Schroder Global Healthcare Fund Interim Report and Accounts February 2021

Contents

1 Fund Information{ } 3 1 Fund Performance{ } 3 1 Review of Investment Activities{ } 4 1 Risk Profile{ } 5 Statement of the Manager’s Responsibilities 6 1 Portfolio Statement{ } 7 Financial Statements (unaudited) 9 Notes to the Accounts (unaudited) 10 1 General Information{ } 11

1 Collectively these comprise the Manager's report.

Schroder Global Healthcare Fund Interim Report and Accounts 2 15 February 2021 Fund Information

Investment objective and policy The Schroder Global Healthcare Fund (the ‘Fund’) aims to provide capital growth by investing in equity and equity related securities of healthcare and medical related companies worldwide. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of companies worldwide, which are engaged in healthcare provision, medical services and related products. The Fund is positioned to benefit from the structural growth in demand for healthcare provision and medical treatments, supported by demographic trends, improving standards of living and technological advancements. The Investment Manager will position the Fund to benefit from these strong themes by investing in areas such as biotechnology, generic drug manufacture and supply, pharmaceuticals, health insurance and hospital supplies. The Fund may also invest directly or indirectly in other securities (including in other asset classes), countries, regions, industries or currencies, collective investment schemes (including Schroder funds), warrants and money market instruments, and hold cash. The Fund may use derivatives with the aim of reducing risk and managing the Fund more efficiently (for more information please refer to section 6 of Appendix I of the Prospectus). Fund characteristics The Fund does not have a target benchmark. The Fund’s performance should be compared against the MSCI AC World Health Care Daily (Gross Total Return) index and the Investment Association Global Equity sector average return. The comparator benchmarks have been selected because the Investment Manager and the Manager believe that each of these benchmarks is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant events With effect from 1 December 2020, the Manager wishes to pass on some of the benefits of potential savings generated by significant growth in assets under management, by discounting the Annual Management Charge payable by investors in retail classes in the Fund. The applicable discount is determined by the size of the Fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus. Total purchases and sales For the period For the year to 15.2.21 to 15.8.20 £000's £000's Total purchases 128,554 194,603 Total sales 102,303 109,831

Fund Performance{1}

Number of Net asset Net asset units in issue value per unit value per unit 15.2.21 15.2.21 15.8.20 A Accumulation units 38,395,366 258.63p 233.40p A Income units 5,199,245 254.63p 229.79p Z Accumulation units 137,289,141 231.88p 208.46p Z Income units 18,612,154 220.52p 198.25p

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.

Schroder Global Healthcare Fund Interim Report and Accounts 3 15 February 2021 Review of Investment Activities

From 14 August 2020 to 15 February 2021, the price of Z Accumulation Fund Manager: units on a dealing price basis rose 10.89%. In comparison, the MSCI All John Bowler Country World Health Care Index generated a total return of 4.84%1 and the Investment Association Global Sector Average Return generated a total return of 16.01%1 in sterling terms. The period under review was largely dictated by the catastrophic impact of the Covid-19 pandemic. In early 2020, stock markets around the world reacted to the global pandemic and implications for economic growth as a consequence of efforts to mitigate its spread. Central banks and governments around the world announced huge and unprecedented policy measures to support business and households and reduce borrowing costs. While the crash was unusually severe in a historical context, the recovery was equally extraordinary as markets rallied in the second and third quarters to recover share price losses by August. A resurgence in the virus in many parts of world curbed the recovery in September and October, however the news in November that a number of vaccines had proven effective against the virus led global equities to finish the year strongly. The recovery continued into the early part of 2021 as the roll-out of Covid-19 vaccines boosted optimism that an end to Joined Schroders in 2003 the pandemic was coming into sight. Investment career commenced in 1994 The portfolio outperformed the index primarily due to stock selection in North America. Currently Global Sector Specialist with responsibility for Positions in the UK and Japan detracted somewhat. Fate Therapeutics, Myokardia and Wuxi the health care sector and manager of the Schroder Global Biologics were among the best performing stocks during the period. Conversely, Moderna, Healthcare Fund, as well as having primary research Santen Pharmaceutical and Bayer were among worst performing stocks during the period. responsibility for Pan-European pharmaceuticals. Based in There were no significant trades during the period. London We retain our focus on innovation in key areas such as the pharmaceutical and biotechnology John joined Schroders from AXA Investment Managers, subsectors, where novel treatments are driving a recovery in new drug approvals. In where he had worked since 1998 in a global health care addition, the fund focuses on opportunities to improve healthcare delivery, also known as research role. He was voted top buy side analyst for the “value based” healthcare. The demographic trends of ageing and increased life expectancy, pharmaceutical and health care sector in the Institutional coupled with limited government budgets, necessitates ongoing innovation. This should in Investor Pan European Equity survey in 2002 turn drive sustainable returns, particularly for companies that are ahead of the curve. Before this, John worked at State Street Research & Management from 1997 as a fund manager / analyst Earlier, John joined Hill Samuel Asset Management in 1994 as a graduate trainee, later becoming a junior fund manager for UK equities Institute of Investment Management and Research (IIMR) qualified. Member of the CFA Society of the UK (CFA UK) PhD in Biochemistry & Physiology, University of Manchester. Degree in Biology, University of Manchester

1 Source: Thomson Reuters Datastream. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.

Schroder Global Healthcare Fund Interim Report and Accounts 4 15 February 2021 Risk Profile

Risk and reward indicator Lower risk Higher risk Potentially lower reward Potentially higher reward

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The risk category was calculated using historical performance data and may not be a reliable indicator of the Fund’s future risk profile. The Fund’s risk category is not guaranteed to remain fixed and may change over time. A Fund in the lowest category does not mean a risk-free investment. For specific risks, including the risk and reward profile, please refer to the Key Investor Information Document available on the following website www.schroders.com.

Schroder Global Healthcare Fund Interim Report and Accounts 5 15 February 2021 Statement of the Manager’s Responsibilities

The Financial Conduct Authority’s Collective Investment Schemes sourcebook requires the Manager to prepare accounts for each annual and half yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true and fair view of the financial position of the Fund and of its net expense and the net capital gains on the property of the Fund for the period. In preparing the accounts the Manager is required to: ¯¯ select suitable accounting policies and then apply them consistently; ¯¯ comply with the disclosure requirements of the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Management Association (now the Investment Association) in May 2014; ¯¯ follow generally accepted accounting principles and applicable accounting standards; ¯¯ prepare the accounts on the basis that the Fund will continue in operation unless it is inappropriate to do so; ¯¯ keep proper accounting records which enable it to demonstrate that the accounts as prepared comply with the above requirements; ¯¯ make judgements and estimates that are prudent and reasonable. The Manager is responsible for the management of the Fund in accordance with its Trust Deed, the Prospectus and the Collective Investment Schemes sourcebook, and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. The Manager's report and accounts for the period ended 15 February 2021 were signed on 9 April 2021 on behalf of the Manager by:

P. Chislett J. Rainbow Directors

Schroder Global Healthcare Fund Interim Report and Accounts 6 15 February 2021 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 15.2.21 £000's assets 15.2.21 £000’s assets

Equities 95.52% (96.40%) Netherlands 2.64% (2.18%) Australia 0.91% (1.06%) Argenx ADR 10,843 2,904 0.61 CSL 27,323 4,294 0.91 Koninklijke Philips 196,516 8,214 1.74 4,294 0.91 Vivoryon Therapeutics 94,176 1,357 0.29 Belgium 1.52% (1.69%) 12,475 2.64 Nyxoah 78,219 1,637 0.35 Sweden 2.46% (2.20%) UCB 71,810 5,516 1.17 Ambea 758,097 4,860 1.03 7,153 1.52 Attendo 679,200 2,899 0.61 British Virgin Islands 0.51% (0.57%) BioArctic 65,735 567 0.12 Biohaven Getinge B 161,731 3,292 0.70 Pharmaceutical Holding 39,730 2,410 0.51 11,618 2.46 2,410 0.51 Switzerland 8.93% (9.97%)

Cayman Islands 3.33% (2.61%) Alcon 131,860 7,096 1.50 Alphamab Oncology 2,139,000 2,840 0.60 Idorsia 71,513 1,475 0.31 Innovent Biologics 791,500 7,155 1.51 Novartis 229,011 15,243 3.23 Microport Roche Holding 50,303 12,724 2.70 Cardioflow Medtech 46,000 83 0.02 Straumann Holding 6,207 5,591 1.19 Wuxi Biologics 42,129 8.93 Cayman 491,500 5,648 1.20 United Kingdom 0.97% (0.81%) 15,726 3.33 ConvaTec Group 2,253,192 4,565 0.97 China 0.85% (1.02%) 4,565 0.97 Remegen H 83,500 1,109 0.24 United States of America 58.82% (58.58%) WuXi AppTec H 151,440 2,901 0.61 10X Genomics A 16,880 2,395 0.51 4,010 0.85 1Life Healthcare 80,348 3,400 0.72 Denmark 0.41% (0.50%) Abbott Laboratories 223,390 20,638 4.37 Ascendis Pharma Amedisys 28,285 6,295 1.33 ADR 16,894 1,942 0.41 AmerisourceBergen 71,144 5,404 1.15 1,942 0.41 Anthem 59,875 12,574 2.66 France 2.12% (3.08%) Arena Sanofi 146,017 10,001 2.12 Pharmaceuticals 42,133 2,553 0.54 10,001 2.12 Arrowhead Pharmaceuticals 48,266 3,080 0.65 Germany 3.92% (7.40%) Boston Scientific 299,650 8,322 1.76 BioNTech ADR 33,841 2,854 0.61 Bristol Myers Fresenius 107,876 3,423 0.73 Squibb 336,634 14,559 3.09 Gerresheimer 59,909 4,969 1.05 Catalent 72,948 6,605 1.40 Merck 58,003 7,233 1.53 Cigna 75,673 11,333 2.40 18,479 3.92 DexCom 18,154 5,406 1.15 Dicerna Ireland 3.66% (0.00%) Pharmaceuticals 104,135 1,958 0.41 Medtronic 199,157 17,258 3.66 Eli Lilly and 133,633 19,970 4.23 17,258 3.66 Encompass Health 68,094 4,059 0.86

Italy 0.76% (0.66%) Fate Therapeutics 54,813 4,050 0.86 Amplifon 109,793 3,572 0.76 Global Blood Therapeutics 38,172 1,341 0.28 3,572 0.76 HCA Healthcare 86,701 10,909 2.31 Japan 3.71% (4.07%) Health Catalyst 102,795 3,990 0.85 Santen Johnson & Johnson 54,822 6,595 1.40 Pharmaceutical 327,600 3,580 0.76 Merck 271,199 14,667 3.11 Takeda Oak Street Health 96,293 4,521 0.96 Pharmaceutical 355,100 9,017 1.91 Quanterix 33,569 2,095 0.44 Terumo 158,300 4,927 1.04 Replimune Group 53,750 1,434 0.30 17,524 3.71 Sage Therapeutics 62,550 3,910 0.83 Seres Therapeutics 93,024 1,742 0.37

Schroder Global Healthcare Fund Interim Report and Accounts 7 15 February 2021 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 15.2.21 £000’s assets 15.2.21 £000’s assets Silverback West Therapeutics 82,275 2,612 0.55 Pharmaceutical Stericycle 108,879 5,463 1.16 Services 26,217 5,553 1.18 Teladoc Health 39,874 8,421 1.78 Zimmer Biomet Holdings 66,639 7,784 1.65 Thermo Fisher Scientific 47,726 17,500 3.71 Zoetis 94,776 11,416 2.42 Tivity Health 146,545 2,568 0.54 277,611 58.82 UnitedHealth Group 111,286 26,407 5.60 Equities total 450,767 95.52 Vocera Portfolio of investments 450,767 95.52 Communications 159,716 6,082 1.29 Net other assets 21,158 4.48 Net assets attributable to unitholders 471,925 100.00

The comparative percentage figures in brackets are as at 15 August 2020. Unless otherwise stated, all securities are admitted to official stock exchange listings.

Schroder Global Healthcare Fund Interim Report and Accounts 8 15 February 2021 Statement of Total Return (unaudited) For the six months ended 15 February 2021

15.2.21 15.2.20 £000's £000's £000's £000's Income Net capital gains – 45,946 – 26,003 Revenue 1,910 – 1,222 – Expenses (2,381) – (1,467) – Net expense before taxation (471) – (245) – Taxation (238) – (174) – Net expense after taxation (709) (419) Total return before distributions 45,237 25,584 Distributions 3 (1) Change in net assets attributable to unitholders from investment activities 45,240 25,583

Statement of Change in Net Assets Attributable to Unitholders (unaudited) For the six months ended 15 February 2021 15.2.21 15.2.20 £000's £000's £000's £000's Opening net assets attributable to unitholders 392,693^ 247,833 Amounts receivable on issue of units 65,056 – 6,077 – Amounts payable on cancellation of units (31,071) – (12,722) – 33,985 (6,645) Dilution adjustment 7 – Change in net assets attributable to unitholders from investment activities 45,240 25,583 Closing net assets attributable to unitholders 471,925 266,771^

^ The opening net assets attributable to unitholders for the current period do not equal the closing net assets attributable to unitholders for the comparative period as they are not consecutive periods.

Balance Sheet (unaudited) As at 15 February 2021

15.2.21 15.8.20 £000's £000's Assets Investments 450,767 378,572 Current assets Debtors 5,983 1,661 Cash and bank balances 16,836 13,102 Total assets 473,586 393,335 – – Liabilities – – Creditors Distributions payable – (54) Other creditors (1,661) (588) Total liabilities (1,661) (642) – – Net assets attributable to unitholders 471,925 392,693

Schroder Global Healthcare Fund Interim Report and Accounts 9 15 February 2021 Notes to the Accounts (unaudited)

Basis of preparation The accounts have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Management Association in May 2014 and in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)). Accounting policies The accounting policies applied are consistent with those of the annual accounts for the year ended 15 August 2020 and are described in those annual accounts.

Schroder Global Healthcare Fund Interim Report and Accounts 10 15 February 2021 General Information

Manager Registrar Schroder Unit Trusts Limited Schroder Unit Trusts Limited 1 London Wall Place 1 London Wall Place London EC2Y 5AU London EC2Y 5AU Authorised and regulated by the Financial Conduct Authority Authorised and regulated by the Financial Conduct Authority The Manager is responsible for maintaining the register for each Fund. Investment Adviser It has delegated certain registrar functions to HSBC Bank Plc, 8 Canada Schroder Investment Management Limited Square, London, E14 8HQ. 1 London Wall Place London EC2Y 5AU Administration Details Authorised and regulated by the Financial Conduct Authority Schroders Investor Services PO BOX 1402 Trustee Sunderland J.P. Morgan Europe Limited SR43 4AF Chaseside Bournemouth BH7 7DA Independent Auditors Authorised by the Prudential Regulation Authority and regulated by the PricewaterhouseCoopers LLP Financial Conduct Authority and Prudential Regulation Authority Atria One 144 Morrison Street Edinburgh EH3 8EX

Authorisation The Fund is an authorised unit trust and is constituted pursuant to the Collective Investment Schemes sourcebook and is structured as a Trust. The Fund is a UCITS scheme for the purpose of the categorisation of the Collective Investment Schemes sourcebook. Value Assessment A statement on the Assessment of Value is published on the Global Fund Centre in the Fund Literature section at www.Schroders.com within 4 months of the annual 'reference date' 31 December. Other information The Prospectus, the Key Investor Information Document and details of investment charges and costs are available on request or can be downloaded from our website www.schroders.com.

Schroder Global Healthcare Fund Interim Report and Accounts 11 15 February 2021

For further literature please contact Schroder Investor Services on 0800 182 2399 or [email protected] for Retail Clients, or 0345 030 7277 or [email protected] for Institutional Clients, or visit our website at www.schroders.com. Issued in April 2021 by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registered Number 4191730 England. Schroder Unit Trusts Limited is an authorised corporate director, authorised unit trust manager and an ISA plan manager, and is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped and monitored.