The Funds contained herein, namely Schroder International Selection Fund, Schroder Asian Asset Income Fund, Schroder China Asset Income Fund, Schroder China Equity Alpha Fund, Schroder Balanced Investment Fund, Schroder Growth Fund, Schroder Stable Growth Fund, Schroder Capital Stable Fund, Schroder Hong Kong Money Market Fund and Schroder US Dollar Money Fund are distinguished by their respective specific investment policies or any other specific features. These funds may, directly or indirectly through underlying funds, invest primarily in equities, debt securities (including bonds), money market instruments, derivatives or a combination of these. Some of these funds are money market funds which invest in a range of deposits, commercial papers and money market instruments.
Investment involves risk and investors may not get back the amount originally invested. Past performance is not indicative of future performance. You should not make any investment decision solely based on this document. Please read the relevant offering document carefully for further fund details including risk factors.
This website is intended for Hong Kong residents only. Non-Hong Kong residents are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. The website (excluding Schroder Provident Fund related pages) has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.
This notification is to inform you of changes that are expected to arise due to the planned discontinuation of Interbank Offered Rates (IBORs), including the London Interbank Offered Rate (LIBOR) at the end of December 2021 and the consequent changes to certain Schroder funds.
As part of an industry driven reform to strengthen the resilience of global financial markets, some interest rate benchmarks (including London Interbank Offered Rate – (LIBOR) and other Interbank Offered Rates (IBORs)) are being discontinued by the end of December 2021.
A significant decline in interbank lending and some high-profile instances of LIBOR manipulation resulted in the recommendation in 2014 by the Financial Stability Board to transition away from LIBOR and other IBORs to new alternative rates.
In response to this and subsequent announcements from the UK Financial Conduct Authority and other regulators globally, we will be replacing the benchmark for funds that currently use LIBOR with an alternative benchmark. The new benchmarks will be set out in the Hong Kong offering documents and the factsheet. The change is not expected to materially alter the way that a fund is managed or result in any additional charges to the fund. The funds’ allowable investments and the risk profile will also be unchanged to any material extent.
The timing of this transition for each individual fund will differ. Shareholders in funds will be notified in advance of any benchmark changes and from when these will take effect. We will select the benchmark which we believe is the most suitable alternative for any given fund.
Luxembourg domiciled funds
If you have any questions about the proposal for any fund that you are invested in, please contact your usual professional advisor or the Representative at Level 33, Two Pacific Place, 88 Queensway, Hong Kong or calling the Schroders Investor Hotline on (+852) 2869 6968. Please be aware that Schroder Investment Management (Europe) S.A. does not offer investment advice.
What is a benchmark? A benchmark is a standard against which the performance of a financial asset or a fund can be measured. Benchmarks are used in our funds for a range of purposes including as a standard against which to compare the return or “performance” of the fund, as a target for the fund’s performance and for defining what types and amounts of financial assets the fund may invest in. In some instances, they are also used to calculate performance fees that are paid to Schroders or a third party manager if the fund’s performance rises above a set threshold.
What is an interest rate? An interest rate is the amount a lender charges a borrower for a loan. Interest rate benchmarks are a form of benchmark that a lender may use as an element of the interest rate it charges a borrower for a loan. The lender may add a percentage to an interest rate benchmark to arrive at the amount of interest it charges the borrower. The London Interbank Offered Rate (LIBOR) is the most widely used interest rate benchmark in the world.
Schroders uses interest rate benchmarks as the benchmarks for a number of our funds.
Investment involves risk. Past performance is not indicative of future performance. You should remember that the value of investments can go down as well as up and is not guaranteed. You may not get back the full amount invested. Please refer to the relevant offering document including the risk factors.
This website is intended for Hong Kong residents only. Non-Hong Kong residents are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. Schroder Investment Management (Hong Kong) Limited is regulated by the SFC. The website (excluding Schroder Provident Fund related pages) has not been reviewed by the SFC.