http://SISF-Global-Bond-C-Acc-FMR-UKEN

January 2019 All data expressed as at 31 December 2018 Marketing Material www.schroders.co.uk

Schroder International Selection Fund

Global Bond
C Accumulation Share Class
Fund Launch Date
03 June 1993
Investment Objective and Policy
The fund aims to provide capital growth and income by investing in bonds.
Total Fund Size (Million) The fund invests at least two-thirds of its assets in bonds with an investment grade or sub-investment grade credit
USD 2,020.0 rating (as measured by Standard & Poor's or any equivalent grade of other credit rating agencies) issued by
governments, government agencies, supra-nationals and companies worldwide in various currencies.The fund
may invest up to 10% of its assets in contingent convertible bonds; and up to 30% of its assets in bonds that have
Share Price End of Month (USD) a below investment grade credit rating (as measured by Standard & Poor's or any equivalent grade of other credit
13.20 rating agencies for rated bonds and implied Schroders ratings for non-rated bonds). The fund may also invest up to
40% of its assets in asset-backed securities and mortgage-backed securities issued worldwide with an investment
grade or sub-investment grade credit rating (as measured by Standard & Poor's or any equivalent grade of other
Total number of holdings credit rating agencies). Underlying assets may include credit card receivables, personal loans, auto loans, small
business loans, leases, commercial mortgages and residential mortgages.The fund may use derivatives with the
636 aim of achieving investment gains, reducing risk or managing the fund more efficiently. The fund may also hold
cash.
Benchmark
Bloomberg Barclays Global Aggregate
Bond Index Performance Analysis
Fund Manager 1 3 6
Performance (%) month months months YTD 1 year 3 years 5 years 10 years
Grainger,Jolly,Global Multi-Sector Team
Fund 1.0 0.1 -1.3 -3.2 -3.2 6.5 2.6 32.8
Managed fund since
Benchmark 2.0 1.2 0.3 -1.2 -1.2 8.3 5.5 27.8
30 November 2011
Discrete Yearly Q4/2017 - Q4/2016 - Q4/2015 - Q4/2014 - Q4/2013 -
Running Yield Performance (%) Q4/2018 Q4/2017 Q4/2016 Q4/2015 Q4/2014
2.75 % Fund -3.2 7.4 2.4 -4.8 1.2
Effective Duration of Fund in Years Benchmark -1.2 7.4 2.1 -3.2 0.6

6.66 Performance over 5 years (%)

10.0
Effective Duration of Index in Years
8.0
6.91
6.0
Effective Yield
4.0
3.38 %
2.0
Option Adjusted Spread of Fund 0.0
125 bp -2.0

Option Adjusted Spread of Index -4.0

55 bp -6.0
Dec 2013 Sep 2014 Jun 2015 Mar 2016 Dec 2016 Sep 2017 Jun 2018
Average Credit Rating Fund Benchmark
A The return received may rise or fall as a result of currency fluctuations.
Past performance is not a reliable indicator of future results, prices of shares and the income from them
Annual Volatility over 3 years (%) may fall as well as rise and investors may not get back the amount originally invested.
4.54 The fund is managed with reference to a benchmark and its performance may be measured accordingly, but the
manager invests on a discretionary basis and is not limited to investing in accordance with the composition of the
The Running Yield reflects the income related to the benchmark.
Coupons of the instruments held in the portfolio as a All fund performance data are on a NAV to NAV basis, net income reinvested. Data is not available for the time
percentage of their market value. The figure shown is periods with no % growth stated. In case a share class is created after the fund's launch date, a simulated past
a market value weighted average for the whole performance is used, based upon the performance of an existing share class within the fund, taking into account
portfolio. It does not include any preliminary charge the difference in the ongoing charges and the portfolio transaction costs, and including the impact of any
and investors may be subject to tax on distributions. performance fees if applicable.
Some performance differences between the fund and the benchmark may arise because the fund performance is
calculated at a different valuation point from the benchmark.

Source: Schroders
In August 2001, the index changed from Salomon Smith Barney WGBI Gross (USD) to the Bloomberg Barclays
Global Aggregate Bond. The full track record of the previous benchmark has been kept and chain linked to the new
one.
Schroder International Selection Fund Global Bond

Risk Considerations • ABS and MBS risk: Mortgage or asset-backed securities may not receive in full the amounts owed to them by
underlying borrowers.

• Capital risk / contingent convertible bonds: The fund may be significantly invested in contingent convertible
bonds. If the financial strength of a bond's issuer (typically a bank or an insurance firm) falls in a prescribed way
the bond may suffer substantial or total losses of capital.

• Capital risk / distribution policy: Because the fund intends to pay dividends regardless of its performance, a
dividend may include a return of part of your original investment.

• 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.

• 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 & 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.

• 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.

• Capital risk / distribution policy: the expenses of this share class are paid out of capital rather than out of
investment income. Capital growth will be reduced and in periods of low growth capital erosion may occur.

Top 10 Holdings Sector % NAV

Holdings Analysis 1. Bundesschatzanweisungen 1.5% 04/09/2022 Treasuries 4.9
2. Japan Government Bond 1.9% 20/09/2042 Treasuries 2.6
3. Japan Government Bond 1.2% 20/12/2020 Treasuries 2.2
4. Japan Government Bond 1.2% 20/06/2021 Treasuries 2.0
5. United States Treasury Note/Bond 1.625% 15/02/2026 Treasuries 2.0
6. France Government Bond 0.5% 25/05/2025 Treasuries 1.9
7. Japan Government Bond 1.1% 20/03/2033 Treasuries 1.7
8. United Kingdom Gilt Bond 3.25% 22/01/2044 Treasuries 1.7
9. European Stability Mechanism 2.125% 03/11/2022 Supranational 1.5
10. FMS Wertmanagement 2.75% 06/03/2023 Agencies 1.4
Total 21.9
 Schroder International Selection Fund Global Bond
y
y
y Asset Allocation (%) Sector
31.7
Currency
42.8
y Treasuries 54.3 US Dollar
y 45.1
20.3 23.4
y Fund Industrial 10.2 Euro 24.5
y 12.0 16.1
y Financial Institutions 7.1 Japanese Yen 16.9
y Benchmark 10.0 7.5
y Agencies 5.5 UK Sterling 4.8
y 8.7 5.1
MBS 11.6 Czech Koruna
y 0.1
y 3.0 5.1
Supranational 2.2 Norwegian Krone
y 0.1
3.0 2.8
y CMBS 0.8 Indonesian Rupiah 0.3
y 2.7
ABS 2.6
y 0.3 Canadian Dollar 2.6
y 2.1 2.3
y Sovereign 1.2 Mexican Peso 0.3
y Covered Bonds 2.0 1.1
y 2.6 Russian Ruble 0.1
y 1.6 1.0
Utility 1.5 New Zealand Dollar
y 0.1
0.8 1.0
y Local Authorities 2.9 South African Rand
y 0.0
- 0.5 0.6
y Derivatives 0.0 Brazilian Real 0.0
y 0.0
y Cash Equivalents 0.0 Other Currencies - 11.5 5.1
y Cash 2.5
y 0.0
y
y
y Fixed Income Rating Duration Contribution to Duration (in years)
y AAA 29.0 24.2 - 0.3
y 39.9 0-1 year 0-1 year
2.4 0.1 0.0
y AA 15.5
y - 4.2 - 0.0
A 20.2 1-3 years 1-3 years
y 25.7 23.7 0.5
y BBB 41.4 0.7
16.5 19.4 3-5 years
y 5.4 3-5 years 1.0
BB 23.9
y 0.1
y 1.1 14.2 0.8
B 0.0 5-7 years 5-7 years 1.1
y 19.1
CCC 0.3
y 0.0 2.0
y 26.1 7-10 years
Not Rated 0.2 7-10 years 1.0
y 2.2 12.6
y 3.4
20.4 10+ years 3.3
y 10+ years
20.6
y
y
y

Credit ratings are calculated using asset ratings from different rating agencies. The figures do not include the exposure commitment of the derivative contracts.

Source: Schroders

Accumulation Distribution
Information SEDOL 5795204 4962429
Bloomberg SCHGBCA:LX SCHGBCI:LX
Schroder Investment Management (Europe) S.A.
5, rue Höhenhof Reuters LU0106257180.LUF LU0062905582.LUF
1736 Senningerberg ISIN LU0106257180 LU0062905582
Luxembourg
Tel.: (352) 341 342 212 Fund Base Currency USD
Fax: (352) 341 342 342
For your security, communications may be taped or Dealing Frequency Daily (13:00 CET)
monitored.
Max. Entry Charge 1.00 % of gross investment amount
Ongoing Charges (latest 0.65 %
available)
Minimum Investment Amount EUR 1 000 or USD 1 000 or their near equivalent in
any other freely convertible currency. The minimum
subscription amount may be waived at the Directors'
discretion.

Morningstar Ratings are sourced from Morningstar.

Third party data is owned or licensed by the data provider and may not be reproduced or extracted and used for any other purpose without the data provider's consent. Third party data is provided
without any warranties of any kind. The data provider and issuer of the document shall have no liability in connection with the third party data. The Prospectus and/or www.schroders.com contain
additional disclaimers which apply to the third party data.

This document 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 document 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. The Company is a Luxembourg-registered UCITS recognised in the UK under Section 264 of the Financial Services and Markets Act 2000. There will be no right
to cancel any agreement to purchase shares under section 6.7 of the UK Financial Services Conduct of Business Sourcebook. All or most of the protection provided by the UK regulatory system does
not apply to investments in the Company and compensation will not be available under the UK Financial Services Compensation Scheme. An investment in the Company entails risks, which are fully
described in the prospectus.

This document is issued by Schroder Investment Management (Europe) S.A., 5, rue Höhenhof, L-1736 Senningerberg, Luxembourg. Registered No. B 37.799. Approved for issue in the UK by Schroder
Investment Management Limited, 1, London Wall Place, London EC2Y 5AU. Authorised and regulated by the Financial Conduct Authority. Schroders has expressed its own views and opinions in this
document and these may change.