Schroder ISF* Global Multi-Asset Income Schroders Investment Conference

19–23 October Remi Olu-Pitan

Marketing material for professional Head of Multi-Asset Growth and Income investors or advisers only.

*Schroder International Selection Fund is referred to as Schroder ISF Income investors have specific needs

Security, liquidity and yield

Short-term needs Long-term needs

Income to cover immediate outgoings Time horizon of 3 years or more

Capital security

Overall return

Schools Social services Maintaining roads Yield

Source: Schroders. For illustrative purposes only.

2 Yield is proving harder to come by Investors were being forced into higher risk assets even before Covid-19

Like all investors looking for yield over a time horizon of 3 or more years, higher risk assets have to be considered due to the extremely low yield from safer developed market bonds

Yield (%) 10

-2

S&P 500

FTSE100

EUR cash

GBP cash

USDcash

Eurostoxx

yielddebt

US 10yUS

UK10y

gradedebt

US investmentUS

Eurozonehigh

UKinvestment

German 10y

gradedebt

government bond government bond government bond

US highUS yielddebt

UKhigh yield debt Eurzone investment Current (%) 20yr average (%)

Past performance is not a guide to future performance and may not be repeated. Source: Schroders. Datastream, as of 31 August 2020.

3 Covid-19 has made the hunt for income even more difficult The virus has caused a dividend crisis

Dividend cuts typically follow a fall in earnings Dividend futures¹ have fallen sharply during a recession

Fall in earnings/ dividends Index 1970s 1980s 1990s Dotcom bubble 2009 0% 400

-5% -3% 350 -5% -6% -10% 300 -15% -12% 250 -20% -19% -20% -20% -25% -22% 200

-30% 150 -31% -35% 100 -40% 50 -45% -46% -50% 0 2008 2010 2012 2014 2016 2018 2020

Fall in earnings Dividend cuts Eurostoxx FTSE 100

Source: Schroders. Datastream, UBS 31 August 2020. ¹A dividend future is an exchange-traded derivative contract that allows investors to take positions on future dividend payments.

4 Schroder ISF Global Multi-Asset Income Delivering a stable and attractive income stream

Growth and income equities Opportunistic Bottom up approach to selecting high Dynamic asset allocation to best yielding equities across regions, capitalise on income opportunities Key features sectors and styles and manage downside risks

– A stable natural base level of income of 4–5%¹

– Diversification across a broad range of income generating assets

– Direct investment in underlying securities and active management

– Dynamic asset allocation across economic regimes and High yielding corporates Hybrids market cycles Tailored portfolio of attractively yielding Blend of convertibles and preferreds, sovereign and corporate bonds carefully providing income, downside protection selected across regions and sectors and quality exposure

Source: Schroders. ¹Based A Acc USD share class and historic yields over 12 months, fixed distribution pay-out is 5%, as at 31 August 2020.

5 Diversification and dynamic asset allocation Adaptable to different market environments

Diversified across income streams Dynamic asset allocation ranges

4.5% 60%

4.0% 50% 3.5%

3.0% 40%

2.5% 30% 4.3% 2.0%

1.5% 20%

1.0% 10% 0.5%

0.0% 0% Equity High yield EMD Investment Hybrids Alternatives Total Equities High Yield Investment Government EM Hard EM Local Hybrids Alternatives Cash grade Grade Bonds Currency Currency Sovereign Sovereign Potential range Current weight Actual range since inception

Source: Schroders, data as at 30 September 2020. For illustrative purposes only and not to be viewed as a recommendation to buy/sell securities. Yield is forward 12 month dividend yield for equities and the current yield for fixed income is gross of withholding tax. The ranges shown are for net exposures. EM hard currency includes EM corporate bonds. Alternatives exposure consists of catastrophe bonds, securitised debt and the alternative income portfolio. Investment grade potential range is shown excluding municipal bonds.

6 Direct investments in bespoke solutions Growth, quality and income are not mutually exclusive

Cash

Growth Growth and income Traditional income universe

Early Proven Dominant Steady Late Matured stage growers compounders state stage

Dividend pay-out Low Rising Rising High High High

Profitability Low Rising High High Declining Declining

Investment High High Moderate Moderate Low Low

Source: Schroders.

7 Multi-Asset Income The full income suite

Low High Medium

Low High

Source: Schroders. For illustrative purposes only.

8 Appendix Schroder ISF Global Multi-Asset Income Current asset allocation

Equities 28.5% Hybrids 10.3%

Global equities growth and income 15.4% Preferred securities 8.3%

Global enhanced equity income 9.6% Convertible bonds 2.1%

Asian equities 6.6%

REITs 3.5% Alternatives 3.1%

Equity futures -6.6% Securitised debt 3.1%

Fixed income 57.0% Cash 1.1%

High yield bonds 24.0%

Investment grade bonds 15.7%

Government bonds 7.1%

EM hard currency bonds 5.5%

EM local currency bonds 4.8%

Source: Schroders, as at 30 September 2020, Schroder ISF Global Multi-Asset Income. Please note that this is indicative exposure only and may change, subject to market conditions and outlook. Total may not sum to 100 due to rounding. For illustrative purposes only and not to be viewed as a recommendation to buy/sell securities.

10 Schroder ISF Global Multi-Asset Income Total return since inception

140 135 Annualised volatility¹ Global Multi-Asset Income 7.4% 130 125 120 115 110 105 100 95 Apr 2012 Feb 2013 Dec 2013 Oct 2014 Aug 2015 Jun 2016 Apr 2017 Feb 2018 Dec 2018 Oct 2019 Aug 2020

3 months 1 year 3 years p.a.

Schroder ISF Global Multi-Asset Income A Acc USD 4.0% -1.0% 1.1%

2019 2018 2017 2016 2015 2014

Schroder ISF Global Multi-Asset Income A Acc 12.2% -5.4% 5.5% 7.4% -6.9% 2.8%

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 back the amount originally invested. Exchange rate movements may cause the value of investments to fall as well as rise. Source: Datastream, Bloomberg, 30 September 2020, USD A Acc share class, net of fees. The TER for the share class shown is 1.54%. ¹Volatility is calculated using monthly returns since inception. Annualised performance since inception date of 18 April 2012.

11 Schroder ISF Global Multi-Asset Income Risk considerations

– Capital risk/negative yields: when interest rates are very low or negative, the fund's yield may be zero or negative, and you may not get back all of your investment – China country risk: changes in China's political, legal, economic or tax policies could cause losses or higher costs for the fund – Counterparty risk: the counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the fund, potentially creating a partial or total loss for the fund – Counterparty risk/money market and deposit: a failure of a deposit institution or an issuer of a money market instrument could create losses – Credit risk: a decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless – Currency risk: the fund can be exposed to different currencies. Changes in foreign exchange rates could create losses – Derivatives risk: a derivative may not perform as expected, and may create losses greater than the cost of the derivative – Emerging markets and frontier risk: emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty and operational risk – Equity risk: equity prices fluctuate daily, based on many factors including general, economic, industry or company news – High yield bond risk: high yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk – Interest rate risk: a rise in interest rates generally causes bond prices to fall – Leverage risk: the fund uses derivatives for leverage, which makes it more sensitive to certain market or interest rate movements and may cause above-average volatility and risk of loss – Liquidity risk: in difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares – Operational risk: failures at service providers could lead to disruptions of fund operations or losses

Source: Schroders.

12 Multi-Asset Investments At the heart of Schroders’ business

– Managing multi-asset mandates Client base since 1947 with over 100 investment professionals globally By region By client type

– A diversified global business with over $162bn¹ of assets under management

– Qualitative and quantitative research-led process, proprietary portfolio construction and risk management systems

– We design, implement and manage outcome-based solutions with our clients’ needs in mind

UK Asia Pacific Americas Europe Intermediary Institutional

Source: Schroders, 30 June 2020. ¹Including Multi-Manager; excluding Risk Mitigation and Schroder GAIA fund.

13 The experience and expertise to deliver Experienced team well integrated with Schroders’ global resources

Multi-Asset Income team

Remi Olu-Pitan Dorian Carrell Head of Multi-Asset Fund Manager Income and Growth JingJing Cui Mina Shankar Jerome Leibovici Fund Manager Analyst Analyst

Caroline Rushmore John Cooper Investment Director Product Executive

Multi-Asset research and idea generation Security specialists

Global Multi-Asset Fixed Income teams Team of over 100 Global credit Asian credit EMD relative EMD absolute Team of 45 Team of 15 Team of 10 return SIGMA¹ London and Singapore and New York and Team of 15 7 risk premia groups New York Hong Kong Buenos Aires London 6 cross-asset groups Quantitative and qualitative research Equity teams Global Europe Asia QEP Global Asset Allocation Committee (GAAC) Team of 100+ Team of 45 Team of 52 Team of 30 5 voting members (senior portfolio managers) across 11 countries London across 6 offices London, All Multi-Asset analysts and portfolio managers attend New York and Sydney Alternative teams Catastrophe bonds Securitised debt Manager selection Team of 25 Team of 15 Team of 5 Zurich New York London

Source: Schroders as of August 2020. ¹SIGMA – Strategic Investment Group – Multi-Asset (Risk Premia research).

14 Biographies Remi Olu-Pitan, CFA Head of Multi-Asset Growth and Income – Joined Schroders in 2006 and is based in London – Remi is responsible for Multi-Asset Income and Diversified Growth mandates. Remi is the lead fund manager of the Schroder ISF Global Multi-Asset Income and Co-fund manager of the Schroder Diversified Growth Fund – She is a member of the Equity risk premium team of the Strategic Investment Group Multi-Asset (SIGMA) and a member of the Global Asset Allocation Committee – CFA Charterholder – Masters in Statistics, London School of Economics. Bachelors in Business Finance, Durham University

Source: Schroders.

15 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 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 (Europe) 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. FTSE International Limited (“FTSE”) © FTSE (insert year). “FTSE®” is a trade mark of London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. Schroders has expressed its own views and opinions in this presentation and these may change. Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our Privacy Policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage. This presentation is issued by Schroder Investment Management (Europe) S.A., 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. Registered No. B 37.799. For your security, communications may be taped or monitored.

16 Important information (1 of 2) – European audience

Schroder ISF

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 (Europe) 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.

The authors have expressed their own views and opinions in this presentation and these may change.

Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our Privacy Policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage.

United Kingdom: Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our Privacy Policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage. Issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered Number 1893220 England. Authorised and regulated by the Financial Conduct Authority.

European Union/European Economic Area: this presentation is issued by Schroder Investment Management (Europe) S.A., 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. Registered No. B 37.799. For your security, communications may be taped or monitored.

France: the Company is created under Luxembourg law and is complying with the Directive 2009/65/CE (UCITS). The Company and some of its compartment have been authorised for distribution in France by the AMF.

17 Important information (2 of 2) – European audience

Austria: Further fund-specific information can be obtained from the key investor information in the current version and the current Sales Prospectus, which are available free of charge in paper form in German from the Austrian Paying Agent (Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Vienna, Austria) and in German from Schroder Investment Management (Europe) S.A., German Branch, Taunustor 1, D-60310 Frankfurt am Main [information agent only]). In addition, a current version of the key investor information is available at www.schroders.at. Investments in the Company are associated with risks that are described in more detail in the key investor information and the Sales Prospectus.

Germany: Further fund-specific information can be obtained from the key investor information in the current version and the current Sales Prospectus, which are available free of charge in paper form in German from the Paying and Information Agents in Germany (UBS Deutschland AG, OpernTurm, Bockenheimer Landstraße 2–4, D-60306 Frankfurt am Main and Schroder Investment Management (Europe) S.A., German Branch, Taunustor 1, D-60310 Frankfurt am Main [information agent only]). In addition, a current version of the key investor information is available at www.schroders.de. Investments in the Company are associated with risks that are described in more detail in the key investor information and the Sales Prospectus.

Poland: Subscriptions for the Company's shares may be made only on the basis of the latest available prospectus and key investor information document (KIID) and the latest audited annual report (and subsequent unaudited half-yearly report, if published), copies of which may be obtained free of charge from the law firm Wierzbowski Eversheds Sutherland Sp. k., Centrum Jasna, ul. Jasna 14/16a, 00–141 Warsaw, Poland and from Schroder Investment Management (Europe) S.A.

The Company is a Luxembourg registered undertaking for collective investment in transferable securities recognised in the United Kingdom and operates in Poland pursuant to the Act of 27 May 2004 on Investment Funds and Alternative Investment Fund Management (Journal of Laws of 2004, No. 146, item 1546, as amended).

The investor may, depending on the applicable tax obligations, be required to pay tax directly charged on income resulting from investments in fund units. An investment in the Company involves risks which are fully described in the prospectus.

Greece: UCITS funds do not have a guaranteed performance and previous performance does not guarantee the future performance. OI OΣΕΚΑ ΔΕΝ ΕΧΟΥΝ ΕΓΓΥΗΜΕΝΗ ΑΠΟΔΟΣΗ ΚΑΙ ΟΙ ΠΡΟΗΓΟΥΜΕΝΕΣ ΑΠΟΔΟΣΕΙΣ ΔΕΝ ΔΙΑΣΦΑΛΙΖΟΥΝ ΤΙΣ ΜΕΛΛΟΝΤΙΚΕΣ.

Switzerland: The Schroder International Selection Fund ('Company') is an open-ended investment company organised as a 'société anonyme' under the laws of the Grand Duchy of Luxembourg and qualifies as a Société d’Investissement à Capital Variable ('SICAV'). The prospectus and the key investor information document(s) for Switzerland, the articles of association, the annual and semi-annual reports can be obtained, free of charge, at the offices of the Swiss representative, Schroder Investment Management (Switzerland) AG, Central 2, CH-8001 Zurich and the Swiss paying agent, Schroder & Co. Bank AG, Central 2, CH-8001 Zurich, both authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA.

Please note not all funds are registered in all jurisdictions For Russian Qualified Investors only: None of the sub-funds mentioned in the conference agenda are registered in Russia

18 Important information (1 of 1) – Singapore audience

The information in this presentation (the ‘Presentation’) is only for institutional investors based in Singapore.

Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments.

Derivatives carry a high degree of risk and should only be considered by sophisticated investors.

Investors may wish to seek advice from a financial adviser before purchasing units of any Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider whether the Fund in question is suitable for him. Investors should read the prospectus, available from Schroder Investment Management (Singapore) Ltd or its distributors, before deciding to subscribe for or purchase units in any Fund. Funds may carry a sales charge of up to 5%.

This Presentation has not been reviewed by the Monetary Authority of Singapore.

Schroder Investment Management (Singapore) Ltd 138 Market Street #23–01 CapitaGreen Singapore 048946 Telephone: +65 6534 4288 Fax: +65 6536 6626 Registration No.: 199201080H

19 Important information (1 of 1) – US Offshore and Bermuda

Schroders has expressed its own views and opinions in this presentation and these may change.

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 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 (Europe) 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.

Forecast warning

The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any errors of fact or opinion and assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts and assumptions that may be affected by external economic or other factors.

Sustainability accreditation

Our Schroders Sustainability Accreditation helps investors distinguish how ESG factors are considered across our products. The fund has been awarded an integrated accreditation. ESG factors are embedded into the investment process and can be clearly evidenced. There is a strong commitment to stewardship and company engagement. For further information about our Schroders Sustainability Accreditation please visit www.schroders.lu/sustainabilityaccreditation.

Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our privacy policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage.

Issued by Schroder Investment Management Limited, 1 London Wall Place, EC2Y 5AU. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored.

20 Important information (1 of 1)– UAE audience

Schroder Investment Management Limited (Dubai Branch) is located in the Office 506, Level 5, Precinct Building 5, DIFC, Dubai, PO Box 506612 United Arab Emirates and is regulated by the Dubai Financial Services Authority (DFSA).

This document is not subject to any form of regulation or approval by the DFSA. The DFSA has no responsibility for reviewing or verifying any Prospectus or other documents in connection with this Fund. Accordingly, the DFSA has not approved any associated documents nor taken any steps to verify the information set out in the Prospectus for the fund, and has no responsibility for it. This document is intended to be for information purposes only and it is not intended as promotional material in any respect. This document is intended for professional investors only as defined by the DFSA rules which can be accessed from their website www.dfsa.ae

The Units to which this document relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers should conduct their own due diligence on the Units. If you do not understand the contents of this document, you should consult an authorized financial advisor.

The Securities and Commodities Authority assumes no liability for the accuracy of the information set out in this document, nor for the failure of any persons engaged in the investment fund in performing their duties and responsibilities. The relevant parties whose names are listed in the relevant documents shall assume such liability, each according to their respective roles and duties. If you do not understand the contents of this document, you should consult an authorized financial advisor. The Fund/s are only being offered to a limited number of Qualified investors in the UAE as per Article 2 clause 3 of the SCA decision 3 R/M of 2017.

21 Important information (1 of 1) – Israel audience

Note regarding the Marketing material for Qualified Clients or Sophisticated Investors only.

This communication has been prepared by certain personnel of Schroder Investment Management (Europe) S.A (Registered No. B 37.799) or its subsidiaries or affiliates (collectively, "SIM"). Such personnel are not licensed by the Israeli Securities Authority. Such personnel may provide investment marketing, to the extent permitted and in accordance with the Regulation of Investment Advice, Investment Marketing and Investment Portfolio Management Law, 1995 (the "Investment Advice Law"). This communication is directed at persons (i) who are Sophisticated Investors (ii) Qualified Clients ("Lakoach Kashir") as such term is defined in the Investment Advice Law; and (iii) other persons to whom it may otherwise lawfully be communicated. No other person should act on the contents or access the products or transactions discussed in this communication. In particular, this communication is not intended for retail clients and SIM will not make such products or transactions available to retail clients.