Various changes of the underlying fund of L38 Schroder Frontier Markets Equity

Before the Effective Date

With effect from the Effective Date

Benchmark of the underlying fund

MSCI Frontier Markets (FM) Index

MSCI Frontier Emerging Markets (FEM) Index (Net TR) with Emerging Markets capped at 10%

Investment objective of the underlying fund

The Fund aims to provide capital growth in excess of the MSCI Frontier Markets (Net TR) index after fees have been deducted over a three to five year period by investing in equity and equity related securities of frontier markets companies.

The Fund aims to provide capital growth in excess of the MSCI Frontier Emerging Markets (FEM) index (Net TR) with Emerging Markets capped at 10% after fees have been deducted over a three to five year period by investing in equity and equity related securities of Frontier Emerging Markets companies.

Investment policy of the underlying fund

The Fund is actively managed and invests at least two-thirds of its assets in equity and equity related securities of frontier markets companies worldwide.
The Fund typically holds 50-70 companies.
'Frontier markets' are countries included in the MSCI Frontier Markets Index or any other recognised frontier markets financial index, or additional countries that the Investment Manager deems to be frontier market countries.
The Fund is managed with reference to material environmental, social and governance factors. This means issues such as climate change, environmental performance, labour standards or board composition that could impact a company’s value may be considered in the assessment of companies.
The Fund may also invest up to one-third of its assets directly or indirectly in other securities (including other asset classes), countries, regions, industries or currencies, Investment Funds, warrants and Money Market Investments, and hold cash. The Fund may use derivatives with the aim of achieving investment gains, reducing risk or managing the Fund more efficiently.
For clarification purpose, this means to exceed a medium to long term return of the stated index after fees have been deducted. The three to five year period is considered as a medium to long term period, and is the period over which an investor should assess the fund’s performance.

The Fund is actively managed and invests at least two-thirds of its assets in equity and equity related securities of Frontier Emerging Markets companies worldwide.
The Fund typically holds 50-70 companies.
'Frontier Emerging markets' are countries included in the MSCI Frontier Emerging Markets (FEM) index or any other recognised frontier markets financial index, or additional countries that the Investment Manager deems to be Frontier Emerging Market countries.
The Fund may also invest up to one-third of its assets directly or indirectly in other securities (including other asset classes), countries, regions, industries or currencies, Investment Funds, warrants and Money Market Investments, and hold cash. The Fund may use derivatives with the aim of achieving investment gains, reducing risk or managing the Fund more efficiently.
For clarification purpose, this means to exceed a medium to long term return of the stated index after fees have been deducted. The three to five year period is considered as a medium to long term period, and is the period over which an investor should assess the Fund’s performance. The stated index’s maximum total exposure to emerging markets is capped at 10% of its total exposure.