Schroder Alternative Solutions

Transcription

1 Schroder Alternative Solutions Semi-Annual Report - Hong Kong 31 March 2016 DP_SAS_SAR_MAY15

2

3 Schroder Alternative Solutions Société d Investissement à Capital Variable (SICAV) Semi-Annual Report 31 March 2016 No subscriptions can be received on the basis of periodical reports. Subscriptions are valid only if made on the basis of the current prospectus accompanied by the last available annual report or semi-annual report if published thereafter. Annual report and semi-annual reports, the current prospectus and the Articles of Incorporation of Schroder Alternative Solutions (the Company ) are available, free of charge, at the Company s Management Company, 5, rue Höhenhof, L-1736 Senningerberg, Grand Duchy of Luxembourg.

4

5 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Page 5 Contents Schroder Alternative Solutions Board of Directors Administration Directors Report Investment Manager s Report Notes to the Financial Statements Fund Performance Statement of Net Assets Portfolio of Investments Schroder AS Agriculture Fund Schroder AS Asian Long Term Value Fund * Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Schroder AS UK Dynamic Absolute Return Fund Appendix I - TER * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review.

6

7 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Schroder Alternative Solutions Page 7 The Company Schroder Alternative Solutions (the Company ) is an open-ended investment company organised as a société anonyme under the laws of the Grand Duchy of Luxembourg. The Company was incorporated on 6 October 2005 and exists for an indefinite period. During the period under review five funds were available for investment within Schroder Alternative Solutions (the Funds ). The details of investment objectives and investment restrictions for the Funds can be found in the Company s current prospectus. The Company constitutes a single legal entity, but the assets of the Funds are invested for the exclusive benefit of the shareholders of the corresponding Funds and are solely accountable for the liabilities, commitments and obligations of the Funds. The Directors may at any time resolve to set up new Funds and/or create within each Fund one or more classes of shares. The Directors may decide to make an application to list the shares on any other recognised stock exchange. This report covers the period from 1 October 2015 up to 31 March The last day on which prices were calculated was 31 March 2016, the last working day of the period under review. The financial statements are prepared in accordance with Luxembourg regulations related to undertakings for collective investment. Schroders is a FATCA compliant organisation. The FATCA classification of this entity and its GIIN is as follows: FATCA entity classification: FFI; Sponsoring entity: Schroder Investment Management (Luxembourg) S.A.; Sponsoring entity GIIN: 4RIMT SP.442. Hereafter, the names of the Funds will be preceded by Schroder AS, e.g., Schroder AS Commodity Fund. Corporate Governance The Company is subject to corporate governance based on: 1. Its obligations as defined by Part II of the Luxembourg law of 17 December 2010, as amended, on undertakings for collective investment and the Alternative Investment Fund Managers Directive 2011/61/EU, as implemented in Luxembourg law, which are available for inspection at the registered office of the Company at 5, rue Hohenhof, L-1736 Senningerberg, Grand Duchy of Luxembourg. 2. Its Articles of Incorporation which are available for inspection at the registered office of the Company and at the Luxembourg corporate and trade register, Registre de Commerce et des Sociétés ( RCSL ). 3. The obligations in respect of the management of the Company, for which the Company has appointed Schroder Investment Management (Luxembourg) S.A., which is subject to the requirements of the Management Company Directive 2010/43/EC and the Alternative Investment Fund Managers Directive 2011/61/EU, as implemented in Luxembourg law. 4. The Association of the Luxembourg Fund Industry ( ALFI ) code of conduct, which the Company has voluntarily adopted. Internal Control and Risk Management Systems The Board of Directors is responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company's financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board of Directors has contracted with the Management Company to put procedures in place to ensure all relevant accounting records are properly maintained and are readily available, including the production of annual and semi-annual reports. The annual and semiannual reports of the Company are required to be approved by the Board of Directors of the Company and filed with the Commission de Surveillance du Secteur Financier ( CSSF ) and, in the case of annual reports, with the Registre de Commerce et des Sociétés ( RCSL ). The annual statutory financial statements are required to be audited by independent auditors who report to the Board of Directors on their findings. The Board meets at least four times a year and ensures that the Company maintains high standards of integrity and control in its operations and that it possesses adequate governance and means of control as law and regulation demand.

8 Page 8 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Board of Directors Chairman Directors* Carlo Trabattoni Head of Pan European Intermediary Distribution and GFIG Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom Mike Champion Head of Product Development Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom Marie-Jeanne Chevremont-Lorenzini Independent Director 19, rue de Bitbourg 1273 Luxembourg, Grand Duchy of Luxembourg Jacques Elvinger Avocat Elvinger Hoss Prussen 2, place Winston Churchill 1340 Luxembourg, Grand Duchy of Luxembourg Daniel De Fernando Garcia Independent Director Serrano Madrid, Spain Achim Kuessner Country Head Germany, Austria & CEE Schroder Investment Management GmbH Taunustor 1 (Taunus Turm) Frankfurt am Main, Germany Ketil Petersen Country Head Nordic Region Schroders Denmark Filial af Schroder Investment Management ( Luxembourg) S.A. Store Strandstraede Copenhagen K, Denmark Neil Walton Head of UK Institutional Business Development Group Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom *Georges-Arnaud Saier resigned from the Board of Directors on 31 December 2015.

9 Administration Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Page 9 Registered Office Alternative Investment Fund Manager, Principal Paying Agent, Domiciliary Agent, Registrar and Transfer Agent Investment Manager Depositary bank and Fund Administrator Auditor Legal Advisers 5, rue Höhenhof, 1736 Senningerberg, Grand Duchy of Luxembourg Schroder Investment Management (Luxembourg) S.A. 5, rue Höhenhof, 1736 Senningerberg, Grand Duchy of Luxembourg Schroder Investment Management Limited 31, Gresham Street, London EC2V 7QA, United Kingdom Schroder Investment Management (Hong Kong) Limited Level 33, Two Pacific Place, 88 Queensway, Hong Kong J.P. Morgan Bank Luxembourg S.A. European Bank & Business Centre, 6, route de Trèves, 2633 Senningerberg, Grand Duchy of Luxembourg PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator, B.P. 1443, 1014 Luxembourg, Grand Duchy of Luxembourg Elvinger Hoss Prussen 2, place Winston Churchill, B.P Luxembourg, Grand Duchy of Luxembourg Simmons & Simmons CityPoint, One Ropemaker Street, London EC2Y 9SS, United Kingdom

10 Page 10 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Directors Report Introduction The directors of the company submit their report and the financial statements for the period ended 31 March Activities during the period On 31 March 2016, the total net assets of the Company were USD 1,065,813,107 compared with USD 1,184,698,326 on 30 September 2015, representing a decrease of 10.04%. During the period under review, 1 new Fund was made available for investment within the Company: 5 October 2015 Schroder AS Asian Long Term Value Fund In addition, the following share classes were liquidated: 17 December 2015 Schroder AS Gold and Precious Metals Fund I Acc CHF Hedged Schroder AS Gold and Precious Metals Fund I Acc RMB Hedged The Board of Directors Schroder Alternative Solutions 31 March 2016

11 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Investment Manager s Report Page 11 Economic review The early part of the period was dominated by speculation over the timing of the first rise in US interest rates since Having surprised markets by not raising rates in September 2015, following a bout of stockmarket volatility, the Federal Reserve (Fed) lifted rates by 25 basis points (bps) in December. However, following further significant stockmarket volatility around the turn of the year, the Fed emphasised that future increases would be gradual. US employment data remained largely robust over the period but there were fears that parts of the economy were coming under pressure. The ISM manufacturing index was in contraction for five consecutive months as a strong dollar, weak global growth and depressed energy sector weighed on US manufacturers. By contrast, monetary policy was eased further in Europe over the period. The European Central Bank (ECB) announced that it would expand its monthly quantitative easing purchases to 80 billion from 60 billion and would include some corporate bonds in the purchases. The ECB also cut its deposit rate further into negative territory (-0.4%) and announced a new series of targeted longer-term refinancing operations to support bank lending. The ECB s move came in response to still-lacklustre growth rates in Europe, as well as below-target inflation. Similarly, Japan introduced a negative deposit of -0.1% in an effort to encourage lending as economic activity indicators remained weak. In emerging markets, China also saw slowing growth, with GDP expanding by 6.8% in the fourth quarter of The central bank cut the reserve requirement ratio in response. Political factors were also to the fore over the six-month period. Brazil was a particular focus as more business and political figures were implicated in the Lava Jato scandal while the economy experienced its worst recession in 30 years. Impeachment proceedings were launched against President Dilma Rousseff. In Europe, the migrant crisis remained in the spotlight. Spain held elections which produced an inconclusive outcome. The UK called a referendum on its membership of the European Union, precipitating a decline in sterling. UK equity market review and outlook The FTSE All-Share returned 3.52% 1 over the period with the large cap FTSE 100 outpacing the mid-cap FTSE 250 index. Equities drew support from expectations that the first increase in UK base rates would be deferred. The resource sectors performed well as commodity prices rallied in tandem with the weakening dollar over the period, and Royal Dutch Shell and BG completed their merger. Sterling depreciated as the risk of a British exit from the European Union came into sharp relief after UK Prime Minister David Cameron called a referendum on the country s membership of the bloc. Weakness in the pound lent support to the miners, given their overseas earnings bases. However, concerns of a possible Brexit weighed on sentiment towards the financials. The banking sector was specifically impacted by the prospect of reduced net interest margins, were interest rates to remain lower for longer. Profit margins for UK firms are expected to remain under pressure from higher labour costs for domestically-focused firms, given the pick-up in wages and slowdown in productivity. The degree of fiscal tightening expected for 2016 will add downside risks to the UK economy, whilst the ongoing debate over EU membership continues to create market uncertainty. On the other hand, a weaker sterling should provide tailwinds for multinationals and some relief for UK corporate earnings. Commodity market review and outlook Commodity prices largely remained under pressure over the period and the Bloomberg Commodity Index returned -10.1% 2. The Brent crude oil price began the period at around $48 per barrel and ended at around $39 per barrel, having dipped below $30 in mid-january as output remained high even as demand waned 3. Hopes rose through the period of a deal between oil-producing nations to limit production. Certain agricultural commodities fared well, with sugar prices gaining strongly. Gold saw a strong rally in the latter part of the period as investors sought perceived safe havens amid the stockmarket volatility in early Industrial metals were pressured by expectations of reduced Chinese demand and oversupply in some segments. Within commodities, energy may gain support from signs that the pace of inventory growth has started to reverse. For industrial metals, there are signs that the Chinese authorities are easing but supply remains ample across most base metals. For agriculture, major grains are in abundant supply but prospects for adverse weather over the year are rising, which could be disruptive to future crop yields. Gold could find support as real yields continue to fall and inflation base effects are turning positive. The Investment Manager Schroder Alternative Solutions 31 March Source: DataStream, total return in sterling. 2 Source: Bloomberg, Bloomberg Commodity Index total return, US dollar 3 Source: Bloomberg

12 Page 12 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 The Company The Company is an umbrella structured open-ended investment company with limited liability and qualifies as an undertaking for collective investment ( UCI ) regulated by the provisions of Part II of the Luxembourg law of 17 December 2010, as amended, regarding undertaking for collective investment (the 2010 law ). The Company has been established for an undetermined period and may further issue several classes of shares in each sub-fund. The financial statements are prepared in accordance with Luxembourg regulations relating to undertakings for collective investments. Classes of Shares During the period under review, the following classes of shares were available for investment: Fund Schroder AS Agriculture Fund Schroder AS Asian Long Term Value Fund * Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund * Schroder AS UK Dynamic Absolute Return Fund Classes of Shares A, C, D & I Acc share classes A & C Dis share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A, C & I Acc GBP Hedged share classes A & C Dis GBP Hedged share classes A Acc SGD Hedged share class C, I and IZ Acc share classes A, C, D, I & X Acc share classes A, C, I & J Dis share classes A, C & I Acc CAD Hedged share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A, C & I Acc GBP Hedged share classes A & C Dis GBP Hedged share classes A Acc SGD Hedged share class I Acc JPY Hedged share class A, C, D & I Acc share classes A & C Dis share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A & C Dis GBP Hedged share classes A, C & I Acc RMB Hedged share classes A Acc PLN Hedged share class A Acc SGD Hedged share class C & R Acc share classes C & R Acc EUR Hedged share classes C & R Acc USD Hedged share classes Initial Charges The Management Company and Distributors are entitled to an initial charge, which can be partly or fully waived at the discretion of the Management Company or of the relevant Distributor. The initial charge attributed to each class of share is shown below: Initial Charge A Shares Up to % of the Net Asset Value per share C Shares Up to % of the Net Asset Value per share D, I, IZ, J, R and X Shares * None Minimum Subscription Amount, Minimum Additional Subscription Amount and Minimum Holding Amount The minimum subscription amount, minimum additional subscription amount and minimum holding amount for each class shown below are stated in the relevant currency although near equivalent amounts in any other freely convertible currency are acceptable. These minima may be waived at the Directors discretion from time to time. * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review

13 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Page 13 Minimum Subscription Amount, Minimum Additional Subscription Amount and Minimum Holding Amount (cont) Share Class Minimum Subscription Amount Minimum Additional Subscription Amount Minimum Holding Amount A Shares USD 10,000 USD 5,000 USD 10,000 C Shares USD 250,000 USD 125,000 USD 250,000 D Shares USD 10,000 USD 5,000 USD 10,000 I Shares USD 5,000,000 USD 2,500,000 USD 5,000,000 IZ Shares * USD 100,000,000 USD 20,000,000 USD 100,000,000 J Shares USD 5,000,000 USD 2,500,000 USD 5,000,000 X Shares USD 25,000,000 USD 12,500,000 USD 25,000,000 R Shares none none none Net Asset Value Calculation of Net Asset Value per Share The Net Asset Value per Share of each Class is calculated on each Dealing Day in the currency of the relevant class. It is calculated by dividing the net asset value attributable to each class, being the proportionate value of its assets less its liabilities, by the number of shares of such class then in issue. The resulting sum is rounded to the nearest two decimal places. Further details on rules that apply in valuing total assets can be found in the current prospectus. Valuation of the Assets of the Fund The value of securities, assets (including shares or units in closed-ended undertakings for collective investment) and financial derivative instruments is determined on the basis of the last available price on the stock exchange or any other Regulated Market on which these securities, assets or derivative instruments are traded or admitted for trading. Where such securities, assets or derivative instruments are quoted or dealt in one or by more than one stock exchange or any other Regulated Market, the Directors shall make regulations for the order of priority in which stock exchanges or other Regulated Markets shall be used for the provision of prices of securities, assets or derivative instruments. If a security or derivative instrument is not traded or admitted on any official stock exchange or any Regulated Market, or in the case of securities and derivative instruments so traded or admitted the last available price of which does not reflect their true value, the Directors are required to proceed on the basis of their expected sales price, which shall be valued with prudence and in good faith. Swaps contracts are valued at the market value fixed in good faith by the Directors and according to generally accepted valuation rules. Asset based swap contracts will be valued by reference to the market value of the underlying assets. Cash flow based swap contracts will be valued by reference to the net present value of the underlying future cash flows. Liquid assets and money market instruments held within the liquidity Funds are usually valued on an amortised cost basis. Each share or unit in an open-ended undertaking for collective investment is valued at the last available Net Asset Value (or bid price for dual priced undertakings for collective investment) whether estimated or final, which is computed for such units or shares on the same Dealing Day, failing which, it is the last Net Asset Value (or bid price for dual priced undertakings for collective investment) computed prior to the Dealing Day on which the Net Asset Value of the shares in the Company is determined. The value of any cash in hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued as aforesaid and not yet received are deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof is arrived at after making such discount as the Company may consider appropriate in such case to reflect the true value thereof. Any assets or liabilities in currencies other than the base currency of the Funds are converted using the relevant spot rate quoted by a bank or other responsible financial institution. Exchange Rate The exchange rate used for the calculation of the combined total in USD of the financial Statement as at 31 March 2016 is: 1 US Dollar = British Pound. * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review.

14 Page 14 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Realised gains and losses on sales of Investments Realised gains and losses on sales of investments in securities are determined on the average cost basis and include transaction costs. Taxation The Company is not subject to any taxes in Luxembourg on income or capital gains. The only tax to which the Company is subject in Luxembourg is the taxe d abonnement at a rate of up to 0.05% per annum based on the net asset value of each Fund at the end of the relevant quarter, calculated and paid quarterly. In respect of I, IZ*, J, R and X shares, which comprise only institutional investors, the tax levied is at 0.01% per annum. Changes in the Funds A list, specifying the total purchases and sales for each Fund, which took place during the period under review may be obtained free of charge upon request at the registered office of the Company. Cash Collateral Reinvestment For the purpose of counterparty risk mitigation, Funds with currency hedging transactions related to hedged share classes will pay or receive cash collateral on a daily basis from the counterparty, thus reducing their exposure over the duration of the forward contract. Investment Manager may reinvest the cash collateral received from the counterparty in connection with currency hedging, in line with the investment objectives of the fund. Collateral receivable or payable at the maturity date of the forward contracts are shown in the Statement of Net Assets as Hedged Currency Class Forward Contract Collateral Receivable/Payable. Collateral calls receivable or payable are shown in the Statement of Net Assets as Net Hedged Currency Class Forward Contract Collateral Calls Receivable/Payable. Forward Foreign Exchange Contracts Outstanding forward foreign exchange contracts were valued at the last available price at NAV calculation day by reference to the forward rate of exchange applicable to the maturity of the contracts. The unrealised appreciations/(depreciations) are shown in the Statement of Net Assets under Net unrealised appreciation/(depreciation) on forward foreign exchange contracts. On 31 March 2016, the following funds were committed to forward foreign exchange contracts: Unrealised Appreciation/ Currency Bought Currency Sold Maturity Date (Depreciation) Schroder AS Agriculture Fund Share Class Hedging CHF 27,500 USD 28, Apr EUR 62,400 USD 67, Apr ,189 EUR 171,300 USD 188, May ,729 EUR 9,053,300 USD 9,976, Jun ,813 EUR 254,400 USD 280, Jun ,660 EUR 110,000 USD 122, Jun ,271 EUR 233,700 USD 262, Jul ,319 GBP 39,900 USD 56, Apr GBP 2,444,600 USD 3,478, Apr ,682 GBP 40,200 USD 58, Apr-2016 ( 372 ) GBP 28,600 USD 41, May-2016 ( 12 ) SGD 2,381,600 USD 1,656, Apr ,226 SGD 2,955,600 USD 2,063, Apr ,749 SGD 75,100 USD 53, May ,504 SGD 67,700 USD 49, May ,213 SGD 56,000 USD 40, Jun SGD 104,800 USD 77, Jun USD 42,377 GBP 29, Apr-2016 ( 648 ) USD 279,229 SGD 391, Apr-2016 ( 12,468 ) USD 667,160 Schroder AS Commodity Fund Share Class Hedging CAD 315,600 USD 239, Apr ,275

15 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Page 15 Forward Foreign Exchange Contracts (cont) Unrealised Appreciation/ Currency Bought Currency Sold Maturity Date (Depreciation) Schroder AS Commodity Fund (cont) (cont) CHF 87,295,800 USD 89,756, Apr ,225,487 EUR 15,649,000 USD 16,706, Apr ,121,882 EUR 43,581,600 USD 47,034, Apr ,626,298 EUR 1,063,700 USD 1,171, May ,729 EUR 1,532,400 USD 1,677, May ,690 EUR 6,571,900 USD 7,239, May ,908 EUR 2,203,400 USD 2,462, Jun ,861 EUR 4,484,600 USD 4,951, Jun ,840 EUR 1,385,300 USD 1,529, Jun ,883 EUR 1,271,100 USD 1,421, Jun ,809 EUR 3,124,000 USD 3,510, Jul ,735 EUR 965,000 USD 1,095, Jul ,682 GBP 563,300 USD 789, Apr ,655 GBP 42,387,200 USD 60,322, Apr ,458 GBP 2,883,500 USD 4,114, Apr ,823 GBP 879,600 USD 1,252, Apr ,439 GBP 878,400 USD 1,264, May-2016 ( 360 ) JPY 729,600 USD 6, Apr SGD 756,800 USD 528, Apr ,015 SGD 509,900 USD 356, Apr ,762 SGD 8,562,400 USD 6,090, Apr ,501 SGD 3,505,800 USD 2,497, May ,443 SGD 8,935,900 USD 6,349, May ,339 SGD 2,327,300 USD 1,653, May ,979 SGD 1,563,100 USD 1,130, May ,965 SGD 962,500 USD 696, Jun ,478 SGD 852,400 USD 631, Jun ,203 SGD 486,400 USD 358, Jun ,835 SGD 339,300 USD 251, Jun ,445 USD 996,889 CHF 962, Apr-2016 ( 6,569 ) USD 14,288,848 EUR 12,934, Apr-2016 ( 446,493 ) USD 800,890 GBP 563, Apr-2016 ( 9,681 ) USD 3,598,002 GBP 2,538, Apr-2016 ( 54,453 ) USD 539,957 SGD 756, Apr-2016 ( 23,489 ) USD 369,450 SGD 509, Apr-2016 ( 10,161 ) USD 1,029,657 SGD 1,409, Apr-2016 ( 19,945 ) USD 6,778,338 Schroder AS Gold and Precious Metals Fund Share Class Hedging CHF 1,782,000 USD 1,832, Apr ,895 CNH 88,300 USD 13, Apr CNH 2,700 USD May EUR 119,800 USD 130, Apr ,122 EUR 151,900 USD 166, May ,908 EUR 73,900 USD 80, May ,425 EUR 3,787,400 USD 4,179, Jun ,816 EUR 267,300 USD 295, Jun ,130 EUR 449,700 USD 498, Jun ,401 EUR 293,800 USD 327, Jun ,841 EUR 217,200 USD 244, Jul ,014 EUR 215,500 USD 244, Jul ,608 GBP 15,200 USD 21, Apr GBP 1,115,100 USD 1,586, Apr ,712 GBP 1,031,500 USD 1,474, Apr ,002 GBP 47,200 USD 67, May-2016 ( 19 ) PLN 19,146,500 USD 5,041, Apr ,219 SGD 1,138,500 USD 789, Apr ,976 SGD 3,578,300 USD 2,498, Apr ,560 SGD 8,615,900 USD 6,024, Apr ,083 SGD 4,817,900 USD 3,428, Apr ,858

16 Page 16 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Forward Foreign Exchange Contracts (cont) Unrealised Appreciation/ Currency Bought Currency Sold Maturity Date (Depreciation) Schroder AS Gold and Precious Metals Fund (cont) SGD 9,504,800 USD 6,767, May ,320 SGD 821,900 USD 583, May ,992 SGD 740,700 USD 526, May ,225 SGD 1,792,600 USD 1,290, May ,320 SGD 1,040,000 USD 754, Jun ,905 SGD 1,388,300 USD 1,027, Jun ,216 SGD 560,600 USD 414, Jun ,388 USD 24,436 CHF 23, Apr-2016 ( 161 ) USD 133,629 EUR 119, Apr-2016 ( 2,881 ) USD 170,108 EUR 151, May-2016 ( 3,132 ) USD 34,724 EUR 31, May-2016 ( 641 ) USD 21,449 GBP 15, Apr-2016 ( 423 ) USD 67,453 GBP 47, Apr-2016 ( 1,328 ) USD 819,043 SGD 1,138, Apr-2016 ( 28,576 ) USD 2,323,150 SGD 3,185, Apr-2016 ( 48,342 ) 1,453,010 Portfolio Hedging CAD 1,898,000 USD 1,354, Apr ,224 USD 3,640,124 CAD 5,090, Apr-2016 ( 306,339 ) ( 189,115 ) USD 1,263,895 Schroder AS UK Dynamic Absolute Return Fund Share Class Hedging EUR 12,884,200 GBP 10,114, Apr ,850 USD 13,284,100 GBP 9,314, Apr-2016 ( 72,270 ) GBP 34,580 Futures Contracts Futures contracts were valued at the last available price at NAV calculation day. The unrealised appreciation/(depreciation) is shown in the Statement of Net Assets under Net unrealised appreciation/(depreciation) on futures contracts. On 31 March 2016, the following funds held open futures contracts: Maturity Date Quantity Contract Currency Long Position Market Price Unrealised Appreciation/ (Depreciation) Schroder AS Agriculture Fund Apr Rapeseed Euro Future EUR 1,913, ( 71,330 ) Apr SGX Technically Specified Rubber 20 Future USD 335, ,601 Apr SUGAR NO.11 (WORLD) Future USD 601, ,699 Apr White Sugar Future (ICE) USD 2,086, ,732 May Cocoa Future USD 509,542 2,932 18,218 May Cocoa Future (ICE) GBP 2,218,320 2, ,763 May Coffee 'C' Future USD 845, ,069 May Coffee Robusta Future (10-Tonne) USD 3,808,050 1, ,750 May Corn Future USD 14,583, ( 24,740 ) May Crude Palm Oil Future MYR 2,538,066 2,709 43,835 May Hard Red Winter Wheat Future (KCB) USD 956, ,000 May Lumber Future USD 4,268, ,831 May Mill Wheat Euro Future EUR 2,735, ( 379,664 ) May Oat Future USD 1,469, ( 117,425 ) May Rough Rice Future (CBOT) USD 2,105, ( 225,600 ) May SGX Technically Specified Rubber 20 Future USD 581, ,815 May Soybean Future USD 4,720, ,095 May Soybean Meal Future USD 2,664, ,000

17 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Page 17 Futures Contracts (cont) Maturity Date Quantity Contract Currency Long Position Market Price Unrealised Appreciation/ (Depreciation) Schroder AS Agriculture Fund (cont) (cont) May Soybean Oil Future USD 5,017, ,140 May Wheat Future (CBT) USD 11,481, ( 386,864 ) Jun Crude Palm Oil Future MYR 1,166,878 2,725 32,696 Jun Lean Hogs Future USD 1,519, ,575 Jun Live Cattle Future USD 3,613, ( 280,793 ) Jun SUGAR NO.11 (WORLD) Future USD 2,101, ,919 Jul Coffee 'C' Future USD 1,319, ,752 Jul Coffee Robusta Future (10-Tonne) USD 1,056,143 1,526 ( 18,463 ) Jul Corn Future USD 1,079, ( 4,388 ) Jul Cotton No.2 Future USD 9,502, ( 601,322 ) Jul Crude Palm Oil Future MYR 1,417,819 2, Jul Hard Red Winter Wheat Future (KCB) USD 516, ( 16,275 ) Jul Soybean Future USD 6,161, ,915 Jul Soybean Meal Future USD 1,029, ,790 Jul Wheat Future (CBT) USD 1,557, ( 4,125 ) Jul White Sugar Future (ICE) USD 2,463, ( 25,633 ) Aug Lean Hogs Future USD 400, ,951 Aug Rubber Future JPY 564,740, ,082 Sep Cocoa Future USD 546,981 2,932 ( 19,222 ) Sep SUGAR NO.11 (WORLD) Future USD 910, ( 16,406 ) USD 972,973 Schroder AS Commodity Fund Apr ,295 Brent Crude Future USD 51,107, ,281 Apr ,937 Crude Oil Future USD 74,360, ( 502,966 ) Apr Gasoline RBOB Future USD 2,386, ( 14,334 ) Apr LME ZINC Future USD 7,577,966 1, ,078 Apr Natural Gas Future USD 16,737, ,717 Apr NY Harb ULSD Future USD 22,406, ,117 Apr SGX Technically Specified Rubber 20 Future USD 884, ,314 Apr White Sugar Future (ICE) USD 3,469, ,496 May Brent Crude Future USD 16,376, ( 867,600 ) May Cocoa Future USD 6,697,327 2,932 ( 41,687 ) May Cocoa Future (ICE) GBP 1,663,740 2, ,572 May Coffee 'C' Future USD 3,500, ,100 May ,033 Corn Future USD 37,292, ( 63,267 ) May Crude Oil Future USD 27,602, ( 1,836,673 ) May Crude Palm Oil Future MYR 16,045,271 2, ,306 May LME PRI ALUM Future USD 6,760,688 1,493.5 ( 375,975 ) May LME ZINC Future USD 2,140,800 1, ,000 May Low Sulphur Gas Oil Future (ICE) USD 11,885, ,430 May Mill Wheat Euro Future EUR 1,736, ( 360,145 ) May Natural Gas Future USD 7,253, ,685 May SGX Technically Specified Rubber 20 Future USD 2,066, ,912 May Silver Future USD 29,016, ( 214,265 ) May Soybean Future USD 12,717, ,765 May ,121 Soybean Oil Future USD 21,208, ,592,630 May Wheat Future (CBT) USD 6,334, ( 242,324 ) Jun Crude Palm Oil Future MYR 7,553,999 2, ,662 Jun Gasoline RBOB Future USD 19,088, ( 637,186 ) Jun Live Cattle Future USD 5,913, ( 277,762 ) Jun LME COPPER Future USD 19,270,000 4, ,000 Jun LME LEAD Future USD 2,322,063 1,720 ( 43,062 ) Jun LME NICKEL Future USD 12,140,472 8,385 ( 418,242 ) Jun LME PRI ALUM Future USD 3,596,938 1,499 ( 36,812 ) Jun LME ZINC Future USD 3,424,085 1,790.5 ( 22,135 ) Jun SGX Technically Specified Rubber 20 Future USD 3,577, ( 59,544 ) Jun ,233 SUGAR NO.11 (WORLD) Future USD 20,111, ,763,404 Jul Coffee 'C' Future USD 8,732, ,846 Jul Coffee Robusta Future (10-Tonne) USD 9,127,470 1,526 ( 108,810 )

18 Page 18 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Futures Contracts (cont) Maturity Date Quantity Contract Currency Long Position Market Price Unrealised Appreciation/ (Depreciation) Schroder AS Commodity Fund (cont) (cont) Jul Corn Future USD 7,296, ( 29,655 ) Jul Crude Palm Oil Future MYR 8,707,450 2,708 6,629 Jul Platinum Future USD 11,550, ( 89,431 ) Jul Silver Future USD 7,014, ,949 Jul Soybean Future USD 7,283, ,194 Jul White Sugar Future (ICE) USD 4,068, ( 42,330 ) Aug Lean Hogs Future USD 5,303, ,972 Aug Natural Gas Future USD 19,880, ( 589,642 ) Aug Rubber Future JPY 100,511, ,864 Sep Cocoa Future USD 6,928,432 2,932 ( 243,472 ) Sep Natural Gas Future USD 6,497, ,418 Sep SUGAR NO.11 (WORLD) Future USD 4,241, ( 76,451 ) Dec LME COPPER Future USD 4,970,800 4,827 ( 867,850 ) Dec LME PRI ALUM Future USD 3,597,825 1,536 ( 641,025 ) Dec Silver Future USD 8,446, ( 68,016 ) Dec LME COPPER Future USD 3,740,100 4,847.5 ( 589,225 ) USD 1,493,455 Schroder AS Gold and Precious Metals Fund May Silver Future USD 2,614, ,579 Jun Gold 100 OZ Future USD 44,500,500 1,239.2 ( 508,900 ) Jul Platinum Future USD 987, ( 7,813 ) Dec Gold 100 OZ Future USD 5,018,900 1,245.7 ( 36,100 ) Jan Silver Future USD 3,393, ,950 Mar Silver Future USD 1,190, ( 16,312 ) USD ( 274,596 ) Schroder AS UK Dynamic Absolute Return Fund Jun CBOE Volatility Index Future USD 1,564, ( 101,724 ) GBP ( 101,724 ) Total Return Swaps The Company may use total return swaps. A total return swap is a bilateral financial contract which allows the Company to enjoy all of the cash flow benefits of an asset without actually owning this asset (the Reference Asset ). The Company will have to pay a periodic fee (fixed or floating payment) in exchange of its right to receive the total return of the Reference Asset (coupons or capital gains or losses). The Reference Asset can be almost any asset, index or basket of asset which constitutes an eligible investment for the Company. The Company may use such instruments to seek exposure to an eligible market or for hedging purposes. The Company will only enter into a total return swap transaction with highly rated financial institutions specialised in this type of transaction. In addition, the use of total return swap must comply with the investment objectives and policies and risk profile of the relevant Fund. The total commitments arising from the use of total return swaps together with the total commitments arising from the use of other derivative instruments may not, at anytime, exceed the net assets of the relevant Fund. The total return swaps were valued at the last available price on 31 March The unrealised gain or loss on total return swaps at period-end is represented by the values of interests to be received (or paid), based on relevant swap agreements interest rates less (or plus, respectively), the value of the performance to be paid (or received, respectively), based on the total return value of underlying assets, which is made of the current fair value of equities plus the dividend distributed for such equities for the relevant swap period. The unrealised appreciation/(depreciation) is shown in the Statement of Net Assets under Net unrealised appreciation/(depreciation) on total return swaps. On 31 March 2016, the following Fund was committed to total return swaps:

19 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Page 19 Total Return Swaps (cont) Description Counterparty Nominal Amount Currency Maturity Date Unrealised Appreciation / (Depreciation) Schroder AS UK Dynamic Absolute Return Fund Pay Interest + spread = % Receive Performance of the underlying British stocks (basket) Pay Performance of the underlying British stocks (basket) Receive Interest + spread = % UBS 20,506,600 GBP Jul ,964 UBS 22,979,443 GBP Jul 2017 ( 233,547 ) GBP 105,417 Options Contracts Options contracts were valued at the last available price on 31 March 2016 and the net market value is shown in the Statement of Net Assets under Net market value of options. On 31 March 2016, the following Fund was committed to outstanding options contracts: Par Value Subject to Call or Put Contract Counterparty Currency Premium Paid Market Value Unrealised (Depreciation) Schroder AS UK Dynamic Absolute Return Fund 250 Management Fees Put on FTSE 100 Index Strike Price 5, Expiring on 17-Jun-16 UBS GBP 357, ,750 (123,750) GBP 233,750 GBP (123,750) The Investment Manager is entitled to receive management fees as remuneration for its services. Such fees are calculated and accrued daily by reference to the Net Asset Value of the Funds and are paid monthly. The actual rates payable as at 31 March 2016, which vary from Fund to Fund and from share class to share class, are set out in the following table. Fund Share Class Management Fee Schroder AS Agriculture Fund A Shares 1.75% C Shares 1.25% D Shares 1.75% I Shares None Schroder AS Asian Long Term Value Fund * C Shares 0.75% Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Schroder AS UK Dynamic Absolute Return Fund I Shares None IZ Shares 0.75% A Shares 1.50% C Shares 1.00% D Shares 1.50% I, J & X Shares None A Shares 1.50% C Shares 1.00% D Shares 1.50% I Shares None C & R Shares 1.00% * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review.

20 Page 20 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Distribution fees Share Classes Distribution charge A, C, I, IZ, J, R and X Shares * No distribution charge D Shares Distribution charge of 1.00% per annum of the net assets of Funds Performance Fees In accordance with the provisions of the current prospectus, the Investment Manager is entitled to receive performance fees in addition to management fees. The performance fee is 10% of the increase in the Net Asset Value per share over the financial year (except for Schroder AS UK Dynamic Absolute Return Fund, for which it is set at 20%) and is payable annually in October. The performance fee becomes due in the event of outperformance, that is, if the Net Asset Value per Share at the end of the relevant performance period exceeds the High Water Mark, i.e. by reference to the Net Asset Value per Share at the end of any previous performance period (the High Water Mark). In addition if a Shareholder redeems or switches all or part of their Shares before the end of a performance period, any accrued performance fee with respect to such Shares will crystallise on that Dealing Day and will then become payable to the Investment Manager. The High Water Mark is not reset on those Dealing Days at which performance fees crystallise following the redemption or switch of Shares. The Funds in relation to which performance fees were calculated during the period under review and the details of the relevant Investment Managers are set out in the table below. Fund Investment Manager Share Classes Schroder AS Agriculture Fund Schroder Investment Management Limited All share classes except for the I and J classes Schroder AS Asian Long Term Value Fund * Schroder Investment Management (Hong Kong) Limited All share classes except for the I classes Schroder AS Commodity Fund Schroder Investment Management Limited All share classes except for the I and J classes Schroder AS UK Dynamic Absolute Return Fund Schroder Investment Management Limited All share classes Dividends The Directors declared the following dividends during the period under review: Record Date Ex-Dividend Date Payment Date Fund Currency Dividend per Share 24-Feb Feb Mar-2016 Schroder AS Commodity Fund J Distribution USD Information for Residents of the Hong Kong SAR Registration of Portfolios On 31 March 2016, Schroder AS Agriculture Fund, Schroder AS Commodity Fund and Schroder AS Gold and Precious Metals Fund were registered for sale in Hong Kong SAR. Soft Commission Arrangements Pursuant to the requirements of the Hong Kong Securities and Futures Commission regulations, the following statement is made: Soft commission arrangements have been undertaken in respect of the Company. Services which are paid for through or by soft commission were in majority limited to the following areas: a) Research, analysis or price information including computer or other information facilities; b) Portfolio valuations; or c) Performance measurement. * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review.

21 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Notes to the Financial Statements as at 31 March 2016 (cont) Page 21 Information for Residents of the Hong Kong SAR (cont) Transactions with Connected Persons The Company has entered into agreements and arrangements with Schroder Investment Management Limited and its affiliates, under which a management fee, performance fee, distribution fee and a transfer agency fee are payable. These agreements and arrangements have been entered into in the ordinary course of business and on normal commercial terms. Details on management fees, distribution fees and performance fees are set out in the respective sections above. In addition, the Management Company is entitled to receive the customary charges for its services as administration agent, coordinator, domiciliary agent, global distributor, principal paying agent and registrar and transfer agent. These fees are accrued daily at an annual rate of up to 0.4% by reference to the Net Asset Value of the relevant portfolio and are paid monthly in arrears. Further details on fees payable by the Company can be found in the current prospectus. No transactions of the Company were effected through a broker who is a connected person of the Management Company, the Investment Adviser or the Directors of the Company. Disclosure of Transaction Costs The transaction costs are broker commission fees and taxes related to the purchase and sale of transferable securities. The transactions costs for the period under review are as follows: Fund Currency Commissions Other expenses Total Schroder AS Agriculture Fund USD Schroder AS Asian Long Term Value Fund * USD Schroder AS Commodity Fund USD 163, , Schroder AS Gold and Precious Metals Fund USD 90, , , Schroder AS UK Dynamic Absolute Return Fund GBP 54, , , Subsequent Events On 20 April 2016, Schroder AS Commodity Total Return Fund was launched. * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review.

22 Page 22 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Fund Performance as at 31 March 2016 Sub-Fund/Class * Launch Date 1 Year % 2 Years % 3 Years % Since Launch % Schroder AS Agriculture Fund A Acc 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund D Acc 31 October 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc 27 October 2006 ( 9.84 ) ( ) ( ) ( 9.67 ) Benchmark: Rogers International Agriculture Index Schroder AS Agriculture Fund A Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) CHF Hedged Schroder AS Agriculture Fund A Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) EUR Hedged Schroder AS Agriculture Fund A Acc GBP Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc GBP Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc GBP Hedged 27 October 2006 ( 9.91 ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) GBP Hedged Schroder AS Agriculture Fund A Acc SGD Hedged 15 February 2008 ( ) ( ) ( ) ( ) Benchmark: MSCI AC Asia ex Japan (NDR) Schroder AS Asian Long Term Value Fund C Acc ** 5 October Schroder AS Asian Long Term Value Fund I Acc ** 5 October Schroder AS Asian Long Term Value Fund IZ Acc ** 5 October Benchmark: Rogers International Agriculture Index (TR) SGD Hedged Schroder AS Commodity Fund A Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund D Acc 31 October 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Dis 18 December 2009 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund J Dis 7 March 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund X Acc 26 February 2010 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark Schroder AS Commodity Fund A Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark CAD Hedged Schroder AS Commodity Fund A Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark CHF Hedged Schroder AS Commodity Fund A Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark EUR Hedged Schroder AS Commodity Fund A Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) * All fund performance data are on a NAV to NAV basis (Bid to Bid), adjusted for dividends, net of expenses and gross of taxes. 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 back the amount originally invested. ** Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review.

23 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Fund Performance as at 31 March 2016 (cont) Page 23 Sub-Fund/Class * Launch Date 1 Year % 2 Years % 3 Years % Since Launch % Schroder AS Commodity Fund I Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark GBP Hedged Schroder AS Commodity Fund I Acc JPY Hedged 14 May 2010 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark JPY Hedged Schroder AS Commodity Fund A Acc SGD Hedged 21 September 2007 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark SGD Hedged Schroder AS Gold and Precious Metals Fund A Acc 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Dis 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Dis 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund D Acc 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund I Acc 07 July ( 9.76 ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs Schroder AS Gold and Precious Metals Fund A Acc CHF Hedged 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc CHF Hedged 07 July ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs CHF Hedged Schroder AS Gold and Precious Metals Fund A Acc EUR Hedged 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc EUR Hedged 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund I Acc EUR Hedged 07 July ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs EUR Hedged Schroder AS Gold and Precious Metals Fund A Dis GBP Hedged 07 July ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Dis GBP Hedged 07 July 2008 Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs GBP Hedged 3.00 ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc SGD Hedged 29 August ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs SGD Hedged Schroder AS Gold and Precious Metals Fund A Acc RMB Hedged 31 October ( 7.03 ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc RMB Hedged 31 October ( 5.93 ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs RMB Hedged Schroder AS Gold and Precious Metals Fund A Acc PLN Hedged 03 April ( ) ( ) ( ) Benchmark:75% Spot Gold / 25% NYSE Arca Gold Bugs PLN Hedged Schroder AS UK Dynamic Absolute Return Fund C Acc 11 February ( 1.16 ) Schroder AS UK Dynamic Absolute Return Fund C Acc EUR Hedged 11 February ( 2.02 ) Schroder AS UK Dynamic Absolute Return Fund C Acc USD Hedged 11 February ( 0.77 ) Schroder AS UK Dynamic Absolute Return Fund R Acc 11 February ( 1.18 ) Schroder AS UK Dynamic Absolute Return Fund R Acc EUR Hedged 11 February ( 2.06 ) Schroder AS UK Dynamic Absolute Return Fund R Acc USD Hedged 11 February ( 0.83 ) * All fund performance data are on a NAV to NAV basis (Bid to Bid), adjusted for dividends, net of expenses and gross of taxes. 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 back the amount originally invested.

24 Page 24 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Statement of Net Assets as at 31 March 2016 ASSETS Schroder AS Agriculture Fund Schroder AS Asian Long Term Value Fund * Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Schroder AS UK Dynamic Absolute Return Fund Total ** USD USD USD USD GBP USD Investments ***** Securities at cost 83,782,777 7,677, ,861, ,933,203 72,687, ,729,118 *** Unrealised appreciation/(depreciation) - 544,171 (12,129,050) (14,009,618) (741,707) (26,660,553) Securities at Market Value 83,782,777 8,222, ,731, ,923,585 71,946, ,068,565 Net unrealised appreciation/(depreciation) *** on forward foreign exchange contracts 667,160-6,778,338 1,263,895 34,580 8,759,095 on futures contracts 972,973-1,493,455 (274,596) (101,724) 2,045,624 on total return swaps , ,516 85,422,910 8,222, ,003, ,912,884 71,984, ,024,800 Cash at banks 21,878,192 3,452, ,362,183 17,168,893 7,933, ,264,972 Receivables for securities sold ,983 1,026,208 Net hedged currency class forward contract collateral calls receivable 244,599-3,318, ,078 7,414 4,011,032 Receivables for subscriptions 355, ,533 2,104,069-3,376,447 Dividends and interest receivable ,623 3,497 53,325 68, ,338 Sundry receivables and prepayments Net market value of options , ,969 TOTAL ASSETS 107,901,663 11,733, ,604, ,676,544 80,941,773 1,078,254,061 LIABILITIES Payables for securities purchased ,528 12,257 Hedged currency class forward contract collateral payable 570,135-5,782,999 1,217,878 7,414 7,581,668 Payables for redemptions 321,244-2,705, ,243 24,888 3,387,460 Management fees payable 140, , ,608 68, ,937 Other payables and accruals 86,023 10, , ,498 58, ,632 TOTAL LIABILITIES 1,118,397 11,313 9,269,239 1,801, ,521 12,440,954 TOTAL NET ASSETS 106,783,266 11,722, ,335, ,875,317 80,774,252 1,065,813,107 UNREALISED APPRECIATION/(DEPRECIATION) SPLIT Unrealised appreciation on investments - 714,750 8,110,791 4,017,320 5,403,073 20,608,698 Unrealised (depreciation) on investments - (170,579) (20,239,841) (18,026,938) (6,144,780) (47,269,251) Unrealised (depreciation) on options contracts (123,750) (177,866) Unrealised appreciation on forward foreign exchange contracts 680,661-7,349,489 1,655, ,850 9,839,463 Unrealised (depreciation) on forward foreign exchange contracts (13,501) - (571,151) (391,842) (72,270) (1,080,368) Unrealised appreciation on futures contracts 3,165,223-10,853, ,529-14,313,093 Unrealised (depreciation) on futures contracts (2,192,250) - (9,359,886) (569,125) (101,724) (12,267,469) Unrealised appreciation on total return swaps , ,516 * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review. ** For the total of the Statement of Net Assets, which has been presented in US Dollar, assets and liabilities stated in currencies other than US Dollar have been converted at the following exchange rate ruling as at 31 March 2016: 1 US Dollar = British Pound. ***** Money Market instruments are valued on an amortised cost basis. *** Please refer to the table Unrealised appreciation/(depreciation) for the calculation split. The notes on pages 12 to 21 form an integral part of these financial statements.

25 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Statement of Net Assets as at 31 March 2016 (cont) Page 25 Schroder AS Agriculture Fund Schroder AS Asian Long Term Value Fund * Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Schroder AS UK Dynamic Absolute Return Fund USD USD USD USD GBP Shares Outstanding ** as at 31 March 2016 Class A Acc 908,135-1,858,381 12,537,960 - Class C Acc 251,747 9,620 1,495, ,640 38,731 Class D Acc 11,683-35, ,283 - Class I Acc 7, ,015 1,449, ,129 - Class IZ Acc Class R Acc ,310 Class X Acc , Class A Dis 12,459-16,276 32,238 - Class C Dis 6, ,626 7,217 - Class I Dis , Class J Dis , Class A Acc CAD Hedged - - 5, Class C Acc CAD Hedged Class I Acc CAD Hedged Class A Acc CHF Hedged , ,564 - Class C Acc CHF Hedged ,012 4,393 - Class I Acc CHF Hedged 170-1,529, Class A Acc SGD Hedged 1,095,883-6,133,993 4,059,702 - Class A Acc EUR Hedged 82, , ,355 - Class C Acc EUR Hedged 32, ,553 6,944 26,974 Class I Acc EUR Hedged 22, ,224 14,028 - Class R Acc EUR Hedged ,429 Class A Acc GBP Hedged 5,893-56, Class C Acc GBP Hedged 7,764-29, Class I Acc GBP Hedged 2, , Class I Acc JPY Hedged Class A Acc PLN Hedged ,259 - Class A Acc RMB Hedged Class C Acc RMB Hedged Class C Acc USD Hedged ,732 Class R Acc USD Hedged ,739 Class A Dis GBP Hedged 4,187-23, ,068 - Class C Dis GBP Hedged 12,830-9,055 68,984 - Net Asset Value per Share as at 31 March 2016 ** *** Class A Acc Class C Acc Class D Acc Class IZ Acc Class I Acc Class R Acc Class X Acc Class A Dis Class C Dis Class I Dis Class J Dis Class A Acc CAD Hedged Class C Acc CAD Hedged Class I Acc CAD Hedged Class A Acc CHF Hedged Class C Acc CHF Hedged Class I Acc CHF Hedged Class A Acc SGD Hedged Class A Acc EUR Hedged Class C Acc EUR Hedged Class I Acc EUR Hedged Class R Acc EUR Hedged Class A Acc GBP Hedged Class C Acc GBP Hedged Class I Acc GBP Hedged Class I Acc JPY Hedged - - 5, Class A Acc PLN Hedged Class A Acc RMB Hedged Class C Acc RMB Hedged Class C Acc USD Hedged Class R Acc USD Hedged Class A Dis GBP Hedged Class C Dis GBP Hedged * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review ** Please refer to the Classes of Shares section of the Notes to the Financial Statements for the naming convention used for the share classes. *** The Net Asset Value per Share of each share class is stated in the currency of the share class. The notes on pages 12 to 21 form an integral part of these financial statements.

26 Page 26 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Portfolio of Investments as at 31 March 2016 Schroder AS Agriculture Fund Schroder AS Asian Long Term Value Fund * Number of shares or Principal Amount Transferable Securities and Money Market Instruments dealt on another Regulated Market Market Value USD % Net Assets Number of shares or Principal Amount Transferable Securities and Money Market Instruments Admitted to an Official Exchange Listing Market Value USD % Net Assets United States of America 83,782, USD 13,000,000 US Treasury Bill 0% 07/04/ ,999, USD 14,500,000 US Treasury Bill 0% 14/04/ ,498, USD 12,200,000 US Treasury Bill 0% 21/04/ ,198, USD 15,400,000 US Treasury Bill 0% 28/04/ ,397, USD 14,700,000 US Treasury Bill 0% 05/05/ ,696, USD 7,000,000 US Treasury Bill 0% 02/06/2016 6,996, USD 7,000,000 US Treasury Bill 0% 09/06/2016 6,996, Total Transferable Securities and Money Market Instruments dealt on another Regulated Market 83,782, Total Investments 83,782, Other Net Assets 23,000, Net Asset Value 106,783, Equities Australia 738, AUD 29,214 BHP Billiton 379, AUD 10,935 Rio Tinto 359, Hong Kong SAR 4,736, HKD 50,700 ASM Pacific Technology 398, HKD 57,000 Cheung Kong Property 367, HKD 171,000 Chow Sang Sang International 258, HKD 369,000 Clear Media 318, HKD 228,000 Dah Sing Banking 400, HKD 87,000 Galaxy Entertainment 326, HKD 179,000 Haitian International 307, HKD 83,000 Hysan Development 353, USD 17,100 Jardine Strategic 510, HKD 93,000 Johnson Electric 287, HKD 140,500 Kerry Properties 385, HKD 151,500 SmarTone Telecommunications 252, HKD 19,000 Sun Hung Kai Properties 232, HKD 125,400 Swire Properties 338, Singapore 251, USD 185,200 Mandarin Oriental International 251, Taiwan 1,413, TWD 138,000 Hon Hai Precision Industry 364, TWD 44,000 Merida Industry 195, TWD 100,000 Taiwan Semiconductor Manufacturing 503, TWD 224,000 Vanguard International Semiconductor 350, Thailand 796, THB 389,600 Hana Microelectronics (Foreign) 396, THB 81,200 Kasikornbank (NVDR) 399, United Kingdom 284, HKD 45,600 HSBC 284, Total Equities 8,222, Total Transferable Securities and Money Market Instruments Admitted to an Official Exchange Listing 8,222, Total Investments 8,222, Other Net Assets 3,500, Net Asset Value 11,722, * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review. The notes on pages 12 to 21 form an integral part of these financial statements.

27 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Portfolio of Investments as at 31 March 2016 (cont) Page 27 Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Number of shares or Principal Amount Transferable Securities and Money Market Instruments Admitted to an Official Exchange Listing Market Value USD % Net Assets Number of shares or Principal Amount Transferable Securities and Money Market Instruments Admitted to an Official Exchange Listing Market Value USD % Net Assets Equities Equities Gold Mining 15,015, USD 63,275 Agnico Eagle Mines 2,325, USD 358,500 Gold Fields ADR 1,412, USD 362,050 Goldcorp 5,937, USD 122,410 Newmont Mining 3,274, USD 675,000 Yamana Gold 2,065, Oil & Gas 59,226, USD 150,195 Anadarko Petroleum 6,967, USD 130,372 ConocoPhillips 5,225, USD 267,590 Devon Energy 7,010, GBP 3,606,579 EnQuest 1,242, USD 626,403 Marathon Oil 6,596, CAD 605,590 MEG Energy 3,014, USD 350,178 Northern Oil and Gas 1,428, CAD 1,081,000 Painted Pony Petroleum 3,687, USD 223,990 Range Resources 7,248, USD 264,280 Sanchez Energy 1,453, USD 1,024,113 Southwestern Energy 7,885, USD 1,117,715 WPX Energy 7,466, Total Equities 74,241, Structured Products Gold 7,118, USD 60,417 Gold Bullion Securities 7,118, Total Structured Products 7,118, Total Transferable Securities and Money Market Instruments Admitted to an Official Exchange Listing 81,360, Gold Mining 35,430, USD 44,226 Agnico Eagle Mines 1,625, USD 327,112 Alamos Gold 1,710, USD 157,714 AngloGold Ashanti ADR 2,168, USD 264,488 Barrick Gold 3,634, AUD 6,517,700 Beadell Resources 1,405, CAD 399,399 Centerra Gold 1,910, USD 323,520 Eldorado Gold 1,012, ZAR 548,415 Gold Fields 2,185, USD 351,340 Goldcorp 5,761, USD 262,795 Kinross Gold 904, USD 307,684 New Gold 1,193, USD 158,978 Newmont Mining 4,252, USD 17,715 Randgold Resources ADR 1,611, AUD 365,400 Regis Resources 686, USD 25,056 Royal Gold 1,302, CAD 294,950 SEMAFO 1,035, USD 55,995 Sibanye Gold ADR 864, USD 707,592 Yamana Gold 2,165, Precious Metals Mining 785, GBP 414,594 Lonmin 785, Total Equities 36,215, Structured Products Gold 16,075, USD 14,016 ETFS Physical Gold 1,676, USD 59,237 Gold Bullion Securities 6,979, USD 61,164 Source Physical Gold P-ETC 7,418, Number of shares or Principal Amount Transferable Securities and Money Market Instruments dealt on another Regulated Market Market Value USD % Net Assets Total Structured Products 16,075, Total Transferable Securities and Money Market Instruments Admitted to an Official Exchange Listing 52,290, United States of America 468,910, USD 51,000,000 US Treasury Bill 0% 07/04/ ,998, USD 100,000,000 US Treasury Bill 0% 14/04/ ,989, USD 56,000,000 US Treasury Bill 0% 21/04/ ,991, USD 104,000,000 US Treasury Bill 0% 28/04/ ,981, USD 108,000,000 US Treasury Bill 0% 05/05/ ,973, USD 50,000,000 US Treasury Bill 0% 02/06/ ,977, Total Transferable Securities and Money Market Instruments dealt on another Regulated Market Number of shares or Principal Amount Investment Funds Units in Closed-Ended Collective Investment Scheme 468,910, Market Value USD % Net Assets Gold 26,460, USD 225,984 SPDR Gold Shares 26,460, Total Investment Funds 26,460, Total Units in Closed-Ended Collective Investment Scheme 26,460, Total Investments 576,731, Other Net Assets 125,603, Number of shares or Principal Amount Transferable Securities and Money Market Instruments dealt on another Regulated Market Market Value USD % Net Assets United States of America 42,928, USD 500,000 US Treasury Bill 0% 07/04/ , USD 1,200,000 US Treasury Bill 0% 14/04/2016 1,199, USD 16,250,000 US Treasury Bill 0% 21/04/ ,240, USD 15,200,000 US Treasury Bill 0% 28/04/ ,193, USD 9,800,000 US Treasury Bill 0% 05/05/2016 9,795, Total Transferable Securities and Money Market Instruments dealt on another Regulated Market Number of shares or Principal Amount Investment Funds Units in Open-Ended Collective Investment Scheme 42,928, Market Value USD % Net Assets Gold 6,932, USD 586,023 ishares Gold Trust 6,932, Total Investment Funds 6,932, Total Units in Open-Ended Collective Investment Scheme 6,932, Net Asset Value 702,335, The notes on pages 12 to 21 form an integral part of these financial statements.

28 Page 28 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Portfolio of Investments as at 31 March 2016 (cont) Schroder AS Gold and Precious Metals Fund (cont) Number of shares or Principal Amount Units in Closed-Ended Collective Investment Scheme Market Value USD % Net Assets Schroder AS UK Dynamic Absolute Return Fund Number of shares or Principal Amount Transferable Securities and Money Market Instruments Admitted to an Official Exchange Listing Market Value GBP % Net Assets Investment Funds Equities Gold 7,771, USD 66,373 SPDR Gold Shares 7,771, Total Investment Funds 7,771, Total Units in Closed-Ended Collective Investment Scheme 7,771, Total Investments 109,923, Other Net Assets 18,951, Net Asset Value 128,875, United Kingdom 31,259, GBP 120,937 Arrow Global 302, GBP 342,495 Ascential 787, GBP 712,270 Bango 306, GBP 743,428 Blue Prism 880, GBP 246,716 Clinigen 1,440, GBP 640,340 Eclectic Bar 368, GBP 771,403 Elegant Hotels 821, GBP 379,076 Fevertree Drinks 2,513, GBP 1,526,576 Gulf Marine Services 1,003, GBP 97,245 Hansteen 103, GBP 1,783,370 Johnson Service 1,622, GBP 98,824 Just Eat 372, GBP 3,181,260 Kromek 1,018, GBP 604,154 McBride 981, GBP 844,855 Michelmersh Brick 697, GBP 324,835 Mothercare 591, GBP 37,210 Nichols 474, GBP 521,603 On the Beach 1,357, GBP 364,612 Palace Capital 1,248, GBP 22,872 Quixant 49, GBP 3,146,855 Renold 1,054, GBP 587,852 Revolution Bars 875, GBP 487,670 Secure Income REIT 1,316, GBP 588,728 Smart Metering Systems 2,431, GBP 381,205 Spire Healthcare 1,368, GBP 55,107 Staffline 716, GBP 297,997 Telford Homes 1,009, GBP 215,000 Virgin Money UK 793, GBP 649,498 Walker Greenbank 1,318, GBP 344,545 WANdisco 632, GBP 1,102,000 Watkin Jones 1,124, GBP 90,854 Young & Co's Brewery 767, GBP 78,367 Young & Co's Brewery 'A' 908, Total Equities 31,259, Total Transferable Securities and Money Market Instruments Admitted to an Official Exchange Listing 31,259, Number of shares or Principal Amount Transferable Securities and Money Market Instruments dealt on another Regulated Market Market Value GBP % Net Assets United Kingdom 32,915, GBP 1,000,000 UK Treasury Bill 0% 25/04/ , GBP 8,000,000 UK Treasury Bill 0% 03/05/2016 7,978, GBP 11,000,000 UK Treasury Bill 0% 23/05/ ,970, GBP 5,000,000 UK Treasury Bill 0% 11/07/2016 4,987, GBP 1,000,000 UK Treasury Bill 0% 25/07/ , GBP 7,000,000 UK Treasury Bill 0% 30/08/2016 6,983, Total Transferable Securities and Money Market Instruments dealt on another Regulated Market 32,915, Number of shares or Principal Amount Other Transferable Securities not dealt on another Regulated Market Market Value GBP % Net Assets Equities United Kingdom 5, GBP 5,239,820 McBride Preference 5, Total Equities 5, Total Other Transferable Securities not dealt on another Regulated Market 5, The notes on pages 12 to 21 form an integral part of these financial statements.

29 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Portfolio of Investments as at 31 March 2016 (cont) Page 29 Schroder AS UK Dynamic Absolute Return Fund (cont) Number of shares or Principal Amount Units in Open-Ended Collective Investment Scheme Market Value GBP % Net Assets Investment Funds 7,766, Luxembourg 7,766, GBP 65,600 Schroder Special Situations Fund Sterling 7,766, Liquidity Plus Class I Acc Total Investment Funds 7,766, Total Units in Open-Ended Collective Investment Scheme 7,766, Total Investments 71,946, Other Net Assets 8,828, Net Asset Value 80,774, The notes on pages 12 to 21 form an integral part of these financial statements.

30 Page 30 Schroder Alternative Solutions Semi-Annual Report 31 March 2016 Appendix I - TER for the Period Ended 31 March 2016 A Class C Class D Class I Class IZ Class J Class R Class X Class Schroder AS Agriculture Fund 2.24% 1.64% 3.24% 0.12% Schroder AS Asian Long Term Value Fund * % % 1.02% Schroder AS Commodity Fund 1.98% 1.38% 2.98% 0.11% % % Schroder AS Gold and Precious Metals Fund 2.00% 1.40% 3.00% 0.13% Schroder AS UK Dynamic Absolute Return Fund % % - * Please refer to the Directors Report for the details of all corporate actions that occurred during the period under review.

31 DP_SAS_SAR_MAY16

32 Schroder Investment Management (Luxembourg) S.A. 5, rue Höhenhof L-1736 Senningerberg Grand Duchy of Luxembourg Tel: (+352) Fax: (+352)

33 Schroder Alternative Solutions Audited Annual Report 30 September 2015

34

35 Schroder Alternative Solutions Société d Investissement à Capital Variable (SICAV) Audited Annual Report 30 September 2015 No subscriptions can be received based solely on periodical reports. Subscriptions are valid only if made on the basis of the current prospectus accompanied by the last available annual report or semi-annual report if published thereafter. Annual and semi-annual reports, the current prospectus and the Articles of Incorporation of Schroder Alternative Solutions (the Company ) are available, free of charge, at the Company s Management Company, 5, rue Höhenhof, L-1736 Senningerberg, Grand Duchy of Luxembourg.

36

37 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Page 5 Contents Schroder Alternative Solutions Board of Directors Administration Directors Report Investment Manager s Report Notes to the Financial Statements Fund Performance (Unaudited) Audit Report Statement of Net Assets Statement of Operations Statement of Changes in Net Assets Portfolio of Investments Schroder AS Agriculture Fund Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Schroder AS UK Dynamic Absolute Return Fund Appendix I - Audited TER Appendix II- AIFM Disclosures (Unaudited) Appendix III

38

39 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Schroder Alternative Solutions Page 7 The Company Schroder Alternative Solutions (the Company ) is an open-ended investment company organised as a société anonyme under the laws of the Grand Duchy of Luxembourg. The Company was incorporated on 6 October 2005 and exists for an indefinite period. During the year under review four funds were available for investment within Schroder Alternative Solutions. The details of investment objectives and investment restrictions for the Funds can be found in the Company s current prospectus. The Company constitutes a single legal entity, but the assets of the Funds are invested for the exclusive benefit of the shareholders of the corresponding Funds and are solely accountable for the liabilities, commitments and obligations of the Funds. The Directors may at any time resolve to set up new Funds and/or create within each Fund one or more classes of shares. The Directors may decide to make an application to list the shares on any other recognised stock exchange. This report covers the year from 1 October 2014 up to 30 September The last day on which prices were calculated was 30 September 2015, the last working day of the year under review. The financial statements are prepared in accordance with Luxembourg regulations related to undertakings for collective investment. Hereafter, Schroder Alternative Solutions will be referred to as the Company and the names of the Funds will be preceded by Schroder AS, e.g., Schroder AS Commodity Fund. Corporate Governance The Company is subject to corporate governance based on: 1. Its obligations as defined by Part II of the Luxembourg law of 17 December 2010, as amended, on undertakings for collective investment and the Alternative Investment Fund Managers Directive 2011/61/EU, as implemented in Luxembourg law, which are available for inspection at the registered office of the Company at 5, rue Hohenhof, L-1736 Senningerberg, Grand Duchy of Luxembourg. 2. Its Articles of Incorporation which are available for inspection at the registered office of the Company and at the Luxembourg corporate and trade register, Registre de Commerce et des Sociétés ( RCSL ). 3. The obligations in respect of the management of the Company, for which the Company has appointed Schroder Investment Management (Luxembourg) S.A., which is subject to the requirements of the Management Company Directive 2010/43/EC and the Alternative Investment Fund Managers Directive 2011/61/EU, as implemented in Luxembourg law. 4. The Association of the Luxembourg Fund Industry ( ALFI ) code of conduct, which the Company has voluntarily adopted. Internal Control and Risk Management Systems The Board of Directors is responsible for establishing and maintaining adequate internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company's financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board of Directors has contracted with the Management Company to put procedures in place to ensure all relevant accounting records are properly maintained and are readily available, including the production of annual and semi-annual reports. The annual and semiannual reports of the Company are required to be approved by the Board of Directors of the Company and filed with the Commission de Surveillance du Secteur Financier ( CSSF ) and, in the case of annual reports, with the Registre de Commerce et des Sociétés ( RCSL ). The annual statutory financial statements are required to be audited by independent auditors who report to the Board of Directors on their findings. The Board meets at least four times a year and ensures that the Company maintains high standards of integrity and control in its operations and that it possesses adequate governance and means of control as law and regulation demand.

40 Page 8 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Board of Directors Chairman Directors Carlo Trabattoni Head of Pan European Intermediary Distribution and GFIG Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom Mike Champion Head of Product Development Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom Marie-Jeanne Chevremont-Lorenzini Independent Director 19, rue de Bitbourg 1273 Luxembourg, Grand Duchy of Luxembourg Jacques Elvinger Avocat Elvinger, Hoss & Prussen 2, place Winston Churchill 2014 Luxembourg, Grand Duchy of Luxembourg Daniel De Fernando Garcia Independent Director Serrano Madrid, Spain Achim Kuessner Country Head Germany, Austria & CEE Schroder Investment Management GmbH Taunustor 1 (Taunus Turm) Frankfurt am Main, Germany Ketil Petersen Country Head Nordic Region Schroders Denmark Filial af Schroder Investment Management ( Luxembourg) S.A. Store Strandstraede Copenhagen K, Denmark Georges-Arnaud Saier ( a ) Independent Director 6, rue Paul Baudry 75008, Paris France Neil Walton Head of UK Institutional Business Development Group Schroder Investment Management Limited 31, Gresham Street London EC2V 7QA, United Kingdom ( a ) Georges-Arnaud Saier changed his address with effect 3 December 2014.

41 Administration Schroder Alternative Solutions Audited Annual Report 30 September 2015 Page 9 Registered Office Alternative Investment Fund Manager, Principal Paying Agent, Domiciliary Agent, Registrar and Transfer Agent Investment Manager Depositary bank and Fund Administrator Auditor Legal Advisers 5, rue Höhenhof, 1736 Senningerberg, Grand Duchy of Luxembourg Schroder Investment Management (Luxembourg) S.A. 5, rue Höhenhof, 1736 Senningerberg, Grand Duchy of Luxembourg Schroder Investment Management Limited 31, Gresham Street, London EC2V 7QA, United Kingdom J.P. Morgan Bank Luxembourg S.A. European Bank & Business Centre, 6, route de Trèves, 2633 Senningerberg, Grand Duchy of Luxembourg PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator, 2182 Luxembourg, Grand Duchy of Luxembourg Elvinger, Hoss & Prussen 2, place Winston Churchill, B.P Luxembourg, Grand Duchy of Luxembourg Simmons & Simmons CityPoint, One Ropemaker Street, London EC2Y 9SS, United Kingdom

42 Page 10 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Directors Report Introduction The directors of the company submit their report and the audited financial statements for the year ended 30 September Activities during the year On 30 September 2015, the total net assets of the company were USD 1,184,698,326 compared with USD 2,473,392,294 on 30 September 2014, representing a decrease of 52.10%. During the year under review, the following changes took place: 23 December 2014 There was a change in the investment and borrowing restrictions applicable to Schroder AS UK Dynamic Absolute Return Fund for the following classes: Schroder AS UK Dynamic Absolute Return Fund C Acc and R Acc. Schroder AS UK Dynamic Absolute Return Fund EUR Hedged C Acc and R Acc. Schroder AS UK Dynamic Absolute Return Fund USD Hedged C Acc and R Acc. The change was made in order to clarify the restriction stipulating that a sub-fund of the Company must have a reserve of liquid assets at least equal to 30% of its net asset value at all times, is not applicable to the Fund. This change does not affect the liquidity of the Fund, nor the way it has been managed since its inception. 1 January 2015 There was a reduction in the transfer agency fee from 40 bps to 30 bps for the following classes: Schroder AS Agriculture Fund A Acc, D Acc and A Dis. Schroder AS Agriculture Fund CHF Hedged A Acc. Schroder AS Agriculture Fund EUR Hedged A Acc. Schroder AS Agriculture Fund GBP Hedged A Acc and A Dis. Schroder AS Agriculture Fund SGD Hedged A Acc. Schroder AS Commodity Fund A Acc, D Acc and A Dis. Schroder AS Commodity Fund CAD Hedged A Acc. Schroder AS Commodity Fund CHF Hedged A Acc. Schroder AS Commodity Fund EUR Hedged A Acc. Schroder AS Commodity Fund GBP Hedged A Acc and A Dis. Schroder AS Commodity Fund SGD Hedged A Acc. 31 July 2015 There was a change in dealing day and dealing frequency for the Schroder AS UK Dynamic Absolute Return Fund, from monthly dealing frequency with dealing day the last Business Day of each calendar month to weekly dealing frequency with dealing day each Wednesday (or the following Business Day if Wednesday is not a Business Day) and the last Business Day of each calendar month. There was a change in dealing cut-off time for subscriptions for Schroder AS UK Dynamic Absolute Return Fund from 13:00 CET Luxembourg time five Business Days prior to the relevant Dealing Day to 13:00 CET Luxembourg time three Business Days prior to the relevant Dealing Day. There was a change in dealing cut-off time for redemptions for Schroder AS UK Dynamic Absolute Return Fund from 13:00 CET Luxembourg time thirty calendar days prior to the relevant Dealing Day to 13:00 CET Luxembourg time three Business Days prior to the relevant Dealing Day. 1 August 2015 There was a decrease in management fee of the Schroder AS UK Dynamic Absolute Return Fund for C Acc and R Acc share classes from 1.50% to 1.00%. The Alternative Investment Fund Manager has a remuneration policy in place as required by the Law of 12 July 2013 on Alternative Investment Fund Managers. Details of the amounts of remuneration may be obtained upon request and free of charge from the Management Company. The Board of Directors Schroder Alternative Solutions 30 September 2015

43 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Investment Manager s Report Page 11 Overview Central bank activity remained a primary focus for investors over the 12-months. The start of the period saw the US Federal Reserve bring its quantitative easing (QE) programme to an end, leading to heightened speculation as to when the first interest rate hike would take place. By contrast, other developed economies continued to loosen monetary policy. Japan was in particular focus at the end of 2014 as the central bank eased monetary policy and Prime Minister Abe delayed a planned increase in the consumption tax, also calling a snap election which his party won comfortably. In the eurozone, the European Central Bank announced a long-awaited QE programme, buying 60 billion of bonds per month from March 2015 until at least September Falling crude oil prices were an important feature of the period, particularly at the end of 2014 after oil cartel Opec elected not to reduce its output in the face of increasing supply from US producers. In emerging economies, slowing growth in China was a key concern over the period. The Chinese authorities moved to cut interest rates and bank reserve requirement ratios several time over the 12-month period in an effort to boost growth. In August, the Chinese central bank also moved to alter the way it fixes the yuan, although this was not necessarily aimed at boosting exporters. Brazil saw its economic situation deteriorate, resulting in ratings agency Standard & Poor s cutting the country s credit rating to below investment grade in September. UK equity market review and outlook The FTSE All-Share index returned -2.3% 1 over the period with the large cap FTSE 100 weighing on returns due to the heavy weighting of resource firms in the index. These stocks came under significant pressure over the year with weaker demand from China affecting metals prices and hence impacting the mining firms, while the fall in the oil price was a drag on oil & gas firms. By contrast, the midcap FTSE 250 index, which has greater exposure to the domestic UK economy, delivered positive returns for the 12 months. At the All-Share level, the best performing sector was consumer services while the weakest was basic materials. Schroders economists expect the UK recovery to continue, but to moderate in 2016 with the resumption of austerity. Interest rate normalisation will likely begin with the first rate rise in May 2016 after the trough in CPI inflation. The Bank of England is expected to move cautiously with rates at 1.5% by end 2016 and peaking at around 2.5% in Commodity market review and outlook Commodities had a difficult year with the Bloomberg Commodity Index falling 26.0% 2. Brent crude fell from over $94/barrel at the end of September 2014 to around $47.00/barrel one year later 3. The oil price drop triggered mixed views from markets, with some investors fearing that it implied weak levels of global demand and hence weak economic growth, while others concluded that the price fall would be good news for consumers and lead to a pick-up in spending. Among other commodities, corn and wheat registered positive returns for the year, supported by weather-related fears in the early summer. Cyclical commodities such as industrial metals and energy have been particularly hard hit by the China slowdown. However future supply is likely to shrink, providing some support for prices. Energy prices have reached levels where capital discipline is being forced on the oil majors and as a result prices are likely to be higher in future. Regarding agriculture, predictions of the strongest El Niño on record may have a disruptive effect on markets. The Investment Manager Schroder Alternative Solutions 30 September Source: Datastream, total return. 2 Source: Factset 3 Source: FactSet

44 Page 12 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 The Company The Company is an umbrella structured open-ended investment company with limited liability and qualifies as an undertaking for collective investment ( UCI ) regulated by the provisions of Part II of the Luxembourg law of 17 December 2010, as amended, regarding undertaking for collective investment (the 2010 law ). The Company has been established for an undetermined period and may further issue several classes of shares in each sub-fund. The financial statements are prepared in accordance with Luxembourg regulations relating to undertakings for collective investments. Classes of Shares During the year under review, the following classes of shares were available for investment: Fund Schroder AS Agriculture Fund Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Schroder AS UK Dynamic Absolute Return Fund Classes of Shares A, C, D & I Acc share classes A & C Dis share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A, C & I Acc GBP Hedged share classes A & C Dis GBP Hedged share classes A Acc SGD Hedged share class A, C, D, I & X Acc share classes A, C, I & J Dis share classes A, C & I Acc CAD Hedged share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A, C & I Acc GBP Hedged share classes A & C Dis GBP Hedged share classes A Acc SGD Hedged share class I Acc JPY Hedged share class A, C, D & I Acc share classes A & C Dis share classes A, C & I Acc CHF Hedged share classes A, C & I Acc EUR Hedged share classes A & C Dis GBP Hedged share classes A, C & I Acc RMB Hedged share classes A Acc PLN Hedged share class A Acc SGD Hedged share class C & R Acc share classes C & R Acc EUR Hedged share classes C & R Acc USD Hedged share classes Initial Charges The Management Company and Distributors are entitled to an initial charge, which can be partly or fully waived at the discretion of the Management Company or of the relevant Distributor. The initial charge attributed to each class of share is shown below: Initial Charge A Shares C Shares D Shares I Shares J Shares R Shares X Shares Up to % of the Net Asset Value per share Up to % of the Net Asset Value per share None None None None None Minimum Subscription Amount, Minimum Additional Subscription Amount and Minimum Holding Amount The minimum subscription amount, minimum additional subscription amount and minimum holding amount for each class shown below are stated in the relevant currency although near equivalent amounts in any other freely convertible currency are acceptable. These minima may be waived at the Directors discretion from time to time.

45 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Page 13 Minimum Subscription Amount, Minimum Additional Subscription Amount and Minimum Holding Amount (cont) Share Class Minimum Subscription Amount Minimum Additional Subscription Amount Minimum Holding Amount A Shares USD 10,000 USD 5,000 USD 10,000 C Shares USD 250,000 USD 125,000 USD 250,000 D Shares USD 10,000 USD 5,000 USD 10,000 I Shares USD 5,000,000 USD 2,500,000 USD 5,000,000 J Shares USD 5,000,000 USD 2,500,000 USD 5,000,000 X Shares USD 25,000,000 USD 12,500,000 USD 25,000,000 R Shares none none none Net Asset Value Calculation of Net Asset Value per Share The Net Asset Value per Share of each Class is calculated on each Dealing Day in the currency of the relevant class. It is calculated by dividing the net asset value attributable to each class, being the proportionate value of its assets less its liabilities, by the number of shares of such class then in issue. The resulting sum is rounded to the nearest two decimal places. Further details on rules that apply in valuing total assets can be found in the current prospectus. Valuation of the Assets of the Fund The value of securities, assets (including shares or units in closed-ended undertakings for collective investment) and financial derivative instruments is determined on the basis of the last available price on the stock exchange or any other Regulated Market on which these securities, assets or derivative instruments are traded or admitted for trading. Where such securities, assets or derivative instruments are quoted or dealt in one or by more than one stock exchange or any other Regulated Market, the Directors shall make regulations for the order of priority in which stock exchanges or other Regulated Markets shall be used for the provision of prices of securities, assets or derivative instruments. If a security or derivative instrument is not traded or admitted on any official stock exchange or any Regulated Market, or in the case of securities and derivative instruments so traded or admitted the last available price of which does not reflect their true value, the Directors are required to proceed on the basis of their expected sales price, which shall be valued with prudence and in good faith. Swaps contracts are valued at the market value fixed in good faith by the Directors and according to generally accepted valuation rules. Asset based swap contracts will be valued by reference to the market value of the underlying assets. Cash flow based swap contracts will be valued by reference to the net present value of the underlying future cash flows. Liquid assets and money market instruments held within the liquidity Funds are usually valued on an amortised cost basis. Each share or unit in an open-ended undertaking for collective investment is valued at the last available Net Asset Value (or bid price for dual priced undertakings for collective investment) whether estimated or final, which is computed for such units or shares on the same Dealing Day, failing which, it is the last Net Asset Value (or bid price for dual priced undertakings for collective investment) computed prior to the Dealing Day on which the Net Asset Value of the shares in the Company is determined. The value of any cash in hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interest declared or accrued as aforesaid and not yet received are deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof is arrived at after making such discount as the Company may consider appropriate in such case to reflect the true value thereof. Any assets or liabilities in currencies other than the base currency of the Funds are converted using the relevant spot rate quoted by a bank or other responsible financial institution. Exchange Rate The exchange rate used for the calculation of the combined total in USD of the financial Statement as at 30 September 2015 is: 1 US Dollar = British Pound.

46 Page 14 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Realised gains and losses on sales of Investments Realised gains and losses on sales of investments in securities are determined on the average cost basis and include transaction costs. Taxation The Company is not subject to any taxes in Luxembourg on income or capital gains. The only tax to which the Company is subject in Luxembourg is the taxe d abonnement at a rate of up to 0.05% per annum based on the net asset value of each Fund at the end of the relevant quarter, calculated and paid quarterly. In respect of I, J, R and X shares, which comprise only institutional investors, the tax levied is at 0.01% per annum. Changes in the Funds A list, specifying the total purchases and sales for each Fund, which took place during the year under review may be obtained free of charge upon request at the registered office of the Company. Cash Collateral Reinvestment For the purpose of counterparty risk mitigation, Funds with currency hedging transactions related to hedged share classes will pay or receive cash collateral on a daily basis from the counterparty, thus reducing their exposure over the duration of the forward contract. Investment Manager may reinvest the cash collateral received from the counterparty in connection with currency hedging, in line with the investment objectives of the fund. Collateral receivable or payable at the maturity date of the forward contracts are shown in the Statement of Net Assets as Hedged Currency Class Forward Contract Collateral Receivable/Payable. Collateral calls receivable or payable are shown in the Statement of Net Assets as Net Hedged Currency Class Forward Contract Collateral Calls Receivable/Payable. Forward Foreign Exchange Contracts Outstanding forward foreign exchange contracts were valued at the last available price at NAV calculation day by reference to the forward rate of exchange applicable to the maturity of the contracts. The unrealised appreciations/(depreciations) are shown in the Statement of Net Assets under Net unrealised appreciation/(depreciation) on forward foreign exchange contracts. On 30 September 2015, the following funds were committed to forward foreign exchange contracts: Unrealised Appreciation/ Currency Bought Currency Sold Maturity Date (Depreciation) Schroder AS Agriculture Fund Share Class Hedging CHF 28,400 USD 29, Oct EUR 367,700 USD 416, Oct-2015 ( 5,303 ) EUR 124,600 USD 138, Oct EUR 536,400 USD 600, Oct EUR 199,600 USD 220, Dec ,068 EUR 120,000 USD 132, Jan ,727 EUR 9,377,900 USD 10,523, Feb ,028 GBP 5,345,800 USD 8,223, Oct-2015 ( 112,143 ) GBP 133,900 USD 206, Oct-2015 ( 3,561 ) SGD 2,864,400 USD 2,133, Oct-2015 ( 122,058 ) SGD 3,004,700 USD 2,230, Oct-2015 ( 120,870 ) SGD 77,500 USD 54, Dec-2015 ( 291 ) USD 118,036 SGD 166, Oct USD ( 353,020 ) Schroder AS Commodity Fund Share Class Hedging CAD 368,000 USD 276, Oct-2015 ( 1,698 ) CHF 97,870,300 USD 100,086, Oct ,343 EUR 8,253,700 USD 9,304, Oct-2015 ( 63,776 ) EUR 2,595,900 USD 2,891, Oct ,974 EUR 33,788,500 USD 38,201, Nov-2015 ( 355,308 ) EUR 2,170,800 USD 2,450, Nov-2015 ( 18,590 ) EUR 8,392 USD 9, Nov EUR 32,989,208 USD 36,926, Nov ,253 EUR 17,212,800 USD 19,024, Dec ,551 EUR 28,067,100 USD 30,530, Dec ,111 EUR 1,063,100 USD 1,192, Feb

47 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Page 15 Forward Foreign Exchange Contracts (cont) Unrealised Appreciation/ Currency Bought Currency Sold Maturity Date (Depreciation) Schroder AS Commodity Fund (cont) GBP 37,291,400 USD 58,131, Oct-2015 ( 1,549,236 ) GBP 370,000 USD 571, Oct-2015 ( 9,841 ) GBP 13,636,000 USD 21,050, Oct-2015 ( 362,274 ) JPY 813,700 USD 6, Oct-2015 ( 5 ) SGD 158,378 USD 115, Oct-2015 ( 4,338 ) SGD 2,773,200 USD 2,040, Oct-2015 ( 94,117 ) SGD 8,088,600 USD 5,917, Oct-2015 ( 242,061 ) SGD 6,508,670 USD 4,746, Nov-2015 ( 181,261 ) SGD 11,893,161 USD 8,663, Nov-2015 ( 323,460 ) SGD 1,559,100 USD 1,111, Nov-2015 ( 18,870 ) SGD 244,000 USD 170, Dec SGD 346,600 USD 241, Jan USD 9,368,593 EUR 8,253, Oct ,751 USD 2,947,229 EUR 2,595, Oct ,212 USD 35,721,615 EUR 31,577, Nov ,505 USD 2,007,522 GBP 1,311, Oct ,725 USD 112,993 SGD 158, Oct ,789 USD 404,861 SGD 567, Oct ,446 USD ( 1,123,606 ) Schroder AS Gold and Precious Metals Fund Share Class Hedging CHF 1,608,400 USD 1,644, Oct ,100 CNH 110,800 USD 17, Oct CNH 3,800 USD Oct EUR 3,710,500 USD 4,147, Oct ,071 EUR 35,700 USD 40, Oct-2015 ( 106 ) EUR 47,900 USD 53, Oct EUR 63,000 USD 70, Nov-2015 ( 409 ) EUR 101,000 USD 111, Jan ,618 EUR 118,100 USD 131, Jan ,422 GBP 648,700 USD 996, Oct-2015 ( 12,152 ) PLN 9,807,100 USD 2,587, Oct-2015 ( 4,431 ) SGD 1,471,694 USD 1,054, Oct-2015 ( 20,666 ) SGD 6,437,652 USD 4,779, Oct-2015 ( 258,968 ) SGD 4,709,830 USD 3,465, Oct-2015 ( 159,843 ) SGD 5,684,110 USD 4,167, Oct-2015 ( 178,586 ) SGD 5,065,078 USD 3,694, Nov-2015 ( 141,058 ) SGD 1,089,800 USD 777, Nov-2015 ( 14,005 ) SGD 2,351,100 USD 1,672, Nov-2015 ( 24,596 ) USD 44,340 CHF 43, Oct USD 875 CNH 5, Oct-2015 ( 3 ) USD 123,032 EUR 109, Oct USD 26,405 GBP 17, Oct USD 69,709 PLN 263, Oct USD 694,070 SGD 989, Oct-2015 ( 640 ) USD ( 798,624 ) Portfolio Hedging CAD 2,975,000 USD 2,291, Oct-2015 ( 73,442 ) USD 6,922,739 CAD 8,900, Oct , ,618 USD ( 586,006 ) Schroder AS UK Dynamic Absolute Return Fund Share Class Hedging EUR 13,802,700 GBP 10,140, Oct ,272 USD 15,956,700 GBP 10,477, Oct ,852 GBP 94,124 Futures Contracts Futures contracts were valued at the last available price at NAV calculation day. The unrealised appreciation/(depreciation) is shown in the Statement of Net Assets under Net unrealised appreciation/(depreciation) on futures contracts. On 30 September 2015, the following funds held open futures contracts:

48 Page 16 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Futures Contracts (cont) Maturity Date Quantity Contract Currency Long Position Market Price Unrealised Appreciation/ (Depreciation) Schroder AS Agriculture Fund Oct Rapeseed Euro Future EUR 2,465, ( 40,680 ) Oct SGX Technically Specified Rubber 20 Future USD 688, ( 189,187 ) Nov Canola Future (WCE) CAD 3,127, ( 44,033 ) Nov Coffee Robusta Future (10-Tonne) USD 5,576,385 1,563 ( 559,155 ) Nov Lumber Future USD 3,707, ( 465,630 ) Nov Rough Rice Future (CBOT) USD 3,466, ,630 Nov SGX Technically Specified Rubber 20 Future USD 264, ( 8,582 ) Nov Soybean Future USD 3,773, ( 268,636 ) Dec Cocoa Future (ICE) GBP 2,093,190 2, ,017 Dec Coffee 'C' Future USD 2,914, ( 263,702 ) Dec Corn Future USD 14,900, ,089 Dec Cotton No.2 Future USD 4,782, ( 221,182 ) Dec Crude Palm Oil Future MYR 5,067,773 2, ,737 Dec Hard Red Winter Wheat Future (KCB) USD 1,090, ,200 Dec Live Cattle Future USD 3,709, ( 292,042 ) Dec Mill Wheat Euro Future EUR 4,701, ( 436,616 ) Dec Oat Future USD 1,978, ( 320,012 ) Dec SGX Technically Specified Rubber 20 Future USD 266, ( 10,030 ) Dec Soybean Meal Future USD 2,468, ( 9,173 ) Dec Soybean Oil Future USD 1,528, ( 243,467 ) Dec Wheat Future (CBT) USD 10,700, ( 247,350 ) Jan Crude Palm Oil Future MYR 7,752,502 2, ,927 Jan Rapeseed Euro Future EUR 1,811, ,117 Feb Rubber Future JPY 575,597, ( 106,673 ) Feb SUGAR NO.11 (WORLD) Future USD 943, ,515 Feb White Sugar Future (ICE) USD 3,176, ,505 Mar Cocoa Future USD 1,187,336 3,155 ( 51,536 ) Mar Cotton No.2 Future USD 5,273, ( 373,567 ) Mar Mill Wheat Euro Future EUR 1,224, ,878 Mar Soybean Future USD 3,290, ( 339,901 ) Apr Rapeseed Euro Future EUR 613, ,447 Apr SUGAR NO.11 (WORLD) Future USD 2,653, ,797 Jun Lean Hogs Future USD 1,245, ( 26,115 ) USD ( 2,928,410 ) Schroder AS Commodity Fund Oct Brent Crude Future USD 45,786, ( 302,553 ) Oct ,583 Crude Oil Future USD 70,927, ,286 Oct Gasoline RBOB Future USD 8,875, ( 27,276 ) Oct LME LEAD Future USD 5,667,751 1,650.5 ( 674,989 ) Oct LME ZINC Future USD 2,517,000 1,662 ( 522,600 ) Oct Low Sulphur Gas Oil Future (ICE) USD 7,890, ,298 Oct ,670 Natural Gas Future USD 47,566, ( 4,680,624 ) Oct NY Harb ULSD Future USD 6,202, ( 255,851 ) Oct Rapeseed Euro Future EUR 3,947, ( 361,708 ) Oct SGX Technically Specified Rubber 20 Future USD 2,546, ( 427,034 ) Nov ,659 Canola Future (WCE) CAD 16,608, ( 558,469 ) Nov Coffee Robusta Future (10-Tonne) USD 10,336,853 1,563 ( 1,037,002 ) Nov Crude Oil Future USD 43,868, ( 1,273,604 ) Nov Gasoline RBOB Future USD 12,948, ,167 Nov LME COPPER Future USD 10,743,171 5,068 26,329 Nov LME NICKEL Future USD 10,604,592 10, ,588 Nov LME PRI ALUM Future USD 22,020,704 1,561 ( 10,604 ) Nov LME ZINC Future USD 4,944,343 1, ( 219,107 ) Nov Low Sulphur Gas Oil Future (ICE) USD 9,798, ( 348,649 ) Nov NY Harb ULSD Future USD 14,229, ( 94,928 ) Nov SGX Technically Specified Rubber 20 Future USD 1,331, ( 43,110 ) Dec Cocoa Future USD 9,359,844 3, ,866 Dec Coffee 'C' Future USD 17,615, ( 1,622,585 )

49 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Page 17 Futures Contracts (cont) Maturity Date Quantity Contract Currency Long Position Market Price Unrealised Appreciation/ (Depreciation) Schroder AS Commodity Fund (cont) Dec ,701 Corn Future USD 33,694, ( 546,736 ) Dec Crude Palm Oil Future MYR 37,524,298 2,375 1,134,069 Dec Hard Red Winter Wheat Future (KCB) USD 4,831, ,750 Dec Live Cattle Future USD 11,443, ( 870,748 ) Dec LME ZINC Future USD 6,741,875 1, ,006 Dec Mill Wheat Euro Future EUR 7,508, ( 743,029 ) Dec SGX Technically Specified Rubber 20 Future USD 1,336, ( 50,249 ) Dec Silver Future USD 19,743, ( 1,252,060 ) Jan Crude Palm Oil Future MYR 37,415,839 2, ,672 Jan Gasoline RBOB Future USD 12,616, ( 197,690 ) Jan Platinum Future USD 1,268, ( 83,136 ) Jan Rapeseed Euro Future EUR 6,409, ,289 Feb NY Harb ULSD Future USD 14,313, ( 99,569 ) Feb Rubber Future JPY 450,707, ( 81,634 ) Feb SUGAR NO.11 (WORLD) Future USD 5,526, ,731 Feb White Sugar Future (ICE) USD 10,359, ,951 Mar Cocoa Future USD 9,467,269 3,155 ( 412,419 ) Mar Cotton No.2 Future USD 3,695, ( 226,159 ) Mar Mill Wheat Euro Future EUR 3,033, ,604 Apr Rapeseed Euro Future EUR 1,334, ,031 Apr SUGAR NO.11 (WORLD) Future USD 8,054, ,931 Dec Gold 100 OZ Future USD 15,704,614 1,123 ( 768,714 ) Dec LME COPPER Future USD 5,994,200 4, ( 914,044 ) Dec LME PRI ALUM Future USD 6,775,125 1, ( 854,594 ) Nov Natural Gas Future USD 7,402, ( 1,496,018 ) Dec LME COPPER Future USD 12,227,250 4, ( 1,680,344 ) Dec LME PRI ALUM Future USD 6,166,400 1, ( 716,000 ) Nov Crude Oil Future USD 13,386, ( 2,150,700 ) USD ( 19,953,968 ) Schroder AS Gold and Precious Metals Fund Dec Gold 100 OZ Future USD 35,722,057 1,117.4 ( 2,311,797 ) USD ( 2,311,797 ) Total Return Swaps The Company may use total return swaps. A total return swap is a bilateral financial contract which allows the Company to enjoy all of the cash flow benefits of an asset without actually owning this asset (the Reference Asset ). The Company will have to pay a periodic fee (fixed or floating payment) in exchange of its right to receive the total return of the Reference Asset (coupons or capital gains or losses). The Reference Asset can be almost any asset, index or basket of asset which constitutes an eligible investment for the Company. The Company may use such instruments to seek exposure to an eligible market or for hedging purposes. The Company will only enter into a total return swap transaction with highly rated financial institutions specialised in this type of transaction. In addition, the use of total return swap must comply with the investment objectives and policies and risk profile of the relevant Fund. The total commitments arising from the use of total return swaps together with the total commitments arising from the use of other derivative instruments may not, at anytime, exceed the net assets of the relevant Fund. The total return swaps were valued at the last available price on 30 September The unrealised gain or loss on total return swaps at year-end is represented by the values of interests to be received (or paid), based on relevant swap agreements interest rates less (or plus, respectively), the value of the performance to be paid (or received, respectively), based on the total return value of underlying assets, which is made of the current fair value of equities plus the dividend distributed for such equities for the relevant swap period. The unrealised appreciation/(depreciation) is shown in the Statement of Net Assets under Net unrealised appreciation/(depreciation) on total return swaps. On 30 September 2015, the following Fund was committed to total return swaps:

50 Page 18 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Total Return Swaps (cont) Local Currency Nominal (in local currency) Market Value Equity Leg (in local currency) Fund Pays Fund Receives Counterparty Unrealised Appreciation/ (Depreciation) (in base currency) Schroder AS UK Dynamic Absolute Return Fund GBP 31,899,041 31,833,757 Interest + spread = % Performance of the underlying UBS 86,975 British stocks (basket) GBP 21,762,074 22,175,274 Performance of the underlying British stocks (basket) Interest + spread = % UBS ( 491,725 ) GBP ( 404,750 ) Options Contracts Options contracts were valued at the last available price on 30 September 2015 and the net market value is shown in the Statement of Net Assets under Net market value of options. On 30 September 2015, the following Fund was committed to outstanding options contracts: Par Value Subject to Call or Put Contract Counterparty Currency Premium Paid Market Value Unrealised (Depreciation) Schroder AS UK Dynamic Absolute Return Fund Put on FTSE 100 Index Strike Price 5, Expiring on 18-Dec-15 UBS GBP 480, ,800 (127,470) Put on FTSE 100 Index Strike Price 5, Expiring on 18-Dec-15 UBS GBP 441, ,625 (207,375) GBP 586,425 GBP (334,845) Directors Fees Each of the following directors received the remuneration shown below for the year under review: Marie-Jeanne Chevremont, Daniel de Fernando Garcia and Georges-Arnaud Saier received EUR 20,000 each. The remaining directors have waived their remuneration. Annual Management Fees The Investment Manager is entitled to receive management fees as remuneration for its services. Such fees are calculated and accrued daily by reference to the Net Asset Value of the Funds and are paid monthly. The actual rates payable as at 30 September 2015, which vary from Fund to Fund and from share class to share class, are set out in the following table. Fund Share Class Management Fee Schroder AS Agriculture Fund Schroder AS Commodity Fund Schroder AS Gold and Precious Metals Fund Schroder AS UK Dynamic Absolute Return Fund * A Shares 1.75% C Shares 1.25% D Shares 1.75% I Shares None A Shares 1.50% C Shares 1.00% D Shares 1.50% I, J & X Shares None A Shares 1.50% C Shares 1.00% D Shares 1.50% I Shares None C & R Shares 1.00% * Please refer to the Directors Report for the details of all corporate actions that occurred during the year under review.

51 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Page 19 Distribution fees Funds Class A, C, I, J, R and X Shares No distribution charge D Shares Distribution charge of 1.00% per annum of the net assets of Funds Performance Fees In accordance with the provisions of the current prospectus, the Investment Manager is entitled to receive performance fees in addition to management fees. The performance fee is 10% of the increase in the Net Asset Value per share over the financial year (except for Schroder AS UK Dynamic Absolute Return Fund, for which it is set at 20%) and is payable annually in October. The performance fee becomes due in the event of outperformance, that is, if the Net Asset Value per Share at the end of the relevant performance period exceeds the High Water Mark, i.e. by reference to the Net Asset Value per Share at the end of any previous performance period (the High Water Mark). In addition if a Shareholder redeems or switches all or part of their Shares before the end of a performance period, any accrued performance fee with respect to such Shares will crystallise on that Dealing Day and will then become payable to the Investment Manager. The High Water Mark is not reset on those Dealing Days at which performance fees crystallise following the redemption or switch of Shares. The Funds in relation to which performance fees were calculated during the year under review and the details of the relevant Investment Managers are set out in the table below. The performance fees payable for the year under review are shown in the Statement of Net Assets. Fund Investment Manager Share Classes Schroder AS Agriculture Fund Schroder Investment Management Limited All share classes except for the I and J classes Schroder AS Commodity Fund Schroder Investment Management Limited All share classes except for the I and J classes Schroder AS UK Dynamic Absolute Return Fund Schroder Investment Management Limited All share classes During the year under review, performance fees were payable for Schroder AS UK Dynamic Absolute Return Fund. Dividends The Directors declared the following dividends during the year under review. Record Date Ex-Dividend Date Payment Date Fund Currency Dividend per Share 25-Feb Feb Mar-2015 Schroder AS Commodity Fund J Distribution USD Aug Aug Sep-2015 Schroder AS Commodity Fund J Distribution USD Information for Residents of the Hong Kong SAR Registration of Portfolios On 30 September 2015, Schroder AS Agriculture Fund, Schroder AS Commodity Fund and Schroder AS Gold and Precious Metals Fund were registered for sale in Hong Kong SAR. Soft Commission Arrangements Pursuant to the requirements of the Hong Kong Securities and Futures Commission regulations, the following statement is made: Soft commission arrangements have been undertaken in respect of the Company. Services which are paid for through or by soft commission were in majority limited to the following areas: a) Research, analysis or price information including computer or other information facilities; b) Portfolio valuations; or c) Performance measurement.

52 Page 20 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Notes to the Financial Statements as at 30 September 2015 (cont) Information for Residents of the Hong Kong SAR (cont) Transactions with Connected Persons The Company has entered into agreements and arrangements with Schroder Investment Management Limited and its affiliates, under which a management fee, performance fee, distribution fee and a transfer agency fee are payable. These agreements and arrangements have been entered into in the ordinary course of business and on normal commercial terms. Details on management fees, distribution fees and performance fees are set out in the respective sections above. In addition, the Management Company is entitled to receive the customary charges for its services as administration agent, coordinator, domiciliary agent, global distributor, principal paying agent and registrar and transfer agent. These fees are accrued daily at an annual rate of up to 0.4% by reference to the Net Asset Value of the relevant portfolio and are paid monthly in arrears. Further details on fees payable by the Company can be found in the current prospectus. No transactions of the Company were effected through a broker who is a connected person of the Management Company, the Investment Adviser or the Directors of the Company. Disclosure of Transaction Costs The transaction costs are broker commission fees and taxes related to the purchase and sale of transferable securities. Custodian transaction costs are not included in this table, please refer to the Custodian Fees shown in the Statement of Operations. The transactions costs for the year under review are as follows: Fund Currency Commissions Other expenses Total Schroder AS Agriculture Fund USD Schroder AS Commodity Fund USD 227,893 27, ,713 Schroder AS Gold and Precious Metals Fund USD 96,856 52, ,001 Schroder AS UK Dynamic Absolute Return Fund GBP 118,395 38, ,484 Subsequent Events On 5 October 2015, Schroder AS Asian Long Term Value Fund was launched. Schroder Investment Management (Hong Kong) Limited is the Investment Manager of the fund.

53 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Fund Performance as at 30 September 2015 (Unaudited) Page 21 Sub-Fund/Class * Launch Date 1 Year % 2 Years % 3 Years % Since Launch % Schroder AS Agriculture Fund A Acc 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund D Acc 31 October 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc 27 October 2006 ( ) ( ) ( ) ( 7.44 ) Benchmark: Rogers International Agriculture Index ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) CHF Hedged ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc EUR Hedged 27 October 2006 ( ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) EUR Hedged ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Acc GBP Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Acc GBP Hedged 27 October 2006 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund C Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund I Acc GBP Hedged 27 October 2006 ( ) ( ) ( ) ( 9.26 ) Benchmark: Rogers International Agriculture Index (TR) GBP Hedged ( ) ( ) ( ) ( ) Schroder AS Agriculture Fund A Acc SGD Hedged 15 February 2008 ( ) ( ) ( ) ( ) Benchmark: Rogers International Agriculture Index (TR) SGD Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Dis 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund D Acc 31 October 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Dis 18 December 2009 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund J Dis 7 March 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund X Acc 26 February 2010 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc CAD Hedged 05 May 2006 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark CAD Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc CHF Hedged 16 January 2008 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark CHF Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc EUR Hedged 31 October 2005 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark EUR Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund A Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund C Dis GBP Hedged 20 April 2007 ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc GBP Hedged 09 June 2006 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark GBP Hedged ( ) ( ) ( ) ( ) Schroder AS Commodity Fund I Acc JPY Hedged 14 May 2010 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark JPY Hedged ( ) ( ) ( ) ( ) * All fund performance data are on a NAV to NAV basis (Bid to Bid), adjusted for dividends, net of expenses and gross of taxes. 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 back the amount originally invested.

54 Page 22 Schroder Alternative Solutions Audited Annual Report 30 September 2015 Fund Performance as at 30 September 2015 (Unaudited) (cont) Sub-Fund/Class * Launch Date 1 Year % 2 Years % 3 Years % Since Launch % Schroder AS Commodity Fund A Acc SGD Hedged 21 September 2007 ( ) ( ) ( ) ( ) Benchmark: Composite Benchmark SGD Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Dis 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Dis 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund D Acc 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund I Acc 07 July 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc CHF Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc CHF Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund I Acc CHF Hedged 07 July 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs CHF Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc EUR Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Acc EUR Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund I Acc EUR Hedged 07 July 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs EUR Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Dis GBP Hedged 07 July 2008 ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund C Dis GBP Hedged 07 July 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs GBP Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc SGD Hedged 29 August 2008 ( ) ( ) ( ) ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs SGD Hedged ( ) ( ) ( ) ( ) Schroder AS Gold and Precious Metals Fund A Acc RMB Hedged 31 October 2012 ( ) ( ) - ( ) Schroder AS Gold and Precious Metals Fund C Acc RMB Hedged 31 October 2012 ( ) ( ) - ( ) Schroder AS Gold and Precious Metals Fund I Acc RMB Hedged 31 October 2012 ( ) ( ) - ( ) Benchmark: 75% Spot Gold / 25% NYSE Arca Gold Bugs RMB Hedged ( ) ( ) - ( ) Schroder AS Gold and Precious Metals Fund A Acc PLN Hedged 03 April 2013 ( ) ( ) ( ) ( ) Benchmark:75% Spot Gold / 25% NYSE Arca Gold Bugs PLN Hedged ( ) ( ) ( ) ( ) Schroder AS UK Dynamic Absolute Return Fund C Acc 11 February Schroder AS UK Dynamic Absolute Return Fund C Acc EUR Hedged 11 February Schroder AS UK Dynamic Absolute Return Fund C Acc USD Hedged 11 February Schroder AS UK Dynamic Absolute Return Fund R Acc 11 February Schroder AS UK Dynamic Absolute Return Fund R Acc EUR Hedged 11 February Schroder AS UK Dynamic Absolute Return Fund R Acc USD Hedged 11 February , * All fund performance data are on a NAV to NAV basis (Bid to Bid), adjusted for dividends, net of expenses and gross of taxes. 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 back the amount originally invested.

55 Audit Report Schroder Alternative Solutions Audited Annual Report 30 September 2015 Page 23 Audit Report To the Shareholders of Schroder Alternative Solutions We have audited the accompanying financial statements of Schroder Alternative Solutions and of each of its subfunds, which comprise the statement of net assets and the portfolio of investments as at 30 September 2015 and the statement of operations and the statement of changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the SICAV for the financial statements The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the SICAV determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the Réviseur d entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the Réviseur d entreprises agréé, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Réviseur d entreprises agréé considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of Schroder Alternative Solutions and of each of its subfunds as of 30 September 2015, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matters Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers, Société coopérative Represented by Luxembourg, 11 January 2016 Valerie Piastrelli PricewaterhouseCoopers, Société coopérative, 2, rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg, Grand Duchy of Luxembourg T: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU