Schroders is pleased to announce the recent launch of Schroder ISF

1 Frontier Markets Equity, which offers investors access to some of the most dynamic and fastest growing economies in the world. The Fund, which is benchmarked against the MSCI Frontier Markets Index (the Middle East constitutes almost 60% of the index), is managed by Allan Conway, Head of Emerging Market Equities and Rami Sidani, head of MENA. Both fund managers are also responsible for Schroder ISF Middle East. Rami is based in Dubai and they are supported by analysts based in Dubai, Europe, Latin America and Asia. The new Fund employs a similarly disciplined and robust investment process that has a proven track record across Schroders’ Global Emerging Markets product range.

There is a strong rationale for investing in Frontier Markets. They have a combined nominal GDP of USD 2.4 trillion (3.9% of global GDP), second only to China, and comprise 12% of the world’s population

2, of which almost 60% is under 30 years of age3. Labour costs are extremely competitive and natural resources abundant. Furthermore, the investment opportunities are excellent as Frontier Markets are under-owned, market liberalisation is accelerating and valuations are currently attractive (41% off their peaks of 20084). In a global macro environment dominated by uncertainties, Frontier Markets’ low correlation with global markets also offers investors extensive diversification benefits.

Allan Conway, Head of Emerging Market Equities at Schroders, commented:

“Investors are increasingly seeking to establish a strategic allocation to emerging markets rather than using them tactically due to an increase in risk appetite, which we believe should lead to greater focus on the Frontier Markets. The launch of the Frontier Markets fund strengthens our global emerging markets proposition and offers investors access to some of the fastest growing economies in the world as well as significant diversification benefits. This highlights our continued commitment to providing clients with innovative and compelling long-term investment opportunities.”

Rami Sidani, Head of MENA at Schroders, also commented:

“We are extremely pleased to have been able to launch this fund now as a result of the strength of our existing capabilities in the global emerging markets. We were the first international fund manager to launch an investment capability based in the Middle East and we are one of the first to have launched a Frontier Markets fund.”

1 Schroder ISF refers to Schroder International Selection Fund

2 IMF, World Bank, data as of April 2010

3 UN World Population Prospects database, 2010 estimates

4 FactSet, October 2010 (MSCI Frontier markets Index net total return indices, USD)