schroder international selection fund semi-annual reportschroder international selection fund...

Schroder International Selection FundSemi-Annual Report30 June 2015

Luxembourg

R.C.S. Luxembourg B 8.202

Schroder International Selection FundSociété d’Investissement à Capital Variable (SICAV)

Semi-Annual Report30 June 2015

No subscriptions can be received on the basis of periodical reports. Subscriptions arevalid only if made on the basis of the current prospectus accompanied by the lastavailable annual report or semi-annual report if published thereafter.

Audited annual and unaudited semi-annual reports, the current prospectus, KIID and theArticles of Incorporation of Schroder International Selection Fund (the 'Company') areavailable, free of charge, at the Company’s registered office, 5, rue Höhenhof, L-1736Senningerberg, Grand Duchy of Luxembourg.

Schroder International Selection Fund Semi-Annual Report 30 June 2015

Table of contents

Schroder International Selection Fund . . . . . . . . . . . . . . . . . . . . . .9

Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Directors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Investment Managers’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . .18

Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166

Distribution of Investments by Industry . . . . . . . . . . . . . . . . . . .273

Portfolio of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .292

Mainstream Equity FundsSchroder ISF Asian Opportunities . . . . . . . . . . . . . . . . . . . . . . . .292

Schroder ISF EURO Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .293

Schroder ISF European Large Cap . . . . . . . . . . . . . . . . . . . . . . .294

Schroder ISF Global Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .295

Schroder ISF Italian Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .296

Schroder ISF Japanese Equity . . . . . . . . . . . . . . . . . . . . . . . . . .297

Schroder ISF Swiss Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .298

Schroder ISF UK Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .299

Schroder ISF US Large Cap . . . . . . . . . . . . . . . . . . . . . . . . . . . .300

Specialist Equity FundsSchroder ISF Asia Pacific Property Securities . . . . . . . . . . . . . . .301

Schroder ISF Asian Dividend Maximiser . . . . . . . . . . . . . . . . . . . .301

Schroder ISF Asian Equity Yield . . . . . . . . . . . . . . . . . . . . . . . . .302

Schroder ISF Asian Smaller Companies . . . . . . . . . . . . . . . . . . .303

Schroder ISF Asian Total Return . . . . . . . . . . . . . . . . . . . . . . . . .304

Schroder ISF BRIC (Brazil, Russia, India, China) . . . . . . . . . . . . .305

Schroder ISF China Opportunities . . . . . . . . . . . . . . . . . . . . . . . .306

Schroder ISF Emerging Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . .307

Schroder ISF Emerging Europe . . . . . . . . . . . . . . . . . . . . . . . . . .308

Schroder ISF Emerging Markets . . . . . . . . . . . . . . . . . . . . . . . . .309

Schroder ISF European Dividend Maximiser . . . . . . . . . . . . . . . .311

Schroder ISF European Equity (Ex UK) . . . . . . . . . . . . . . . . . . . .312

Schroder ISF European Equity Focus . . . . . . . . . . . . . . . . . . . . .313

Schroder ISF European Equity Yield . . . . . . . . . . . . . . . . . . . . . .313

Schroder ISF European Opportunities . . . . . . . . . . . . . . . . . . . . .314

Schroder ISF European Smaller Companies . . . . . . . . . . . . . . . .315

Schroder ISF European Special Situations . . . . . . . . . . . . . . . . . .317

Schroder ISF European Total Return . . . . . . . . . . . . . . . . . . . . . .318

Schroder ISF Frontier Markets Equity . . . . . . . . . . . . . . . . . . . . .319

Schroder ISF Global Climate Change Equity . . . . . . . . . . . . . . . .320

Schroder ISF Global Demographic Opportunities . . . . . . . . . . . . .321

Schroder ISF Global Dividend Maximiser . . . . . . . . . . . . . . . . . . .322


Table of contents

Specialist Equity Funds (cont)Schroder ISF Global Emerging Market Opportunities . . . . . . . . . .323

Schroder ISF Global Emerging Markets Smaller Companies . . . . .324

Schroder ISF Global Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . .325

Schroder ISF Global Equity Yield . . . . . . . . . . . . . . . . . . . . . . . . .326

Schroder ISF Global Property Securities . . . . . . . . . . . . . . . . . . .327

Schroder ISF Global Recovery . . . . . . . . . . . . . . . . . . . . . . . . . .328

Schroder ISF Global Small Cap Energy . . . . . . . . . . . . . . . . . . . .329

Schroder ISF Global Smaller Companies . . . . . . . . . . . . . . . . . . .329

Schroder ISF Greater China . . . . . . . . . . . . . . . . . . . . . . . . . . . .332

Schroder ISF Hong Kong Equity . . . . . . . . . . . . . . . . . . . . . . . . .333

Schroder ISF Indian Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .334

Schroder ISF Indian Opportunities . . . . . . . . . . . . . . . . . . . . . . . .335

Schroder ISF Japanese Opportunities . . . . . . . . . . . . . . . . . . . . .335

Schroder ISF Japanese Smaller Companies . . . . . . . . . . . . . . . .336

Schroder ISF Korean Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .337

Schroder ISF Latin American . . . . . . . . . . . . . . . . . . . . . . . . . . .338

Schroder ISF Middle East . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .339

Schroder ISF Swiss Equity Opportunities . . . . . . . . . . . . . . . . . . .340

Schroder ISF Swiss Small & Mid Cap Equity . . . . . . . . . . . . . . . .340

Schroder ISF Taiwanese Equity . . . . . . . . . . . . . . . . . . . . . . . . . .341

Schroder ISF UK Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . .342

Schroder ISF US Small & Mid Cap Equity . . . . . . . . . . . . . . . . . .343

Schroder ISF US Smaller Companies . . . . . . . . . . . . . . . . . . . . .344

Style EquitySchroder ISF European Small & Mid-Cap Value . . . . . . . . . . . . . .346

Alpha Equity FundsSchroder ISF European Equity Alpha . . . . . . . . . . . . . . . . . . . . . .347

Schroder ISF Global Equity Alpha . . . . . . . . . . . . . . . . . . . . . . . .348

Schroder ISF Japanese Equity Alpha . . . . . . . . . . . . . . . . . . . . .349

Quantitative Equity FundsSchroder ISF QEP Global Active Value . . . . . . . . . . . . . . . . . . . .349

Schroder ISF QEP Global Blend . . . . . . . . . . . . . . . . . . . . . . . . .356

Schroder ISF QEP Global Core . . . . . . . . . . . . . . . . . . . . . . . . . .362

Schroder ISF QEP Global Emerging Markets . . . . . . . . . . . . . . . .369

Schroder ISF QEP Global Quality . . . . . . . . . . . . . . . . . . . . . . . .374

Schroder ISF QEP Global Value Plus . . . . . . . . . . . . . . . . . . . . . .379

Asset Allocation FundsSchroder ISF Global Tactical Asset Allocation . . . . . . . . . . . . . . .385

Multi-Asset FundsSchroder ISF Asian Diversified Growth . . . . . . . . . . . . . . . . . . . .385

Schroder ISF Emerging Multi-Asset Income * . . . . . . . . . . . . . . . .386

* Please refer to the Directors’ Report for the details of all corporate actions that occurred during the period under review.


Table of contents

Multi-Asset Funds (cont)Schroder ISF Global Conservative . . . . . . . . . . . . . . . . . . . . . . . .389

Schroder ISF Global Diversified Growth . . . . . . . . . . . . . . . . . . . .391

Schroder ISF Global Dynamic Balanced . . . . . . . . . . . . . . . . . . .393

Schroder ISF Global Multi-Asset Allocation . . . . . . . . . . . . . . . . .395

Schroder ISF Global Multi-Asset Income . . . . . . . . . . . . . . . . . . .397

Schroder ISF Japan DGF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .409

Schroder ISF Strategic Beta 10 . . . . . . . . . . . . . . . . . . . . . . . . . .410

Schroder ISF Wealth Preservation EUR . . . . . . . . . . . . . . . . . . . .411

Schroder ISF Wealth Preservation USD . . . . . . . . . . . . . . . . . . . .412

Multi-Manager FundsSchroder ISF Multi-Manager Global Diversity . . . . . . . . . . . . . . . .412

Absolute Return FundsSchroder ISF Asian Bond Absolute Return . . . . . . . . . . . . . . . . .413

Schroder ISF Emerging Markets Debt Absolute Return . . . . . . . .414

Schroder ISF European Alpha Absolute Return . . . . . . . . . . . . . .415

Schroder ISF European Equity Absolute Return . . . . . . . . . . . . . .416

Schroder ISF QEP Global Absolute * . . . . . . . . . . . . . . . . . . . . . .417

Mainstream Bond FundsSchroder ISF EURO Bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . .421

Schroder ISF EURO Government Bond . . . . . . . . . . . . . . . . . . . .424

Schroder ISF EURO Short Term Bond . . . . . . . . . . . . . . . . . . . .425

Schroder ISF Global Bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . .427

Schroder ISF Global Inflation Linked Bond . . . . . . . . . . . . . . . . . .432

Schroder ISF Hong Kong Dollar Bond . . . . . . . . . . . . . . . . . . . . .433

Schroder ISF US Dollar Bond . . . . . . . . . . . . . . . . . . . . . . . . . . .436

Specialist Bond FundsSchroder ISF Asian Local Currency Bond . . . . . . . . . . . . . . . . . .443

Schroder ISF EURO Corporate Bond . . . . . . . . . . . . . . . . . . . . .444

Schroder ISF EURO Credit Conviction . . . . . . . . . . . . . . . . . . . . .448

Schroder ISF EURO High Yield . . . . . . . . . . . . . . . . . . . . . . . . . .452

Schroder ISF Global Corporate Bond . . . . . . . . . . . . . . . . . . . . .454

Schroder ISF Global High Income Bond . . . . . . . . . . . . . . . . . . .458

Schroder ISF Global High Yield . . . . . . . . . . . . . . . . . . . . . . . . . .461

Schroder ISF Global Unconstrained Bond . . . . . . . . . . . . . . . . . .466

Schroder ISF Strategic Bond . . . . . . . . . . . . . . . . . . . . . . . . . . .469

Schroder ISF Strategic Credit . . . . . . . . . . . . . . . . . . . . . . . . . . .472

Specialist Bond Funds (Medium-higher Risk)Schroder ISF Asian Convertible Bond . . . . . . . . . . . . . . . . . . . . .475

Schroder ISF Emerging Market Bond . . . . . . . . . . . . . . . . . . . . .476

Schroder ISF Emerging Market Corporate Bond . . . . . . . . . . . . .478

Schroder ISF Emerging Market Local Currency Bond . . . . . . . . .480



Table of contents

Specialist Bond Funds (Medium-higher Risk) (cont)Schroder ISF Global Conservative Convertible Bond . . . . . . . . . .481

Schroder ISF Global Convertible Bond . . . . . . . . . . . . . . . . . . . .482

Schroder ISF Global Credit Duration Hedged . . . . . . . . . . . . . . .484

Schroder ISF RMB Fixed Income . . . . . . . . . . . . . . . . . . . . . . . .488

Liquidity FundsSchroder ISF EURO Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . .489

Schroder ISF US Dollar Liquidity . . . . . . . . . . . . . . . . . . . . . . . . .490

Currency FundSchroder ISF Global Managed Currency . . . . . . . . . . . . . . . . . . .491

Appendix I - Unaudited TER . . . . . . . . . . . . . . . . . . . . . . . . . . . .492


Schroder International Selection Fund (the ‘Company’) is an open-ended ‘umbrella’ companyincorporated under Luxembourg law, which enables investors to choose from ‘Funds’ (specificportfolios of assets and liabilities within the Company having their own net asset value andrepresented by a separate class or classes of shares) offering different investment objectives.The shares of each Fund are listed on the Luxembourg Stock Exchange. Prices are alsoavailable on Bloomberg and Reuters.

This report covers the period from 1 January 2015 to 30 June 2015. The financial statementsare prepared in accordance with Luxembourg regulations relating to undertakings for collectiveinvestment. The last day on which prices were calculated was 30 June 2015, the last workingday of the period. At the date of this report, 110 Funds were available for investment. Pleaserefer to the current prospectus for the investment objectives of the Funds as well as details ofinvestment restrictions. The monthly factsheets for each Fund can be obtained from theCompany’s registered office and are also available on the website of Schroder InvestmentManagement (Luxembourg) S.A. (http://www.schroders.lu).

Hereafter, Schroder International Selection Fund will be referred to as the ‘Company’ and allnames of the Funds will be preceded by Schroder ISF, e.g. Schroder ISF Global Equity Alpha.

Schroders is a FATCA compliant organisation. The FATCA classification of this entity and itsGIIN is as follows: FATCA entity classification: FFI; Sponsoring entity: Schroder InvestmentManagement (Luxembourg) S.A.; Sponsoring entity GIIN: 4RIMT7.00000.SP.442

The Company is subject to corporate governance based on:

1. Its obligations as defined by the UCITS Directive 2009/65/EC dated 13 July 2009, asimplemented in Luxembourg law which is available for inspection at the registered office of theCompany at 5, rue Höhenhof, 1736 Senningerberg, Grand Duchy of Luxembourg.

2. Its articles of incorporation which are available for inspection at the registered office of theCompany and at the Luxembourg corporate and trade register, Registre de Commerce et desSociétés (‘RCSL’).

3. The obligations in respect of the management of the Company, for which the Company hasappointed Schroder Investment Management (Luxembourg) S.A., which is subject to therequirements of the Management Company Directive 2010/43/EC, as implemented inLuxembourg law.

4. The Association of the Luxembourg Fund Industry (‘ALFI’) code of conduct, which theCompany has voluntarily adopted.

Internal Control and Risk Management Systems

The Board of Directors is responsible for establishing and maintaining adequate internal controland risk management systems of the Company in relation to the financial reporting process.Such systems are designed to manage rather than eliminate the risk of error or fraud inachieving the Company's financial reporting objectives and can only provide reasonable andnot absolute assurance against material misstatement or loss.

The Board of Directors has contracted with the Management Company to put procedures inplace to ensure all relevant accounting records are properly maintained and are readilyavailable, including the production of annual and semi-annual reports. The annual and semi-annual reports of the Company are required to be approved by the Board of Directors of theCompany and filed with the Commission de Surveillance du Secteur Financier (‘CSSF’) and, inthe case of annual reports, with the RCSL.

The annual statutory financial statements are required to be audited by independent auditorswho report to the Board of Directors on their findings.

The Board meets at least four times a year and ensures that the Company maintains highstandards of integrity and control in its operations and that it possesses adequate governanceand means of control as law and regulation demand.

Schroder International Selection Fund

The Company

Corporate Governance

http://www.schroders.lu


— Massimo TosatoExecutive Vice ChairmanSchroder Investment Management Limited31 Gresham StreetLondon EC2V 7QAUnited Kingdom

— Mike ChampionHead of Product DevelopmentSchroder Investment Management Limited31 Gresham StreetLondon EC2V 7QAUnited Kingdom

— Marie-Jeanne Chevremont-LorenziniIndependent Director37C Avenue J.F. Kennedy1855 LuxembourgGrand Duchy of Luxembourg

— Jacques ElvingerAvocatElvinger, Hoss & Prussen2, place Winston Churchill2014 LuxembourgGrand Duchy of Luxembourg

— Daniel De Fernando GarciaIndependent DirectorSerrano 128001 MadridSpain

— Achim KuessnerCountry Head Germany, Austria & CEESchroder Investment Management GmbHTaunustor 160310 FrankfurtGermany

— Ketil PetersenCountry Head Nordic RegionSchroders Denmark Filial af Schroder Investment Management (Luxembourg) S.A.Store Strandstraede 211255 Copenhagen KDenmark

— Georges-Arnaud SaierIndependent Director6, rue Paul BaudryF-75008 ParisFrance

— Carlo TrabattoniHead of Pan European Intermediary Distribution and GFIGSchroder Investment Management Limited31 Gresham StreetLondon EC2V 7QAUnited Kingdom

Board of Directors

Chairman

Directors


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

Schroder Investment Management (Luxembourg) S.A.5, rue Höhenhof, L-1736 Senningerberg, Grand Duchy of Luxembourg

J.P. Morgan Bank Luxembourg S.A.European Bank & Business Centre, 6, route de Trèves, L-2633 Senningerberg,Grand Duchy of Luxembourg

Elvinger, Hoss & Prussen2, place Winston Churchill, L-2014 Luxembourg, Grand Duchy of Luxembourg

PricewaterhouseCoopers, Société coopérative2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg, Grand Duchy of Luxembourg

Schroder Investment Management Limited31, Gresham Street, London EC2V 7QA, United KingdomSchroder ISF Asian Dividend MaximiserSchroder ISF BRIC (Brazil, Russia, India, China)Schroder ISF Emerging EuropeSchroder ISF Emerging MarketsSchroder ISF Emerging Markets Debt Absolute ReturnSchroder ISF Emerging Multi-Asset Income *Schroder ISF EURO BondSchroder ISF EURO Corporate BondSchroder ISF EURO Credit ConvictionSchroder ISF EURO EquitySchroder ISF EURO Government BondSchroder ISF EURO High YieldSchroder ISF EURO LiquiditySchroder ISF EURO Short Term BondSchroder ISF European Alpha Absolute ReturnSchroder ISF European Dividend MaximiserSchroder ISF European Equity (Ex UK)Schroder ISF European Equity Absolute ReturnSchroder ISF European Equity AlphaSchroder ISF European Equity FocusSchroder ISF European Equity YieldSchroder ISF European Large CapSchroder ISF European OpportunitiesSchroder ISF European Smaller CompaniesSchroder ISF European Special SituationsSchroder ISF European Total ReturnSchroder ISF Frontier Markets EquitySchroder ISF Global BondSchroder ISF Global Climate Change EquitySchroder ISF Global Demographic OpportunitiesSchroder ISF Global Diversified GrowthSchroder ISF Global Dividend MaximiserSchroder ISF Global Emerging Market OpportunitiesSchroder ISF Global Emerging Markets Smaller CompaniesSchroder ISF Global EnergySchroder ISF Global EquitySchroder ISF Global Equity AlphaSchroder ISF Global Equity YieldSchroder ISF Global Inflation Linked BondSchroder ISF Global Managed CurrencySchroder ISF Global Multi-Asset AllocationSchroder ISF Global Multi-Asset IncomeSchroder ISF Global Property SecuritiesSchroder ISF Global RecoverySchroder ISF Global Small Cap EnergySchroder ISF Global Smaller CompaniesSchroder ISF Global Tactical Asset AllocationSchroder ISF Global Unconstrained BondSchroder ISF Italian EquitySchroder ISF Latin AmericanSchroder ISF Middle EastSchroder ISF Multi-Manager Global Diversity

Administration


Registered Office

Management Company, DomiciliaryAgent, Principal Paying Agent,Registrar and Transfer Agent

Custodian and Fund Administrator

Principal Legal Adviser

Auditor

Investment Managers


Schroder Investment Management Limited (cont)31, Gresham Street, London EC2V 7QA, United KingdomSchroder ISF QEP Global Absolute *Schroder ISF QEP Global Active ValueSchroder ISF QEP Global BlendSchroder ISF QEP Global CoreSchroder ISF QEP Global Emerging MarketsSchroder ISF QEP Global QualitySchroder ISF QEP Global Value PlusSchroder ISF Strategic Beta 10Schroder ISF Strategic BondSchroder ISF Strategic CreditSchroder ISF UK EquitySchroder ISF UK OpportunitiesSchroder ISF Wealth Preservation EURSchroder ISF Wealth Preservation USD

Schroder Investment Management (Hong Kong) LimitedSuites 3301, Level 33, Two Pacific Place, 88 Queensway, Hong Kong SARSchroder ISF Asia Pacific Property SecuritiesSchroder ISF Asian Diversified GrowthSchroder ISF China OpportunitiesSchroder ISF Emerging AsiaSchroder ISF Greater ChinaSchroder ISF Hong Kong Dollar BondSchroder ISF Hong Kong EquitySchroder ISF Japan DGFSchroder ISF RMB Fixed IncomeSchroder ISF Taiwanese Equity

Schroder Investment Management (Japan) Limited21st Floor Marunouchi Trust Tower Main, 1-8-3 Marunouchi, Chiyoda-Ku, Tokyo 100-0005,JapanSchroder ISF Japanese EquitySchroder ISF Japanese Equity AlphaSchroder ISF Japanese OpportunitiesSchroder ISF Japanese Smaller Companies

Schroder Investment Management North America Inc.875 Third Avenue, 22nd Floor, New York, New York 10022-6225, United States of AmericaSchroder ISF Emerging Market BondSchroder ISF Emerging Market Local Currency BondSchroder ISF Global Corporate BondSchroder ISF Global Credit Duration HedgedSchroder ISF Global High Income BondSchroder ISF Global High YieldSchroder ISF US Dollar BondSchroder ISF US Dollar LiquiditySchroder ISF US Large CapSchroder ISF US Small & Mid-Cap EquitySchroder ISF US Smaller Companies

Schroder Investment Management (Singapore) Limited138 Market Street #23-01, CapitaGreen, Singapore 048946, SingaporeSchroder ISF Asian Bond Absolute ReturnSchroder ISF Asian Equity YieldSchroder ISF Asian Local Currency BondSchroder ISF Asian OpportunitiesSchroder ISF Asian Smaller CompaniesSchroder ISF Asian Total ReturnSchroder ISF Emerging Market Corporate Bond

Administration (cont)


Investment Managers (cont)


Schroder Investment Management (Singapore) Limited (cont)138 Market Street #23-01, CapitaGreen, Singapore 048946, SingaporeSchroder ISF Indian EquitySchroder ISF Indian OpportunitiesSchroder ISF Korean Equity

Schroder Investment Management (Switzerland) AGCentral 2, CH-8021 Zurich, SwitzerlandSchroder ISF Asian Convertible BondSchroder ISF European Small & Mid-Cap ValueSchroder ISF Global ConservativeSchroder ISF Global Conservative Convertible BondSchroder ISF Global Convertible BondSchroder ISF Global Dynamic BalancedSchroder ISF Swiss EquitySchroder ISF Swiss Equity OpportunitiesSchroder ISF Swiss Small & Mid Cap Equity

Administration (cont)


Investment Managers (cont)

Introduction

The directors of the Company submit their report for the period ended 30 June 2015.

Activities during the period

On 30 June 2015, the total net assets of the Company were EUR 89,822,134,278 compared to EUR 78,174,779,760 on 31 December 2014,representing an increase of 14.90%.

1. New Funds

During the period under review, 2 new Funds were made available for investment within the Company:

8 April 2015 Schroder ISF Emerging Multi-Asset Income;27 May 2015 Schroder ISF QEP Global Absolute;

2. New share classes

In addition to the 18 share classes launched in new Funds, the following share classes were also made available during the period:

25 February 2015 Schroder ISF Asian Dividend Maximiser A Dis RMB Hedged;Schroder ISF China Opportunities A Dis HKD;Schroder ISF Emerging Asia IZ Acc;Schroder ISF EURO Bond IZ Dis;Schroder ISF European Dividend Maximiser AX Dis;Schroder ISF Global High Yield I Dis GBP Hedged;Schroder ISF Global Multi-Asset Income A Dis SGD;Schroder ISF Japan DGF X Dis;Schroder ISF Strategic Bond I Dis GBP Hedged;

11 March 2015 Schroder ISF Global Conservative C Acc & I Acc;Schroder ISF Global Multi-Asset Allocation A Acc & I Acc EUR Hedged;

29 April 2015 Schroder ISF Global Recovery X Dis;Schroder ISF QEP Global Emerging Markets IZ Dis EUR;

20 May 2015 Schroder ISF EURO Equity I Acc USD Hedged;Schroder ISF QEP Global Emerging Markets I Dis GBP;

3 June 2015 Schroder ISF Global Multi-Asset Allocation B Acc & B Dis;Schroder ISF QEP Global Core X Dis.

3. Share class liquidations

The following share classes were liquidated during the period:

16 February 2015 Schroder ISF Global Corporate Bond C Acc EUR Duration Hedged;10 April 2015 Schroder ISF Asian Opportunities I Acc EUR;22 April 2015 Schroder ISF Global Small Cap Energy I Acc CHF & I Acc EUR;6 May 2015 Schroder ISF Asian Bond Absolute Return B Dis, I Acc EUR Hedged, A Acc HKD, I Acc SGD Hedged;

Schroder ISF Asian Convertible Bond C Dis GBP Hedged;Schroder ISF Asian Local Currency Bond A1 Dis & B Dis;Schroder ISF Asian Opportunities B Dis;Schroder ISF Asian Smaller Companies C Dis;Schroder ISF Asian Total Return A1 Acc EUR Hedged, B Acc EUR Hedged, C Dis JPY Hedged;Schroder ISF BRIC (Brazil, Russia, India, China) I Acc EUR;Schroder ISF China Opportunities A1 Acc SGD Hedged;Schroder ISF Emerging Markets B Dis;Schroder ISF EURO Corporate Bond A Dis EUR Duration Hedged;Schroder ISF EURO Liquidity I Acc JPY;Schroder ISF European Equity Alpha I Dis;Schroder ISF European Equity Yield A1 Acc USD;Schroder ISF European Large Cap B Dis;Schroder ISF European Smaller Companies I Acc;Schroder ISF European Total Return I Acc, C Dis, I Dis, A Acc GBP Hedged & C Acc GBP Hedged;Schroder ISF Global Bond B Dis & I Acc EUR Hedged;Schroder ISF Global Climate Change Equity A1 Acc EUR, I Acc EUR, A Dis EUR Hedged & C Dis GBP;

Page 14 Schroder International Selection Fund Semi-Annual Report 30 June 2015

Directors’ Report

Activities during the period (cont)6 May 2015 (cont) Schroder ISF Global Emerging Market Opportunities I Acc EUR & A Dis GBP;

Schroder ISF Global Energy A Dis EUR Hedged;Schroder ISF Global Equity A Dis;Schroder ISF Global Equity Alpha A Dis & B Dis;Schroder ISF Global Equity Yield I Dis;Schroder ISF Global High Income Bond B Acc, A1 Acc, A1 Dis & A Dis SGD Hedged;Schroder ISF Global Multi-Asset Income I Acc EUR Hedged & I Acc GBP Hedged;Schroder ISF Hong Kong Dollar Bond B Acc;Schroder ISF Italian Equity C Dis;Schroder ISF Korean Equity A Dis;Schroder ISF Latin American I Acc EUR;Schroder ISF Middle East I Acc EUR;Schroder ISF Swiss Equity I Acc;Schroder ISF Taiwanese Equity C Dis & I Dis;Schroder ISF US Large Cap B Dis & I Acc EUR;Schroder ISF US Small & Mid-Cap Equity I Acc EUR;

7 May 2015 Schroder ISF Japanese Equity B Dis;Schroder ISF Japanese Equity Alpha A1 Acc & B Acc;Schroder ISF Japanese Smaller Companies A Dis & B Dis.

Furthermore, the following changes took effect during the period:

1 January 2015 Schroder ISF EURO Corporate Bond Z Dis class changed the distribution policy from annual variable to semi-annual 3%;Schroder ISF Global Property Securities Z Dis EUR class changed the distribution frequency from annual to semi-annual;

12 February 2015 Change in the investment policy to allow investment in Chinese Interbank Bond Market for Schroder ISF Asian Bond Absolute Return,Schroder ISF Asian Local Currency Bond and Schroder ISF Hong Kong Dollar Bond;

1 April 2015 Minimum subscription changed for all I classes from EUR/USD 20,000,000 to EUR/USD 5,000,000;Minimum additional subscription changed for all I classes from EUR/USD 10,000,000 EUR/USD 2,500,00;Minimum holding changed for all I classes from EUR/USD 20,000,000 to EUR/USD 5,000,000;Management fee reduction for Schroder ISF European Equity Absolute Return A, A1, B shares from 2% to 1.5% and C shares from1% to 0.75%;Distribution fee reduction for Schroder ISF Global Diversified Growth B Acc class from 0.80% to 0.60%;Change of investment policies for Schroder ISF European Opportunities, Schroder ISF European Equity (Ex UK), Schroder ISF RMBFixed Income, Schroder ISF Strategic Credit and Schroder ISF UK Opportunities;

28 May 2015 Change in distribution policy for Schroder ISF European Equity Yield A Dis RMB Hedged from 4% to 4% + premium and SchroderISF Global Corporate Bond A Dis RMB Hedged from 3% to 3% + currency premium.

The Board of DirectorsSchroder International Selection Fund30 June 2015

The information contained in this report is historical and not necessarily indicative of future performance.

Page 15Schroder International Selection Fund Semi-Annual Report 30 June 2015

Directors’ Report (cont)

The six-month period was marked by divergence in monetary policy. Several major central banks eased financial conditions, while in the US thefocus was on when the Federal Reserve (Fed) would raise interest rates. In total, 21 central banks cut policy rates over the first three months of theperiod. In the eurozone, ongoing weak growth figures and inflation dipping into negative territory saw the European Central Bank (ECB) announce amuch-anticipated quantitative easing programme. The programme envisages asset purchases totalling €60 billion per month from March 2015 toSeptember 2016.

Meanwhile, in the US focus was on the likely timing of the first interest rate hike from the current ultra-low level. However, although labour marketdata continued to be robust, other economic indicators showed a slowdown over the winter. This was largely attributed to poor weather conditionsbut the weaker data meant the market pushed out expectations for a rate rise until the latter part of 2015. Nevertheless, the expectation that the USwould tighten monetary policy while other economies are still easing policy led to a rise in the US dollar versus other major currencies.

The Chinese authorities took steps on several occasions to loosen monetary policy as growth slowed, making cuts to interest rates and the reserverequirement ratio. The Reserve Bank of India was another to lower interest rates over the period. Elsewhere in emerging markets, economicfundamentals deteriorated in Brazil and a corruption scandal at state controlled oil major Petrobras hit the investment outlook for the entire country.

On the political front, elections in Greece saw victory for left-wing party Syriza, which formed an anti-austerity coalition government. The period sawmultiple sets of negotiations between Athens and its creditors aimed at agreeing reforms needed to release further bailout funds. However, thesetalks broke down and the Greek government called a referendum on the bailout. Scheduled for 5 July, the vote has been widely regarded as an “in-out” decision on Greece’s ongoing membership of the eurozone. Elsewhere, the UK held a general election in May. A coalition government hadbeen widely expected but the Conservative Party won a surprise outright majority in a result largely perceived as positive for business.

The global growth picture remained somewhat subdued. The eurozone saw a small acceleration in growth to 0.4% quarter on quarter (q/q) for thefirst quarter (Q1) of 2015, from 0.3% in the fourth quarter (Q4) of 2014. Japanese growth expanded to 1.0% q/q in Q1 (3.9% annualised),supported by business spending. However, the US experienced a contraction of 0.2% (q/q, annualised) in Q1 from a 2.2% growth rate in Q4, aspoor weather dragged on activity. Chinese growth slowed to 7.0% year on year in Q1 from 7.3% the previous quarter. Oil prices largely stabilisedduring the period after the sharp drop seen at the end of 2014.

Equities overview

The MSCI World index returned 3.0% 1 over the six months. US equities made gains although the optimistic mood at the start of the period gaveway to greater uncertainty, as economic indicators weakened and the stronger dollar weighed on exporters. In the eurozone, returns were stronger,supported by the ECB’s announcement of quantitative easing along with the weaker euro and signs of the economy picking up. Japanese equitiesexperienced strong gains in local currency terms but the yen’s weakness meant these gains were more muted for overseas investors. Globally,merger & acquisition activity picked up in several sectors including food producers (Kraft merging with Heinz), pharmaceuticals (Pfizer buyingHospira) and oil (Royal Dutch Shell bidding for BG Group).

The MSCI Emerging Markets index returned 3.1% 2. Chinese equities registered strong returns, albeit with profit-taking setting in towards the end ofthe period. The rally was primarily due to local investors’ expectations for further monetary policy easing and a shift in investment preferences, awayfrom the slowing Chinese property market into local equities. Russian equities were also strong as oil prices recovered and geopolitical worrieseased.

Fixed income overview

Bond markets largely underperformed equities over the period. Q1 2015 was, broadly speaking, another period of yield compression in global bondmarkets. However, there was a reversal in the second half of the period, with bond yields climbing sharply across most major bond markets. In spiteof ongoing fragility in macroeconomic data from the US, the Fed warned that investors should expect rate hikes to begin in 2015. The commentspushed Treasury yields higher. In the eurozone, inflation expectations were revised upwards and Bund yields rose aggressively in April, May and thestart of June. The end of June saw Bund yields fall back slightly due to uncertainty stemming from a potential Greek default.

In corporate bond markets, investment grade bonds were outperformed by high yield. The investment grade BofA Merrill Lynch Global CorporateBond index fell by 2.7% 3 but the high yield equivalent rose by 1.8% 4. Corporate bonds struggled through the second part of the period given softerreturns in sovereign bonds and a continued high level of supply coming from the US.


Investment Managers’ Report

1 Datastream, MSCI World, US$.2 Datastream, MSCI Emerging Markets, US$.3 Datastream, BofA Merrill Lynch Global Corporate Bond, US$4 Datastream, BofA Merrill Lynch Global High Yield, US$

Outlook

The world economy is likely to enjoy better growth in the second half of this year as the benefits of lower energy prices flow through and growthrevives further in the US, Europe and Japan. As this benefits trade, emerging markets should also improve as we head into 2016.

We are seeing a pick-up in activity. In the US, retail and auto sales have strengthened after a soft Q1 and employment growth remains robust. Wethink the Fed will raise interest rates in September and into next year. Europe continues to expand, with little evidence that the Greek crisis hassignificantly damaged business or consumer confidence so far. Bank lending and credit growth are reviving after the contraction experienced in2013 and 2014. Meanwhile, the latest figures show that economic performance in Japan was better than expected in Q1 on the back of strongerinvestment. Leading indicators suggest growth remained robust in Q2 and we are looking for Japanese consumer spending to improve as realincomes strengthen in the coming months. Emerging economies remain the laggards – with China continuing to decelerate in Q2 – and as a groupthey continue to lag the recovery seen in purchasing managers’ indices in the developed world.

Overall, these trends bode well for the second half of the year and into next and our forecast assumes that global growth can pick up to 2.9% in2016. This is based on continued recovery in Europe and Japan and steady growth in the US, which feeds through to better exports from theemerging economies. The ongoing benefits from lower energy costs, loose monetary policy and a less restrictive fiscal stance support demand inthe developed world and underpin the forecast.

The Investment ManagersSchroder International Selection Fund30 June 2015

The information contained in this report is historical and not necessarily indicative of future performance.


Investment Managers’ Report (cont)

The Company

The Company was incorporated in Luxembourg on 5 December 1968 as a ‘société anonyme’. Pursuant to an Extraordinary General Meeting ofShareholders held on 31 January 1989, the form and name of the Company, as well as its establishment period, was changed to a ‘sociétéd’investissement à capital variable’ (‘SICAV’) established for an unlimited period under the name of Schroder International Selection Fund. Thecompany qualifies as an undertaking for collective investment (UCI) regulated by the provisions of Part I of the Luxembourg Law of 17 December2010, as amended, regarding undertaking for collective investment (the ‘2010 law’).

Classes of Shares

At the date of this report, fifteen classes of shares are available within the Funds: A, B, C, D, E, I, IZ, J, R, S, X, Z, A1, B1 and AX shares.All Funds offer A, B and C shares, apart from the following Funds:

Schroder ISF Asian Diversified Growth (offers only A, C, I & A1 shares);Schroder ISF Emerging Multi-Asset Income* (offers only A, C, I & A1 shares);Schroder ISF EURO High Yield (offers only A, C & I shares);Schroder ISF European Equity (Ex UK) (offers only A, C & S shares);Schroder ISF European Equity Focus (offers only A, C, I & Z shares);Schroder ISF European Small & Mid-Cap Value (offers only A, C, I & Z shares);Schroder ISF Global Conservative (offers only A, C, I & A1 shares);Schroder ISF Global Conservative Convertible Bond (offers only A, C, E & I shares);Schroder ISF Global Demographic Opportunities (offers only A, C & Z shares);Schroder ISF Global Small Cap Energy (offers only A, C & I shares);Schroder ISF Global Tactical Asset Allocation (offers only C & I shares);Schroder ISF Indian Opportunities (offers only A, C, E & I shares);Schroder ISF Japan DGF (offers only C, I & X shares);Schroder ISF Japanese Opportunities (offers only A, C, I & A1 shares);Schroder ISF Multi-Manager Global Diversity (offers only A & C shares);Schroder ISF QEP Global Absolute* (offers only A, C & I shares);Schroder ISF QEP Global Blend (offers only A, C, I, S & Z shares);Schroder ISF QEP Global Core (offers only C, I & X shares);Schroder ISF QEP Global Emerging Markets (offers only A, C, I, Z, A1 & IZ shares);Schroder ISF QEP Global Value Plus (offers only A, C & I shares);Schroder ISF RMB Fixed Income (offers only A, C, E & I shares);Schroder ISF Strategic Beta 10 (offers only I shares);Schroder ISF UK Opportunities (offers only A, C & S shares);Schroder ISF Wealth Preservation USD (offers only A, C, E & I shares).

Shares are generally issued as Accumulation shares. Distribution shares may be issued within any Fund at the Directors’ discretion. A list of availableDistribution shares may be obtained upon request at the Management Company.

In accordance with the provisions of the current prospectus, the Directors may also offer classes in multiple currency denominations. The respectiveInvestment Managers have the ability to hedge the shares of such classes in relation to the Fund currency or in relation to currencies in which therelevant Fund's underlying assets are denominated. Where hedging of this kind is undertaken, the respective Investment Managers may engage, forthe exclusive account of such share class, in currency forwards, currency futures, currency option transactions and swaps in order to preserve thevalue of the reference currency against the Fund currency. Where undertaken, the effects of this hedging will be reflected in the Net Asset Valueand, therefore, in the performance of such additional share class. Similarly, any expenses arising from such hedging transactions will be borne bythe class in relation to which they have been incurred. The classes of share available for each Fund are set out in detail in the current prospectus.The Directors may decide from time to time for some or all of the Bond Funds to issue duration hedged share classes. Duration hedged shareclasses utilise hedging strategies that seek to reduce the share class' sensitivity to changes in interest rate movements. There is no assurance thatthese hedging strategies will be successful. Where undertaken, the effects of this hedging will be reflected in the Net Asset Value and, therefore, inthe performance of the share class. Similarly, any expenses arising from such hedging transactions will be borne by the duration hedged shareclass. The performance of the duration hedged share classes may underperform other share classes in the Bond Funds depending on interest ratemovements. Duration hedged share classes can be issued in relation to any type of available share classes of Bond Funds.

The naming convention used for the share classes is as follows:A Acc for base currency share class;A Acc ‘CCY’ for a multicurrency share class;A Acc ‘CCY’ Hedged for a hedged share class.

Initial Charge

The Management Company and Distributors are entitled to the following initial charges, which can be partly or fully waived at the Directors’discretion.


Notes to the Financial Statementsas at 30 June 2015

Initial Charge (cont)

A and AX SharesEquity Funds and Asset Allocation Funds Initial charge of up to 5.26315% of the Net Asset Value per ShareMulti-Asset Funds Initial charge of up to 5.26315% of the Net Asset Value per Share with the exception of:

up to 4.16667% of the Net Asset Value per Share of Schroder ISF Global Dynamic Balanced, Schroder ISFGlobal Multi-Asset Allocation, Schroder ISF Wealth Preservation EUR and Schroder ISF Wealth Preservation USDup to 3.09278% of the Net Asset Value per Share of Schroder ISF Global Conservative

Multi-Manager Funds Initial charge of up to 4.16667% of the Net Asset Value per ShareAbsolute Return Funds, Bond Funds and Currency Funds Initial charge of up to 3.09278% of the Net Asset Value per ShareLiquidity Funds No initial charge

A1 SharesEquity Funds and Asset Allocation Funds Initial charge of up to 4.16667% of the Net Asset Value per ShareMulti-Asset Funds Initial charge of up to 4.16667% of the Net Asset Value per Share with the exception of:

up to 3.09278% of the Net Asset Value per Share of Schroder ISF Global Dynamic Balanced, Schroder ISFGlobal Multi-Asset Allocation, Schroder ISF Wealth Preservation EUR and Schroder ISF Wealth Preservation USDup to 2.04081% of the Net Asset Value per Share of Schroder ISF Global Conservative

Absolute Return Funds, Bond Funds and Currency Funds Initial charge of up to 2.04081%of the Net Asset Value per ShareLiquidity Funds No initial charge

C and E Shares Initial charge of up to 1.0101% of the Net Asset Value per Share with the exception of Liquidity FundsLiquidity Funds No initial charge

B, B1, D, I, IZ, J, R, S, X and Z Shares No initial charge

Distribution Charge

A, AX, C, E, I, IZ, J, R, S, X and Z Shares No distribution charge

B Shares *

Equity Funds Distribution charge of 0.60% per annum of the net assets of FundsAbsolute Return Funds Distribution charge of 0.50% per annum of the net assets of FundsBond Funds Distribution charge of 0.50% per annum of the net assets of Funds with the exception of:

0.10% per annum of the net assets of Schroder ISF EURO Short Term BondLiquidity Funds Distribution charge of 0.10% per annum of the net assets of Funds with the exception of:

No distribution charge for Schroder ISF US Dollar LiquidityCurrency Funds Distribution charge of 0.50% per annum of the net assets of FundsAsset Allocation Funds Distribution charge of 0.60% per annum of the net assets of FundsMulti-Asset Funds Distribution charge of 0.60% per annum of the net assets of Funds with the exception of:

0.50% per annum of the net assets of Funds Schroder ISF Wealth Preservation EUR and Schroder ISF WealthPreservation USD

D Shares ** Distribution charge of 1.00% per annum of the net assets of Funds

A1 Shares ** Distribution charge of 0.50% per annum of the net assets of Funds with the exception of:0.10% per annum of the net assets of Schroder ISF EURO LiquidityNo distribution charge for Schroder ISF US Dollar Liquidity

B1 Shares ** Distribution charge of 1.25% per annum of the net assets of Funds(including a shareholder servicing fee of 0.25% p.a.) with the exception of:0.60% per annum of the net assets of Schroder ISF Global Conservative


Notes to the Financial Statementsas at 30 June 2015 (cont)

* Distribution charges in respect of B shares are payable quarterly.** Distribution charges in respect of A1, B1 and D shares are paid at such intervals, as may be agreed upon from time to time between the Company and those Distributors that are appointed specifically for thepurpose of distributing such shares.

Minimum Subscription Amount, Minimum Additional Subscription Amount and Minimum Holding Amount

In accordance with the provisions of the current prospectus, minimum amounts for subscription, additional subscription and holding are as follows:

*A, AX, A1, B, B1 and D Shares The minimum initial subscription, additional subscription and holding amount is EUR 1,000 or USD 1,000 or theirnear equivalent in any other freely convertible currency. **

C and E Shares The minimum initial subscription and holding amount is EUR 500,000 or USD 500,000 or their near equivalent inany other freely convertible currency. The minimum additional subscription amount is EUR 250,000 or USD250,000 or their near equivalent in any other freely convertible currency. **

E Shares will only be available, with prior agreement of the Management Company.

I & J Shares The minimum initial subscription and holding amount is EUR 5,000,000 or USD 5,000,000 or their near equivalentin any other freely convertible currency. The minimum additional subscription amount is EUR 2,500,000 or USD2,500,000 or their near equivalent in any other freely convertible currency. **

I shares will only be offered to investors who, at the time the relevant subscription order is received, are clients ofSchroders with an agreement covering the charging structure relevant to the clients’ investments in such sharesand who are Institutional Investors.

J Shares will only be offered to and can only be acquired by Japanese Fund of Funds, which are InstitutionalInvestors.

IZ & Z Shares The minimum initial subscription and holding amount is EUR 100,000,000 or USD 100,000,000 or their nearequivalent in any other freely convertible currency. The minimum additional subscription amount is EUR20,000,000 or USD 20,000,000 or their near equivalent in any other freely convertible currency. **

IZ Shares will only be offered to and can only be acquired by Institutional Investors, with prior agreement of theManagement Company.

Z Shares will be offered in limited circumstances to professional investors for distribution in certain countries andthrough certain Distributors, with the prior agreement of the Management Company.

X Shares The minimum initial subscription and holding amount is EUR 25,000,000 or USD 25,000,000 or their nearequivalent in any other freely convertible currency. The minimum additional subscription amount is EUR12,500,000 or USD 12,500,000 or their near equivalent in any other freely convertible currency. **

X shares will only be available, with prior agreement of the Management Company, to institutional investors, asmay be defined from time to time by the guidelines or recommendations issued by the Luxembourg supervisoryauthority.

R & S Shares There are no minimum subscription or holding amounts.

Further details on specific features of the different classes of shares and the conditions under which initial and distribution fees are calculated can befound in the current prospectus.

Net Asset Value

Calculation of Net Asset Value per Share

The Net Asset Value per share of each class is calculated on each Dealing Day in the currency of the relevant class. It is calculated by dividing theNet Asset Value attributable to each class, being the proportionate value of its assets less its liabilities, by the number of shares of such class then inissue. The resulting sum is rounded to the nearest two decimal places. Further details on rules that apply in valuing total assets can be found in thecurrent prospectus.

Valuation of the Assets of the Company

The value of securities, financial derivative instruments and assets is determined on the basis of the last available price on the stock exchange or anyother regulated market on which those securities or assets are traded or admitted for trading. Where such securities or other assets are quoted ordealt in on more than one stock exchange or any other regulated market, the Directors shall make regulations for the order of priority in which stockexchanges or other regulated markets shall be used for the provision of prices of securities or other assets.

If a security is not traded on or admitted to any official stock exchange or any other regulated market or, in the case of securities so traded oradmitted, the last available price does not reflect their true value, the Directors are required to proceed on the basis of their expected sales price,which shall be valued with prudence and in good faith.

Liquid assets and money market instruments are usually valued on an amortised cost basis.

Financial derivative instruments, which are not listed on any official stock exchange or any other regulated market, are valued in accordance withmarket practice. The swaps are valued at their fair value based on the underlying securities (at close of business or intraday) as well as on thecharacteristics of the underlying commitments.



** These minima may be waived from time to time at the discretion of the Directors.

Net Asset Value (cont)

Valuation of the Assets of the Company (cont)

Units or shares in undertakings for collective investments are valued on the basis of their last available net asset value. Liquid assets and moneymarket instruments held within the liquidity Funds are usually valued on an amortised cost basis.

The value of any cash in hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interestdeclared or accrued as aforesaid and not yet received shall be deemed to be the full amount thereof, unless in any case the same is unlikely to bepaid or received in full, in which case the value thereof shall be arrived at after making such discount as the Company may consider appropriate insuch case to reflect the true value thereof.

Any assets or liabilities in currencies other than the base currencies of the Funds will be converted using the relevant spot rate quoted by a bank orother responsible financial institution.

If any of the aforesaid valuation principles do not reflect the valuation method commonly used in specific markets or if any such valuation principlesdo not seem accurate for the purpose of determining the value of the Company’s assets, the Directors may fix different valuation principles in goodfaith and in accordance with generally accepted valuation principles and procedures.

The Directors are authorised to apply other appropriate valuation principles for the assets of the Funds and/or the assets of a given class if theaforesaid valuation methods appear impossible or inappropriate due to extraordinary circumstances or events.

As of 30 June 2015, fair valuation was applied to the following securities:

Security Name Fund

Anxin-China Schroder ISF QEP Global Emerging MarketsBanca Popolare dell'Etruria e del Lazio Schroder ISF QEP Global BlendCaja De Ahorros Del Mediterraneo Schroder ISF QEP Global CoreChina Animal Healthcare Schroder ISF QEP Global Emerging MarketsChina Lumena New Materials Schroder ISF QEP Global Active ValueChina Lumena New Materials Schroder ISF QEP Global QualityChina Lumena New Materials Schroder ISF QEP Global Emerging MarketsChina Lumena New Materials Schroder ISF QEP Global BlendChina Lumena New Materials Schroder ISF Global Multi-Asset IncomeChina Lumena New Materials Schroder ISF Global Value PlusChina Lumena New Materials Schroder ISF QEP Global Absolute *

China Taifeng Beddings Schroder ISF QEP Global Active ValueChina Taifeng Beddings Schroder ISF QEP Global Emerging MarketsChina Taifeng Beddings Schroder ISF QEP Global Value PlusCorp GEO Schroder ISF QEP Global Active ValueCorp GEO Schroder ISF QEP Global Emerging MarketsCorp GEO Schroder ISF QEP Global Value PlusIrish Bank Resolution Corporation Schroder ISF QEP Global CoreJurong Technologies Industrial Schroder ISF QEP Global Active ValueLongtop Financial Technologies ADR Schroder ISF Hong Kong EquityNeo Schroder ISF QEP Global Emerging MarketsOw Bunker Schroder ISF European Smaller CompaniesOw Bunker Schroder ISF Global Smaller CompaniesParmalat Finanziaria Schroder ISF EURO EquityParmalat Finanziaria Schroder ISF Italian EquityParmalat Finanziaria Schroder ISF European Equity AlphaPeace Mark Schroder ISF European Equity AlphaSafeway Schroder ISF Global RecoverySafeway (New York) Schroder ISF Global RecoverySNS Bank RegS 11,25% perpetual Schroder ISF Global High YieldSNS Bank RegS 11,25% perpetual Schroder ISF EURO High YieldSNS Bank NV 6.25% 26/10/2020 Schroder ISF Global BondSNS REAAL Schroder ISF QEP Global Active ValueSNS REAAL Schroder ISF QEP Global BlendSNS REAAL Schroder ISF QEP Global Absolute *

Sound Global Schroder ISF Emerging AsiaSound Global Schroder ISF Greater ChinaSound Global Schroder ISF China OpportunitiesUrbi Desarrollos Urbanos Schroder ISF QEP Global Active ValueUrbi Desarrollos Urbanos Schroder ISF QEP Global Emerging MarketsUrbi Desarrollos Urbanos Schroder ISF QEP Global Value PlusYa Hsin Industrial Schroder ISF QEP Global Active Value




Net Asset Value (cont)

Valuation of the Assets of the Company (cont)

Additionally, Greek securities were fair valued as at 30 June 2015. The list of securities together with the haircut amounts are disclosed in thefollowing table:

Fund Security Description Currency Haircut Amount

Schroder ISF Emerging EuropeHellenic Telecommunications Organization (895,045)JUMBO (551,026)National Bank of Greece (1,354,120)Piraeus Bank (843,997)

EUR (3,644,188)Schroder ISF Emerging Markets

Hellenic Telecommunications Organization (829,801)National Bank of Greece (1,790,926)

USD (2,620,727)Schroder ISF European Equity Yield

Athens Water Supply & Sewage (1,205,951)EUR (1,205,951)

Schroder ISF Global RecoveryHellenic Exchanges - Athens Stock Exchange (920,651)Hellenic Telecommunications Organization (240,597)OPAP (251,108)

USD (1,412,356)Schroder ISF European Equity Alpha

Mytilineos (1,871,262)EUR (1,871,262)

Schroder ISF QEP Global Active ValueJUMBO (59,195)

USD (59,195)Schroder ISF QEP Global Blend

JUMBO (7,529)Metka (11,301)

USD (18,830)Schroder ISF QEP Global Emerging Markets

Athens Water Supply & Sewage (20,480)JUMBO (61,179)Metka (46,577)OPAP (269,825)

USD (398,061)Schroder ISF QEP Global Value Plus

JUMBO (24,420)USD (24,420)

Schroder ISF QEP Global Absolute *

JUMBO (2,166)Metka (1,707)

USD (3,873)

Fair Value Pricing

In accordance with the provisions of the current prospectus, fair value pricing may be implemented to protect the interests of the Company’sshareholders against market timing practices. Accordingly, if a Fund is primarily invested in markets that are closed for business at the time the Fundis valued, the Directors may, during periods of market volatility and by derogation from the provisions above under ‘Calculation of Net Asset Valueper share’, cause the Fund Administrator to allow for the Net Asset Value per share to be adjusted to reflect more accurately the fair value of theFund’s investments at the point of valuation.

The level of adjustment is based upon the movement in a chosen surrogate up until the point of valuation, provided that such movement exceedsthe threshold as determined by the Directors for the relevant Fund. The surrogate will usually be in the form of a futures index but might also be abasket of securities, which the Directors believe is strongly correlated to and representative of the performance of the Fund.Where an adjustment is made as per the foregoing, it is applied consistently to all classes of shares in the same Fund.

During the period under review, fair value pricing was applied to 21 Funds. The Directors, however, reserve the right to extend the implementation offair value pricing in respect of other Funds whenever they deem it appropriate.




Fair Value Pricing (cont)

The Funds in relation to which fair value pricing was applied during the period under review as well as details of the relevant reference indices,thresholds and surrogates are shown below:

Fund Threshold Surrogate

Schroder ISF Global Climate Change Equity 0.50% CME S&P 500 Index FuturesSchroder ISF Global Demographic Opportunities 0.50% CME S&P 500 Index FuturesSchroder ISF Global Dividend Maximiser 0.50% CME S&P 500 Index FuturesSchroder ISF Global Energy * 0.50% CME S&P 500 Index FuturesSchroder ISF Global Equity 0.50% CME S&P 500 Index FuturesSchroder ISF Global Equity Alpha 0.50% CME S&P 500 Index FuturesSchroder ISF Global Equity Yield 0.50% CME S&P 500 Index FuturesSchroder ISF Global Property Securities * 0.50% CME S&P 500 Index FuturesSchroder ISF Global Smaller Companies 0.50% CME S&P 500 Index FuturesSchroder ISF Japanese Equity 0.50% CME Yen Denominated Nikkei 225 Index FutureSchroder ISF Japanese Equity Alpha 0.50% CME Yen Denominated Nikkei 225 Index FutureSchroder ISF Japanese Opportunities 0.50% CME Yen Denominated Nikkei 225 Index FutureSchroder ISF Japanese Smaller Companies 0.50% CME Yen Denominated Nikkei 225 Index FutureSchroder ISF Latin American * 0.50% CME S&P 500 Index FuturesSchroder ISF QEP Global Active Value 0.50% CME S&P 500 Index FuturesSchroder ISF QEP Global Blend ** 0.50% CME S&P 500 Index FuturesSchroder ISF QEP Global Core 0.50% CME S&P 500 Index FuturesSchroder ISF QEP Global Quality 0.50% CME S&P 500 Index FuturesSchroder ISF US Large Cap 0.50% CME S&P 500 Index FuturesSchroder ISF US Small & Mid-Cap Equity 0.50% CME S&P 500 Index FuturesSchroder ISF US Smaller Companies 0.50% CME S&P 500 Index Futures

On 30 June 2015, the last working date of the period under review, the following Funds were adjusted:

Fund Currency Total Adjustment

Schroder ISF Global Climate Change Equity USD 694,431Schroder ISF Global Demographic Opportunities USD 129,244Schroder ISF Global Dividend Maximiser USD 12,704,372Schroder ISF Global Equity USD 252,897Schroder ISF Global Equity Alpha USD 4,071,246Schroder ISF Global Equity Yield USD 1,418,605Schroder ISF Global Smaller Companies USD 1,162,544Schroder ISF Japanese Equity JPY 2,740,570,315Schroder ISF Japanese Equity Alpha JPY 49,476,607Schroder ISF Japanese Opportunities JPY 789,823,704Schroder ISF Japanese Smaller Companies JPY 251,005,755Schroder ISF QEP Global Active Value USD 5,852,998Schroder ISF QEP Global Blend USD 1,447,318Schroder ISF QEP Global Core USD 5,359,738Schroder ISF QEP Global Quality USD 7,055,585Schroder ISF US Large Cap USD 8,478,133Schroder ISF US Small & Mid-Cap Equity USD 8,646,227Schroder ISF US Smaller Companies USD 2,919,789

Exchange Rates

The exchange rates used for the calculation of the combined total in Eur of the financial Statement as at 30 June 2015 are:1 EUR = 1.121339949 USD;1 EUR = 0.711600425 GBP;1 EUR = 1.043171341 CHF;1 EUR = 137.268829882 JPY;1 EUR = 8.693019755 HKD;1 EUR = 6.956905179 RMB.

Swing Pricing Adjustment

A Fund may suffer dilution of the Net Asset Value per Share due to investors buying or selling Shares in a Fund at a price that does not reflect thedealing and other costs that arise when security trades are undertaken by the Investment Manager to accommodate cash inflows or outflows.



* Fund was removed from the program on 4 May 2015.** Fund was added to the program on 19 January 2015.

Swing Pricing Adjustment (cont)In order to counter this impact, a Swing Pricing mechanism may be adopted to protect the interests of Shareholders of the Fund. If on any ValuationDate, the aggregate net transactions in Shares of a Fund exceed a pre-determined threshold, as determined and reviewed for each Fund on aquarterly basis by the Management Company, the Net Asset Value per Share may be adjusted upwards or downwards to reflect net inflows and netoutflows respectively.

The net inflows and net outflows is determined by the Management Company based on the latest available information at the time of calculation ofthe Net Asset Value per Share. The Swing Pricing mechanism may be applied across all Funds. The extent of the price adjustment will be set by theManagement Company to reflect dealing and other costs. Such adjustment may vary from Fund to Fund and will not exceed 2% of the original NetAsset Value per Share.

The swing pricing mechanism has been applied to the Company’s Funds since 12 January 2009.

On 30 June 2015, the last working day of the period under review, swing pricing adjustments were applied to 3 Schroder ISF Funds. The officialNet Asset Values per share of those Funds following the application of the swing pricing adjustment on that date are shown in the following table. Allother financial information stated in this report is shown before any adjustments for swing pricing.

Schroder ISF European Equity (Ex UK)Schroder ISF Emerging Market Local

Currency Bond Schroder ISF US Large Cap

EUR USD USD

Net Asset Value per Share (including swing pricing adjustment)as at 30 June 2015Class A Acc - 85.37 116.55Class B Acc - 84.17 103.33Class C Acc - 86.72 134.62Class E Acc - 86.87 -Class I Acc - 88.61 153.39Class S Acc - - 135.25Class A1 Acc - 84.15 106.67Class B1 Acc - - 93.43Class A Dis 116.69 - 114.02Class B Dis - 69.38 -Class C Dis 118.68 - 127.57Class I Dis - 84.64 -Class S Dis 117.69 - 134.15Class A1 Dis - 69.41 -Class A Acc (EUR) - - 103.69Class B Acc (EUR) - - 92.13Class C Acc (EUR) - - 119.42Class Z Acc (EUR) - - 119.72Class A1 Acc (EUR) - - 94.91Class A Acc (NOK) - - 899.53Class A Acc (GBP) - 87.51 -Class A Acc EUR Hedged - 84.00 151.80Class B Acc EUR Hedged - 82.77 144.12Class C Acc EUR Hedged - 85.29 160.89Class E Acc EUR Hedged - 85.36 -Class I Acc EUR Hedged - 87.18 173.28Class Z Acc EUR Hedged - - 161.22Class A1 Acc EUR Hedged - 82.78 143.12Class A Dis (GBP) 99.96 - 70.23Class C Dis (GBP) 101.01 - -Class A Dis GBP Hedged 117.22 - -Class C Dis GBP Hedged 118.50 - -

Taxation

The Company is not subject to any taxes in Luxembourg on income or capital gains. The only tax to which the Company in Luxembourg is subjectis the ‘taxe d’abonnement’ to a rate of 0.05% per annum based on the net asset value of each Fund at the end of the relevant quarter, calculatedand paid quarterly. In respect of any Share Class or Fund which comprises only institutional Investors (within the meaning of Article 174 of the Law),the tax levied will be at the rate of 0.01% per annum.

Changes in the Funds

A list specifying the total purchases and sales for each Fund, which took place during the period under review, may be obtained free of charge uponrequest at the Company’s registered office.



Transactions made for a Purpose other than Hedging

In accordance with the provisions of the current prospectus, the Company may, for a purpose other than hedging, purchase and sell futurescontracts, options on any kind of financial instruments and equity swaps provided that the Company will only enter into equity swap transactionswith highly rated financial institutions specialised in this type of transactions.

Securities Lending

There has been no securities lending activity on the Company’s Funds since December 2012.

Disclosure of Transaction Costs

The transaction costs are broker commission fees and taxes related to the purchase and sale of transferable securities. The transaction costs areshown net of the corresponding elements of the swing pricing factors that were applied when net flows in a Fund exceeded 1% on any businessday during the period under review. Bond funds will generally show the figure of zero as the broker commission fees are included in the spread,which is excluded from the calculation pursuant to Annex I, Schedule B, Chapter V of Directive 2009/65/EC of the European Parliament.

The transaction costs for the period under review are as follows:

Funds Currency Transaction costs

Schroder ISF Asia Pacific Property Securities USD 18,892Schroder ISF Asian Bond Absolute Return USD -Schroder ISF Asian Convertible Bond USD -Schroder ISF Asian Diversified Growth USD 2,625Schroder ISF Asian Dividend Maximiser USD 77,253Schroder ISF Asian Equity Yield USD 1,345,552Schroder ISF Asian Local Currency Bond USD -Schroder ISF Asian Opportunities USD 659,397Schroder ISF Asian Smaller Companies USD 147,096Schroder ISF Asian Total Return USD 744,318Schroder ISF BRIC (Brazil, Russia, India, China) USD 715,196Schroder ISF China Opportunities USD 986,927Schroder ISF Emerging Asia USD 604,461Schroder ISF Emerging Europe EUR 448,465Schroder ISF Emerging Market Bond USD -Schroder ISF Emerging Market Corporate Bond USD -Schroder ISF Emerging Market Local Currency Bond USD -Schroder ISF Emerging Markets USD 1,529,419Schroder ISF Emerging Markets Debt Absolute Return USD -Schroder ISF Emerging Multi-Asset Income * USD 7,419Schroder ISF EURO Bond EUR -Schroder ISF EURO Corporate Bond EUR -Schroder ISF EURO Credit Conviction EUR -Schroder ISF EURO Equity EUR 1,431,402Schroder ISF EURO Government Bond EUR -Schroder ISF EURO High Yield EUR -Schroder ISF EURO Liquidity EUR -Schroder ISF EURO Short Term Bond EUR -Schroder ISF European Alpha Absolute Return EUR 37,758Schroder ISF European Dividend Maximiser EUR 560,319Schroder ISF European Equity (ex UK) EUR 50,240Schroder ISF European Equity Absolute Return EUR 100,038Schroder ISF European Equity Alpha EUR 49,254Schroder ISF European Equity Focus EUR 11,521Schroder ISF European Equity Yield EUR 28,838Schroder ISF European Large Cap EUR 98,448Schroder ISF European Opportunities EUR 121,890Schroder ISF European Small & Mid-Cap Value EUR -Schroder ISF European Smaller Companies EUR 135,084Schroder ISF European Special Situations EUR 387,583Schroder ISF European Total Return EUR 14,836Schroder ISF Frontier Markets Equity USD 1,447,058Schroder ISF Global Bond USD -Schroder ISF Global Climate Change Equity USD 80,378Schroder ISF Global Conservative EUR 3,179Schroder ISF Global Conservative Convertible Bond USD -Schroder ISF Global Convertible Bond USD -Schroder ISF Global Corporate Bond USD -Schroder ISF Global Credit Duration Hedged EUR -




Disclosure of Transaction Costs (cont)

Funds Currency Transaction costs

Schroder ISF Global Demographic Opportunities USD 15,865Schroder ISF Global Diversified Growth EUR 69,622Schroder ISF Global Dividend Maximiser USD 1,306,502Schroder ISF Global Dynamic Balanced EUR 51,063Schroder ISF Global Emerging Market Opportunities USD 1,049,030Schroder ISF Global Emerging Markets Smaller Companies USD 41,701Schroder ISF Global Energy USD 260,740Schroder ISF Global Equity USD 26,495Schroder ISF Global Equity Alpha USD 391,683Schroder ISF Global Equity Yield USD 26,454Schroder ISF Global High Income Bond USD -Schroder ISF Global High Yield USD -Schroder ISF Global Inflation Linked Bond EUR -Schroder ISF Global Managed Currency USD -Schroder ISF Global Multi-Asset Allocation USD 15,574Schroder ISF Global Multi-Asset Income USD 1,192,902Schroder ISF Global Property Securities USD 71,494Schroder ISF Global Recovery USD 19,450Schroder ISF Global Small Cap Energy USD 25,113Schroder ISF Global Smaller Companies USD 170,803Schroder ISF Global Tactical Asset Allocation USD 11,304Schroder ISF Global Unconstrained Bond USD -Schroder ISF Greater China USD 599,902Schroder ISF Hong Kong Dollar Bond HKD -Schroder ISF Hong Kong Equity HKD 3,633,580Schroder ISF Indian Equity USD 109,395Schroder ISF Indian Opportunities USD 34,138Schroder ISF Italian Equity EUR 49,610Schroder ISF Japan DGF JPY 805,915Schroder ISF Japanese Equity JPY 57,015,178Schroder ISF Japanese Equity Alpha JPY 510,032Schroder ISF Japanese Opportunities JPY 15,312,006Schroder ISF Japanese Smaller Companies JPY 6,370,709Schroder ISF Korean Equity USD 18,361Schroder ISF Latin American USD 251,660Schroder ISF Middle East USD 177,135Schroder ISF Multi-Manager Global Diversity USD -Schroder ISF QEP Global Absolute * USD 974Schroder ISF QEP Global Active Value USD 586,572Schroder ISF QEP Global Blend USD 93,526Schroder ISF QEP Global Core USD 247,922Schroder ISF QEP Global Emerging Markets USD 357,140Schroder ISF QEP Global Quality USD 448,867Schroder ISF QEP Global Value Plus USD 222,454Schroder ISF RMB Fixed Income RMB -Schroder ISF Strategic Beta 10 USD 6,201Schroder ISF Strategic Bond USD -Schroder ISF Strategic Credit GBP -Schroder ISF Swiss Equity CHF 27,628Schroder ISF Swiss Equity Opportunities CHF 13,588Schroder ISF Swiss Small & Mid Cap Equity CHF 50,302Schroder ISF Taiwanese Equity USD -Schroder ISF UK Equity GBP -Schroder ISF UK Opportunities GBP 51,309Schroder ISF US Dollar Bond USD -Schroder ISF US Dollar Liquidity USD -Schroder ISF US Large Cap USD 543,195Schroder ISF US Small & Mid Cap Equity USD 572,105Schroder ISF US Smaller Companies USD 210,442Schroder ISF Wealth Preservation EUR EUR 14,943Schroder ISF Wealth Preservation USD USD -

Investing in Russian securities

Those Funds with an investment objective that allows investment in Russian securities may invest directly in Russian securities that are traded onthe Moscow Exchange. Securities traded on the Russian Trading Stock Exchange can be treated as investments in securities dealt in on aRegulated Market.




Investment Restriction

To ensure eligibility for the French Plan d’Epargne en Actions (PEA), Schroder ISF EURO Equity, Schroder ISF European Dividend Maximiser,Schroder ISF European Equity Focus, Schroder ISF European Large Cap, Schroder ISF UK Equity and Schroder ISF UK Opportunities will invest atleast 75% of their assets in equity securities issued by companies which have their head office in the European Union, or in an EEA state that hassigned a tax agreement with France, including a clause on combating fraud and tax avoidance. Schroder ISF European Equity (Ex UK) and SchroderISF European Opportunities are no longer eligible for the PEA as from 1 April 2015.

Information for Residents of the Hong Kong SAR

Registration of Funds

On 30 June 2015, all the Funds of the Company, except for those indicated in the table below were registered for sale in Hong Kong SAR.In relation to the Funds that were registered in Hong Kong SAR, only A, A1, B1 and D shares were available for retail investors.

Funds not registered for sale in Hong Kong SARSchroder ISF Asian Convertible BondSchroder ISF Asian Dividend MaximiserSchroder ISF Emerging Market BondSchroder ISF Emerging Market Corporate BondSchroder ISF Emerging Market Local Currency BondSchroder ISF Emerging Multi-Asset Income *Schroder ISF EURO Credit ConvictionSchroder ISF EURO High YieldSchroder ISF European Alpha Absolute ReturnSchroder ISF European Dividend MaximiserSchroder ISF European Equity (ex UK)Schroder ISF European Equity Absolute ReturnSchroder ISF European Equity FocusSchroder ISF European Equity YieldSchroder ISF European OpportunitiesSchroder ISF European Small & Mid-Cap ValueSchroder ISF European Special SituationsSchroder ISF European Total ReturnSchroder ISF Global ConservativeSchroder ISF Global Conservative Convertible BondSchroder ISF Global Convertible BondSchroder ISF Global Diversified GrowthSchroder ISF Global Dividend MaximiserSchroder ISF Global Dynamic BalancedSchroder ISF Global Emerging Markets Smaller CompaniesSchroder ISF Global High Income BondSchroder ISF Global Multi-Asset AllocationSchroder ISF Global RecoverySchroder ISF Global Small Cap EnergySchroder ISF Global Tactical Asset AllocationSchroder ISF Global Unconstrained BondSchroder ISF Indian OpportunitiesSchroder ISF Italian EquitySchroder ISF Japan DGFSchroder ISF Multi-Manager Global DiversitySchroder ISF QEP Global Absolute *Schroder ISF QEP Global BlendSchroder ISF QEP Global CoreSchroder ISF QEP Global Emerging MarketsSchroder ISF QEP Global Value PlusSchroder ISF RMB Fixed IncomeSchroder ISF Strategic Beta 10Schroder ISF Strategic CreditSchroder ISF Swiss EquitySchroder ISF Swiss Equity OpportunitiesSchroder ISF Swiss Small & Mid Cap EquitySchroder ISF UK OpportunitiesSchroder ISF Wealth Preservation EURSchroder ISF Wealth Preservation USD




Information for Residents of the Hong Kong SAR (cont)

Funds not registered for sale in Hong Kong SAR (cont)

Soft Commission Arrangements

Pursuant to the requirements of the Hong Kong Securities and Futures Commission regulations, the following statement is made:Soft commission arrangements have been undertaken in respect of the Company. Services which are paid for through or by soft commission werein majority limited to the following areas:a) research, analysis or price information including computer or other information facilities;b) portfolio valuations;c) performance measurement.

Transactions with Connected Persons

The Company has entered into agreements and arrangements with Schroder Investment Management Limited and its affiliates, under which amanagement fee, performance fee and a transfer agency fee are payable. These agreements and arrangements have been entered into in theordinary course of business and on normal commercial terms. The details of the management fees and performance fees are set out in the Notes tothe Financial Statements.In addition, the Management Company is entitled to receive the customary charges for its services as administration agent, coordinator, domiciliaryagent, global distributor, principal paying agent and registrar and transfer agent. These fees accrue daily at an annual rate of up to 0.4% byreference to the Net Asset Value of the relevant Fund and are paid monthly in arrears.Further details on fees payable by the Company can be found in the current prospectus. No transactions of the Company were effected through abroker who is a connected person of the Management Company, the Investment Adviser, or the Directors of the Company.

Directors’ Fees

Each of the following Independent Directors receives in remuneration the amount of EUR 20,000 per annum:Marie-Jeanne Chevremont, Daniel de Fernando Garcia and Georges-Arnaud Saier.The remaining directors have waived their right to remuneration.

Expense Subsidy

The administration fees, custodian fees, distribution fees, management fees and statutory fees are calculated and accrued daily by reference to theNet Asset Value of the Funds and are paid monthly. These fees were monitored to ensure the total expenses incurred were not deemed to besignificant relative to the Net Asset Value of the Funds (above threshold agreed by the Board of Directors).The TER cap for Schroder ISF Global Climate Change Equity equals 0.88% for IZ Acc share classes. For Schroder ISF Global Diversified Growth,the TER cap equals 0.03% for I Acc share classes and 0.67% for X Acc share classes. For Schroder ISF Strategic Beta 10, the TER cap equals0.10% for I Acc share classes.For Schroder ISF Asian Opportunities X Acc share class, Schroder ISF Global Multi-Asset Allocation* C Acc and A1 Acc share classes, SchroderISF US Dollar Liquidity A Acc, A1 Acc, B Acc share classes, Schroder ISF QEP Global Emerging Markets A Acc, A1 Acc, C Acc, I Acc, Z Acc, Z Disshare classes and Schroder ISF QEP Global Value Plus I Acc share class, the actual TER were lower than the TER cap.

Management Fees

The Investment Managers are entitled to receive management fees for their services, which are calculated and accrued daily by reference to the NetAsset Value of the Funds and are paid monthly. No management fees are payable out of the net assets for I and J share classes, however theInvestors are charged directly by Schroders. The actual rates payable as at 30 June 2015, which vary from Fund to Fund and from share class toshare class are set out in the following tables:

Fund * A Acc A1 Acc B Acc B1 Acc C Acc D Acc E Acc I Acc IZ Acc J Acc R Acc S Acc X Acc Z Acc

% % % % % % % % % % % % % %

Mainstream Equity FundsSchroder ISF Asian Opportunities 1.50 1.50 1.50 - 0.75 - - - - - - 0.375 0.60 -Schroder ISF EURO Equity 1.50 1.50 1.50 1.50 0.75 - - - - - - - - -Schroder ISF European Large Cap 1.25 1.50 1.25 - 0.75 - - - - - - - - 0.625Schroder ISF Global Equity 1.25 1.50 1.25 - 0.75 - - - - - - - - 0.75Schroder ISF Italian Equity 1.25 1.50 1.25 1.50 0.75 - - - - - - - - -Schroder ISF Japanese Equity 1.25 1.50 1.25 1.50 0.75 - - - - - - - - 0.625Schroder ISF Swiss Equity 1.25 1.50 1.25 1.50 0.75 - - - - - - - - -Schroder ISF UK Equity 1.25 1.50 1.25 1.50 0.75 - - - - - - 0.375 - 0.625



* For the multi-currency, hedged and duration hedged classes, the rate of the management fees is the same as the rate applicable to the base currency equivalent classes.

Management Fees (cont)


% % % % % % % % % % % % % %

Mainstream Equity Funds (cont)Schroder ISF US Large Cap 1.25 1.50 1.25 1.50 0.75 - - - - - - 0.375 - 0.625

Specialist Equity FundsSchroder ISF Asia Pacific PropertySecurities 1.50 1.50 1.50 - 1.00 - - - - - - - - 0.75Schroder ISF Asian Dividend Maximiser 1.50 - - - 0.75 - - - - - - - - -Schroder ISF Asian Equity Yield 1.50 1.50 1.50 - 1.00 - - - - - - 0.50 - -Schroder ISF Asian Smaller Companies 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Asian Total Return 1.50 1.50 1.50 - 1.00 - - - - - - 0.50 - -Schroder ISF BRIC (Brazil, Russia, India,China) 1.50 1.50 1.50 - 1.00 - - - - - - 0.50 - -Schroder ISF China Opportunities 1.50 1.50 1.50 - 1.00 1.50 - - - - - - - -Schroder ISF Emerging Asia 1.50 1.50 1.50 1.50 1.00 - - - 0.75 - - - - 0.75Schroder ISF Emerging Europe 1.50 1.50 1.50 1.50 1.00 - - - - - - - - -Schroder ISF Emerging Markets 1.50 1.50 1.50 1.50 1.00 - - - - - - 0.50 1.00 -Schroder ISF European DividendMaximiser 1.50 1.50 1.50 - 1.00 - - - - - - - - 0.75Schroder ISF European Equity Focus 1.50 - - - 1.00 - - - - - - - - 0.75Schroder ISF European Equity Yield 1.50 1.50 1.50 - 1.00 - - - - - - - - 0.75Schroder ISF European Opportunities 1.50 1.50 1.50 - 0.75 - - - - - - - - -Schroder ISF European SmallerCompanies 1.50 1.50 1.50 - 1.00 - - - - - - 0.50 - 0.75Schroder ISF European Special Situations 1.50 1.50 1.50 - 1.00 - - - - - - 0.50 - -Schroder ISF European Total Return 1.50 1.50 1.50 - 1.00 - 0.50 - - - - - - 0.75Schroder ISF Frontier Markets Equity 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Global Climate ChangeEquity 1.50 1.50 1.50 - 1.00 - - - 0.75 - - - - 0.75Schroder ISF Global DemographicOpportunities 1.50 - - - 1.00 - - - - - - - - 0.75Schroder ISF Global Dividend Maximiser 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Global Emerging MarketOpportunities 1.50 1.50 1.50 - 1.00 1.50 - - - - - - - -Schroder ISF Global Emerging MarketsSmaller Companies 1.50 - 1.50 - 1.00 - - - - - - - - -Schroder ISF Global Energy 1.50 1.50 1.50 - 1.00 - - - - - - - - 0.75Schroder ISF Global Equity Yield 1.50 1.50 1.50 - 1.00 - - - - - - - - 0.75Schroder ISF Global Property Securities 1.50 1.50 1.50 - 1.00 - - - - - - - - 0.75Schroder ISF Global Recovery 1.50 - 1.50 - 0.75 - 0.375 - - - - - - -Schroder ISF Global Small Cap Energy 1.50 - - - 1.00 - - - - - - - - -Schroder ISF Global Smaller Companies 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Greater China 1.50 1.50 1.50 1.50 1.00 - - - - - - - - -Schroder ISF Hong Kong Equity 1.50 1.50 1.50 - 1.00 1.50 - - - - - - - -Schroder ISF Indian Equity 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Indian Opportunities 1.50 - - - 0.75 - 0.375 - - - - - - -Schroder ISF Japanese Opportunities 1.50 1.50 - - 1.00 - - - - - - - - -Schroder ISF Japanese SmallerCompanies 1.50 1.50 1.50 1.50 1.00 - - - - - - 0.50 - -Schroder ISF Korean Equity 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Latin American 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Middle East 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Swiss Equity Opportunities 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Swiss Small & Mid CapEquity 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF Taiwanese Equity 1.50 1.50 1.50 - 1.00 - - - - - - - - -Schroder ISF UK Opportunities - - - - 0.75 - - - - - - - - -Schroder ISF US Small & Mid-Cap Equity 1.50 1.50 1.50 - 1.00 - - - - - - 0.50 1.00 0.75Schroder ISF US Smaller Companies 1.50 1.50 1.50 - 1.00 - - - - - - - - -

Style Equity FundsSchroder ISF European Small & Mid-CapValue 1.50 - - - 1.00 - - - - - - - - 0.75

Alpha Equity FundsSchroder ISF European Equity Alpha 1.50 1.50 1.50 - 1.00 - - - - - - - 0.75Schroder ISF Global Equity Alpha 1.50 1.50 1.50 1.50 1.00 - - - 0.75 - - - 0.60 0.75Schroder ISF Japanese Equity Alpha 1.50 1.50 1.50 - 1.00 - - - - - 0.50 - 0.75

Quantitative Equity FundsSchroder ISF QEP Global Active Value 1.25 1.50 1.25 1.50 1.00 - - - - - - 0.50 - 0.625



* For the multi-currency, hedged and duration hedged classes, the rate of the management fees is the same as the rate applicable to the base currency equivalent classes.

Management Fees (cont)


% % % % % % % % % % % % % %

Quantitative Equity Funds (cont)Schroder ISF QEP Global Blend 1.25 - - - 1.00 - - - - - - 0.50 - 0.625Schroder ISF QEP Global Core - - - - 0.275 - - - - - - - - -Schroder ISF QEP Global EmergingMarkets 1.50 1.50 - - 0.75 - - - - - - - - 0.75Schroder ISF QEP Global Quality 1.25 1.50 1.25 - 1.00 - - - - - - 0.50 - 0.625Schroder ISF QEP Global Value Plus 1.75 - - - 1.00 - - - - - - - - -

Asset Allocation Funds

Schroder ISF Global Tactical AssetAllocation - - - - 1.00 - - - - - - - - -

Multi-Asset FundsSchroder ISF Asian Diversified Growth 1.50 1.50 - - 1.00 - - - - - - - - -Schroder ISF Emerging Multi-AssetIncome ** 1.25 1.25 - - 0.75 - - - - - - - - -Schroder ISF Global Conservative 1.00 1.00 - - 0.50 - - - - - - - - -Schroder ISF Global Diversified Growth 1.50 1.50 1.50 - 0.75 1.50 - - - - - - 0.65 -Schroder ISF Global Dynamic Balanced 1.25 1.25 1.25 - 0.60 - - - - - - - - -Schroder ISF Global Multi-Asset Allocation 1.25 1.25 1.25 - 0.75 - - - - - - - - -Schroder ISF Global Multi-Asset Income 1.25 1.25 1.25 - 0.75 - - - - - - - - 0.625Schroder ISF Japan DGF - - - - 0.75 - - - - - - - 0.50 -Schroder ISF Strategic Beta 10 - - - - - - - - - - - - -Schroder ISF Wealth Preservation EUR 1.50 1.50 1.50 1.00 0.75 - - - - - - - - -Schroder ISF Wealth Preservation USD 1.50 - - - 0.75 - 0.375 - - - - - - -

Multi-Manager FundsSchroder ISF Multi-Manager GlobalDiversity 1.00 - - - - - - - - - - - - -

Absolute Return Funds

Schroder ISF Asian Bond Absolute Return 1.25 1.25 1.25 1.00 0.75 - - - - - - - - -Schroder ISF Emerging Markets DebtAbsolute Return 1.50 1.50 1.50 1.00 0.90 - - - - - - 0.45 - 0.75Schroder ISF European Alpha AbsoluteReturn 2.00 2.00 2.00 - 1.00 - 0.50 - - - 1.00 - - -Schroder ISF European Equity AbsoluteReturn 1.50 1.50 1.50 - 0.75 - - - - - 1.00 - - -Schroder ISF QEP Global Absolute ** 1.50 - - - 0.75 - - - - - - - - -

Mainstream Bond FundsSchroder ISF EURO Bond 0.75 0.75 0.75 - 0.50 - - - 0.50 - - - - -Schroder ISF EURO Government Bond 0.40 0.40 0.40 - 0.20 - - - - - - - - -Schroder ISF EURO Short Term Bond 0.50 0.50 0.50 - 0.20 - - - - - - - - -Schroder ISF Global Bond 0.75 0.75 0.75 0.75 0.50 - - - - - - - - -Schroder ISF Global Inflation Linked Bond 0.75 0.75 0.75 - 0.50 - - - - - - - - -Schroder ISF Hong Kong Dollar Bond 0.75 0.75 0.75 - 0.50 - - - - - - - - -Schroder ISF US Dollar Bond 0.75 0.75 0.75 0.75 0.50 - - - - - - - - -

Specialist Bond FundsSchroder ISF Asian Local Currency Bond 1.00 1.00 1.00 - 0.60 - - - - - - - - -Schroder ISF EURO Corporate Bond 0.75 0.75 0.75 0.75 0.45 - - - 0.45 - - 0.30 - 0.375Schroder ISF EURO Credit Conviction 1.00 - 1.00 - 0.50 - - - 0.50 - - - - -Schroder ISF EURO High Yield 1.00 - - - 0.60 - - - - - - - - -Schroder ISF Global Corporate Bond 0.75 0.75 0.75 0.75 0.45 - - - - - - 0.30 - -Schroder ISF Global High Income Bond 1.00 1.00 1.00 - 0.60 - - - - - - - - -Schroder ISF Global High Yield 1.00 1.00 1.00 - 0.60 - - - - - - 0.30 - -Schroder ISF Global Unconstrained Bond 1.00 - 1.00 - 0.

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