Schroder GAIA BlueTrend A Accumulation Share Class

Transcription

1 h April All data epressed as at March Schroder GAIA A Accumulation Share Class Fund Launch Date December Total Fund Size (Million) USD. Share Price End of Month (USD). Fund Manager Leda Braga & David Kitson (Systematica) Marketing Material Investment Objective and Policy Performance Analysis Performance (%) month months YTD year years Since Launch Average p.a. since launch Fund Dec Mar Jul Nov Mar Jul Nov Mar The return received may rise or fall as a result of currency fluctuations. 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. All fund performance data are on a NAV to NAV basis, net income reinvested. Data is not available for the time periods with no % growth stated. In case a share class is created after the fund's launch date, a simulated past performance is used, based upon the performance of an eisting share class within the fund, taking into account the difference in the ongoing charges and the portfolio transaction costs, and including the impact of any performance fees if applicable. The fund aims to provide capital growth by investing in bonds, equity, foreign echange and commodity markets. The investment manager has established a sophisticated computerised system which through quantitative analysis identifies trends and price patterns to determine trades which are then placed. The investment manager seeks to eploit opportunities where prices display persistent and identifiable upward or downward trends. The fund invests globally in bonds, shares, foreign echange and commodities, as well as in cash, deposits, money market instruments and investment funds investing in such instruments. The fund uses derivatives etensively. Investments can be made directly by purchasing physical holdings and/or indirectly by entering into financial derivative instruments. Investments in commodities will be made indirectly using a combination of linked bonds, options, swaps and/or commodity indices. The fund may hold synthetic short positions and may be net long or net short when long and short positions are combined.recommendation: Investors should seek independent advice and satisfy themselves that they have an understanding of the techniques employed by the manager. Monthly Returns (%) Discrete Yearly Performance (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year End Fund Fund Fund Q/ - Q/ Q/ - Q/ Q/ - Q/ Q/ - Q/ Q/ - Q/ Fund Performance Since Launch (%) Prospective investors should consult with their independent financial advisor with respect to their specific investment objectives, financial situation or particular needs to determine the suitability of investment.

2 Risk Considerations Counterparty risk: The counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the fund, potentially creating a partial or total loss for the fund. Counterparty risk / money market & deposit: A failure of a deposit institution or an issuer of a money market instrument could create losses. Credit risk: A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless. Currency risk: The fund can be eposed to different currencies. Changes in foreign echange rates could create losses. Derivatives risk: A derivative may not perform as epected, and may create losses greater than the cost of the derivative. Equity risk: Equity prices fluctuate daily, based on many factors including general, economic, industry or company news. High yield bond risk: High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk. Interest rate risk: A rise in interest rates generally causes bond prices to fall. Leverage risk: The fund uses derivatives for leverage, which makes it more sensitive to certain market or interest rate movements and may cause above-average volatility and risk of loss. Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares. Operational risk: Failures at service providers could lead to disruptions of fund operations or losses. Short selling risk: The fund may take positions that seek to profit if the price of a security falls. A large rise in the price of the security may cause large losses. Capital risk / distribution policy: the epenses of this share class are paid out of capital rather than out of investment income. Capital growth will be reduced and in periods of low growth capital erosion may occur. Fund Manager Comment After February's volatility spike things settled somewhat in March. However, the VIX and general volatility remained elevated across the market relative to the last two years. Market discussion was centred on two topics: trade wars instigated by the Trump administration and potential fallout of the FANG names due to the big data harnessing controversy surrounding Facebook. Given the dramatic outperformance of the main FANG stocks which has helped drive markets over the last two years, it seems only right that the market was in a bit of a panic as to the outcome for these important names. President Trump did indeed impose tariffs on aluminium and steel imports and the rest of the world looked to China and what it might do with agricultural products, namely soybean. Elsewhere, rates were once again raised at the Federal Reserve System (the Fed) with little impact on the USD, while -year Treasuries showed signs of a bid coming in around levels of.%. Despite a promising start to the month, the Facebook big data controversy sparked panic in the top performing stocks of the recent cycle. The NASDAQ underperformed the rest of the markets losing appro..% in March. Volatility remained elevated yet traded sideways all month, confirming the low volatility cycle witnessed over the last two years is over. Despite almost flat positioning in NASDAQ futures the fund posted losses in the equities space throughout March. Despite the Fed raising rates again with further increases planned this year, yield volatility was not all that apparent. More noticeable was the lack of any major moves in the face of trade wars, higher inflation and an increase in equity volatility. The fund transitioned to an overall net short delta (long yields) in March albeit with a mied picture globally. Yields marginally softened from the highs as the market absorbed what was construed as a shortfall of epectation. The fund posted losses in the fied income space in March. The energy markets benefited again from further drawdowns in inventory, along with strong buying from China and further optimism on global growth. Oil prices traded to the highs of the year but failed to break higher, perhaps due to long holders taking the opportunity to reduce eposure amid the talk of trade wars. Oil derivatives also traded higher with heating oil, gasoline and gasoil all putting in another positive month. The fund continued to maintain net long positioning in the energy space and posted positive performance in March. The agriculture prices settled in March after the squeeze seen in February. The fund increased its net short delta to a very modest short position. In meats, the fund maintained a very modest short delta. Overall, the fund posted small gains in the agriculture space in March. Base metal prices gave back some gains, but at a very orderly pace, despite being at the forefront of most people's minds due to US tariff speculation. Precious metals had another quiet month as it mainly just tracked the movements of the USD. Base metals gave back some of their gains and the fund now has much more mied positioning. Long delta has effectively been reduced with some shorts creeping in. The fund increased its very modest short position in silver while increasing its long in gold. The fund posted losses in the metals space in March. In FX, the USD was still languishing at the lows of the year as it continued to trade sideways in March. Low volatility in the FX markets persisted as the USD continued to trade sideways in a tight range. The fund maintained net short USD vs G- pairs, albeit reduced slightly from the start of the month. In emerging market FX, the fund increased its short USD delta vs emerging market pairs consistently throughout the month.

3 Portfolio Structure Eposure Analysis (%) Gross Rates Long,. Gross FX Long. Gross Commodity Long. Gross Equities Long. Gross CDS / CDX Long. Gross CDS / CDX Short -. Gross Equities Short -. Gross Commodity Short -. Gross FX Short -. Gross Rates Short -,. Fund Gross Eposure,. Fund Net Eposure -. Fund Gross Eposure (delta-adjusted),. Fund Net Eposure (delta-adjusted) -. Cash & Cash Equivalents. Number of Positions Long Short Holdings Analysis Stock names have been suppressed for short positions. Top Long Holdings Holdings Sector % NAV. F/C Mo Euro Euribor Others.. F/C Day Bank Bill Others.. US Treasuries Government.. F/C Jpn Y Bond(Ose) Jun Government.. F/C Bank Accept Futr Others.. F/C Day Euro$ Futr Others.. F/C Day Sterling Fu Others.. F/C Short Euro-Btp Fu Jun Government.. F/C Euro-Bobl Future Jun Government.. F/C Euro-Btp Future Jun Government. Top Short Holdings Sector Country % NAV. Government South Korea -.. Government South Korea -.. Government Canada -.. Government Australia -.. Consumer Europe -.. Health Care Europe -.. Government United Kingdom -.. Consumer Europe -.. Health Care United States -.. Tech / Telecom Europe -.

4 Asset Allocation (%) Region Long Europe Short Net position North America Asia Pacific Emerging Markets Other Currency Euro US Dollar UK Sterling Japanese Yen Swiss Franc Singapore Dollar Other Sector Interest Rate Month Interest Rate Long Bonds FX Equity Energy Agricultural CDS Metals Volatility Performance Contribution Analysis epressed is month to date contribution on a gross of fees basis using a total return methodology. The impact of any currency movement at a position level is reflected within each position's return. Stock names have been suppressed for short positions. Summary (%) Long Equity -. Short Equity. Corporate Bonds -. Inde Options. Currency -. Other. Region (%) Europe e-uk -. United Kingdom -. North America. Pacific e-japan. Emerging Markets. Other (including Cash & FX) -. ASC (FAS ) Summary % NAV Level -. Level. Level. Non-Trading Balance/Cash.

5 Liquidity Breakdown Historic data based on % participation rate in average traded volumes over last days assuming % redemption. This data is a representation only and should not be viewed as an indication of ongoing/future liquidity. Percentages for liquidity assessment are subject to change. Summary % NAV. to days.. to days.. to days.. > days. Information Schroder Investment Management (Luembourg) S.A., rue Höhenhof Senningerberg Luembourg Tel.: () Fa: () For your security, communications may be taped or monitored. SEDOL Bloomberg Reuters ISIN CEDEL Fund Domicile Fund Base Currency Dealing Frequency Entry Charge Ongoing Charges (latest available) Performance Fee Distribution Fee. % Settlement Timing T+ days Accumulation BZBWJP SCBTAAU:LX LU.LUF LU Luembourg USD Weekly on Wednesdays and Month End ( days notice). % of gross investment amount. % % of the absolute outperformance over a High Water Mark. Third party data is owned or licensed by the data provider and may not be reproduced or etracted and used for any other purpose without the data provider's consent. Third party data is provided without any warranties of any kind. The data provider and issuer of the document shall have no liability in connection with the third party data. The Prospectus and/or contain additional disclaimers which apply to the third party data. This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder GAIA (the "Company"). Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares. Subscriptions for shares of the Company can only be made on the basis of its latest Key Investor Information Document and prospectus, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, from Schroder Investment Management (Luembourg) S.A. The Company is a Luembourg-registered UCITS recognised in the UK under Section of the Financial Services and Markets Act. There will be no right to cancel any agreements to purchase shares under section. of the UK Financial Services Conduct of Business Sourcebook. All or most of the protection provided by the UK regulatory system does not apply to investments in the Company and compensation will not be available under the UK Financial Services Compensation Scheme. An investment in the Company entails risks, which are fully described in the prospectus. Schroders has epressed its own views and opinions in this document and these may change. This document is issued by Schroder Investment Management (Luembourg) S.A.,, rue Höhenhof, L- Senningerberg, Luembourg. Registered No. B.. Approved for issue in the UK by Schroder Investment Management Limited,, Gresham Street, London ECV QA. Authorised and regulated by the Financial Conduct Authority. Registration No., England.