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London Interbank Offered Rate Transition

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 fund(s) prospectus, the Key Investor Information Document (KIID) 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. 

UK domiciled funds

If you have any questions about the proposal for any fund that you are invested in, please contact your financial adviser. If you do not have a financial adviser you can find one in your area by visiting www.unbiased.co.uk or call a member of our Investor Services Team on 0800 718 777. Please be aware that Schroder Investment Management Limited does not offer investment advice.

Luxembourg domiciled funds

If you have any questions about the proposal for any fund that you are invested in, please contact your local Schroders office, your usual professional adviser, or Schroder Investment Management (Europe) S.A. on (+352) 341 342 202 or on email at europeclientservices@schroders.com Please be aware that Schroder Investment Management (Europe) S.A. does not offer investment advice.

Further information

Our FAQs provide further information on this change.

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.

Schroders is a world-class asset manager operating from 37 countries across Europe, the Americas, Asia, the Middle East and Africa.


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We would like to inform you that the name of Schroder Investment Management (Luxembourg) S.A. ("SIM Lux") changed to Schroder Investment Management (Europe) S.A. ("SIM Europe") effective 27 June 2018.

For more information, please refer to the Shareholder Letter.

Schroder International Selection Fund is referred to as Schroder ISF throughout this website. 

Schroder Alternative Solutions is referred to as Schroder AS throughout this website.

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