Schroder Dynamic Multi Asset Fund Interim Report and Accounts April 2018

Transcription

1 Schroder Dynamic Multi Asset Fund Interim Report and Accounts April 2018

2 Schroder Dynamic Multi Asset Fund April 2018 Contents Fund Information 1 3 Investment objective and policy 3 Financial highlights 3 Fund information 3 Ongoing charges figure 4 Total purchases and sales 4 Review of Investment Activities 1 5 Risk Profile 1 6 Risk and reward indicator 6 Specific risks 6 Net Asset Value and Comparative Tables 1 8 Unit price range 8 Net revenue 8 Net asset value 9 Fund performance 10 Portfolio Statement 1 11 Summary of Portfolio Transactions 1 21 Largest purchases 21 Largest sales 21 Statement of the Manager s Responsibilities 22 Statement of Total Return (unaudited) 23 Statement of Change in Net Assets Attributable to Unitholders (unaudited) 23 Balance Sheet (unaudited) 24 Notes to the Accounts (unaudited) 25 Basis of preparation 25 Accounting policies 25 General Information 1 26 Authorisation 26 Other information 26 1 Collectively these comprise the Manager s report. 2 Schroder Dynamic Multi Asset Fund

3 Fund Information Investment objective and policy The Schroder Dynamic Multi Asset Fund s (the fund ) investment objective is to deliver positive returns over a market cycle based on long term capital growth and income through investment in collective investment schemes as well as directly held transferable securities, derivatives, cash, deposits, warrants and money market instruments. The fund may gain exposure to alternative asset classes including but not limited to property, commodities, hedge funds and private equity directly where permitted or through investment in transferable securities and other permitted assets which themselves invest in these asset classes. Financial highlights Dealing price % change A Income units 70.06p 70.67p (0.86) A Accumulation units 71.97p 71.70p 0.38 X Accumulation units 57.55p 57.04p 0.89 Z Income units 72.83p 73.50p (0.91) Z Accumulation units 78.92p 78.32p 0.77 Z Accumulation EUR Hedged units The performance of a hedged unit class may differ from other unit classes of the fund because the return on unhedged unit classes is based on both the performance of the fund s investments and the performance of the portfolio currencies relative to sterling whereas the return on a hedged unit class is based only on the performance of the fund s investments. Fund information Launch date 2 May 2008 Launch price 50.00p per A Income unit 50.00p per A Accumulation unit 50.00p per Z Income unit 50.00p per Z Accumulation unit Launch date 11 September 2015 Launch price 50.00p per X Accumulation unit Launch date 24 June 2016 Launch price per Z Accumulation EUR Hedged unit Interim Final Accounting dates 30 April 31 October Revenue allocation date 31 December Schroder Dynamic Multi Asset Fund 3

4 Fund Information (continued) Ongoing charges figure For the period For the year For the year to to to A Income units 1.39% % 1.40% 2 A Accumulation units 1.39% % 1.40% 2 X Accumulation units % % 0.05% 2 Z Income units 0.40% % 0.40% 2 Z Accumulation units 0.40% % 0.40% 2 Z Accumulation EUR Hedged units 0.50% % % The Ongoing charges figure is annualised based on the fees incurred during the accounting period. 2 The expenses of the fund have been capped during the period/year. 3 The Annual management charge for X Accumulation units is invoiced directly to unitholders and is therefore not included in the Ongoing charges figure for that unit class. 4 The Ongoing charges figure includes the hedging programme cost of 0.10%. 5 The Ongoing charges figure includes the hedging programme cost of 0.10%. This has been disclosed for comparative purposes, previously this cost was charged to the unit class but was excluded from the Ongoing charges figure since the launch of the unit class. Total purchases and sales For the period For the year to to s 000 s Total purchases 521, ,357 Total sales 467, ,789 4 Schroder Dynamic Multi Asset Fund

5 Review of Investment Activities From 31 October 2017 to 30 April 2018, the price of Z Accumulation units on a dealing price to dealing price basis rose 0.77%. In comparison, the Consumer Price Index +4% increased by 0.83% 1. Co-Fund Manager: Johanna Kyrklund 1 Source: Office for National Statistics. Gains over the period mostly came from equities, despite difficulties in the first quarter of Within equities, our preference for emerging markets and the broad US market helped us. Fixed income positions lost value as yields rose, although this was partially offset by long emerging market debt positions. Currency was negative over the period, as sterling strengthened and the cost of hedging the US dollar rose. All in all, we are very conscious that we are in the late stages of the cycle and market prices have moved to reflect a lot of our views: US and emerging market equities have outperformed, the dollar has weakened and the Japanese yen and emerging market currencies have strengthened. We cannot afford to be complacent and have therefore increased diversification in our portfolio. Based on our indicators, the traffic light is still green but expensive valuations pose a speed limit to returns and we have shifted our strategy down a gear. Joined Schroders in March 2007 and is based in London Johanna leads the Multi-Asset Investments division, is a member of the Group Management Committee (GMC) and Chairs Global Asset Allocation Committee Responsible for investments on behalf of Multi-Asset clients globally and is the lead portfolio manager of the Schroder Diversified Growth Strategy Prior to joining Schroders, Johanna specialised in tactical asset allocation strategies From 2005 she worked at Insight Investment where she managed an unconstrained global macro absolute return fund. From 1997 to 2005 she worked at Deutsche Asset Management where she was Head of Asset Allocation in the UK and fund manager of the Deutsche tactical asset allocation fund CFA Charterholder Degree in Philosophy, Politics & Economics from Oxford University Johanna is a member of the Cambridge University Investment Board Co-Fund Manager: Remi Olu-Pitan Joined Schroders in 2006 Responsible for investments on behalf of Multi-Asset clients globally and is a co-portfolio manager of the Schroder Life Diversified Growth Fund Member of the Global Asset Allocation Committee Member of the risk premium team of the Strategic Investment Group Multi-Asset (SIGMA) specialising in equity research Investment career commenced in 2006 upon joining Schroders CFA Charterholder Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. Masters in Statistics, London School of Economics. Bachelors in Business Finance, Durham University Schroder Dynamic Multi Asset Fund 5

6 Risk Profile Risk and reward indicator Lower risk Potentially lower reward Higher risk Potentially higher reward The risk category is based upon the fund s risk target and there is no guarantee that the fund will achieve it. The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly. The fund s risk category is not guaranteed to remain fixed and may change over time. A fund in the lowest category does not mean a risk free investment. Specific risks The fund is authorised as a non-ucits retail scheme. The investment and borrowing powers of these types of scheme are wider than those for UCITS funds whilst still aiming to provide a prudent spread of risk. The fund invests in assets which are exposed to currencies other than sterling. Exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. For non-hedged unit classes exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. There is no guarantee that the hedging strategy applied in hedged unit classes will entirely eliminate the adverse effects of changes in exchange rates between the base currency and the portfolio currencies. In addition, it should be noted that hedging transactions will be entered into whether or not the currency of a hedged unit class is declining or increasing in value in relation to the base currency or portfolio currencies. Hedged unit classes aim to provide investors with a return correlated to the portfolio currencies performance of the fund by reducing the effect of exchange rate fluctuations between the base currency and the portfolio currencies. The fund invests in less developed markets which are generally less well regulated than the UK. They may be less liquid and may have less reliable custody arrangements. The fund invests in emerging markets and the Far East. This involves a high degree of risk and should be seen as long term in nature. The fund is index unconstrained and has the potential for greater volatility. The fund may invest in unregulated collective investment schemes, which involves a higher degree of risk as they are not regulated by the Financial Conduct Authority (FCA). The funds may not be readily realisable and priced less frequently than listed shares or authorised unit trusts, and therefore price swings may be more volatile. More than 35% of the property of the fund may be invested in Government securities. The fund may invest in higher yielding bonds (non-investment grade). The risk of default is higher with non-investment grade bonds than with investment grade bonds. Higher yielding bonds may also have an increased potential to erode your capital sum than lower yielding bonds. The fund may invest in a wide range of derivatives and alternative investments (including commodities, hedge funds, real estate funds and private equity) in order to meet its investment objectives. One of the aims of the Manager is to achieve volatility targets for the portfolio and in order to do this leverage will be used. The use of leverage can increase gains as well as losses and expose the fund to increased risk. Whilst it is intended that the additional risk that leverage exposes the fund to is controlled by value at risk methodology, there can be no guarantee that this risk control may be achieved especially under extreme or changing market conditions. 6 Schroder Dynamic Multi Asset Fund

7 Risk Profile (continued) The fund may use derivatives for specific investment purposes. This involves a higher degree of risk and may lead to a higher volatility in the unit prices of the fund. For these reasons, the purchase of units should not normally be regarded as a short term investment. Schroder Dynamic Multi Asset Fund 7

8 Net Asset Value and Comparative Tables Unit price range Financial year to 31 October A Income units A Accumulation units Highest Lowest Highest Lowest dealing dealing dealing dealing p p p p Financial period to 30 April Financial year to 31 October X Accumulation units Z Income units Highest Lowest Highest Lowest dealing dealing dealing dealing p p p p Financial period to 30 April Financial year to 31 October Z Accumulation units Z Accumulation EUR Hedged units Highest Lowest Highest Lowest dealing dealing dealing dealing p p Financial period to 30 April Net revenue A Income units A Accumulation units Financial year to 31 October pence per unit pence per unit 2015 Nil Nil Financial period to 30 April 2018 Nil Nil 8 Schroder Dynamic Multi Asset Fund

9 Net Asset Value and Comparative Tables (continued) X Accumulation units Z Income units Financial year to 31 October pence per unit pence per unit 2015 Nil Financial period to 30 April 2018 Nil Nil Z Accumulation Z Accumulation units EUR Hedged units Financial year to 31 October pence per unit pence per unit Nil Nil 1 Financial period to 30 April 2018 Nil Nil 1 There was no distribution as the total amount distributable was below de minimis. Net asset value Net asset Net asset value value per unit Number of As at 31 October 000 s p units in issue 2015 Income units ,628 A Accumulation units 3, ,264,831 X Accumulation units ,000 Z Income units 1, ,705,260 Z Accumulation units 208, ,814, A Income units ,244 A Accumulation units 1, ,526,391 X Accumulation units 59, ,406,372 Z Income units 1, ,800,646 Z Accumulation units 396, ,987,762 Z Accumulation EUR Hedged units ,000 Schroder Dynamic Multi Asset Fund 9

10 Net Asset Value and Comparative Tables (continued) Net asset Net asset value value per unit Number of As at 31 October 000 s p units in issue 2017 A Income units ,727 A Accumulation units 9, ,066,349 X Accumulation units 88, ,472,434 Z Income units 1, ,765,392 Z Accumulation units 710, ,222,528 Z Accumulation EUR Hedged units , at 30 April A Income units ,112 A Accumulation units 9, ,153,921 X Accumulation units 89, ,881,917 Z Income units 1, ,009,755 Z Accumulation units 724, ,517,068 Z Accumulation EUR Hedged units ,780 Fund performance Net asset Net asset value per unit value per unit p p as at as at % change A Income units A Accumulation units X Accumulation units Z Income units Z Accumulation units Z Accumulation EUR Hedged units (0.04) Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. 10 Schroder Dynamic Multi Asset Fund

11 Portfolio Statement Collective Investment Schemes 52.66% (54.72%) Absolute Return Funds 7.05% (0.00%) Holding at Market Value % of net s assets Schroder Multi-Asset Strategies Fund I Accumulation USD^ 718,312 58, , Cash Funds 17.99% (18.32%) Schroder Offshore Cash Fund B Accumulation^ 27,384,292 50, Schroder Sterling Liquidity Plus Fund I Accumulation GBP 1 821,191 98, , Exchange Traded Funds 0.41% (1.60%) SPDR Gold Shares 37,213 3, , Global Corporate Bond Funds 3.00% (2.00%) Schroder Global Corporate Bond Fund I Accumulation USD^ 2,543,250 24, , Global Emerging Markets Equity Funds 3.65% (3.64%) Schroder QEP Global Emerging Markets Fund X Accumulation GBP^ 43,588,696 30, , Global Equity Funds 13.50% (19.78%) Schroder Advanced Beta Global Equity Quality Fund X Accumulation GBP^ 30,505,771 20, Schroder Advanced Beta Global Equity Small and Mid-Cap Fund X Accumulation GBP^ 31,948,448 23, Schroder QEP Global Core Fund X Accumulation GBP^ 50,426,582 67, , Schroder Dynamic Multi Asset Fund 11

12 Portfolio Statement (continued) Global High Yield Bond Funds 7.06% (4.45%) Holding at Market Value % of net s assets Schroder Global High Yield Fund I Accumulation USD^ 1,501,288 58, , Multi-Asset Strategy Funds 0.00% (4.93%) Collective Investment Schemes total 434, Government Bonds 45.11% (38.51%) Argentina 0.04% (0.10%) Argentina Government Bond 18.2% 03/10/2021 AR$8,851, Brazil 0.71% (0.86%) Brazil Letras do Tesouro Nacional 0% 01/04/2019 BRL6,054 1, Brazil Letras do Tesouro Nacional 0% 01/07/2020 BRL11,787 2, Brazil Notas do Tesouro Nacional 10% 01/01/2023 BRL5,683 1, Brazil Notas do Tesouro Nacional 10% 01/01/2027 BRL5,561 1, , Colombia 0.38% (0.50%) Colombia Government Bond 7.75% 14/04/2021 COP3,460,000, Colombia Government Bond 9.85% 28/06/2027 COP6,749,000,000 2, , Hungary 0.24% (0.43%) Hungary Government Bond 7% 24/06/2022 HUF336,670,000 1, Schroder Dynamic Multi Asset Fund

13 Portfolio Statement (continued) Holding at Market Value % of net s assets Hungary (continued) Hungary Government Bond 5.5% 24/06/2025 HUF243,780, , Indonesia 0.69% (0.83%) Indonesia Government Bond 8.25% 15/07/2021 IDR36,624,000,000 2, Indonesia Government Bond 7% 15/05/2027 IDR41,719,000,000 2, Indonesia Government Bond 8.25% 15/05/2036 IDR27,277,000,000 1, , Malaysia 0.69% (0.86%) Malaysia Government Bond 4.16% 15/07/2021 MYR14,529,000 2, Malaysia Government Bond 3.955% 15/09/2025 MYR9,794,000 1, Malaysia Government Bond 4.232% 30/06/2031 MYR4,987, Malaysia Government Bond 4.736% 15/03/2046 MYR1,658, , Mexico 0.69% (0.84%) Mexican Bonos 6.5% 10/06/2021 MX$682,293 2, Mexican Bonos 8% 07/12/2023 MX$246, Mexican Bonos 7.75% 29/05/2031 MX$332,837 1, Mexican Bonos 7.75% 13/11/2042 MX$208, , Peru 0.16% (0.11%) Peru Government Bond 8.2% 12/08/2026 PEN2,652, Schroder Dynamic Multi Asset Fund 13

14 Portfolio Statement (continued) Holding at Market Value % of net s assets Peru (continued) Peru Government Bond 6.9% 12/08/2037 PEN2,490, , Philippines 0.33% (0.38%) Philippine Government Bond 4.95% 15/01/ ,000, Philippine Government Bond 3.9% 26/11/ ,000, Philippine Government Bond 6.25% 14/01/ ,000,000 1, , Poland 0.66% (0.87%) Poland Government Bond 2% 25/04/2021 PLN17,313,000 3, Poland Government Bond 3.25% 25/07/2025 PLN6,390,000 1, Poland Government Bond 5.75% 25/04/2029 PLN1,668, , Romania 0.16% (0.31%) Romania Government Bond 2.25% 26/02/2020 RON1,675, Romania Government Bond 5.95% 11/06/2021 RON3,720, Romania Government Bond 4.75% 24/02/2025 RON1,325, , Russia 0.40% (0.55%) Russian Federal Bond OFZ 6.7% 15/05/2019 RUB41,497, Russian Federal Bond OFZ 7.6% 20/07/2022 RUB88,257,000 1, Russian Federal Bond OFZ 8.15% 03/02/2027 RUB129,021,000 1, Schroder Dynamic Multi Asset Fund

15 Portfolio Statement (continued) Holding at Market Value % of net s assets Russia (continued) Russian Federal Bond OFZ 7.7% 23/03/2033 RUB16,444, , South Africa 0.64% (0.34%) South Africa Government Bond 10.5% 21/12/2026 ZAR35,374,962 2, South Africa Government Bond 8.5% 31/01/2037 ZAR33,255,367 1, South Africa Government Bond 8.75% 28/02/2048 ZAR19,175,764 1, , Thailand 0.69% (0.76%) Thailand Government Bond 3.875% 13/06/2019 THB24,056, Thailand Government Bond 1.875% 17/06/2022 THB68,399,000 1, Thailand Government Bond 2.125% 17/12/2026 THB68,925,000 1, Thailand Government Bond 3.4% 17/06/2036 THB41,421, Thailand Government Bond 2.875% 17/06/2046 THB50,289,000 1, , Turkey 0.38% (0.76%) Turkey Government Bond 7.4% 05/02/2020 6,643,185 1, Turkey Government Bond 8.5% 14/09/2022 8,159,234 1, Turkey Government Bond 10.6% 11/02/2026 4,997, , United Kingdom 32.65% (27.25%) UK Treasury Bill 0% 08/05/ ,770,000 27, UK Treasury Bill 0% 16/07/ ,000,000 51, Schroder Dynamic Multi Asset Fund 15

16 Portfolio Statement (continued) Holding at Market Value % of net s assets United Kingdom (continued) UK Treasury Bill 0% 03/09/ ,050,000 33, UK Treasury Bill 0% 17/09/ ,250,638 27, UK Treasury Bill 0% 01/10/ ,000,000 53, UK Treasury Bill 0% 08/10/ ,000,000 36, UK Treasury Bill 0% 15/10/ ,800,000 15, UK Treasury Bill 0% 29/10/ ,000,000 21, , United States of America 5.60% (2.76%) US Treasury Inflation Indexed 0.65% 15/01/2026 US$28,388,000 21, US Treasury Inflation Indexed FRN 0.5% 15/01/2028 US$34,676,900 24, , Government Bonds total 372, Swaps 0.09% (0.00%) Commodity Index Swap J.P.Morgan Pay 0.25% Receive USJMAB126E.CI 14/05/2018 USD 58,811, Commodity Index Swap J.P.Morgan Pay 0.25% Receive USJMAB126E.CI 14/05/2018 USD 9,071,821 (9) 0.00 Commodity Index Swap J.P.Morgan Pay 0.10% Receive USBCOMF3.CI 15/06/2018 USD 4,760, Swaps total Forward Foreign Currency Contracts (1.15)% ((0.04)%) Buy AUD 310,000 Sell GBP 168,202 24/05/2018 AUD 310, Buy BRL 27,238,000 Sell USD 8,187,328 03/05/2018 BRL 27,238,000 (227) (0.03) Buy BRL 27,238,000 Sell USD 7,760,556 04/06/2018 BRL 27,238, Buy CAD 330,000 Sell GBP 183,647 24/05/2018 CAD 330, Schroder Dynamic Multi Asset Fund

17 Portfolio Statement (continued) Forward Foreign Currency Contracts (continued) Holding at Market Value % of net s assets Buy CHF 720,000 Sell GBP 525,711 24/05/2018 CHF 720, Buy CLP 4,954,000,000 Sell USD 8,309,989 24/05/2018 CLP 4,954,000,000 (98) (0.01) Buy COP 22,931,400,000 Sell USD 8,292,854 24/05/2018 COP 22,931,400,000 (82) (0.01) Buy DKK 3,250,000 Sell GBP 381,933 24/05/2018 DKK 3,250, Buy EUR 1,210,000 Sell GBP 1,059,097 24/05/2018 EUR 1,210, Buy EUR 46,441 Sell GBP 40,712 31/05/2018 EUR 46, Buy EUR 18,951,328 Sell PLN 79,100,000 24/05/2018 EUR 18,951, Buy HKD 7,550,000 Sell GBP 689,118 24/05/2018 HKD 7,550, Buy HUF 2,081,660,000 Sell USD 8,320,017 24/05/2018 HUF 2,081,660,000 (202) (0.02) Buy IDR 113,046,000,000 Sell USD 8,118,205 24/05/2018 IDR 113,046,000,000 (3) 0.00 Buy JPY 55,100,000 Sell GBP 362,286 24/05/2018 JPY 55,100, Buy PHP 428,337,000 Sell USD 8,195,798 24/05/2018 PHP 428,337, Buy PLN 56,103,000 Sell USD 16,679,500 24/05/2018 PLN 56,103,000 (444) (0.05) Buy RUB 473,700,000 Sell USD 7,688,687 24/05/2018 RUB 473,700,000 (128) (0.02) Buy TRY 65,389,000 Sell USD 16,050,201 24/05/2018 TRY 65,389,000 (10) 0.00 Buy TWD 239,200,000 Sell USD 8,159,367 24/05/2018 TWD 239,200,000 (51) (0.01) Buy USD 16,653,668 Sell AUD 21,414,000 24/05/2018 USD 16,653, Buy USD 8,187,328 Sell BRL 27,238,000 03/05/2018 USD 8,187, Buy USD 7,760,556 Sell BRL 27,238,000 04/06/2018 USD 7,760,556 (65) (0.01) Buy USD 8,398,176 Sell CAD 10,588,000 24/05/2018 USD 8,398, Buy USD 136,974,695 Sell GBP 98,113,360 24/05/2018 USD 136,974,695 1, Schroder Dynamic Multi Asset Fund 17

18 Portfolio Statement (continued) Forward Foreign Currency Contracts (continued) Holding at Market Value % of net s assets Buy USD 8,220,154 Sell ILS 28,840,000 24/05/2018 USD 8,220, Buy USD 8,160,952 Sell KRW 8,640,000,000 03/05/2018 USD 8,160, Buy USD 7,985,582 Sell KRW 8,640,000,000 24/05/2018 USD 7,985,582 (68) (0.01) Buy USD 8,209,561 Sell MXN 150,846,000 24/05/2018 USD 8,209, Buy USD 8,146,655 Sell MYR 31,719,000 24/05/2018 USD 8,146, Buy USD 8,288,503 Sell NZD 11,359,000 24/05/2018 USD 8,288, Buy USD 7,644,863 Sell RUB 471,000,000 24/05/2018 USD 7,644, Buy USD 16,417,168 Sell SEK 137,282,000 24/05/2018 USD 16,417, Buy USD 8,133,170 Sell TWD 238,432,000 24/05/2018 USD 8,133, Buy USD 8,131,727 Sell ZAR 97,573,000 24/05/2018 USD 8,131, Buy ZAR 97,100,000 Sell USD 8,092,307 24/05/2018 ZAR 97,100,000 (220) (0.03) Sell AUD 4,293,000 Buy GBP 2,343,304 24/05/2018 AUD (4,293,000) (15) 0.00 Sell CAD 5,326,000 Buy GBP 2,965,627 24/05/2018 CAD (5,326,000) (50) (0.01) Sell CHF 5,330,000 Buy GBP 3,876,175 24/05/2018 CHF (5,330,000) (51) (0.01) Sell DKK 9,815,000 Buy GBP 1,147,379 24/05/2018 DKK (9,815,000) (14) 0.00 Sell EUR 12,196,000 Buy GBP 10,617,325 24/05/2018 EUR (12,196,000) (136) (0.02) Sell HKD 102,814,000 Buy GBP 9,196,210 24/05/2018 HKD (102,814,000) (342) (0.04) Sell JPY 1,390,400,000 Buy GBP 9,104,568 24/05/2018 JPY (1,390,400,000) (169) (0.02) Sell NOK 2,749,000 Buy GBP 249,501 24/05/2018 NOK (2,749,000) (1) 0.00 Sell SEK 14,456,000 Buy GBP 1,213,716 24/05/2018 SEK (14,456,000) Schroder Dynamic Multi Asset Fund

19 Portfolio Statement (continued) Forward Foreign Currency Contracts (continued) Holding at Market Value % of net s assets Sell USD 482,615,807 Buy GBP 340,040,203 24/05/2018 USD (482,615,807) (11,152) (1.35) Forward Currency Contracts total (9,508) (1.15) Futures (0.70)% (1.74%) Hang Seng Mini Index May OMXS30 Index May 2018 (174) (66) (0.01) Australia 10 Year Bond June ,458 (723) (0.09) Canada 10 Year Bond June (48) (0.01) E-mini Russell 2000 Equity Index June ,131 (450) (0.05) EURO STOXX 50 Index June 2018 (78) (144) (0.02) Euro-Bobl June (7) 0.00 Euro-Bund June (14) 0.00 Euro-Buxl June (19) 0.00 FTSE 100 Index June 2018 (32) (160) (0.02) Japan 10 Year Bond Mini June (2) 0.00 Long Gilt June 2018 (18) (24) 0.00 MSCI Emerging Market Equity Index June (1,373) (0.17) NASDAQ 100 Emini Index June (118) (0.01) S&P 500 Emini Index June ,082 (3,773) (0.46) SPI 200 Index June TOPIX Index June , TOPIX Mini Index June US 5 Year Note June 2018 (28) US 10 Year Note June (192) (0.02) US 10 Year Ultra Note June 2018 (228) US Long Bond June 2018 (22) (5) 0.00 Futures total (5,815) (0.70) Schroder Dynamic Multi Asset Fund 19

20 Portfolio Statement (continued) Market Value 000 s % of net assets Portfolio of investments 792, Net other assets 32, Net assets attributable to unitholders 825, The comparative percentage figures in brackets are as at 31 October Unless otherwise stated, all securities are admitted to official stock exchange listings or are permitted collective investments schemes. ^ Unlisted, suspended or delisted security. A related party to the Fund. 1 Cash equivalents. 20 Schroder Dynamic Multi Asset Fund

21 Summary of Portfolio Transactions Largest purchases For the six months ended 30 April 2018 Cost 000 s Schroder Global High Yield Fund I Accumulation USD 57,027 Schroder Multi-Asset Strategies Fund I Accumulation USD 56,524 UK Treasury Bill 0% 01/10/ ,858 UK Treasury Bill 0% 16/07/ ,883 UK Treasury Bill 0% 08/10/ ,892 UK Treasury Bill 0% 03/09/ ,967 UK Treasury Bill 0% 08/05/ ,715 UK Treasury Bill 0% 17/09/ ,182 US Treasury Inflation Indexed FRN 0.5% 15/01/ ,895 UK Treasury Bill 0% 29/10/ ,936 Largest sales For the six months ended 30 April 2018 Proceeds 000 s Schroder Global High Yield I Accumulation GBP Hedged 57,162 Schroder Multi-Asset Strategies I Accumulation GBP Hedged 56,691 UK Treasury Bill 0% 15/01/ ,794 UK Treasury Bill 0% 03/04/ ,650 UK Treasury Bill 0% 19/03/ ,100 UK Treasury Bill 0% 09/04/ ,650 Schroder Advanced Beta Global Equity Value Fund X Accumulation GBP 29,287 UK Treasury Bill 0% 29/01/ ,993 UK Treasury Bill 0% 16/04/ ,800 Schroder Advanced Beta Global Equity Quality Fund X Accumulation GBP 15,416 A related party to the fund. Schroder Dynamic Multi Asset Fund 21

22 Statement of the Manager s Responsibilities The FCA s Collective Investment Schemes sourcebook (COLL) requires the Manager to prepare accounts for each annual and half yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true and fair view of the financial position of the fund and of its net revenue and the net capital gains on the property of the fund for the period. In preparing the accounts the Manager is required to: select suitable accounting policies and then apply them consistently; comply with the disclosure requirements of the Statement of Recommended Practice (SORP) for UK Authorised Funds issued by the Investment Management Association (IMA (now the Investment Association (IA))) in May 2014; follow generally accepted accounting principles and applicable accounting standards; prepare the accounts on the basis that the fund will continue in operation unless it is inappropriate to do so; keep proper accounting records which enable it to demonstrate that the accounts as prepared comply with the above requirements; make judgements and estimates that are prudent and reasonable. The Manager is responsible for the management of the fund in accordance with its Trust Deed, the Prospectus and the COLL, and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. The Manager s report and accounts for the period ended 30 April 2018 were signed on 20 June 2018 on behalf of the Manager by: J.A. Walker-Hazell Directors R.E. Stoakley 22 Schroder Dynamic Multi Asset Fund

23 Statement of Total Return (unaudited) For the six months ended 30 April s 000 s 000 s 000 s Income Net capital gains 1,084 17,261 Revenue 3,778 3,387 Expenses (1,326) (828) Net revenue before taxation 2,452 2,559 Taxation (475) (504) Net revenue after taxation 1,977 2,055 Total return before distributions 3,061 19,316 Distributions Change in net assets attributable to unitholders from investment activities 3,161 19,393 Statement of Change in Net Assets Attributable to Unitholders (unaudited) For the six months ended 30 April s 000 s 000 s 000 s Opening net assets attributable to unitholders 808, ,891 Amounts receivable on issue of units 100, ,996 Amounts payable on cancellation of units (86,896) (4,042) 13, ,954 Dilution adjustment Change in net assets attributable to unitholders from investment activities 3,161 19,393 Closing net assets attributable to unitholders 825, , The Opening net assets attributable to unitholders for the current period do not equal the Closing net assets attributable to unitholders for the comparative period as they are not consecutive periods. Schroder Dynamic Multi Asset Fund 23

24 Balance Sheet (unaudited) As at 30 April s 000 s Assets Investments 714, ,475 Current assets Debtors 17,690 5,235 Cash and bank balances 63,710 47,355 Cash equivalents 98, ,210 Total assets 894, ,275 Liabilities Investment liabilities (20,655) (4,868) Creditors Bank overdrafts (412) (8,862) Distributions payable 0 (22) Other creditors (48,026) (2,715) Total liabilities (69,093) (16,467) Net assets attributable to unitholders 825, , Schroder Dynamic Multi Asset Fund

25 Notes to the Accounts (unaudited) Basis of preparation The accounts have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the SORP for UK Authorised Funds issued by the IMA in May 2014 and in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)). Accounting policies The accounting policies applied are consistent with those of the annual accounts for the year ended 31 October 2017 and are described in those annual accounts. Schroder Dynamic Multi Asset Fund 25

26 General Information Manager Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Investment Adviser Schroder Investment Management Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Trustee J.P. Morgan Europe Limited Chaseside Bournemouth BH7 7DA Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority Registrar Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Administration Details Schroders FREEPOST RLTZ-CHSY-HBUT PO Box 1102 Chelmsford Essex CM99 2XX Investor Services Dealing Fax Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX Authorisation The fund is an authorised unit trust and is constituted pursuant to the COLL and is structured as a trust. The fund is a non-ucits retail scheme for the purpose of the categorisation of the COLL. Other information The Prospectus, the Key Investor Information Document and details of investment charges and costs are available on request or can be downloaded from our website 26 Schroder Dynamic Multi Asset Fund

27 For further literature please contact Schroder Investor Services on or at or visit our website at Issued in June 2018 by Schroder Unit Trusts Limited, 31 Gresham Street, London, EC2V 7QA. Registered Number England. Schroder Unit Trusts Limited is an authorised corporate director, authorised unit trust manager and an ISA plan manager, and is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped and monitored.