IMPORTANT TAX INFORMATION

Transcription

1 IMPORTANT TAX INFORMATION The following information about your enclosed 1099-DIV from s should be used when preparing your 2017 tax return. Form 1099-DIV reports dividends, exempt-interest dividends, capital gains, and return of capital distributed by s for the calendar year Dividends and capital gains that were reinvested into additional shares, as well as those paid in cash should be reported on your tax return. s within your account that received less than $10.00 in dividends are not reported on your Form DIV, but must be included on your tax return. These dividend amounts can be found in the detail of your annual account statement. If any income tax is withheld from your distribution it will be reported in box 4 for federal withholding or box 14 for your state withholding. Short-term capital gains are reported in Box 1a, and are subject to ordinary income tax rates. Long-term capital gains are reported in Box 2a, and qualify for long-term capital gains tax rates. Return of capital distributions are reported in Box 3 (Non-dividend distributions) and are not taxable. Cost basis must be adjusted as a result of a return of capital reported in Box 3. Additional information is available on our website at Qualified Dividend Income information can be found in the schedule on page 2. Foreign Tax information can be found in the schedule on page 3. The exempt-interest dividends paid by the Municipal s and the Schroders Tax- Aware Bond are listed on your Form 1099-DIV in Box 10. State by state details can be found on page 4. Private activity bond interest may be needed to calculate whether the Alternative Minimum Tax applies to you. The amount is reported on your Form 1099-DIV in Box 11 Direct Federal Obligations,, and Repurchase Agreements information can be found on page 5. The information provided in these materials has been included for your reference and is not intended to be all inclusive. For specific tax questions, please consult your tax advisor. s does not offer tax advice. Shareholders should consult a tax advisor for additional information. This information is provided for informational purposes only. If you have other questions about your tax information, please call a service specialist at (888) Office hours are 9 a.m. to 6 p.m. Eastern Time. You may also visit our Tax Center at Mutual funds are distributed by s Distributors, LLC (HFD), Member FINRA

2 Qualified Dividend Income Shareholders in the following s may be eligible for a reduced tax rate on certain qualified dividends. The portion of the dividend income that qualifies for a reduced tax rate is reported separately in Box 1b, and is also included in the total ordinary dividend amount in Box 1a. Dividends that are not qualified dividends are taxed at the appropriate tax rate for ordinary income. Amounts designated as qualified dividend income under the Internal Revenue Code are: Qualified Dividend The Balanced % The Balanced Income 51.85% The Capital Appreciation 21.09% The Checks and Balances 29.38% The Conservative Allocation 23.33% The Core Equity 79.63% The Dividend & Growth % The Emerging Markets Equity 91.25% Schroders Emerging Markets Equity % Environmental Opportunities 63.82% The Equity Income % The Floating Rate 0.04% The Floating Rate High Income 0.02% The Global All-Asset 7.92% Global Capital Appreciation % Global Equity Income % Global Impact 12.77% Global Real Asset 53.15% Growth Allocation 54.26% The Growth Opportunities 17.65% The Healthcare 75.53% The High Yield 0.11% Schroders Income Builder 82.69% International Equity 72.98% The International Growth % Schroders International Multi-Cap Value 49.08% The International Opportunities 56.13% The International Small Company 46.81% Schroders International Stock % The International Value 45.25% Long/Short Global Equity % The MidCap 98.27% The MidCap Value % Moderate Allocation 27.20% Multi-Asset Income 26.79% Quality Value 52.56% Real Total Return 6.56% Small Cap Core % Small Cap Growth 92.72% The Total Return Bond 0.02% Schroders U.S. Small Cap Opportunities 36.20% Schroders U.S. Small/Mid Cap Opportunities 55.25% The World Bond 30.58% 2

3 Foreign Tax The s elected to give shareholders the benefit of the applicable foreign tax credits. The ordinary dividend amount in Box 1a of Form 1099-DIV includes your proportionate share of foreign taxes paid by the fund in addition to your income dividend. Your proportionate share of foreign taxes paid by the fund also appears in Box 6. You may treat these taxes as if paid by you and you are potentially eligible for a tax credit or deduction on your tax return. Tax reporting rules vary depending on the size of the foreign tax credit or deduction claimed. In some cases, it is necessary to identify the foreign taxes paid by country this detail can be obtained from the contact center. However, we strongly encourage you to consult with your tax advisor. Foreign Source Income and Foreign taxes paid are listed below for Foreign Source Income Percentage Foreign Taxes Paid Per Share Amounts The Conservative Allocation 5.77% $ Emerging Markets Equity 99.26% $ Schroders Emerging Markets Equity 99.48% $ Global Equity Income 66.45% $ The Global Real Asset 64.20% $ The Growth Allocation 16.46% $ International Equity 89.62% $ The International Growth 98.99% $ Schroders International Multi-Cap Value (March ex-date) 63.87% $ Schroders International Multi-Cap Value (June ex-date) 63.87% $ Schroders International Multi-Cap Value (September ex-date) 63.87% $ Schroders International Multi-Cap Value (December ex-date) 63.87% $ The International Opportunities 50.12% $ The International Small Company 46.15% $ Schroders International Stock 99.53% $ The International Value 66.24% $ The Moderate Allocation 11.12% $

4 The schedule below summarizes the percentage of exempt income received by various s on a stateby-state basis. Under certain state tax laws, interest income from certain municipal securities and U.S. Territories may be exempt from tax for the residents of that state. Municipal Income The Municipal Opportunities Municipal Short Duration The Municipal Real Return Schroders Tax- Aware Bond ALABAMA 1.62% 0.75% 0.00% 0.99% 0.10% ALASKA 0.50% 0.33% 0.00% 0.92% 0.00% ARIZONA 1.44% 1.30% 1.62% 0.88% 2.87% ARKANSAS 0.00% 0.00% 0.00% 0.00% 0.00% CALIFORNIA 6.68% 12.11% 9.96% 15.22% 27.79% COLORADO 1.77% 1.26% 3.83% 1.07% 0.11% CONNECTICUT 2.36% 2.33% 4.72% 1.84% 0.57% DELAWARE 0.00% 0.00% 0.00% 0.00% 0.00% DISTRICT OF COLUMBIA 2.16% 0.13% 0.46% 3.00% 0.85% FLORIDA 3.85% 5.34% 2.66% 6.53% 7.05% GEORGIA 1.08% 1.67% 1.62% 1.96% 1.43% GUAM 0.00% 0.00% 0.77% 0.00% 0.00% HAWAII 0.00% 0.20% 0.00% 0.70% 0.00% IDAHO 0.05% 0.04% 0.00% 0.00% 0.00% ILLINOIS 22.34% 15.78% 21.86% 18.00% 8.06% INDIANA 0.25% 1.47% 0.00% 0.89% 0.70% IOWA 0.00% 0.00% 0.00% 0.00% 0.10% KANSAS 0.00% 0.37% 0.00% 0.00% 0.00% KENTUCKY 0.02% 0.32% 0.28% 0.66% 0.00% LOUISIANA 3.63% 2.97% 2.47% 1.98% 0.29% MAINE 0.00% 0.00% 0.00% 0.00% 0.00% MARYLAND 0.00% 0.08% 0.21% 0.05% 0.00% MASSACHUSETTS 1.79% 1.45% 1.44% 0.10% 6.69% MICHIGAN 2.94% 3.75% 3.57% 1.84% 0.99% MINNESOTA 1.40% 0.27% 1.05% 0.10% 0.36% MISSISSIPPI 0.00% 0.32% 0.00% 0.00% 0.00% MISSOURI 1.02% 2.00% 0.91% 1.33% 0.29% MONTANA 0.89% 0.39% 0.00% 0.00% 0.00% NEBRASKA 0.51% 0.00% 1.67% 0.00% 0.00% NEVADA 0.66% 0.61% 1.55% 0.30% 0.77% NEW HAMPSHIRE 0.00% 0.00% 0.00% 0.00% 0.00% NEW JERSEY 3.52% 3.73% 2.88% 1.61% 4.00% NEW MEXICO 0.00% 1.04% 0.10% 0.00% 0.18% NEW YORK 6.77% 8.41% 3.81% 9.13% 7.14% NORTH CAROLINA 0.06% 1.22% 0.00% 0.06% 1.38% NORTH DAKOTA 0.00% 0.00% 1.56% 0.00% 0.00% OHIO 5.87% 4.52% 1.01% 2.51% 6.17% OKLAHOMA 0.00% 0.00% 0.00% 0.72% 0.35% OREGON 0.31% 1.51% 0.26% 0.76% 0.48% PENNSYLVANIA 4.80% 5.38% 8.55% 5.30% 3.22% PUERTO RICO 0.08% 0.26% 0.14% 0.41% 0.00% RHODE ISLAND 1.20% 0.97% 2.51% 1.77% 1.28% SOUTH CAROLINA 0.33% 0.32% 0.00% 1.06% 1.64% SOUTH DAKOTA 0.00% 0.68% 0.45% 0.25% 0.00% TENNESSEE 2.02% 1.43% 4.48% 0.00% 0.66% TEXAS 13.55% 8.97% 10.52% 10.75% 9.55% UTAH 0.00% 0.43% 0.00% 0.00% 0.11% VERMONT 0.00% 0.60% 0.00% 0.46% 0.00% VIRGINIA 1.17% 0.92% 0.48% 0.39% 0.48% WASHINGTON 3.07% 2.32% 2.04% 3.92% 3.22% WEST VIRGINIA 0.00% 0.32% 0.00% 0.00% 0.08% WISCONSIN 0.27% 1.72% 0.54% 2.52% 1.04% WYOMING 0.00% 0.02% 0.00% 0.02% 0.00% 4

5 Direct Federal Obligations,, Repurchase Agreements Under certain state laws, dividends paid by a regulated investment company that are derived from income from direct federal obligations, government agencies, and repurchase agreements may not be taxable to residents of that state. Please consult your tax advisor to determine which, if any, of the obligations listed below may be exempt from your state income tax. s with income from direct federal obligations, government agencies, or repurchase agreements are: Direct Federal Obligations FNMA GNMA FHLMC & Others Repurchase Agreements The Balanced 8.16% 0.00% 0.32% 0.01% 0.00% The Balanced Income 0.09% 0.00% 0.00% 0.00% 0.00% The Checks and Balances 2.54% 2.35% 1.06% 1.50% 0.00% The Conservative Allocation 7.00% 4.51% 2.40% 3.28% 0.00% Schroders Emerging Markets Debt and Currency 9.38% 0.00% 0.00% 0.00% 0.00% The Emerging Markets Local Debt 0.11% 0.00% 0.00% 0.00% 0.00% Schroders Emerging Markets Multi-Sector Bond 0.22% 0.00% 0.00% 0.00% 0.00% The Global All-Asset 2.50% 1.92% 0.20% 1.03% 0.00% The Global Real Asset 9.75% 0.00% 0.00% 0.00% 0.00% Schroders Global Strategic Bond 15.01% 0.14% 0.00% 0.33% 0.00% The Growth Allocation 1.28% 1.36% 0.66% 0.98% 0.00% Schroders Income Builder 1.80% 0.00% 0.00% 0.00% 0.00% The Inflation Plus 78.75% 0.03% 0.00% 0.00% 0.00% Schroders International Multi-Cap Value 0.20% 0.00% 0.00% 0.00% 0.00% Moderate Allocation 2.92% 1.92% 1.03% 1.43% 0.00% Multi-Asset Income 0.13% 0.57% 0.00% 0.24% 0.00% The Quality Bond 4.94% 29.20% 19.39% 22.80% 0.00% The Short Duration 0.24% 2.65% 0.13% 1.48% 0.00% The Strategic Income 4.00% 0.90% 0.00% 0.90% 0.00% Schroders Tax-Aware Bond 8.13% 0.00% 0.00% 0.00% 0.00% The Total Return Bond 9.26% 8.56% 3.85% 5.47% 0.00% The Unconstrained Bond 5.37% 4.17% 1.54% 3.53% 0.00% The World Bond 8.47% 0.20% 0.00% 0.11% 0.00% Residents of All States/Territories In using the above table, we strongly encourage you to consult with your tax adviser for advice in helping you determine your state tax liability. For California, Connecticut and New York Residents The Inflation Plus held more than 50% in direct federal obligations. The remaining and Schroder s listed above held less than 50% of assets in direct federal obligations at the end of each quarter. 5