schroder international selection fund em dec 2019...schroder international selection fund société...

Schroder International Selection Fund Hong K

ong Covering D

ocument and Prospectus

施羅德環球基金系列香港說明文件及發行章程

Schroder International Selection FundHong Kong Covering Document December 2019 Edition Prospectus May 2019 Edition(Version 4)

施羅德環球基金系列香港說明文件二零一九年十二月版發行章程二零一九年五月版（第四版）

Schroder Investment Management (Hong Kong) LimitedSchroders Investor Hotline: +852 2869 6968Schroders InvestLink: +852 2530 1212 Website: www.schroders.com.hkEmail: [email protected] SP

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MAR

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Schroder International Selection Fund Société d’Investissement à Capital Variable

5, rue Höhenhof, L-1736 Senningerberg Grand Duchy of Luxembourg

Tel: +352 341 342 202 Fax:+352 341 342 342

www.schroders.com R.C.S. Luxembourg – B. 8202 For your security telephone conversations may be recorded

IMPORTANT: This letter is important and requires your immediate attention. If you have any questions about the content of this letter, you should seek independent professional advice. Schroder Investment Management (Europe) S.A., as the Management Company to Schroder International Selection Fund, accepts full responsibility for the accuracy of the information contained in this letter and confirms, having made all reasonable enquiries, that to the best of its knowledge and belief there are no other facts the omission of which would make any statement misleading.

9 March 2020

Dear Shareholder,

Schroder International Selection Fund — Asia Pacific Cities Real Estate merger with Schroder International Selection Fund— Global Cities Real Estate

We are writing to advise you that on 16 April 2020 (the “Effective Date”), Schroder International Selection Fund — Asia Pacific Cities Real Estate (the “Merging Fund”) will merge with Schroder International Selection Fund — Global Cities Real Estate (the “Receiving Fund”) (the “Merger”). Shareholders in the Merging Fund will receive the equivalent value of shares in the Receiving Fund in place of their current shares in the Merging Fund.

The Merging Fund is no longer allowed to be marketed to the public in Hong Kong, and subscriptions and switches from new investors into the Merging Fund will not be accepted with effect from the date of this notice.

Background and rationale

Upon review, the board of directors (the “Board”) of Schroder International Selection Fund (the “Company”) concluded that, given the relative size of the Merging Fund and the similarity in investment approach between the Merging Fund and Receiving Fund, shareholders in the Merging Fund will benefit from a merger with the Receiving Fund. The Merging Fund has approximately USD 20 million under management as of 7 February 2020 while the Receiving Fund has approximately USD 380 million under management as of the same date. Shareholders in the Merging Fund will be merged into a sub-fund which, the Board believes, will give shareholders access to a similar investment strategy with a similar risk profile.

Where assets under management are low it can become difficult to implement the investment policy in a cost effective manner and costs to clients can increase. On this basis a merger into the Receiving Fund offers investors an alternative fund with appropriate scale and a broadly similar investment approach; both funds focus on urbanisation and utilise the same investment process and proprietary real estate databases. The investment exposure of both the Merging Fund and the Receiving Fund offers some commonality across companies and regions; ~25% of the Receiving Fund is invested in the Asia Pacific Region and ~23% of the Receiving Fund is invested in companies also held in the Merging Fund.

The Receiving Fund offers a degree of continuity to shareholders of the Merging Fund given the commonality of holdings highlighted above. In addition, the size of the Receiving Fund is over USD 380 million can offer the potential for economies of scale that the Merging Fund, at the size of approximately USD 20 million

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cannot. The Board has therefore decided, in accordance with Article 5 of the articles of incorporation of the Company (the Articles) and the provisions of the prospectus of the Company (the "Prospectus") and in the best interest of both funds’ shareholders, to merge the Merging Fund into the Receiving Fund.

Investment objectives and policies

The investment objectives of both the Merging Fund and the Receiving Fund include the provision of income and capital growth by investing in equity and equity related securities of real estate companies (in the Asia Pacific region for the Merging Fund and globally for the Receiving Fund). The Merging Fund has a more concentrated portfolio than the Receiving Fund and may invest in China A-Shares, China B-Shares and China H-Shares. The Receiving Fund may invest up to 5% of its net asset value in China A-Shares but the ReceivingFund currently does not have any exposures to China.

Share classes and annual investment management fee changes

The table below summarises the annual investment management charges (the AMC) and ongoing charges (the OGC) for the share classes of the Merging Fund and the Receiving Fund.

The risk and return profile of the Receiving Fund and the Merging Fund is the same. The Receiving Fund and the Merging Fund exhibits similar levels of volatility (i.e. price fluctuations) and we expect similar total return over a rolling 5 year period for both the Receiving Fund and Merging Fund.

The base currency of both the Merging Fund and the Receiving Fund is USD. A full summary of which Merging Fund share classes will be merged into which Receiving Fund share classes can be found in the Appendix.

Share class Merging Fund Receiving Fund

AMC OGC AMC OGC1

A 1.50% 1.92% 1.50% 1.85%

A1 1.50% 2.42% 1.50% 2.35%

The ongoing charges figure of the Receiving Fund is not expected to increase as a result of the Merger.

Dealing cut-off time and settlement periods for subscriptions and redemptions

There is no change to the dealing cut-off time or the settlement periods. The dealing cut-off time of the Receiving Fund is 5.00 p.m. Hong Kong time on the dealing day. Orders that reach the Hong Kong Representative of the Company, Schroder Investment Management (Hong Kong) Limited (the “Representative”) before the cut-off time will be executed on the dealing day. The settlement periods for subscription and redemption are within three business days following a dealing day.

A key features comparison table of the Merging Fund and the Receiving Fund (including the share class changes) can be found in the Appendix.

Merger

This Merger notice is required by Luxembourg law.

1 The ongoing charges figure is based on the annualised expenses for the interim period ended 30 June 2019. This figure may vary from year to year.

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As a result of the Merger, there will be no change of legal entities acting as investment manager, which remains Schroder Investment Management Limited.

Costs and expenses of the Merger

The Merging Fund has no unamortised preliminary expenses and outstanding set-up costs. The expenses incurred in the Merger, including the legal, advisory and administrative costs, will be borne by the Management Company.

From 9 April 2020, investments held by the Merging Fund but not the Receiving Fund (the “non-common holdings”), which is estimated to be 42% of the net asset value of the Merging Fund, will be disposed. The proceeds from the disposal of the non-common holdings will be transferred to the Receiving Fund in cash on the Effective Date, and it is expected that the net asset value of the Receiving Fund as of the Effective Date will be adjusted upwards by means of a dilution adjustment to account for the market-related transaction costs of acquiring investments. Investments that are held by both the Merging Fund and the Receiving Fund are retained by the Merging Fund and will be transferred to the Receiving Fund in-specie on the Effective Date. It is not expected that there will be any deviation from the current investment objective and policy of the Merging Fund arising from the disposal of the non-common holdings. The disposal of the non-common holdings is not expected to disadvantage shareholders of the Merging Fund.

In order to account for the market-related transaction costs associated with the disposal of any investments that are not in line with the Receiving Fund's portfolio, or associated with redemption or switch orders received during the period leading up to the Merger, the Merging Fund's net asset value per share will be adjusted down each time there is a net outflow from the Merging Fund by means of a dilution adjustment. In the event that there are net inflows to the Merging Fund during this period the net asset value per share will be adjusted upwards. The intent of the adjustment is to protect existing and continuing investors in the Merging Fund from bearing all such market-related transaction costs and to apportion such costs appropriately. However, it is not expected that such transaction costs will be significant and they will not have a material impact on the shareholders of the Receiving Fund and the Merging Fund. Further information relating to dilution adjustments is available in the Prospectus in section 2.4 "Calculation of Net Asset Value".

Exchange ratio, treatment of accrued income and consequences of the Merger

On the Effective Date, the net assets of the Merging Fund will be transferred to the Receiving Fund. For the shares of each class that they hold in the Merging Fund, shareholders of the Merging Fund will receive an equal amount by value of shares of the corresponding class in the Receiving Fund. The exchange ratio of the Merger will be the result of the ratio between the net asset value of the relevant class of the Merging Fund and the net asset value or initial issue price of the relevant class of the Receiving Fund as of the Effective Date calculated in accordance with the provision of the Prospectus. While the overall value of the shareholders' holdings will remain the same, shareholders may receive a different number of shares in the Receiving Fund than they had previously held in the Merging Fund.

Any accrued income relating to the Merging Fund's shares at the time of the Merger will be included in the calculation of the final net asset value per share of the Merging Fund and will be accounted for after the Merger in the net asset value per share of the Receiving Fund. The Receiving Fund will not bear any additional income, expenses and liabilities attributable to the Merging Fund accruing after the Effective Date.

You will thus become a shareholder of the Receiving Fund, in the share class which corresponds to your current holding in the Merging Fund. A full summary of which Merging Fund share classes will be merged into which Receiving Fund share classes can be found under section “Existing and New Share Class Mapping” in the Appendix.

The first dealing date for your shares in the Receiving Fund will be 17 April 2020, the related deal cut-off for this dealing day being 5.00 p.m. Hong Kong time on the dealing day.

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Rights of shareholders to redeem/switch

If you do not wish to hold shares in the Receiving Fund from the Effective Date, you have the right to redeem your holding in the Merging Fund or to switch into another Schroder fund authorized by the Securities and Futures Commission ("SFC")2 (including any other SFC-authorized sub-funds within the Schroder International Selection Fund or other SFC-authorized funds managed by Schroders) at any time up to and including the dealing day on 9 April 2020.

The Representative will execute your redemption or switch instructions in accordance with the provisions of the Prospectus free of charge, although in some countries local paying agents, correspondent banks or similar agents may charge transaction fees. Local agents may also have a local deal cut-off which is earlier than that described above, so please check with them to ensure that your instructions reach the Representative in Hong Kong before the 5.00 p.m. Hong Kong time deal cut-off on 9 April 2020.

Subscriptions or switches into the Merging Fund from new investors will not be accepted after deal cut-off on . To allow sufficient time for changes to be made to regular savings plans and similar facilities, subscriptions or switches into the Merging Fund will be accepted from existing investors until 9 April 2020 (deal cut-off at 5.00 p.m. Hong Kong time on 9 April 2020).

Tax status

The conversion of shares at the time of the Merger and / or your redemption or switch of shares prior to the Merger might affect the tax status of your investment. We therefore recommend that you seek independent professional advice in these matters.

Generally, the Merger should not give rise to any Hong Kong tax implications for Hong Kong shareholders. In particular, any capital gain, derived by Hong Kong shareholders as a result of the Merger should not in general be subject to Hong Kong profits tax. If any gain is derived by certain types of shareholders (for instance, dealers in securities, financial institutions and insurance companies carrying on a trade or business in Hong Kong) on the Merger, there is a higher chance that the Inland Revenue Department of Hong Kong would question whether the gain, if any, derived by these shareholders is indeed capital in nature. If the gain is considered to be trading gain rather than capital gain, it would be chargeable to profits tax (which is currently imposed at a rate of 16.5% on corporations and 15% on unincorporated businesses including individuals), if the amount is regarded as arising in or derived from Hong Kong (i.e., Hong Kong sourced profits). There is currently no general turnover, sales or value-added tax in Hong Kong. The Merger should not attract any Hong Kong stamp duty given that the share registers of both the Merging Fund and the Receiving Fund are not maintained in Hong Kong and thus the shares in the Merging Fund and the Receiving Fund should not fall within the definition of Hong Kong stocks. If you are in any doubt about your potential tax liability as a consequence of the Merger, you should recommend that you seek independent professional advice in these matters.

2 SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

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Further information

We advise shareholders to read the Receiving Fund's Hong Kong offering documents which are available free of charge at www.schroders.com.hk3 or upon request from the Representative. Articles of Incorporation and other material contracts and documents of the Schroder International Selection Fund are available for inspection at the Representative's registered office, located at Level 33, Two Pacific Place, 88 Queensway, Hong Kong during normal business hours.

An audit report will be prepared by the approved statutory auditor in relation to the Merger and will be available free of charge upon request from the Representative.

We hope that you will choose to remain invested in the Receiving Fund after the Merger. If you would like more information, please contact your usual professional adviser or Schroders Investor Hotline on (+852) 2869 6968.

Yours faithfully,

Chris Burkhardt Authorised Signatory

Nirosha Jayawardana Authorised Signatory

3 This website has not been reviewed by the SFC.

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Appendix

Key Features Comparison Table

The following is a comparison of the principal features of the Merging Fund and the Receiving Fund. Both are sub-funds of the Company. Full details are set out in the Prospectus and shareholders are also advised to consult the Product Key Facts Statement (the “KFS”) of the Receiving Fund.

Merging Fund Schroder International Selection Fund — Asia Pacific Cities Real Estate

Receiving Fund Schroder International Selection Fund — Global Cities Real Estate

Investment Objective and Policy

Investment Objective The fund aims to provide income and capital growth by investing in equity and equity related securities of real estate companies in Asia Pacific. Investment Policy The fund invests at least two-thirds of its assets in a concentrated range of equity and equity related securities of real estate companies in Asia Pacific with a focus on companies that invest in cities that the manager believes will exhibit continued economic growth, supported by factors such as strong infrastructure and supportive planning regimes. The fund typically holds fewer than 50 companies. The fund may invest directly in China B-Shares and China H-Shares and may invest less than 30% of its assets in China A-Shares through Stock Connect (as defined below). The fund is managed with reference to material environmental, social and governance factors. This means issues such as climate change, environmental performance, labour standards or board composition that could impact a company’s value may be considered in the assessment of companies. The fund is not subject to any limitation on the portion of its net asset value that may be invested in any country in Asia Pacific (including emerging market countries). The fund is not subject to any limitation on the market capitalisation of the companies that it

Investment Objective The fund aims to provide income and capital growth by investing in equity and equity related securities of real estate companies worldwide. Investment Policy The fund invests at least two-thirds of its assets in equity and equity related securities of real estate companies worldwide with a focus on companies that invest in cities that the manager believes will exhibit continued economic growth, supported by factors such as strong infrastructure and supportive planning regimes. The fund is managed with reference to material environmental, social and governance factors. This means issues such as climate change, environmental performance, labour standards or board composition that could impact a company’s value may be considered in the assessment of companies. The fund is not subject to any limitation on the portion of its net asset value that may be invested in any country (including emerging market countries) or region. The fund is not subject to any limitation on the market capitalisation of the companies that it may invest in. The fund may invest in money market instruments and hold cash. Under exceptional circumstances (e.g. market crash or major crisis), the fund may be invested temporarily up to 100% of its net asset value in liquid assets such as bank deposits,

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may invest in. The fund may invest in money market instruments and hold cash. Under exceptional circumstances (e.g. market crash or major crisis), the fund may be invested temporarily up to 100% of its net asset value in liquid assets such as bank deposits, certificates of deposit, commercial paper and treasury bills for cash flow management. The fund may invest directly in China A-Shares via the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect (collectively “Stock Connect”) (as further described in the section headed “Stock Connect” in the Hong Kong Covering Document). Indirect exposure to China A-Shares may also be sought for the fund through investment in financial instruments such as China market access products and other funds with China access through quota held by Qualified Foreign Institutional Investors or Renminbi Qualified Foreign Institutional Investors. The fund does not currently intend to invest 30% or more of the net asset value of the fund directly and indirectly in China A-Shares and China B-Shares.

Use of derivatives / investment in derivatives The fund’s net derivative exposure may be up to 50% of the fund’s net asset value. The fund may use derivatives with the aim of reducing risk or managing the fund more efficiently. Derivatives can be used for instance to create market exposures through equity, currency, volatility or index related financial derivative instruments and include over-the-counter and/or exchange traded options, futures, contracts for difference, warrants, swaps, forward

certificates of deposit, commercial paper and treasury bills for cash flow management. Use of derivatives / investment in derivatives The fund’s net derivative exposure may be up to 50% of the fund’s net asset value. The fund may use derivatives with the aim of reducing risk or managing the fund more efficiently. Derivatives can be used for instance to create market exposures through equity, currency, volatility or index related financial derivative instruments and include over-the-counter and/or exchange traded options, futures, contracts for difference, warrants, swaps, forward contracts and/or a combination of the above.

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contracts and/or a combination of the above.

Investment Manager Schroder Investment Management Limited

Schroder Investment Management Limited

KFS risk disclosures 1. Equity investment risk 2. Property and real estate

companies securities risk 3. Concentrated sector 4. Risk related to investment in the

People’s Republic of China 5. Risks related to investments via

Stock Connect 6. Risks related to investments in

China market access products 7. Risk related to investments in

other funds with China access 8. Financial derivatives instruments

(“FDI”) 9. Concentration risk 10. Emerging and less developed

markets 11. Smaller companies risk 12. Risk relating to distributions 13. Currency risks

1. Equity investment risk 2. Property and real estate

companies securities risk 3. Concentrated sector 4. Financial derivatives instruments

(“FDI”) 5. Concentrated geographical

locations 6. Emerging and less developed

markets 7. Smaller companies risk 8. Risk relating to distributions 9. Risks relating to hedging and the

hedged classes 10. Currency risks

Profile of the Typical Investor

The Fund may be suitable for Investors who are more concerned with maximising long term returns than minimising possible short term losses.

The Fund may be suitable for Investors who are more concerned with maximising long term returns than minimising possible short term losses.

Fund Category Specialist Equity Fund Specialist Equity Fund

Fund Currency USD USD

Launch Date 27 October 2006 31 October 2005

Dividend Policy A and A1 Accumulation share class – Dividend will not be distributed but will be reinvested into the Fund

A and A1 Accumulation share class – Dividend will not be distributed but will be reinvested into the Fund

Total Fund Size as at 7 February 2020

USD 19.9m USD 380.2m

Dealing Cut-off Time and Settlement

Orders must reach the Representative before 5.00 p.m. Hong Kong time on

Orders must reach the Representative before 5.00 p.m. Hong Kong time on

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Periods for Subscriptions and Redemptions

the dealing day to be executed that day.

The settlement periods for subscription and redemption are within three business days following a dealing day.

the dealing day to be executed that day.

The settlement periods for subscription and redemption are within three business days following a dealing day.

Risk Management Method

Commitment Commitment

Minimum Investment A and A1 share classes: Initial – EUR 1,000 or USD 1,000 (or equivalent);

Subsequent investment – EUR 1,000 or USD 1,000 (or equivalent)

A and A1share classes:

Initial – EUR 1,000 or USD 1,000(or equivalent);

Subsequent investment – EUR 1,000 or USD 1,000 (or equivalent)

Initial Charge A: up to 5.00% of the total subscription amount (equivalent to 5.26315% of the Net Asset Value per Share)

A1: up to 4.00% of the total subscription amount (equivalent to 4.16667% of the Net Asset Value per Share)

A: up to 5.00% of the total subscription amount (equivalent to 5.26315% of the Net Asset Value per Share)

A1: up to 4.00% of the total subscription amount (equivalent to 4.16667% of the Net Asset Value per Share)

Management Fees by Share Class

A: 1.50% per annum

A1: 1.50% per annum

A: 1.50% per annum

A1: 1.50% per annum

Performance Fees None None

OnGoing Charge A: 1.92%% per annum A1: 2.42% per annum The ongoing charges figure is based on the annualised expenses for the interim period ended 30 June 2019. This figure may vary from year to year.

A: 1.85% per annum A1: 2.35% per annum The ongoing charges figure is based on the annualised expenses for the interim period ended 30 June 2019. This figure may vary from year to year.

Existing and New Share Class Mapping

Existing Share Class Held New Share Class to be Held

A Accumulation USD A Accumulation USD

A Accumulation EUR A Accumulation EUR

A1 Accumulation USD A1 Accumulation USD

The Merger will also apply to any additional share classes launched prior to the Effective Date.



Tel: +352 341 342 202 Fax:+352 341 342 342



9 March 2020

Dear Shareholder,

Schroder International Selection Fund — Global Cities Real Estate

We are writing to advise you that a fund in which you are invested is due to receive assets from another fund through a merger. This merger is not expected to have any impact on your investment. The size of the merging fund represents only 5.3% of the fund in which you are invested as at 7 February 2020. We have provided full details of this merger below.

On 16 April 2020 (the "Effective Date"), Schroder International Selection Fund — Asia Pacific Cities Real Estate (the "Merging Fund") will merge into Schroder International Selection Fund — Global Cities Real Estate (the “Receiving Fund”). Dealing in the Receiving Fund will not be interrupted by the merger.

The decision to merge the sub-funds was taken by the board of directors of Schroder International Selection Fund (respectively the “Board” and the “Company”).

Upon review, the Board of the Company concluded that, given the relative size of the Merging Fund and the similarity in investment approach between the Merging Fund and Receiving Fund, shareholders in the Merging Fund will benefit from a merger with the Receiving Fund. The Merging Fund has approximately USD 20 million under management as of 7 February 2020 while the Receiving Fund has approximately USD 380 million under management as of the same date. Shareholders in the Merging Fund will be merged into a sub-fund which, the Board believes, will give shareholders access to a similar investment strategy with a similar risk profile.

Where assets under management are low it can become difficult to implement the investment policy in a cost effective manner and costs to clients can increase. On this basis a merger into the Receiving Fund offers investors an alternative fund with appropriate scale and a broadly similar investment approach; both funds focus on urbanisation and utilise the same investment process and proprietary real estate databases. The investment exposure of both the Merging Fund and the Receiving Fund offers some commonality across companies and regions; ~25% of the Receiving Fund is invested in the Asia Pacific Region and ~23% of the Receiving Fund is invested in companies also held in the Merging Fund.

The Board has therefore decided, in accordance with Article 5 of the articles of incorporation of the Company (the Articles) and the provisions of the prospectus of the Company and in the interest of both funds’ shareholders, to merge the Merging Fund into the Receiving Fund.

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This notice is required by Luxembourg law and is being sent to you for informational purposes only.

Impact on the Receiving Fund’s investment portfolio and performance

The Receiving Fund will continue to be managed in line with its investment objective and strategy after the merger. Prior to the merger the Merging Fund will dispose of any assets that are not in line with the Receiving Fund's investment portfolio or which cannot be held due to investment restrictions. The Receiving Fund's investment portfolio will not need to be rebalanced before or after the merger. Consequently the Board does not foresee any material impact on the Receiving Fund's investment portfolio or performance as a result of the merger.

Expenses and costs of the merger

The expenses incurred in the merger, including the legal, audit and regulatory charges, will be borne by the Company's management company, Schroder Investment Management (Europe) S.A. (the “Management Company”). The Merging Fund will bear the market-related transaction costs associated with the disposal of any investments that are not in line with the Receiving Fund.

Effective date and rights of shareholders

The merger will be implemented on 16 April 2020 (the "Effective Date"). As a shareholder in the Receiving Fund you have the right to redeem your holding or switch it into the same share class of one or more of the Company's other sub-funds authorized by the Securities and Futures Commission ("SFC")1 prior to the merger. If you do not wish to continue to hold shares in the Receiving Fund after the merger you may at any time up to and including deal cut-off at 5:00 p.m. Hong Kong time on 1 April 2020 send your instructions to redeem or switch your shares for execution prior to the merger. The Hong Kong Representative of the Company, Schroder Investment Management (Hong Kong) Limited (the “Representative”) will carry out your instructions free of charge in accordance with the provisions of the prospectus of the Company. Please note that some distributors, paying agents, correspondent banks or similar agents may charge you transaction fees. Please also note that they might have a local deal cut-off which is earlier than the Receiving Fund's cut-off time in Hong Kong, and we recommend that you check with them to ensure that your instructions reach the Representative in Hong Kong before the deal cut-off given above.

Redemption and / or switching of shares may affect the tax status of your investment. We therefore recommend you to seek independent professional advice in these matters.

Exchange ratio and treatment of accrued income

On the Effective Date, the net assets and liabilities of the Merging Fund, including any accrued income, will be calculated in its final net asset value per share for each share class and shareholders in the Merging Fund will be issued shares of an equal amount by value of shares in the Receiving Fund at the net asset value per share calculated on that day or at the initial issue price for the corresponding share class. Thereafter accrued income will be accounted for on an on-going basis in the net asset value per share for each share class in the Receiving Fund. Any income accrued in the Receiving Fund prior to the merger will not be affected.


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Further information

Luxembourg law requires that an audit report to be prepared by the Company's approved statutory auditor in relation to the merger. Such audit report will be available free of charge upon request from the Representative.

We hope that you will choose to remain invested in the Receiving Fund after the merger. If you would like more information, or have any questions about the merger, please contact your usual professional adviser or Schroders Investor Hotline on (+852) 2869 6968.

Yours faithfully,





Tel: +352 341 342 202 Fax:+352 341 342 342


IMPORTANT: This letter is important and requires your immediate attention. If you have any questions about the content of this letter, you should seek independent professional advice. The directors of Schroder International Selection Fund accept full responsibility for the accuracy of the information contained in this letter and confirm, having made all reasonable enquiries, that to the best of our knowledge and belief there are no other facts the omission of which would make any statement misleading.

21 February 2020

Dear Shareholder,

Schroder International Selection Fund – changes to the distribution policy of certain share classes

Following a recent review, the board of directors of Schroder International Selection Fund (the "Company") has decided to change the distribution policy for some share classes (the "Share Classes") of Emerging Multi-Asset Income and Global Bond. The distribution frequency of these Share Classes will not change, but the fixed amounts paid out will reduce. The affected Share Classes and the changes to the distribution policy are detailed in the appendix to this letter.

This change will come into effect for the distribution due to be paid on 7 April 2020 (the “Effective Date”) and will apply to all distributions going forward.

The Share Class fees will remain unchanged and the cost of making these changes including regulatory and shareholder communication costs will be borne by Schroder Investment Management (Europe) S.A. (the Fund’s management company).

We hope that you will choose to remain invested in the Fund following these changes, but if you do wish to redeem your holding in the Fund or to switch into another of the Company's sub-funds authorized by the Securities and Futures Commission1 before the changes become effective you may do so at any time up to and including deal cut-off at 5:00 p.m. Hong Kong time on 24 March 2020.

We will execute your redemption or switch instructions in accordance with the provisions of the Company's prospectus, free of charge, although in some countries local paying agents, correspondent banks or similar agents might charge transaction fees. Local agents might also have a local deal cut-off which is earlier than that described above, so please check with them to ensure that your instructions reach the Hong Kong Representative of the Company, Schroder Investment Management (Hong Kong) Limited (the “Representative”) in Hong Kong before the deal cut-off at 5:00 p.m. Hong Kong time on 24 March 2020.


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If you have any questions or would like more information, please contact your usual professional advisor or the Representative at Level 33, Two Pacific Place, 88 Queensway, Hong Kong or calling the Schroders Investor Hotline on (+852) 2869 6968.

Yours faithfully,



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Tel: +352 341 342 202 Fax:+352 341 342 342



3 January 2020

Dear Shareholder,

Schroder International Selection Fund – exposure to Asset Backed Securities (ABS) and Mortgage Backed Securities (MBS)

The board of directors of Schroder International Selection Fund (the "Company") has decided to change the investment policy of the funds listed in the appendix (the “Funds”) with effect from 19 February 2020 (the “Effective Date”).

From the Effective Date the investment policy of each of the Funds will change to increase the amount that they can invest in ABS and MBS to up to 20% of their assets. We believe this change can improve the overall risk and return characteristics of the Funds by offering protection against rising interest rates and diversifying the holdings from traditional credit.

All other key features of the Funds and their risk profiles will remain the same. There will be no change in the Funds’ investment style or their investment philosophy following this change.

We hope that you will choose to remain invested in the Fund(s) following these changes, but if you do wish to redeem your holding in the Fund(s) or to switch into another of the Company's sub-funds authorized by the Securities and Futures Commission1 before the Effective Date you may do so at any time up to and including deal cut-off at 5:00 p.m. Hong Kong time on 18 February 2020. We will execute your redemption or switch instructions in accordance with the provisions of the Company’s prospectus, free of charge, although in some countries local paying agents, correspondent banks or similar agents might charge transaction fees. Local agents might also have a local deal cut-off which is earlier than that described above, so please check with them to ensure that your instructions reach the Hong Kong Representative of the Company, Schroder Investment Management (Hong Kong) Limited (the “Representative”) in Hong Kong before the deal cut-off at 5:00 p.m. Hong Kong time on 18 February 2020.


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Any expenses incurred directly as a result of making this change will be borne by Schroder Investment Management (Europe) S.A., the Company’s management company.


Yours faithfully,



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Appendix

Funds affected by the change

Schroder International Selection Fund – Emerging Multi-Asset Income

Schroder International Selection Fund – Global Multi-Asset Income

Schroder International Selection Fund – Multi-Asset Growth and Income



Tel: +352 341 342 202 Fax:+352 341 342 342



3 January 2020

Dear Shareholder,

Schroder International Selection Fund – use of derivatives for investment gains

The board of directors of Schroder International Selection Fund (the "Company") has decided to change the investment policy of the sub-funds listed in the appendix (the “Funds”) with effect from 19 February 2020 (the "Effective Date"). The Funds’ investment policies currently include the ability to invest in derivatives with the aim of achieving investment gains. The Funds do not require this ability, and so the Company has decided to remove this wording from the Effective Date. This means that from the Effective Date, the Funds will not be permitted to invest in derivatives with the aim of achieving investment gains. The Funds will retain the ability to invest in derivatives for the purpose of reducing risk or managing the Funds more efficiently.

All other key features of the Funds and their risk profiles will remain the same. There will be no change in the Funds’ investment style or their investment philosophy following this change.

We hope that you will choose to remain invested in the Fund(s) following these changes, but if you do wish to redeem your holding in the Fund(s) or to switch into another of the Company's sub-funds authorized by the Securities and Futures Commission1 before the Effective Date you may do so at any time up to and including deal cut-off at 5:00 p.m. Hong Kong time on 18 February 2020. We will execute your redemption or switch instructions in accordance with the provisions of the Company’s prospectus, free of charge, although in some countries local paying agents, correspondent banks or similar agents might charge transaction fees. Local agents might also have a local deal cut-off which is earlier than that described above, so please check with them to ensure that your instructions reach the Hong Kong Representative of the Company, Schroder Investment Management (Hong Kong) Limited (the “Representative”) in Hong Kong before the deal cut-off at 5:00 p.m. Hong Kong time on 18 February 2020.



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Yours faithfully,



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Appendix

Funds affected by the change

Schroder International Selection Fund – EURO Equity

Schroder International Selection Fund – European Large Cap

Schroder International Selection Fund – Global Climate Change Equity

Schroder International Selection Fund – Global Cities Real Estate

Schroder International Selection Fund – Global Equity

Schroder International Selection Fund – Global Equity Alpha

Schroder International Selection Fund – QEP Global Quality



Tel: +352 341 342 202 Fax:+352 341 342 342



3 January 2020

Dear Shareholder,

Schroder International Selection Fund – US Large Cap

The board of directors of Schroder International Selection Fund (the "Company") has decided to change the investment policy of Schroder International Selection Fund – US Large Cap (the “Fund”) with effect from 19 February 2020 (the "Effective Date").

The Fund’s investment policy currently includes the ability to invest in derivatives with the aim of achieving investment gains. The Fund’s manager no longer requires this ability, and so the Company has decided to remove this wording. This means that from the Effective Date, the Fund will not be permitted to invest in derivatives with the aim of achieving investment gains. The Fund will retain the ability to invest in derivatives for the purpose of reducing risk or managing the Funds more efficiently.

In addition, wording will be added to describe how the investment process of the Fund takes into consideration environmental, social, and governance factors.

From the Effective Date, the Fund’s investment policy, which is contained in the Company’s prospectus, will change from:

“Investment Policy

The Fund invests at least two-thirds of its assets in the equity and equity related securities of large-sized US companies. Large-sized companies are companies which, at the time of purchase, are considered to be in the top 85% by market capitalisation of the US equities market.

The Fund may invest in the equity securities of non-US companies provided they are listed on one of the major North American stock exchanges.

The Fund may use derivatives with the aim of achieving investment gains, reducing risk or managing the Fund more efficiently. The Fund may also invest in money market Investments and hold cash.

To:

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“Investment Policy

The Fund invests at least two-thirds of its assets in the equity and equity related securities of large-sized US companies. Large-sized companies are companies which, at the time of purchase, are considered to be in the top 85% by market capitalisation of the US equities market.

The Fund may invest in the equity securities of non-US companies provided they are listed on one of the major North American stock exchanges.

The Fund is managed with reference to material environmental, social and governance factors. This means issues such as climate change, environmental performance, labour standards or board composition that could impact a company’s value may be considered in the assessment of companies.

The Fund may use derivatives with the aim of reducing risk or managing the Fund more efficiently. The Fund may also invest in money market Investments and hold cash.”

All other key features of the Fund will remain the same. There will be no change to the way the Fund is managed, or to its investment style, investment philosophy or risk profile following this change.

We hope that you will choose to remain invested in the Fund following these changes, but if you do wish to redeem your holding in the Fund or to switch into another of the Company's sub-funds authorized by the Securities and Futures Commission1 before the Effective Date you may do so at any time up to and including deal cut-off at 5:00 p.m. Hong Kong time on 18 February 2020. We will execute your redemption or switch instructions in accordance with the provisions of the Company’s prospectus, free of charge, although in some countries local paying agents, correspondent banks or similar agents might charge transaction fees. Local agents might also have a local deal cut-off which is earlier than that described above, so please check with them to ensure that your instructions reach the Hong Kong Representative of the Company, Schroder Investment Management (Hong Kong) Limited (the “Representative”) in Hong Kong before the deal cut-off at 5:00 p.m. Hong Kong time on 18 February 2020.



Yours faithfully,






Tel: +352 341 342 202 Fax:+352 341 342 342



14 November 2019

Dear Shareholder,

Schroder International Selection Fund – Global High Yield (the “Fund”) - change to the distribution policy of AUD Hedged A1 Distribution MVC (the “Share Class”)

Following a recent review, the board of directors of Schroder International Selection Fund (the "Company") has decided to change the distribution policy of this Share Class of the Fund.

Currently the Share Class distributes a monthly variable rate with currency carry*. With effect from the Effective Date the distribution policy of the Share Class will change and it will distribute a monthly fixed rate of 6% with currency carry*.

This change will come into effect for the distribution due to be paid on 17 January 2020 (the “Effective Date”) and will apply to all distributions going forward.

The fees and the distribution frequency of the Share Class will not change.

* This refers to the premium or discount that may apply to the distribution. Distributions may include a premium when the interest rate of a currency hedged share class is higher than the Fund's base currency interest rate. Consequently when the interest rate of a currency hedged share class is lower than the Fund's base currency interest rate, the dividend may be discounted. The level of premium or discount is determined by differences in interest rates and is not part of the Fund's investment objective or investment policy.

The costs of making this change including regulatory and shareholder communication costs will be borne by Schroder Investment Management (Europe) S.A. which is the Company's management company.

We hope that you will choose to remain invested in the Share Class following these changes, but if you wish to redeem your holding in the Share Class or to switch into another of the Company's sub-funds authorized by the Securities and Futures Commission1 before the Effective Date, you may do so at any time up to and including deal cut-off at 5:00 p.m. Hong Kong time on 17 December 2019. We will execute your redemption or switch instructions in accordance with the provisions of the Company's prospectus, free of charge, 1 SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

although in some countries local paying agents, correspondent banks or similar agents might charge transaction fees. Local agents might also have a local deal cut-off which is earlier than that described above, so please check with them to ensure that your instructions reach the Hong Kong Representative of the Company, Schroder Investment Management (Hong Kong) Limited (the “Representative”) in Hong Kong before the deal cut-off at 5:00 p.m. Hong Kong time on 17 December 2019.


Yours faithfully,



Schroder Investment Management (Europe) S.A. 5, rue Höhenhof, L-1736 Senningerberg

Grand Duchy of Luxembourg

www.schroders.com R.C.S. Luxembourg – B. 37 799 For your security telephone conversations may be recorded

IMPORTANT: This letter is important and requires your immediate attention. If you have any questions about the content of this letter, you should seek independent professional advice. Schroder Investment Management (Europe) S.A., as the Management Company of the fund(s) in which you are invested, accepts full responsibility for the accuracy of the information contained in this letter and confirms, having made all reasonable enquiries, that to the best of its knowledge and belief there are no other facts the omission of which would make any statement misleading.

17 June 2019

Dear Shareholder,

Important changes to our fund administration activities

We recently carried out a comprehensive review of fund administration across the Schroders group, specifically in relation to the management of transfer agency (“TA”) activities. This resulted in a decision to delegate our fund administration activities to HSBC. HSBC has been a strategic partner of Schroders for several years, providing a range of other fund services. This decision will extend our partnership with HSBC across our fund administration services globally. The aim is to increase consistency in how we manage our services, which will ultimately add further value to our clients.

The delegation of TA activities by Schroder Investment Management (Europe) S.A. (“SIM EU”), the management company of the fund(s) in which you are invested, to HSBC France, Luxembourg Branch, will take effect from 1 July 2019.

The delegation of TA activities does not affect the investment management of the funds, their fee structure or your ownership of units, therefore the purpose of this letter is informational only. You are not required to take any action in response to this letter. The costs of making this change, including regulatory and shareholder communication costs, will not be borne by investors.

The contact details you use are unchanged.

There will be no other changes to existing communication or electronic trading channels due to this change.

If you have any questions or would like more information, please contact your usual professional advisor or Schroder Investment Management (Hong Kong) Limited at Level 33, Two Pacific Place, 88 Queensway, Hong Kong or calling the Schroders Investor Hotline on (+852) 2869 6968.

Yours faithfully,



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HONG KONG COVERING DOCUMENTSCHRODER INTERNATIONAL SELECTION FUND

IMPORTANT: This document must be read in conjunction with the Prospectus of Schroder International Selection Fund (the “Company”) dated May 2019 (the “Prospectus”) and the Product Key Facts Statements of the Funds (as defined below). Investors should refer to the Prospectus for full information and terms defined therein have the same meaning in this document. Investors should carefully consider the risks involved before making their choice of investment. Investors should make their own risk assessment.

WARNING: In relation to the sub-funds as set out in the Prospectus, only the Company and the following sub-funds (each a “Fund” and collectively the “Funds”) are authorized by the Securities & Futures Commission of Hong Kong (the “SFC”) pursuant to Section 104 of the Securities and Futures Ordinance (“SFO”) and hence may be offered to the public of Hong Kong. The SFC authorization is not a recommendation or endorsement of the Funds nor does it guarantee the commercial merits of the Funds or their respective performance. It does not mean the Funds are suitable for all Investors nor is it an endorsement of their suitability for any particular Investor or class of Investors.

All China EquityAsia Pacific Cities Real Estate#Asian Bond Total ReturnAsian Dividend Maximiser*Asian Equity YieldAsian Local Currency BondAsian OpportunitiesAsian Smaller CompaniesAsian Total ReturnBRIC (Brazil, Russia, India, China)China OpportunitiesEmerging AsiaEmerging EuropeEmerging MarketsEmerging Markets Debt Absolute ReturnEmerging Multi-Asset IncomeEURO BondEURO Corporate BondEURO EquityEURO Government BondEURO Liquidity (This is not a money market fund in Hong Kong)∆EURO Short Term BondEuropean Dividend Maximiser*European Large CapEuropean Smaller CompaniesEuropean ValueFrontier Markets EquityGlobal BondGlobal Cities Real Estate#Global Climate Change EquityGlobal Corporate BondGlobal Credit Duration HedgedGlobal Credit IncomeGlobal Dividend Maximiser*Global Emerging Market OpportunitiesGlobal EnergyGlobal EquityGlobal Equity AlphaGlobal Equity YieldGlobal GoldGlobal High YieldGlobal Inflation Linked BondGlobal Multi-Asset IncomeGlobal Smaller Companies

# The Fund is not authorized by the SFC under the Code on Real Estate Investment Trusts.* The name “Dividend Maximiser” refers to the investment objective of the fund to enhance the fund dividend by generating extra income

from selling covered call options on the underlying equity portfolio and this may reduce the potential capital growth and future income of the fund. It does not suggest that the manager would aim at seeking the highest possible dividends for the fund.

∆ In Hong Kong, the Fund is not authorized as money market fund under the SFC’s Code of Unit Trusts and Mutual Funds. The remaining maturity of the instruments purchased by the Fund and the weighted average maturity/life of the Fund’s portfolio do not meet the limits applicable to money market fund in Hong Kong. The Fund may be more negatively impacted by changes in interest rates and subject to higher credit and liquidity risks.

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Global Sustainable GrowthGlobal Target ReturnGreater ChinaHong Kong Dollar BondHong Kong EquityIndian EquityJapanese EquityJapanese OpportunitiesJapanese Smaller CompaniesLatin AmericanMiddle EastMulti-Asset Growth and IncomeQEP Global Active ValueQEP Global QualityStrategic BondTaiwanese EquityUK EquityUS Dollar BondUS Dollar Liquidity (This is not a money market fund in Hong Kong)∆US Large CapUS Small & Mid Cap EquityUS Smaller Companies

Please note that the Prospectus is a global offering document and therefore also contains information of the following sub-funds which are not authorized by the SFC:

All China Credit IncomeAlternative Risk PremiaAsia Pacific ex-Japan EquityAsian Convertible BondAsian Credit OpportunitiesAsian Long Term ValueChina ACommodityDynamic Indian Income BondEmerging Market BondEmerging Market Corporate Bond (to be renamed as “Emerging Markets Hard Currency” on 3 September 2019)Emerging Markets Equity AlphaEmerging Markets TurnaroundEURO Credit Absolute ReturnEURO Credit ConvictionEURO High YieldEuropean Alpha Absolute ReturnEuropean Alpha FocusEuropean Equity Absolute ReturnEuropean Equity YieldEuropean Market NeutralEuropean OpportunitiesEuropean Special SituationsEuropean Sustainable Absolute ReturnEuropean Sustainable EquityFlexible RetirementGlobal Conservative Convertible BondGlobal Convertible BondGlobal Credit Income Short DurationGlobal Credit ValueGlobal DisruptionGlobal Diversified GrowthGlobal Emerging Markets Smaller CompaniesGlobal Energy TransitionGlobal High Income BondGlobal Multi-Asset BalancedGlobal Multi CreditGlobal Multi-Factor EquityGlobal RecoveryGlobal Sustainable Convertible BondGlobal Unconstrained BondHealthcare InnovationHorizon Global EquityIndian Opportunities

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Italian EquityJapan DGFJapan Deep ValueMulti-Asset PIR ItaliaMulti-Asset Total ReturnMulti-Manager DiversityQEP Global Active Value (Hedged)QEP Global BlendQEP Global CoreQEP Global Emerging MarketsQEP Global Equity Market NeutralQEP Global ESGQEP Global ESG ex Fossil FuelsQEP Global Value PlusRMB Fixed Income (to be renamed as “China Local Currency Bond” on 13 June 2019)Securitised CreditStrategic BetaStrategic CreditSustainable Multi-Factor EquitySwiss EquitySwiss Equity OpportunitiesSwiss Small & Mid Cap EquityUK Alpha IncomeWealth Preservation

No offer shall be made to the public of Hong Kong in respect of the above unauthorized sub-funds. The issue of the Prospectus was authorized by the SFC only in relation to the offer of the above SFC-authorized sub-funds to the public of Hong Kong. Intermediaries should take note of this restriction.

This document has been prepared for the intention of Investors residing in Hong Kong and with a view to comply with the requirements of the SFC.

Investors should note that investment in the Funds involves risk. These risks may include or relate to, among others, equity market, bond market, foreign exchange, interest rate, credit, market volatility and political risks and any combination of these and other risks. Investment in the Funds is not in the nature of a deposit in a bank account and is not protected by any government, government agency or other guarantee scheme which may be available to protect the holder of a bank deposit account. None of the Management Company or any service providers to the Company or any of their respective subsidiaries, affiliates, associates, agents or delegates, guarantees the performance or any future return of the Funds. Please read the section headed “Risks of Investment” in this document and the Prospectus for more details on the risk factors applicable to the Company and the Funds.

There is no assurance that the investment objective of the Funds will be achieved. Past performance is not necessarily a guide to future performance and units should be regarded as a medium to long-term investment. Investment in the Funds should not be the sole or principal component of any investment portfolio.

The price of Shares of the Company and the income from them may go down as well as up and an Investor may not get back the amount invested.

If you are in doubt about the contents of the Prospectus or this document, please seek independent professional financial advice.

Hong Kong Representative

The Hong Kong Representative of the Company in respect of the Funds is Schroder Investment Management (Hong Kong) Limited, Level 33, Two Pacific Place, 88 Queensway, Hong Kong (the “Representative”).

Types of share available in Hong Kong

Generally, only ‘A’ Shares, ‘A1’ Shares and ‘D’ Shares are available for sale to the public in Hong Kong. These Share Classes, where available, may also be offered in EUR, USD, GBP, JPY, HKD, AUD, CHF, SGD, RMB and such other currencies may be from time to time determined by the Directors. Where offered in a currency other than the Fund Currency, a Share Class will be designated as such. ‘A1’’ and ‘D’ Shares will only be available to Investors who at the time the relevant subscription order is received are customers of certain Distributors appointed specifically for the purpose of distributing the ‘A1’ and ‘D’ Shares and only in respect of those Funds for which distribution arrangements have been made with such Distributors. The Representative will provide a full list of shares classes with currency denomination that are available for sale to the public in Hong Kong, upon request of an Investor.

Registered Shares are evidenced by entries in the Company’s register and are represented by a contract note. Shareholders should, therefore, be aware of the importance of ensuring that the Management Company is informed of any change to the registered details.

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Procedure for applications by Hong Kong Investors

Applications may be made to the Representative on a Hong Kong business day, a day on which banks in Hong Kong are normally open for business, excluding Saturday. Application forms may be sent through an Investor’s investment adviser or other Distributor, or may be sent directly to the Representative. The Representative will forward applications to the Management Company promptly. Applications to the Representative should be made on and in accordance with the instructions on the application form available from the Representative.

Applications sent to the Representative must be received by it no later than 5:00 p.m. (Hong Kong time) on a Hong Kong business day if they are to be forwarded to the Management Company in Luxembourg on that day. Applications received after 5:00 p.m. (Hong Kong time) will be forwarded to the Management Company on the next Hong Kong business day. Investors should note that while they may submit applications by fax, the original application form should still be signed and posted as this will be required. Investors are reminded that if they choose to send the application by fax, they bear their own risk of application not being received by the Representative. Investors should, therefore, for their own benefit confirm with the relevant person the receipt of the application.

For applications that are sent through an investment adviser or other Distributor, Investors should note that such investment adviser or Distributor may have an earlier cut-off time.

No money should be paid to any intermediary in Hong Kong who is not licensed or registered to carry on Type 1 regulated activity under Part V of the SFO.

Applications can only be accepted by the Management Company and the issuance of Shares will be based on the relevant Net Asset Value per Share when the order is received by the Management Company.

Contract notes, confirmation of ownership documents, cheques, and other documents sent by post will be at risk of the person(s) entitled thereto and will be sent to the address of the applicant (or that of the first-named applicant) as set out in the application.

Payments to and from the Shareholder should normally be made in the currency of the relevant Share Class. However, if the Shareholder selects a currency other than the currency of the relevant Share Class for any payments to or from the Company, this will be deemed to be a request by the Shareholder to the Management Company acting on behalf of the Company to provide a foreign exchange service to the Shareholder in respect of such payment. Details of the charge applied to foreign exchange transactions, which is retained by the Management Company, are available upon request from the Representative. The cost of currency conversion and other related expenses will be borne by the relevant Investor. Neither the Company nor the Management Company nor the Representative takes any responsibility for the rate of exchange obtained. Changes in the rate of exchange between the currency of denomination and the currency of an applicant’s subscription monies may cause the value of an Investor’s investment to diminish or increase.

Monies can be paid either by telegraphic transfer to the relevant accounts as set out in the application form or may be paid by cheque in accordance with instructions on the application form. It should be noted that there may be delay in the receipt of cleared funds if payment is by cheque or banker’s draft compared to payment by telegraphic transfer. The applicant should quote the full name of the Fund(s) in the remittance instruction. An applicant may be required to compensate the Company for any loss resulting from late settlement.

Redemption and Switching of Shares

Shareholders may submit redemption or switching requests to the Representative. Redemption and switching requests sent to the Representative must be received by it no later than 5:00 p.m. (Hong Kong time) on a Hong Kong business day if they are to be forwarded to the Management Company in Luxembourg on that day. Redemption and switching requests received after 5:00 p.m. (Hong Kong time) will be forwarded to the Management Company on the next Hong Kong business day.

A redemption or switching request by a registered Shareholder wishing to have all or any of his Shares redeemed or switched should be in writing or by fax sent to the Representative or direct to the Management Company. Applications should indicate the relevant Fund(s) and number of Shares to be redeemed or switched and should state the name in which they are registered. Investors are reminded that if they choose to send notices of redemption or switch by fax, they bear their own risk of notices not being received by the Representative. Investors should, therefore, for their own benefit confirm with the relevant person the receipt of the notices.

For redemption or switching requests that are sent through an investment adviser or other Distributor, Shareholders should note that such investment adviser or Distributor may have an earlier cut-off time.

Confirmations of transactions will normally be dispatched by the Representative on the next Business Day after Shares are switched or redeemed. Shareholders should promptly check these confirmations to ensure that they are correct in every detail. Delay in providing the relevant documents may cause the instruction to be delayed or lapse and be cancelled.

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Redemption proceeds will normally be paid in the currency of the relevant Share Class. However, at the request of the Shareholder, a currency exchange service for redemptions is provided to the Shareholder by the Management Company acting on behalf of the Company. Details of the charge applied to foreign exchange transactions, which is retained by the Management Company, are available upon request from the Representative. The cost of currency conversion and other related expenses will be borne by the relevant Investor. Changes in rates of exchange between the currency in which the relevant Fund(s) are denominated and the currency of a Shareholder’s redemption request may cause the value of a Shareholder’s investment to diminish or increase. Payment will normally be made by bank transfer or telegraphic transfer, less expenses, to an account specified by the Shareholder within 3 Business Days from the date of redemption or, if later, the receipt in Luxembourg of all properly completed documents from the Investor. In any event, payment will be made within 30 calendar days thereof.

Instructions to switch Shares between Share Classes denominated in different currencies will be accepted. A currency exchange service for such switches is provided by the Management Company acting on behalf of the Company. Details of the charge applied to foreign exchange transactions, which is retained by the Management Company, are available upon request from the Representative. The cost of currency conversion and other related expenses will be borne by the relevant Investor.

Subject to approval of the Directors, Shares in the Company may be redeemed at the request and consent of the Shareholder with payment by assets in kind held in the Company.

TRANSFERS The transfer of Shares may be effected by delivery to the Representative of a duly signed transfer form in appropriate form.

Dealing Day

The list of expected non-Dealing Days for the Funds is also available from the Representative on request and on the Schroder Internet site (www.schroders.com.hk).

Fees, Charges and Expenses

Shareholders of the Funds will be given one month’s prior notice should there be any increase in the investment management fee or imposition of any redemption charge, subject to regulatory approval, if required.

In certain countries, Investors may be charged with additional amounts in connection with the duties and services of local paying agents, correspondent banks or similar entities.

For currency hedged Share Classes of the Funds, a hedging charge of up to 0.03% per annum of the Net Asset Value per Share will be borne by the currency hedged Share Classes in relation to which the charge is incurred. The hedging charge will be payable to the Management Company, which provides the currency hedging service.

Any advertising or promotional activities in connection with the Funds will not be paid from the Funds’ property as long as the Funds are authorised in Hong Kong.

Neither the Investment Managers nor its associates will receive cash rebates from any broker in respect of transactions for account of the Funds as long as they are authorized in Hong Kong.

The costs of establishment and authorization of the Company and the Funds in Hong Kong have been fully amortized.

The Fund may enter into any transactions with the Management Company, the Investment Manager or the Depositary or with any of their affiliates, provided that, as long as the Funds are authorized in Hong Kong, such transactions are carried out as if effected on normal commercial terms negotiated at arm’s length and in compliance with Chapters 10.9 to 10.13 of the Code on Unit Trusts and Mutual Funds issued by the SFC.

The liability of the Shareholders is limited to their investment in the Fund(s).

Performance fee

Illustration: Assume that in the first performance period ended 31 December 2014, Net Asset Value per Share as at 31 December 2014 is $10 and no performance fee is paid during this period. Accordingly, the High Water Mark for the second performance period ending 31 December 2015 will be $10. Further assume the Net Asset Value per Share as at 31 December 2015 is $8. Since this is lower than the High Water Mark of $10, no performance fee is paid, and the commencement date for the third performance period will still be 1 January 2014 while the end date will be 31 December 2016, and the High Water Mark will remain at $10. If Net Asset Value per Share as at 31 December 2016 is higher than $10, performance fee will be paid to the Investment Manager, and the next performance period will commence on 1 January 2017.

The performance fee is set at 15% of the outperformance as defined in the Prospectus, and is payable yearly during the month immediately following the end of each calendar year.

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Total Performance Fee = Outperformance per Share x Average number of Shares in issue during the accounting year x 15%;

where:

Outperformance per Share = Outperformance of the Net Asset Value per Share over the greater of the High Water Mark or the Target Net Asset Value per Share (i.e. hypothetical Net Asset Value per Share, which is calculated in proportion to the % change in benchmark as defined below)

The performance fee model is based on the period to date performance of a Fund and the average number of shares in issue. Under this approach subscriptions and redemptions including large transactions are smoothed which may give rise to a different result than if the performance fee model was tailored to the performance experience of each individual shareholder over their period of investment. The average number of Shares in issue, as described in the 5th paragraph under the section headed “Performance Fees”, is used to smooth the effect of large changes in the number of Shares over the accounting year. In some extreme circumstances the use of average number of Shares in issue can have an effect on the performance fee payable by a Fund. For example, if at the end of a performance period there is a sudden large increase in the number of Shares combined with a strong outperformance of the Fund’s performance benchmark, this increase in average number of Shares may cause a higher or lower performance fee to be paid than would be the case if there was no change in the number of Shares over the period.

At the end of each accounting year, should there be positive accounting provision, as described in the 6th paragraph under the same section, made over the performance period, such accrued performance fee will be payable to the Investment Managers.

Illustration: Assume that on 2 September, the Net Asset Value per Share on the preceding Dealing Day (i.e. 1 September) is $15, Target Net Asset Value per Share is $13 and High Water Mark is $10. Assume average number of Shares over the period from the start of the accounting year to 2 September is 500,000. Performance fee accrued on 2 September will therefore be: $(15-13) x 500,000 x 15% = $150,000.

On 3 September, the Net Asset Value per Share on 2 September is $14. Assuming that the Target Net Asset Value per Share is still $13, the accounting provision made on 2 September will therefore be reduced by $1 x 500,000 x 15% = $75,000. In other words, the adjusted accrued performance fee of $(150,000-75,000) = $75,000 will be reflected in the Net Asset Value per Share. However, if the Net Asset Value per Share on 2 September is lower than the Target Net Asset Value per Share of $13, all of the provision of $150,000 made on 2 September will be returned to the Fund.

Performance fees are accrued on each valuation day in the event of outperformance, that is, if the increase in the Net Asset Value per Share exceeds the increase in the relevant benchmark and provided that the Net Asset Value per Share is higher than the High Water Mark. If the Net Asset Value per Share at redemption is below the High Water Mark, notwithstanding that Investors subscribed the Shares at a price lower than the Net Asset Value per Share at redemption, they will not bear a performance fee at the time of redemption. In the event of outperformance, notwithstanding that the Investors subscribed the Shares at a price higher than the Net Asset Value per Share at redemption, the Fund will still be accruing a performance fee as reflected in the price at which the Shares are redeemed.

Pooling and Co-management

Notwithstanding that the Funds may participate in pooling and co-management as described in more detail in the Prospectus, there is no current intention to do so for the account of the Funds. As long as the Funds are authorized in Hong Kong, each of the Funds may, subject to the SFC’s approval, participate in pooling or co-management by giving prior written notification to the relevant Shareholders and updating this document.

Rebate

As long as the Funds are authorized in Hong Kong, the Management Company and each of the Investment Managers may not obtain a rebate on any fees or charges levied by an Investment Fund or underlying fund or its management company.

RQFII regime

The following disclosures will apply to the relevant Funds which may invest directly in the People’s Republic of China (“PRC”) via the RQFII status of the relevant Investment Manager (i.e. RQFII Holder).

Under current regulations in the PRC, foreign investors (such as the Funds) may invest in certain eligible onshore PRC investments, in general, only through entities that have obtained status as a QFII or RQFII from the CSRC. The RQFII regime is governed by rules and regulations as promulgated by the mainland Chinese authorities, i.e., the CSRC, the SAFE and the People’s Bank of China (“PBOC”). Such rules and regulations may be amended from time to time.

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The Investment Manager of the Funds has obtained a RQFII licence in the PRC. The Funds are not RQFII, but may invest directly in the PRC using RQFII quotas of the Investment Manager. The Investment Manager (as the RQFII Holder) may from time to time make available RQFII quota for the purpose of the Funds’ direct investment in the PRC. Under SAFE’s RQFII quota administration policy, the Investment Manager have the flexibility to allocate its RQFII quota across different open-ended fund products, or subject to SAFE’s approval, to products and/or accounts that are not open-ended funds. The Investment Manager may also apply to SAFE for additional RQFII quota which may be utilized by the Funds, other clients of the Investment Manager or other products managed by the Investment Manager. However, there is no assurance that the Investment Manager will make available RQFII quota that is sufficient for the Funds’ investment at all times.

The Hongkong and Shanghai Banking Corporation Limited (the “Sub-Custodian”) has been appointed by the Investment Manager (acting for the Company and its capacity as the RQFII) to act as the Sub-Custodian through its delegate, HSBC Bank (China) Company Limited (the “China Custodian”) for safe custody of the Funds’ assets acquired through the RQFII quota of the Investment Manager within the PRC under the RQFII scheme in accordance with the RQFII Custodian Agreement (the “RQFII Custodian Agreement”). The Sub-Custodian has also been appointed by the Depositary as its sub-custodian pursuant to the Sub-Custody Agreement and the Sub-Custodian has, with the consent of the Depositary, delegated certain of its duties under the Sub-Custody Agreement to the China Custodian.

According to the RQFII Custodian Agreement, the Sub-Custodian is entitled to utilize its subsidiary or associates within the HSBC group of companies, which as of the date of the RQFII Custodian Agreement is the China Custodian (i.e. HSBC Bank (China) Company Limited) as its delegate for the performance of services under the RQFII Custodian Agreement, but in such a case, the Sub-Custodian shall remain liable for the acts and omissions (including fraud, negligence and willful default) of the China Custodian as if no such appointment has been made. As of the date of this document, no function of the China Custodian in connection with custody of assets under the RQFII regime is delegated to its associates within the HSBC group of companies or any other person(s).

According to the Participation Agreement (the “Participation Agreement”), the Depositary shall, in accordance with and limited to the extent provided in the Global Custody Agreement be responsible for the acts and omissions of the Sub-Custodian as if the same were the acts or omissions of the Depositary.

The Depositary has put in place proper arrangements to ensure that, in respect of each Fund:

(i) the Depositary takes into its custody or under its control the assets of the relevant Fund in accordance with the Global Custody Agreement, and has delegated to the Sub-Custodian the holding of the assets in the securities accounts and cash accounts with the China Custodian;

(ii) the assets in the securities accounts and cash accounts are registered or held to the order and under the control of the Depositary; and

(iii) all instructions give

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