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									                                                                             November 2008                                         Monthly Report



                                                                             Schroder Fixed Income Fund

Total Return (%) 1                                                         Market Update
20                                                                         November was another volatile month as global recession fears played havoc
18             Post Fee              UBS Composite Bond Index              with markets. The news on economies around the globe worsened and central
16                                                                         banks eased monetary policy aggressively while governments took more
14
                                         13.4                              decisive steps to support growth through fiscal stimulus. Offshore, it became
                                                                           apparent that the advanced economies were in recession. In the US, the
12
                                   9.1
                                                                           National Bureau of Economic Research nominated that the US economy as
10
                                                                           having been in recession since December 2007.
 8                           6.4                       6.9           6.6
                                                 6.1         6.3
 6                                                                         In Australia, the RBA announced a 1% cut in the official cash rate on 2
              3.0     3.5
 4                                                                         December, taking the cash rate to 4.25%. The RBA has now cut the official
        1.8
 2                                                                         cash rate by 3% since September given the significant moderation in demand
 0                                                                         and activity. With the local economy weak, there will be more significant
        1 month       3 Months      1 Year      3.Years      Inception     downward adjustments to cash rates in early 2009.
                                                 (% p.a)       (%p.a)
                                                                           Credit markets had another bad month in November. Most credit indices posted
Inception date: 25 February 2004                                           substantial negative returns driven by a raft of poor economic data, uncertainty
                                                                           over the TARP package and heightened fears of the viability of GM, Ford and
                                                                           Citigroup in the US.

                                                                           Fund Review

                                                                           The Schroder Fixed Income Fund (‘The Fund’) produced a return of 1.8% (post
                                                                           fee) in November vs the return on the benchmark UBS Composite Bond Index
                                                                           of 3.0%. In the year to November, the Fund produced a return of 9.1% (post-
Asset Allocation 1, 2                                                      fee) versus benchmark of 13.4%.

                                                                           Given the dramatic repricing of credit we have seen and the very attractive
                                                                           yields now on offer, we have started to add some high yielding credit back into
                                                                           the Fund, primarily through exposure to Australian hybrids. This exposure
                                                                           detracted from performance with November with negative returns across credit
                     Cash                          International
                                                                           markets. Continuing dislocations in financial markets, the Lehman Brothers
                     18%                              Bonds
                                                       11%
                                                                           bankruptcy in September, widespread deleveraging by market participants,
                                                                           worsening economic data, and a broad-based flight-to-quality are among the
                                                                           chief culprits for the three-month meltdown.
      Total Return
                                                                           With government bonds rallying hard since June this year and substantial
          10%
                                                                           easings now priced into markets, we have reduced some of our long duration
                                                                           position in the fund, mainly in Australia and Europe.

                                                                           Outlook
     Asian Fixed
                                                             Australian
       Income
                                                              Bonds        Given the extent of the sell off in global credit markets and the initiatives
         3%
                                                               48%         undertaken by governments in response to the credit crisis we anticipate that
                                                                           markets should begin to stabilise with a large amount of downside risk already
                     Hybrid                                                factored into credit market risk premiums. We believe investors are being
                    securities                                             handsomely rewarded for these risks going forward despite current market
                      10%                                                  volatility.

                                                                           In expectation of further global monetary policy easing we still remain long
                                                                           duration vs benchmark. We expect the RBA easing monetary policy further
                                                                           early next year to avoid a recession in Australia. The realisation that the US is in
                                                                           recession, as is Europe and the UK, has spilled over to fears of a deep global
1. All figures are as at 30 November 2008 unless otherwise stated.         recession. Despite the breathtaking pace of the recent rally, risks remain to the
2. Figures may not total 100 due to rounding.
                                                                           downside for government bond yields until growth conditions show signs of
                                                                           stabilizing.
                                                                                                                                  Monthly Report
                                                                                                                                  Schroder Fixed Income Fund


Growth of $10,000 invested since inception * 1                                                                                   Investment Objective

$13,500                                                                                                                          The objective of the Fund is to obtain exposure to a diversified range of
                                                                                                                                 domestic and international fixed income securities with the principal aim of out
$13,000                                Schroder Fixed Income                                                                     performing the UBS Composite Bond Index over the medium term.
$12,500
                                                                                                                                 Investment Process and Philosophy
$12,000
                                                                                                                                 The primary focus of Schroders in relation to investments is on economic and
$11,500                                                                                                                          financial outcomes. Schroders does not have a predetermined view about
$11,000                                                                                                                          labour standards or environmental, social and ethical considerations in
                                                                                                                                 relation to investment decision making. Schroders may however take into
$10,500                                                                                                                          account these considerations if Schroders becomes aware of them, but only
                                                                                                                                 to the extent that they financially affect the investments.
$10,000
            Nov-03
                     Apr-04
                              Sep-04
                                       Feb-05
                                                Jul-05
                                                         Dec-05
                                                                  May-06
                                                                           Oct-06
                                                                                    Mar-07
                                                                                             Aug-07
                                                                                                      Jan-08
                                                                                                               Jun-08
                                                                                                                        Nov-08

                                                                                                                                 At the heart of the investment philosophy for the Fund is a belief that fixed
                                                                                                                                 income portfolios should address the primary reasons why investors hold fixed
                                                                                                                                 income assets. Schroders has established this Fund to provide investors with
                                                                                                                                 the opportunity to invest in a portfolio of defensive assets that Schroders
* Inception date is Feb 2004. Calculations are based on post fee
                                                                                                                                 believes better matches the trade-offs that most investors have to make
performance returns with distributions reinvested.                                                                               between liquidity, duration (sensitivity to interest rate movements),
                                                                                                                                 diversification, absolute risk and credit risk.

Distribution History                                                                                                             Product Details 1

 Distribution Date                                                Distribution CPU *                                              APIR Code                                                           SCH0028AU
                                                                                                                                  Fund Size (AUD)                                                    $168,250,835

 Sep-08                                                                                      0.67476                              NAV Unit Price                                                           $1.0630
                                                                                                                                  Withdrawal Unit Price                                                    $1.0627
 Jun-08                                                                                      4.03460
                                                                                                                                  Fund Inception Date                                                       Feb-04
 Mar-08                                                                                      0.54000
                                                                                                                                  Valuation Frequency                                 Normally each business day
 Dec-07                                                                                      0.94910
                                                                                                                                  Buy / Sell Spread                                          0.03% on Application
*Cents Per Unit                                                                                                                                                                              0.03% on Withdrawal
                                                                                                                                  Entry / Exit Fee                                                               Nil
                                                                                                                                  Management Costs (Target ICR
                                                                                                                                                                                                             0.52%
                                                                                                                                  *)
                                                                                                                                                                                 Normally quarterly, calculated on
                                                                                                                                  Distribution                                      the last business day of each
 1. All figures are as at 30 November 2008 unless otherwise stated.
                                                                                                                                                                                                          quarter.
                                                                                                                                 * Indirect Cost Ratio




                                                                                                                                                                                                             Contact
                                                                                                                                                                                             www.schroders.com.au
                                                                                                                                                                                           E-mail: simal@schroders.com
                                                                                                                                                                      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 1119


 Investment in the Schroder Fixed Income Fund ("the Fund") may be made on an application form in the Product Disclosure Statement dated 1 December 2008, 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. The repayment of capital and performance of the Fund 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 judgement 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 conversations may be taped.

								
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