31 October, 2005 Schroder Schroder Investment Management (Luxembourg) S.A. For Professional Investors Only International Selection Fund 5, rue Höhenhof, L-1736 Luxembourg. Fund Analyser Schroder ISF Swiss Equity I
Fund Manager Objective Stefan Frischknecht
Location To provide capital growth primarily through investment in equity securities of Swiss Zurich companies.
Fund Rating Performance Analysis Standard & Poor’s Fund Stars1 µµµµ Cumulative
Standard & Poor’s Fund 3 months Ytd. 1 year 3 years 5 years Inception Management Ratings Base Currency Fund 4.81 21.99 30.17 69.60 -13.71 203.77 A (CHF) Index 6.22 26.05 33.87 55.05 -4.22 155.92 Performance Calculated on a NAV to NAV basis Forsyth Rating - Last 3 years Last Six months
80% 7.0% Launch 70% 6.0% 60% 5.0% 18 December 1995 50% 40% 4.0% 30% 3.0% Domicile 20% 2.0% Luxembourg 10% 0% 1.0% -10% 0.0% Base Currency -20% -1.0% -30% CHF -2.0% 10/02 10/03 10/04 10/05 05/05 06/05 07/05 08/05 09/05 10/05 Benchmark Fund Benchmark Fund Benchmark Swiss Performance Index
Annualised Essential Statistics (Over 3 years where appropriate)
3 years 5 years Inception Fund Index Base Curr. Fund 19.25 -2.91 11.96 Annual Volatility 14.62% 13.11% (CHF) Index 15.74 -0.86 10.00 Alpha 0.17% --- Beta 1.07 1.00 Rsquared 92.63% --- Financial Ratios Information Ratio 1.13 --- Fund Index Sharpe Ratio 1.28 1.15 P/Book Value 2.70 2.80 Jensen's Alpha 2.40% --- P/Cash Earnings 15.00 14.50 Tracking Error Volatility 4.08% --- P/E Ratio 21.90 19.20 Predicted Tracking Error 3.28% --- Predicted P/E Ratio 18.80 --- ROE 14.50 16.00 Dividend Payout Ratio 26.10 31.70 3 Year Earnings Growth 30.70% 31.70%
Tel: +352 341 342 202 Fax: +352 341 342 344 Schroder Corporate For Professional Investors Only International Selection Fund www.schroders.com
Fund Size (Millions in CHF) Risk Analysis (Over 3 Years) 740.7
No. of Holdings Risk/Return Analysis Barra Risk Decomposition 44 25.0% % of Total 20.0% Stock specific factors 64.20 15.0% NAV Per Share (CHF) 10.0% Industrial sectors 10.20 5.0% Countries 1.30 30.29 0.0% BARRA risk indices(*) 22.00
Annual Average -5.0% Liquidity% -10.0% Market risk 2.30 10.0% 15.0% 20.0% 25.0% 30.0% 3.50 100.00 Risk
The competitor average is represented by the vertical and * BARRA Risk Indices include the proportion of active risk horizontal lines inside the chart. attributable to style bias. Fund Benchmark
Information Ratio Security Market Line
5.0 25% 19.25% 4.0 3.0 15% 2.0 5%
1.0 Returns -5% y = 0.1514x + 0.0061 0.0 -15% -1.0 0.00 0.50 1.00 1.50 2.00 -2.0 Beta 10/02 10/03 10/04 10/05
The Information Ratio shows the relationship between the The SML shows the returns that we can expect from the Excess Annualised Return against the Tracking Error(Xs). fund for a particular level of systematic risk (Beta) meas- The higher the ratio, the better, as it reflects the extent to ured against the market index. The expected return (Line) which the fund has outperformed the benchmark. is then compared with the fund's actual return (Point). The difference between the two is called Jensen's Alpha and it measures the return earned by the fund above or below what would be expected.
Sharpe Ratio Monthly Distribution
6.0 12.0 5.0 10.0 4.0 8.0 3.0 6.0 2.0 4.0 1.0 2.0
0.0 Probability (%) -1.0 0.0 -2.0 -15% -10% -5% 0% 5% 10% 15% 20% -3.0 Monthly Returns 10/02 10/03 10/04 10/05 Fund Benchmark Fund Benchmark
The Sharpe Ratio shows the relationship between a fund's The monthly distribution shows the probability of a risk and its return.The return on a risk-free asset (LIBOR in fund/index returning a certain level of return. The more to base currency of the fund) is deducted from the fund’s the right the curve peaks the better. The benchmark's annualised average. This net return is then divided by the curve is analysed the same way. This chart also provides total risk. A higher ratio denotes greater added value. information about the degree of volatility of the fund/benchmark both on the upside and downside. The flatter the curve, the more volatile the fund/benchmark.
Regression Line
20%
10%
0% Fund -10% y = 1.0733x + 0.0017 R 2 = 0.9263 -20% -20% -10% 0% 10% 20% Index
The Regression Line plots all fund and benchmark returns - each point represents a return on the fund and the benchmark's corresponding return. The Regression Line then tells you how the fund is likely to react to a move in its benchmark. A 45° Line means that the fund is perfectly correlated to its benchmark and has a Beta of 1. An angle greater than 45° denotes higher market risk. Schroder Corporate For Professional Investors Only International Selection Fund www.schroders.com
Fund Codes Holdings Analysis (Net Asset Values Excluding Cash) Bloomberg SCHSWIA LX Reuters Top 10 Holdings (The percentage below may include warrants)
LU0134342392.LUF Security Sector Country Ex/cash W/cash ISIN Nestle SA Consumer Non-Cyclicals Switzerland 13.29 12.82 LU0134342392 Roche Holding AG Healthcare Switzerland 12.69 12.24 SEDOL Novartis AG Healthcare Switzerland 10.87 10.49 7233489 UBS AG Financial Switzerland 7.47 7.21 CEDEL Credit Suisse Group Financial Switzerland 5.09 4.91 13434239 Zurich Financial Services AG Financial Switzerland 4.06 3.92 WKN Syngenta AG Basic Materials Switzerland 3.75 3.62 Swiss Reinsurance Financial Switzerland 2.85 2.75 540994 Synthes Inc Healthcare Switzerland 2.62 2.53 Valoren Compagnie Financiere Richemont AG Consumer Non-Cyclicals Switzerland 2.55 2.46 1304005 TOTAL 65.24 62.96
Sector Split Relative Sector Split
Healthcare 33.72 Healthcare -1.87
Financial 22.90 Financial -5.75
Consumer Non-Cyclicals 17.63 Consumer Non-Cyclicals -0.16
Industrial 11.38 Industrial 3.31
Basic Materials 7.61 Basic Materials 4.33
Technology 4.05 Technology 2.88
Consumer Cyclical 1.36 Consumer Cyclical -2.91
Utilities 1.34 Utilities 1.11
Telecommunications 0.00 Telecommunications -0.93
Other represents holdings in Funds (including Exchange Traded Funds - ETF).
Overweights Underweights
% % Actelion 2.46 Novartis -6.93 Syngenta 2.40 Nestle -5.86 Schindler 2.06 UBS -3.69 Synthes-Stratec 1.90 ABB -2.16 Clariant 1.80 Holcim -1.52 Schroder Corporate For Professional Investors Only International Selection Fund www.schroders.com
Risk Warnings for Stock Level Performance Attribution Professional Investors Relative Positive Performers Relative Negative Performers This document does not constitute an offer to anyone, or a solicitation by % % anyone, to subscribe for shares of Holcim 0.13 Novartis -0.28 Schroder International Selection Fund (the "Company"). Nothing in this document UBS 0.10 Synthes -0.21 should be construed as advice and is Actelion 0.06 Clariant -0.17 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 Free Market Cap Split in CHF annual report (and subsequent unaudited semi-annual report, if published), copies of which can be obtained, free of charge, % NAV from Schroder Investment Management > 5 bn 68.71% (Luxembourg) S.A. > 2 bn < 5 bn 13.18% As per the September 2004 prospectus, > 1 bn < 2 bn 4.34% the company will seek UK distributor sta- > 0.5 bn < 1 bn 5.50% tus for all distribution A and C shares. < 0.5 bn 8.27% An investment in the Company entails 100.00% 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 Notes as rise. 1The quoted Fund Star rating is based on the Standard & Poor’s Offshore/Luxembourg Exchange rate changes may cause the Universe. These ratings can change. Investors should also be aware that there can be value of any overseas investments to rise differences between the Standard & Poor’s Offshore/Luxembourg Universe ratings and those or fall. Schroders has expressed its own views of other countries. For further information please contact your local Sales Office. and opinions in this document and these may change. Please note that the calculation of the Fund’s price has changed to 15.00 CET from 13.00 CET as of 2nd May 2003. As the price of the Benchmark is calculated at close of business This document is issued by Schroder Investment Management (Luxembourg) this may lead to distortions in the calculation of over/under performance of the Fund against S.A., the Benchmark over short time periods in volatile markets. 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. Please note that Schroder ISF Swiss Equity was not priced on 31 May 2004. This will lead to For your security, all telephone calls are portions of the monthly fund performance not being considered in this publication and may recorded lead to distortions in the calculation of the performance comparison between Schroder ISF Swiss Equity and the benchmark.
Source: Schroders’ statistics on all pages unless otherwise stated. All figures refer to I Accumulation Shares. The NAV per share of ‘A’ shares is used as a proxy, until the creation of C shares which are then used as a proxy prior to creation of ‘I ’ Shares.