Application of valuation principles – March and April 2020– SSSF
Schroder Special Situation Fund range
We experienced a period of severe market volatility between mid-March and early-April 2020 due to the Covid-19 pandemic. This resulted in a need to consider how we appropriately valued securities across some asset classes.
To ensure Schroders was treating investors in our fund ranges fairly, we applied our relevant valuation principles to deal with this volatility. This meant that a daily adjustment was made - in appropriate cases - so that securities held within some of our funds were valued at a price that we believed was achievable in the market.
This decision was taken to protect the interests of investors in our funds and for the fair treatment of both continuing and redeeming investors.
These principles may have been applied in conjunction with a dilution adjustment, which is an adjustment to the fund’s published net asset value per share to counter the impact of dealing and other costs.
A combination of these adjustments resulted in some funds’ daily net asset values being adjusted by up to 5%, depending on the fund’s holdings and the prevailing market conditions at the time in terms of dealing spreads, costs and trading conditions.
These adjustments did not reflect the underlying performance of the funds. They were a result of the impact of the extraordinary market circumstances at the time. We continually monitor the situation and now that market volatility has returned to normalised levels, we have reverted to our usual pricing methodologies for underlying securities held by the fund.
For further information with respect to a particular fund, please contact your usual Schroders representative.
The Schroder Special Situations Fund (the “Company”) is an umbrella structured open-ended investment company with limited liability, organised as a "société anonyme" and qualifies as a SICAV under Part I of the Luxembourg law concerning undertakings for collective investment dated 17 December 2010. The Company has its registered office in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier.
Neither the Company nor its Funds have been approved for distribution to non-qualified investors in Switzerland by the Swiss Financial Market Supervisory Authority FINMA (FINMA). Neither the Company nor its Funds are subject to the supervision of the FINMA. Accordingly, the Shares of the Funds may not be offered or distributed in or from Switzerland to non-qualified investors and neither this document nor any offering material relating to the Company and the Funds may be made available in connection with any such offering or distribution to non-qualified investors. The Shares of the Funds may exclusively be offered and distributed to qualified investors as defined in the Federal Act on Collective Investment Schemes (CISA) and the Federal Ordinance on Collective Investment Schemes (CISO). This document and any other offering material or document relating to the Company or the Funds may only be made available to such qualified investors in Switzerland.
The prospectus and the key investor information document(s) for Switzerland, the articles of association, the annual and semi-annual reports can be obtained, free of charge, at the offices of the Swiss representative, Schroder Investment Management (Switzerland) AG, Central 2, CH-8001 Zurich (authorised and regulated by FINMA) and the Swiss paying agent, Schroder & Co. Bank AG, Central 2, CH-8001 Zurich.