multi-Asset

Income

DJ Select Dividend 28% US utilities 0.8% US utilities

S&P International Dividend 27% Australian equities, 18% telecoms 2.1% Australian equities, 6.0% telecoms

S&P EM Dividend 22% Brazilian equities, 19% utilities* 0.4% Brazilian equities, 6.1% utilities

iBoxx Global DM High Yield 12.4% CCC or unrated 4.0% CCC or unrated

iBoxx USD Liquid Investment

Grade 33% financials, 8 years of duration 4.2% banks, 3.5 years of duration

JPM EMBI Global Core 6.7% Russian bonds, 4.9% Venezuelan

bonds

0.6% Russian bonds, 0.3% Venezuelan

bonds

Uncon- strained

8

Security selection A better risk-adjusted yield than traditional indices

9

Sources: Schroders, BarraOne, Bloomberg, Datastream, 29 November 2013. Please note Schroder ISF Global Multi Asset Income is referred to as GMAI above. Volatility is using

5 year monthly standard deviation (p.a.%) for indices and BarraOne for sub-portfolio risk.

Targeting improved yield and reduced volatility through unconstrained quality investments

As at 29 November 2013 Yield % Volatility % Risk Adjusted Yield

World High Yield Equity (MSCI AC) 3.9 18.4 0.21

GMAI QEP Equity 4.5 15.5 0.30

Global High Yield Bond Index (ML) 6.0 9.7 0.62

GMAI US High Yield Debt 5.5 7.4 0.74

GMAI European High Yield Debt 5.6 13.6 0.40

EM USD Debt Index (JPM) 6.3 8.7 0.72

EM Local Debt Index 6.8 13.6 0.50

GMAI EM Local 8.4 9.2 0.91

GMAI EM USD Corporates 6.8 9.4 0.71

GMAI Fund 5.1 7.6 0.67

Uncon- strained

Flexible across and within asset classes Generating income

10

0%

10%

20%

30%

40%

50%

60%

70%

Equity HighYield Debt

InvestmentGrade

EMUSD

EMLocal

Alternatives Cash

Potential Range Current Weight Actual Range Since Inception

Source: Schroders, as at 31 December 2013. the ranges shown are for physical exposures while tactical overlays may increase or decrease the overall exposure. Alternatives

exposure consists of Municipal bonds, infrastructure and property. Investment grade potential range is shown excluding municipal bonds.

Flexible

Flexibility in managing risk Managing duration through 2013

Source: Schroders, 31 December 2013

Global

Unconstrained Flexible

Effective duration

11

0

1

2

3

4

5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

End June End

August

November

Years

Flexible

Schroder ISF Global Multi-Asset Income

Schroder ISF Global Multi-Asset Income Performance Total return since inception

90

95

100

105

110

115

120

Apr-12 Sep-12 Feb-13 Jul-13 Dec-13

Schroder ISF Global Multi-Asset Income US 10 Year 70/30***

12 Schroder ISF Global Multi-Asset Income | January 2014

Source: Datastream, Bloomberg, 31 December 2013, A Acc share class, net of fees. *Cumulative performance since inception date of 18 April 2012. Volatility is calculated using

daily returns since inception. **Yield is the next 12 months dividend yield using Schroders’ forecasts for the equities and using the current effective yield to maturity for the fixed

income; it is gross of withholding tax. ***70/30 benchmark is 70% JP Morgan GABI & 30% MSCI World AC

USD 2013

%

Since Inception*

%

Yield**

%

Schroder ISF Global Multi-Asset Income A Acc 5.8 13.6 5.1

Annualised Volatility

Global Multi-Asset Income 4.3%

2014 Outlook

The economic recovery is gaining momentum But there are diverging cycles across regions

14

Source: Schroders, December 2013. For illustrative purposes only and should not be viewed as a recommendation to buy or sell The views and opinions contained herein are those of the Fund Manager

BUBBLE (Growth momentum fading,

strong credit growth for an

extended time)

CRUNCH (Slowing growth, rising

defaults, wide credit spreads)

STABILISATION (Low growth, deleveraging,

defaults off the peak)

RELEVERAGING (Positive growth,

M&A up, low defaults,

lending picking up)

Historical context for US treasuries 2013: 4th worst year since 1900

15

Source: Thomson Datastream, Global Financial Data, Schroders. 20 December 2013

2012

2004

2001 Positive years : 97 (85%)

1983 Negative years : 17 (15%)

1974

1973

2006 1964

2005 1954

2003 1949

1996 1948

1980 1939

1979 1938

1977 1935

1972 1930 2010

1968 1929 2007

1965 1923 1992

1963 1920 1990

1961 1918 1988

1953 1917 1981

1952 1916 1975

1987 1946 1915 1966

1978 1944 1914 1957

1967 1943 1913 1945

1959 1942 1912 1940 2002

1958 1941 1911 1936 2000

1956 1937 1910 1934 1998

1955 1933 1908 1932 1997

2013 YTD 1951 1928 1906 1927 1993 2011

2009 1950 1909 1905 1926 1984 1991

1999 1947 1907 1903 1925 1971 1989 2008

1994 1931 1904 1901 1924 1960 1976 1995

1969 1919 1902 1900 1922 1921 1970 1986 1985 1982

-10 to -5 -5 to 0 0 to 2.5 2.5 to 5 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35

Nominal total returns, %

-3

-2

-1

0

1

2

3

4

1976 1981 1986 1991 1996 2001 2006 2011

US yield curve steepness offers protection Further 10 year US Treasury yield rise may require interest rate increase

Source: Bloomberg, Schroders. Spread between the 10 year and 2 year nominal bond yield from June 1976 to December 2013.

16

%

10 year – 2 year US Treasury spread at record high

Equities: 5 years of positive returns What does that mean for 2014?

17

Source: Global Financial Data, Thomson Datastream, Schroders, 30 September 2013

1931

2008

1937

2002

1974

1930

1917

1907

2001

1973

1966

1957

1941

1940

1920

1903

1893

1890

1884

1876

2000

1990

1981

1977

1969

1962

1953

1946

1939

1934

1932

1929

1914

1913

1910

1887

1883

1877

1873

2011

2007

2005

1994

1992

1987

1984

1978

1970

1960

1956

1948

1947

1923

1916

1912

1911

1906

1902

1899

1896

1895

1894

1892

1889

1888

1882

1881

1875

1874

2010

2006

2004

1993

1988

1986

1979

1972

1971

1968

1965

1964

1959

1952

1949

1944

1926

1921

1909

1905

1901

1900

1897

1886

1878

1872

1871

2009

2003

1999

1998

1996

1983

1982

1976

1967

1963

1961

1951

1943

1942

1925

1924

1922

1919

1918

1898

1891

1885

1880

1997

1995

1991

1989

1985

1980

1975

1955

1950

1945

1938

1936

1927

1915

1904

1958

1935

1928

1908

1879

1954

1933

2001

2000

1974

1975

2003

1931

1930

2012

2013

-50 -40 -30 -20 -10 0 10 20 30 40 50 60

Nominal % total return

2002

Post 2008 crisis

Post 2001 crisis

2008 crisis

Pre 2001 crisis

Merrill Lynch Fund Managers Survey Shiller S&P 500 P/E Ratio

Equity positioning and valuation Potential for increased volatility in 2014

Source: LHS: Merrill Lynch Global Fund Manager Survey; RHS: Schroders, 28 November 2013

18

-60

-40

-20

0

20

40

60

80

80

85

90

95

100

105

110

115

120

125

130

2001 2003 2005 2007 2009 2011 2013

Net % overweight equities

Global equities vs. benchmark return

0

5

10

15

20

25

30

35

40

45

50

1900 1914 1928 1942 1956 1970 1984 1998 2012

Cyclically Adjusted P/E Ratio (Shiller PE) Average

Optimistic

Pessimistic

Expensive

Cheap

Fixed income valuations High yield and investment grade spreads compressing

Less value in investment grade

Value appearing in emerging market debt, but caution required

Source: IMF Fiscal Monitor (October 2013), Schroders. 28 November 2013

19

0

250

500

750

1000

1250

1500

1750

2000

2006 2008 2010 2012 2014

JPM EMBI + Spread US HY Spread US IG Spread

0

5

10

15

20

25

30

35

40

Equity

US

Hig

h Y

ield

EU

R Inv G

rade

Local E

MD

EU

R H

igh Y

ield

US

Inv

Gra

de

US

D E

MD

So

v

US

D E

MD

Corp

Asia

Inv

Gra

de

Pro

pert

y

Mun

icip

al B

onds

Infr

astr

uct

ure

Cash

& Incom

e

Schroder ISF Global Multi-Asset Income Positioning and yield by asset class

20

Source: Schroders, 31 December 2013. The equity allocation represents the QEP portfolio and the equity indexing. It does not include put options with a delta-adjusted exposure

of -0.7%. The investment grade allocation does not include futures held with an exposure of -19.7%. * Yield is the next 12 months dividend yield using Schroders’ forecasts for the

equities and using the current effective yield to maturity for the fixed income; it is gross of withholding tax.

Asset Class Yield

Local EMD 8.4%

Property 7.3%

EMD USD Sovereign 7.0%

EMD USD Corp 6.8%

EUR High Yield 5.6%

Municipal Bonds 5.5%

US High Yield 5.5%

Infrastructure 4.9%

Asia Investment Grade 4.7%

EUR Investment Grade 4.6%

Equity 4.5%

US Investment Grade 4.5%

Fund Yield* 5.1%

Equity

37% Fixed Income

56%

Alternatives

5%

Cash

3%

Physical Exposure (%)

Schroder ISF Global Multi-Asset Income

Application of guiding principals critical for 2014 Navigating volatility through QE tapering and stretched valuations

Source: Schroders, December 2013

21

Breadth of universe important when economic recovery faces diverging cycles

across regions

EM facing structural reforms – requires careful country selection and hedging

of EM FX

Flexibility required to manage duration, while investment grade valuations less

favourable

Opportunities seen in municipal bonds, lower duration EMD USD sovereign

Equities: focus on earnings growth to avoid potential bubbles (cyclicals

becoming more attractive)

US high yield: limited exposure to CCCs and favouring B rated securities

Global

Uncon- strained

Flexible

Offers a complete solution to the income problem - to provide extra income:

retirement

planning for university

wherever a consistent income is a key requirement.

Allowing client to ‘re-risk’ portfolio’s away from bond heavy allocations into a

Multi-Asset solution

Lower risk strategy for Portfolio Bonds and Pension transfers

“Lifestyling” within a pension portfolio

Cash plus strategy in a low interest rate environment

f

22

Which type of client might this be suitable for?

Schroder ISF Global Multi-Asset Income

ISIN Codes Schroder ISF Global Multi-Asset Income & Schroder ISF Diversified Growth

23

Class Name Class Dis or Acc Currency ISIN

Schroder ISF Global Multi-Asset Income

A

Acc

USD

LU0757359368

Schroder ISF Global Multi-Asset Income

A

Dis

USD

LU0757359954

Schroder ISF Global Multi-Asset Income GBP Hedged

A

Acc

GBP

LU0903425840

Schroder ISF Global Multi-Asset Income GBP Hedged

A

Dis

GBP

LU0910996080

Schroder ISF Global Diversified Growth USD Hedged

A

Acc

USD

LU0776412461

Schroder ISF Global Diversified Growth GBP Hedged

A

Dis

GBP

LU0776411810

Joined Schroders in May 2011 as a fund manager in the multi-asset team and as a member of the Global Asset

Allocation Committee. His focus is on complex segregated mandates and on further enhancing our approach to tactical

asset allocation

Prior to joining Schroders Aymeric was Global Head of Global Investment Solutions at BBVA in Madrid

being responsible for multi asset products such as individual and corporate pension funds, balanced and dynamic asset

allocation solutions and life cycle funds

From 2002 to 2009 he worked in London at ABN AMRO Asset Management, Fortis Investments (merger in 2008) and

then BNP Paribas Investment Partners (merger in 2009). Within the TAA and Balanced team, he was Senior Portfolio

Manager and Head of Tactical Asset Allocation Research until 2008 and then Head of Tactical Asset Allocation

Quantitative Strategies dedicated to absolute return strategies

From 1999 to 2002 Aymeric was Institutional Portfolio Manager at Dexia Asset Management in Paris and Luxembourg.

He also held various Junior equity positions from 1996 at KTL Luxembourg and Kempf Bfsc (small capitalisations)

CFA Charterholder, DESS and Master degree in Finance, Nancy 2 (France), Giessen (Germany), Lund (Sweden)

Aymeric Forest – Multi-Asset Fund Manager

Biographies

Responsible for the management of a number of multi-asset mandates that are principally focused on income and

dynamic asset allocation

Specialises in currency and commodity research and is a member of the Strategic Investment Group Multi-Asset

(SIGMA)

Investment career commenced in 2007 upon joining Schroders

Chartered Financial Analyst

Masters in Economics and Finance, Bachelors in Economics, Loughborough University

Iain Cunningham – Multi-Asset Fund Manager

24

Schroder ISF Global Multi-Asset Income - Fund Managers

Schroder ISF Global Multi-Asset Income | October 2013

Important Information:

This document 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 document 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 Key Investor Information Document and 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.

An investment in the Company entails risks, which are fully described in the prospectus.

Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors

may not get the amount originally invested.

Schroders has expressed its own views and opinions in this document and these may change.

This document is issued by Schroder Investment Management Ltd., 31, Gresham Street, EC2V 7QA, who is authorised and regulated by the

Financial Conduct Authority. For your security, all telephone calls are recorded

MSCI

Third party data is owned or licensed by the data provider and may not be reproduced or extracted and used for any other purpose without the data

provider's consent. Third party data is provided without any warranties of any kind. The data provider and issuer of the document shall have no liability in

connection with the third party data. The Prospectus and/or www.schroders.com contains additional disclaimers which apply to the third party data.

For Middle East only: Schroder Investment Management Limited is regulated by the Dubai Financial Services Authority (“DFSA”) and entered on the

DFSA register under Firm Reference Number: F000513. This document is intended for ‘professional clients only’, as defined by the DFSA Rules which

can be accessed from their website www.dfsa.ae. This document relates to a Fund which is not subject to any form of regulation or approval by the

DFSA. The DFSA has no responsibility for reviewing or verifying any document in connection with this Fund. Accordingly, the DFSA have not approved

this document nor taken any steps to verify the information set out in this document, and has no responsibility for it.

For UAE Only: This document does not constitute a public offer of securities in the United Arab Emirates. Mutual Funds may be offered to a limited

number of sophisticated investors, as defined by the Securities and Commodities Authority Board Decision no. (13) of 2013.

Important information

25

Simulation:

The simulation was calculated using a fixed weighting of 20% equity, 37.5% corporate bonds, 17.5% high yield bonds, 7.5% EM corporate bonds, 7.5%

EM sovereign bonds and 10% EM USD bonds. Transaction costs are not included. The calculation methodology for the equity and fixed income

components are outlined below:

Fixed income

To calculate the fixed income element of this simulation we have used Barclays POINT to analyse a model portfolio composed of the fixed allocation in

terms of risk factors. This combination of risk factors is then used to estimate the price return series of the portfolio through time. We then added the

average yield over the same period of the standard indices of the fixed income components of the portfolio to obtain the total return series.

Equity

The simulation was calculated using QEP’s quantitative methodology using a global equity universe. The simulation constructs a portfolio of high quality

high dividend payers, using metrics such as interest coverage, free cash flow and price to earnings, whilst also focusing on value and avoiding dividend

cutters. The simulation was constructed to meet a minimum dividend yield of 2% in excess of the MSCI AC World High Dividend Index.

Important information

26

Risk considerations:

The capital is not guaranteed.

The fund intends to make regular fixed distributions to investors and, if its income is insufficient to cover these payments, these payments may reduce

the fund's capital.

All equity forward sales are with a single counterparty. In case of default, the relevant equities will be sold in the market and this may affect

performance.

Non-investment grade securities will generally pay higher yields than more highly rated securities but will be subject to greater market, credit and default

risk.

A security issuer may not be able to meet its obligations to make timely payments of interest and principal. This will affect the credit rating of those

securities.

Investments denominated in a currency other than that of the share-class may not be hedged. The market movements between those currencies will

impact the share-class.

Investment in bonds and other debt instruments including related derivatives is subject to interest rate risk. The value of the fund may go down if interest

rate rise and vice versa.

The Fund may hold indirect short exposure in anticipation of a decline of prices of these exposures or increase of interest rate.

The Fund may be leveraged by trading in a high volume of derivatives to achieve a risk target consistent with its risk profile

Important information

27