Frontier Markets The Global Emerging Markets of tomorrow

Frontier Markets The Global Emerging Markets of tomorrow Edward Evans Emerging Markets Equity Product Manager Schroders February 2014 For Professional Investors and Advisors only.

MSCI Frontier Markets Index by country & sector Europe Middle East Regions Country Weight (%) Bulgaria 0.1 Croatia 1.4 Estonia 0.4 Kazakhstan 3.0 Lithuania 0.1 Romania 1.4 Serbia 0.2 Slovenia 1.7 Ukraine 0.1 Total 8.6 Africa Country Weight (%) Kenya 3.5 Mauritius 1.0 Nigeria 14.1 Total 18.6 Country Weight (%) Bahrain 0.6 Jordan 0.5 Kuwait 18.1 Lebanon 1.7 Morocco 4.6 Oman 3.0 Qatar 15.2 Tunisia 0.5 UAE 15.3 Total 59.5 Asia Bangladesh 1.1 Pakistan 4.0 Sri Lanka 1.3 Vietnam 2.3 Total 8.7 Latin Argentina 4.6 Total 4.6 Currently dominated by Middle East and Financials Source: FactSet, MSCI. Data to December 31 st, 2013 Countries and sectors are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. Weight (%) Europe 8.6 Africa 18.6 Middle East 59.5 Asia 8.7 Latin 4.6 Total 100.0 Sectors Weight (%) Consumer Discretionary 0.10 Consumer Staples 8.6 Energy 8.3 Financials 53.2 Health Care 2.0 Industrials 9.0 Materials 3.6 Telecommunication Services 14.0 Utilities 1.2 Total 100.0 2

MSCI Frontier Markets Index by sector Frontier Markets Emerging Markets Developed Markets Sectors Weight (%) Weight (%) Weight (%) Consumer Discretionary 0.1 8.9 12.3 Consumer Staples 8.6 8.6 9.9 Energy 8.3 11.3 9.4 Financials 53.2 26.6 20.9 Health Care 2.0 1.7 11.3 Industrials 9.0 6.5 11.5 IT 0.0 16.0 12.1 Materials 3.6 9.7 5.7 Telecoms 14.0 7.4 3.8 Utilities 1.2 3.3 3.1 Total 100.0 100.0 100.0 Massive deposits of natural resources are not currently reflected in equity markets Source: FactSet, MSCI. Data to December 31 st, 2013 Sectors are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 3

Market capitalization and GDP relative to other emerging markets Nominal GDP 2014 (US $bn)¹ GEM China FM* Russia Brazil India Mexico Korea Turkey Taiwan South Africa Malaysia Egypt 517 371 325 276 Frontier markets have 2nd largest GDP after China, but the stock markets are massively underdeveloped relative to their economies 1 Source: IMF world economic outlook database. Estimates for 2014 as of October 2013 2 Source: FactSet, MSCI. Data to December 31 st, 2013 *FM (Frontier Markets): Argentina, Bahrain, Bangladesh, Bulgaria, Croatia, Estonia, Jordan, Kazakhstan, Kenya, Kuwait, Lebanon, Lithuania, Mauritius, Nigeria, Oman, Pakistan, Qatar, Romania, Serbia, Slovenia, Sri Lanka, Tunisia, Ukraine, UAE, Vietnam **MSCI Free float adjusted Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 851 1,396 1,271 1,750 2,215 2,170 3,595 Frontiers 15% of GEMS 24,524 9,761 Frontier Market Cap** vs. Emerging Markets (US $bn)² GEM China Korea Taiwan Brazil S Africa India Russia Mexico Malaysia Frontiers Turkey Egypt 7 57 146 141 205 240 232 282 406 442 613 Frontiers 4% of GEMS 3,796 752 4

GDP growth Differences between FM, EM and DM GDP growth (forecasts) GDP growth p.a. 8% 7% 6% 5% 4% 3% 2% 1% 0% 2013e 2013-2022 2022-2031 2031-2041 2042-2050 Frontier Emerging Developed Frontier economies expect to grow faster than Emerging or Developed economies Source: CITI Investment Research and Analysis. Estimates as at January 2014. The opinions stated in this presentation include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realized. Please see important notes at the end of this document. 5

Markets in times of High Growth Korea 60% 12% 40% 10% 20% 8% 0% 6% -20% 4% -40% February 1981 February 1992 GDP Growth = 9.6% p.a. Stockmarket performance = 18.2% p.a. -60% 0% 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 2% Korea Market 5yr CAGR (lhs) Korea GDP 5yr CAGR (rhs) When economies grow quickly, stock markets usually perform very strongly Source: FactSet, Bloomberg. Data to 31 st December 2009 Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 6

Fiscal & current accounts Fiscal Balance as % of GDP¹ Current Account as % of GDP² FM Europe FM Africa FM Middle East FM Asia FM Latin FM Total GEM DM FM Europe FM Africa FM Middle East FM Asia FM Latin FM Total GEM DM 19.0% -8% -6% -4% -2% 0% 2% 4% 6% 2001 2014e -3% 0% 3% 6% 9% 12% 15% 2001 2014e Fiscal balance and current account picture better than developed and emerging Source: ¹Haver, EIU. Data as at January 2014 ²IMF Data Mapper. Estimates for 2014 as at October 2013 The opinions stated in this presentation include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realized. Please see important notes at the end of this document. Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 7

FX Reserves FX Reserves as a % of GDP (2014 estimates) % 100 235 200 80 80 74 60 40 20 44 38 34 29 28 27 27 23 23 23 20 17 14 13 13 10 10 7 4 2 2 31 28 0-20 UAE* Kuwait* Lebanon* Qatar* Bahrain* Serbia Bulgaria Oman* Croatia Romania Mauritius Jordan* Tunisia* Lithuania Vietnam Nigeria Kenya Kazakhstan Bangladesh Ukraine Sri Lanka Argentina Pakistan Slovenia Estonia Frontier Markets GEMS Despite being less developed, Frontier countries have strong reserves Source: Haver, EIU. Data as at January 2014 *EFG-Hermes. Data as at January 2013, includes sovereign wealth funds Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 8

Foreign Direct Investment into Frontier Markets US$ bn 220 200 180 Forecast 6.0% 5.0% 160 140 4.0% 120 100 3.0% 80 60 2.0% 40 20 1.0% 0 0.0% 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 FDI $bn FDI as % GDP (rhs) Rising FDI will support economic growth and development Source: Haver, EIU. Data as of January 2014 Countries include: Argentina, Bahrain, Bangladesh, Bulgaria, Croatia, Estonia, Jordan, Kazakhstan, Kenya, Kuwait, Lithuania, Mauritius, Nigeria, Oman, Pakistan, Qatar, Romania, Serbia, Slovenia, Sri Lanka, Tunisia, Ukraine, UAE, Vietnam Information and opinions obtained from third parties, including forecasts, have been obtained from sources we consider to be reliable. We do not accept responsibility for errors of fact obtained from third parties, and there is no guarantee that any forecasts or opinions will be realized. 9

Competitive advantages DEMOGRAPHICS Lebanon Tunisia NATURAL RESOURCES Bahrain Kuwait Oman Qatar UAE Jordan Oman Saudi Arabia Nigeria Kazakhstan Argentina Ukraine Pakistan Bangladesh Vietnam Kenya LOW LABOR COSTS Bulgaria Croatia Estonia Lithuania Mauritius Romania Serbia Slovenia Sri Lanka Diverse competitive advantages Source: Schroders Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 10

Demographics Median age in years 50 40 30 20 10 0 Germany Japan Slovenia Bulgaria Croatia Estonia Lithuania Romania Ukraine Serbia Russia US China Mauritius Qatar UAE Bahrain Sri Lanka Argentina Brazil Oman Lebanon Tunisia Vietnam Kuwait Kazakhstan India Bangladesh Pakistan Jordan Kenya Nigeria Frontier Markets Emerging Markets Developed Markets Frontier countries tend to have relatively young populations Source: UN Population Division, June 2013. Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 11

Labour costs per hour (in US$) Asia and Latin America $ 45 40 37.2 35 30 28.6 25 20 15 10 5 0 0.3 1.0 1.1 1.7 3.7 5.6 10.7 Bangladesh* Sri Lanka Brazil Argentina China Vietnam* India* Major Emerging Markets Frontier Markets Developed Markets Japan United States Frontier Markets benefit from very competitive labour costs Source: Haver, EIU. 2014 estimates as at January 2014 *UBS/ILO estimates as at June 2011 Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 12

Oil & Gas reserves % of World Proven resources 24 20 16 12 Total Oil reserves 34% of world Total Gas reserves 26% of world 13.4 15.9 8 4 0 6.1 1.0 0.3 0.5 1.4 5.9 3.3 2.2 2.8 1.8 0.7 4.4 Kuwait Oman Qatar Oil UAE Gas Nigeria Kazakhstan Saudi Arabia Significant natural resources Source: BP Statistical Review World Energy June 2013. Data for 2012 Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 13

MSCI Frontier equity market index Market Cap US ($mn) Weight % No of Stocks Weighted average MSCI Foreign Ownership Limit Kuwait 25,571 18.1 8 49.9% United Arab Emirates* 21,508 15.3 10 23.9% Qatar* 21,369 15.2 13 19.2% Nigeria* 19,869 14.1 15 30.9% Oman* 6,615 4.7 6 34.1% Morocco 6,444 4.6 8 18.9% Pakistan 5,623 4.0 12 19.8% Argentina 4,927 3.5 6 39.1% Kenya 4,218 3.0 8 36.0% Kazakhstan 4,214 3.0 3 32.7% Slovenia 3,234 2.3 11 15.5% Vietnam* 2,461 1.7 3 55.3% Lebanon* 2,330 1.7 5 42.7% Croatia 2,036 1.4 3 21.7% Romania 1,978 1.4 4 12.9% Bangladesh 1,811 1.3 3 43.7% Sri Lanka 1,564 1.1 4 25.0% Mauritius 1,428 1.0 2 51.0% Bahrain* 896 0.6 3 22.8% Jordan 768 0.5 3 9.5% Tunisia 726 0.5 3 35.5% Estonia 517 0.4 2 46.0% Serbia 329 0.2 2 16.6% Ukraine* 194 0.1 2 16.5% Lithuania* 178 0.1 2 17.4% Bulgaria* 169 0.1 2 31.9% Total 140,977 100.0 143 - MSCI GEMS 3,796,289-824 - MSCI World 31,942,986-1610 - MSCI FM provides reasonable country and stock diversification Source: Factset and MSCI. Data to December 31 st, 2013. *Some currencies are pegged to the USD, some to EUR and some are not officially pegged but are managed currencies. Total weight of these countries is 52% of the index. Countries mentioned are shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 14

Equity market information Frontier market liquidity Countries Six Month Average Daily Traded 5* largest stocks as % Value US$ Mn of the index United Arab Emirates 106.2 74.2 Qatar 42.5 70.5 Argentina 34.9 95.9 Pakistan 25.7 75.2 Kuwait 18.0 76.3 Nigeria 13.9 64.3 Vietnam 12.6 78.3 Morocco 8.9 0.0 Kenya 4.6 98.1 Kazakhstan 4.3 100.0 Oman 4.0 83.4 Romania 3.9 100.0 Bangladesh 3.6 95.3 Days taken to buy most liquid 70% of MSCI index Fund Size Assumed % of average daily volume bought each day $50mn $100mn 10% 3 days 5 days 25% 1 day 2 days 50% 1 day 1 day Frontier Markets less liquid than Emerging but still investable Source: FactSet, Bloomberg, MSCI, Schroders as of December 31 st, 2013 *Less, if country index holds less than 5 stocks Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. Countries Six Month Average Daily Traded 5* largest stocks as % Value US$ Mn of the index Sri Lanka 1.4 100.0 Lebanon 1.2 100.0 Slovenia 0.9 100.0 Jordan 0.9 100.0 Mauritius 0.6 100.0 Croatia 0.5 100.0 Bulgaria 0.4 100.0 Serbia 0.3 100.0 Estonia 0.3 100.0 Lithuania 0.3 100.0 Bahrain 0.2 100.0 Tunisia 0.2 100.0 Ukraine 0.0 100.0 15

Frontier Markets vs. GEMS and Developed Index (Jan 2009 = 100) Index (Jan 2009 = 100) 275 120 250 225 200 175 150 125 100 75 Feb 09 Nov 09 Jul 10 Mar 11 Dec 11 Aug 12 Apr 13 Dec 13 110 100 90 80 70 60 Feb 09 Nov 09 Jul 10 Mar 11 Dec 11 Aug 12 Apr 13 Dec 13 MSCI Frontier MSCI Emerging MSCI World Frontier relative to GEM Frontier relative to World Frontier Markets have not participated in market recovery since 2009 Source: FactSet and MSCI, December 31 st, 2013 (Net total return indices, USD) Market indices are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 16

Valuations Countries Weight % NTM EPSG Peak* PE Historic PE¹ Prospective PE Kuwait 18.0 15.9% 43.8 18.1 12.7 United Arab Emirates 15.1 5.2% 51.3 16.2 16.1 Qatar 15.0 13.1% 40.0 14.4 12.1 Nigeria 14.0 14.6% 28.7 13.2 11.0 Argentina 4.6 10.7% 446.6 6.2 6.6 Morocco 4.5-3.4% 35.1 13.8 14.2 Pakistan 4.0 15.9% 16.2 10.4 8.7 Kenya 3.5 17.7% 21.8 14.3 11.9 Oman 3.0 6.0% 18.3 10.7 10.6 Kazakhstan 3.0 14.4% 10.5 7.6 6.1 Vietnam 2.3 17.8% 41.0 16.1 11.7 MSCI Frontiers -- 11.5% 17.8 13.2 11.3 MSCI EM -- 11.5% 20.6 12.1 10.2 MSCI World -- 11.4% 30.2 17.9 14.4 Valuations well below their peak and cheap versus developed markets Source: Schroders, FactSet, Bloomberg, MSCI as at December 31 st, 2013. *Since Dec 2001. ¹Last twelve months Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 17

Correlations* 2005-2013 Correlation coefficients Qatar 1.00 Qatar Kuwait Oman UAE¹ Croatia Nigeria Slovenia Kazakhstan Kuwait 0.49 1.00 Oman 0.49 0.62 1.00 UAE¹ 0.65 0.56 0.58 1.00 Croatia 0.47 0.36 0.35 0.48 1.00 Nigeria 0.23 0.46 0.40 0.47 0.44 1.00 Slovenia 0.08 0.10 0.21 0.02 0.05 0.08 1.00 Kazakhstan 0.30 0.32 0.42 0.29 0.51 0.36-0.07 1.00 MSCI Frontiers MSCI Frontiers 0.72 0.77 0.69 0.82 0.61 0.56 0.05 0.42 1.00 MSCI GEMs 0.51 0.40 0.45 0.52 0.67 0.27 0.02 0.58 0.61 1.00 MSCI GEMs MSCI World 0.49 0.46 0.45 0.56 0.69 0.31-0.08 0.57 0.64 0.88 1.00 S&P GSCI Index MSCI World S&P GSCI Index 0.52 0.44 0.46 0.47 0.56 0.33 0.14 0.39 0.58 0.58 0.56 1.00 Frontier Markets tend towards low correlation with MSCI GEMs, MSCI World, S&P GSCI and each other *Note: A Correlation Coefficient of +1 shows that two series rise and fall together, -1 shows that when one rises the other falls (and vice versa), 0 shows there is no relationship, Countries <3% of MSCI Frontier Markets index excluded. 1 Since January 2005 Source: FactSet, Bloomberg, Schroders, data to December 31 st, 2013. Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 18

MSCI Frontier Markets vs. MSCI Global Emerging Markets MSCI Frontier Markets vs. MSCI Global Emerging Markets Dividend Yield % 9 8 7 6 5 4 3 2 1 0 Dec 02 Jul 04 Feb 06 Sep 07 Apr 09 Nov 10 Jun 12 Dec 13 MSCI Emerging MSCI Frontier Frontier markets have a higher dividend yield than emerging markets Source: FactSet. Data to December 31 st, 2013 19

Fund allocation Institutional funds allocated to EM and Frontier (to 31 st December 2013) US$ bn 11,000 $10,077bn 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 $1,088 bn $20 bn Developed Emerging Frontier Few international investors have exposure to Frontier stock markets Source: CITI Investment Research and Analysis, EPFR. Data as of December 31 st, 2013 20

GEM funds holdings in Frontier Markets % of GEM funds AUM invested in Frontier Markets 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Dec 95 Jul 98 Feb 01 Sep 03 Mar 06 Oct 08 May 11 Nov 13 Frontier Markets are under owned Source: EPFR. Data to November 30 th, 2013 This presentation provides opinions which may include forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realized. 21

Why Frontier Markets? Attractive demographics, low labour costs and large resource base Strong economic growth potential & strong economic fundamentals Liberalisation of economies and capital markets provides excellent investment opportunities Low correlation with developed and emerging markets provides good diversification Inefficient capital markets Why Now? Foreign investor interest increasing Liberalisation process gathering momentum Beneficial impact of strong Chinese/Indian growth and FDI Attractively valued versus developed markets Currently under owned by international investors Frontier Markets give exposure to growth potential and provide diversification benefits Source: Schroders Frontier Markets August 2013 22

Why Schroders for Frontier Markets? DISCIPLINED & SYSTEMATIC APPROACH targeting 50% of value added from country and 50% from stock decisions QUANTITATIVE proprietary model drives country decisions together with judgmental overlay Bottom up alpha driven by FUNDAMENTAL research carried out by our analysts PRO-ACTIVE approach to RISK incorporating rigorous risk controls, including alpha adjusted tracking error and stop loss rule SIGNIFICANT GLOBAL RESOURCES - Emerging Markets Equity team of 37 experienced investment professionals. Frontier regional expertise with fund manager and analysts based in the Middle East. Source: Schroders Frontier Markets September 2013

Schroder ISF* Frontier Markets Investment mandate: Benchmark: Frontier Markets MSCI Frontiers Markets Net (TR) Inception date: December 15, 2010 Performance to 31 st January 2014 in US$ % 2013 2012 2011 Schroder ISF Frontier Markets (A-Acc shares) +39.9 +18.6-18.3 MSCI Frontier Markets Index Net (TR) +25.9 +8.9-18.7 Relative performance +14.0 +9.7 +0.4 Annualised periods to 31 st January 2014 in US$ % 1 year 2 years p.a 3 years p.a Since inception p.a. Schroder ISF Frontier Markets (A-Acc shares) +33.6 +30.1 +12.8 +11.4 MSCI Frontier Markets Index Net (TR) +18.1 +17.2 +4.0 +4.3 Relative performance +15.5 +12.9 +8.8 +7.1 Source: Schroders, Portfolio Performance shown is A-Acc shares *Schroder International Selection Fund The fund and benchmark have different pricing pints (intra-day versus closing price respectively) so there may be a performance timing effect at month-end. Due to recent market volatility, this timing effect may be larger than usual during specific periods and may have either a positive or negative impact on the NAV. However, these effects are expected to even out over time 24

Schroder Frontier Markets Equity Composite Investment mandate: Benchmark: Frontier Markets MSCI Frontiers Markets Net (TR) Inception date: December 31, 2010 Performance to 31 st January 2014 in US$ % 2013 2012 2011 Schroder Frontier Markets Equity Composite +46.2 +20.9-16.8 MSCI Frontier Markets Index Net (TR) +25.9 +8.9-18.7 Relative performance +20.3 +12.0 +1.9 Tracking Error 6.0 5.6 5.1 Information Ratio 3.4 2.1 0.4 Annualised periods to 31 st January 2014 in US$ % 1 year 2 years p.a 3 years p.a Since inception p.a. Schroder Frontier Markets Equity Composite +38.3 +34.4 +15.8 +14.5 MSCI Frontier Markets Index Net (TR) +18.1 +17.2 +4.0 +3.8 Relative performance +20.2 +17.2 +11.8 +10.7 Tracking Error 6.0 5.7 5.4 5.6 Information Ratio 3.3 3.0 2.2 1.9 Source: Schroders. Performance shown gross of fees Past performance is not a guide to future performance. The value of an investment can go down as well as up and is not guaranteed. Please see the end of the presentation for performance notes. 25

Competitor analysis Schroder ISF Frontier Markets Quartile ranking to January 31 st, 2014 1 Year 3 Years 5 Years Schroder ISF* Frontier Markets A Acc 1 1 - Source : Schroders, Morningstar Direct Morningstar Direct: Performance for Schroder ISF Frontier Markets A Acc. Database Name : GEM Offshore Universe All Strategies USD/ Frontier Markets 26

Frontier Markets Attribution 2013 Fund Benchmark* Total Return Total Return Allocation Selection Total Effect Explanation Argentina -- 66.0-1.10 -- -1.10 U/w. Market outperformed by 40% Bahrain -- -4.4 0.28 -- 0.28 Bangladesh 28.1 3.7 0.06 0.55 0.61 U/w National Bank and Prime Bank Bulgaria -- 97.8 0.00 -- 0.00 Croatia -- 1.7 0.50 -- 0.50 U/w. Market underperformed by 24% Estonia -- 12.2 0.11 -- 0.11 Georgia 144.5 -- 2.45 -- 2.45 Off benchmark position, Bank of Georgia, outperformed by 119% Jordan -- -5.5 0.31 -- 0.31 Kazakhstan 27.9 9.0-0.56 1.06 0.49 O/w. Market underperformed by 17%. O/w Kcell and u/w Kazmunaigas Kenya 18.3 47.7-0.80 0.07-0.73 U/w. Market outperformed by 22%. Kuwait 41.9 5.0 1.84 5.56 7.39 U/w. Market underperformed by 21%. O/w Kuwait Investment Project and u/w Zain and NBK Lebanon -1.0-7.4 0.60 0.11 0.71 Lithuania -- 20.5 0.06 -- 0.06 Mauritius 29.1 26.3 0.05 0.07 0.12 Morocco -- -0.3 0.22 -- 0.22 Nigeria 40.7 29.2 0.13 1.70 1.83 O/w UBA. U/w Guiness Nigeria Oman 12.6 15.9 0.04-0.05-0.01 Pakistan 36.5 34.6-0.17 0.19 0.02 Qatar 54.2 30.0 0.26 3.93 4.19 O/w Gulf international and Qatar National Bank Romania 1.4 32.1 0.09-0.04 0.05 Saudi Arabia 28.1 -- 0.26 -- 0.26 Serbia -- 25.6 0.06 -- 0.06 Slovenia -- 23.0 0.16 -- 0.16 Sri Lanka 9.9 10.4 0.01 0.05 0.06 Tanzania -42.9 -- -0.82 -- -0.82 Off benchmark position, Capital Drilling, underperformed by 69% Tunisia -- -5.9 0.28 -- 0.28 Ukraine 14.1-15.6-1.13 0.94-0.19 O/w. Market underperformed by 41%. O/w MHP UAE 100.2 90.0 2.38 1.25 3.64 O/w. Market Outperformed by 64%. O/w Emaar Properties, First Gulf Bank, Union National Bank and Air Arabia Vietnam 7.4 7.2 0.27 0.10 0.37 [Cash] -- -- -1.06 -- -1.06 Cash held in a rising market Subtotal -- -- 4.75 15.49 20.24 [Residual] -- -- -- -- 0.03 Total 46.16 25.89 -- -- 20.27 Source: Schroders, Factset, Gross. Total performance is calculated based on the Schroder regional composite. Attribution data is shown for a representative account. *Performance is compared to the MSCI Frontier Markets Net (TR), Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The value of an investment can go down as well as up and is not guaranteed. The above attribution data was sourced from FactSet which uses bottom up methodology whereby constituents of both the index and the fund are priced at the same point in time thus removing timing differences. FactSet returns do not take into account Transaction costs or Management fees. FactSet assumes trades go through at closing prices rather than the actual price that may have been traded at during the day. The accounting data used by FactSet is un-audited, whereas the data used for actual fund performance is audited, therefore any subsequent cleaning of data will not be reflected in FactSet. 27

Frontiers Attribution (representative account) Summary Attributions 2011 2012 2013 3 years to Dec 13 p.a Index Performance -18.7 +8.9 +25.9 +3.7 Relative Performance* +1.9 +12.0 +20.3 +10.0 Derived from: Country Allocation 0.79 1.93 4.76 +1.60 Stock Selection 1.17 10.13 15.51 +8.44 Both country allocation and stock selection contribute to strong outperformance Source: Schroders. * May not tie in to the below due to rounding. Actual attribution based on a Frontiers Market representative account. Performance is calculated based on the Schroder Frontiers Composite. The residual has been equally split between country and stock selection. 28

Frontier Markets Strategy Frontiers Index Target Active Tgt Target Active Tgt Comments 02/06/2014 01/08/2014 01/08/2014 02/06/2014 02/06/2014 Kazakhstan 2.8 6.1 + 3.0 5.8 + 3.0 STRONG BOTTOM UP OPPORTUNITIES Saudi Arabia 0.0 9.0 + 9.0 9.0 + 9.0 STRONG BOTTOM UP OPPORTUNITIES, FAVORABLE MACRO OUTLOOK Qatar 15.9 19.0 + 3.5 19.2 + 3.3 STRONG GROWTH AND STRONG BOTTOM UP IDEAS United Arab Emirates 16.7 20.8 + 5.5 21.2 + 4.5 CHEAP VALUATIONS, FAVORABLE MACRO OUTLOOK Georgia 0.0 3.5 + 3.5 3.5 + 3.5 STRONG BUTTOM UP OPPORTUNITIES Pakistan 4.0 4.8 + 0.7 4.7 + 0.7 VERY CHEAP VALUATIONS, IMPROVING POLITICAL ENVIRONMENT Oman 3.0 3.0 0.0 3.0 0.0 FAVORABLE MACRO ECONOMIC BACKDROP, LIMITED BUTTOM UP OPPORTUNITIES Bangladesh 1.2 1.1 0.0 1.2 0.0 STRONG MACRO GROWTH, RICH VALUATIONS Sri Lanka 1.3 1.3 0.0 1.3 0.0 IMPROVING VALUATIONS, IMPROVING MACRO ENVIRONMENT Romania 1.3 1.4 0.0 1.3 0.0 IMPROVING MARKET CONDITIONS Ukraine 0.1 1.1 + 1.0 0.0 (0.1) DETERIORATING MACRO ENVIRONMENT Vietnam 2.6 2.8 + 0.5 2.1 (0.5) CHALLENGING MACRO ENVIRONMENT Mauritius 1.0 0.5 (0.5) 0.5 (0.5) REASONABLE VALUATIONS, LIMITED STOCK OPPORTUNITIES Morocco 4.5 0.0 (4.6) 0.0 (4.5) DETERIORATING MACRO ENVIRONMENT, RICH VALUATIONS Lebanon 1.8 0.0 (1.7) 0.0 (1.8) ATTRACTIVE VALUATIONS, POLITICAL UNCERTAINTY Kenya 3.4 1.6 (2.0) 1.4 (2.0) RICH VALUATIONS, IMPROVING POLITICAL BACKDROP Tunisia 0.5 0.0 (0.5) 0.0 (0.5) LIQUIDITY CONCERNS, POLITICAL INSTABILITY Kuwait 18.2 14.1 (4.0) 16.2 (2.0) LIMITED VALUE OPPORTUNITIES AND RELATIVELY EXPENSIVE VALUATIONS Nigeria 13.0 9.8 (4.0) 9.5 (3.5) IMPROVING VALUATIONS Croatia 1.3 0.0 (1.4) 0.0 (1.3) LIMITED STOCK OPPORTUNITIES, DETERIORATING MACRO ENVIRONMENT Jordan 0.6 0.0 (0.6) 0.0 (0.6) LIMITED VALUE OPPORTUNITIES AND WEAK MOMENTUM Bahrain 0.6 0.0 (0.6) 0.0 (0.6) ILLIQUID AND LIMITED OPPORTUNITIES Argentina 3.5 0.0 (4.5) 0.0 (3.5) ATTRACTIVE VALUATIONS, DETERIORATING MACRO ENVIRONMENT Slovenia 1.7 0.0 (1.7) 0.0 (1.7) LIMITED STOCK OPPORTUNITIES Estonia 0.4 0.0 (0.4) 0.0 (0.4) MAJOR LIQUIDITY CONCERNS Lithuania 0.1 0.0 (0.1) 0.0 (0.1) MAJOR LIQUIDITY CONCERNS Bulgaria 0.1 0.0 (0.1) 0.0 (0.1) MAJOR LIQUIDITY CONCERNS Serbia 0.2 0.0 (0.2) 0.0 (0.2) MAJOR LIQUIDITY CONCERNS Total: 100.0 99.8-0.2 99.8-0.2 Liquidity: 0.0 0.2 0.2 0.2 0.2 Grand Total: 100.0 100.0 0.0 100.0 0.0 Source: Schroders, February 2014. Countries are mentioned for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 29

Schroder Frontier Markets Composite Disclosures as of : December 31, 2012 Definition of the Firm The Firm is defined as all accounts managed by Schroder Investment Management in the UK and US, by wholly owned subsidiaries of Schroders PLC. Prior to January 1, 2007 SIM London & SIM North America existed as two separate Firms which were compliant & verified as separate entities until December 31, 2006. The consolidation of these two Firms was made as part of a move towards creating one global Firm. Composite and Firm assets reported prior to January 1, 2007 represent those of the legacy firm which managed the product. Prior to January 1, 2011 the SPrIM (Schroder Property Investment Management) Firm existed separate to the Schroder Investment Management UK and US Firm, from January 1, 2011 these Firms have been combined into a single firm. A complete list and description of the Firm's composites and performance results is available upon request. Composite Definition Accounts included in the Schroder Frontier Markets seek to achieve returns above the MSCI Frontier Markets (NDR) index (or a similar benchmark) by providing capital growth primarily through investment in equity and equity related securities of frontier markets companies. Frontier markets are countries included in the MSCI Frontier Markets Index or any other recognized Frontier Markets financial index. None of the accounts in the Composite use leverage. Composite Construction New accounts are included from the beginning of the first full month of management on a discretionary basis. Terminated accounts are excluded from the end of the last full month of discretionary management. This Composite has no minimum asset level for inclusion. The composite currency is US Dollar Composite Inception Date: 12-31-2010 Composite Creation Date: 01-07-2011 Performance Calculation The portfolio returns are time-weighted rates of return that are adjusted for cash flows. Portfolio returns are combined using beginning of period asset weights to produce the composite return. Periodic returns are geometrically linked to produce annual returns. Dividends on equities are recognized net of irrecoverable withholding tax. Since January 1999 dividends have been recognized as of the ex-dividend date having previously been recognized on a cash basis. Performance results are presented before the deduction of management fees and custodian fees but after trading expenses. Fee Schedule The fee scale applied to the composite is 1.5% p.a. Dispersion The dispersion of annual returns is measured by the asset weighted standard deviation of portfolio returns represented within the composite for the full year provided a minimum of 5 portfolios are available. GIPS Compliance and Verification Schroder Investment Management (UK & US) claims compliance with the Global Investment Performance Standards GIPS and has prepared and presented this report in compliance with the GIPS standards. Schroder Investment Management (UK & US) has been independently verified for the periods January 1, 1996 to December 31, 2012. The verification report(s) are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis, and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. Additional Information The exchange rates used are provided by WM. Each currency is valued at 4 pm on the last business day of the month. Additional information regarding policies for valuing portfolios, calculating and reporting returns and a description of all composites are available on request. 30

Contact More information? Schroder Investment Management (Luxembourg) S.A. Belgium branch Boulevard Saint-Michel, 47 1040 Brussels Belgium T: +32 2 400 00 07 info-be@schroders.com www.schroders.be Sandra Lequime Head of Sales Belgium & Luxembourg sandra.lequime@schroders.com Claudia Dawson Client Executive claudia.dawson@schroders.com Tânia Jerónimo Cabral Marketing Manager Benelux tania.jeronimo@schroders.com 31

Important information This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the Company ). Nothing in this document should be construed as advice and is therefore not a recommendation to buy or sell shares. Subscriptions for shares of the Company can only be made on the basis of its latest Key Investor Information Document and prospectus, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, from Schroder Investment Management (Luxembourg) S.A. An investment in the Company entails risks, which are fully described in the prospectus. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get the amount originally invested. Schroders has expressed its own views and opinions in this document and these may change. This document is issued by Schroder Investment Management Ltd., 31, Gresham Street, EC2V 7QA, who is authorised and regulated by the Financial Conduct Authority. For your security, all telephone calls are recorded. Risk Considerations The capital is not guaranteed. In order to access restricted markets, the fund may invest in structured products. Should the counterparty default, the value of these structured products may be nil. Investments denominated in a currency other than that of the share-class may not be hedged. The market movements between those currencies will impact the share-class. Where the fund (or the manager) holds a significant percentage of the shares of one or more companies, it may be difficult to sell those shares quickly. It may affect the value of the fund and, in extreme market conditions, its ability to meet redemption requests upon demand. Investments in small companies can be difficult to sell quickly which may affect the value of the fund and, in extreme market conditions, its ability to meet redemption requests upon demand. The Fund will not hedge its market risk in a down cycle. The value of the fund will move similarly to the markets. Emerging markets will generally be subject to greater political, legal, counterparty and operational risk. Third Party Data Disclaimer Third party data is owned or licensed by the data provider and may not be reproduced or extracted and used for any other purpose without the data provider's consent. Third party data is provided without any warranties of any kind. The data provider and issuer of the document shall have no liability in connection with the third party data. The Prospectus and/or www.schroders.com contains additional disclaimers which apply to the third party data. 32