20100131 QEP Quality monthly report

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					                                                                                        January 2010                                            Monthly Report

                                                                                        Schroder Global Quality
                                                         Total return %                                              1 month         3 month            6 months   Inception
                                  Schroder Global Quality Fund (pre-fee)                                                -1.48            5.24             2.98       5.96
                                         MSCI World ex Australia Index                                                  -2.88            3.43             0.70       3.88
                                                     Relative performance                                               1.40             1.81             2.28       2.08

                                Schroder Global Quality Fund (post-fee)                                                 -1.56            4.98             2.47       5.27
                                         MSCI World ex Australia Index                                                  -2.88            3.43             0.70       3.88
                                                Relative performance                                                     1.32            1.55             1.77       1.39

                                                                                  Inception date of the Schroder Global Quality Fund is 2nd June 2009
                                                                                  Past performance is not a reliable indicator of future performance
                                                                                  Please refer to for post-tax returns

Portfolio characteristics                                                         Market review
                                                                     Portfolio    After a buoyant start to the year, global equity markets ended January on a weaker
No. of stocks                                                              418    footing, weighed down by concerns over the tightening of monetary policy in China,
Active share*                                                          79.4%      sovereign default risk in Europe and the threat of new regulations upon financial
Beta relative to MSCI                                                     0.88    institutions. In local currency terms, the MSCI World Index declined by 3.6% (-2.9% in
Tracking error %p.a. (Not targeted)                                         3.8   AUD), with previously strong areas of the market exhibiting the weakest performance
*Active share is % sum of absolute active positions x 1/2                         (Resources and Technology particularly in Asian and Emerging Markets). It was far
                                                                                  from a simple top-down market however. Whilst Health Care and Staples
                                                                                  outperformed the index, so did Industrials whilst defensive Utilities and Telecoms in
1 month performance attribution by region                                         particular lagged behind. Regionally, Japan was the strongest performing market whilst
                                             Asset        Stock                   smaller and mid-cap stocks also performed well despite the weaker overall tone.
Group                                   Allocation     Selection Total Effect
North America                               -0.01%          0.14%        0.13%    Global Quality outperformed the MSCI World ex Australia Index in January, driven by
Pan Europe                                   0.11%          1.07%        1.17%    good stock selection within Telecoms, Consumer Discretionary, Resources and
Japan                                       -0.06%          0.15%        0.08%    Technology where we avoided a partial reversal of some of the excess optimism in
Pacific ex Japan                            -0.11%          0.25%        0.14%    areas such as Semi-conductors that was evident late last year. Sector allocation was
Emerging Markets Asia                       -0.09%          0.00%       -0.09%    also beneficial (particularly the underweight in Materials).
Emerging Markets EMEA                        0.04%          0.00%        0.04%
Emerging Markets LatAm                      -0.08%          0.00%       -0.08%    We retain a preference for Industrials (particularly aero and defence) over Technology
Cash                                         0.00%          0.00%        0.00%
                                                                                  and prefer Staples and Health within the defensive sectors. That said, the allocation to
Total                                       -0.20%          1.60%        1.40%
                                                                                  Health Care Equipment Makers and Consumer Staples has been trimmed as some
                                                                                  stocks have become a little ‘hot’ in the short term. We also remain underweight Europe
                                                                                  at a regional level in favour of Asia and the more established Emerging Markets such
1 month performance attribution by sector
                                                                                  as China, Taiwan, Korea and Brazil.
                                             Asset        Stock
Group                                   Allocation     Selection Total Effect
                                                                                  It was interesting to observe that both our Quality and Value strategies outperformed
Consumer Staples                            0.04%           -0.10%      -0.06%
                                                                                  the benchmark by similar amounts in January despite approaching the investment
Health Care                                 0.03%            0.06%       0.09%
                                                                                  opportunity in very different ways. To a large extent this reveals the much changed
Telecommunication Services                  0.02%            0.29%       0.31%
                                                                                  composition of Value over the past year but we are still finding plenty of opportunities to
Utilities                                   0.04%            0.03%       0.07%
                                                                                  purchase higher quality companies on attractive valuations in most sectors. Materials
Consumer Discretionary                      0.03%            0.26%       0.30%
                                                                                  and Technology are the primary areas of the market where this has not been the case
Information Technology                      0.04%            0.18%       0.22%
                                                                                  of late.
Industrials                                 0.10%           -0.06%       0.04%
Materials                                   0.11%           0.12%        0.23%
Energy                                      0.00%           0.15%        0.15%
Financials                                  0.02%           0.04%        0.05%
Cash                                        0.00%           0.00%        0.00%
Total                                       0.42%           0.98%        1.40%

Unless otherwise stated figures are as at the end of January 2010
Please note numbers may not total 100 due to rounding
                                                                                                                                                                        Monthly Report
Schroder Global Quality                                                                                                                                                              January 2010

Fund objective                                                                    Sector weightings versus benchmark
To obtain exposure to global equities through
                                                                                  Fund (%)      Index (%)                                               Active weight (%)
investment in an underlying active diversified
portfolio of equity and equity related securities of
                                                                                      14.4          10.9      Industrials                                                                   3.5
companies worldwide ex Australia.
                                                                                      12.8           9.8      Consumer Discretionary                                                       3.0
                                                                                      12.6          10.5      Consumer Staples                                                       2.1
                                                                                      11.5          10.7      Health Care                                                     0.8
Investment style
                                                                                      10.9          10.9      Energy                                              0.0
     –    Quality style which is Growth investing                                      3.8           4.4      Telecommunication Services                    -0.6
          avoiding 'Glamour' stocks                                                   10.5          11.9      Information Technology                     -1.5
     –    Broad universe - over 5,000 stocks from                                      4.3           6.4      Materials                             -2.1
          over 40 countries                                                           17.5          19.8      Financials                           -2.2
     –    Large and mid cap exposure                                                   1.6           4.7      Utilities                         -3.1
     –    Non-market cap stock weighting based on                                      0.2           -        Cash                                                          0.2
          fundamentals not on size
     –    Benchmark unaware - 'bottom up'
          unconstrained region and sector allocations                             Regional weightings versus benchmark
     –    Highly diversified portfolio of +300 stocks
                                                                                  Fund (%)      Index (%)                                               Active weight (%)

                                                                                       9.2           -        Emerging Markets                                                               9.2
                                                                                       6.6           1.9      Pacific ex Japan                                                      4.7
                                                                                       5.2           4.9      Canada                                                    0.3
                                                                                      19.5          21.6      Continental Europe                           -2.1
                                                                                       8.1          10.8      Japan                                      -2.7
                                                                                       7.4          10.5      United Kingdom                             -3.0
                                                                                      43.8          50.3      United States                      -6.6
                                                                                       0.2           -        Cash                                                      0.2

Fund details                                                                      Market cap exposure versus benchmark
APIR code                                          SCH0041AU
Fund size (AUD)                                     $63,188,616                   Fund (%)      Index (%)                                               Active weight (%)
Redemption unit price (AUD)                             $1.0495
Fund inception date                                       Jun-09                      33.2          64.7      Mega                              -31.6

Buy/sell spread                                    0.30%/0.30%                        33.8          27.8      Large                                                         6.0

Management costs                                           0.98%                      32.2           7.5      Mid                                                                   24.7

Distribution frequency                     Normally twice yearly -                     0.7           -        Small                                                     0.7

                                                    Jun and Dec                        -             -        Micro                                                     -

Schroder Investment Management Australia Limited
ABN 22 000 443 274 Australian Financial Services Licence 226473
Level 20 Angel Place, 123 Pitt Street, Sydney NSW 2000
Phone: 1300 136 471 Fax: (02) 9231 1137

Investment in the Schroder Global Quality Fund may be made on an application form in the Product Disclosure Statements dated 1 May 2009, available from the Manager, Schroder
Investment Management Australia Limited (ABN 22 000 443 274 AFSL 226473) (“Schroders”).This Report is intended solely for the information of the person to whom it is provided by
Schroders. It should not be relied on by any person for the purposes of making investment decisions. Total returns are calculated using exit price to exit price, after fees and expenses,
and assuming reinvestment of income. Gross returns are calculated using exit price to exit price and are gross of fees and expenses. The repayment of capital and performance of the
Funds is not guaranteed by Schroders or any company in the Schroders Group. Past performance is not a reliable indicator of future performance. Unless otherwise stated the source
for all graphs and tables contained in this report is Schroders. Opinions constitute our judgment at the time of issue and are subject to change. This report does not contain and is not
to be taken as containing any financial product advice or financial product recommendation. For security reasons telephone calls may be recorded. Third party data is owned by the
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