Schroder Multi-Manager High Alpha Fund Final Short Report 16 March 2014 to 15 March 2015
Schroder Multi-Manager High Alpha Fund Review of Investment Activities From 14 March 2014 to 24 October 2014, the price of A Accumulation units on a dealing price to dealing price basis fell 2.13%. In comparison, The Investment Association Flexible Investment Sector Average generated a total return of 0.46% 1. 1 Source: Lipper Investment Management. Continued monetary accommodation, improving macroeconomic data and broad investor optimism has driven markets during the period under review, with equity markets hitting new highs and bond yields sinking to historic lows. For some time we have been of the view that valuations in both areas are reaching levels where future returns could be muted. Such market moves only strengthened that view. Relative performance over the period was held back by our negative stance on fixed income, where we have maintained very limited exposure. In the face of falling bond yields this detracted from our relative performance. Instead, we favoured a large cash position whilst we awaited a more opportune moment to invest in what looked to us like overvalued credit and government bond markets. In equities, certain early cycle areas of the market looked to us to have become more fully valued. A shift in the portfolio towards some of the more unloved, defensive areas of markets resulted in some more muted relative returns from our equity exposure. Following the fund closure on 24 October 2014 there has been no dealing activity in the period under review. Fund Manager: Marcus Brookes
Fund Information On 24 October 2014, the Schroder Multi-Manager High Alpha Fund was merged into Schroder Multi-Manager Diversity Tactical Fund and the fund was suspended. Interim Final Accounting dates 15 September 15 March Revenue allocation date 15 May In relation to the merger there was an additional Accounting date of 23 October 2014. For the period For the year Ongoing charges figure to 24.10.14 1 to 15.3.14 A Income units 1.77% 2.45% A Accumulation units 1.77% 2.45% S Accumulation units 0.64% 1.32% 1 Z Income units 1.02% 1.70% Z Accumualtion units 1.02% 1.70% 1 The Ongoing charges figures are annualised based on the fees incurred during the accounting period. Performance Record Net Asset Net Asset Value as at Value as at Net Asset 24.10.14 15.3.14 Value Fund performance pence per unit pence per unit % change A Income units Nil 84.18 A Accumulation units Nil 84.49 S Accumulation units Nil 50.37 Z Income units Nil 60.81 Z Accumualtion units Nil 61.46 Since 3 months 15.3.14 5 years Schroder Multi-Manager High Alpha Fund (0.87)% (2.13)% 22.17% Investment Association Flexible Investment Sector Average (1.48)% 0.46% 36.07% Fund Source: A Accumulation units on a dealing price to dealing price basis to 24.10.14. Index Source: Lipper Investment Management, total return to 24.10.14. 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.
Performance Record (continued) A Accumulation S Accumulation Unit price range A Income units units units Highest Lowest Highest Lowest Highest Lowest dealing dealing dealing dealing dealing dealing Year to 31 December p p p p p p 2009 68.51 44.79 68.68 44.86 2010 75.98 65.45 76.26 65.69 2011 78.13 65.47 78.42 65.72 2012 75.14 68.21 75.42 68.46 2013 85.95 74.90 86.27 75.18 2014 to 24 October 85.65 81.50 85.97 81.81 51.44 49.09 Z Income units Z Accumulation units Highest Lowest Highest Lowest dealing dealing dealing dealing Year to 31 December p p p p 2009 2010 2011 50.20 47.51 50.20 47.51 2012 54.09 49.17 54.09 49.17 2013 61.71 54.25 62.38 54.24 2014 to 24 October 61.99 59.14 62.65 59.77 Net revenue A Income units A Accumulation units S Accumulation units Year to 31 December pence per unit pence per unit pence per unit 2009 Nil Nil 2010 0.0711 0.0825 2011 Nil Nil 2012 Nil Nil 2013 Nil Nil 2014 to 24 October Nil Nil 0.0167 Z Income units Z Accumulation units Year to 31 December pence per unit pence per unit 2009 2010 2011 Nil Nil 2012 Nil 1 Nil 1 2013 0.6605 0.6605 2014 to 24 October Nil Nil 1 There was no distribution for Z Income units and Z Accumulation units as the total amount distributable was below the de minimis.
Portfolio Information % of net % of net assets assets as at as at Spread of investments 24.10.14 15.3.14 Absolute Return Funds 4.62 Asia Pacific ex-japan Equity Funds 5.28 Cash Funds 15.30 Commodities 1.24 European Equity Funds 9.22 Global Equity Funds 10.44 Japan Equity Funds 9.34 Life Settlement Funds 0.50 UK Equity Funds 22.53 UK Fixed Interest Funds 1.17 US Equity Funds 5.16 Net other assets 15.20 % of net assets as at Major holdings 24.10.14 % of net assets as at 15.3.14 Schroder Special Situations Sterling Liquidity Plus Fund I Accumulation 15.30 Majedie UK Focus Fund X Income 8.74 GLG Japan CoreAlpha Professional Fund D Income 7.46 Majedie Tortoise Fund G Accumulation 7.02 Invesco Perpetual European Equity Fund Z Accumulation 5.58 Blackrock Asian Dragon Fund A Distribution 5.28 Morgan Stanley Diversified Alpha Plus Fund ZH Accumulation USD 4.62 Artemis European Growth Fund R Accumulation 3.64 Legg Mason Capital Management Opportunity Fund Premier Accumulation 3.42 Odey OEI MAC Fund B Income 3.34
Investment Objective & Policy The fund s investment objective was to provide a capital growth through investment in collective investment schemes as well as directly held transferable securities, derivatives, cash, deposits, warrants and money market instruments. In order to achieve the objective the Manager invested in a focused portfolio of investments. The fund may also have gained exposure to alternatives including commodities, hedge funds, private equity and property through investment in collective investment schemes and transferable securities. Risk Profile Risk and reward indicator Lower risk Potentially lower reward Higher risk Potentially higher reward 1 2 3 4 5 6 7 The risk category was calculated using historical performance data. The fund was in this category because it could take higher risks in search of higher rewards and its price may have risen and fallen accordingly. The fund s risk category was not guaranteed to remain fixed and may have changed over time. A fund in the lowest category does not mean a risk free investment.
Risk Profile (continued) Specific risks The fund was 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 invested in assets which are exposed to currencies other than sterling. Exchange rates may have caused the value of overseas investments and the revenue from them to rise or fall. The fund was index unconstrained and had the potential for greater volatility. The fund invested in unregulated collective investment schemes, which involved ahigher degree of risk as they are not regulated by the Financial Conduct Authority. The funds may not have been readily realisable and priced less frequently than listed shares or authorised unit trusts, and therefore price swings may have been more volatile. The fund may have invested in derivatives and in alternative investments (including commodities, hedge funds, property funds and private equity) which involved a higher degree of risk and could be more volatile. They should only have been considered as a long term investment. Report & Accounts This document is a short report for the Schroder Multi-Manager High Alpha Fund for the year ended 15 March 2015. The long form Report & Accounts for the fund are available on our website www.schroders.co.uk or upon written request to Schroders, FREEPOST, RLTZ-CHSY-HBUT, PO Box 1102, Chelmsford, Essex CM99 2XX. Alternative Investment Fund Managers Directive (AIFMD) The AIFMD, as implemented in the UK by the Alternative Investment Fund Managers (AIFMs) Regulations 2013, establishes an EU wide harmonised framework for monitoring and supervising risks posed by AIFMs and the alternative investment funds (AIFs) they manage.
Alternative Investment Fund Managers Directive (AIFMD) (continued) The fund is an AIF and the Manager was authorised by the Financial Conduct Authority to act as an AIFM on 2 July 2014. The AIFMD requires certain information to be disclosed to unitholders. It is intended that any such information will in future be provided in the report and accounts, unless such information is required to be disclosed without delay, in which case it will be made via the Schroders website at: www.schroders.com/en/uk/private-investor/fund-centre/changes-to-funds/ Other information The information contained in this report is designed to enable unitholders to make an informed judgement on the activities of the fund during the period it covers and the results of those activities at the end of the period. For more information about the activities and performance of the fund during this and previous periods, please contact the Manager. 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 www.schroders.co.uk. Schroders is required by the European Union Savings Directive to report payments to HM Revenue and Customs that are made by the fund to investors living in other European Union member states. 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. For investors security, calls to Schroder Investor Services may be recorded. Manager: Schroder Unit Trusts 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 and regulated by the Financial Conduct Authority. Independent Auditors: PricewaterhouseCoopers LLP, Atria One, 144 Morrison Street, Edinburgh EH3 8EX. For further literature please contact Schroder Investor Services on 0800 718 777 or at investorservices@schroders.com, or visit our website at www.schroders.co.uk. Issued in May 2015 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: 04191730 England. Authorised and regulated by the Financial Conduct Authority. w35659 MR080BF15