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