An Introduction to Schroder ISF* US Small & Mid Cap Equity 5 November 2009 *Schroder International Selection Fund is referred to as Schroder ISF throughout this presentation. For Professional Investors or Advisors Only
Philosophy Philosophically, we believe in: Bottom-up, fundamental research Flexibility across sources of alpha Entry price/valuation matters Understanding your risks 1
Style and objectives Style: Core with a growth bias Return Objective: Outperform Russell 2500 by 300-400 bps p.a., gross of fees over a full market cycle Generate above-median performance versus peers Risk Objective: Achieve the objective at lower levels of risk compared with benchmark and peers 2
Style map 1 January 2005 30 September 2009 Single computation Large Large Rolling 36 month periods 1 Russell 1000 Value Russell 1000 Growth 1 Russell 1000 Value Russell 1000 Growth 0 Russell 2500 Value Russell 2500 Growth 0 Russell 2500 Value Russell 2500 Growth Schroders: US SMID Cap Russell 2500 Russell Style (6) -1 Russell 2000 Value Russell 2000 Growth -1 Russell 2000 Value Russell 2000 Growth Small Value -1 0 1 Growth Small Value -1 0 1 Growth Source: Zephyr. Slide based on a segregated account as a representation of the product: Schroders US SMID Cap 3
Schroder US SMID cap equity Performance Since inception to 30 September 2009 Returns (%) 6.0 3.0 0.0 Schroders US SMID Cap (Gross of fees) Benchmark: Russell 2500 Universe Median* -3.0-6.0 16.0 17.0 18.0 19.0 20.0 21.0 Standard Deviation (%) Returns (%) Standard Deviation (%) Schroders US SMID Cap Composite (Gross of fees) 6.55 16.90 Russell 2500 0.61 20.48 ea Small-Mid Cap Core Equity (Universe median of 64 managers)* 0.86 20.32 4 Source: evestment. *Universe ea Small-Mid Cap Core Equity. Data to 30 September 2009. Inception on 31 December 2004. Performance shown is past performance. Past performance is not necessarily a guide to future performance. The value of investments can go down as well as up and is not guaranteed. Please see the composite disclosures on slide 34. * Performance of the Universe Median is presented gross of management fees. Slide based on composite as a representation of the product.
People portfolio manager supported by an experienced team Average analyst experience: 19 years Jenny Jones Portfolio Manager 29 Years Experience Insurance, Capital Goods Robert Starbuck Research Director 32 Years Experience Energy, Materials Andrea Bici 20 yrs experience Health Care Cezary Nadecki, CFA 11 yrs experience Utilities, Telecom John Helfst 15 yrs experience Banks, Brokers, Specialty Finance Steve Kirson, CFA 25 yrs experience Technology Alex McCormick, CFA 11 yrs experience Consumer Sectors Fred Schaefer 22 yrs experience Client Portfolio Mgr. Supported by: 3 Traders; 1 Client Portfolio Manager; 1 Portfolio Management Assistant, and 3 additional Support Staff 5 Source: Schroders, as at 30 September 2009
Approach Understand the business model Is it sustainable? What is the size of the addressable market? Barriers to entry? Competitive advantages? Business model Ideas Scrutinize the financials Financials Valuations Special attention paid to cash flows and balance sheets Analyze valuations; calculate target price Must use two separate methodologies to derive target price 6
Research-driven process In-depth Research Initial Research Ongoing Inquiry Portfolio Candidate Idea Generation Deep fundamental research Final stock selection Sources of new ideas: Management meetings Industry conferences/contacts Sell side analysts Publications Database screens Note: new ideas must be between $750 million and $7 billion at time of purchase 1. Initial idea qualification by PM or Research Director 2. Thorough analysis of: Business model Cash flows and financials Management track record Competitors Other relevant factors Valuation and Target price Portfolio manager must have: High conviction Understanding of risks and opportunity And: Does it fit within current portfolio? 7
Process diversified sources of alpha Mispriced Growth (50-60% of portfolio) Companies experiencing a period of growth due to industry or company factors This results in solid growth in top and bottom lines Price understates sales growth OR incremental margin growth OR rising CFROI Steady Eddies (20-50% of portfolio) Companies with stable growth characteristics Low variability in revenue/earnings; consistency in meeting earnings expectations Strong free cash flow, good balance sheet Turnarounds (0-20% of portfolio) Companies whose growth engine has broken. This can be due to an accounting, management or product issue Catalysts in place with evidence that growth is returning 8
Diversified alpha sources Historical allocations 70 60 50 40 30 Mispriced Growth Steady Eddie Turnaround 20 10 0 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Source: Schroders, FactSet to 30 September 2009 9
Schroder US SMID cap equity* Lower correlations of excess returns amongst multiple alpha sources Single period correlations: January 2006 September 2009 Mispriced growth 1.00 Mispriced growth Steady eddie Turnaround Steady eddie -0.24 1.00 Turnaround 0.11-0.37 1.00 10 Source: FactSet, Schroders *Slide based on composite as a representation of the product.
Portfolio management process Monitoring after purchase Analysts and PM monitor fundamentals and price PM will trim/add opportunistically in response to price moves Sell discipline Stock reaches price target (the investment thesis worked) Negative fundamental changes (the thesis is no longer valid) Mistake (the thesis was wrong) Better idea 11
Risk management guidelines 1. 70-90 stocks (generally $750 million to 7 billion at purchase) Maximum position size: 5% Minimum initial position size: 0.5% 2. Sectors weights ±10% of benchmark weight (absolute) 3. Cash typically 5-10% 4. Alpha Source diversification: Mispriced Growth stocks 50-60% Steady Eddy stocks 20-50% Turnaround stocks 0-20% 12
Top ten holdings 30 September 2009 Company Description % of Fund Republic Services Provides waste collection and disposal services 3.8 Amdocs A customer management software and services company 3.6 DaVita Provider of dialysis services 3.4 DeVry Owns and operates DeVry University which offers advanced educational degrees 2.6 Burger King Fast food retailer 2.0 NBTY Manufactures, sells and distributes vitamins and food supplements 1.9 Rovi Digital goods company 1.8 W.R. Berkley Property/casualty insurance 1.8 SAIC Provides scientific, engineering, systems integration and technical services and solutions 1.7 Reinsurance Group of America Life reinsurance products 1.7 Total 24.3 13 Source: FactSet. Securities mentioned are for illustrative purposes only and should not be viewed as a recommendation to buy/sell. Please note that portfolio holdings can change at any time.
Sector weights 30 September 2009 Portfolio vs. index % 30 25 21.6 20 15 17.8 14.1 13.5 11.9 12.1 13.2 11.3 15.5 13.8 10 5 2.7 3.4 6.3 7.3 3.6 5.3 5.6 7.7 0 Technology Health Care Consumer Staples Producer Durables Utilities Energy Materials & Processing Consumer Discretionary Financial Services Schroder ISF US Small & Mid Cap Equity Russell 2500 Source: FactSet. Sectors mentioned are for illustrative purposes only and should not be viewed as a recommendation to buy/sell. 14
Performance Periods ending 30 September 2009 (%) Q3 2009 YTD 1 yr 2 yrs 3 yrs Since inception* Schroder ISF US Small & Mid Cap Equity 13.7 28.1 1.6-9.4-0.6 4.4 Russell 2500 20.4 32.7-1.4-11.9-3.8 1.6 Outperformance -6.7-4.6 +3.0 +2.5 +3.2 +2.8 Source: Schroders. A1 Class shares, net of fees in USD. 2 years, 3 years and since inception data are annualised *Inception on 10 December 2004 Calendar year performance (%) 2008 2007 2006 2005 Schroder ISF US Small & Mid Cap Equity -35.1 10.9 15.2 12.5 Russell 2500-38.9 1.2 16.3 8.6 Outperformance +3.8 +9.7-1.1 +3.9 Source: Schroders. A1 Class shares, net of fees in USD. 15
Performance in Varying Market Conditions Good up market participation, strong down market protection Performance Pattern We tend to outperform in flat to modestly rising markets and negative markets We are less likely to outperform in strongly rising markets, given our emphasis on quality and our tendency to avoid momentum oriented stocks. Months in which the index returned: Number of months Number of months Schroders outperformed Percentage of months outperforming more than 3% 18 4 22% Between 0 and 3% 17 12 71% Less than 0% 22 19 86% Source: Schroders; Monthly observations between 31 December 2004 and 30 September 2009. 16
Stock example NBTY Inc. (mispriced growth) A marketer and retailer of multiple lines of nutritional supplements and health food supplements. The stock sold off in late 2008 due to concerns regarding the acquisition of Leiner, and weakening British Pound impacting a large retail segment in the UK. We purchased the stock as we believe the acquisition has enhanced NBTY s competitive positioning in both the branded and private label vitamin industry. More stringent manufacturing regulations (recertification by FDA, Good Manufacturing Practice standards) should also benefit the larger manufacturers such as NBTY and drive smaller competitors out of business who may not meet the new, higher product standards. Market Cap: $2,293 million NBTY Inc. (NTY) 30-Sep-2008 to 30-Sep-2009 (Daily) High: 40.460 U.S. Dollar Low: 12.220 Last: 39.580 Volume in Thousands (max/avg) Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Data Source: Prices / Exshare FactSet Research Systems 2009 Source: Schroders, Factset. Price chart to 30 September 2009. 40 35 30 25 20 15 3909 708 17 Market Cap information as of 30 September 2009. Securities mentioned are for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The security/issuer mentioned does not necessarily constitute any current holding in the portfolio. Please note that portfolio holdings can change at any time. Past performance is no guarantee of future results. The value of an investment can go down as well as up and is not guaranteed. Stock performance is being compared to the performance of the Russell 2500 index's containers & packaging industry sector.
Stock example Republic Services Inc. (steady eddie) A provider of services in the domestic nonhazardous solid waste industry. Republic Services acquired Allied Waste Industries, a former competitor in the market in December 2008. This acquisition will provide a strong market position for Republic Services and help stabilise pricing. We also bought this company as they have historically run with lower leverage than the industry and have focused on ROIC more than top line growth (which industry competitors have typically emphasized). Thus the management has emphasized profitability over market share gain, which is typical of this industry. Market Cap: $2,501 million Republic Services Inc. (RSG) 30-Sep-2008 to 30-Sep-2009 (Daily) High: 30.430 U.S. Dollar Low: 15.050 Last: 26.570 Volume in Millions (max/avg) 3 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Data Source: Prices / Exshare FactSet Research Systems 2009 Source: Schroders, FactSet. Price chart to 30 September 2009. 30 28 26 24 22 20 18 16 31 18 Market Cap information as of 30 September 2009. Securities mentioned are for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The security/issuer mentioned does not necessarily constitute any current holding in the portfolio. Please note that portfolio holdings can change at any time. Past performance is no guarantee of future results. The value of an investment can go down as well as up and is not guaranteed.
Stock example M&T Bank (turnaround) A bank holding company which offers a range of commercial banking, trust and investment services to its customers. Acquired Provident Bancshares in May 2009. Regional focus in the Northeast and Mid-Atlantic states. The management extended their conservative loan book into Alt-A loans and some commercial real estate projects as the company looked for loan growth outside its core lending profile in 2007. These loans ended up negatively impacting the company (although lower than the industry average losses). Republic Services Inc. (RSG) 30-Sep-2008 to 30-Sep-2009 (Daily) High: 30.430 U.S. Dollar Low: 15.050 Last: 26.570 30 28 26 24 22 20 18 16 Management has returned to its conservative roots by pulling out of the aggressive loans and we opportunistically purchased it. Volume in Millions (max/avg) 31 3 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Data Source: Prices / Exshare FactSet Research Systems 2009 Source: Schroders, FactSet. Price chart to 30 September 2009. Market Cap: $7,352 million 19 Market Cap information as of 30 September 2009. Securities mentioned are for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The security/issuer mentioned does not necessarily constitute any current holding in the portfolio. Please note that portfolio holdings can change at any time. Past performance is no guarantee of future results. The value of an investment can go down as well as up and is not guaranteed.
Appendix
Schroder US SMID cap equity Observed risk/return data Since inception to 30 September 2009 Schroders US SMID 1 Median manager 2 Russell 2500 Standard deviation % 18.35 21.78 22.17 Tracking error % 5.80 5.87 -- Information ratio 1.01-0.01 -- Sharpe ratio 0.08-0.21-0.20 Up market capture % 88.53 92.86 100.00 Down market capture % 78.45 98.02 100.00 Excellent risk-adjusted measures Strong upside/downside ratios Source: Schroders, evestment. 1 Composite fund 2 Median taken from evestment. Universe = ea Small-Mid Cap Core Equity. Since inception to 30 September 2009. (64 observations). Performance shown is past performance. Past performance is not necessarily a guide to future performance. The value of investments can go down as well as up and is not guaranteed. Performance is presented gross of management fees. Please see the important composite disclosures on slide 34. Consult Part II of Form ADV for detailed fee disclosure. 21
Schroder US SMID cap equity Competitive position in peer group 50.0 40.0 Returns (%) 30.0 20.0 10.0 0.0-10.0 Schroders US SMID Cap (Gross of fees) Schroders US SMID Cap (Net of fees) Russell 2500-20.0-30.0-40.0-50.0 Q3 2009 YTD 2008 2007 2006 2005 25th Percentile 20.04 33.32-34.50 10.93 16.22 12.70 Median 18.60 26.35-37.26 3.58 13.76 10.54 75th Percentile 15.68 21.38-40.12-1.86 11.79 7.82 Schroders US SMID Cap (Gross of fees) 14.90 28.56-31.76 13.85 18.25 14.43 Schroders US SMID Cap (Net of fees) 14.47 27.13-32.77 12.18 16.51 12.74 Russell 2500 20.06 27.89-36.79 1.38 16.16 8.11 # of Observations 64 64 76 74 75 71 22 Source: evestment. Universe ea Small-Mid Cap Core Equity. Data to 30 September 2009. Performance shown is past performance. Past performance is not necessarily a guide to future performance. The value of investments can go down as well as up and is not guaranteed. Please see the important composite disclosures on slide 34. Performance of the Universe ea Small-Mid Cap Core Equity is presented gross of management fees.
Product overview Team: portfolio manager Jenny Jones, with six analysts Universe: at purchase stocks generally between $750 million and $7 billion in market capitalisation Benchmark: Russell 2500 Assets under management: $2.2 billion (capacity $4.0 billion) Team also manages $2.5 billion in small cap assets (closed) Source: Schroders. Assets as at 30 September 2009. 23
Preferred business characteristics of stocks High Barriers to Entry Leveragability of Business Model Competitive Advantage Strong Management Sustainable Cash Flows Good Sales/Earnings Growth 24
Research and information sources Primary Sources: Management meetings Conferences/Industry meetings Sell side research Industry contacts Trade and business publications Secondary sources: Insider buying Screens 25
Research process (cont d) Analytical Task Focus Assess the Opportunity and Business Model Bull case on the company (Street) Bear case on the company (Street) Soundness of the business model Leveragability Underlying industry trends Management and Resource Evaluation Previous experience with management team Track record, especially in difficult periods Available resources Analysis of Financials Earnings and Revenue Trends Margins Assets and Sales Debt Levels Cash Flow Liquidity Assess Valuation Metrics vary by sector Compared with own history Compared with industry peers P/E, P/B, P/CF and others 26
Resources Global Resources Technology Investment Function Schroders US Large Cap analysts Schroders Global Sector specialists Sell Side analysts Personal contacts Weekly team meeting Regular meetings between PM and analyst 3 person Trading Desk FactSet Bloomberg First Call Charles River Trading System Business Function Trading assistant Product Management Team (3 people) Mellon Analytical Services evestment Alliance 27
Characteristics Schroder ISF US Small & Mid Cap Equity Russell 2500 Market cap Weighted median $3.13 billion $1.97 billion Market cap range $484 million 10.07 billion $14 million 9.97 billion P/E 28.9x 152.0x P/B 1.92x 1.75x 1 Year Forecast Growth (I/B/E/S Medians) -0.2% -0.8% Dividend Yield 0.98% 1.38% 28 Source: Schroders, Bank of New York Mellon as at 30 September 2009. Fund inception was on 10 December 2004.
Team biographies Jenny B. Jones Portfolio Manager 2002 Schroders, Head of US Small & SMID Cap Equity 1996 Morgan Stanley Investment Management, Portfolio Manager 1990 Oppenheimer Capital LP, Head of Small Cap Value Department 1983 Mutual of America Life Insurance Co., Portfolio Manager, Investment Department 1982 Shearson/American Express, Institutional Options Sales, Financial Consultant 1980 Drexel Burnham, Sales Liaison/Assistant Options Strategist New York University, MBA Yale University, BA (honors) 29 years of investment experience 6 years with Schroders Robert F. Starbuck Head of US Small and SMID Cap Research 2003 Schroders, Director of US Small & SMID Cap Research 2000 Bramwell Capital Management, Senior Vice President, Investment Research 1997 Equinox Capital Management, Senior Vice President, Investment Research 1992 The Bank of New York, Vice President, Investment Research 1984 Axe Houghton Management, Research Analyst and Portfolio Manager 1978 General American Investors, Research Analyst 1977 The Bank of New York, Assistant Vice President, Investment Research 1974 General Foods Corporation, Senior Financial Analyst and Accounting Supervisor Columbia University, MBA Columbia University, BA 32 years of investment experience 6 years with Schroders 29
Team biographies Andrea M. Bici, CPA Analyst 2003 Schroders, Equity Analyst 2002 Salomon Smith Barney, Research Analyst, Healthcare, Equity Research 1999 Credit Suisse First Boston, Vice President, Healthcare, Equity Research 1996 Alex. Brown & Sons/BT Alex Brown. Incorporated, Associate Analyst, Equity Research 1993 Cooper & Lybrand, LLP, Senior Accountant and Senior Associate 1989 Salomon Brothers Inc., Financial Analyst, Financial Institutions Group, Investment Banking University of Virginia, MBA Trinity College, BA (honors) 20 years of investment experience 6 years with Schroders Steven Kirson, CFA Analyst 2005 Schroders, Equity Analyst 2002 Astral Securities Research, LLC, Founder/ Research Analyst 1989 Putnam Investments, Analyst/Portfolio Manager 1984 Equitable Bank, N.A., Credit Analyst University of Pennsylvania, MBA University of Miami, FL, BA 25 years of investment experience 4 years with Schroders 30
Team biographies John Helfst Analyst 2005 Schroders, Equity Analyst 2003 Endeavour Capital Advisers, Hedge Fund, Equity Analyst 1999 SalomonSmithBarney, Equity Research Associate 1998 PaineWebber & Co., CMBS Underwriter 1994 PNC Bank, Credit Analyst and Real Estate Lender New York University, MBA Colgate University, BA 15 years of fundamental equity research and credit analysis experience 4 years with Schroders Alexander McCormick, CFA Analyst 2006 Schroders, Equity Analyst 2000 Managed own business conducting research and managing proprietary All Cap portfolios 1998 Deutsche Bank Alex Brown, Equity Research Analyst 1995 Deloitte and Touche, Senior Strategy and Corporate Finance Consultant University of Virginia, MBA Harvard University, MA 11 years of investment experience 3 years with Schroders 31
Team biographies Cezary Nadecki, CFA Analyst 2004 Schroders, Equity Analyst 2002 FactSet Research Inc, Senior Consultant 2001 General Re, Statutory Filing Coordinator 1999 Eli Lilly, Financial Business Manager, Warsaw, Poland 1997 Charles Schwab, Registered Trading Representative Thunderbird, American Graduate School of International Management, MIM Arizona State University, MBA University of Arizona, BS 11 years of investment experience 5 years with Schroders 32
Team biographies Frederick Schaefer Client Portfolio Manager 2007 Schroders, Client Portfolio Manager 1987 Evaluation Associates, Senior Consultant and Principal 1979 Greenwich Associates, Research Manager BA, University of Notre Dame 22 years of investment experience 2 year with Schroders 33
Schroder US SMID Cap Equity Composite Composite Disclosures as of: December 31, 2008 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 and SIM North America existed as two separate Firms which were compliant and 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. Composite Definition Accounts included in the Schroder US SMID Cap Equity Composite seek to achieve returns above the Russell 2500 Total Return index or an equivalent benchmark by providing capital growth primarily through investment in equity securities of smaller and medium sized US companies. Smaller and medium sized US companies are considered companies, which at the time of purchase, form the bottom 40% by market capitalization of the US market. The composite returns include all of the Firm s separate accounts and commingled funds which are discretionary, fee paying, tax exempt, above $2 million in size and managed as described above. New accounts are included in the composite one full month after inception date to ensure the account has been fully invested. Terminated accounts are excluded from the composite at the end of the previous month. The composite's creation date is December 31, 2004. Performance Calculation Composite returns are presented as gross returns, including cash, reinvestment of dividends, interest and other income earned in the period and are calculated on a trade date basis after transaction charges (brokerage commissions). Each account's investment performance rate of return is calculated monthly in accordance with the 'timeweighted' rate of return method (Modified Dietz). Additional information regarding policies for calculating and reporting returns is available upon request. The Currency of the Composite is USD. Withholding Tax treatment may vary from portfolio to portfolio within this composite. Dispersion Internal dispersion is calculated using asset weighted standard deviation of all portfolios where there are at least 5 portfolios that are included in the composite for the entire year. Leverage None of the accounts in the Composite use leverage. Verification Schroder Investment Management (UK and US) and its legacy firms have been verified for periods January 1, 1988 to December 31, 2008 by an independent verifier. A copy of the latest verification report is available upon request. Compliance Statement Schroder Investment Management (UK and US) has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS ). A complete list and description of the Firm's composites and performance results is available upon request. Notes The Composite returns presented represent past performance and are not necessarily representative of future returns which may vary. Details of the Firm's fees are included in Part II of Form ADV, copies of which are available upon request. Net returns have been calculated based upon the highest fee rate charged to each account in the composite. The highest fee applied to the composite is 1.50% per annum. 34
Schroder US SMID Cap Equity Composite Composite Performance Results as of: December 31, 2008 Composite: Schroder US SMID Cap Equity Composite Benchmark: Russell 2500 Currency: US Dollar Gross Returns as of: Dec-31-2008 Firm: Schroders Investment UK Management North America Year Gross Composite Return Net Composite Return Benchmark Return Composite Risk 1 Benchmark Risk 1 Number of Portfolios (throughout period) Account Dispersion 2 Market Value at end of Period ($) Average Account Value at end of Period ($) Percentage of Firm Assets Total Firm Assets ($) 4 2008-31.76% -32.77% -36.79% 24.50% 28.45% 4 (4) N/A 856,867,698 214,216,924 0.96% 89,646,473,692 2007 13.86% 12.18% 1.38% 9.22% 11.42% 4 (3) N/A 890,183,626 222,545,907 0.55% 161,124,537,715 2006 18.25% 16.51% 16.16% 9.17% 11.38% 3 (2) N/A 274,758,792 91,586,264 0.77% 35,533,229,886 2005 14.43% 12.74% 8.11% 10.12% 12.87% 3 (2) N/A 73,168,008 24,389,336 0.25% 29,123,758,149 Annualized 3 Year -2.78% -4.22% -9.37% 17.02% 19.65% Annualized S.I. 3 1.26% -0.24% -5.29% 15.60 % 18.18% 35 1 Annualized standard deviation of monthly returns 2 Asset weighted standard deviation of annual returns of accounts that have been in the composite for the entire year 3 Since Inception 4 Since December 31, 2003 Total Firm Assets include non-fee paying accounts. 2003 Total Firm Assets value has been restated due to the inclusion of those non-fee paying accounts Total Firm Assets from 2007 incorporate the UK and US firm merger as detailed in the Definition of the Firm N/A Information is not statistically meaningful due to an insufficient number of portfolios for the entire year
Important information This presentation 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 presentation 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 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. In accordance with the current prospectus, other than for Schroder ISF Global Property Securities, Schroder ISF Asia Pacific Property Securities, Schroder ISF European Defensive and Schroder ISF Middle East, the Company will seek UK distributor status for all distribution A and C shares. An investment in the Company entails risks, which are fully described in the prospectus. Past performance is not a guide to future performance and may not be repeated. Investors may not get back the full amount invested, as prices of shares and the income from them may fall as well as rise. Third party data is owned by the applicable third party identified above and is provided for your internal use only. Such data may not be reproduced or re-disseminated and may not be used to create any financial instruments or products or any indices. Such data is provided without any warranties of any kind. Neither the third party data owner nor any other party involved in the publication of this presentation can be held liable for any error. The terms of the third party's specific disclaimers are set forth in the Important Information section at www.schroders.lu Exchange rate changes may cause the value of any foreign investments to rise or fall. Schroders has expressed its own views and opinions in this presentation and these may change. Schroder ISF US Small & Mid Cap Equity is not within the scope of the European Union Directive 2003/48/EC (Taxation of Savings Income in the Form of Interest Payments), as implemented in Luxembourg Law. This presentation is issued by Schroder Investment Management North America Inc., 875 Third Avenue, 22nd Floor, New York, NY 10022-6225. For your security, all telephone calls are recorded. 36