Feri Rating & Research awards A Rating to the Schroder Emerging Markets Fund

Bad Homburg, Germany - 23 July 2007

Bad Homburg-based Feri Rating & Research GmbH has rated the Schroder ISF - Global Emerging Market Opportunities with the rating mark of A ("excellent") as of 30 June 2007.

The assessment is based on a Performance Indicator rated as "excellent", as well as a Risk Indicator with a rating mark of "good". At the same time, the Performance Indicator confirms that the fund management is in a position to achieve a long-term, stable and above-average performance in relation to the comparison group for the fund. The Risk Indicator records the efforts of the fund management with regard to risk control and reduction. To produce the overall rating, the Performance Indicator and Risk Indicator are weighted in the ratio 70 to 30.

The excellent rating of the performance contribution is a result of the high performance stability and long-term earnings capability. The contribution of the fund management to performance is assessed as above average. Fund manager Nicholas Field joined Schroders in London in July 2006, as Economist and Market Strategist for Emerging Markets. In addition to shares from emerging markets (at least 40 percent), the fund concept also allows for investment in emerging market bonds (up to 30 percent) and bonds. Furthermore, the cash holding is a strategic element of the fund's approach.

Based on a quantitative country model, eight individual stocks were selected from each of the six most attractive emerging markets, which after equal weighting of two percent, were ranked by the in-house analysts, in accordance with the basic company analysis, as either "strong buy" or "buy". However, since less than eight stocks were available in some markets, the portfolio was ultimately completed with "Opportunities", which in the opinion of the fund manager could make a special contribution to success. The portfolio consists of 40 to 60 individual stocks in total.

The fund is based on an absolute return strategy, whereby the fund management has no benchmark constraints. The aim of the strategy is to produce returns of 15 percent p.a. over a rolling three-year period with a maximum of 35 percent volatility. In view of this strategy and the concentrated portfolio, stronger variations in fund performance from the broader market index trend (tracking error) and higher volatility are possible. The fund risk was therefore ranked overall with the rating "good“.

The Schroder ISF - Global Emerging Market Opportunities issued on 19 January 2007, has been assigned by Feri to the Emerging Market Shares comparison group. As of the end of June, this peer group consisted of 108 different funds, 64 of which have been rated by Feri Rating & Research. Some 12 of these have in turn been rated as "excellent".