Schroder Liquid Alternatives IE FIM · 2 Multi-Asset Investments and Portfolio Solutions (MAPS)...
Transcript of Schroder Liquid Alternatives IE FIM · 2 Multi-Asset Investments and Portfolio Solutions (MAPS)...
Schroders Multi-Asset Investments
For Financial Intermediary, Institutional and Consultant Use Only. Not for redistribution under any circumstances.
Alternative Access
Schroder Liquid Alternatives IE FIM
Head of Multi-Assets Products, Americas
Adam Farstrup
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Multi-Asset Investments and Portfolio Solutions (MAPS) Long standing history of partnering with clients
Managing multi-asset mandates since 1947
Diversified business managing outcome-oriented strategies:
– Wealth Preservation, Risk-Controlled Growth, Income, Inflation, Risk-
Mitigation and Advanced Beta
Over 110 investment professionals in London, New York, Zurich, Hong
Kong, Singapore and Sydney
Managing over $115bn of assets for clients globally
Source: Schroders as of June 30, 2016. *Abridged list.
First mandate by country*:
1947 UK
1978 Hong Kong
1980 Switzerland
1990 Australia
2007 USA
2011 Canada
2012 Brazil
2012 China
Intermediary
Institutional
UK
Asia Pacific
Americas
Europe
AUM by region AUM by client type
Investor Outcomes Aligning our resources and thinking with our clients’ investment goals
Source: Schroders. The Multi-Asset team has expressed its own views and opinions and these may change. There is no guarantee that investor outcomes can be achieved.
Investor Outcomes
Wealth preservation Risk-controlled
growth Income Inflation protection Risk mitigation
Risk-based approach
to protecting real
purchasing power while
limiting losses
Delivering long-term
growth with superior
risk-adjusted returns
through diversification
and dynamic asset
allocation
Aims to deliver a
diversified income
stream with global and
regional solutions
Aims to protect
from inflation or
inflation-shocks
Seeks to control overall
risk in a client’s
portfolio of assets or
liabilities
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Inflation Protection
Diversified Growth
Global Multi-Asset Income
Volatility capping
Risk-Managed US Eq
Strategic Beta
Alternative Risk Premia
For certain investors, Advanced Beta strategies offer an efficient means for capturing risk premia through a rules-based approach
Advanced Beta Strategies
0
2
4
6
8
10
31 October 2008 30 September 2015
Risk-Free Rate Duration Risk Premium Credit Risk Premium
Risk premium: expected return for
assuming a source of risk
Risk premia: building blocks of asset
classes
Asset classes: composed of one or more
risk premia
Example: US investment grade credit
Breaking an asset class down into risk premia
From asset classes to Risk Premia Understanding risk and return drivers
Source: Schroders, Datastream, 30 September 2015. US investment grade credit is represented by the BofA Merrill Lynch US Corporate Index
Shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell
4
(Yield %)
Defining Liquid Alternatives
Liquid Alternatives A new tool in the tool kit
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Source:1McKinsey Global Asset Management Growth Cube; Preqin; HFR, 31 July 2014. Does not include retail alternatives (i.e. mutual funds, ETFs, and registered closed end funds).
Passive Long only
active Alternatives
Liquid Alternatives
Access to alternative investment
strategies in a regulated mutual
fund format
Liquid alternatives offer improved
transparency and liquidity
They can offer better risk
adjusted returns
Interesting for portfolio
construction due to reduced
volatility and decorrelation
characteristics
43% growth in liquid alternative
universe over the last 5 years 1
Smart Beta
Liquid alternatives defined Uncorrelated, liquid, transparent and cost efficient
Liquid alternative funds are typically benchmark unconstrained with a total return or absolute return objective.
They may take both long and short positions using leverage (within UCITS limits). They can offer access to
traditional alternatives asset classes in a liquid form.
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Source: Schroders
Liquid Alternative characteristics
Typically benchmark unconstrained
Ability to take long and short positions
Portfolio diversification benefits
Use of leverage
At least twice monthly dealing
Greater transparency
May offer protection in down markets
Reasons to allocate
1 2
Access unique
sources of Alpha
Reduce directional market risk
Strengthen the risk return
profile of a portfolio
4
Enhanced liquidity and transparency compared to
traditional alternatives
3
Equity Fixed Income Other
Core
Small/Mid/Large Cap
Growth/Value/Blend
Sector Specific
Sovereign
Investment Grade
High Yield
Aggregate
Cash
Liquid
Alternatives
Equity diversifiers:
Equity Long Short
Market Neutral
Bond diversifiers:
Absolute Return
Credit Long Short
Relative Value
Portfolio diversifiers:
Event Driven
CTA/Macro
Catastrophe Bonds
Evolution of portfolio construction with liquid alternatives A simple but effective approach to diversification
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Source: Schroders as at 31 May 2016
Schroders AUM breakdown Broad liquid alternatives capability within the firm
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Source: Schroders, as at 31 December 2015
GAIA
Liquid Alternatives
UCITS Funds
Firm AUM
$6bn
$16bn
$148bn
$462bn
Why alternatives? The benefits of low correlation to traditional asset classes
Natural diversification
Traditional ‘diversification’ is not as diversifying as it seems
Risk-based diversification can help, but we can lose sight of expected returns
Alternative investments provide a source of natural diversification in the portfolio, where alternative drivers of
risk are uncorrelated with traditional risk premia
But investing in only one alternative investment is not enough to effectively diversify a portfolio…
Schroder Liquid Alternatives IE FIM provides access to a broad range of liquid alternative strategies,
offering diversification and access for Brazilian investors
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Alternatives Experience
Actively managed portfolio of alternative investments
Strong absolute return with low volatility
Helps solve governance issues with accessing
alternatives
Our investment objective
Diversified Completion Fund Actively managed portfolio of alternative investments
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Source: Schroders, as at 30 June 2016. Rolling 12 month beta measured against an equity comparator comprised 60% FTSE All Share and 40% FTSE World ex UK hedged to
sterling. The provision of this data does not constitute investment advice and should not be relied upon for making investment decisions. Performance has been shown in sterling,
gross of the standard annual management charge of 0.30% p.a. net of the fees and expenses of the underlying funds.
Managing portfolio risk relative to equities
Average beta since inception is 0.15
Property
Event Driven
High Yield Debt
Emerging Market Debt
Credit Arbitrage
Infrastruc-ture
Commodities
Convertible Arbitrage
Alternative Risk Premia
Insurance Linked
Securities
Convertibles Global Macro
Fixed Income Relative Value
Leveraged Loans
CTAs
Absolute return
target of
cash + 4% p.a.
Low sensitivity to
equities
(beta less than 0.3) -1,0
-0,5
0,0
0,5
1,0
2009 2010 2011 2012 2013 2014 2015 2016
Rolling 12 month beta
Breadth of the alternatives universe Cast your net as widely as possible
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Continuously researching the alternatives landscape for new opportunities
Active Asset Allocation Absolute Return Strategies Strategic Alternatives
Commodities
High Yield Debt
Emerging Markets Debt
Leveraged Loans
Convertible Debt
Cash
Currency
Convertible Arbitrage
Global Macro
CTAs
Event Driven
Fixed Income Relative Value
Credit Arbitrage
Global Macro
Insurance-Linked Securities
Property
Infrastructure
Alternative Risk Premia
Source: Schroders
Performance and Risk Risk summary
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Source: Schroders, as at 30 June 2016. Risk is defined as standard deviation of monthly returns. All data since inception of DCF and annualised unless otherwise stated.
DCF Composite
Index
MSCI
World
HFRI FoF
Composite
CDS
Composite
Annualized Return 4.6% 2.4% 0.3% 0.1% 4.0%
Annualized Volatility 4.2% 14.5% 17.5% 5.4% 5.5%
99% C.F. VaR 2.5% 11.0% 15.1% 5.5% 3.8%
% of positive months 63% 57% 51% 60% 56%
Sharpe Ratio 0.93 0.11 -0.02 -0.12 0.60
Maximum Drawdown -9% -38% -53% -21% -10%
Worst Month -2.3% -11.8% -19.0% -6.5% -3.8%
Composite
Index
MSCI
World
HFRI FoF
Composite
CDS
Composite
Alpha 0.3% 0.4% 0.4% 0.2%
Beta 0.17 0.13 0.50 0.40
Correlation 61% 56% 65% 53%
Up Capture Ratio 0.14 0.09 0.87 0.50
Down Capture Ratio 0.16 0.07 0.33 0.25
DCF
Composite Index*
MSCI World
HFRI FoF Composite
CDS Composite**
-1,0%
2,0%
5,0%
0,0% 10,0% 20,0%
Risk (%)
Schroder Liquid Alternatives IE FIM
Mandate’s Profile
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Schroder Liquid Alternatives IE FIM
Investment Objective: seeks high risk-adjusted returns in the long term, with low correlation to
traditional asset classes
Absolute return target
of
5%- 8% p.a.
Low sensitivity to
equities
(beta less than 0.35)
Source: Schroders
Portfolio: seeks to achieve objective by delivering access to a broad range of liquid alternative
strategies drawn from Schroders global platform delivered locally in Brazil
Investment Structure
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Local Vehicle – Global Expertise
Local Currency Hedged FoF
Fund Management: Schroders Brasil
Portfolio Manager: Huang Seen
Fiduciary Administrator and Custodian: BNY Mellon
Weekly liquidity
Schroders Liquid Alternatives
Absolute Return Strategies
Internally and Externally Managed
UCITs Regulatory Framework
Long Short Equity
Long Short Credit
Merge and Arbitrage
Fixed Income Relative Value
Event Driven
CTAs
Sydney Zurich New York London Hong Kong Singapore
Multi-Asset Investments and Portfolio Solutions Team Investment team of over 100 professionals
International Funds’ selection and rebalancing
Local FoF implementation
Investment Process
Internally managed
• Schroder ISF European Equity Absolute Return
• Schroder ISF European Alpha Absolute Return
• Schroder ISF European Total Return
• Schroder ISF QEP Global Value Plus
• Schroder ISF Asian Total Return*
• Schroder AS UK Dynamic Absolute Return
Externally managed
• Schroder GAIA Egerton Equity*
• Schroder GAIA Sirios US Equity
• Schroder GAIA Paulson Merger Arbitrage
• Schroder GAIA Indus PacificChoice
Eligible Funds Weekly or daily liquidity products
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Source: Schroders as at October 2016 * Fund is hard closed. Schroder ISF: Schroder International Selection Fund. Schroder AS: Schroder Alternative Solutions, Schroder IF:
Schroder Investment Fund
Internally managed • Schroder ISF Strategic Bond
• Schroder ISF Asian Bond Absolute Return
• Schroder ISF EMD Absolute Return
Externally managed
• Schroder GAIA BSP Credit
Externally managed • Schroder GAIA BlueTrend
• Schroder GAIA Two Sigma
Diversified Fund
MAPS Manager Selection team Team highlights
Responsible for
– Identification and monitoring of external funds
for MAPS portfolios
– Passive investments, active investments
– Open-ended funds, listed vehicles and
segregated accounts
Veto right for manager decisions
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Source: Schroders
Strong governance framework centred around
monthly Manager Selection Investment Committee
Focus on proprietary research and genuine insights,
not quant-based screening
Benefit from relationships with other allocators
across the Schroder group
Team of four professionals Experience across traditional and alternative asset classes
Martin Blank, CFA
Head of Research, Manager Solutions
Saeed Patel, CFA Jane Turner, CFA Richard Hallos, CFA
Investment Manager Selection Full due diligence performed based on key requirements for a given strategy
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Source: Schroders, as at 30 April 2016
Experience
Track record and skill
Investment process
Integrity
Size
Reputation
Investment
due diligence
Risk management capabilities
Fit with regulatory requirements
– Investment diversification rules
– Asset eligibility
– Market & liquidity risks
Preliminary
regulatory
compatibility
assessment
Initial review of available regulatory, marketing, and personnel materials
Full documentation review covering all key business areas
Onsite visit including thorough validation of all points and processes raised in the documentation review
Operational
due diligence
GAIA Investment Committee
Investment Process Seeking diversification and high risk-adjusted returns
Source: Schroders
Universe Initial
Portfolio
Portfolio
Rebalancing Quarterly
Portfolio
Monitoring
Schroders Product
Range
Minimum AUM
– USD 25 mn
Minimum Experience
– Strategy: 3 years
Minimum Liquidity
– Weekly
Defined Target Capital
Allocation for each
Asset Class/Strategy
(60/30/10) of International
Portfolio
Equally-weighted funds’
allocation within each
strategy type
Local FoF will invest
from 67% to 85% into
International Portfolio.
The Local FoF will be
hedged to BRL using
USD Futures traded at
BM&F
Quarterly Risk
Committee – Schroders
Brazil
Quarterly Multi Asset
Committee Review
Capital and Risk
Allocation Review at
least Quarterly
Risk characteristics of
the underlying fund
strategies will be
reviewed quarterly.
Main parameters:
Quarterly process to
review deviation from
target allocations and
results
Consider addition of
newly available funds
and closure of existing
funds
Future enhancements
possible as universe of
strategies broadens
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Equally weighted with currency hedge
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Performance Simulation
Cumulative Return (Jan/13 – Ago/16)
Source: Quantum Axis., Schroders. As of 31/08/2016 The simulation considers performance of a buy and hold portfolio and foreign exchange hedge simulated via selling futures index USDBRL. THE
INFORMATION IN THIS MATERIAL IS BASED ON TECHNICAL SIMULATION, AND ACTUAL RESULTS MAY BE SIGNIFICANTLY DIFFERENT.
66%
48%
63%
0%
10%
20%
30%
40%
50%
60%
70%
jan-13 abr-13 jul-13 out-13 jan-14 abr-14 jul-14 out-14 jan-15 abr-15 jul-15 out-15 jan-16 abr-16 jul-16
Schroder FoF Liquid Alternatives (100% invested) CDI Schroder Global Liquid Alternatives (80% invested)
Return (p.y.) Vol. (p.y.)
Schroder FoF Liquid Alternatives (100% invested) 18,1% 3,9%
Schroder Global Liquid Alternatives (80% invested) 17,1% 3,1%
CDI 13,1% 0,1%
Local FOF. vs.
Indices IMA-B Ibovespa CDI Top 5 MM*
Correlation 0,37 0,25 0,10 0,11
Future Research and Development How can we enhance alternatives access
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1. Broaden the platform of alternative strategies and consider thematic groupings (i.e. long bias vs. market neutral, etc.)
2. Better separate between alpha and beta
The understanding of what drives returns has evolved over the past few decades
The pursuit of ‘alpha’ is difficult and expensive
Some returns traditionally thought to be ‘alpha’ can be explained by alternative risk premia
Alpha
Market Beta
Alpha
Market Beta
Alpha
Alternative Risk Premia
Source: Schroders. The views and opinions are those of the Multi-Asset team and may change.
** Remove from final presentation **
Alternative risk premia Requirements for inclusion
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Diversifying
Intuitive
Prevalent
Cost-effective
Exists due to behavioral biases in the market
Observed broadly across asset classes
Low correlation with traditional sources of return
Allows investors to capture hedge fund beta but with greater transparency, liquidity and lower costs
Persistent Whilst the magnitude of the premium can vary over time, it cannot be arbitraged away
Source: Schroders. The views and opinions are those of the Multi-Asset team and may change.
** Remove from final presentation **
A regime-based analysis Assessing the growth/inflation sensitivities
Source: Schroders. Data is simulated and not actual performance. Past performance is no guarantee of future results. Actual results would vary. For full details regarding the
simulation and definitions, please see the information at the end of this presentation.
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0%
5%
10%
15%
20%
25%
S&P 500 Trend Carry Value Size
High Growth Medium Growth Low Growth
0%
2%
4%
6%
8%
10%
12%
14%
S&P 500 Trend Carry Value Size
High Inflation Medium Inflation Low Inflation
Conditional returns in different “Growth” regimes Conditional returns in different “Inflation” regimes
Growth Intuition
Momentum 0 Indifferent to all. Only sensitive to past and
current prices
Carry + Like insurance. Best after a crisis and over a long
period of time with no crisis/small crises.
Value 0 Best at the end of a long departure from
fundamentals and a recognition of that.
Size + Larger relative impact on small cap as their
sources of financing become less constrained
Intuition
Inflation Intuition
Momentum 0 Indifferent to all. Only sensitive to past and
current prices
Carry + Different monetary policies lead to larger
interest rate differentials
Value - Poor market sentiment caused by high inflation
can result in investors ignoring fundamentals
Size +
Domestic corporates are less susceptible to
margin deterioration caused by rising import
costs
Alternative Risk Premia Simulated Returns - Empirical Evidence (Feb 1982 – Dec 2014)
Biographies
Biographies
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Adam Farstrup, CFA
Multi-Asset Investments, Head of Multi-Asset Product, Americas
Joined Schroders in 2007 and is based in New York.
Investment career commenced in 1997. Currently, Adam is a product manager for the Multi-Asset Investments
team. Adam is responsible for communicating information about the team’s products to our clients, consultants and
potential clients in North America.
Previously, he was a product manager for Global and International Equities, based in London and later New York.
Adam joined Schroders from RogersCasey, where he was most recently Chief Investment Officer for the multi-
manager solutions group. Prior to that, he was Director of International Equity Manager Research with the same
firm. Adam first joined RogersCasey in 1997 as an analyst.
CFA Charterholder. Member of the New York Society of Securities Analysts
BA in Economics, Muhlenberg College
Simulation:
The simulated volatility for the Global Multi-Asset Income Portfolio on slide 42 from the period from June 30, 2009 through April 18, 2012 is based on a portfolio using a fixed
weighting of 20% equity (see below methodology), 37.5% corporate bonds (ML Global Broad Market Corporate Index), 17.5% high yield bonds (ML Global HY Index), 7.5% EM
corporate bonds (ML EM Corporate Plus Index), 7.5% EM sovereign bonds (ML EM Sovereign Plus Index) and 10% EM USD bonds (ML EM External Debt Sovereign Index).
Transaction costs are not included. The calculation methodology for the equity and fixed income components are outlined below:
Fixed income
To calculate the fixed income element of this simulation we have used Barclays POINT to analyse a model portfolio composed of the fixed allocation in terms of risk factors.
This combination of risk factors is then used to estimate the price return series of the portfolio through time. We then added the average yield over the same period of the
standard indices of the fixed income components of the portfolio to obtain the total return series.
Equity
The simulation was calculated using QEP’s quantitative methodology using a global equity universe. The simulation constructs a portfolio of high quality high dividend payers,
using metrics such as interest coverage, free cash flow and price to earnings, whilst also focusing on value and avoiding dividend cutters. The simulation was constructed to
meet a minimum dividend yield of 2% in excess of the MSCI AC World High Dividend Index.
There could be no assurance that any transactions actually performed in a managed portfolio could have been executed at the times or prices used for the purpose of calculating
the performance in the simulation. No allowance was made in the model portfolio for transaction or advisory fees.
The actual performance of managed accounts is also impacted by non-quantitative factors such as additional stock selection and risk management activities of the portfolio
management team. These factors cannot be modeled predictably and were not used in preparing the underlying quantitative model or the simulated results. The simulated results
are hypothetical results. They do not represent an attempt to show actual performance. They are used only to illustrate the impact of an investment model. They cannot be used to
reflect actual or expected managed portfolio returns.
Important information
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The returns are presented as gross returns, including cash, reinvestment of dividends, interest and other income earned in the period and are calculated on a trade date basis after
transaction charges (brokerage commissions), but before taxes and management and custody fees. Performance would have been reduced by such fees and the effect of these
fees on performance compounds over time.
As an illustration see the chart below. The value of a $5,000,000 account would be reduced by the following amounts due to the compound effect of the management fees. (This
has been calculated assuming an assumed constant return of 10% per annum* and a hypothetical management fee of 0.75% per annum, which has been applied on a simple
average of opening and closing annual fund values):
*The assumed 10% return is hypothetical and should not be considered a representation of past or future returns. The actual effect of fees on the value of an account over time will
vary with future returns, which cannot be predicted and may be more or less than the amount assumed in this illustration. Actual fees may differ from the assumed rate presented
above. Please consult Part II of Form ADV for a description of the fees.
Important information
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Gross Value Net Value Compound Effect
1 Year $5,500,000 $5,447,500 $52,500
3 Years 6,655,000 6,466,238 188,762
5 Years 8,052,550 7,675,491 377,059
10 Years 12,968,712 11,782,633 1,186,079
Past performance is not a guide to future returns. The value of investments can fall as well as rise as a result of market movements. Investments in smaller companies may be less
liquid than in larger companies and price swings may therefore be greater than in larger company funds. Exchange rate changes may cause the value of overseas investments to
rise or fall. Less developed markets are generally less well regulated than the US, they may be less liquid and may have less reliable custody arrangements. Investors should be
aware that investments in emerging markets involve a high degree of risk and should be seen as long term in nature. The Strategy will invest in some higher-yielding bonds (non-
investment grade). The risk of default is higher with non-investment grade bonds than with investment grade bonds. Higher yielding bonds may also have an increased potential to
erode your capital sum than lower yielding bonds. The Strategy will invest in Property Funds and Property Investment Companies. It may be difficult to deal in these investments
because the underlying properties may not be readily saleable which may affect liquidity. The use of derivatives involves risks different from, or possibly greater than, the risks
associated with investing directly in the underlying assets. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market
environment.
The views and forecasts contained herein are those of the Multi-Asset team and are subject to change. The information and opinions contained in this document have been
obtained from sources we consider to be reliable. No responsibility can be accepted for errors of facts obtained from third parties. Reliance should not be placed on the views and
information in the document when taking individual investment and/or strategic decisions.
The opinions stated in this presentation include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds
of what we currently know. However, there is no guarantee that any forecasts or opinions will be realized.
The hypothetical results shown must be considered as no more than an approximate representation of the portfolio’s performance, not as indicative of how it would have performed
in the past. It is the result of statistical modeling, with the benefit of hindsight, based on a number of assumptions and there are a number of material limitations on the retrospective
reconstruction of any performance results from performance records. For example, it may not take into account any dealing costs or liquidity issues which would have affected the
strategy’s performance. This data is provided to you for information purposes only as at today's date and should not be relied on to predict possible future performance.
This document is not an offer or a solicitation to acquire or dispose of an interest in securities or other investment instruments described herein. This document contains outline,
indicative terms for discussion purposes only and is not intended to provide the sole basis for evaluation of the instruments described. Terms are purely indicative and may change
in line with market conditions. Any recipient of this document agrees that the appropriateness of any described structure to its particular situation will be independently determined,
including consideration related to the legal, tax and other related aspects of any transaction.
Schroder Investment Management North America Inc. (“SIMNA Inc.”) is an investment advisor registered with the U.S. SEC. It provides asset management products and services
to clients in the U.S. and Canada including Schroder Capital Funds (Delaware), Schroder Series Trust and Schroder Global Series Trust, investment companies registered with the
SEC (the “Schroder Funds”). Shares of the Schroder Funds are distributed by Schroder Fund Advisors LLC, a member of the FINRA. SIMNA Inc. and Schroder Fund Advisors LLC
are indirect, wholly-owned subsidiaries of Schroders plc, a UK public company with shares listed on the London Stock Exchange. Schroder Investment Management North America
Inc. is an indirect wholly owned subsidiary of Schroders plc and is a SEC registered investment adviser and registered in Canada in the capacity of Portfolio Manager with the
Securities Commission in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec, and Saskatchewan providing asset management products and services to clients in
Canada. This document does not purport to provide investment advice and the information contained in this newsletter is for informational purposes and not to engage in a trading
activities. It does not purport to describe the business or affairs of any issuer and is not being provided for delivery to or review by any prospective purchaser so as to assist the
prospective purchaser to make an investment decision in respect of securities being sold in a distribution.
Further information about Schroders can be found at www.schroders.com/us.
© Schroder Investment Management North America Inc.
875 Third Ave – 22nd Floor, New York, NY 10022
(212) 641-3800
Important information
31
Schroder Fund Advisors LLC, Member FINRA, SIPC
875 Third Avenue, New York, NY 10022-6225
(800) 730-2932
This material regarding the Schroder Liquid Alternatives IE FI Multimercado was prepared by Schroder Investment Management North America Inc. and Schroder
Investment Management Brasil Ltda, in response to a request from the client sent to Schroder and should not be understood as an analysis of any securities,
advertising material, offer to purchase or sell, offer or recommendation of any financial assets or investment. The purpose of this material is exclusively informative
and does not include investment objectives, financial conditions or the particular and specific needs of any shareholders or other investors. The opinions stated in
this material pertain to Schroder and may change at any time. The opinions are based on the date of their submission and do not encompass any fact that may
have arisen after this date, hence, Schroder is not compelled to update this material to reflect such provisions after the submission of the same. This material is for
exclusive Financial Intermediary, Institutional and Consultant and should not be used as support material by other individuals. THIS MATERIAL IS HIGHLY
CONFIDENTIAL AND SHOULD NOT BE REPRODUCED OR DISTRIBUTED, ENTIRELY OR PARTIALLY, TO PERSONS OTHER THAN THE ORIGINAL
RECIPIENTS. The Fund and the distribution of the shares of the same are not registered at the Brazilian Securities Commission "CVM", and therefore do not
meet certain requirements and procedures usually observed in public offerings of securities registered with the CVM, with which investors in Brazilian capital
markets may be familiar. For this reason, the access of the investors to certain information regarding the Fund may be restricted. SCHRODER DOES NOT
GUARANTEE PERFORMANCE.
Important information
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