Change of Name, Investment Objective and Policy - Schroder ISF Asian Bond Absolute Return Fund

Why are Schroders making the changes?

The Asian bond markets were historically relatively volatile versus bond markets in the US and Europe because of their historical low level of market development. However, over the past 10 years, Asian bond markets have grown in sophistication and depth and their relative volatility has dropped significantly. The manager believes that an absolute return strategy, which aims to preserve capital over a 12 month period, served well in the past when the relative volatility was higher. A total return strategy, which has a longer investment horizon, will be better able to provide for investors looking to capitalise on opportunities in Asian bond markets in the future. Therefore, the fund will change from an absolute return strategy to a total return strategy.

In addition, the fund will be able to invest in bonds from a wider range of Asian countries, as the definition of Asia will be expanded for this fund to include the west Asian countries listed in the new investment policy.

In line with the above, the fund will change name to "Schroder International Selection Fund - Asian Bond Total Return". These changes, along with a reduction in Annual Management Charge, will take effect from 1 March 2018.

A full summary of the changes can be found in the Schroders shareholder notification opposite.

Policyholder notification

If you currently invest in this fund through one of our guided-architecture products, you should have received a copy of our letter opposite. If you have appointed an investment adviser to make decisions on your behalf they will receive the letter instead of you. In all cases your current financial adviser will receive a sample letter for reference. If you are happy to remain invested in this fund you don’t need to do anything. If you want to change to another fund then you can switch free of charge.