Global Emerging Markets Fund

Schroder Global Emerging Markets Fund Interim Report and Accounts September 2016 Contents Schroder Global Emerging Markets Fund Fund Information1 ...
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Schroder

Global Emerging Markets Fund Interim Report and Accounts September 2016

Contents Schroder

Global Emerging Markets Fund Fund Information1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Investment objective and policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Financial highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Fund information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Ongoing charges figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Total purchases and sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Review of Investment Activities1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Risk Profile1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Risk and reward indicator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Specific risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Net Asset Value and Comparative Tables1 . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Unit price range . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Net asset value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Fund performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Portfolio Statement1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Summary of Portfolio Transactions1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Largest purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Largest sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Statement of the Manager’s Responsibilities . . . . . . . . . . . . . . . . . . . . . . . .17 Statement of Total Return (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Statement of Change in Net Assets Attributable to Unitholders (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Balance Sheet (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Notes to the Accounts (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Basis of preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 General Information1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Other information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

1 Collectively these comprise the Authorised Fund Manager’s report.

Schroder Global Emerging Markets Fund

Fund Information Investment objective and policy

The fund’s investment objective is to achieve long term capital growth by investing in the emerging markets of the world. The fund will invest in equity or equity related securities (including warrants and convertible securities) and fixed interest securities which provide exposure to emerging markets. The portfolio may also include shares in investment trusts and other closed end funds which are themselves dedicated to investment in emerging markets, as well as in securities of companies which, whilst listed on eligible stock exchanges, conduct a significant proportion of their business in emerging market countries and may, therefore, be expected to participate in their growth. Investment will be in directly held transferable securities. The fund may also invest in collective investment schemes, warrants and money market instruments.

Financial highlights

Fund information

Selling price

30.9.16

31.3.16

% change

A Income units

153.90p

124.40p

23.71

A Accumulation units

166.00p

133.40p

24.44

S Income units

65.04p

52.86p

23.04

Z Income units

64.66p

52.46p

23.26

Z Accumulation units

67.99p

54.43p

24.91

Launch date

11 October 1993

Launch price

50.00p per A Income unit 50.00p per A Accumulation unit

Launch date

8 November 2011

Launch price

50.00p per Z Income unit 50.00p per Z Accumulation unit

Launch date

31 January 2014

Launch price

50.00p per S Income unit

Accounting dates Revenue allocation date

Interim

Final

30 September

31 March 31 May

3

Schroder Global Emerging Markets Fund

Fund Information (continued) Ongoing charges figure

For the period to 30.9.16

For the year to 31.3.16

1.76%1

1.72%

1.76%

1

1.72%

S Income units

0.64%

1

0.60%

Z Income units

1.01%1

0.97%

1

0.97%

A Income units A Accumulation units

Z Accumulation units

1.01%

1 The Ongoing charges figure is annualised based on the fees incurred during the accounting period.

Total purchases and sales

4

For the period to 30.9.16 £000’s

For the year to 31.3.16 £000’s

Total purchases

190,797

300,389

Total sales

245,121

380,951

Schroder Global Emerging Markets Fund

Review of Investment Activities From 31 March 2016 to 30 September 2016, the price of A Accumulation units on a selling price to selling price basis rose 24.44%1. In comparison, the MSCI Emerging Market Index generated a net return of 21.43%2 in sterling terms. 1 The fund and benchmark have different pricing points (intra-day versus closing price respectively) so there may be a performance timing effect at month end. Due to recent market volatility, this timing effect may be larger than usual during specific periods and may have either a positive or negative impact on the NAV. 2 Source: Thomson Reuters Datastream.

Global emerging markets (GEMs) recorded strong returns, driven by global policy stimulus and accommodative central bank policy. A number of markets and their currencies benefitted from investors’ search for higher yield. Brazil posted the highest return, boosted by political developments and expectations for economic recovery. China was also up sharply, in part given some stabilisation in macroeconomic indicators, while energy price stabilisation and optimism towards economic recovery were supportive of Russian equities. The fund outperformed the index on an NAV and a gross underlying basis. Country allocation was positive, notably the underweight to Mexico and a zero weight to Malaysia. Our overweight position in Brazil was also positive but the overweight in Turkey weighed on returns. At a stock level, selection in China contributed the most to excess returns. Selection was also positive in Russia, Korea and India. This was somewhat offset by poor selection in Brazil.

Co-Fund Manager:

Robert Davy Global Emerging Markets Fund Manager and Deputy Head of Emerging Market Equities, based in London Became a Global Emerging Markets fund manager in 2000. Established Schroders’ offices and businesses in Latin America during the 1990s. Based in New York from 1992-4. Founding member of Schroders’ Latin America team, becoming a Latin American fund manager in 1990. In 1988 moved to become a fund manager on the US desk. Joined Schroders in November 1986, initially as an analyst on the UK equity team Investment career commenced upon joining Peat Marwick in 1982, qualifying as a chartered accountant in 1986 MA in History, Magdalene College, Cambridge University

Over the period we were generally positioned in markets expected to benefit from improving global or domestic growth. We maintained overweight positions in Korea and Russia. We took Brazil from neutral to overweight given the potential for looser monetary policy and an improving growth outlook. Valuations are also reasonably attractive. Following an increase in its index weight, China was taken from overweight to neutral. Taken in combination with reasonable global growth, the backdrop for GEMs to perform in is constructive. Developed markets are generally fully valued and in the US in particular there are signs of declining corporate profitability. Meanwhile, GEMs valuations are reasonably attractive and earnings downgrades have stopped. Should the earnings cycle improve and revisions begin to beat expectations, we believe this can sustain GEMs outperformance. Tail risks remain, primarily related to world politics, but improving GEMs fundamentals should continue to attract investor flows. On 12 August 2016 Tom Wilson replaced Allan Conway as a Fund Manager. Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money.

Co-Fund Manager:

Allan Conway Head of Emerging Market Equities, based in London. Joined Schroders in October 2004 Head of Global Emerging Markets for West LB Asset Management from 1998 and then Chief Executive Officer of WestAM (UK) Ltd from 2002. From 1997 he was Head of Global Emerging Markets at LGT Asset Management. Joined Hermes Investment Management in 1992 as Head of Overseas Equities. In 1983 moved to Provident Mutual Life Assurance initially as an Investment Manager and later as Head of Overseas Equities. Investment career commenced in 1980 when he joined the Occidental International Oil Company as an accountant Fellow of the Securities Institute (FSI). Member of the Institute of Chartered Accountants (ACA) BA (Hons) in Economics, York University

5

Schroder Global Emerging Markets Fund

Risk Profile Risk and reward indicator

Lower risk Potentially lower reward

1

2

Higher risk Potentially higher reward

3

4

5

6

7

The risk category was calculated using historical performance data and may not be a reliable indicator of the fund’s future risk profile. The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly. The fund’s risk category is not guaranteed to remain fixed and may change over time. A fund in the lowest category does not mean a risk free investment.

Specific risks

The fund invests in assets which are exposed to currencies other than sterling. Exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. The fund invests in less developed markets which are generally less well regulated than the UK. They may be less liquid and may have less reliable custody arrangements. The fund invests in emerging markets and the Far East. This involves a high degree of risk and should be seen as long term in nature. The fund invests in smaller companies which may be less liquid than larger companies and price swings may therefore be greater than in larger company funds. The fund may invest in unregulated collective investment schemes, which involves a higher degree of risk as they are not regulated by the Financial Conduct Authority (FCA). The funds may not be readily realisable and priced less frequently than listed shares or authorised unit trusts, and therefore price swings may be more volatile. For these reasons, the purchase of units should not normally be regarded as a short term investment.

6

Schroder Global Emerging Markets Fund

Net Asset Value and Comparative Tables Unit price range

Financial year to 31 March

A Income units

A Accumulation units

Highest buying p

Lowest selling p

Highest buying p

Lowest selling p

2014

144.50

117.30

153.60

124.60

2015

143.20

121.00

153.00

129.30

2016

149.60

106.30

160.40

113.90

Financial period to 30 September 2016

157.20

115.30

169.50

124.40

Financial year to 31 March

S Income units

Z Income units

Highest buying p

Lowest selling p

Highest buying p

Lowest selling p

2014

51.81

48.96

60.55

49.43

2015

60.43

50.84

60.11

50.64

2016

62.91

45.08

62.65

44.78

Financial period to 30 September 2016

66.42

48.54

66.04

48.32

Financial year to 31 March

Z Accumulation units Highest buying p

Lowest selling p

2014

61.36

50.08

2015

61.73

52.01

2016

65.01

46.46

Financial period to 30 September 2016

69.44

50.81

7

Schroder Global Emerging Markets Fund

Net Asset Value and Comparative Tables (continued) Net revenue

A Income units pence per unit

A Accumulation units pence per unit

2014

0.7349

0.7785

2015

0.4534

0.4832

2016

0.7283

0.7802

Nil

Nil

S Income units pence per unit

Z Income units pence per unit

2014

0.0247

0.7062

2015

0.8170

0.6029

2016

0.8932

0.6943

Nil

Nil

Financial year to 31 March

Financial period to 30 September 2016

Financial year to 31 March

Financial period to 30 September 2016

Financial year to 31 March 2014

0.7174

2015

0.6200

2016

0.7206

Financial period to 30 September 2016

8

Z Accumulation units pence per unit

Nil

Schroder Global Emerging Markets Fund

Net Asset Value and Comparative Tables (continued) Net asset value As at 31 March

Net asset value £000’s

Net asset value per unit p

Number of units in issue

2014 A Income units

77,888

123.11

63,268,863

605,482

131.56

460,217,575

S Income units

7,922

51.70

15,323,924

Z Income units

9,435

51.50

18,318,429

20,317

52.89

38,411,868

A Income units

102,539

138.93

73,804,941

A Accumulation units

686,640

148.96

460,948,866

S Income units

10,569

58.38

18,103,570

Z Income units

13,201

58.15

22,700,508

Z Accumulation units

36,257

60.34

60,084,222

A Accumulation units

Z Accumulation units 2015

2016 A Income units

92,792

124.16

74,734,446

538,618

133.90

402,239,161

S Income units

7,980

52.19

15,292,044

Z Income units

16,476

51.98

31,697,480

Z Accumulation units

36,137

54.66

66,116,351

A Income units

114,429

154.16

74,225,670

A Accumulation units

595,293

166.26

358,052,535

S Income units

9,475

65.16

14,540,819

Z Income units

17,816

64.78

27,502,361

Z Accumulation units

42,061

68.12

61,747,878

Net asset value per unit p as at 30.9.16

Net asset value per unit p as at 31.3.16

% change

A Income units

154.16

124.16

24.16

A Accumulation units

A Accumulation units

2016 at 30 September

Fund performance

166.26

133.90

24.17

S Income units

65.16

52.19

24.85

Z Income units

64.78

51.98

24.62

Z Accumulation units

68.12

54.66

24.62

Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money.

9

Schroder Global Emerging Markets Fund

Portfolio Statement Holding at Market Value 30.9.16 £000’s

% of net assets

Emerging Markets Funds 1.99% (31.3.16 – 2.04%) Schroder International Selection Fund SICAV Frontier Markets Equity I Accumulation USD 1 2

63,221

7,287

0.93

Schroder International Selection Fund SICAV Global Emerging Markets Smaller Companies I Accumulation USD 1 2

89,470

8,255

1.06

15,542

1.99

Asia China/Hong Kong 27.39% (31.3.16 – 26.12%) AAC Technologies Holdings

380,000

2,940

0.38

3,224,800

16,500

2.12

Alibaba Group Holding ADR

366,543

30,006

3.85

China Construction Bank H

46,723,010

26,666

3.42

AIA Group

China Mengniu Dairy

2,641,000

3,775

0.49

China Mobile

2,821,000

26,264

3.37

China Pacific Insurance Group H

4,434,400

12,610

1.62

32,349,200

18,109

2.33

China Unicom Hong Kong

8,174,000

7,553

0.97

New Oriental Education & Technology Group ADR

329,542

11,718

1.50

Shenzhou International Group Holdings

296,000

1,576

0.20

2,149,600

45,446

5.83

71,446

4,996

0.64

1,308,500

5,221

0.67

213,380

27.39

116,567

1,564

0.20

China Petroleum & Chemical H

Tencent Holdings Yum! Brands Zhuzhou CSR Times Electric H

India 6.71% (31.3.16 – 8.02%) Asian Paints Axis Bank

10

1,941,491

12,180

1.56

HDFC Bank

709,279

12,124

1.56

Hindustan Unilever

399,916

4,026

0.52

Infosys

381,322

4,558

0.58

Maruti Suzuki India

107,897

6,849

0.88

Reliance Industries

259,886

3,259

0.42

Tata Motors

781,621

4,823

0.62

Schroder Global Emerging Markets Fund

Portfolio Statement (continued) Holding at Market Value 30.9.16 £000’s

% of net assets

India (continued) UltraTech Cement

64,072

2,854

0.37

52,237

6.71

Indonesia 0.26% (31.3.16 – 0.74%) Bank Mandiri Persero

3,031,800

2,003

0.26

2,003

0.26

3,584

0.46

3,584

0.46

Kuwait 0.46% (31.3.16 – 0.49%) National Bank of Kuwait

2,378,509

Philippines 0.00% (31.3.16 – 1.00%) South Korea 19.02% (31.3.16 – 19.25%) Amorepacific

26,762

7,277

0.93

CJ CGV

48,320

2,827

0.36

461,031

2,907

0.37

DGB Financial Group E-MART

22,830

2,505

0.32

414,297

8,065

1.04

Hyundai Department Store

26,439

2,190

0.28

Hyundai Mobis

38,275

7,344

0.94

Hyundai Motor

96,869

9,175

1.18

Hyundai Motor Preference

18,214

1,343

0.17

Korea Aerospace Industries

51,001

2,716

0.35

LG

92,563

4,173

0.54

LG Chem

54,999

9,265

1.19

LG Innotek

33,342

1,825

0.23

Medy-Tox

7,388

2,326

0.30

NAVER

18,791

11,585

1.49

NCSoft

26,782

5,532

0.71

Samsung Electronics

40,571

45,317

5.82

Samsung SDI

42,933

2,881

0.37

354,703

9,967

1.28

SK Innovation

21,895

2,471

0.32

SK Telecom

27,623

4,363

0.56

Hana Financial Group

SK Hynix

11

Schroder Global Emerging Markets Fund

Portfolio Statement (continued) Holding at Market Value 30.9.16 £000’s

% of net assets

South Korea (continued) Yuhan

11,055

2,144

0.27

148,198

19.02

Taiwan 12.14% (31.3.16 – 12.54%) Advanced Semiconductor Engineering

5,280,000

4,876

0.63

Cathay Financial Holding

9,458,601

9,303

1.19

Far EasTone Telecommunications

1,301,000

2,364

0.30

826,000

1,710

0.22

Formosa Chemicals & Fibre Formosa Plastics

2,984,000

5,702

0.73

Hon Hai Precision Industry

9,526,525

18,460

2.37

Taiwan Mobile

3,180,000

8,786

1.13

Taiwan Semiconductor Manufacturing

9,677,108

43,373

5.57

94,574

12.14

Thailand 2.15% (31.3.16 – 2.12%) Kasikornbank NVDR

1,897,300

7,903

1.01

Minor International 3

3,308,870

2,867

0.37

PTT Global Chemical NVDR

1,743,800

2,276

0.29

Thai Oil NVDR

2,435,000

3,706

0.48

16,752

2.15

Europe/Middle East/Africa Egypt 0.46% (31.3.16 – 0.43%) Commercial International Bank Egypt

609,360

2,513

0.32

Commercial International Bank Egypt GDR

364,313

1,106

0.14

3,619

0.46

2,658

0.34

2,658

0.34

2,118

0.27

Greece 0.34% (31.3.16 – 0.66%) Hellenic Telecommunications Organization

393,869

Hungary 1.57% (31.3.16 – 1.60%) MOL Hungarian Oil & Gas

12

44,623

Schroder Global Emerging Markets Fund

Portfolio Statement (continued) Holding at Market Value 30.9.16 £000’s

% of net assets

Hungary (continued) OTP Bank

500,216

10,129

1.30

12,247

1.57

11,288

1.45

Poland 0.00% (31.3.16 – 1.44%) Russia 7.94% (31.3.16 – 5.72%) Lukoil ADR

301,170

Mail.Ru Group GDR

265,039

3,577

0.46

MMC Norilsk Nickel ADR

603,174

7,420

0.95

Mobile TeleSystems ADR

280,985

1,661

0.22

Rosneft GDR

1,503,980

6,316

0.81

Sberbank of Russia ADR

3,004,931

21,675

2.78

444,080

9,904

1.27

61,841

7.94

X5 Retail Group GDR

South Africa 3.62% (31.3.16 – 3.50%) Barclays Africa Group

513,679

4,342

0.56

MTN Group

634,909

4,175

0.53

Naspers

126,498

16,821

2.16

Woolworths Holdings

664,487

2,875

0.37

28,213

3.62

Turkey 2.56% (31.3.16 – 2.26%) Akbank TAS

3,383,053

6,970

0.89

KOC Holding

1,828,943

6,048

0.78

Tupras Turkiye Petrol Rafinerileri Turkiye Garanti Bankasi

198,868

2,898

0.37

1,970,212

4,018

0.52

19,934

2.56

8,881

1.14

8,881

1.14

United Arab Emirates 1.14% (31.3.16 – 0.96%) Emaar Properties

5,967,837

13

Schroder Global Emerging Markets Fund

Portfolio Statement (continued) Holding at Market Value 30.9.16 £000’s

% of net assets

Latin American Argentina 0.38% (31.3.16 – 0.28%) Grupo Financiero Galicia ADR

123,460

2,939

0.38

2,939

0.38

834,818

5,913

0.76

BM&FBovespa- Bolsa de Valores Mercadorias e Futuros

1,041,100

4,142

0.53

BR Malls Participacoes

1,141,750

3,309

0.43

435,175

5,722

0.73

CCR

1,627,548

6,602

0.85

Itau Unibanco Holding PREF ADR

2,135,151

18,097

2.32

662,500

2,703

0.35

1,071,860

5,115

0.66

Lojas Renner

375,000

2,183

0.28

Petroleo Brasileiro ADR

464,151

3,373

0.43

Petroleo Brasileiro Preference ADR

642,997

4,158

0.53

Telefonica Brasil PREF ADR

610,141

6,848

0.88

Ultrapar Participacoes

342,916

5,828

0.75

WEG

600,800

Brazil 9.82% (31.3.16 – 6.35%) Banco Bradesco PREF ADR

BRF ADR

Klabin Units Lojas Americanas Preference

2,507

0.32

76,500

9.82

Chile 1.13% (31.3.16 – 1.21%) Banco Santander Chile ADR

180,747

2,890

0.37

Enersis Americas ADR

589,892

3,719

0.48

SACI Falabella

388,895

2,191

0.28

8,800

1.13

Mexico 0.59% (31.3.16 – 2.41%)

14

El Puerto de Liverpool SAB de CV

256,140

2,073

0.27

Grupo Aeroportuario del Pacifico

342,987

2,510

0.32

4,583

0.59

Schroder Global Emerging Markets Fund

Portfolio Statement (continued) Portfolio of investments Net other assets Net assets attributable to unitholders

Market Value £000’s

% of net assets

776,485

99.67

2,589

0.33

779,074

100.00

Unless otherwise stated the above securities are ordinary shares or common stock and admitted to official stock exchange listings or collective investment schemes permitted under the FCA’s Collective Investment Schemes sourcebook (COLL). 1 Collective Investment scheme permitted under the FCA’s COLL, not listed on any exchange. 2 A related party to the fund. 3 Foreign registered. 15

Schroder Global Emerging Markets Fund

Summary of Portfolio Transactions Largest purchases

Largest sales

16

For the six months ended 30 September 2016

Cost £000’s

Axis Bank

11,548

Alibaba Group Holding ADR

9,571

Sberbank of Russia ADR

8,393

Itausa – Investimentos Itau

7,495

Infosys

6,064

Naspers

5,709

BRF ADR

4,713

MTN Group

4,660

NCSoft

4,600

Lukoil ADR

4,542

For the six months ended 30 September 2016

Proceeds £000’s

Sun Pharmaceutical Industries

10,562

Tata Consultancy Services

10,117

Grupo Financiero Banorte SAB de CV

7,933

Itausa – Investimentos Itau

7,623

Woolworths Holdings

6,981

Coway

6,242

HDFC Bank

5,909

Tencent Holdings

5,464

JD.com ADR

5,389

Sasol

5,213

Schroder Global Emerging Markets Fund

Statement of the Manager’s Responsibilities The FCA’s COLL requires the Manager to prepare accounts for each annual and half yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true and fair view of the financial position of the fund and of its net revenue and the net capital gains on the property of the fund for the period. In preparing the accounts the Manager is required to: – select suitable accounting policies and then apply them consistently; – comply with the disclosure requirements of the Statement of Recommended Practice (SORP) for UK Authorised Funds issued by the Investment Management Association (IMA (now the Investment Association (IA))) in May 2014; – follow generally accepted accounting principles and applicable accounting standards; – prepare the accounts on the basis that the fund will continue in operation unless it is inappropriate to do so; – keep proper accounting records which enable it to demonstrate that the accounts as prepared comply with the above requirements; – make judgements and estimates that are prudent and reasonable. The Manager is responsible for the management of the fund in accordance with its Trust Deed, the Prospectus and the COLL and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. The Manager’s report and accounts for the period ended 30 September 2016 were signed on 15 November 2016 on behalf of the Manager by:

J.A. Walker-Hazell Directors

P. Chislett

17

Schroder Global Emerging Markets Fund

Statement of Total Return (unaudited) For the six months ended 30 September 2016 30.9.16 £000’s

30.9.15 £000’s

£000’s

£000’s

Income Net capital gains/(losses) Revenue

144,923

(147,151)

12,844

13,381

Expenses

(5,877)

(6,177)

Net revenue before taxation

6,967

7,204

Taxation

(1,358)

(1,270)

Net revenue after taxation Total return before distributions

5,609

5,934

150,532

(141,217)

(109)

(115)

150,423

(141,332)

Distributions Change in net assets attributable to unitholders from investment activities

Statement of Change in Net Assets Attributable to Unitholders (unaudited) For the six months ended 30 September 2016 30.9.16 £000’s Opening net assets attributable to unitholders 6,279

Amounts payable on cancellation of units

(69,893)

Change in net assets attributable to unitholders from investment activities Unclaimed distributions Closing net assets attributable to unitholders

£000’s

£000’s

692,0031

Amounts receivable on issue of units

Dilution adjustment

30.9.15 £000’s 849,206 20,764 (93,740)

(63,614)

(72,976)

262

392

150,423

(141,332)

0

1

779,074

635,2911

1 The Opening net assets attributable to unitholders for the current period do not equal the Closing net assets attributable to unitholders for the comparative period as they are not consecutive periods.

18

Schroder Global Emerging Markets Fund

Balance Sheet (unaudited) As at 30 September 2016 30.9.16

31.3.16

£000’s

£000’s

776,485

686,024

Debtors

2,564

6,875

Cash and bank balances

3,886

4,847

782,935

697,746

Assets Investments Current assets

Total assets Liabilities Creditors Distribution payable Other creditors Total liabilities Net assets attributable to unitholders

0

(901)

(3,861)

(4,842)

(3,861)

(5,743)

779,074

692,003

19

Schroder Global Emerging Markets Fund

Notes to the Accounts (unaudited) Basis of preparation

The accounts have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the SORP for UK Authorised Funds issued by the IMA in May 2014 and in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)).

Accounting policies

The accounting policies applied are consistent with those of the annual accounts for the year ended 31 March 2016 and are described in those annual accounts.

20

Schroder Global Emerging Markets Fund

General Information Manager Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority

Registrar1 International Financial Data Services Limited IFDS House St Nicholas Lane Basildon Essex SS15 5FS

Investment Adviser Schroder Investment Management Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority

Administration Details Schroders FREEPOST RLTZ-CHSY-HBUT PO Box 1102 Chelmsford Essex CM99 2XX Investor Services 0800 718 777 [email protected] Dealing 0800 718 788 Fax 0870 043 4080

Trustee J.P. Morgan Europe Limited Chaseside Bournemouth BH7 7DA Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority

Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX

1 The Manager has delegated the function of Registrar to International Financial Data Services Limited.

Authorisation

The fund is an authorised unit trust and is constituted pursuant to the COLL and is structured as a trust. The fund is a UCITS scheme for the purpose of the categorisation of the COLL.

Other information

The Prospectus, the Key Investor Information Document and details of investment charges and costs are available on request or can be downloaded from our website www.schroders.co.uk.

21

For further literature please contact Schroder Investor Services on 0800 718 777 or at [email protected], or visit our website at www.schroders.co.uk.

Issued in November 2016 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: 04191730 England. Authorised and regulated by the Financial Conduct Authority. w35641