Various changes to Schroder BRIC Funds
Schroder International Selection Fund will be making a change to the fund name, investment objective and policy of its Schroder International Selection Fund BRIC (Brazil, Russia, India, China) on 18 April 2023 (the “Effective Date”).
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS
The Fund, in two currency variations, features in our defined fund range products listed opposite.
BACKGROUND TO THE CHANGES
Following the Russian invasion of Ukraine and subsequent sanctions, Russia was removed from the Fund’s target benchmark, MSCI BRIC (Net TR) 10/40 index. With effect from 14 July 2022 the target benchmark was renamed MSCI BIC (Net TR) 10/40 index. This change has been reflected in the Fund’s prospectus. In this context there was an additional review of the Fund and it was decided to remove Russia from the investment objective and policy, and to change the name accordingly.
In the context of the unprecedented geo-political situation caused by Russia’s invasion of the Ukraine and the resultant impact of sanctions and the actions of governments and market counterparties on certain Russian issuers and assets, the Fund’s residual holdings in Russian assets (the “Russian Assets”) are currently valued at zero. These Russian Assets represented approximately 0.35% of the Fund’s portfolio as of 3 March 2022 when the value was reduced to zero. In the event that value returns to these assets they will be returned to the net asset value of the Fund and will be sold by the Investment Manager taking into account the best interests of the shareholders in line with the Fund’s amended investment strategy applicable as from the Effective Date.
In order to reflect the updated objective and policy Schroders will be changing the name of the Fund on the Effective Date, as follows:
| ISIN | Current Fund Name | New Fund Name |
|---|---|---|
| LU0228659784 | Schroder ISF BRIC A Acc USD | Schroder ISF BIC A Acc USD |
| LU0232931963 | Schroder ISF BRIC A Acc EUR | Schroder ISF BIC A Acc EUR |
For full details of the objective changes, please see the table in the policyholder notice opposite. The extent of the change to the risk/reward profile of the Fund as a result of these changes is non-significant. All other key features of the Fund, including the synthetic risk and return indicator (the SRRI) and fees, will remain the same.
Plan owners do not need to take any action if they are happy with the above changes on the Fund. However, they can switch to an alternative fund available to their plan, free of charge, should they wish to.
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For more information on Schroder International Selection Funds visit https://www.schroders.com/en-lu/lu/individual/