Schroder ISF Sustainable Multi Asset Income (Apr 2022)

Income and Impact. Sustainably. Schroder ISF Sustainable Multi-Asset Income

Marketing material

Make a lasting impact with your investment choices Choose to invest not onlyfor financial gains, but better outcomes for the world we live in. At Schroders, sustainable investing is not a ‘box-ticking’ sustainability ensuresthat the companies weinvest in generate positive,measurable societal and environmental impact alongside financial returns. exercise. Our robust and transparent approachto

Your future is shaped by action. Schroders can help. 20 + 33 years of ESG integration ESG analysts FULL A +

dedicated

ESG integration achieved across our managed assets in 2020

UN PRI annual assessment for 6 consecutive years  (2015-2020)

Schroders supports the Sustainable Development Goals

Sustainability can no longer be ignored Sustainable investing – which considers environmental, social and governance (ESG) factors alongside financial factors as part of its investment process – has risen-up the agenda for many investors. As recently as ten years ago, ESG themes barely registered as major threats towards global prosperity. Now, they dominate. World Economic Forum: Top 3 global risks in terms of likelihood Now : 2022

What’s driving the growth of sustainable investing?

1 Growing public concern:

91% of investors think sustainability is more important now than, if not as important as, before the pandemic in terms of both environmental and social issues. Source: Schroders Global Investor Study 2021

2 ESG regulation is growing exponentially:

Social and regulatory pressures are forcing companies to take greater responsibility for the actions they create.

Fall in BP share price due to oil spill incident Source: Bloomberg. For illustrative purposes only and not to be viewed a s a recommendation to buy or sell. Projected cash flow losses of global listed companies if carbon prices rise to $100/tonne Source: Schroders, Carbon  Value-at-Risk (VaR) tool

Climate Action Failure

Extreme Weather Environmental

Biodiversity Loss

54%

Then : 2010

Asset Price Collapse

Chronic Disease

China Slowdown

20%

Economic Source: World Economic Forum, Global Risk Reports: Survey of 800 business, government, civil society and thought leaders. Societal

This can significantly impact a company’s profitability and ability to deliver returns. Companies that prioritise sustainability issues are better placed to maintain growth and returns over the long term.

Income and Impact. Sustainably.

Introducing Schroder ISF Sustainable Multi-Asset Income, a fund that has been designed to help investors achieve both their income and sustainability objectives.

Monthly income of 4.0% 1,2 p.a. as at last record date, from sustainable sources

Proprietary  ESG toolkit for best-in-class ideas

100% analysed from a sustainability perspective

Expertise of Schroders  multi-asset & ESG teams

Transparent reporting for measurable positive impact

Note: Schroder International Selection Fund is referred to as Schroder ISF throughout this document. 1 The annualised payout rate shown is as at the last record date of 30 Mar 2022. For more information on the annualised dividend rate of a single payout and the composition of distribution payments, please refer to www.schroders.com.sg/distributioninformation. 2 Distributions of the Schroder ISF Sustainable Multi-Asset Income (the “Fund”) for share class USD-H A Dis MF will be declared on a monthly basis. The distributions are not guaranteed and will be reviewed periodically. In the event of income and realised gains being less than the intended distribution, distributions will be made from capital. Investors should be aware that the distributions may exceed the income and realised gains of each fund at times and lead to a reduction of the amount originally invested depending on the date of initial investment.

Balancing Income and Sustainability Income and sustainability are equally important to the fund. A global multi-asset approach that invests across asset classes and regions improves the odds to achieve both sustainability objectives and steady income.

Diversification also provides access to investments or strategies that specifically target better sustainable outcomes, like renewable energy equities or green bonds. We invest directly throughbottom- up selection to identify high-yielding sustainable securities.

Diversified by ESG Themes

Diversified by assets

Carbon Neutral Equities

EMD$

Convertibles

High Yield Debt

Green Bonds

Global Equities

IG Credit

REITs

SDG Bonds

EMD Local

Renewal Energy

Government Bonds

Preferred Securities

Source: Schroders. Sectors mentioned are for illustrative purposes only and not a recommendation to buy or sell.

Comprehensive sustainability approach 100% of the fund’s holdings are analysed from a  sustainability perspective. We do this in a number of ways. ESG integrated research process: We analyse the long-term implications of ESG themes o n returns Extensive ESG screening: Stringent screens (vs. the index) are put in place to exclude controversial investments Active engagement: Active engagement withcompanies to promote moresustainable business practices Positive transition stories and ESG themes: We identifycompanies with improvingESG scores and favour themes aligned with the UN’s Sustainable Development Goals (SDGs)

Proprietary ESG toolkit

Most sustainability funds rely on third party scoring or screening for ESG analysis, but these are typically inconsistent andbackward looking. We’ve developed a unique platform of tools to measure the impact of our investments on ESG issues, using a vast traditional and non- traditional data set. This gives us the best opportunity to identify sustainable companies that are able to maintain above average growth and returns over the long term. A company’s contributions and costs to society can be quantified 55 % 1/3

Estimated fall in profits of listed companies ifall ESG impactsbecome

Of listed companies will become loss-making as a result.

crystallisedas financial costs.

Source: Schroders, SustainEx tool

Transparency of reporting Transparent and clear ESG reporting provides assurance that the companies we invest in deliver measurable, p ositive impact. We develop reports with different sustainability lenses, from our carbon profile to positive characteristics relative the UN’s SDGs, across all the fund’s holdings, not just equities.

Expertise of specialist teams Finding decent income while meeting sustainabilityobjectives is complex, but let us do the hard work for you. The fund is managed by a highly experienced specialist multi-asset income team that is well-integrated with Schroders’ global resources, including a dedicated sustainable investment team.

The fund has registered positive improvements vs. the index for 7 of the UN’s 16 Sustainable Development Goals

1

3

7

NO POVERTY

GOOD HEALTH AND WELL–BEING

AFFORDABLE AND CLEAN ENERGY

9

13

INDUSTRY, INNOVATION AND INFRASTRUCTURE

CLIMATE ACTION

15

16 PEACE, JUSTICE AND STRONG INSTITUTIONS

LIFE ON LAND

Source: Schroders. Analysis for the fund holdings as of 30 Mar 2022. Index represented by 30% MSCI AC World Index/ 40% Barclays Global Aggregate Corporate Bond In- dex/ 30% Barclays Global High Yield excl CMBS & EMG 2%. For illustrative purposes only and not to be viewed as a recommendation to buy/sell securities.

Fund characteristics Portfolio of high yielding securities, active in all areas of ESG Dynamically managed across economic regimes and market cycles

High Yield **

Global Equities *

14.5%

28.3%

Investment Grade Credit

Fixed Income 29.8%

11.7%

Equities 36.9%

Emerging Market Debt Local Currency

Alternatives

US Equities

2.0%

3.6%

1.1%

2.0%

Cash 19.8%

Thematic Equities

Alternatives

Hybrids 11.6%

6.4%

1.1%

Emerging Market Equities

19.8%

6.4%

5.2%

Cash

Preferred Securities

Convertible Bonds

Portfolio at a glance

Portfolio analysis

40% 35% 30% 25% 20% 15% 10%

36.7%

124

Number of Equity securities

26.1%

396

Number of Fixed Income securities

19.8%

Number of Hybrid securities 49

6.8%

4.0% 3.5% 3.1%

5% 0%

BB

Average credit rating

Source: Schroders, as at 31 Mar 2022. For illustrative purposes only and not to be viewed as a recommendation to buy/sell securities. * Global Equities = Global Enhanced Equity Income + Global Equities + Risk Management. ** High Yield = US High Yield + European High Yield.

Fund details

SGD-H A Acc

SGD-H A Dis MFC

USD-H A Acc

USD-H A Dis MF

AUD-H A Acc

AUD-H A Dis MFC

EUR A Acc

EUR A Dis QF

The fund aims to provide an income of 3-5% 1,2 p.a. by investing in a diversified range of assets and markets worldwide which meet our sustainability criteria

Fund objective

Inception date

5 Aug 2020

21 Jan 2020

5 Aug 2020

21 Jan 2020

Share class currency

SGD

USD

USD

AUD

AUD

EUR

EUR

SGD

Launch price

SGD140

USD100

USD100

AUD100

AUD100

EUR100

EUR100

SGD140

Minimum subscription amount

SGD1,000

USD1,000

USD1,000

AUD1,000

AUD1,000

EUR1,000

EUR1,000

SGD1,000

Payout frequency

N.A.

N.A.

Monthly

N.A.

Monthly

N.A.

Quarterly

Monthly

ISIN Code

LU2191332431

LU2191332514

LU2097344357

LU2097344431

LU2191331623

LU2191331896

LU2097343110

LU2097343540

Bloomberg ticker

SSMIASA LX

SCSMIAS LX

SCSMIAU LX

SCSMAUI LX

SSMIAAA LX

SCSMIAA LX

SCSMAEA LX

SCSMIEA LX

Subscription method

Cash

Sales charge

Up to 5%

Management fees

1.25% p.a.

Dealing frequency

Daily

¹ For more information on the annualised dividend rate of a single payout and the composition of distribution payments, please refer to www.schroders.com.sg/distributioninformation. ² Distributions of the Schroder ISF Sustainable Multi-Asset Income will be declared on a monthly basis. The distributions are not guaranteed and will be reviewed periodically. In the event of income and realised gains being less than the intended distribution, distributions will be made from capital. Investors should be aware that the distributions may exceed the income and realised gains of each fund at times and lead to a reduction of the amount originally invested depending on the date of initial investment.

schroders.com.sg/SMAI

Important Notes

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

This is prepared by Schroders for information and general circulation only and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of any Schroders fund (the ‘Fund’) and does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this. 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. Past performance of the Fund or the manager, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of units in the Fund, and the income accruing to the units, if any, from the Fund, may fall as well as rise. Investment in units of the Fund involves risks, including the possible loss of the principal amount invested. 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%. The fund has environmental and/or social characteristics within the meaning of Article 8 of Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Services Sector (the “SFDR”). For Bloomberg data the information contained herein: (1) is proprietary to Bloomberg and/or its content providers; (2) may not be copied or distributed; (3) may not be accurate, complete or timely; and (4) has not been checked or verified by Schroders in any way. None of Bloomberg, its content providers or Schroders shall be responsible for any damagesor losses arising from any use of the information in any way.

Published: April 2022 Schroders Reg. No. 199201080H

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