RL360 - Various changes - Schroder ISF Funds

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Various changes - Schroder ISF Funds

Schroder ISF (“Schroder”) has announced various changes to its fund range which will take effect between 29 October and 2 November 2021.

Available in our open-architecture products

Various funds affected by this notification feature in our open-architecture products and will be subject to changes detailed in the Schroder ISF notification documents opposite.


Available in our defined fund range products


Use of derivatives on China A shares for efficient portfolio management


The investment policy of the following funds have been updated to clarify that indirect exposure to China A-shares may be via instruments such as participatory notes, rather then by the use of derivatives.


The investment policy of each fund provides that derivatives may only be used with the aim of reducing risk or managing the fund more efficiently. To ensure consistency with the policy, the reference to China A exposure being available indirectly via derivatives has been removed.


All other key features of the funds will remain the same.


Affected Funds

Schroder ISF China Opportunities A Acc USD

Schroder ISF Global Smaller Companies A Acc EUR

Schroder ISF Asian Opportunities A Inc USD AV

Schroder ISF Greater China A Acc USD

Schroder ISF Hong Kong Equity A Acc HKD


You can view a copy of the Schroder notification document opposite (China A Derivatives efficient portfolio management) for a detailed breakdown of all the changes.


Use of derivatives on China A shares for investment purposes


The investment policy of the following funds have been updated to clarify that indirect exposure to China A-shares may be via instruments such as participatory notes, rather then only by the use of derivatives.


Each of the funds can invest a certain portion of its assets (on a net basis) in China A-Shares via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect as stated in the Hong Kong offering documents of Schroder ISF. This is measured on a net basis as exposure may be gained both directly and indirectly. While each of the funds can use derivatives with the aim of achieving investment gains and so may gain indirect exposure to China A-Shares this way, other methods may also be used, such as by the use of participatory notes.


To reflect this, Schroder have removed a reference from each of the funds’ investment policies that indirect exposure will be “through derivatives” and replaced it with a reference that exposure may be via instruments such as participatory notes.


All other key features of the funds will remain the same.


Affected Funds

Schroder ISF BRIC A Acc EUR

Schroder ISF BRIC A Acc USD

Schroder ISF Emerging Markets A Acc EUR

Schroder ISF Emerging Markets A Acc USD

Schroder ISF Emerging Markets A Acc AUD Hdg

Schroder ISF Global Emerging Market Opportunities A Acc EUR

Schroder ISF Global Emerging Market Opportunities A Acc USD


You can view a copy of the Schroder notification document opposite (China A Derivatives investment purposes) for a detailed breakdown of all the changes.


SFDR (Sustainable Financial Disclosure Regulation) wave 3


The Schroder below funds will incorporate binding environmental and/or social characteristic(s), within the meaning of Article 8 of the Sustainable Finance Disclosure Regulation (SFDR) with effect from 29 October 2021. These changes will be reflected in the funds investment policy.


Affected Funds

Schroder ISF Emerging Markets Debt Absolute Return A Acc USD

Schroder ISF Emerging Markets Debt Absolute Return A Acc EUR Hdg

Schroder ISF Global Equity A Acc USD

Schroder ISF Global Equity A Acc AUD Hdg

Schroder ISF Global Smaller Companies A Acc USD

Schroder ISF Asian Opportunities A Inc USD AV

Schroder ISF BRIC A Acc EUR

Schroder ISF BRIC A Acc USD

Schroder ISF Emerging Markets A Acc EUR

Schroder ISF Emerging Markets A Acc USD

Schroder ISF Emerging Markets A Acc AUD Hdg

Schroder ISF UK Equity A Acc GBP

Schroder ISF European Smaller Companies A Acc EUR


In addition, a new comparator benchmark has been added for the Schroder ISF US Small & Mid-Cap Equity fund, please see the table below for details.


New comparator benchmark

S&P Mid Cap 400 Lagged (Net TR) Index


You can view a copy of the Schroder notification document opposite (SFDR wave 3, SFDR wave 3 appendix & US Small & Mid-Cap Equity) for a detailed breakdown of all the changes.


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For more information about Schroder International Selection Fund visit www.schroders.com