Schroder Investment Fund Company Final Report and Accounts December 2020

Contents

1 Company Information{ } 3 Statement of the Authorised Corporate Director’s Responsibilities 4 Report of the Depositary 5 Independent auditors’ report to the Shareholders of Schroder Investment Fund Company 6 Statement of Cross Holdings 8 Accounting Policies 9 Schroder UK Opportunities Fund 11 Schroder UK Dynamic Smaller Companies Fund 28 Schroder Sterling Corporate Bond Fund 46 Schroder European Recovery Fund 75 Schroder Core UK Equity Fund 93 Schroder UK Alpha Income Fund 110 Schroder Strategic Credit Fund 128 Schroder European Alpha Income Fund 157 Schroder Global Recovery Fund 181 Schroder Multi-Asset Total Return Fund 198 Schroder India Equity Fund 224 Schroder Islamic Global Equity Fund 237 Schroder UK-Listed Equity Income Maximiser Fund 251 Schroder Global Energy Transition Fund 265 Remuneration 280 1 General Information{ } 281

1 Collectively these comprise the Authorised Corporate Director’s report.

Schroder Investment Fund Company Final Report and Accounts 2 31 December 2020 Company Information

General information Schroder Investment Fund Company (SIFCo or the Company) is an umbrella Company comprising fourteen sub funds which have their own investment objectives and policies. As at 31 December 2020 the Company had the following sub funds available: Schroder UK Opportunities Fund Schroder UK Dynamic Smaller Companies Fund Schroder Sterling Corporate Bond Fund Schroder European Recovery Fund Schroder Core UK Equity Fund Schroder UK Alpha Income Fund Schroder Strategic Credit Fund Schroder European Alpha Income Fund Schroder Global Recovery Fund Schroder Multi-Asset Total Return Fund Schroder India Equity Fund Schroder Islamic Global Equity Fund1 Schroder UK-Listed Equity Income Maximiser Fund2 Schroder Global Energy Transition Fund3

1 Schroder Islamic Global Equity Fund was launched on 10 November 2020. 2 Schroder UK-Listed Equity Income Maximiser Fund was launched on 4 December 2020. 3 Schroder Global Energy Transition Fund was launched on 8 December 2020. Principal activities The Company’s principal activity is to carry on business as an Open Ended Investment Company. The Company is structured as an umbrella Company and different sub funds may be established by the Authorised Corporate Director from time to time with the agreement of the Depositary and approval from the Financial Conduct Authority. The sub funds are operated separately and the assets of each sub fund are managed in accordance with the investment objective and policy applicable to that sub fund. Liabilities of the Company The sub funds are segregated portfolios of assets and, accordingly, the assets of each sub fund belong exclusively to that sub fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the Company, or any other sub fund, and shall not be available for any such purpose. Subject to the above, each sub fund will be charged with the liabilities, expenses, costs and charges attributable to that sub fund and within each sub fund charges will be allocated as far as possible according to the net asset value of that particular share class. Any assets, liabilities, expenses, costs or charges not attributable to a particular sub fund may be allocated by the Authorised Corporate Director in a manner which it believes is fair to the shareholders generally. This will normally be pro rata to the net asset value of the relevant sub funds. Shareholders are not liable for the debts of the Company. Shareholders are not liable to make any further payments to the Company after they have paid the purchase price of the share. Significant events As per the investor communication, the Authorised Corporate Director wishes to pass on some of the benefits of potential savings generated by significant growth in assets under management, discounting the Annual Management Charge payable by investors in retail classes in the funds. The applicable discount is determined by the size of each Fund and is capped at 0.05% with effect from 1 December 2020 on funds large enough to qualify. For more information on the discount please refer to the Prospectus.

Schroder Investment Fund Company Final Report and Accounts 3 31 December 2020 Statement of the Authorised Corporate Director’s Responsibilities

The Financial Conduct Authority’s Collective Investment Schemes sourcebook requires the Authorised Corporate Director 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 Company and of its net revenue and the net capital losses on the property of the Company for the year. In preparing the accounts the Authorised Corporate Director 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 Company 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 Authorised Corporate Director is responsible for the management of the Company in accordance with The Open Ended Investment Companies Regulations 2001 (SI 2001/1228) (‘the OEIC Regulations’), the Company’s Instrument of Incorporation, 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 Authorised Corporate Director's report and accounts for the year ended 31 December 2020 were signed on 28 April 2021 on behalf of the Authorised Corporate Director by:

S. Reedy J. Rainbow Directors

Schroder Investment Fund Company Final Report and Accounts 4 31 December 2020 Report of the Depositary

Statement of the Depositary's responsibilities in respect of the Scheme and report of the Depositary to the shareholders of the Schroder Investment Fund Company (‘the Company’) for the year ended 31 December 2020 The Depositary must ensure that the Company is managed in accordance with the Financial Conduct Authority’s Collective Investment Schemes Sourcebook, the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228), as amended, the Financial Services and Markets Act 2000, as amended, (together ‘the regulations’), the Company’s Instrument of Incorporation and Prospectus (together ‘the Scheme documents’) as detailed below. The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests of the Company and its investors. The Depositary is responsible for the safekeeping of all custodial assets and maintaining a record of all other assets of the Company in accordance with the regulations. The Depositary must ensure that: ¯¯ the Company’s cash flows are properly monitored and that cash of the Company is booked into the cash accounts in accordance with the regulations; ¯¯ the sale, issue, repurchase, redemption and cancellation of shares are carried out in accordance with the regulations; ¯¯ the value of shares of the Company are calculated in accordance with the regulations; ¯¯ any consideration relating to transactions in the Company’s assets is remitted to the Company within the usual time limits; ¯¯ the Company’s income is applied in accordance with the regulations; and the instructions of the Authorised Corporate Director (“the ACD”), which is the UCITS Management Company, are carried out (unless they conflict with the regulations). The Depositary also has a duty to take reasonable care to ensure that the Company is managed in accordance with the regulations and the Scheme documents of the Company in relation to the investment and borrowing powers applicable to the Company. Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the Company, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the Company, acting through the ACD: (i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Company’s shares and the application of the Company’s income in accordance with the regulations and the Scheme documents of the Company; and (ii) has observed the investment and borrowing powers and restrictions applicable to the Company.

J.P. Morgan Europe Limited Depositary Bournemouth 15 April 2021

Schroder Investment Fund Company Final Report and Accounts 5 31 December 2020 Independent auditors’ report to the Shareholders of Schroder Investment Fund Company

Report on the audit of the financial statements Opinion In our opinion, the financial statements of Schroder Investment Fund Company (the “Company”): ¯¯ give a true and fair view of the financial position of the Company and each of the sub-funds as at 31 December 2020 and of the net revenue/expenses and the net capital gains/(losses) on the scheme property of the Company and each of the sub-funds for the respective periods then ended (“respective periods” is defined as 01 January 2020 to 31 December 2020 for all sub-funds except Schroder Islamic Global Equity Fund with a period of 10 November 2020 to 31 December 2020, Schroder UK-Listed Equity Income Maximiser Fund with a period of 04 December 2020 to 31 December 2020 and Schroders Global Energy Transition Fund with a period of 08 December 2020 to 31 December 2020 then ended); and ¯¯ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law), the Statement of Recommended Practice for UK Authorised Funds, the Collective Investment Schemes sourcebook and the Instrument of Incorporation. Schroder Investment Fund Company is an Open Ended Investment Company (‘OEIC’) with 14 sub-funds. The financial statements of the Company comprise the financial statements of each of the sub-funds. We have audited the financial statements, included within the Final Report and Accounts (the “Annual Report”), which comprise: the Balance Sheets as at 31 December 2020; the Statements of Total Return and the Statements of Change in Net Assets Attributable to Shareholders for the periods then ended; the Distribution Tables; the Accounting Policies; and the Notes to the Accounts. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Conclusions relating to going concern Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s or any sub-funds’ ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue. In auditing the financial statements, we have concluded that the Authorised Corporate Director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Company’s or any sub-funds’ ability to continue as a going concern. Our responsibilities and the responsibilities of the Authorised Corporate Director with respect to going concern are described in the relevant sections of this report. Reporting on other information The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Authorised Corporate Director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Authorised Corporate Director’s Report In our opinion, the information given in the Authorised Corporate Director’s Report for the financial periods for which the financial statements are prepared is consistent with the financial statements. Responsibilities for the financial statements and the audit Responsibilities of the Authorised Corporate Director for the financial statements As explained more fully in the Statement of the Authorised Corporate Director’s Responsibilities, the Authorised Corporate Director is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Authorised Corporate Director is also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Authorised Corporate Director is responsible for assessing the Company’s and each of the sub-funds ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Authorised Corporate Director either intends to wind up or terminate the Company or individual sub-fund, or has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Schroder Investment Fund Company Final Report and Accounts 6 31 December 2020 Independent auditors’ report to the Shareholders of Schroder Investment Fund Company (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of the Collective Investment Schemes sourcebook, and we considered the extent to which non-compliance might have a material effect on the financial statements, in particular those parts of the sourcebook which may directly impact on the determination of amounts and disclosures in the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or to increase the net asset value of the Company or the sub-funds and judgements and assumptions made by management in their significant accounting estimates. Audit procedures performed included: ¯¯ Discussions with the Authorised Corporate Director, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; ¯¯ Reviewing relevant meeting minutes, including those of the Authorised Corporate Director’s board of directors; ¯¯ Identifying and testing journal entries, specifically any journals posted as part of the financial year end close process; and ¯¯ Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org. uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report This report, including the opinions, has been prepared for and only for the Company’s shareholders as a body in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook as required by paragraph 67(2) of the Open-Ended Investment Companies Regulations 2001 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Other required reporting Opinion on matter required by the Collective Investment Schemes sourcebook In our opinion, we have obtained all the information and explanations we consider necessary for the purposes of the audit. Collective Investment Schemes sourcebook exception reporting Under the Collective Investment Schemes sourcebook we are also required to report to you if, in our opinion: ¯¯ proper accounting records have not been kept; or ¯¯ the financial statements are not in agreement with the accounting records. We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 28 April 2021

Schroder Investment Fund Company Final Report and Accounts 7 31 December 2020 Statement of Cross Holdings

As of 31 December 2020 there were no sub fund cross holdings within the Company.

Schroder Investment Fund Company Final Report and Accounts 8 31 December 2020 Accounting Policies

1 Accounting policies 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)).

Revenue Dividends and real estate income distributions receivable from equity investments and distributions receivable from authorised unit trusts and other collective investment schemes are recognised net of attributable tax credits and are credited to revenue when they are ﬁrst quoted ex-dividend. Interest receivable from bank balances, futures clearing houses and brokers is accounted for on an accruals basis. Interest receivable from debt securities is accounted for on an effective yield basis. Underwriting commissions are included under Revenue when received except where the Company is required to take up shares. In these cases commission is deducted from the capital cost of those shares on a proportional basis. The dividend equivalent values on contracts for difference received on long positions are recognised when the underlying securities are quoted ex-dividend. These are included in Revenue as Net revenue return from derivative contracts. Option premium received by the Company is amortised to revenue over the period to maturity where the option is out of the money at the time the contract is written. Option premium is taken to capital for options that are in the money at the time of writing.

Special dividends Special dividends are treated as revenue or capital depending on the facts of each particular case.

Equalisation Equalisation on distributions received by the Company is deducted from the cost of investments. As such the equalisation on distributions received by the Company does not form part of the Company’s distribution.

Interest on debt securities bought or sold Interest on debt securities bought or sold is excluded from the capital cost of securities, and is dealt with as part of the revenue of the Company.

Expenses Expenses of the Company are charged against revenue except for costs associated with the purchase and sale of investments which are allocated to the capital of the Company. All expenses except for professional fee are accounted for on an accruals basis. All expenses are initially charged to revenue but ultimately borne by the capital of the Schroder Sterling Corporate Bond Fund, Schroder Core UK Equity Fund, Schroder UK Alpha Income Fund, Schroder Strategic Credit Fund and Schroder European Alpha Income Fund. The costs of establishing and maintaining the hedging programme for the hedged share classes, the liabilities, expenses and charges directly attributable to a hedged share class will be allocated to the capital of that specific hedged share class. Interest on contracts for differences is recognised on an earned basis and is included in Interest payable and similar charges. For Schroder Sterling Corporate Bond Fund and Schroder Global Islamic Equity Fund, it has been agreed that certain expenses may be borne by the Authorised Corporate Director to ensure that the Ongoing charges ﬁgure for Q Income shares and Q2 Accumulation shares does not exceed 0.42% and 0.40% respectively.

Taxation Schroder Sterling Corporate Bond Fund and Schroder Strategic Credit Fund satisﬁed the qualifying investments test of Statutory Instrument 2006/964 Authorised Investment Funds (Tax) Regulations 2006 Regulation 19 throughout the year. All distributions made are therefore made as interest distribution Corporation tax on other sub funds is provided for on the revenue liable to corporation tax less deductible expenses. The tax effect of different items of revenue or expense is allocated between revenue and capital using the marginal basis. Deferred taxation is provided for on all timing differences that have originated but not reversed by the balance sheet date, other than those differences regarded as permanent. Any liability to deferred taxation is provided for at the average rate of taxation expected to apply. Deferred tax assets and liabilities are not discounted to reﬂect the time value of money.

Distributions The revenue available for distribution is the total revenue earned by the Company, less deductible expenses and taxation charged to revenue. For Accumulation shares this revenue is not distributed but automatically reinvested in the Company and is reﬂected in the value of these shares. Recognised deferred tax assets are treated as revenue but do not form part of the distribution until they are utilised. For the purpose of calculating the distribution, revenue on debt securities is calculated on a coupon basis where this exceeds the amount determined on an effective yield basis. As a consequence, the capital value of the Company may be eroded. Distributions which have remained unclaimed by shareholders for more than six years are credited to the capital property of the Company.

Dilution adjustment In certain circumstances the Authorised Corporate Director may apply a dilution adjustment on subscriptions and redemptions of shares. If applied, the dilution adjustment is paid to the Company. See Prospectus for further details.

Valuation All investments held by the Company have been valued at market value at 18:00 on the last working day of the accounting period. Market value is defined by the Statement of Recommended Practice as fair value which generally is the bid value of each security and the offer value for short positions. Non-exchange traded derivatives, including swaps and contracts for difference, are priced at fair value using valuation models and data sourced from market data providers and/or information provided by the relevant third party brokers. Dual priced authorised unit trusts have been valued at cancellation price. Single priced authorised unit trusts have been valued at the dealing price. All investments are valued net of any accrued interest which is included in the balance sheet as a revenue related item. Unquoted, illiquid and suspended investments are valued by the Investment Manager at a best assessment of fair value. Suspended securities which have previously been reported as having no value and expected to have no value in the future, are not included within the Portfolio Statement.

Schroder Investment Fund Company Final Report and Accounts 9 31 December 2020 Accounting Policies (continued)

Foreign currencies Transactions in foreign currencies are translated into sterling at the exchange rate prevailing on the date of the transaction. Assets and liabilities valued in foreign currencies have been translated into sterling at the exchange rates prevailing at the balance sheet date.

Sterling hedged share classes Hedged share classes allow the Authorised Corporate Director to use currency hedging transactions to seek to minimise the effect of exchange rate fluctuations between the base currency and the portfolio currencies of the Company. Currency hedging transactions include entering into over the counter currency forward contracts and foreign exchange agreements. Where undertaken, the effect of hedging will be reflected in the net asset value and therefore, in the performance of the relevant hedged share class. Any benefits or losses of the hedging transactions will accrue to shareholders in that hedged share class only. The Authorised Corporate Director will aim to hedge the capital currency exposure of the net asset value attributable to a hedged share class, however, the hedge may not always be at 100%. This is to avoid the transaction costs of making small and frequent adjusting transactions. The Authorised Corporate Director will review the relevant hedging positions daily and, if appropriate, adjust the hedge to reflect any change in currency exposure and the flow of shareholder issue and cancellation of shares.

Credit default swaps The upfront fees received on a mark to market basis are split between capital and revenue as appropriate. For sell protections, periodic premiums are accounted for on an accruals basis and are included under Net revenue return from derivative contracts.

Total return swaps Any revenue is calculated by reference to the quoted yield of the index upon which the total return swap is based compared to the London Interbank Offer Rate and may be revenue or an expense in relation to whether the Company held a net long or short position over the period. The revenue and expense position would be reversed if the London Interbank Offer Rate exceeds the quoted yield of the relevant index.

Contracts for difference The upfront fees received on a mark to market basis are split between capital and revenue as appropriate. Interest on contracts for differences is recognised on an earned basis and is included in Interest payable and similar charges.

Schroder Investment Fund Company Final Report and Accounts 10 31 December 2020 Schroder UK Opportunities Fund Fund Information

Investment objective and policy The Schroder UK Opportunities Fund (the ‘Fund’) aims to achieve capital growth and income in excess of the FTSE All Share Gross Total Return index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of UK companies. The Fund is actively managed and invests at least 80% of its assets in a concentrated range of equity and equity related securities of UK companies. These are companies that are incorporated, headquartered or have their principal business activities in the UK. The Fund typically holds 30 to 50 companies. The Fund’s approach is grounded in the belief that sentiment drives share prices in the short term, such that companies with strong long-term prospects often become undervalued by the market. The Investment Manager looks to invest in the undervalued companies that have scope for positive change thereby realising the valuation anomaly over the medium to long term. 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 other Schroder funds), warrants and money market instruments, and hold cash. The Fund may use derivatives with the aim of reducing risk or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). Fund characteristics The Fund’s performance should be assessed against its target benchmark, being to exceed the FTSE All Share (Gross Total Return) index, and compared against the Investment Association UK All Companies sector average return. The Investment Adviser invests on a discretionary basis and is not limited to investing in accordance with the composition of this benchmark. The target benchmark has been selected because it is representative of the type of investments in which the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the return that the Fund aims to provide. The comparator benchmark has been selected because the Investment Adviser and the ACD believe that this benchmark is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder UK Opportunities Fund Final Report and Accounts 11 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Fund Manager: shares on a dealing price basis fell 15.10%. In the same period, the FTSE1 All Alex Breese Share Index generated a negative total return of 9.82%2. The coronavirus (Covid-19) pandemic caused an accelerated sell-off in global financial markets in the period. Global equities fell sharply as efforts to deal with the virus, including wide-spread lockdowns on free movement, hit economic activity indiscriminately and simultaneously in all regions of the world. Markets retraced some of the losses as central banks and governments moved quickly to support the global economy with significant levels of additional monetary and fiscal stimulus, and towards the period end on the back of positive Covid-19 vaccine announcements. Not owning HSBC was a positive as the shares performed poorly due to heightened geopolitical risks and deteriorating fundamentals. Our mining positions Anglo American and BHP Group performed well as the sector was buoyed by commodity price strength. Pharmaceuticals group Sanofi was a top contributor as self-help measures and growth in allergic diseases treatment Dupixent helped drive an inflection in reported earnings Joined Schroders in July 2013 to manage the Schroder UK growth. Our underweight in oil and gas was a positive as the sector outlook deteriorated Equity & ISF UK Equity Funds with lower oil prices creating significant uncertainty. The fund underperformed, largely Previously Head of UK Equities and Investment Director at as a result of the broad based de-rating of “value” stocks over the period. Conversely, Neptune, having joined as an Investment Analyst in May 2005 the valuations of many expensive “quality growth” stocks which we don’t own ground higher, for example Scottish Mortgage Investment Trust. The fund’s financial holdings Became Fund Manager of the Neptune UK Special Situations underperformed, particularly the banks. All of the banks suspended outstanding dividends Fund at the end of 2006, and Assistant Fund Manager of the and share buybacks, and said they would not make any such distributions in 2020, in line Neptune Income and Neptune Quarterly Income Funds with guidance from the Prudential Regulation Authority (PRA). Given the Covid-19 situation Prior to this, Alex gained nearly three years’ experience as an this was the correct course of action. The PRA did, however, note the UK banks had engineering consultant sufficiently strong capital positions to withstand a severe UK and global recession (in line First class honours in Mechanical Engineering, CFA with its recent stress test findings) and in December confirmed distributions could resume, charterholder supporting a strong share price rebound in Q4. Capita detracted as it became apparent the support service group’s management led turnaround is taking longer than expected and we exited the holding in the period. We took profits in a number of holdings that have performed very well this year, including Sanofi and Anglo American. We initiated a number of new positions, including house builders Vistry Group and Bellway, Lloyd's insurer Hiscox and engineering company John Wood Group. We have long commented on the extreme levels of polarisation within the UK equity market, with higher growth companies trading on excessive valuations whilst many other stocks remain heavily out of favour and undervalued. Buoyed by a change in the US administration, vaccine progress and the Brexit deal we have seen a sharp rotation since early November. Despite this shift in market sentiment valuation dispersion has barely moved, which suggests the change of leadership could have much further to run.

1 FTSE International Limited (“FTSE”) © FTSE. “FTSE®” is a trade mark of London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. 2 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 UK Opportunities Fund Final Report and Accounts 12 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

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. The risk and reward indicator changed from 5 to 6 with effect from 14 July 2020. 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 UK Opportunities Fund Final Report and Accounts 13 31 December 2020 Comparative Table

A Accumulation shares C Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 439.97 374.96 447.51 492.55 417.68 495.96 Return before operating charges* (65.01) 71.85 (65.28) (72.55) 80.23 (72.67) Operating charges (5.83) (6.84) (7.27) (3.90) (5.36) (5.61) Return after operating charges* (70.84) 65.01 (72.55) (76.45) 74.87 (78.28)

Distributions1 (6.79) (10.06) (8.13) (10.27) (13.54) (11.58) Retained distributions1 6.79 10.06 8.13 10.27 13.54 11.58 Closing net asset value 369.13 439.97 374.96 416.10 492.55 417.68

*after direct transaction costs of (0.42) (1.10) (1.47) (0.47) (1.24) (1.62) – – – – – – Performance

Return after charges (%) (16.10) 17.34 (16.21) (15.52) 17.93 (15.78) – – – – – – Other information

Closing net asset value (£000's) 14,339 20,955 24,556 5,242 6,942 6,755 Closing number of shares 3,884,599 4,762,893 6,548,872 1,259,718 1,409,307 1,617,271 Operating charges (%) 1.68 1.67 1.67 0.93 1.17 1.17 Direct transaction costs (%)** 0.12 0.27 0.34 0.12 0.27 0.34 – – – – – – Prices

Highest dealing price 445.09p 447.20p 464.80p 498.29p 500.60p 516.10p Lowest dealing price 268.39p 372.80p 366.50p 300.81p 415.20p 408.20p

Schroder UK Opportunities Fund Final Report and Accounts 14 31 December 2020 Comparative Table (continued)

C Income shares D Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 320.43 279.58 340.48 51.77 45.16 54.98 Return before operating charges* (47.58) 53.39 (49.18) (7.69) 8.64 (7.94) Operating charges (2.52) (3.56) (3.82) (0.35) (0.42) (0.46) Return after operating charges* (50.10) 49.83 (53.00) (8.04) 8.22 (8.40)

Distributions1 (6.64) (8.98) (7.90) (1.13) (1.61) (1.42) Retained distributions – – – – – – Closing net asset value 263.69 320.43 279.58 42.60 51.77 45.16

*after direct transaction costs of (0.30) (0.82) (1.11) (0.05) (0.13) (0.18) – – – – – – Performance

Return after charges (%) (15.64) 17.82 (15.57) (15.53) 18.20 (15.28) – – – – – – Other information

Closing net asset value (£000's) 2,824 3,727 4,458 32 40 39 Closing number of shares 1,071,177 1,162,927 1,594,531 76,137 76,137 86,137 Operating charges (%) 0.93 1.17 1.17 0.85 0.85 0.84 Direct transaction costs (%)** 0.12 0.27 0.34 0.12 0.27 0.34 – – – – – – Prices

Highest dealing price 324.22p 330.00p 354.30p 52.38p 53.40p 57.29p Lowest dealing price 195.73p 277.90p 276.10p 31.65p 44.90p 44.68p

Schroder UK Opportunities Fund Final Report and Accounts 15 31 December 2020 Comparative Table (continued)

S Income shares Z Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 49.96 43.58 53.10 524.36 443.54 525.36 Return before operating charges* (7.42) 8.34 (7.69) (77.24) 85.30 (77.14) Operating charges (0.22) (0.26) (0.28) (3.86) (4.48) (4.68) Return after operating charges* (7.64) 8.08 (7.97) (81.10) 80.82 (81.82)

Distributions1 (1.21) (1.70) (1.55) (11.23) (15.61) (13.54) Retained distributions1 – – – 11.23 15.61 13.54 Closing net asset value 41.11 49.96 43.58 443.26 524.36 443.54

*after direct transaction costs of (0.05) (0.13) (0.17) (0.50) (1.31) (1.72) – – – – – – Performance

Return after charges (%) (15.29) 18.54 (15.01) (15.47) 18.22 (15.57) – – – – – – Other information

Closing net asset value (£000's) 6,907 13,512 30,694 54,573 83,952 93,219 Closing number of shares 16,800,135 27,046,092 70,427,540 12,311,830 16,010,447 21,016,896 Operating charges (%) 0.55 0.55 0.54 0.93 0.92 0.92 Direct transaction costs (%)** 0.12 0.27 0.34 0.12 0.27 0.34 – – – – – – Prices

Highest dealing price 50.55p 51.61p 55.39p 530.48p 532.90p 547.30p Lowest dealing price 30.56p 43.32p 43.19p 320.42p 441.00p 433.50p

Schroder UK Opportunities Fund Final Report and Accounts 16 31 December 2020 Comparative Table (continued)

Z Income shares 2020 2019 2018 Financial year to 31 December p per share p per share p per share Change in net asset value

Opening net asset value 427.47 372.94 454.24 Return before operating charges* (63.51) 71.29 (65.64) Operating charges (3.13) (3.73) (4.03) Return after operating charges* (66.64) 67.56 (69.67)

Distributions1 (9.09) (13.03) (11.63) Retained distributions – – – Closing net asset value 351.74 427.47 372.94

*after direct transaction costs of (0.40) (1.09) (1.48) – – – Performance

Return after charges (%) (15.59) 18.12 (15.34) – – – Other information

Closing net asset value (£000's) 3,991 6,907 8,112 Closing number of shares 1,134,633 1,615,879 2,175,179 Operating charges (%) 0.93 0.92 0.92 Direct transaction costs (%)** 0.12 0.27 0.34 – – – Prices

Highest dealing price 432.53p 440.80p 473.20p Lowest dealing price 261.26p 370.70p 368.80p

1 These figures have been rounded to 2 decimal places. ** Direct transaction costs have been stated after deducting the proportion of the amounts collected from dilution adjustments. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 UK Opportunities Fund Final Report and Accounts 17 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets Equities 98.61% (97.03%) ITV 696,828 744 0.85 Next 29,916 2,120 2.41 Oil & Gas 3.58% (12.12%) Pearson 366,186 2,488 2.83 BP 739,708 1,885 2.14 Tesco 2,032,179 4,702 5.35 John Wood Group 406,821 1,262 1.44 Wm Morrison 3,147 3.58 Supermarkets 1,166,325 2,068 2.35 Basic Materials 12.38% (7.04%) WPP 484,325 3,874 4.41 Anglo American 195,179 4,732 5.38 17,241 19.61 BHP Group 239,275 4,606 5.24 Telecommunications 4.53% (1.08%) Mondi 89,637 1,542 1.76 BT Group 1,731,918 2,291 2.61 10,880 12.38 Vodafone Group 1,399,348 1,692 1.92 Industrials 14.81% (14.82%) 3,983 4.53 Aggreko 151,797 949 1.08 Financials 24.00% (25.26%) BAE Systems 407,064 1,990 2.26 Ashmore Group 109,143 471 0.54 Balfour Beatty 756,495 2,044 2.33 Aviva 927,090 3,015 3.43 Forterra 129,589 316 0.36 Barclays 865,443 1,269 1.44 Hays 481,303 688 0.78 Hiscox 134,907 1,341 1.53 Morgan Advanced Legal & General Materials 275,380 856 0.97 Group 1,398,969 3,723 4.24 QinetiQ Group 810,554 2,592 2.95 Lloyds Banking Serco Group 145,202 174 0.20 Group 4,947,244 1,803 2.05 Smiths Group 123,006 1,850 2.11 Natwest Group 1,254,012 2,100 2.39 Travis Perkins 115,524 1,556 1.77 Provident Financial 590,972 1,814 2.06 13,015 14.81 Standard Chartered 821,788 3,828 4.35 Consumer Goods 11.52% (6.23%) TP ICAP 728,096 1,734 1.97 Bellway 39,938 1,180 1.34 21,098 24.00 British American Equities total 86,683 98.61 Tobacco 63,342 1,715 1.95 Headlam Group 450,920 1,623 1.84 Collective Investment Schemes 1.02% (0.97%) Imperial Brands 206,521 3,171 3.61 Global Equity Funds 1.02% (0.97%) Vistry Group 152,326 1,424 1.62 Sherborne Investors Guernsey C§ 2,210,000 902 1.02 Volkswagen Preference0% 7,479 1,018 1.16 902 1.02 10,131 11.52 Collective Investment Schemes Health Care 8.18% (10.15%) total 902 1.02 AstraZeneca 17,177 1,258 1.43 Portfolio of investments 87,585 99.63 GlaxoSmithKline 318,061 4,268 4.86 Net other assets 323 0.37 Sanofi 23,591 1,662 1.89 7,188 8.18 Net assets attributable to shareholders 87,908 100.00 Consumer Services 19.61% (20.33%) Daily Mail & General Trust A 167,073 1,245 1.41

The comparative percentage figures in brackets are as at 31 December 2019. Unless otherwise stated, all securities are admitted to official stock exchange listings or are permitted collective investment schemes. § Closed ended Fund.

Schroder UK Opportunities Fund Final Report and Accounts 18 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (25,998) – 20,900 Revenue 3 3,477 – 6,172 – Expenses 4 (965) – (1,499) – Net revenue before taxation 2,512 – 4,673 – Taxation 5 (5) – (11) – Net revenue after taxation 2,507 4,662 Total return before distributions (23,491) 25,562 Distributions 6 (2,507) (4,666) Change in net assets attributable to shareholders from investment activities (25,998) 20,896

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020 2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 136,035 167,932 Amounts receivable on issue of shares 620 – 371 – Amounts payable on cancellation of shares (24,662) – (56,599) – (24,042) (56,228) Dilution adjustment 4 21 Change in net assets attributable to shareholders from investment activities (25,998) 20,896 Retained distribution on Accumulation shares 1,908 3,412 Unclaimed distributions 1 2 Closing net assets attributable to shareholders 87,908 136,035

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 87,585 133,318 Current assets Debtors 8 315 268 Cash and bank balances 369 3,140 Total assets 88,269 136,726 – – Liabilities – – Creditors Distributions payable (180) (374) Other creditors 9 (181) (317) Total liabilities (361) (691) – – Net assets attributable to shareholders 87,908 136,035

Schroder UK Opportunities Fund Final Report and Accounts 19 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder UK Opportunities Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities (25,977) 20,902 Foreign currency (losses)/gains (14) 3 Transaction costs (7) (5) Net capital (losses)/gains (25,998) 20,900

3 Revenue

2020 2019 £000's £000's UK dividends 3,265 5,958 Overseas dividends 210 192 Bank interest 2 22 Total revenue 3,477 6,172

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 801 1,248 Administration charge 143 224 944 1,472 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 10 16 Safe custody fees 1 1 11 17 Other expenses:

Audit fee 10 10 Total expenses 965 1,499

Schroder UK Opportunities Fund Final Report and Accounts 20 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Analysis of the tax charge for the year 2020 2019 £000's £000's Overseas withholding tax 5 11 Total current tax (Note 5(b)) 5 11

(b) Factors affecting the current tax charge for the year The tax assessed for the year is different from that calculated when the standard rate of corporation tax for Open Ended Investment Companies of 20% (2019 – 20%) is applied to the net revenue before taxation. The differences are explained below.

2020 2019 £000’s £000’s Net revenue before taxation 2,512 4,673

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 502 935 Effects of:

Revenue not subject to corporation tax (695) (1,230) Movement in excess management expenses 193 295 Irrecoverable overseas withholding tax 5 11 Current tax charge for the year (Note 5(a)) 5 11

(c) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £14,408,243 (2019 – £14,215,599) in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the year or prior year. 6 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Interim Dividend distribution 1,301 2,402 Final Dividend distribution 1,027 1,900 2,328 4,302 Add: Revenue deducted on cancellation of shares 182 368 Deduct: Revenue received on issue of shares (3) (4) Distributions 2,507 4,666

Net revenue after taxation 2,507 4,662 Equalisation on conversions – 4 Distributions 2,507 4,666

Details of the distributions per share are set out in the Distribution Table on pages 26 to 27.

Schroder UK Opportunities Fund Final Report and Accounts 21 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

7 Fair value hierarchy Instruments held at the year end are presented in line with amendments to FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland Fair value hierarchy disclosures.

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 87,585 – 133,318 – Level 2: Observable market data – – – – Level 3: Unobservable data – – – – Total 87,585 – 133,318 –

Level 1: Unadjusted quoted price in an active market for an identical instrument. Level 2: Valuation techniques using observable inputs other than quoted prices within level 1. Level 3: Valuation techniques using unobservable inputs.

Unobservable data Unobservable data has been used only where relevant observable market data is not available. Where there was no reputable price source for an investment, the Authorised Corporate Director has assessed information available from internal and external sources in order to arrive at an estimated fair value. The fair value is established by using measures of value such as the price of recent transactions, earnings multiple and net assets. The Authorised Corporate Director of the Fund also makes judgements and estimates based on their knowledge of recent investment performance, historical experience and other assumptions that are considered reasonable under the circumstances. The estimates and the assumptions used are under continuous review by the Authorised Corporate Director with particular attention paid to the carrying value of the investments.

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares – 9 Accrued revenue 315 259 Total debtors 315 268

9 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 93 189 Accrued expenses 88 128 Total other creditors 181 317

10 Contingent liabilities There were no contingent liabilities at the balance sheet date (2019 – Nil). 11 Related party transactions The Authorised Corporate Director exercises control over the Fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the year or due to the Authorised Corporate Director at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies paid through the issue and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and Distributions in the Notes to the Accounts. Amounts due from or to the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Debtors and Other creditors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 8.83% (2019 – 10.58%).

Schroder UK Opportunities Fund Final Report and Accounts 22 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

12 Share classes The Fund currently has seven share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

A Accumulation shares 1.50% C Accumulation shares 0.75% (1.00% to 1 April 2020) C Income shares 0.75% (1.00% to 1 April 2020) D Income shares 0.675% S Income shares 0.375% Z Accumulation shares 0.75% Z Income shares 0.75%

The closing net asset value of each share class, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 14 to 17. The distributions per share class are given in the Distribution Table on pages 26 to 27. All classes have the same rights on winding up. 13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Market price risk The Fund’s investment portfolio is exposed to market price fluctuations which are monitored by the Authorised Corporate Director in pursuance of the investment objective and policy. Adherence to investment guidelines and to investment and borrowing powers set out in the Instrument of Incorporation, the Prospectus and in the Collective Investment Schemes sourcebook mitigates the risk of excessive exposure to any particular type of security or issuer.

Foreign currency risk Revenue received in other currencies is translated to sterling on or near the date of receipt. The Fund does not hedge or otherwise seek to avoid currency movement risk on accrued revenue. At the year end date, the majority of the Fund’s financial assets and liabilities were denominated in sterling. As a result, the Fund has no material exposure to currency movements.

Liquidity risk The primary source of this risk to the Fund is the liability to shareholders for any cancellation of shares. This risk is minimised by holding cash, readily realisable securities and access to overdraft facilities up to the amount prescribed by the Collective Investment Schemes sourcebook.

Interest rate risk Interest rate risk is the risk that the value of the Fund’s investment holdings will fluctuate as a result of changes in interest rates. Interest receivable on bank deposits positions will be affected by fluctuations in interest rates. At the year end date 0.42% (2019 – 2.31%) of the net assets of the Fund were interest bearing and as such the interest rate risk is not considered significant. Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average Rate.

Global risk exposure Commitment approach When using derivatives, the Authorised Corporate Director uses a risk management process that enables it to monitor the risk of a Fund’s derivative positions. The global risk exposure of a Fund is calculated daily either by means of the commitment approach or the Value-at-Risk (VaR) approach. Under the commitment approach, the global risk exposure is defined as the underlying market value of derivatives, after netting and hedging as permitted by the regulation, not exceeding the Net Asset Value of a Fund. This is typically used on Funds where derivative usage is low or Funds which limit their derivatives commitment to 100% or less of their Net Asset Value. The global risk exposure of the Fund is calculated using the commitment approach. During the year ended 31 December 2020 the global risk exposure of the Fund did not exceed 100% of its Net Asset Value. The lowest, highest, average and actual level of leverage for the Fund as at the balance sheet date was as follows:

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 0.00% 1.07% 0.01% 0.00% 0.00% 0.16% 0.01% 0.00%

Schroder UK Opportunities Fund Final Report and Accounts 23 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

14 Direct transaction costs In the case of shares, broker commissions and transfer taxes/stamp duty are paid by the Fund on each transaction. In addition, there is a dealing spread between buying and selling prices of the underlying investments. Unlike shares, other types of investments (such as bonds, money market instruments, derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment.

Principal Commissions Taxes Total cost Commissions Taxes % of 2020 £000's £000's £000's £000's % of principal principal Purchases

Equities 22,488 8 97 22,593 0.04 0.43

Sales

Equities 42,362 (13) – 42,349 (0.03) –

Total cost of the Fund's average net asset value (%) 0.02 0.10

Principal Commissions Taxes Total cost Commissions Taxes % of 2019 £000's £000's £000's £000's % of principal principal Purchases

Purchases1: Equities 70,882 30 331 71,243 0.04 0.47 Corporate actions purchases: – – – Equities 288 – – 288 – – 71,170 30 331 71,531

Sales

Equities 115,072 (47) – 115,025 (0.04) –

Total cost of the Fund's average net asset value (%) 0.05 0.22

1 Excluding corporate actions.

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.31% (2019 – 0.11%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price.

15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 A Accumulation shares 4,762,893 23,751 (875,306) (26,739) 3,884,599 C Accumulation shares 1,409,307 4,708 (154,297) – 1,259,718 C Income shares 1,162,927 693 (92,443) – 1,071,177 D Income shares 76,137 – – – 76,137 S Income shares 27,046,092 – (10,245,957) – 16,800,135 Z Accumulation shares 16,010,447 88,242 (3,795,700) 8,841 12,311,830 Z Income shares 1,615,879 41,691 (539,559) 16,622 1,134,633

Schroder UK Opportunities Fund Final Report and Accounts 24 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

16 Non-adjusting post balance sheet events As a result of market movements and foreign exchange rates, since the balance sheet date on 31 December 2020, the price of each share class has changed as follows:

Dealing price Dealing price 23.4.21 31.12.20 % change A Accumulation shares 413.00p 370.90p 11.35 C Accumulation shares 466.70p 418.10p 11.62 C Income shares 295.80p 268.20p 10.29 D Income shares 47.80p 43.34p 10.29 S Income shares 46.17p 41.89p 10.22 Z Accumulation shares 497.10p 445.40p 11.61 Z Income shares 394.60p 357.80p 10.29

Schroder UK Opportunities Fund Final Report and Accounts 25 31 December 2020 Distribution Table

Interim distribution for the six months ended 30 June 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.8.20 31.8.19 per share per share per share per share A Accumulation shares Group 1 3.5846p – 3.5846p 5.3114p Group 2 2.4391p 1.1455p 3.5846p 5.3114p C Accumulation shares Group 1 5.2505p – 5.2505p 7.0333p Group 2 5.1221p 0.1284p 5.2505p 7.0333p C Income shares Group 1 3.4168p – 3.4168p 4.6960p Group 2 1.6442p 1.7726p 3.4168p 4.6960p D Income shares Group 1 0.5971p – 0.5971p 0.8391p Group 2 0.5971p – 0.5971p 0.8391p S Income shares Group 1 0.6375p – 0.6375p 0.8791p Group 2 0.6375p – 0.6375p 0.8791p Z Accumulation shares Group 1 5.8818p – 5.8818p 8.0606p Group 2 2.9819p 2.8999p 5.8818p 8.0606p Z Income shares Group 1 4.7942p – 4.7942p 6.7827p Group 2 2.7178p 2.0764p 4.7942p 6.7827p

Final distribution for the six months ended 31 December 2020 Group 1 Shares purchased prior to 1 July 2020 Group 2 Shares purchased on or after 1 July 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Accumulation shares Group 1 3.2076p – 3.2076p 4.7474p Group 2 1.8453p 1.3623p 3.2076p 4.7474p C Accumulation shares Group 1 5.0243p – 5.0243p 6.5047p Group 2 2.7403p 2.2840p 5.0243p 6.5047p C Income shares Group 1 3.2236p – 3.2236p 4.2873p Group 2 0.5172p 2.7064p 3.2236p 4.2873p D Income shares Group 1 0.5353p – 0.5353p 0.7754p Group 2 0.5353p – 0.5353p 0.7754p

Schroder UK Opportunities Fund Final Report and Accounts 26 31 December 2020 Distribution Table (continued)

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share S Income shares Group 1 0.5735p – 0.5735p 0.8217p Group 2 0.5735p – 0.5735p 0.8217p Z Accumulation shares Group 1 5.3511p – 5.3511p 7.5491p Group 2 2.4357p 2.9154p 5.3511p 7.5491p Z Income shares Group 1 4.2983p – 4.2983p 6.2426p Group 2 3.2442p 1.0541p 4.2983p 6.2426p

Equalisation Equalisation applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of Group 2 shares and is refunded to the holders of these shares as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

Schroder UK Opportunities Fund Final Report and Accounts 27 31 December 2020 Schroder UK Dynamic Smaller Companies Fund Fund Information

Investment objective and policy The Schroder UK Dynamic Smaller Companies Fund (the ‘Fund’) aims to provide capital growth in excess of the FTSE Small Cap ex Investment Trust (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of small-sized UK companies. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of small-sized UK companies. These are companies that are incorporated, headquartered or have their principal business activities in the UK and, at the time of purchase, are similar in size to those comprising the bottom 10% by market capitalisation of the UK equities market. The Fund may also invest in companies headquartered or incorporated outside the UK which derive a significant proportion of their revenues or profits from the UK. The small cap universe is an extensive, diverse and constantly changing area of the UK market. Smaller companies offer investors exposure to some niche growth areas that, often, cannot be accessed through large companies. They also tend to grow more rapidly than larger firms. 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 or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). Fund characteristics The Fund’s performance should be assessed against its target benchmark, being to exceed the FTSE Small Cap ex Investment Trust (Gross Total Return) index, and compared against the Investment Association UK Smaller Companies sector average return. The Investment Adviser invests on a discretionary basis and is not limited to investing in accordance with the composition of the benchmark. The target benchmark has been selected because it is representative of the type of investments in which the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the return that the Fund aims to provide. The comparator benchmark has been selected because the Investment Adviser and the ACD believe that this benchmark is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 28 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Co-Fund Manager: shares on a dealing price basis rose 4.12%. In the same period, the FTSE1 Luke Biermann Small Cap ex Investment Trust Index generated a total return of 1.65%2. The coronavirus (Covid-19) pandemic caused an accelerated sell-off in global financial markets in the period. However, markets bounced back as central banks and governments moved quickly to support the global economy and new vaccines were shown to be effective. Our holdings with exposure to online gaming performed well as gaming activity picked up sharply during lockdowns. Our top contributors included game developers Team17 Group and Codemasters Group Holdings (the subject of a bidding war towards the end of the review period) and direct carrier billing aggregator Boku. Retail derivatives platform provider CMC Markets performed very well as it benefited from the extreme volatility seen earlier in the period. Hobby and crafting business Games Workshop Group also European Smaller Company Fund Manager, based in London performed very well. The company reported its fourth year of record constant currency Luke has more than 14 years’ experience on the European sales, profits and cash generation despite the Covid-19 disruption. Not owning speciality pharmaceutical group Indivior detracted after settling a dispute with the US Department Smaller Companies team, having joined in 2006. For the of Justice over an opiate dependency treatment. A zero exposure to oil exploration and majority of this tenure Luke has specialised on Continental production businesses Premier Oil was a negative due to the sharp recovery in crude oil Europe prices. Meanwhile, not owning gold miner Petropavlovsk detracted as it rose sharply in line with gold prices. We participated in a number of placings earlier in the period and added CFA Charterholder to our holding in fast expanding and highly profitable niche hospitality business Loungers. Investment Management Certificate (IMC) We exited our position in industrial chain manufacturer Renold. First-class BSc (Hons) in Computer Science, University of Bath Against a constrained macro-economic backdrop, smaller companies offer great potential for stock picking by providing concentrated access to “super cycle” themes. Economic and Co-Fund Manager: market cycles may wax and wane, but technological advances and demographic change Iain Staples will continue to create new markets and opportunities for smaller companies.

Joined Schroders in 2012 from Altium, the UK mid-cap broker, where he led the UK Generalist equity research product Previously worked on the sell-side for 16 years’ having co- founded Clear Capital, the independent equity research house Broking career commenced in 1999 at Hoare Govett in the technology team Iain started his career at L.E.K. Consulting, the global management consulting firm, in 1995 MA in Mathematics, Cambridge University and MSc in Theoretical Physics, Manchester University

1 FTSE International Limited (“FTSE”) © FTSE. “FTSE®” is a trade mark of London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. 2 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 UK Dynamic Smaller Companies Fund Final Report and Accounts 29 31 December 2020 Risk Profile

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

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Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 30 31 December 2020 Comparative Table

Opening net asset value 461.61 380.99 437.68 508.63 417.70 477.44 Return before operating charges* 21.62 87.53 (49.37) 24.44 96.24 (54.14) Operating charges (6.70) (6.91) (7.32) (4.39) (5.31) (5.60) Return after operating charges* 14.92 80.62 (56.69) 20.05 90.93 (59.74)

Distributions1 – (2.90) (2.28) (0.21) (5.49) (4.91) Retained distributions1 – 2.90 2.28 0.21 5.49 4.91 Closing net asset value 476.53 461.61 380.99 528.68 508.63 417.70

*after direct transaction costs of (0.12) (0.17) (0.26) (0.13) (0.18) (0.29) – – – – – – Performance

Return after charges (%) 3.23 21.16 (12.95) 3.94 21.77 (12.51) – – – – – – Other information

Closing net asset value (£000's) 63,573 75,953 84,912 2,892 4,428 5,339 Closing number of shares 13,340,840 16,453,720 22,287,173 547,079 870,619 1,278,081 Operating charges (%) 1.67 1.67 1.67 0.92 1.17 1.17 Direct transaction costs (%)** 0.03 0.04 0.06 0.03 0.04 0.06 – – – – – – Prices

Highest dealing price 485.04p 467.70p 469.80p 538.11p 515.30p 514.30p Lowest dealing price 267.12p 388.40p 383.80p 294.65p 425.90p 420.70p

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 31 31 December 2020 Comparative Table (continued)

C Income shares S Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 440.40 365.84 422.65 84.94 69.32 78.74 Return before operating charges* 21.20 84.00 (47.54) 4.13 16.03 (8.99) Operating charges (3.81) (4.64) (4.94) (0.40) (0.41) (0.43) Return after operating charges* 17.39 79.36 (52.48) 3.73 15.62 (9.42)

Distributions1 (0.25) (4.80) (4.33) (0.38) (1.39) (1.31) Retained distributions1 – – – 0.38 1.39 1.31 Closing net asset value 457.54 440.40 365.84 88.67 84.94 69.32

*after direct transaction costs of (0.12) (0.16) (0.25) (0.02) (0.03) (0.05) – – – – – – Performance

Return after charges (%) 3.95 21.69 (12.42) 4.39 22.53 (11.96) – – – – – – Other information

Closing net asset value (£000's) 2,119 2,460 2,483 4,203 5,687 7,051 Closing number of shares 463,175 558,597 678,683 4,740,339 6,696,127 10,172,381 Operating charges (%) 0.92 1.17 1.17 0.54 0.54 0.54 Direct transaction costs (%)** 0.03 0.04 0.06 0.03 0.04 0.06 – – – – – – Prices

Highest dealing price 465.96p 447.70p 452.70p 90.26p 86.05p 85.18p Lowest dealing price 255.14p 373.00p 370.30p 49.27p 70.68p 69.82p

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 32 31 December 2020 Comparative Table (continued)

S Income shares Z Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 77.28 64.17 74.16 543.60 445.31 507.71 Return before operating charges* 3.74 14.77 (8.36) 26.15 102.75 (57.71) Operating charges (0.37) (0.38) (0.40) (4.36) (4.46) (4.69) Return after operating charges* 3.37 14.39 (8.76) 21.79 98.29 (62.40)

Distributions1 (0.34) (1.28) (1.23) (0.64) (7.08) (6.51) Retained distributions1 – – – 0.64 7.08 6.51 Closing net asset value 80.31 77.28 64.17 565.39 543.60 445.31

*after direct transaction costs of (0.02) (0.03) (0.04) (0.14) (0.19) (0.31) – – – – – – Performance

Return after charges (%) 4.36 22.42 (11.81) 4.01 22.07 (12.29) – – – – – – Other information

Closing net asset value (£000's) 7,038 10,241 11,725 139,271 170,299 169,937 Closing number of shares 8,763,086 13,252,765 18,272,183 24,632,461 31,327,751 38,161,918 Operating charges (%) 0.54 0.54 0.54 0.92 0.92 0.92 Direct transaction costs (%)** 0.03 0.04 0.06 0.03 0.04 0.06 – – – – – – Prices

Highest dealing price 81.98p 78.79p 79.52p 575.48p 550.70p 547.80p Lowest dealing price 44.83p 65.44p 65.18p 315.08p 454.00p 448.50p

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 33 31 December 2020 Comparative Table (continued)

Z Income shares 2020 2019 2018 Financial year to 31 December p per share p per share p per share Change in net asset value

Opening net asset value 503.66 418.33 483.35 Return before operating charges* 24.26 96.13 (54.39) Operating charges (4.03) (4.17) (4.45) Return after operating charges* 20.23 91.96 (58.84)

Distributions1 (0.60) (6.63) (6.18) Retained distributions – – – Closing net asset value 523.29 503.66 418.33

*after direct transaction costs of (0.13) (0.18) (0.29) – – – Performance

Return after charges (%) 4.02 21.98 (12.17) – – – Other information

Closing net asset value (£000's) 13,340 14,256 15,143 Closing number of shares 2,549,333 2,830,444 3,619,904 Operating charges (%) 0.92 0.92 0.92 Direct transaction costs (%)** 0.03 0.04 0.06 – – – Prices

Highest dealing price 533.24p 512.60p 517.90p Lowest dealing price 291.95p 426.60p 424.00p

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 34 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets Equities 96.75% (99.14%) Spire Healthcare Group 2,718,808 4,225 1.82 Oil & Gas 0.72% (1.33%) 6,248 2.69 Tekmar Group# 2,563,456 1,666 0.72 Consumer Services 13.29% (13.59%) 1,666 0.72 4imprint Group 49,149 1,261 0.54 Basic Materials 3.15% (1.87%) Everyman Media Treatt 900,763 7,332 3.15 Group# 3,711,050 3,934 1.69 7,332 3.15 Hollywood Bowl Industrials 41.59% (44.30%) Group 1,881,091 3,753 1.62 # Alpha Financial Loungers 2,282,880 4,931 2.12 Markets Consulting# 2,437,808 5,461 2.35 Marshall Motor # Augean# 3,870,273 8,128 3.50 Holdings 3,037,402 4,131 1.78 Boku# 7,556,419 10,730 4.62 On the Beach Group 734,304 2,735 1.18 # DiscoverIE Group 663,394 4,471 1.92 Quiz 1,774,198 116 0.05 Electrocomponents 209,092 1,820 0.78 TEN Entertainment Group 1,795,357 3,510 1.51 Eurocell 2,430,138 4,860 2.09 Wizz Air Holdings 46,418 2,118 0.91 Gooch & Housego# 399,665 4,656 2.00 XLMedia# 3,579,386 1,145 0.49 IWG 1,065,053 3,632 1.56 Young & Co's Johnson Service Brewery# 278,672 2,118 0.91 Group# 2,136,954 2,987 1.29 Young & Co's Macfarlane Group 1,674,670 1,444 0.62 Brewery A# 90,738 1,134 0.49 Midwich Group# 1,129,651 5,592 2.41 30,886 13.29 Oxford Instruments 74,473 1,483 0.64 Telecommunications 1.30% (0.00%) Renew Holdings# 1,506,354 8,255 3.55 Gamma Robert Walters 630,972 2,947 1.27 Communications# 185,645 3,026 1.30 # Simplybiz Group 1,409,074 2,508 1.08 3,026 1.30 Speedy Hire 2,866,817 2,024 0.87 Utilities 0.00% (0.30%) # Strix Group 1,565,679 3,413 1.47 Financials 5.60% (8.40%) # Thruvision Group 10,212,761 2,594 1.12 Brooks Macdonald TT Electronics 1,072,636 2,199 0.95 Group# 160,219 2,580 1.11 Vitec Group 211,463 1,933 0.83 CMC Markets 845,359 3,301 1.42 Vp 959,262 7,194 3.09 Distribution Finance Capital Holdings# 2,411,111 1,519 0.65 Wincanton 784,015 2,007 0.86 Record 2,581,049 1,239 0.53 Xaar 1,145,104 2,010 0.86 Secure Income XP Power 92,272 4,328 1.86 REIT# 1,310,501 3,931 1.69 96,676 41.59 Trufin# 1,008,027 454 0.20 Consumer Goods 16.30% (15.02%) 13,024 5.60 Codemasters Group Technology 12.11% (11.09%) Holdings# 797,003 5,180 2.23 Blackbird# 18,707,732 3,601 1.55 Games Workshop Group 71,837 8,046 3.46 CML Microsystems 591,364 2,011 0.87 IG Design Group# 1,056,625 6,488 2.79 dotdigital group# 3,904,776 6,111 2.63 Mar City^ 12,242,500 0 0.00 NCC Group 2,500,130 6,300 2.71 Nichols# 168,644 2,235 0.96 Quartix Holdings# 772,898 2,937 1.26 Sanderson Design Quixant# 2,779,014 3,891 1.67 # Group 4,801,351 4,033 1.74 Tracsis# 322,825 2,034 0.88 # Team17 Group 685,212 5,413 2.33 Zoo Digital Group# 2,052,249 1,252 0.54 # Warpaint London 1,082,937 801 0.34 28,137 12.11 # Watkin Jones 2,556,579 4,709 2.03 Equities total 224,871 96.75 Wynnstay Group# 291,486 971 0.42 Portfolio of investments 224,871 96.75 37,876 16.30 Health Care 2.69% (3.24%) Net other assets 7,565 3.25 Sensyne Health# 1,832,328 2,015 0.87 Net assets attributable to Sensyne Health shareholders 232,436 100.00 Rights 30/12/2020 38,985 8 0.00

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 35 31 December 2020 Portfolio Statement (continued)

The comparative percentage figures in brackets are as at 31 December 2019. Unless otherwise stated, all securities are admitted to official stock exchange listings. # Security traded on another regulated market. ^ Unlisted, suspended or delisted security.

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 36 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (1,076) – 52,869 Revenue 3 2,297 – 6,787 – Expenses 4 (2,408) – (3,144) – Net (expense)/revenue before taxation (111) – 3,643 – Taxation 5 – – – – Net (expense)/revenue after taxation (111) 3,643 Total return before distributions (1,187) 56,512 Distributions 6 (253) (3,660) Change in net assets attributable to shareholders from investment activities (1,440) 52,852

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020

2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 283,324 296,590 Amounts receivable on issue of shares 4,390 – 2,027 – Amounts payable on cancellation of shares (54,083) – (71,237) – (49,693) (69,210) Dilution adjustment 68 41 Change in net assets attributable to shareholders from investment activities (1,440) 52,852 Retained distribution on Accumulation shares 177 3,051 Closing net assets attributable to shareholders 232,436 283,324

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 224,871 280,889 Current assets Debtors 8 381 588 Cash and bank balances 7,781 2,475 Total assets 233,033 283,952 – – Liabilities – – Creditors Distributions payable (37) (140) Other creditors 9 (560) (488) Total liabilities (597) (628) – – Net assets attributable to shareholders 232,436 283,324

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 37 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder UK Dynamic Smaller Companies Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities (1,070) 52,876 Transaction costs (6) (7) Net capital (losses)/gains (1,076) 52,869

3 Revenue

2020 2019 £000's £000's UK dividends 2,048 6,090 Overseas dividends 41 430 Real estate income distributions 206 253 Bank interest 2 14 Total revenue 2,297 6,787

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 2,045 2,674 Administration charge 328 428 2,373 3,102 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 24 31 Safe custody fees 1 1 25 32 Other expenses:

Audit fee 10 10 Total expenses 2,408 3,144

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 38 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Factors affecting the current tax charge for the year The tax assessed for the year is different from that calculated when the standard rate of corporation tax for Open Ended Investment Companies of 20% (2019 – 20%) is applied to the net (expense)/revenue before taxation. The differences are explained below.

2020 2019 £000’s £000’s Net (expense)/revenue before taxation (111) 3,643

Net (expense)/revenue for the year before taxation multiplied by the standard rate of corporation tax (22) 729 Effects of:

Revenue not subject to corporation tax (418) (1,304) Movement in excess management expenses 440 575 Current tax charge for the year – –

(b) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £11,017,904 (2019 – £10,577,990) in respect of unutilised management expenses and loan relationship debits. It is unlikely the Company will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the year or prior year. 6 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Interim Dividend distribution 17 2,406 Final Dividend distribution 208 1,068 225 3,474 Add: Revenue deducted on cancellation of shares 30 189 Deduct: Revenue received on issue of shares (2) (3) Distributions 253 3,660

Net (expense)/revenue after taxation (111) 3,643 Deficit taken to capital 363 – Equalisation on conversions 1 17 Distributions 253 3,660

Details of the distributions per share are set out in the Distribution Table on pages 44 to 45.

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 39 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 224,871 – 280,889 – Level 2: Observable market data – – – – Level 3: Unobservable data – – – – Total 224,871 – 280,889 –

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 33 110 Sales awaiting settlement 15 77 Accrued revenue 325 393 Overseas withholding tax recoverable 8 8 Total debtors 381 588

9 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 332 216 Accrued expenses 228 272 Total other creditors 560 488

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 40 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

A Accumulation shares 1.50% C Accumulation shares 0.75% (1.00% to 1 April 2020) C Income shares 0.75% (1.00% to 1 April 2020) S Accumulation shares 0.375% S Income shares 0.375% Z Accumulation shares 0.75% Z Income shares 0.75%

The closing net asset value of each share class, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 31 to 34. The distributions per share class are given in the Distribution Table on pages 44 to 45. All classes have the same rights on winding up. 13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Interest rate risk Interest rate risk is the risk that the value of the Fund’s investment holdings will fluctuate as a result of changes in interest rates. Interest receivable on bank deposits positions will be affected by fluctuations in interest rates. At the year end date 3.35% (2019 – 0.87%) of the net assets of the Fund were interest bearing and as such the interest rate risk is not considered significant. Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average Rate.

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 41 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Principal Commissions Taxes Total cost Commissions Taxes % of 2020 £000's £000's £000's £000's % of principal principal Purchases

Equities 15,044 5 26 15,075 0.03 0.17

Sales

Equities 70,056 (33 ) (1 ) 70,022 (0.05) –

Total cost of the Fund's average net asset value (%) 0.02 0.01

Principal Commissions Taxes Total cost Commissions Taxes % of 2019 £000's £000's £000's £000's % of principal principal Purchases

Equities 34,080 14 58 34,152 0.04 0.17

Sales

Equities 100,264 (47 ) – 100,217 (0.05) –

Total cost of the Fund's average net asset value (%) 0.02 0.02

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 2.57% (2019 – 2.49%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 A Accumulation shares 16,453,720 609,335 (3,461,163) (261,052) 13,340,840 C Accumulation shares 870,619 5,977 (189,853) (139,664) 547,079 C Income shares 558,597 7,983 (83,822) (19,583) 463,175 S Accumulation shares 6,696,127 – (1,955,788) – 4,740,339 S Income shares 13,252,765 – (4,489,679) – 8,763,086 Z Accumulation shares 31,327,751 148,284 (7,179,252) 335,678 24,632,461 Z Income shares 2,830,444 234,402 (549,975) 34,462 2,549,333

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 42 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Dealing price Dealing price 23.4.21 31.12.20 % change A Accumulation shares 561.30p 483.30p 16.14 C Accumulation shares 624.10p 536.20p 16.39 C Income shares 540.20p 464.30p 16.35 S Accumulation shares 104.80p 89.93p 16.54 S Income shares 94.93p 81.69p 16.21 Z Accumulation shares 667.50p 573.40p 16.41 Z Income shares 617.80p 531.30p 16.28

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 43 31 December 2020 Distribution Table

Interim distribution for the six months ended 30 June 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.8.20 31.8.19 per share per share per share per share A Accumulation shares Group 1 – – – 2.3606p Group 2 – – – 2.3606p C Accumulation shares Group 1 – – – 3.7253p Group 2 – – – 3.7253p C Income shares Group 1 – – – 3.2666p Group 2 – – – 3.2666p S Accumulation shares Group 1 0.1181p – 0.1181p 0.8499p Group 2 0.1181p – 0.1181p 0.8499p S Income shares Group 1 0.1072p – 0.1072p 0.7873p Group 2 0.1072p – 0.1072p 0.7873p Z Accumulation shares Group 1 – – – 4.5710p Group 2 – – – 4.5710p Z Income shares Group 1 – – – 4.2940p Group 2 – – – 4.2940p

Final distribution for the six months ended 31 December 2020 Group 1 Shares purchased prior to 1 July 2020 Group 2 Shares purchased on or after 1 July 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Accumulation shares Group 1 – – – 0.5364p Group 2 – – – 0.5364p C Accumulation shares Group 1 0.2142p – 0.2142p 1.7658p Group 2 0.1971p 0.0171p 0.2142p 1.7658p C Income shares Group 1 0.2547p – 0.2547p 1.5347p Group 2 0.2547p – 0.2547p 1.5347p S Accumulation shares Group 1 0.2614p – 0.2614p 0.5395p Group 2 0.2614p – 0.2614p 0.5395p

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 44 31 December 2020 Distribution Table (continued)

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share S Income shares Group 1 0.2376p – 0.2376p 0.4938p Group 2 0.2376p – 0.2376p 0.4938p Z Accumulation shares Group 1 0.6373p – 0.6373p 2.5138p Group 2 0.5122p 0.1251p 0.6373p 2.5138p Z Income shares Group 1 0.5969p – 0.5969p 2.3398p Group 2 0.5022p 0.0947p 0.5969p 2.3398p

Schroder UK Dynamic Smaller Companies Fund Final Report and Accounts 45 31 December 2020 Schroder Sterling Corporate Bond Fund Fund Information

Investment objective and policy The Schroder Sterling Corporate Bond Fund (the ‘Fund’) aims to provide income and capital growth in excess of the Bank of America Merrill Lynch Sterling Corporate & Collateralised (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in fixed and floating rate securities issued by UK companies and companies worldwide. The Fund is actively managed and invests at least 80% of its assets in fixed and floating rate securities denominated in sterling (or in other currencies and hedged back into sterling) and issued by UK companies and companies worldwide. The Fund may also invest in fixed and floating rate securities issued by governments, government agencies, and supra-nationals. The Fund may invest up to 20% of its assets in below investment grade securities (as measured by Standard & Poor’s or any other equivalent credit rating agencies) or in unrated securities. 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 achieving investment gains, reducing risk or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). The Fund may use leverage and take short positions. Fund characteristics The Fund’s performance should be assessed against its target benchmark, being to exceed the Bank of America Merrill Lynch Sterling Corporate & Collateralised (Gross Total Return) index, and compared against the Investment Association Sterling Corporate Bond sector average return. The Investment Adviser invests on a discretionary basis and is not limited to investing in accordance with the composition of the benchmark. The target benchmark has been selected because it is representative of the type of investments in which the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the return that the Fund aims to provide. The comparator benchmark has been selected because the Investment Adviser and the ACD believe that this benchmark is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder Sterling Corporate Bond Fund Final Report and Accounts 46 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Fund Manager: shares on a dealing price basis rose 14.50%. In the same period, the Bank of Jonathan Golan America Merrill Lynch Sterling Corporate & Collateralised Index generated a total return of 8.71%1. Corporate bonds performed well over the year, recovering strongly from the violent sell-off seen in March at the height of the Covid-19 crisis. The subsequent massive policy response from central banks and governments resulted in a forceful recovery in financial markets as well as stabilisation and some modest recovery in economies. Later in the year, sentiment was further boosted by the emergence of successful Covid-19 vaccines and a decisive outcome to the US election. The UK and EU reached an agreement on trade. The Fund made strong positive returns and significantly outperformed the benchmark. Jonathan Golan is a Fund Manager at Schroders, which This largely reflected purchases made following the March sell-off, which left valuations of involves helping manage the European Credit Fixed Income many corporate bonds vastly overstating risks and therefore at extremely attractive levels. strategy. He joined Schroders in 2013 and is based in London. We were able to add bonds of transportation companies, among others, at extremely high Jonathan was Fixed Income Analyst at Schroders from 2013 yields. to 2015, responsible for European Credit Fixed Income As we enter 2021 we are faced with a better macroeconomic outlook, but expensive credit Qualifications: MSc in Financial Economics from Oxford markets. Fundamentals are likely to improve rapidly as effective vaccines are rolled out. University; BA in Economics from The Hebrew University The consumer is in excellent shape having amassed savings during lockdowns, potentially supporting a sharper recovery than post-2008. One concern is that unprecedented money printing could ultimately cause inflation to emerge. The risk of inflation is not priced in government bond markets. Despite improving fundamentals, we are increasingly cautious primarily due to valuations. We reduced risk in December and increased cash. Active credit selection remains paramount.

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 Sterling Corporate Bond Fund Final Report and Accounts 47 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

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. The risk and reward indicator changed from 3 to 4 with effect from 14 July 2020. 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 Sterling Corporate Bond Fund Final Report and Accounts 48 31 December 2020 Comparative Table

A Accumulation shares A Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 83.07 72.82 74.30 65.32 59.57 63.20 Return before operating charges* 12.23 11.14 (0.65) 9.37 9.02 (0.54) Operating charges (0.96) (0.89) (0.83) (0.74) (0.72) (0.70) Return after operating charges* 11.27 10.25 (1.48) 8.63 8.30 (1.24)

Distributions1 (3.34) (3.17) (2.85) (2.59) (2.55) (2.39) Retained distributions1 3.34 3.17 2.85 – – – Closing net asset value 94.34 83.07 72.82 71.36 65.32 59.57

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 13.57 14.08 (1.99) 13.21 13.93 (1.96) – – – – – – Other information

Closing net asset value (£000's) 41,647 33,302 35,132 15,950 14,215 14,827 Closing number of shares 44,145,978 40,089,248 48,248,086 22,351,478 21,761,121 24,892,280 Operating charges (%) 1.11 1.12 1.12 1.11 1.12 1.12 – – – – – – Prices

Highest dealing price 94.94p 83.91p 74.87p 72.52p 66.63p 63.66p Lowest dealing price 72.90p 73.17p 72.57p 57.33p 59.86p 59.98p

Schroder Sterling Corporate Bond Fund Final Report and Accounts 49 31 December 2020 Comparative Table (continued)

C Accumulation shares C Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 159.86 139.77 142.26 65.02 59.14 62.59 Return before operating charges* 23.60 21.42 (1.25) 9.35 8.97 (0.54) Operating charges (1.12) (1.33) (1.24) (0.45) (0.55) (0.54) Return after operating charges* 22.48 20.09 (2.49) 8.90 8.42 (1.08)

Distributions1 (6.44) (6.09) (5.47) (2.58) (2.54) (2.37) Retained distributions1 6.44 6.09 5.47 – – – Closing net asset value 182.34 159.86 139.77 71.34 65.02 59.14

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 14.06 14.37 (1.75) 13.69 14.24 (1.73) – – – – – – Other information

Closing net asset value (£000's) 7,793 7,024 6,357 9,268 9,106 9,094 Closing number of shares 4,273,604 4,393,785 4,547,942 12,990,904 14,004,369 15,375,793 Operating charges (%) 0.61 0.87 0.87 0.61 0.87 0.87 – – – – – – Prices

Highest dealing price 183.49p 161.50p 143.40p 72.50p 66.32p 63.06p Lowest dealing price 140.37p 140.50p 139.30p 57.10p 59.44p 59.55p

Schroder Sterling Corporate Bond Fund Final Report and Accounts 50 31 December 2020 Comparative Table (continued)

Q Accumulation shares Q Income shares 2020 2020 2019 Financial year to 31 December p per share p per share p per share Change in net asset value

Opening net asset value 50.00 50.22 50.00 Return before operating charges* 8.44 7.25 0.44 Operating charges (0.12) (0.22) (0.03) Return after operating charges* 8.32 7.03 0.41

Distributions1 (1.33) (2.00) (0.19) Retained distributions1 1.33 – – Closing net asset value 58.32 55.25 50.22

*after direct transaction costs of – – – – – – Performance

Return after charges (%) 16.64 14.00 0.82 – – – Other information

Closing net asset value (£000's) 1 83,588 1 Closing number of shares 2,000 151,285,931 2,000 Operating charges (%) 0.42 0.42 0.42 – – – Prices

Highest dealing price 58.69p 56.15p 50.92p Lowest dealing price 50.00p 44.15p 49.99p

Schroder Sterling Corporate Bond Fund Final Report and Accounts 51 31 December 2020 Comparative Table (continued)

S Accumulation shares S Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 171.18 149.00 150.97 58.01 52.53 55.34 Return before operating charges* 25.33 22.87 (1.33) 8.37 7.98 (0.48) Operating charges (0.74) (0.69) (0.64) (0.25) (0.24) (0.23) Return after operating charges* 24.59 22.18 (1.97) 8.12 7.74 (0.71)

Distributions1 (6.91) (6.50) (5.82) (2.31) (2.26) (2.10) Retained distributions1 6.91 6.50 5.82 – – – Closing net asset value 195.77 171.18 149.00 63.82 58.01 52.53

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 14.36 14.89 (1.30) 14.00 14.73 (1.28) – – – – – – Other information

Closing net asset value (£000's) 12,308 9,193 8,134 347,018 56,765 72,113 Closing number of shares 6,286,709 5,370,496 5,459,231 543,775,896 97,856,020 137,292,003 Operating charges (%) 0.41 0.42 0.42 0.41 0.42 0.42 – – – – – – Prices

Highest dealing price 197.01p 172.90p 152.30p 64.85p 59.16p 55.75p Lowest dealing price 150.46p 149.70p 147.90p 50.99p 52.79p 52.86p

Schroder Sterling Corporate Bond Fund Final Report and Accounts 52 31 December 2020 Comparative Table (continued)

Z Accumulation shares Z Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 170.49 148.69 150.96 127.02 115.23 121.64 Return before operating charges* 25.19 22.82 (1.33) 18.27 17.51 (1.04) Operating charges (1.09) (1.02) (0.94) (0.80) (0.77) (0.75) Return after operating charges* 24.10 21.80 (2.27) 17.47 16.74 (1.79)

Distributions1 (6.87) (6.47) (5.81) (5.04) (4.95) (4.62) Retained distributions1 6.87 6.47 5.81 – – – Closing net asset value 194.59 170.49 148.69 139.45 127.02 115.23

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 14.14 14.66 (1.50) 13.75 14.53 (1.47) – – – – – – Other information

Closing net asset value (£000's) 413,639 241,034 71,081 307,529 130,114 44,591 Closing number of shares 212,571,869 141,380,409 47,804,720 220,524,772 102,439,968 38,696,143 Operating charges (%) 0.61 0.62 0.62 0.61 0.62 0.62 – – – – – – Prices

Highest dealing price 195.82p 172.20p 152.10p 141.71p 129.50p 122.60p Lowest dealing price 149.78p 149.40p 147.90p 111.59p 115.80p 116.00p

Q Accumulation shares The share class was launched on 18 May 2020. Q Income shares The share class was launched on 22 November 2019. 1 These figures have been rounded to 2 decimal places. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 Sterling Corporate Bond Fund Final Report and Accounts 53 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets

Corporate Bonds 83.67% (83.37%) Commerzbank FRN 6.5% Perpetual 9,000,000 9,103 0.73 Austria 0.77% (0.00%) 14,913 1.20 UNIQA Insurance Group FRN 3.25% Guernsey 2.07% (0.58%) 09/10/2035 10,100,000 9,540 0.77 Globalworth Real 9,540 0.77 Estate Investments REIT 3% 29/03/2025 14,490,000 13,691 1.10 Bermuda 0.61% (0.33%) Globalworth Real NCL 12.25% Estate Investments 15/05/2024 3,037,000 2,666 0.22 REIT 2.95% Hiscox FRN 6.125% 29/07/2026 8,064,000 7,567 0.61 24/11/2045 4,187,000 4,858 0.39 Pershing Square 7,524 0.61 Holdings 3.25% 15/11/2030 5,986,000 4,436 0.36 Brazil 0.17% (0.36%) 25,694 2.07 Prumo Participacoes e Investimentos Hong Kong 0.37% (0.00%) 7.5% 31/12/2031 2,593,850 2,122 0.17 Lenovo Group 2,122 0.17 3.421% 02/11/2030 5,968,000 4,589 0.37 4,589 0.37 Cayman Islands 0.65% (1.03%) Park Aerospace Iceland 0.00% (0.90%) Holdings 5.5% Ireland 3.06% (3.40%) 15/02/2024 1,082,000 863 0.07 Ryanair 2.875% Avolon Holdings 15/09/2025 15,736,000 15,086 1.22 Funding 4.25% Roadster Finance 15/04/2026 6,660,000 5,235 0.42 1.625% 09/12/2029 3,050,000 2,769 0.22 Avolon Holdings Roadster Finance Funding 4.375% 2.375% 08/12/2032 6,049,000 5,553 0.45 01/05/2026 1,813,000 1,437 0.12 Perrigo Finance Avolon Holdings 4.9% 15/12/2044 5,413,000 4,423 0.35 Funding 3.25% 15/02/2027 706,000 527 0.04 Aryzta Euro Finance FRN 4.5% Perpetual 5,546,000 4,716 0.38 8,062 0.65 Permanent TSB Czech Republic 0.17% (0.77%) Group Holdings FRN EP Infrastructure 7.875% Perpetual 5,843,000 5,422 0.44 2.045% 09/10/2028 2,229,000 2,069 0.17 37,969 3.06

2,069 0.17 Italy 0.91% (1.82%) Denmark 0.00% (0.66%) Superstrada Pedemontana France 3.63% (2.81%) Veneta, STEP 1.438% RCI Banque 1.875% 30/06/2047 800,000 702 0.06 08/11/2022 5,000,000 5,069 0.41 UnipolSai La Financiere Atalian Assicurazioni FRN 4% 15/05/2024 600,000 495 0.04 6.375% Perpetual 10,807,000 10,523 0.85 La Financiere 11,225 0.91 Atalian 6.625% 15/05/2025 2,987,000 2,761 0.22 Jersey 3.65% (1.44%) Electricite de France Galaxy Bidco 6.5% 4.5% 04/12/2069 4,800,000 3,985 0.32 31/07/2026 965,000 1,007 0.08 Electricite de France Galaxy Finco 9.25% 6% 23/01/2114 16,500,000 31,092 2.51 31/07/2027 7,900,000 8,196 0.66 Orange FRN 5.75% Heathrow Funding Perpetual 1,437,000 1,574 0.13 2.75% 13/10/2031 5,689,000 6,095 0.49 44,976 3.63 Gatwick Funding 5.75% 23/01/2039 513,000 721 0.06 Germany 1.20% (0.00%) Gatwick Funding Cheplapharm 3.125% 28/09/2041 4,020,000 4,333 0.35 Arzneimittel 5.5% AA Bond 6.269% 15/01/2028 2,849,000 2,167 0.18 02/07/2043 12,039,000 13,052 1.05 EnBW Energie AA Bond 4.875% Baden-Wuerttem- 31/07/2043 2,128,000 2,195 0.18 berg FRN 5.125% 05/04/2077 4,812,000 3,643 0.29

Schroder Sterling Corporate Bond Fund Final Report and Accounts 54 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Gatwick Funding AES Panama 3.25% 26/02/2048 402,000 438 0.04 Generation Gatwick Funding Holdings 4.375% 2.625% 07/10/2048 1,829,000 1,804 0.15 31/05/2030 (Private Placement) 7,478,000 5,907 0.47 AA Bond 5.5% 31/07/2050 2,600,000 2,741 0.22 ENA Master Trust 4% 19/05/2048 2,685,000 2,113 0.17 Gatwick Funding 2.875% 05/07/2051 4,520,000 4,627 0.37 12,062 0.97 45,209 3.65 Poland 0.40% (0.00%)

Luxembourg 4.87% (3.44%) mBank 1.058% 05/09/2022 5,464,000 4,910 0.40 Cirsa Finance International 4,910 0.40 7.875% 20/12/2023 2,031,000 1,489 0.12 Spain 0.33% (0.86%) Amigo Luxembourg 7.625% 15/01/2024 6,200,000 3,745 0.30 Abertis Infraestructuras Gazprom 4.25% 3.375% 27/11/2026 3,700,000 4,060 0.33 06/04/2024 647,000 686 0.06 4,060 0.33 Vivion Investments 3% 08/08/2024 3,800,000 3,133 0.25 Supranational 0.37% (0.00%) Garfunkelux Holdco Delta Air Lines 3 7.75% 01/11/2025 5,709,000 5,863 0.47 4.75% 20/10/2028 3,414,000 2,726 0.22 Vivion Investments Promigas 3.75% 3.5% 01/11/2025 1,700,000 1,419 0.11 16/10/2029 2,370,000 1,844 0.15 Cromwell Ereit 4,570 0.37 Lux Finco 2.125% 19/11/2025 7,663,000 6,994 0.57 Sweden 0.00% (0.40%) CPI Property Group Switzerland 0.67% (0.64%) 2.75% 22/01/2028 15,835,000 16,298 1.32 Aryzta FRN 5.227% Blackstone Property Perpetual 11,515,000 8,181 0.66 Partners Europe Aryzta FRN 3.439% Holdings 1.75% Perpetual 185,000 117 0.01 12/03/2029 9,248,000 8,704 0.70 CPI Property Group 8,298 0.67 FRN 5.8% Perpetual 23,500,000 12,020 0.97 United Kingdom 52.01% (52.99%) 60,351 4.87 Intermediate Capital Group 5% Mexico 0.24% (1.14%) 24/03/2023 955,000 1,011 0.08 Petroleos Mexicanos Provident Financial 3.75% 16/11/2025 3,100,000 2,924 0.24 8.25% 04/06/2023 9,056,000 9,070 0.73 2,924 0.24 Bracken MidCo1 Netherlands 1.44% (3.46%) 8.875% 15/10/2023 7,404,925 7,284 0.59 NIBC Bank 3.125% easyJet 1.125% 15/11/2023 2,700,000 2,858 0.23 18/10/2023 1,850,000 1,620 0.13 CTP 2.125% Jerrold Finco 6.125% 01/10/2025 2,872,000 2,717 0.22 15/01/2024 9,411,000 9,411 0.76 IPD 3 5.5% Saga 3.375% 01/12/2025 4,995,000 4,605 0.37 12/05/2024 6,315,000 5,755 0.46 Koninklijke KPN Ithaca Energy 5.75% 17/09/2029 3,000,000 3,665 0.30 North Sea 9.375% 15/07/2024 10,630,000 7,614 0.61 Iberdrola International FRN Firstgroup 6.875% 2.25% Perpetual 4,200,000 3,944 0.32 18/09/2024 10,206,000 11,562 0.93 Just Group 3.5% 17,789 1.44 07/02/2025 4,000,000 3,966 0.32 Panama 0.97% (0.00%) Pinnacle Bidco Carnival 7.625% 6.375% 15/02/2025 5,300,000 5,213 0.42 01/03/2026 2,597,000 2,459 0.20 Neptune Energy AES Panama Bondco 6.625% Generation 15/05/2025 8,188,000 5,926 0.48 Holdings 4.375% Neptune Energy 31/05/2030 2,000,000 1,583 0.13 Bondco 6.625% 15/05/2025 (Private Placement) 5,400,000 3,908 0.31

Schroder Sterling Corporate Bond Fund Final Report and Accounts 55 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Virgin Money Notting Hill Genesis UK FRN 3.125% 2.875% 31/01/2029 9,106,000 10,083 0.81 22/06/2025 7,103,000 7,374 0.59 Phoenix Group Tesco Personal Holdings 5.867% Finance Group 3.5% 13/06/2029 8,052,000 9,858 0.80 25/07/2025 4,986,000 5,343 0.43 London & Quadrant Stonegate Pub Co. Housing Trust 2.25% Financing 2019 20/07/2029 697,000 755 0.06 8.25% 31/07/2025 5,900,000 5,974 0.48 Just Group 8.125% Stonegate Pub Co. 26/10/2029 7,386,000 8,386 0.68 Financing 2019 Liberty Living 8.25% 31/07/2025 Finance 3.375% (Senior Secured) 1,500,000 1,519 0.12 28/11/2029 6,874,000 7,599 0.61 InterContinental Virgin Media Hotels Group 3.75% Secured Finance 14/08/2025 1,026,000 1,120 0.09 4.25% 15/01/2030 3,650,000 3,746 0.30 Hurricane Finance Pearson Funding 8% 15/10/2025 2,700,000 2,926 0.24 3.75% 04/06/2030 13,534,000 15,565 1.26 Whitbread Group Grainger 3% 3.375% 16/10/2025 11,044,000 11,639 0.94 03/07/2030 7,579,000 8,259 0.67 Phoenix Group Pension Insurance Holdings 6.625% 5.625% 20/09/2030 1,200,000 1,509 0.12 18/12/2025 4,612,000 5,533 0.45 Close Brothers Jerrold Finco 4.875% Finance 1.625% 15/01/2026 7,755,000 7,660 0.62 03/12/2030 4,695,000 4,768 0.38 Virgin Money Virgin Money UK FRN 3.375% UK FRN 5.125% 24/04/2026 7,927,000 8,371 0.68 11/12/2030 4,041,000 4,331 0.35 Informa 3.125% Mitchells & Butlers 05/07/2026 13,425,000 14,265 1.15 Finance 5.574% Next Group 4.375% 15/12/2030 4,085,122 4,614 0.37 02/10/2026 7,452,000 8,495 0.69 Mitchells & Butlers BUPA Finance 5% Finance 6.013% 08/12/2026 1,859,000 2,181 0.18 15/12/2030 3,513,092 3,722 0.30 Intermediate Capital Mitchells & Butlers Group 1.625% Finance FRN 0.667% 17/02/2027 28,024,000 25,254 2.04 15/12/2030 1,988,750 1,303 0.10 Rolls-Royce 5.75% Just Group FRN 7% 15/10/2027 3,123,000 3,451 0.28 15/04/2031 2,000,000 2,185 0.18 Sainsbury's Bank Phoenix Group FRN 6% 23/11/2027 9,063,000 9,321 0.75 Holdings 5.625% London & Quadrant 28/04/2031 6,452,000 7,948 0.64 Housing Trust Pension Insurance 2.625% 28/02/2028 1,476,000 1,632 0.13 4.625% 07/05/2031 3,300,000 3,901 0.31 Quilter FRN 4.478% Phoenix Group 28/02/2028 16,912,000 17,546 1.42 Holdings FRN 4.75% Intu SGS Finance 04/09/2031 12,800,000 10,041 0.81 REIT 3.875% Greene King 17/03/2028 2,767,000 1,577 0.13 Finance, Series A2 Grainger 3.375% 5.318% 15/09/2031 1,022,352 1,164 0.09 24/04/2028 15,793,000 17,554 1.42 Pension Insurance Next Group 3.625% 3.625% 21/10/2032 10,955,000 11,961 0.97 18/05/2028 12,056,000 13,237 1.07 Notting Hill Genesis Metro Bank FRN 3.75% 20/12/2032 2,370,000 2,907 0.23 5.5% 26/06/2028 4,312,000 2,673 0.22 Telereal Investec Bank FRN Securitisation 4.25% 24/07/2028 3,300,000 3,414 0.28 5.553% 10/12/2033 68,037 82 0.01 InterContinental Telereal Hotels Group Securitisation FRN 3.375% 08/10/2028 12,827,000 14,081 1.14 4.09% 10/12/2033 800,000 811 0.06 UNITE Group REIT Greene King 3.5% 15/10/2028 5,539,000 6,167 0.50 Finance FRN 2.541% 15/12/2033 3,900,842 3,742 0.30 Rl Finance Bonds No. 3 6.125% Greene King Finance 13/11/2028 3,084,000 3,894 0.31 5.106% 15/03/2034 8,079,000 9,248 0.75

Schroder Sterling Corporate Bond Fund Final Report and Accounts 56 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Greene King Finance M&G FRN 6.25% 3.593% 15/03/2035 14,488,173 15,097 1.22 20/10/2068 5,006,000 6,578 0.53 BUPA Finance SSE FRN 4.75% 4.125% 14/06/2035 3,882,000 4,493 0.36 16/09/2077 4,999,000 3,794 0.31 Longstone Finance, Barclays Bank FRN Series A 4.791% 5.33% Perpetual 2,360,000 2,366 0.19 19/04/2036 127,899 149 0.01 BP Capital Markets Longstone Finance FRN 4.25% 4.896% 19/04/2036 680,000 823 0.07 Perpetual 11,528,000 12,369 1.00 Morhomes 3.4% HSBC Holdings FRN 19/02/2038 2,500,000 2,922 0.24 6% Perpetual 1,170,000 932 0.07 Manchester Airport HSBC Holdings FRN Group Funding 4.6% Perpetual 14,500,000 10,780 0.87 2.875% 31/03/2039 4,583,000 4,847 0.39 HSBC Holdings FRN 3i Group 3.75% 6.375% Perpetual 7,600,000 5,956 0.48 05/06/2040 5,094,000 5,927 0.48 Investec FRN 6.75% Eversholt Funding Perpetual 4,540,000 4,528 0.37 2.742% 30/06/2040 9,699,000 10,489 0.85 SSE FRN 3.74% Tesco Property Perpetual 9,077,000 9,580 0.77 Finance 4 5.801% 644,303 52.01 13/10/2040 1,033,045 1,419 0.11 Tesco Property United States of America 5.11% (6.34%) Finance 5 5.661% EnLink Midstream 13/10/2041 1,957,330 2,688 0.22 Partners 4.4% Home Group 3.125% 01/04/2024 4,641,000 3,350 0.27 27/03/2043 6,850,000 8,412 0.68 Expedia Group Libra Longhurst 6.25% 01/05/2025 5,500,000 4,664 0.38 Group Treasury No. EnLink Midstream 2 3.25% 15/05/2043 5,251,000 6,588 0.53 Partners 4.15% Manchester Airport 01/06/2025 1,500,000 1,070 0.09 Group Funding PVH 4.625% 2.875% 30/09/2044 6,760,000 7,059 0.57 10/07/2025 7,250,000 5,976 0.48 Yorkshire Housing Townsquare Media Finance 4.125% 6.875% 01/02/2026 836,000 641 0.05 31/10/2044 5,988,000 8,560 0.69 Expedia Group WPP Finance 2013 4.625% 01/08/2027 6,890,000 5,630 0.45 2.875% 14/09/2046 4,728,000 4,944 0.40 Sotheby's 7.375% Notting Hill Genesis 15/10/2027 1,682,000 1,318 0.11 3.25% 12/10/2048 4,040,000 5,035 0.41 EnLink Midstream RL Finance Bonds 5.625% 15/01/2028 885,000 660 0.05 No. 4 FRN 4.875% 07/10/2049 4,467,000 5,209 0.42 Consolidated Communications London & Quadrant 6.5% 01/10/2028 3,850,000 3,014 0.24 Housing Trust 3.75% 27/10/2049 1,480,000 2,112 0.17 United Natural Foods 6.75% Housing & Care 21 15/10/2028 2,896,000 2,217 0.18 3.288% 08/11/2049 14,698,000 18,449 1.49 British Airways Channel Link Pass-Through Trust Enterprises Finance 8.375% 15/11/2028 3,144,000 2,548 0.21 FRN 2.706% 30/06/2050 10,803,000 9,855 0.80 American Campus Communities Channel Link Operating Enterprises Finance Partnership REIT FRN 1.761% 3.875% 30/01/2031 9,920,000 8,216 0.66 30/06/2050 2,563,000 2,283 0.18 British Airways BAT International Pass-Through Trust Finance 2.25% 4.25% 15/05/2034 20,091,000 15,742 1.27 09/09/2052 4,000,000 3,336 0.27 Energy Transfer M&G FRN 5.56% Operating FRN 20/07/2055 2,989,000 3,562 0.29 7.125% Perpetual 9,000,000 6,255 0.51 BAT International Finance 4% 23/11/2055 17,853,000 20,555 1.66 M&G FRN 6.34% 19/12/2063 14,901,000 19,578 1.58

Schroder Sterling Corporate Bond Fund Final Report and Accounts 57 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets

Energy Transfer United States of America 0.34% (0.00%) Operating FRN Wayfair 0.63% 6.75% Perpetual 3,000,000 2,003 0.16 01/10/2025 6,000,000 4,142 0.34 63,304 5.11 4,142 0.34 Corporate Bonds total 1,036,463 83.67 Convertible Bonds total 29,621 2.39 Government Bonds 7.08% (5.53%) Equities 0.74% (1.59%) Mexico 0.14% (0.30%) United States of America 0.74% (1.59%) Mexico Government Energy Transfer Bond 5.625% Operating 19/03/2114 1,480,000 1,680 0.14 Preference FRN 1,680 0.14 7.6% 551,895 9,111 0.74 9,111 0.74 United Kingdom 6.94% (5.23%) UK Treasury 0.625% Equities total 9,111 0.74 31/07/2035 3,901,000 3,962 0.32 Forward Foreign Currency Contracts 0.30% (0.41%) UK Treasury 1.75% 07/09/2037 2,800,000 3,324 0.27 Buy EUR 39,244,533 Sell GBP 35,098,560 27/01/2021 209 0.02 UK Treasury 4.75% 07/12/2038 16,260,000 27,919 2.25 Buy EUR 5,681,818 Sell GBP 5,183,964 27/01/2021 (72) (0.01) UK Treasury 4.25% 07/12/2040 4,009,300 6,723 0.54 Buy USD 22,421,305 Sell GBP 16,723,909 27/01/2021 (300) (0.02) UK Treasury 4.5% 07/12/2042 3,827,000 6,812 0.55 Sell CHF 9,635,569 Buy GBP 7,974,113 27/01/2021 (46) 0.00 UK Treasury 3.25% 22/01/2044 8,787,134 13,532 1.09 Sell EUR 11,287,224 Buy GBP 10,206,398 27/01/2021 52 0.00 UK Treasury 1.5% 22/07/2047 13,891,135 16,453 1.33 Sell EUR 247,246,632 Buy GBP 221,124,541 27/01/2021 (1,318) (0.11) UK Treasury 1.75% 22/01/2049 3,515,000 4,427 0.36 Sell SGD 22,125,359 Buy GBP 12,434,699 27/01/2021 170 0.01 UK Treasury 0.625% 22/10/2050 2,963,958 2,873 0.23 Sell USD 267,935,499 Buy GBP 201,307,913 27/01/2021 5,038 0.41 86,025 6.94 Forward Foreign Currency Contracts Government Bonds total 87,705 7.08 total 3,733 0.30

Convertible Bonds 2.39% (1.94%) Futures (0.01)% ((0.04)%)

Austria 0.80% (0.00%) Euro-Bobl March 2021 (288) (39) 0.00 ams 2.13% 03/11/2027 11,100,000 9,923 0.80 Euro-Bund March 2021 (482) (286) (0.02) 9,923 0.80 Euro-Buxl 30 Year France 0.34% (0.00%) Bond March 2021 (44) (44) (0.01) Accor 0.7% Long Gilt March 07/12/2027 9,126,600 4,227 0.34 2021 269 219 0.02 4,227 0.34 US 5 Year Note March 2021 2 0 0.00 Jersey 0.15% (1.12%) US 10 Year Note Intu Jersey 2 REIT March 2021 62 10 0.00 2.88% 01/11/2022 10,100,000 1,868 0.15 US 10 Year Ultra 1,868 0.15 Bond March 2021 9 2 0.00 US Ultra Bond Luxembourg 0.51% (0.82%) March 2021 (10) 7 0.00 ADLER Group 2% Futures total (131) (0.01) 23/11/2023 7,300,000 6,368 0.51 6,368 0.51 Swaps (0.06)% (0.00%) Credit Default Spain 0.25% (0.00%) Swap Barclays International Buy Wendel Consolidated 3.75% 21/01/2021 Airlines Group 20/06/2023 5,000,000 (530) (0.04) 0.63% 17/11/2022 3,800,000 3,093 0.25 3,093 0.25

Schroder Sterling Corporate Bond Fund Final Report and Accounts 58 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Credit Default Credit Default Swap BNP Paribas Swap Goldman Buy Rexel 2.125% Sachs Sell Casino 15/06/2025 Guichard Perrachon 20/12/2023 7,200,000 (840) (0.07) 1.865% 13/06/2022 Credit Default 20/12/2022 2,000,000 (20) 0.00 Swap Goldman Credit Default Sachs Buy Rexel Swap Merrill 2.125% 15/06/2025 Lynch Sell Wendel 20/12/2023 5,000,000 (583) (0.05) 3.75% 21/01/2021 Credit Default 20/06/2024 5,000,000 713 0.06 Swap Merrill Credit Default Lynch Buy Rexel Swap Citigroup 2.125% 15/06/2025 Sell British Tele- 20/12/2023 15,000,000 (1,749) (0.14) communications Credit Default Swap 5.75% 07/12/2028 Citigroup Buy Rexel 20/06/2024 5,000,000 71 0.01 2.125% 15/06/2025 Credit Default 20/06/2024 3,000,000 (389) (0.03) Swap Barclays Credit Default Sell British Tele- Swap Merrill communications Lynch Buy Rexel 5.75% 07/12/2028 2.125% 15/06/2025 20/12/2024 1,480,823 20 0.00 20/06/2024 1,000,000 (130) (0.01) Credit Default Swap Credit Default Swap Goldman Sachs Barclays Buy United Sell British Tele- Mexican States communications 4.15% 28/03/2027 5.75% 07/12/2028 20/06/2025 4,000,000 (39) 0.00 20/12/2024 909,091 12 0.00 Credit Default Swap Credit Default Morgan Stanley Buy Swap J.P. Morgan ITRAXX.EUROPE. Sell British Tele- CROSSOVER.34-V1 communications 20/12/2025 3,275,000 (352) (0.03) 5.75% 07/12/2028 20/12/2024 11,519,177 157 0.01 Credit Default Swap Citigroup Credit Default Swap Sell Iberdrola Barclays Sell Intrum 2.875% 11/11/2020 3.125% 15/07/2024 20/06/2021 484,147 2 0.00 20/06/2025 5,000,000 298 0.03 Credit Default Swap Credit Default Swap BNP Paribas Sell Barclays Sell AT&T Casino Guichard 3.8% 15/02/2027 Perrachon 1.865% 20/06/2025 4,000,000 42 0.00 13/06/2022 Credit Default Swap 20/06/2022 4,800,000 1 0.00 Barclays Sell Verizon Credit Default Swap Communications Credit Suisse Sell 4.125% 16/03/2027 Casino Guichard 20/06/2025 8,000,000 146 0.01 Perrachon 1.865% Credit Default 13/06/2022 Swap BNP Paribas 20/06/2022 3,500,000 0 0.00 Sell Verizon Credit Default Swap Communications J.P. Morgan Sell 4.125% 16/03/2027 Casino Guichard 20/06/2025 8,000,000 146 0.01 Perrachon 1.865% Credit Default 13/06/2022 Swap Credit 20/06/2022 3,000,000 0 0.00 Suisse Sell Verizon Credit Default Communications Swap J.P. Morgan 4.125% 16/03/2027 Sell Next 5.375% 20/06/2025 5,000,000 91 0.01 26/10/2021 Credit Default 20/06/2022 3,000,000 19 0.00 Swap Credit Suisse Credit Default Swap Sell British Tele- Barclays Sell Casino communications Guichard Perrachon 5.75% 07/12/2028 1.865% 13/06/2022 20/06/2025 3,000,000 34 0.00 20/12/2022 4,000,000 (40) 0.00

Schroder Sterling Corporate Bond Fund Final Report and Accounts 59 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net 31.12.20 £000’s assets Credit Default Swap J.P. Morgan Sell British Tele- communications 5.75% 07/12/2028 20/06/2025 4,800,000 55 0.00 Credit Default Swap Barclays Sell Anglo American Capital 4.125% 15/04/2021 20/12/2025 11,000,000 2,004 0.16 Credit Default Swap J.P. Morgan Sell Tesco 6.125% 24/02/2022 20/12/2025 12,000,000 152 0.01 Swaps total a (709) (0.06)

Portfolio of investments 1,165,793 94.11 Net other assets 72,948 5.89 Net assets attributable to shareholders 1,238,741 100.00

The comparative percentage figures in brackets are as at 31 December 2019. Unless otherwise stated, all securities are admitted to official stock exchange listings.

Schroder Sterling Corporate Bond Fund Final Report and Accounts 60 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital gains 2 – 108,753 – 32,358 Revenue 3 35,344 – 13,998 – Expenses 4 (5,216) – (2,315) – Net revenue before taxation 30,128 – 11,683 – Taxation 5 (175) – – – Net revenue after taxation 29,953 11,683 Total return before distributions 138,706 44,041 Distributions 6 (35,152) (13,994) Change in net assets attributable to shareholders from investment activities 103,554 30,047

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020

2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 500,754 261,329 Amounts receivable on issue of shares 796,656 – 234,151 – Amounts payable on cancellation of shares (177,994) – (33,003) – 618,662 201,148 Dilution adjustment 1,930 293 Change in net assets attributable to shareholders from investment activities 103,554 30,047 Retained distribution on Accumulation shares 13,837 7,931 Unclaimed distributions 4 6 Closing net assets attributable to shareholders 1,238,741 500,754

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 1,172,570 467,101 Current assets Debtors 8 18,720 16,397 Cash and bank balances 9 66,704 22,844 Total assets 1,257,994 506,342 – – Liabilities – – Investment liabilities (6,777) (2,426) Creditors Bank overdrafts 10 (3,556) (732) Distributions payable (7,478) (2,038) Other creditors 11 (1,442) (392) Total liabilities (19,253) (5,588) – – Net assets attributable to shareholders 1,238,741 500,754

Schroder Sterling Corporate Bond Fund Final Report and Accounts 61 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder Sterling Corporate Bond Fund are disclosed on pages 9 to 10. 2 Net capital gains The net capital gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities 97,328 27,342 Derivative contracts 8,790 (247) Forward foreign currency contracts 2,904 5,875 Foreign currency losses (252) (584) Transaction costs (17) (28) Net capital gains 108,753 32,358

3 Revenue

2020 2019 £000's £000's Overseas dividends 772 143 Interest on debt securities 32,496 13,002 Bank interest 19 29 Net revenue return from derivative contracts 2,057 824 Total revenue 35,344 13,998

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 4,067 1,907 Administration charge 862 349 4,929 2,256 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 74 34 Safe custody fees 28 12 102 46 Other expenses:

Audit fee 12 9 Other expenses 157 – Interest payable 16 4 185 13 Total expenses 5,216 2,315

Schroder Sterling Corporate Bond Fund Final Report and Accounts 62 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses and interest distributions payable by the Fund exceed the revenue liable to corporation tax.

(a) Analysis of the tax charge for the year 2020 2019 £000's £000's Overseas withholding tax 175 – Total current tax (Note 5(b)) 175 –

2020 2019 £000’s £000’s Net revenue before taxation 30,128 11,683

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 6,026 2,337 Effects of:

Revenue not subject to corporation tax (155) (29) Interest distributions deductible for tax purposes (5,871) (2,308) Irrecoverable overseas withholding tax 175 – Current tax charge for the year (Note 5(a)) 175 –

6 Distributions The distributions, which is on an effective yield, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Quarterly Interest distribution 6,530 2,742 Interim Interest distribution 8,995 3,379 Quarterly Interest distribution 10,250 4,123 Final Interest distribution 12,090 4,829 37,865 15,073 Add: Revenue deducted on cancellation of shares 1,076 174 Deduct: Revenue received on issue of shares (3,789) (1,253) Distributions 35,152 13,994

Net revenue after taxation 29,953 11,683 Expenses taken to capital 5,200 2,311 Movement in undistributed revenue (1) – Distributions 35,152 13,994

Details of the distributions per share are set out in the Distribution Table on pages 71 to 74.

Schroder Sterling Corporate Bond Fund Final Report and Accounts 63 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 95,155 (369) 35,897 (445) Level 2: Observable market data 1,077,415 (6,408) 431,204 (1,981) Level 3: Unobservable data – – – – Total 1,172,570 (6,777) 467,101 (2,426)

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 6,805 11,743 Sales awaiting settlement – 34 Amounts receivable on derivative contracts 63 25 Accrued revenue 11,852 4,595 Total debtors 18,720 16,397

9 Cash and bank balances

2020 2019 £000's £000's Cash and bank balances 57,654 19,460 Amounts held at futures clearing houses and brokers 9,050 3,384 Total cash and bank balances 66,704 22,844

10 Bank overdrafts

2020 2019 £000's £000's Amounts overdrawn at futures clearing houses and brokers 3,556 732 Total bank overdrafts 3,556 732

Schroder Sterling Corporate Bond Fund Final Report and Accounts 64 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

11 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 242 102 Purchases awaiting settlement 607 – Amounts payable on derivative contracts – 8 Accrued expenses 593 282 Total other creditors 1,442 392

12 Contingent liabilities There were no contingent liabilities at the balance sheet date (2019 – Nil). 13 Related party transactions The Authorised Corporate Director exercises control over the Fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the year or due to the Authorised Corporate Director at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies received through the issue and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and Distributions in the Notes to the Accounts. Amounts due from or to the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Debtors and Other creditors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 23.68% (2019 – 14.13%). 14 Share classes The Fund currently has ten share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

A Accumulation shares 1.00% A Income shares 1.00% C Accumulation shares 0.50% (0.75% to 1 April 2020) C Income shares 0.50% (0.75% to 1 April 2020) Q Accumulation shares 0.42% Q Income shares 0.42% S Accumulation shares 0.30% S Income shares 0.30% Z Accumulation shares 0.50% Z Income shares 0.50%

The closing net asset value of each share classes, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 49 to 53. The distributions per share class are given in the Distribution Table on pages 71 to 74. All classes have the same rights on winding up.

15 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, derivative, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Derivative risk Where a Fund trades in derivatives to achieve its investment objective, this involves a higher degree of risk and may lead to a higher volatility in the share prices of the Fund. The Authorised Corporate Director employs a risk management process to allow the Authorised Corporate Director to measure derivative and forward positions and their contribution to the overall risk profile of the Fund. As part of this risk management process the Authorised Corporate Director conducts daily value at risk analysis of the Fund and performs both stress and back testing of the Fund.

Schroder Sterling Corporate Bond Fund Final Report and Accounts 65 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Revenue received in other currencies is translated to sterling on or near the date of receipt. The Fund does not hedge or otherwise seek to avoid currency movement risk on accrued revenue.

Credit risk Certain transactions in securities that the Fund enters into expose it to the risk that the counterparty will not deliver the investment for a purchase, or cash for a sale after the Fund has fulfilled its responsibilities. The Fund only buys and sells investments through brokers which have been approved by the Authorised Corporate Director as an acceptable counterparty. In addition, limits are set to the exposure to any individual broker that may exist at any time and changes in brokers’ financial ratings are reviewed.

Interest rate risk Interest rate risk is the risk that the value of the Fund’s investment holdings will fluctuate as a result of changes in interest rates. The Fund may invest in fixed and floating rate securities. The revenue of the Fund may be affected by changes to interest rates relevant to particular securities or as a result of the Authorised Corporate Director being unable to secure similar returns on the expiry of contracts or sale of securities. The value of interest bearing securities may be affected by interest rate movements or the expectation of such movements in the future. Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates.

Floating rate financial assets and financial liabilities Sterling denominated bank balances and bank overdrafts bear interest at rates based on the Sterling Overnight Index Average Rate. Sterling denominated floating rate bonds and foreign currency bank balances and amounts held or overdrawn at futures clearing houses and brokers bear interest at rates based on the London Interbank Offer Rate or its international equivalent. Euro denominated floating rate notes/ bonds bear interest at rates based on Euro Interbank Offer Rate. US dollar denominated ﬂoating rate notes/bonds bear interest at rates based on the US London Interbank Offer Rate.

Derivatives During the year the Fund entered into derivative contracts for specific investment purposes in addition to being used for efficient management.

Global risk exposure Relative VaR approach This approach is used for the Funds whose risk can be managed in relation to a defined benchmark.

Regulatory VaR limit utilisation

2020 2019 Lowest Highest Average Lowest Highest Average 39.95% 70.00% 60.79% 40.75% 51.15% 44.63%

Information on VaR model

2020 2019

Length Length of data Confidence Holding of data Confidence Holding Model type history level period history level period

All available Parametric VaR history 99.00% 20 days – – –

All available Monte Carlo Simulation – – – history 99.00% 20 days

Leverage Information on the limit usage and level of leverage The level of leverage is an indication of the derivative usage and of any leverage generated by the reinvestment of cash received as collateral when using efficient portfolio management techniques. It does not take into account other physical assets directly held in the portfolio of the Fund. The figure is not representative of the maximum amount that a Fund could lose, as it includes the derivatives used to protect the Net Asset Value of a Fund as well as the derivatives backed by risk free assets and derivatives which do not generate any incremental exposure, leverage or market risk from an economic perspective. The reported leverage figure is therefore not a true representation of the economic leverage1 in the Fund. The level of leverage disclosed is based on the total notional value2 of all derivative instruments held by a Fund and is expressed as a percentage of the Fund’s Net Asset Value. For the purpose of this calculation the holdings and offset derivative positions (long and short positions) do not cancel each other out and the figure is a sum of the total holdings.

Schroder Sterling Corporate Bond Fund Final Report and Accounts 66 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 47.13% 187.00% 78.75% 61.60% 55.70% 125.00% 71.81% 63.70%

1 Where economic leverage is the sum of derivative commitments (calculated in line with European Securities and Markets Authority 10/788) and excludes derivatives used within hedging arrangements, derivatives whose commitments is covered by risk free assets and derivatives which are not considered to generate any incremental exposure and leverage or market risk. 2 Delta adjusted in line with European Securities and Markets Authority 10/788 when appropriate. 16 Debt security credit analysis 2020 2019 £000’s £000’s

Investment grade securities 853,739 367,205 Below investment grade securities 245,873 57,374 Unrated securities 54,177 30,318 Total debt securities 1,153,789 454,897

The Fund invests in credit default swaps to adjust the credit risk profile of the Fund. The notional exposure of these swaps has been included in above table. 17 Direct transaction costs The transaction costs on the purchase or sale of investments incurred by the Fund during 2020 were immaterial. The total purchases for the year amounted to £1,754,679,653 (2019 – £474,492,929) and the total sales amounted to £1,153,644,037 (2019 – £293,873,437).

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 1.16% (2019 – 0.85%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 18 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 A Accumulation shares 40,089,248 11,394,972 (7,320,951) (17,291) 44,145,978 A Income shares 21,761,121 6,823,420 (6,157,500) (75,563) 22,351,478 C Accumulation shares 4,393,785 307,967 (435,767) 7,619 4,273,604 C Income shares 14,004,369 253,867 (1,191,956) (75,376) 12,990,904 Q Accumulation shares – 2,000 – – 2,000 Q Income shares 2,000 154,145,276 (3,845,406) 984,061 151,285,931 S Accumulation shares 5,370,496 2,049,601 (1,051,261) (82,127) 6,286,709 S Income shares 97,856,020 454,128,471 (8,436,256) 227,661 543,775,896 Z Accumulation shares 141,380,409 120,066,493 (48,680,559) (194,474) 212,571,869 Z Income shares 102,439,968 175,682,057 (57,563,072) (34,181) 220,524,772

Schroder Sterling Corporate Bond Fund Final Report and Accounts 67 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

19 Counterparty exposure The type of derivative held at the balance sheet were forward foreign currency contracts. Details of individual contracts are disclosed in the Portfolio Statement and the total position by counterparty at the balance sheet date was as follows:

Forward foreign Credit Contract Interest Total Inflation currency default for rate return linked Options Swaption contracts swaps difference swaps swaps swaps contracts contracts Total Counterparty £000's £000's £000's £000's £000's £000's £000's £000's £000's ANZ 2020 – – – – – – – – – 2019 26 – – – – – – – 26 Bank of America 2020 104 (1,167) – – – – – – (1,063) 2019 753 692 – – – – – – 1,445 Barclays 2020 3,820 1,902 – – – – – – 5,722 2019 – (688) – – – – – – (688) BNP Paribas 2020 (1,128) (693) – – – – – – (1,821) 2019 (63) (74) – – – – – – (137) Canadian Imperial Bank of Commerce 2020 – – – – – – – – – 2019 13 – – – – – – – 13 Citigroup 2020 6 (316) – – – – – – (310) 2019 44 (400) – – – – – – (356) Credit Suisse 2020 – 126 – – – – – – 126 2019 – – – – – – – – – Deutsche Bank 2020 405 – – – – – – – 405 2019 – – – – – – – – – Goldman Sachs 2020 21 (591) – – – – – – (570) 2019 – (35) – – – – – – (35) HSBC 2020 134 – – – – – – – 134 2019 (17) – – – – – – – (17) J.P. Morgan 2020 46 382 – – – – – – 428 2019 – 86 – – – – – – 86 Lloyds Bank 2020 (68) – – – – – – – (68) 2019 – – – – – – – – – Morgan Stanley 2020 195 (352) – – – – – – (157) 2019 – – – 177 – 236 – – 413 RBC 2020 (20) – – – – – – – (20) 2019 (12) – – – – – – – (12) Standard Chartered 2020 – – – – – – – – – 2019 32 – – – – – – – 32

Schroder Sterling Corporate Bond Fund Final Report and Accounts 68 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

The collateral held/(pledged by the Fund on behalf of the counterparties at the balance sheet date was as follows:

2020 2019 Counterparty £000’s £000’s

Bank of America (1,280) – Barclays 3,740 (700) BNP Paribas (3,750) (280) Citigroup (360) (410) Goldman Sachs (810) – JPMorgan Chase 290 – Morgan Stanley (509) (50) Total (2,679) (1,440)

The nature of collateral held/(pledged) by the Fund on behalf of the counterparties at the balance sheet date was as follows:

2020 2019 £000’s £000’s

Cash (2,679) (1,440) Total (2,679) (1,440)

20 Non-adjusting post balance sheet events As a result of market movements and foreign exchange rates, since the balance sheet date on 31 December 2020, the price of each share class has changed as follows:

Dealing price Dealing price 23.4.21 31.12.20 % change A Accumulation shares 95.08p 94.94p 0.15 A Income shares 71.25p 72.52p (1.75) C Accumulation shares 184.10p 183.50p 0.33 C Income shares 71.34p 72.50p (1.60) Q Accumulation shares 58.92p 58.69p 0.39 Q Income shares 55.28p 56.15p (1.55) S Accumulation shares 197.70p 197.00p 0.36 S Income shares 63.85p 64.85p (1.54) Z Accumulation shares 196.40p 195.80p 0.31 Z Income shares 139.40p 141.70p (1.62)

Schroder Sterling Corporate Bond Fund Final Report and Accounts 69 31 December 2020 Securities Financing Transactions

The Fund has not engaged in Securities Financing Transactions (as defined in Article 3 of Regulation (EU) 2015/2365, these include repurchase transactions, securities or commodities lending and securities or commodities borrowing, buy-sell back transactions or sell-buy back transactions, margin lending transactions and Total Return Swaps). Accordingly, disclosures required by Article 13 of the Regulation are not applicable for the accounting year ended 31 December 2020.

Schroder Sterling Corporate Bond Fund Final Report and Accounts 70 31 December 2020 Distribution Table

Quarterly distribution for the three months ended 31 March 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.5.20 31.5.19 per share per share per share per share A Accumulation shares Group 1 0.7656p – 0.7656p 0.6999p Group 2 0.2993p 0.4663p 0.7656p 0.6999p A Income shares Group 1 0.6022p – 0.6022p 0.5727p Group 2 0.3254p 0.2768p 0.6022p 0.5727p C Accumulation shares Group 1 1.4737p – 1.4737p 1.3440p Group 2 0.6062p 0.8675p 1.4737p 1.3440p C Income shares Group 1 0.5996p – 0.5996p 0.5688p Group 2 0.4190p 0.1806p 0.5996p 0.5688p Q Income shares Group 1 0.4627p – 0.4627p – Group 2 0.2755p 0.1872p 0.4627p – S Accumulation shares Group 1 1.5790p – 1.5790p 1.4334p Group 2 0.7937p 0.7853p 1.5790p 1.4334p S Income shares Group 1 0.5352p – 0.5352p 0.5057p Group 2 0.3380p 0.1972p 0.5352p 0.5057p Z Accumulation shares Group 1 1.5722p – 1.5722p 1.4301p Group 2 0.6195p 0.9527p 1.5722p 1.4301p Z Income shares Group 1 1.1716p – 1.1716p 1.1083p Group 2 0.1841p 0.9875p 1.1716p 1.1083p

Interim distribution for the three months ended 30 June 2020 Group 1 Shares purchased prior to 1 April 2020 Group 2 Shares purchased on or after 1 April 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.8.20 31.8.19 per share per share per share per share A Accumulation shares Group 1 0.8117p – 0.8117p 0.7995p Group 2 0.4282p 0.3835p 0.8117p 0.7995p A Income shares Group 1 0.6320p – 0.6320p 0.6475p Group 2 0.3273p 0.3047p 0.6320p 0.6475p

Schroder Sterling Corporate Bond Fund Final Report and Accounts 71 31 December 2020 Distribution Table (continued)

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.8.20 31.8.19 per share per share per share per share C Accumulation shares Group 1 1.5640p – 1.5640p 1.5352p Group 2 0.8841p 0.6799p 1.5640p 1.5352p C Income shares Group 1 0.6299p – 0.6299p 0.6443p Group 2 0.2119p 0.4180p 0.6299p 0.6443p Q Income shares Group 1 0.4873p – 0.4873p – Group 2 0.1413p 0.3460p 0.4873p – S Accumulation shares Group 1 1.6771p – 1.6771p 1.6412p Group 2 0.0899p 1.5872p 1.6771p 1.6412p S Income shares Group 1 0.5628p – 0.5628p 0.5733p Group 2 0.1466p 0.4162p 0.5628p 0.5733p Z Accumulation shares Group 1 1.6690p – 1.6690p 1.6257p Group 2 0.8952p 0.7738p 1.6690p 1.6257p Z Income shares Group 1 1.2313p – 1.2313p 1.2522p Group 2 0.9502p 0.2811p 1.2313p 1.2522p

Interim distribution for the three months ended 30 June 2020 Group 1 Shares purchased on 1 April 2020 Group 2 Shares purchased after 1 April 2020

Net Distribution revenue Equalisation paid 2020 2020 31.8.20 per share per share per share Q Accumulation shares Group 1 0.2475p – 0.2475p Group 2 0.2475p – 0.2475p

Quarterly distribution for the three months ended 30 September 2020 Group 1 Shares purchased prior to 1 July 2020 Group 2 Shares purchased on or after 1 July 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 30.11.20 30.11.19 per share per share per share per share A Accumulation shares Group 1 0.8466p – 0.8466p 0.8687p Group 2 0.3688p 0.4778p 0.8466p 0.8687p A Income shares Group 1 0.6531p – 0.6531p 0.6974p Group 2 0.2741p 0.3790p 0.6531p 0.6974p

Schroder Sterling Corporate Bond Fund Final Report and Accounts 72 31 December 2020 Distribution Table (continued)

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 30.11.20 30.11.19 per share per share per share per share C Accumulation shares Group 1 1.6334p – 1.6334p 1.6701p Group 2 1.4736p 0.1598p 1.6334p 1.6701p C Income shares Group 1 0.6517p – 0.6517p 0.6935p Group 2 0.3321p 0.3196p 0.6517p 0.6935p Q Accumulation shares Group 1 0.5165p – 0.5165p – Group 2 0.5165p – 0.5165p – Q Income shares Group 1 0.5043p – 0.5043p – Group 2 0.3192p 0.1851p 0.5043p – S Accumulation shares Group 1 1.7524p – 1.7524p 1.7855p Group 2 1.4066p 0.3458p 1.7524p 1.7855p S Income shares Group 1 0.5825p – 0.5825p 0.6176p Group 2 0.3709p 0.2116p 0.5825p 0.6176p Z Accumulation shares Group 1 1.7431p – 1.7431p 1.7796p Group 2 0.8528p 0.8903p 1.7431p 1.7796p Z Income shares Group 1 1.2737p – 1.2737p 1.3534p Group 2 0.7622p 0.5115p 1.2737p 1.3534p

Final distribution for the three months ended 31 December 2020 Group 1 Shares purchased prior to 1 October 2020 Group 2 Shares purchased on or after 1 October 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Accumulation shares Group 1 0.9159p – 0.9159p 0.7983p Group 2 0.3439p 0.5720p 0.9159p 0.7983p A Income shares Group 1 0.6996p – 0.6996p 0.6339p Group 2 0.3372p 0.3624p 0.6996p 0.6339p C Accumulation shares Group 1 1.7690p – 1.7690p 1.5357p Group 2 0.8689p 0.9001p 1.7690p 1.5357p C Income shares Group 1 0.6990p – 0.6990p 0.6308p Group 2 0.3525p 0.3465p 0.6990p 0.6308p Q Accumulation shares Group 1 0.5660p – 0.5660p – Group 2 0.5660p – 0.5660p –

Schroder Sterling Corporate Bond Fund Final Report and Accounts 73 31 December 2020 Distribution Table (continued)

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share Q Income shares Group 1 0.5412p – 0.5412p – Group 2 0.2525p 0.2887p 0.5412p – S Accumulation shares Group 1 1.8988p – 1.8988p 1.6435p Group 2 1.0799p 0.8189p 1.8988p 1.6435p S Income shares Group 1 0.6250p – 0.6250p 0.5624p Group 2 0.3217p 0.3033p 0.6250p 0.5624p Z Accumulation shares Group 1 1.8878p – 1.8878p 1.6372p Group 2 0.8812p 1.0066p 1.8878p 1.6372p Z Income shares Group 1 1.3663p – 1.3663p 1.2318p Group 2 0.7143p 0.6520p 1.3663p 1.2318p

Schroder Sterling Corporate Bond Fund Final Report and Accounts 74 31 December 2020 Schroder European Recovery Fund Fund Information

Investment objective and policy The Schroder European Recovery Fund (the ‘Fund’) aims to provide capital growth by investing in equity and equity related securities of European companies, excluding the UK. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of European companies, excluding the UK. The Fund applies a disciplined value investment approach, seeking to invest in a select portfolio of companies that the Investment Manager believes are significantly undervalued relative to their long-term earnings potential. The Fund may also invest directly or indirectly in other securities (including in other asset classes), countries (including the UK), 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 reducing risk or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). Fund characteristics The Fund does not have a target benchmark. The Fund’s performance should be compared against the FTSE World Series Europe ex UK (Gross Total Return) index and the Investment Association Europe ex UK sector average return. The comparator benchmarks have been selected because the Investment Adviser and the ACD believe that these benchmarks are suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder European Recovery Fund Final Report and Accounts 75 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of A Accumulation Co-Fund Manager: 1 shares on a dealing price basis fell 7.55%. In comparison, the FTSE World Andrew Lyddon European ex UK Index generated a total return of 8.62%2 in sterling terms and the Investment Association Europe ex UK sector average generated a total return of 10.46%2. The Fund uses the Schroders Value Team’s bottom-up, deep-value approach to identify recovery stocks. The approach seeks to take advantage of investors’ low tolerance for short-term bad news and a tendency to extrapolate current trends when forming future expectations. It enables us to identify companies that have become significantly undervalued relative to their long-term earnings potential. The Fund underperformed the index during the period, which was dominated by the Co-manager of European Income, European Recovery and Covid-19 outbreak and subsequent measures to contain it. We initially expected pandemic- Global Recovery strategies, with 15 years’ investment related concerns would lead to volatile markets with many businesses breaching covenants, requiring more equity or simply going bust. We reassessed our holdings and drew comfort experience that those in the mining, oil and gas and banking sector, were entering this crisis with far Past Specialist Value UK equities fund manager stronger balance sheets and far more conservative capital structures than at the peak of UK equity analyst responsible for Telecommunications and previous cycles. Support Services Thus far, balance sheet risk does not seem to have entered the equation but we do not believe this will last. Given the scale of the economic threat that is now unfolding, we would Joined Schroders in October 2005 as an Equity Analyst with anticipate a lot of businesses will leave their equity investors vulnerable as a consequence the Pan European Industrials desk of overly aggressive capital structures and excess leverage. CFA Charterholder While 2020 has been a poor year for value overall, the potential for a swift rotation in stocks MSc in Intellectual Property Law, Queen Mary College markets was visible in November, as news of successful Covid-19 vaccines saw a sharp boost for value stocks. That rotation reminds us that just as stocks that are “priced for Degree in Chemistry, Bath University perfection” eventually disappoint, so cheap stocks – those trading at a discount to their underlying intrinsic value - are unlikely to stay cheap forever. Co-Fund Manager: Turning to specific stocks, the main individual detractors were oil services business Drilling Andrew Evans Co. of 1972 and banks UniCredit and ABN AMRO Bank. A new position is Bayer. Its shares have come under pressure, largely due to litigation issues related to weedkiller Round- Up. However, the underlying business is extremely cash generative. We see Bayer as an attractive recovery opportunity in the medium term.

Co-Fund Manager of Schroder ISF European Value and Schroder ISF European Equity Yield Joined Schroders’ Global Value Team in June 2015 Investment career commenced in 2001 Worked at Threadneedle in UK research and Dresdner Kleinwort as an analyst for the Pan European transport sector CFA Charterholder Degree in Economics, Exeter University

1 FTSE International Limited (“FTSE”) © FTSE. “FTSE®” is a trade mark of London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. 2 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 European Recovery Fund Final Report and Accounts 76 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

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. The risk and reward indicator changed from 5 to 6 with effect from 10 July 2020. 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 European Recovery Fund Final Report and Accounts 77 31 December 2020 Comparative Table

Opening net asset value 771.08 675.91 776.77 838.05 730.95 835.79 Return before operating charges* (51.79) 107.71 (88.11) (55.62) 116.72 (95.15) Operating charges (10.74) (12.54) (12.75) (7.03) (9.62) (9.69) Return after operating charges* (62.53) 95.17 (100.86) (62.65) 107.10 (104.84)

Distributions1 (3.18) (19.59) (16.75) (8.14) (26.07) (22.14) Retained distributions1 3.18 19.59 16.75 8.14 26.07 22.14 Closing net asset value 708.55 771.08 675.91 775.40 838.05 730.95

*after direct transaction costs of (0.57) (0.22) (1.05) (0.62) (0.24) (1.13) – – – – – – Performance

Return after charges (%) (8.11) 14.08 (12.98) (7.48) 14.65 (12.54) – – – – – – Other information

Closing net asset value (£000's) 67,024 81,719 110,627 12,790 15,562 17,433 Closing number of shares 9,459,367 10,597,964 16,367,042 1,649,457 1,856,924 2,385,074 Operating charges (%) 1.70 1.71 1.69 0.95 1.21 1.19 Direct transaction costs (%)** 0.09 0.03 0.14 0.09 0.03 0.14 – – – – – – Prices

Highest dealing price 783.97p 788.90p 810.30p 852.17p 855.60p 872.20p Lowest dealing price 469.22p 673.40p 668.30p 510.52p 728.20p 722.70p

Schroder European Recovery Fund Final Report and Accounts 78 31 December 2020 Comparative Table (continued)

C Income shares L Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 731.43 658.49 776.46 76.68 66.66 75.98 Return before operating charges* (48.30) 105.15 (88.41) (5.08) 10.66 (8.68) Operating charges (6.21) (8.69) (8.99) (0.55) (0.64) (0.64) Return after operating charges* (54.51) 96.46 (97.40) (5.63) 10.02 (9.32)

Distributions1 (7.04) (23.52) (20.57) (0.83) (2.62) (2.25) Retained distributions1 – – – 0.83 2.62 2.25 Closing net asset value 669.88 731.43 658.49 71.05 76.68 66.66

*after direct transaction costs of (0.54) (0.22) (1.05) (0.06) (0.02) (0.10) – – – – – – Performance

Return after charges (%) (7.45) 14.65 (12.54) (7.34) 15.03 (12.27) – – – – – – Other information

Closing net asset value (£000's) 129 290 263 22,893 26,607 30,528 Closing number of shares 19,311 39,587 40,034 32,222,362 34,698,716 45,794,593 Operating charges (%) 0.95 1.21 1.19 0.87 0.88 0.87 Direct transaction costs (%)** 0.09 0.03 0.14 0.09 0.03 0.14 – – – – – – Prices

Highest dealing price 743.93p 770.80p 810.30p 77.98p 78.18p 79.31p Lowest dealing price 445.67p 657.20p 671.40p 46.74p 66.42p 65.91p

Schroder European Recovery Fund Final Report and Accounts 79 31 December 2020 Comparative Table (continued)

L Income shares S Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 66.86 60.18 70.99 848.87 735.76 836.02 Return before operating charges* (4.42) 9.63 (8.10) (56.01) 117.80 (95.63) Operating charges (0.48) (0.58) (0.61) (4.04) (4.69) (4.63) Return after operating charges* (4.90) 9.05 (8.71) (60.05) 113.11 (100.26)

Distributions1 (0.74) (2.37) (2.10) (11.21) (31.37) (27.29) Retained distributions1 – – – 11.21 31.37 27.29 Closing net asset value 61.22 66.86 60.18 788.82 848.87 735.76

*after direct transaction costs of (0.05) (0.02) (0.10) (0.63) (0.24) (1.13) – – – – – – Performance

Return after charges (%) (7.33) 15.04 (12.27) (7.07) 15.37 (11.99) – – – – – – Other information

Closing net asset value (£000's) 887 986 980 4,818 31,365 34,763 Closing number of shares 1,448,542 1,474,060 1,628,292 610,794 3,694,959 4,724,769 Operating charges (%) 0.87 0.88 0.87 0.57 0.58 0.57 Direct transaction costs (%)** 0.09 0.03 0.14 0.09 0.03 0.14 – – – – – – Prices

Highest dealing price 68.01p 70.58p 74.10p 863.30p 864.40p 872.80p Lowest dealing price 40.77p 60.06p 61.58p 517.78p 733.10p 727.40p

Schroder European Recovery Fund Final Report and Accounts 80 31 December 2020 Comparative Table (continued)

S Income shares Z Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 62.82 56.53 66.71 886.44 771.22 879.62 Return before operating charges* (4.12) 9.05 (7.63) (58.78) 123.28 (100.32) Operating charges (0.30) (0.36) (0.37) (6.97) (8.06) (8.08) Return after operating charges* (4.42) 8.69 (8.00) (65.75) 115.22 (108.40)

Distributions1 (0.82) (2.40) (2.18) (9.03) (29.68) (25.46) Retained distributions1 – – – 9.03 29.68 25.46 Closing net asset value 57.58 62.82 56.53 820.69 886.44 771.22

*after direct transaction costs of (0.05) (0.02) (0.09) (0.66) (0.25) (1.19) – – – – – – Performance

Return after charges (%) (7.04) 15.37 (11.99) (7.42) 14.94 (12.32) – – – – – – Other information

Closing net asset value (£000's) 3,147 12,217 13,879 95,263 103,956 107,322 Closing number of shares 5,464,679 19,449,104 24,550,064 11,607,583 11,727,357 13,915,912 Operating charges (%) 0.57 0.58 0.57 0.95 0.96 0.94 Direct transaction costs (%)** 0.09 0.03 0.14 0.09 0.03 0.14 – – – – – – Prices

Highest dealing price 63.91p 66.41p 69.65p 901.43p 904.10p 918.10p Lowest dealing price 38.33p 56.42p 58.04p 540.28p 768.40p 762.50p

Schroder European Recovery Fund Final Report and Accounts 81 31 December 2020 Comparative Table (continued)

Z Income shares 2020 2019 2018 Financial year to 31 December p per share p per share p per share Change in net asset value

Opening net asset value 714.48 643.16 758.61 Return before operating charges* (47.14) 102.82 (86.45) Operating charges (5.63) (6.73) (7.06) Return after operating charges* (52.77) 96.09 (93.51)

Distributions1 (6.90) (24.77) (21.94) Retained distributions – – – Closing net asset value 654.81 714.48 643.16

*after direct transaction costs of (0.53) (0.21) (1.03) – – – Performance

Return after charges (%) (7.39) 14.94 (12.33) – – – Other information

Closing net asset value (£000's) 3,577 6,064 6,349 Closing number of shares 546,270 848,748 987,036 Operating charges (%) 0.95 0.96 0.94 Direct transaction costs (%)** 0.09 0.03 0.14 – – – Prices

Highest dealing price 726.82p 753.90p 791.80p Lowest dealing price 435.62p 641.90p 657.50p

Schroder European Recovery Fund Final Report and Accounts 82 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets

Equities 96.03% (98.49%) UniCredit 914,836 6,262 2.97 Australia 4.00% (3.32%) 19,332 9.18

South32 6,029,551 8,412 4.00 Luxembourg 2.66% (2.43%) 8,412 4.00 RTL Group 157,904 5,611 2.66 Belgium 4.24% (9.28%) 5,611 2.66

Ageas 141,431 5,517 2.62 Netherlands 7.59% (9.55%) EVS Broadcast ABN AMRO Bank 530,173 3,806 1.81 Equipment 228,695 3,402 1.62 Boskalis 8,919 4.24 Westminster 156,965 3,167 1.50 Canada 2.31% (4.30%) ING Groep 1,042,342 7,129 3.39 Lundin Mining 765,239 4,870 2.31 PostNL 750,583 1,873 0.89 4,870 2.31 15,975 7.59

Denmark 3.73% (3.75%) Norway 6.53% (5.25%) Drilling Co. of 1972 119,977 2,782 1.32 DNB 390,599 5,597 2.66 Scandinavian TGS NOPEC Tobacco Group A 404,067 5,063 2.41 Geophysical 338,229 3,820 1.81 7,845 3.73 Yara International 142,457 4,333 2.06 13,750 6.53 France 20.39% (16.68%) Arkema 56,941 4,766 2.26 Poland 0.00% (1.81%) AXA 280,460 4,898 2.33 Romania 1.17% (4.00%) BNP Paribas 172,085 6,640 3.15 Societatea Nationala de Gaze Naturale Dassault Aviation 5,107 4,098 1.95 ROMGAZ 477,376 2,467 1.17 Publicis Groupe 216,971 7,916 3.76 2,467 1.17 Sanofi 119,414 8,412 4.00 Television Francaise Russia 3.96% (5.70%) 1 1,052,366 6,198 2.94 Gazprom ADR 918,930 3,761 1.79 42,928 20.39 LUKOIL ADR 91,517 4,566 2.17

Germany 17.60% (12.83%) 8,327 3.96 Allianz 47,725 8,627 4.10 Spain 2.19% (3.94%) Bayer 98,208 4,260 2.02 Repsol 623,300 4,603 2.19 Continental 62,201 6,843 3.25 4,603 2.19 Covestro 101,958 4,627 2.20 Switzerland 4.29% (1.54%) Fresenius 61,727 2,108 1.00 GAM Holding 2,610,879 4,676 2.22 Schaeffler Preference 1,173,876 7,155 3.40 Swatch Group 21,818 4,359 2.07 Software 114,830 3,435 1.63 9,035 4.29 37,055 17.60 United Kingdom 4.75% (0.00%) Greece 1.44% (1.54%) BT Group 3,443,753 4,555 2.16 Alpha Bank 3,550,089 3,032 1.44 TechnipFMC 318,053 2,201 1.05 3,032 1.44 Tesco 1,403,647 3,248 1.54 10,004 4.75 Italy 9.18% (12.57%) Eni 1,075,033 8,212 3.90 Equities total 202,165 96.03 Intesa Sanpaolo 2,837,506 4,858 2.31 Portfolio of investments 202,165 96.03 Net other assets 8,363 3.97 Net assets attributable to shareholders 210,528 100.00

The comparative percentage figures in brackets are as at 31 December 2019. Unless otherwise stated, all securities are admitted to official stock exchange listings.

Schroder European Recovery Fund Final Report and Accounts 83 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (34,142) – 31,281 Revenue 3 4,507 – 14,249 – Expenses 4 (2,270) – (3,384) – Net revenue before taxation 2,237 – 10,865 – Taxation 5 (256) – (844) – Net revenue after taxation 1,981 10,021 Total return before distributions (32,161) 41,302 Distributions 6 (1,983) (10,026) Change in net assets attributable to shareholders from investment activities (34,144) 31,276

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020

2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 278,766 322,144 Amounts receivable on issue of shares 37,680 – 7,204 – Amounts payable on cancellation of shares (73,664) – (89,991) – (35,984) (82,787) Dilution adjustment 65 25 Change in net assets attributable to shareholders from investment activities (34,144) 31,276 Retained distribution on Accumulation shares 1,820 8,108 Unclaimed distributions 5 – Closing net assets attributable to shareholders 210,528 278,766

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 202,165 274,566 Current assets Debtors 8 1,370 1,716 Cash and bank balances 7,784 3,796 Total assets 211,319 280,078 – – Liabilities – – Creditors Distributions payable (94) (721) Other creditors 9 (697) (591) Total liabilities (791) (1,312) – – Net assets attributable to shareholders 210,528 278,766

Schroder European Recovery Fund Final Report and Accounts 84 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder European Recovery Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities (34,867) 31,636 Forward foreign currency contracts (1) (1) Foreign currency gains/(losses) 738 (336) Transaction costs (12) (18) Net capital (losses)/gains (34,142) 31,281

3 Revenue

2020 2019 £000's £000's Overseas dividends 4,505 14,225 Bank interest 2 24 Total revenue 4,507 14,249

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 1,849 2,736 Administration charge 291 447 2,140 3,183 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 19 31 Safe custody fees 19 56 Dividend expenses 21 22 59 109 Other expenses:

Audit fee 9 8 Professional fee 14 36 Interest payable 48 48 71 92 Total expenses 2,270 3,384

Schroder European Recovery Fund Final Report and Accounts 85 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Analysis of the tax charge for the year 2020 2019 £000's £000's

Overseas withholding tax 256 844 Total current tax (Note 5(b)) 256 844

2020 2019 £000’s £000’s Net revenue before taxation 2,237 10,865

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 447 2,173 Effects of:

Revenue not subject to corporation tax (778) (2,845) Movement in excess management expenses 289 667 Irrecoverable overseas withholding tax 256 844 Expensed withholding tax incurred (17) – Movement in revenue taxable in different periods 49 – Loan relationship deficit 10 5 Current tax charge for the year (Note 5(a)) 256 844

(c) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £15,335,442 (2019 – £15,046,457) in respect of unutilised management expenses and loan relationship debits. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the year or prior year. 6 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Final Dividend distribution 1,915 8,829 Add: Revenue deducted on cancellation of shares 422 1,327 Deduct: Revenue received on issue of shares (354) (130) Distributions 1,983 10,026

Net revenue after taxation 1,981 10,021 Expenses taken to capital 2 – Equalisation on conversions – 5 Distributions 1,983 10,026

Details of the distributions per share are set out in the Distribution Table on page 92.

Schroder European Recovery Fund Final Report and Accounts 86 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 202,165 – 274,566 – Level 2: Observable market data – – – – Level 3: Unobservable data – – – – Total 202,165 – 274,566 –

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 353 12 Sales awaiting settlement – 147 Accrued revenue 42 261 Overseas withholding tax recoverable 975 1,296 Total debtors 1,370 1,716

9 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 482 312 Accrued expenses 212 278 Interest payable 3 1 Total other creditors 697 591

10 Contingent liabilities The aggregate contingent liabilities not provided for at the balance sheet date are:

2020 2019 £000's £000's Nil paid rights – 164 Total contingent liabilities – 164

Schroder European Recovery Fund Final Report and Accounts 87 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

11 Related party transactions The Authorised Corporate Director exercises control over the Fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the year or due to the Authorised Corporate Director at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies paid through the issue and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and Distributions in the Notes to the Accounts. Amounts due from or to the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Debtors and Other creditors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 4.24% (2019 – 16.06%). 12 Share classes The Fund currently has nine share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

A Accumulation shares 1.50% C Accumulation shares 0.75% (1.00% to 1 April 2020) C Income shares 0.75% (1.00% to 1 April 2020) L Accumulation shares 0.675% L Income shares 0.675% S Accumulation shares 0.375% S Income shares 0.375% Z Accumulation shares 0.75% Z Income shares 0.75%

The closing net asset value of each share class, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 78 to 82. The distributions per share class are given in the Distribution Table on page 92. All classes have the same rights on winding up.

Schroder European Recovery Fund Final Report and Accounts 88 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Foreign currency risk Where a portion of the net assets of the Fund are denominated in currencies other than sterling the balance sheet and total return can be affected by currency movements. Therefore the Authorised Corporate Director may decide that a proportion of the investments that are not priced in sterling, may be covered by forward currency contracts, so that the Fund’s exposure to currency risk is reduced. Revenue received in other currencies is translated to sterling on or near the date of receipt. The Fund does not hedge or otherwise seek to avoid currency movement risk on accrued revenue.

Currency risk profile The currency risk profile of the Fund’s net assets and liabilities at the balance sheet date was as follows:

2020 2019 Currency £000’s £000’s

Australian dollar 8,413 9,248 Canadian dollar 14 23 Danish krone 7,932 10,519 Euro 144,622 195,481 Norwegian krone 13,750 14,793 Polish zloty – 5,077 Romanian new leu 2,467 11,143 Sterling 11,056 45 Swedish krona 4,870 11,990 Swiss franc 9,035 4,292 US dollar 8,369 16,155

Interest rate risk Interest rate risk is the risk that the value of the Fund’s investment holdings will fluctuate as a result of changes in interest rates. Interest receivable on bank deposits positions will be affected by fluctuations in interest rates. At the year end date 3.70% (2019 – 1.36%) of the net assets of the Fund were interest bearing and as such the interest rate risk is not considered significant. Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average Rate. Foreign currency bank balances bear interest at rates based on the London Interbank Offer Rate or its international equivalent.

Schroder European Recovery Fund Final Report and Accounts 89 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 0.00% 8.29% 0.19% 0.00% 0.00% 1.54% 0.05% 0.07%

Principal Commissions Taxes Total cost Commissions Taxes % of 2020 £000's £000's £000's £000's % of principal principal Purchases

Equities 79,692 28 86 79,806 0.04 0.11

Sales

Equities 117,405 (65 ) – 117,340 (0.06) –

Total cost of the Fund's average net asset value (%) 0.05 0.04

Principal Commissions Taxes Total cost Commissions Taxes % of 2019 £000's £000's £000's £000's % of principal principal Purchases

Equities 38,369 19 1 38,389 0.05 –

Sales

Equities 97,371 (55 ) (1 ) 97,315 (0.06) –

Total cost of the Fund's average net asset value (%) 0.03 –

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.22% (2019 – 0.26%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 A Accumulation shares 10,597,964 378,276 (1,454,441) (62,432) 9,459,367 C Accumulation shares 1,856,924 3,253 (194,729) (15,991) 1,649,457 C Income shares 39,587 – (20,276) – 19,311 L Accumulation shares 34,698,716 5,392,290 (8,562,909) 694,265 32,222,362 L Income shares 1,474,060 219,836 (1,000,379) 755,025 1,448,542 S Accumulation shares 3,694,959 – (3,058,175) (25,990) 610,794 S Income shares 19,449,104 – (14,249,402) 264,977 5,464,679 Z Accumulation shares 11,727,357 4,062,298 (4,195,402) 13,330 11,607,583 Z Income shares 848,748 94,276 (328,637) (68,117) 546,270

Schroder European Recovery Fund Final Report and Accounts 90 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Number of Number of shares in shares in issue issue Dealing price Dealing price 23.4.21 31.12.20 % change 23.4.21 31.12.20 % change A Accumulation shares 9,099,696 9,459,367 (3.80) 793.60p 715.20p 10.96 C Accumulation shares 1,493,362 1,649,457 (9.46) 870.50p 782.70p 11.22 C Income shares 19,311 19,311 – 752.20p 683.30p 10.08 L Accumulation shares 27,613,327 32,222,362 (14.30) 79.78p 71.72p 11.24 L Income shares 1,212,249 1,448,542 (16.31) 68.76p 62.55p 9.93 S Accumulation shares 563,885 610,794 (7.68) 886.60p 796.20p 11.35 S Income shares 4,294,990 5,464,679 (21.40) 64.73p 58.95p 9.80 Z Accumulation shares 8,681,131 11,607,583 (25.21) 921.30p 828.40p 11.21 Z Income shares 782,485 546,270 43.24 735.20p 667.90p 10.08

The Fund experienced higher than average cancellation of units post year end. The liquidity measures within the Fund remain within normal range and there is no immediate or material uncertainty about the viability of the Fund as a going concern.

Schroder European Recovery Fund Final Report and Accounts 91 31 December 2020 Distribution Table

Final distribution for the year ended 31 December 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Accumulation shares Group 1 3.1763p – 3.1763p 19.5895p Group 2 1.9153p 1.2610p 3.1763p 19.5895p C Accumulation shares Group 1 8.1436p – 8.1436p 26.0667p Group 2 1.8874p 6.2562p 8.1436p 26.0667p C Income shares Group 1 7.0427p – 7.0427p 23.5205p Group 2 7.0427p – 7.0427p 23.5205p L Accumulation shares Group 1 0.8330p – 0.8330p 2.6156p Group 2 0.0701p 0.7629p 0.8330p 2.6156p L Income shares Group 1 0.7444p – 0.7444p 2.3672p Group 2 0.0926p 0.6518p 0.7444p 2.3672p S Accumulation shares Group 1 11.2077p – 11.2077p 31.3652p Group 2 11.2077p – 11.2077p 31.3652p S Income shares Group 1 0.8173p – 0.8173p 2.4020p Group 2 0.8173p – 0.8173p 2.4020p Z Accumulation shares Group 1 9.0326p – 9.0326p 29.6849p Group 2 0.6430p 8.3896p 9.0326p 29.6849p Z Income shares Group 1 6.8988p – 6.8988p 24.7653p Group 2 1.2619p 5.6369p 6.8988p 24.7653p

Schroder European Recovery Fund Final Report and Accounts 92 31 December 2020 Schroder Core UK Equity Fund Fund Information

Investment objective and policy The Schroder Core UK Equity Fund (the ‘Fund’) aims to provide capital growth and income in excess of the FTSE All Share (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of UK companies. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of UK companies. These are companies that are incorporated, headquartered or have their principal business activities in the UK. 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 or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). Fund characteristics The Fund’s performance should be assessed against the target benchmark, being to exceed the FTSE All Share (Gross Total Return) index, and compared against the Investment Association UK All Companies sector average return. The Investment Adviser invests on a discretionary basis and is not limited to investing in accordance with the composition of the benchmark. The target benchmark has been selected because it is representative of the type of investments in which the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the return that the Fund aims to provide. The comparator benchmark has been selected because the Investment Adviser and the ACD believe that this benchmark is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder Core UK Equity Fund Final Report and Accounts 93 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Fund Manager: shares on a dealing price basis fell 7.78%. In the same period, the FTSE1 All Matt Bennison Share Index generated a negative total return of 9.82%2. UK equities fell sharply in March as the coronavirus pandemic caused the fastest decline in global financial markets on record. Equity markets have staged a recovery from their lowest point in March. However, the UK equity market is still 9.8% below its starting point in 2020. The Fund fell 7.8% versus the FTSE All-Share index fall of 9.8%. Positive influences came from a range of companies where we have built conviction positions. These included retailer Pets at Home Group and online food retailer Ocado Group together with companies that were bid for, security services firm G4S and bookmaker William Hill, recognising the mispricing that we had seen in these companies. Negatives included our holdings in industrials with outsourcing firm Capita and public transport firm Firstgroup both suffering from extremely challenging trading conditions as a result of Covid-19. Manager of the Schroder Core UK Equity Fund since New holdings in the portfolio include those that could benefit from infrastructure spend, September 2018 and fund manager for Prime UK equity such as US building products distributor Ferguson and diversified miner Anglo American. portfolios since 2017 We are also interested in companies exposed to efforts to reduce climate change and facilitate energy transition. Infrastructure group John Laing Group, a long-standing Research responsibility focuses on UK companies, for the holding, is an example here together with new portfolio additions power firm Drax Group Prime UK Equity team since 2015 and the Core UK Equity and utility National Grid. We financed these purchases largely from sales of oil majors and Fund from September 2018 banks where we took decisive action early in the crisis to sell companies where Covid-19 Investment career commenced in 2012 at Schroders Private brought on fundamental concerns. Bank (that subsequently became Cazenove Capital), where Positive vaccine news has been a shot in the arm for markets since November, but the he worked for the Chief Investment Officer UK equity market remains at a significant discount to other markets. Brexit uncertainty CFA charterholder weighed on sentiment until the UK struck a trade deal on goods with the EU at the end Degree in Natural Sciences, Cambridge University and of the year. The portfolio consists of a blend of lowly valued domestic stocks, such as life one year Management Studies, Judge Business School, insurance business Legal and General Group, supermarket Tesco and Premier Inn owner Cambridge Whitbread, as well as market-leading international businesses trading at a material discount to their global peers. These include defence business BAE Systems, luxury goods firm Burberry Group and life insurance business Prudential. With an economic recovery emerging during 2021 as vaccination rollout covers the more vulnerable in society, allowing the lifting of restrictions and the resumption of more normal life, companies are likely to have greater confidence to reinstate guidance, resume investment activities and make dividend payments.

Schroder Core UK Equity Fund Final Report and Accounts 94 31 December 2020 Risk Profile

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

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Schroder Core UK Equity Fund Final Report and Accounts 95 31 December 2020 Comparative Table

A Accumulation shares A Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 312.44 264.27 298.49 169.70 149.96 176.63 Return before operating charges* (23.51) 52.34 (30.04) (13.17) 29.42 (17.35) Operating charges (3.73) (4.17) (4.18) (2.01) (2.34) (2.44) Return after operating charges* (27.24) 48.17 (34.22) (15.18) 27.08 (19.79)

Distributions1 (8.12) (13.08) (11.75) (4.37) (7.34) (6.88) Retained distributions1 8.12 13.08 11.75 – – – Closing net asset value 285.20 312.44 264.27 150.15 169.70 149.96

*after direct transaction costs of (0.26) (0.44) (0.47) (0.14) (0.24) (0.27) – – – – – – Performance

Return after charges (%) (8.72) 18.23 (11.46) (8.95) 18.06 (11.20) – – – – – – Other information

Closing net asset value (£000's) 14,536 17,895 19,930 1,474 1,815 2,307 Closing number of shares 5,096,805 5,727,609 7,541,427 981,813 1,069,613 1,538,338 Operating charges (%) 1.44 1.43 1.43 1.44 1.43 1.43 Direct transaction costs (%)** 0.10 0.15 0.16 0.10 0.15 0.16 – – – – – – Prices

Highest dealing price 317.06p 317.40p 312.10p 172.24p 175.60p 184.70p Lowest dealing price 192.41p 262.10p 258.80p 104.53p 148.70p 149.80p

Schroder Core UK Equity Fund Final Report and Accounts 96 31 December 2020 Comparative Table (continued)

C Accumulation shares C Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 334.00 281.80 317.48 181.71 160.16 188.17 Return before operating charges* (24.94) 55.88 (32.01) (14.00) 31.46 (18.52) Operating charges (2.56) (3.68) (3.67) (1.39) (2.06) (2.15) Return after operating charges* (27.50) 52.20 (35.68) (15.39) 29.40 (20.67)

Distributions1 (8.70) (13.96) (12.51) (4.69) (7.85) (7.34) Retained distributions1 8.70 13.96 12.51 – – – Closing net asset value 306.50 334.00 281.80 161.63 181.71 160.16

*after direct transaction costs of (0.28) (0.47) (0.50) (0.15) (0.26) (0.29) – – – – – – Performance

Return after charges (%) (8.23) 18.52 (11.24) (8.47) 18.36 (10.98) – – – – – – Other information

Closing net asset value (£000's) 1,820 2,371 2,055 1,166 1,512 1,560 Closing number of shares 593,872 709,790 729,209 721,288 832,338 974,332 Operating charges (%) 0.82 1.18 1.18 0.82 1.18 1.18 Direct transaction costs (%)** 0.10 0.15 0.16 0.10 0.15 0.16 – – – – – – Prices

Highest dealing price 338.98p 339.30p 332.30p 184.45p 188.00p 196.90p Lowest dealing price 205.81p 279.50p 275.90p 111.99p 158.80p 160.00p

Schroder Core UK Equity Fund Final Report and Accounts 97 31 December 2020 Comparative Table (continued)

S Income shares Z Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 49.22 43.11 50.32 351.78 295.70 331.88 Return before operating charges* (3.78) 8.49 (4.97) (26.26) 58.71 (33.56) Operating charges (0.23) (0.26) (0.27) (2.39) (2.63) (2.62) Return after operating charges* (4.01) 8.23 (5.24) (28.65) 56.08 (36.18)

Distributions1 (1.27) (2.12) (1.97) (9.17) (14.67) (13.10) Retained distributions1 – – – 9.17 14.67 13.10 Closing net asset value 43.94 49.22 43.11 323.13 351.78 295.70

*after direct transaction costs of (0.04) (0.07) (0.08) (0.29) (0.49) (0.52) – – – – – – Performance

Return after charges (%) (8.15) 19.09 (10.41) (8.14) 18.97 (10.90) – – – – – – Other information

Closing net asset value (£000's) 2,934 6,192 7,330 18,738 23,520 28,400 Closing number of shares 6,678,097 12,580,397 17,003,355 5,798,933 6,686,002 9,604,462 Operating charges (%) 0.57 0.56 0.55 0.82 0.81 0.80 Direct transaction costs (%)** 0.10 0.15 0.16 0.10 0.15 0.16 – – – – – – Prices

Highest dealing price 49.98p 50.92p 52.80p 357.08p 357.40p 347.90p Lowest dealing price 30.38p 42.76p 43.06p 216.95p 293.30p 289.50p

Schroder Core UK Equity Fund Final Report and Accounts 98 31 December 2020 Comparative Table (continued)

Z Income shares 2020 2019 2018 Financial year to 31 December p per share p per share p per share Change in net asset value

Opening net asset value 191.18 167.87 196.47 Return before operating charges* (14.73) 33.03 (19.39) Operating charges (1.29) (1.48) (1.53) Return after operating charges* (16.02) 31.55 (20.92)

Distributions1 (4.94) (8.24) (7.68) Retained distributions – – – Closing net asset value 170.22 191.18 167.87

*after direct transaction costs of (0.16) (0.28) (0.30) – – – Performance

Return after charges (%) (8.38) 18.79 (10.65) – – – Other information

Closing net asset value (£000's) 6,322 8,432 7,939 Closing number of shares 3,714,135 4,410,587 4,728,991 Operating charges (%) 0.82 0.81 0.80 Direct transaction costs (%)** 0.10 0.15 0.16 – – – Prices

Highest dealing price 194.10p 197.80p 205.90p Lowest dealing price 117.93p 166.50p 167.70p

Schroder Core UK Equity Fund Final Report and Accounts 99 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets Equities 98.97% (99.22%) ITV 359,501 384 0.82 Next 8,623 611 1.30 Oil & Gas 2.76% (12.37%) Ocado Group 36,342 826 1.76 BP 135,795 346 0.74 Pearson 229,983 1,563 3.32 Royal Dutch Shell B 75,424 950 2.02 Pets at Home Group 365,527 1,521 3.24 1,296 2.76 RELX 87,801 1,574 3.35 Basic Materials 13.26% (9.04%) Tesco 661,724 1,531 3.26 Anglo American 64,799 1,571 3.34 Whitbread 45,245 1,402 2.98 BHP Group 96,533 1,858 3.96 10,687 22.74 Johnson Matthey 32,721 793 1.69 Telecommunications 0.75% (0.00%)

Rio Tinto 36,665 2,006 4.27 BT Group 265,547 351 0.75 6,228 13.26 351 0.75 Industrials 18.21% (14.24%) Utilities 3.06% (0.00%)

BAE Systems 289,381 1,414 3.01 Drax Group 143,005 536 1.14 Balfour Beatty 337,142 911 1.94 National Grid 104,445 903 1.92 Biffa 96,598 221 0.47 1,439 3.06 Capita 1,052,830 413 0.88 Financials 17.95% (19.65%) Ferguson 9,394 834 1.78 G4S 763,457 1,938 4.12 Assura 926,916 709 1.51 Invinity Energy Intermediate Capital Systems# 83,445 179 0.38 Group 54,368 938 2.00 IWG 375,667 1,281 2.73 John Laing Group 277,902 923 1.96 QinetiQ Group 254,401 814 1.73 Legal & General Group 797,625 2,122 4.52 Smiths Group 36,625 551 1.17 Lloyds Banking 8,556 18.21 Group 1,646,135 600 1.28 Consumer Goods 9.37% (10.39%) Prudential 108,900 1,467 3.12 British American Standard Chartered 266,429 1,241 2.64 Tobacco 36,094 977 2.08 TP ICAP 182,097 434 0.92 Burberry Group 75,850 1,357 2.89 8,434 17.95 Taylor Wimpey 373,438 619 1.31 Equities total 46,504 98.97 Unilever 33,026 1,451 3.09 Collective Investment Schemes 0.69% (0.00%) 4,404 9.37 Multi Asset Funds 0.69% (0.00%) Health Care 10.87% (12.06%) Syncona§ 124,398 324 0.69 AstraZeneca 27,774 2,034 4.33 324 0.69 GlaxoSmithKline 195,712 2,627 5.59 Collective Investment Schemes Smith & Nephew 29,678 448 0.95 total 324 0.69 5,109 10.87 Portfolio of investments 46,828 99.66 Consumer Services 22.74% (21.47%)

Daily Mail & General Net other assets 162 0.34 Trust A 64,336 479 1.02 Net assets attributable to Firstgroup 1,075,121 796 1.69 shareholders 46,990 100.00

Schroder Core UK Equity Fund Final Report and Accounts 100 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (7,091) – 9,701 Revenue 3 1,468 – 3,249 – Expenses 4 (463) – (701) – Net revenue before taxation 1,005 – 2,548 – Taxation 5 – – – – Net revenue after taxation 1,005 2,548 Total return before distributions (6,086) 12,249 Distributions 6 (1,468) (3,249) Change in net assets attributable to shareholders from investment activities (7,554) 9,000

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020 2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 61,738 69,521 Amounts receivable on issue of shares 946 – 8,458 – Amounts payable on cancellation of shares (9,169) – (27,412) – (8,223) (18,954) Dilution adjustment 1 8 Change in net assets attributable to shareholders from investment activities (7,554) 9,000 Retained distribution on Accumulation shares 1,027 2,161 Unclaimed distributions 1 2 Closing net assets attributable to shareholders 46,990 61,738

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 46,828 61,259 Current assets Debtors 8 325 169 Cash and bank balances 194 733 Total assets 47,347 62,161 – – Liabilities – – Creditors Distributions payable (157) (329) Other creditors 9 (200) (94) Total liabilities (357) (423) – – Net assets attributable to shareholders 46,990 61,738

Schroder Core UK Equity Fund Final Report and Accounts 101 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder Core UK Equity Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities (7,078) 9,706 Foreign currency losses (7) – Transaction costs (6) (5) Net capital (losses)/gains (7,091) 9,701

3 Revenue

2020 2019 £000's £000's UK dividends 1,439 3,206 Overseas dividends 15 27 Real estate income distributions 13 13 Bank interest – 3 Underwriting commission 1 – Total revenue 1,468 3,249

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 379 576 Administration charge 70 108 449 684 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 5 8 Other expenses:

Audit fee 9 9 Total expenses 463 701

Schroder Core UK Equity Fund Final Report and Accounts 102 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Factors affecting the current tax charge for the year The tax assessed for the year is different from that calculated when the standard rate of corporation tax for Open Ended Investment Companies of 20% (2019 – 20%) is applied to the net revenue before taxation. The differences are explained below.

2020 2019 £000’s £000’s Net revenue before taxation 1,005 2,548

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 201 510 Effects of:

Revenue not subject to corporation tax (291) (647) Movement in excess management expenses 90 137 Current tax charge for the year (Note 5(a)) – –

(b) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £12,751,574 (2019 – £12,661,763) in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the year or prior year. 6 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Interim Dividend distribution 786 1,865 Final Dividend distribution 615 1,118 1,401 2,983 Add: Revenue deducted on cancellation of shares 78 345 Deduct: Revenue received on issue of shares (11) (79) Distributions 1,468 3,249

Net revenue after taxation 1,005 2,548 Expenses taken to capital 463 701 Distributions 1,468 3,249

Details of the distributions per share are set out in the Distribution Table on pages 108 to 109.

Schroder Core UK Equity Fund Final Report and Accounts 103 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s

Level 1: Quoted prices 46,828 – 61,259 – Level 2: Observable market data – – – – Level 3: Unobservable data – – – – Total 46,828 – 61,259 –

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 206 7 Accrued revenue 117 159 Income tax recoverable 2 3 Total debtors 325 169

9 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 150 29 Accrued expenses 50 65 Total other creditors 200 94

Schroder Core UK Equity Fund Final Report and Accounts 104 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

A Accumulation shares 1.25% A Income shares 1.25% C Accumulation shares 0.625% (1.00% to 1 April 2020) C Income shares 0.625% (1.00% to 1 April 2020) S Income shares 0.375% Z Accumulation shares 0.625% Z Income shares 0.625%

The closing net asset value of each share class, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 96 to 99. The distributions per share class are given in the Distribution Table on pages 108 to 109. All classes have the same rights on winding up. 13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Interest rate risk Interest rate risk is the risk that the value of the Fund’s investment holdings will fluctuate as a result of changes in interest rates. Interest receivable on bank deposits positions will be affected by fluctuations in interest rates. At the year end date 0.41% (2019 – 1.19%) of the net assets of the Fund were interest bearing and as such the interest rate risk is not considered significant. Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average Rate.

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 0.00% 0.52% 0.02% 0.00% 0.00% 0.09% 0.00% 0.00%

Schroder Core UK Equity Fund Final Report and Accounts 105 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Principal Commissions Taxes Total cost Commissions Taxes % of 2020 £000's £000's £000's £000's % of principal principal Purchases

Purchases1: Equities 9,226 4 40 9,270 0.04 0.44 Corporate actions purchases: – – – Equities 273 – – 273 – – 9,499 4 40 9,543

Sales

Equities 16,901 (5) – 16,896 (0.03) –

Total cost of the Fund's average net asset value (%) 0.02 0.09

Principal Commissions Taxes Total cost Commissions Taxes % of 2019 £000's £000's £000's £000's % of principal principal Purchases

Purchases1: Equities 19,562 7 91 19,660 0.04 0.47 Corporate actions purchases: – – – Equities 124 – – 124 – – 19,686 7 91 19,784

Sales

Equities 37,293 (14) – 37,279 (0.04) –

Total cost of the Fund's average net asset value (%) 0.03 0.13

1 Excluding corporate actions.

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.18% (2019 – 0.13%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price.

Schroder Core UK Equity Fund Final Report and Accounts 106 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Dealing price Dealing price 23.4.21 31.12.20 % change A Accumulation shares 308.30p 286.60p 7.57 A Income shares 162.30p 152.90p 6.15 C Accumulation shares 332.00p 308.00p 7.79 C Income shares 175.10p 164.60p 6.38 S Income shares 47.64p 44.73p 6.51 Z Accumulation shares 350.00p 324.70p 7.79 Z Income shares 184.40p 173.30p 6.41

Schroder Core UK Equity Fund Final Report and Accounts 107 31 December 2020 Distribution Table

Interim distribution for the six months ended 30 June 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.8.20 31.8.19 per share per share per share per share A Accumulation shares Group 1 4.3952p – 4.3952p 7.4410p Group 2 2.4479p 1.9473p 4.3952p 7.4410p A Income shares Group 1 2.3877p – 2.3877p 4.2217p Group 2 1.5932p 0.7945p 2.3877p 4.2217p C Accumulation shares Group 1 4.7023p – 4.7023p 7.9399p Group 2 2.5599p 2.1424p 4.7023p 7.9399p C Income shares Group 1 2.5588p – 2.5588p 4.5119p Group 2 1.2398p 1.3190p 2.5588p 4.5119p S Income shares Group 1 0.6940p – 0.6940p 1.2162p Group 2 0.6940p – 0.6940p 1.2162p Z Accumulation shares Group 1 4.9563p – 4.9563p 8.3397p Group 2 2.1567p 2.7996p 4.9563p 8.3397p Z Income shares Group 1 2.6941p – 2.6941p 4.7338p Group 2 1.4069p 1.2872p 2.6941p 4.7338p

Final distribution for the six months ended 31 December 2020 Group 1 Shares purchased prior to 1 July 2020 Group 2 Shares purchased on or after 1 July 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Accumulation shares Group 1 3.7237p – 3.7237p 5.6363p Group 2 1.2791p 2.4446p 3.7237p 5.6363p A Income shares Group 1 1.9863p – 1.9863p 3.1177p Group 2 1.2503p 0.7360p 1.9863p 3.1177p C Accumulation shares Group 1 3.9946p – 3.9946p 6.0211p Group 2 2.0037p 1.9909p 3.9946p 6.0211p C Income shares Group 1 2.1343p – 2.1343p 3.3358p Group 2 0.1600p 1.9743p 2.1343p 3.3358p

Schroder Core UK Equity Fund Final Report and Accounts 108 31 December 2020 Distribution Table (continued)

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share S Income shares Group 1 0.5772p – 0.5772p 0.9000p Group 2 0.5772p – 0.5772p 0.9000p Z Accumulation shares Group 1 4.2112p – 4.2112p 6.3352p Group 2 0.9633p 3.2479p 4.2112p 6.3352p Z Income shares Group 1 2.2477p – 2.2477p 3.5061p Group 2 0.8461p 1.4016p 2.2477p 3.5061p

Schroder Core UK Equity Fund Final Report and Accounts 109 31 December 2020 Schroder UK Alpha Income Fund Fund Information

Investment objective and policy The Schroder UK Alpha Income Fund (the ‘Fund’) aims to provide income and capital growth in excess of the FTSE All Share (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of UK companies. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of UK companies. These are companies that are incorporated, headquartered or have their principal business activities in the UK. ‘Alpha’ funds invest in companies in which the Investment Manager has a high conviction that the current share price does not reflect the future prospects for that business. 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 or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). Fund characteristics The Fund’s performance should be assessed against its target benchmark , being to exceed the FTSE All Share (Gross Total Return) index, and compared against the Investment Association UK Equity Income sector average return. The Investment Adviser invests on a discretionary basis and is not limited to investing in accordance with the composition of the benchmark. The target benchmark has been selected because it is representative of the type of investments in which the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the return that the Fund aims to provide. The comparator benchmark has been selected because the Investment Adviser and the ACD believe that this benchmark is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder UK Alpha Income Fund Final Report and Accounts 110 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Co-Fund Manager: shares on a dealing price basis fell 7.73%. In the same period, the FTSE1 All Matt Bennison Share Index generated a negative return of 9.82%2. UK equities fell sharply in March as the coronavirus pandemic caused the fastest decline in global financial markets on record. Equity markets have staged a recovery from their lowest point in March. However, the UK equity market is still 9.8% below its starting point in 2020. The Fund fell 7.7% versus the FTSE All-Share index fall of 9.8%. Positive influences came from a range of companies where we have built conviction positions. These included retailer Pets at Home and chemical group Croda together with companies that were bid for, security services firm G4S and bookmaker William Hill, recognising the mispricing that we had seen in these companies. Negatives included companies suffering from extremely challenging trading conditions as a result of Covid-19; airline Easyjet, media firm WPP and public transport group National Express. Co-manager of the Schroder Core UK Equity Fund since The fund manager changed in March 2020 and new managers Sue Noffke and Matt Bennison September 2018 and Fund manager for Prime UK equity exited numerous positions. Their process involves finding mispriced opportunities. This portfolios since 2017. Research responsibility focuses on UK drove purchases of companies that could benefit from infrastructure spend (miner Anglo companies, for the Prime UK Equity team since 2015 and the American) and companies exposed to efforts to reduce climate change and facilitate Core UK Equity Fund from September 2018 energy transition (utility National Grid). Co-manager of UK Alpha Income fund since March 2020 Positive vaccine news has been a shot in the arm for markets since November, but the UK equity market remains at a significant discount to other markets. Brexit uncertainty Investment career commenced in 2012 at Schroders Private weighed on sentiment until the UK struck a trade deal on goods with the EU at the end of Bank (that subsequently became Cazenove Capital), where the year. The portfolio blends lowly valued domestic companies (life insurance business he worked for the Chief Investment Officer Legal and General and supermarket Tesco) with market leading international business CFA charterholder (BAE Systems and luxury goods firm Burberry newly added to the portfolio) and aims to Degree in Natural Sciences, Cambridge University and achieve a dividend yield premium to the FTSE All-Share index. With an economic recovery one year Management Studies, Judge Business School, emerging during 2021 as vaccination rollout covers the more vulnerable in society, allowing Cambridge the lifting of restrictions and the resumption of more normal life, companies are likely to have greater confidence to reinstate guidance, resume investment activities and make Co-Fund Manager: dividend payments. Indeed, a number of portfolio companies (Direct Line Insurance, BAE Systems and Bunzl) restored dividends and made additional payments to make up for Sue Noffke those deferred earlier in 2020.

Sue Noffke is a UK Equity Fund Manager at Schroders, and a founding member of the Prime UK Equity team established in 2006. She is co-fund manager of the Schroder Prime UK Equity Fund and fund manager of the Schroder Income Growth Fund plc. Sue has managed UK equity portfolios for institutional clients since 1993. She joined Schroders in 1989 and is based in London Co-manager of UK Alpha Income fund since March 2020 Sue was an analyst at Schroders from 1989 to 1993, with responsibilities for insurance, tobacco and retail sectors in the UK market Honorary Doctorate Degree from Aston University; BSc in Business Administration and Biochemistry from Aston University

Schroder UK Alpha Income Fund Final Report and Accounts 111 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

Schroder UK Alpha Income Fund Final Report and Accounts 112 31 December 2020 Comparative Table

A Accumulation shares A Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 206.46 170.87 204.50 153.06 133.00 167.41 Return before operating charges* (15.15) 38.73 (30.29) (11.65) 29.85 (24.38) Operating charges (2.86) (3.14) (3.34) (2.11) (2.42) (2.62) Return after operating charges* (18.01) 35.59 (33.63) (13.76) 27.43 (27.00)

Distributions1 (6.68) (9.58) (9.15) (4.90) (7.37) (7.41) Retained distributions1 6.68 9.58 9.15 – – – Closing net asset value 188.45 206.46 170.87 134.40 153.06 133.00

*after direct transaction costs of (0.34) (0.47) (0.41) (0.25) (0.36) (0.33) – – – – – – Performance

Return after charges (%) (8.72) 20.83 (16.44) (8.99) 20.62 (16.13) – – – – – – Other information

Closing net asset value (£000's) 1,840 2,097 2,533 3,895 5,569 7,514 Closing number of shares 976,582 1,015,780 1,482,124 2,898,169 3,638,277 5,649,543 Operating charges (%) 1.68 1.67 1.67 1.68 1.67 1.67 Direct transaction costs (%)** 0.20 0.25 0.21 0.20 0.25 0.21 – – – – – – Prices

Highest dealing price 209.30p 209.10p 207.30p 155.20p 158.70p 169.70p Lowest dealing price 129.63p 169.70p 167.60p 96.12p 132.10p 133.90p

Schroder UK Alpha Income Fund Final Report and Accounts 113 31 December 2020 Comparative Table (continued)

C Accumulation shares C Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 227.11 187.01 222.68 164.90 142.56 178.54 Return before operating charges* (16.50) 42.52 (33.20) (12.45) 32.08 (26.10) Operating charges (1.88) (2.42) (2.47) (1.35) (1.82) (1.96) Return after operating charges* (18.38) 40.10 (35.67) (13.80) 30.26 (28.06)

Distributions1 (7.36) (10.51) (9.98) (5.29) (7.92) (7.92) Retained distributions1 7.36 10.51 9.98 – – – Closing net asset value 208.73 227.11 187.01 145.81 164.90 142.56

*after direct transaction costs of (0.38) (0.52) (0.44) (0.27) (0.39) (0.35) – – – – – – Performance

Return after charges (%) (8.09) 21.44 (16.02) (8.37) 21.23 (15.72) – – – – – – Other information

Closing net asset value (£000's) 6,268 7,118 6,419 7,965 9,833 9,581 Closing number of shares 3,003,035 3,134,049 3,432,493 5,462,219 5,963,095 6,720,636 Operating charges (%) 0.93 1.17 1.17 0.93 1.17 1.17 Direct transaction costs (%)** 0.20 0.25 0.21 0.20 0.25 0.21 – – – – – – Prices

Highest dealing price 230.28p 230.00p 225.80p 167.25p 171.00p 181.00p Lowest dealing price 142.75p 185.80p 183.40p 103.67p 141.60p 143.60p

Schroder UK Alpha Income Fund Final Report and Accounts 114 31 December 2020 Comparative Table (continued)

L Accumulation shares L Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 71.31 58.53 69.47 53.46 46.07 57.51 Return before operating charges* (5.17) 13.33 (10.38) (4.02) 10.38 (8.43) Operating charges (0.51) (0.55) (0.56) (0.38) (0.43) (0.46) Return after operating charges* (5.68) 12.78 (10.94) (4.40) 9.95 (8.89)

Distributions1 (2.31) (3.30) (3.12) (1.72) (2.56) (2.55) Retained distributions1 2.31 3.30 3.12 – – – Closing net asset value 65.63 71.31 58.53 47.34 53.46 46.07

*after direct transaction costs of (0.12) (0.16) (0.14) (0.09) (0.13) (0.11) – – – – – – Performance

Return after charges (%) (7.97) 21.83 (15.75) (8.23) 21.60 (15.46) – – – – – – Other information

Closing net asset value (£000's) 9,562 13,636 19,423 6,421 11,139 13,249 Closing number of shares 14,570,247 19,122,349 33,183,261 13,563,398 20,834,516 28,759,500 Operating charges (%) 0.85 0.85 0.84 0.85 0.85 0.84 Direct transaction costs (%)** 0.20 0.25 0.21 0.20 0.25 0.21 – – – – – – Prices

Highest dealing price 72.32p 72.22p 70.46p 54.23p 55.44p 58.32p Lowest dealing price 44.86p 58.15p 57.40p 33.64p 45.76p 46.39p

Schroder UK Alpha Income Fund Final Report and Accounts 115 31 December 2020 Comparative Table (continued)

S Accumulation shares S Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 230.04 188.26 222.76 51.81 44.51 55.39 Return before operating charges* (16.55) 42.91 (33.35) (3.87) 10.05 (8.14) Operating charges (1.14) (1.13) (1.15) (0.25) (0.27) (0.28) Return after operating charges* (17.69) 41.78 (34.50) (4.12) 9.78 (8.42)

Distributions1 (7.48) (10.61) (10.02) (1.67) (2.48) (2.46) Retained distributions1 7.48 10.61 10.02 – – – Closing net asset value 212.35 230.04 188.26 46.02 51.81 44.51

*after direct transaction costs of (0.41) (0.52) (0.44) (0.09) (0.12) (0.11) – – – – – – Performance

Return after charges (%) (7.69) 22.19 (15.49) (7.95) 21.97 (15.20) – – – – – – Other information

Closing net asset value (£000's) 111 1,219 7,969 3,022 19,821 29,174 Closing number of shares 52,200 529,916 4,233,019 6,567,369 38,254,111 65,542,209 Operating charges (%) 0.55 0.55 0.54 0.55 0.55 0.54 Direct transaction costs (%)** 0.20 0.25 0.21 0.20 0.25 0.21 – – – – – – Prices

Highest dealing price 233.33p 233.00p 226.00p 52.56p 53.73p 56.19p Lowest dealing price 144.79p 187.00p 184.60p 32.62p 44.21p 44.83p

Schroder UK Alpha Income Fund Final Report and Accounts 116 31 December 2020 Comparative Table (continued)

Z Accumulation shares Z Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 240.56 197.60 234.70 171.49 147.89 184.74 Return before operating charges* (17.48) 44.96 (35.05) (12.93) 33.32 (27.05) Operating charges (1.85) (2.00) (2.05) (1.31) (1.49) (1.60) Return after operating charges* (19.33) 42.96 (37.10) (14.24) 31.83 (28.65)

Distributions1 (7.81) (11.12) (10.54) (5.51) (8.23) (8.20) Retained distributions1 7.81 11.12 10.54 – – – Closing net asset value 221.23 240.56 197.60 151.74 171.49 147.89

*after direct transaction costs of (0.40) (0.54) (0.47) (0.28) (0.40) (0.36) – – – – – – Performance

Return after charges (%) (8.04) 21.74 (15.81) (8.30) 21.52 (15.51) – – – – – – Other information

Closing net asset value (£000's) 24,695 33,165 49,629 34,731 50,573 70,475 Closing number of shares 11,162,397 13,786,569 25,116,230 22,888,867 29,490,226 47,654,948 Operating charges (%) 0.93 0.92 0.92 0.93 0.92 0.92 Direct transaction costs (%)** 0.20 0.25 0.21 0.20 0.25 0.21 – – – – – – Prices

Highest dealing price 243.95p 243.60p 238.00p 173.95p 177.80p 187.30p Lowest dealing price 151.29p 196.30p 193.80p 107.87p 146.90p 148.90p

Schroder UK Alpha Income Fund Final Report and Accounts 117 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets Equities 100.19% (98.17%) National Express Group 518,011 1,230 1.25 Oil & Gas 2.42% (7.72%) Pearson 320,515 2,178 2.21 Galp Energia 151,583 1,188 1.21 Pets at Home Group 734,223 3,056 3.10 Royal Dutch Shell B 94,742 1,193 1.21 RELX 193,761 3,473 3.53 2,381 2.42 Tesco 1,659,370 3,840 3.90 Basic Materials 16.12% (6.87%) 15,286 15.52

Anglo American 162,569 3,941 4.00 Telecommunications 0.00% (1.38%) BHP Group 294,993 5,679 5.76 Utilities 4.79% (5.21%) Croda International 50,493 3,321 3.37 National Grid 169,149 1,463 1.48 Rio Tinto 34,422 1,883 1.91 Severn Trent 66,984 1,532 1.56 Victrex 45,177 1,060 1.08 SSE 115,161 1,727 1.75 15,884 16.12 4,722 4.79 Industrials 14.74% (17.70%) Financials 27.92% (23.62%) BAE Systems 433,437 2,119 2.15 3i Group 122,282 1,415 1.44 Balfour Beatty 689,101 1,862 1.89 Big Yellow Group Bunzl 89,385 2,184 2.22 REIT 194,684 2,132 2.16 G4S 1,589,890 4,035 4.09 Direct Line Ibstock 535,140 1,105 1.12 Insurance Group 480,697 1,533 1.56 IWG 439,345 1,498 1.52 Empiric Student Property REIT 3,165,315 2,345 2.38 QinetiQ Group 538,268 1,721 1.75 Intermediate Capital 14,524 14.74 Group 165,413 2,853 2.90 Consumer Goods 12.42% (11.40%) John Laing Group 634,899 2,108 2.14 Bellway 23,650 699 0.71 Legal & General British American Group 1,486,242 3,955 4.01 Tobacco 110,675 2,997 3.04 M&G 1,445,165 2,861 2.90 Burberry Group 152,212 2,724 2.76 Polar Capital # Headlam Group 291,602 1,050 1.07 Holdings 330,287 2,286 2.32 Imperial Brands 162,101 2,489 2.53 Prudential 266,801 3,594 3.65 Taylor Wimpey 630,311 1,044 1.06 Sabre Insurance Group 521,431 1,442 1.46 Unilever 28,078 1,233 1.25 TP ICAP 412,111 982 1.00 12,236 12.42 27,506 27.92 Health Care 6.26% (6.19%) Technology 0.00% (1.07%) GlaxoSmithKline 459,157 6,162 6.26 Equities total 98,701 100.19 6,162 6.26 Consumer Services 15.52% (17.01%) Portfolio of investments 98,701 100.19

Hollywood Bowl Net other liabilities (191) (0.19) Group 756,412 1,509 1.53 Net assets attributable to shareholders 98,510 100.00

Schroder UK Alpha Income Fund Final Report and Accounts 118 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (17,903) – 29,163 Revenue 3 4,083 – 9,384 – Expenses 4 (973) – (1,660) – Net revenue before taxation 3,110 – 7,724 – Taxation 5 (9) – – – Net revenue after taxation 3,101 7,724 Total return before distributions (14,802) 36,887 Distributions 6 (4,052) (9,364) Change in net assets attributable to shareholders from investment activities (18,854) 27,523

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020

2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 154,170 215,966 Amounts receivable on issue of shares 1,713 – 2,281 – Amounts payable on cancellation of shares (40,116) – (94,717) – (38,403) (92,436) Dilution adjustment 18 11 Change in net assets attributable to shareholders from investment activities (18,854) 27,523 Retained distribution on Accumulation shares 1,576 3,100 Unclaimed distributions 3 6 Closing net assets attributable to shareholders 98,510 154,170

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 98,701 151,355 Current assets Debtors 8 412 600 Cash and bank balances 552 5,075 Total assets 99,665 157,030 – – Liabilities – – Creditors Distributions payable (948) (2,320) Other creditors 9 (207) (540) Total liabilities (1,155) (2,860) – – Net assets attributable to shareholders 98,510 154,170

Schroder UK Alpha Income Fund Final Report and Accounts 119 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder UK Alpha Income Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities (17,877) 29,171 Foreign currency losses (19) – Transaction costs (7) (8) Net capital (losses)/gains (17,903) 29,163

3 Revenue

2020 2019 £000's £000's UK dividends 3,961 9,027 Overseas dividends 58 255 Real estate income distributions 62 66 Bank interest 2 22 Underwriting commission – 14 Total revenue 4,083 9,384

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 797 1,355 Administration charge 156 275 953 1,630 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 11 20 Safe custody fees – 1 11 21 Other expenses:

Audit fee 9 9 Total expenses 973 1,660

5 Taxation (a) Analysis of the tax charge for the year

2020 2019 £000's £000's Overseas withholding tax 9 – Total current tax (Note 5(b)) 9 –

Corporation tax has been provided for at a rate of 20% (2019 – 20%).

Schroder UK Alpha Income Fund Final Report and Accounts 120 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

2020 2019 £000’s £000’s Net revenue before taxation 3,110 7,724

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 622 1,545 Effects of:

Revenue not subject to corporation tax (792) (1,857) Movement in excess management expenses 172 312 Irrecoverable overseas withholding tax 9 – Expensed withholding tax incurred (2) – Current tax charge for the year (Note 5(a)) 9 –

(c) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £7,680,702 (2019 – £7,508,843) in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the year or prior year. 6 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Interim Dividend distribution 2,126 4,638 Final Dividend distribution 1,655 3,655 3,781 8,293 Add: Revenue deducted on cancellation of shares 290 1,099 Deduct: Revenue received on issue of shares (19) (28) Distributions 4,052 9,364

Net revenue after taxation 3,101 7,724 Expenses taken to capital 973 1,660 Tax relief on capital gains (22) (20) Distributions 4,052 9,364

Details of the distributions per share are set out in the Distribution Table on pages 126 to 127.

Schroder UK Alpha Income Fund Final Report and Accounts 121 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 98,701 – 151,355 – Level 2: Observable market data – – – – Level 3: Unobservable data – – – – Total 98,701 – 151,355 –

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 31 5 Accrued revenue 360 591 Overseas withholding tax recoverable 6 – Income tax recoverable 15 4 Total debtors 412 600

9 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 119 392 Purchases awaiting settlement – 17 Accrued expenses 88 131 Total other creditors 207 540

Schroder UK Alpha Income Fund Final Report and Accounts 122 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

12 Share classes The Fund currently has ten share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

A Accumulation shares 1.50% A Income shares 1.50% C Accumulation shares 0.75% (1.00% to 1 April 2020) C Income shares 0.75% (1.00% to 1 April 2020) L Accumulation shares 0.675% L Income shares 0.675% S Accumulation shares 0.375% S Income shares 0.375% Z Accumulation shares 0.75% Z Income shares 0.75%

The closing net asset value of each share classes, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 113 to 117. The distributions per share class are given in the Distribution Table on pages 126 to 127. All classes have the same rights on winding up.

13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Interest rate risk Interest rate risk is the risk that the value of the Fund’s investment holdings will fluctuate as a result of changes in interest rates. Interest receivable on bank deposits positions will be affected by fluctuations in interest rates. At the year end date 0.56% (2019 – 3.29%) of the net assets of the Fund were interest bearing and as such the interest rate risk is not considered significant. Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average Rate.

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 0.00% 1.53% 0.01% 0.00% 0.00% 0.14% 0.00% 0.00%

Schroder UK Alpha Income Fund Final Report and Accounts 123 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Principal Commissions Taxes Total cost Commissions Taxes % of 2020 £000's £000's £000's £000's % of principal principal Purchases

Equities 37,774 15 172 37,961 0.04 0.45

Sales

Equities 72,764 (27) – 72,737 (0.04) –

Total cost of the Fund's average net asset value (%) 0.04 0.17

Principal Commissions Taxes Total cost Commissions Taxes % of 2019 £000's £000's £000's £000's % of principal principal Purchases

Purchases1: Equities 73,883 33 369 74,285 0.04 0.50 Corporate actions purchases: – – – Equities 522 – – 522 – – 74,405 33 369 74,807

Sales

Equities 163,602 (65) – 163,537 (0.04) –

Total cost of the Fund's average net asset value (%) 0.05 0.20

1 Excluding corporate actions.

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.30% (2019 – 0.17%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 A Accumulation shares 1,015,780 114,550 (153,748) – 976,582 A Income shares 3,638,277 85,749 (805,927) (19,930) 2,898,169 C Accumulation shares 3,134,049 155 (147,974) 16,805 3,003,035 C Income shares 5,963,095 53,290 (474,289) (79,877) 5,462,219 L Accumulation shares 19,122,349 270,999 (4,834,713) 11,612 14,570,247 L Income shares 20,834,516 1,196,841 (8,565,489) 97,530 13,563,398 S Accumulation shares 529,916 – (477,716) – 52,200 S Income shares 38,254,111 – (31,686,742) – 6,567,369 Z Accumulation shares 13,786,569 85,145 (2,667,677) (41,640) 11,162,397 Z Income shares 29,490,226 376,713 (7,075,490) 97,418 22,888,867

Schroder UK Alpha Income Fund Final Report and Accounts 124 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Dealing price Dealing price 23.4.21 31.12.20 % change A Accumulation shares 204.50p 189.20p 8.09 A Income shares 145.90p 137.20p 6.34 C Accumulation shares 227.00p 209.60p 8.30 C Income shares 158.70p 148.90p 6.58 L Accumulation shares 71.40p 65.90p 8.35 L Income shares 51.52p 48.34p 6.58 S Accumulation shares 231.20p 213.20p 8.44 S Income shares 50.13p 46.99p 6.68 Z Accumulation shares 240.60p 222.10p 8.33 Z Income shares 165.10p 154.90p 6.58

Schroder UK Alpha Income Fund Final Report and Accounts 125 31 December 2020 Distribution Table

Interim distribution for the six months ended 30 June 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.8.20 31.8.19 per share per share per share per share A Accumulation shares Group 1 3.5329p – 3.5329p 4.7545p Group 2 2.3869p 1.1460p 3.5329p 4.7545p A Income shares Group 1 2.6198p – 2.6198p 3.7000p Group 2 1.6446p 0.9752p 2.6198p 3.7000p C Accumulation shares Group 1 3.8917p – 3.8917p 5.2107p Group 2 1.4502p 2.4415p 3.8917p 5.2107p C Income shares Group 1 2.8264p – 2.8264p 3.9716p Group 2 1.6274p 1.1990p 2.8264p 3.9716p L Accumulation shares Group 1 1.2228p – 1.2228p 1.6323p Group 2 0.7351p 0.4877p 1.2228p 1.6323p L Income shares Group 1 0.9170p – 0.9170p 1.2845p Group 2 0.3575p 0.5595p 0.9170p 1.2845p S Accumulation shares Group 1 3.9502p – 3.9502p 5.2546p Group 2 3.9502p – 3.9502p 5.2546p S Income shares Group 1 0.8897p – 0.8897p 1.2422p Group 2 0.8897p – 0.8897p 1.2422p Z Accumulation shares Group 1 4.1243p – 4.1243p 5.5095p Group 2 2.3039p 1.8204p 4.1243p 5.5095p Z Income shares Group 1 2.9408p – 2.9408p 4.1227p Group 2 1.5888p 1.3520p 2.9408p 4.1227p

Final distribution for the six months ended 31 December 2020 Group 1 Shares purchased prior to 1 July 2020 Group 2 Shares purchased on or after 1 July 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Accumulation shares Group 1 3.1425p – 3.1425p 4.8261p Group 2 1.1189p 2.0236p 3.1425p 4.8261p

Schroder UK Alpha Income Fund Final Report and Accounts 126 31 December 2020 Distribution Table (continued)

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Income shares Group 1 2.2792p – 2.2792p 3.6719p Group 2 0.8333p 1.4459p 2.2792p 3.6719p C Accumulation shares Group 1 3.4729p – 3.4729p 5.3004p Group 2 3.0093p 0.4636p 3.4729p 5.3004p C Income shares Group 1 2.4672p – 2.4672p 3.9498p Group 2 0.8810p 1.5862p 2.4672p 3.9498p L Accumulation shares Group 1 1.0918p – 1.0918p 1.6627p Group 2 0.3990p 0.6928p 1.0918p 1.6627p L Income shares Group 1 0.8008p – 0.8008p 1.2793p Group 2 0.2834p 0.5174p 0.8008p 1.2793p S Accumulation shares Group 1 3.5293p – 3.5293p 5.3585p Group 2 3.5293p – 3.5293p 5.3585p S Income shares Group 1 0.7777p – 0.7777p 1.2386p Group 2 0.7777p – 0.7777p 1.2386p Z Accumulation shares Group 1 3.6810p – 3.6810p 5.6100p Group 2 1.4338p 2.2472p 3.6810p 5.6100p Z Income shares Group 1 2.5674p – 2.5674p 4.1043p Group 2 1.1239p 1.4435p 2.5674p 4.1043p

Schroder UK Alpha Income Fund Final Report and Accounts 127 31 December 2020 Schroder Strategic Credit Fund Fund Information

Investment objective and policy The Schroder Strategic Credit Fund (the ‘Fund’) aims to provide income and capital growth in excess of 3 Month GBP LIBOR (or an equivalent reference rate) (after fees have been deducted) over a three to five year period by investing in fixed and floating rate securities of companies in the UK and Europe but this cannot be guaranteed and your capital is at risk. The Fund is actively managed and invests at least 80% of its assets in fixed and floating rate securities denominated in sterling (or in other currencies and hedged back into sterling) issued by companies in the UK and Europe. The Fund may also invest in fixed and floating rate securities issued by companies worldwide and by governments, government agencies and supra-nationals. The Fund may invest more than 50% of its assets in below investment grade securities (as measured by Standard & Poor’s or any other equivalent credit rating agencies) or in unrated securities. 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 achieving investment gains, reducing risk or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). The Fund may use leverage and take short positions. Fund characteristics The Fund’s performance should be assessed against its target benchmark of 3 month GBP LIBOR (or an equivalent reference rate) and compared against the Investment Association Strategic Bond sector average return. The target benchmark has been selected because the target return of the Fund is to deliver or exceed the return of that benchmark as stated in the investment objective. The comparator benchmarks have been selected because the Investment Adviser and the ACD believe that this benchmark is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder Strategic Credit Fund Final Report and Accounts 128 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Fund Manager: shares on a dealing price basis rose 4.23%. In the same period, the three Peter Harvey month LIBOR generated a total return of 0.29%1. Corporate bonds performed well over the year, recovering strongly from the violent sell-off seen in March at the height of the Covid-19 crisis. The subsequent massive policy response from central banks and governments resulted in a forceful recovery in financial markets as well as stabilisation and some modest recovery in economies. Later in the year, sentiment was further boosted by the emergence of successful Covid-19 vaccines and a decisive outcome to the US election. The UK and EU reached an agreement on trade. Investment grade credit outperformed high yield globally, though the euro market was the exception to this. Peter joined Schroders in July 2013 following the acquisition The portfolio generated a positive total return for the year, exceeding its target. The of Cazenove Capital decisions in March to increase risk, though spread duration, and reduce some short-dated investment grade ballast proved correct and improved returns in H2. The Fund’s strongest Having joined Cazenove Capital in 2005, where he was head performance came in Q4 predominantly, found in the financial services, insurance, of the European credit team, Peter is now part of the London automotives and leisure sectors. The latter is clearly a beneficiary of vaccines and economic based fixed income team at Schroders normalisation. He has 29 years’ experience analysing and investing in We expect economic recovery in 2021, helped by vaccines, fiscal largesse and monetary corporate debt stimulus. This wider economic growth will likely fuel a concurrent recovery in corporate Peter studied management and international relations at St profits. While company leverage has risen back to 2008 levels, we believe the average Andrews University high yield net debt/EBITDA ratio will peak in the first half of 2021, with some modest de- leveraging in the second half of the year. After a strong end to 2020, the European high yield market is fully valued. Low interest rates encourage investors towards corporate bonds of all types, which together with central bank buying, should give a firm underpinning to the market.

Schroder Strategic Credit Fund Final Report and Accounts 129 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

The risk category is based upon the Fund’s risk target and there is no guarantee that the Fund will achieve it. 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 Strategic Credit Fund Final Report and Accounts 130 31 December 2020 Comparative Table

A Accumulation shares A Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 170.86 158.41 161.51 88.70 85.86 91.35 Return before operating charges* 7.89 14.38 (1.21) 3.98 7.75 (0.67) Operating charges (1.96) (1.93) (1.89) (1.01) (1.04) (1.06) Return after operating charges* 5.93 12.45 (3.10) 2.97 6.71 (1.73)

Distributions1 (7.56) (7.21) (6.72) (3.88) (3.87) (3.76) Retained distributions1 7.56 7.21 6.72 – – – Closing net asset value 176.79 170.86 158.41 87.79 88.70 85.86

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 3.47 7.86 (1.92) 3.35 7.82 (1.89) – – – – – – Other information

Closing net asset value (£000's) 16,627 18,362 17,350 1,156 1,435 2,008 Closing number of shares 9,404,707 10,747,342 10,952,688 1,316,717 1,617,467 2,338,428 Operating charges (%) 1.16 1.17 1.16 1.16 1.17 1.16 – – – – – – Prices

Highest dealing price 177.96p 171.40p 162.90p 90.28p 90.97p 91.94p Lowest dealing price 147.54p 158.60p 158.80p 76.60p 85.98p 87.95p

Schroder Strategic Credit Fund Final Report and Accounts 131 31 December 2020 Comparative Table (continued)

C Accumulation shares C Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 175.30 162.12 167.46 91.53 88.37 93.78 Return before operating charges* 8.14 14.73 (3.82) 4.12 7.98 (0.68) Operating charges (1.39) (1.55) (1.52) (0.72) (0.84) (0.86) Return after operating charges* 6.75 13.18 (5.34) 3.40 7.14 (1.54)

Distributions1 (7.77) (7.39) (6.87) (4.01) (3.98) (3.87) Retained distributions1 7.77 7.39 6.87 – – – Closing net asset value 182.05 175.30 162.12 90.92 91.53 88.37

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 3.85 8.13 (3.19) 3.71 8.08 (1.64) – – – – – – Other information

Closing net asset value (£000's) 1,464 1,648 1,745 2,133 3,963 5,020 Closing number of shares 804,126 940,154 1,076,371 2,345,759 4,330,148 5,681,158 Operating charges (%) 0.76 0.92 0.91 0.76 0.92 0.91 – – – – – – Prices

Highest dealing price 183.25p 175.90p 166.60p 93.50p 93.86p 94.41p Lowest dealing price 151.46p 162.30p 162.50p 79.09p 88.50p 90.51p

Schroder Strategic Credit Fund Final Report and Accounts 132 31 December 2020 Comparative Table (continued)

D Accumulation shares D Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 60.69 55.96 56.74 46.99 45.23 47.85 Return before operating charges* 2.83 5.09 (0.43) 2.11 4.09 (0.35) Operating charges (0.37) (0.36) (0.35) (0.28) (0.29) (0.29) Return after operating charges* 2.46 4.73 (0.78) 1.83 3.80 (0.64)

Distributions1 (2.68) (2.55) (2.37) (2.06) (2.04) (1.98) Retained distributions1 2.68 2.55 2.37 – – – Closing net asset value 63.15 60.69 55.96 46.76 46.99 45.23

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 4.05 8.45 (1.37) 3.89 8.40 (1.34) – – – – – – Other information

Closing net asset value (£000's) 1 590 493 3,497 24,464 22,884 Closing number of shares 2,000 971,632 880,563 7,478,380 52,061,933 50,592,560 Operating charges (%) 0.62 0.62 0.61 0.62 0.62 0.61 – – – – – – Prices

Highest dealing price 63.57p 60.88p 57.46p 48.09p 48.19p 48.18p Lowest dealing price 52.47p 56.04p 56.06p 40.63p 45.30p 46.32p

Schroder Strategic Credit Fund Final Report and Accounts 133 31 December 2020 Comparative Table (continued)

L Accumulation shares L Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 181.64 167.57 169.99 94.78 91.28 96.62 Return before operating charges* 8.46 15.24 (1.28) 4.28 8.25 (0.71) Operating charges (1.20) (1.17) (1.14) (0.62) (0.63) (0.64) Return after operating charges* 7.26 14.07 (2.42) 3.66 7.62 (1.35)

Distributions1 (8.06) (7.64) (7.09) (4.16) (4.12) (3.99) Retained distributions1 8.06 7.64 7.09 – – – Closing net asset value 188.90 181.64 167.57 94.28 94.78 91.28

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 4.00 8.40 (1.42) 3.86 8.35 (1.40) – – – – – – Other information

Closing net asset value (£000's) 249,752 158,655 159,041 343,628 546,831 535,159 Closing number of shares 132,215,954 87,344,460 94,910,960 364,477,441 576,940,412 586,294,331 Operating charges (%) 0.66 0.67 0.66 0.66 0.67 0.66 – – – – – – Prices

Highest dealing price 190.15p 182.20p 172.10p 96.96p 97.20p 97.28p Lowest dealing price 157.03p 167.80p 167.90p 81.94p 91.41p 93.47p

Schroder Strategic Credit Fund Final Report and Accounts 134 31 December 2020 Comparative Table (continued)

S Accumulation shares S Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 175.14 161.25 163.25 48.24 46.36 48.98 Return before operating charges* 8.16 14.68 (1.24) 2.18 4.20 (0.36) Operating charges (0.80) (0.79) (0.76) (0.22) (0.22) (0.23) Return after operating charges* 7.36 13.89 (2.00) 1.96 3.98 (0.59)

Distributions1 (7.78) (7.36) (6.82) (2.12) (2.10) (2.03) Retained distributions1 7.78 7.36 6.82 – – – Closing net asset value 182.50 175.14 161.25 48.08 48.24 46.36

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 4.20 8.61 (1.23) 4.06 8.58 (1.20) – – – – – – Other information

Closing net asset value (£000's) 38,756 56,326 62,351 92,476 166,999 206,659 Closing number of shares 21,236,832 32,160,464 38,667,793 192,329,378 346,178,228 445,730,635 Operating charges (%) 0.46 0.47 0.46 0.46 0.47 0.46 – – – – – – Prices

Highest dealing price 183.70p 175.70p 165.50p 49.45p 49.47p 49.32p Lowest dealing price 151.48p 161.50p 161.50p 41.73p 46.43p 47.47p

Schroder Strategic Credit Fund Final Report and Accounts 135 31 December 2020 Comparative Table (continued)

Z Accumulation shares Z Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 60.52 55.88 56.75 47.31 45.61 48.33 Return before operating charges* 2.80 5.09 (0.43) 2.13 4.12 (0.35) Operating charges (0.45) (0.45) (0.44) (0.35) (0.36) (0.37) Return after operating charges* 2.35 4.64 (0.87) 1.78 3.76 (0.72)

Distributions1 (2.68) (2.55) (2.37) (2.07) (2.06) (2.00) Retained distributions1 2.68 2.55 2.37 – – – Closing net asset value 62.87 60.52 55.88 47.02 47.31 45.61

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) 3.88 8.30 (1.53) 3.76 8.24 (1.49) – – – – – – Other information

Closing net asset value (£000's) 28,322 69,585 64,964 12,027 12,304 11,357 Closing number of shares 45,049,320 114,982,700 116,246,710 25,580,469 26,004,102 24,900,656 Operating charges (%) 0.76 0.77 0.76 0.76 0.77 0.76 – – – – – – Prices

Highest dealing price 63.28p 60.71p 57.41p 48.35p 48.52p 48.66p Lowest dealing price 52.31p 55.96p 55.99p 40.90p 45.68p 46.71p

1 These figures have been rounded to 2 decimal places. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 Strategic Credit Fund Final Report and Accounts 136 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets

Corporate Bonds 95.34% (97.90%) Louvre Bidco FRN 5.375% 30/09/2024 688,000 624 0.08 Australia 0.00% (1.00%) Altice France 2.5% Austria 0.95% (0.07%) 15/01/2025 2,659,000 2,331 0.29 Wienerberger 2.75% Air France-KLM 04/06/2025 700,000 665 0.08 1.875% 16/01/2025 1,200,000 953 0.12 ams 6% 31/07/2025 2,797,000 2,650 0.34 Altice France 2.125% Sappi Papier 15/02/2025 3,505,000 3,020 0.38 Holding 7.5% Constantin 15/06/2032 1,000,000 703 0.09 Investissement 3 Lenzing FRN 5.75% 5.375% 15/04/2025 831,000 756 0.10 Perpetual 3,800,000 3,472 0.44 La Financiere Atalian 6.625% 7,490 0.95 15/05/2025 6,763,000 6,252 0.79 Bermuda 0.78% (1.03%) Novafives FRN 4.5% Digicel 6.75% 15/06/2025 2,079,000 1,619 0.20 01/03/2023 1,150,000 651 0.08 Parts Europe 6.5% Hiscox FRN 6.125% 16/07/2025 2,985,000 2,781 0.35 24/11/2045 4,728,000 5,486 0.70 SPCM 4.875% 6,137 0.78 15/09/2025 4,604,000 3,473 0.44 Altice France 7.375% Canada 0.39% (2.37%) 01/05/2026 1,000,000 770 0.10 Bausch Health 7% Altice France 7.375% 15/03/2024 3,780,000 2,845 0.36 01/05/2026 (Private Bausch Health 5.5% Placement) 16,764,000 12,908 1.63 01/11/2025 330,000 250 0.03 Casino Guichard 3,095 0.39 Perrachon 4.048% 05/08/2026 900,000 711 0.09 Cayman Islands 0.36% (0.41%) Altice France 5.125% Global Aircraft 15/01/2029 1,016,000 762 0.10 Leasing 6.5% Altice France 4.125% 15/09/2024 1,999,962 1,306 0.17 15/01/2029 344,000 314 0.04 Seagate HDD Caisse Nationale Cayman 3.125% de Reassurance 15/07/2029 2,097,000 1,534 0.19 Mutuelle Agricole 2,840 0.36 Groupama FRN 6.375% Perpetual 4,200,000 4,328 0.55 Czech Republic 0.00% (0.66%) Electricite de France Denmark 0.57% (0.73%) FRN 6% Perpetual 1,000,000 1,139 0.14 DKT Finance 9.375% 56,077 7.10 17/06/2023 5,998,000 4,519 0.57 Germany 8.33% (4.70%) 4,519 0.57 Safari Verwaltungs Finland 0.00% (0.22%) 5.375% 30/11/2022 3,274,000 2,791 0.35 France 7.10% (5.59%) thyssenkrupp 1.875% 06/03/2023 3,496,000 3,123 0.40 Parts Europe FRN 4.375% 01/05/2022 4,208,777 3,759 0.48 Deutsche Bank 3.875% 12/02/2024 3,400,000 3,680 0.47 Casino Guichard Perrachon 1.865% Schaeffler 1.875% 13/06/2022 800,000 723 0.09 26/03/2024 1,514,000 1,396 0.18 Burger King Adler Pelzer Holding France FRN 5.25% 4.125% 01/04/2024 500,000 416 0.05 01/05/2023 4,150,000 3,732 0.47 Nidda Healthcare Quatrim 5.875% Holding 3.5% 15/01/2024 658,000 610 0.08 30/09/2024 12,487,000 11,159 1.41 Casino Guichard Deutsche Bank Perrachon 4.498% 2.625% 16/12/2024 800,000 843 0.11 07/03/2024 2,500,000 2,177 0.28 Tele Columbus Burger King France 3.875% 02/05/2025 2,492,000 2,235 0.28 6% 01/05/2024 1,540,000 1,402 0.18 IHO Verwaltungs La Financiere Atalian 3.625% 15/05/2025 4,938,000 4,502 0.57 4% 15/05/2024 970,000 800 0.10 Techem Verwal- Louvre Bidco 4.25% tungsgesellschaft 30/09/2024 150,000 133 0.02 675 2% 15/07/2025 1,013,000 901 0.11

Schroder Strategic Credit Fund Final Report and Accounts 137 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets

ZF Finance 3% Isle of Man 0.86% (0.62%) 21/09/2025 600,000 554 0.07 Playtech 3.75% Peach Property 12/10/2023 7,512,000 6,811 0.86 Finance 4.375% 6,811 0.86 15/11/2025 5,675,000 5,300 0.67 Deutsche Bank FRN Italy 5.89% (4.88%) 1% 19/11/2025 300,000 273 0.03 Autostrade per WEPA l'Italia 6.25% Hygieneprodukte 09/06/2022 4,555,000 4,808 0.61 FRN 2.875% Almaviva-The Italian 15/12/2026 5,963,000 5,340 0.68 Innovation 7.25% Cheplapharm 15/10/2022 3,547,000 3,230 0.41 Arzneimittel 3.5% TeamSystem FRN 11/02/2027 8,673,000 7,783 0.98 4% 15/04/2023 2,985,000 2,675 0.34 IHO Verwaltungs 6% Sisal Group 7% 15/05/2027 2,300,000 1,783 0.23 31/07/2023 459,250 415 0.05 IHO Verwaltungs Limacorporate FRN FRN 3.875% 3.75% 15/08/2023 6,678,000 5,905 0.75 15/05/2027 840,000 780 0.10 Guala Closures FRN WEPA 3.5% 15/04/2024 4,965,000 4,439 0.56 Hygieneprodukte 2.875% 15/12/2027 666,000 603 0.08 Banca IFIS 1.75% 25/06/2024 1,638,000 1,425 0.18 Cheplapharm Arzneimittel 5.5% Bormioli Pharma 15/01/2028 1,095,000 833 0.11 FRN 3.5% 15/11/2024 6,797,000 5,920 0.75 ZF Finance 3.75% 21/09/2028 700,000 672 0.08 Fabric BC FRN 4.125% 30/11/2024 854,000 761 0.10 Schaeffler 3.375% 12/10/2028 1,000,000 985 0.12 Banca Monte dei Paschi di Siena EnBW Energie 1.875% 09/01/2026 1,403,000 1,244 0.16 Baden-Wuerttem- berg FRN 5.125% EVOCA FRN 4.25% 05/04/2077 9,596,000 7,264 0.92 01/11/2026 1,453,000 1,216 0.15 Commerzbank FRN Banca IFIS FRN 4.5% 6.125% Perpetual 800,000 764 0.10 17/10/2027 1,095,000 924 0.12 Commerzbank FRN Sofima Holding FRN 6.5% Perpetual 1,800,000 1,821 0.23 4% 15/01/2028 706,000 637 0.08 65,801 8.33 Autostrade per l'Italia 2% Guernsey 0.55% (0.12%) 04/12/2028 1,538,000 1,380 0.17 Summit Properties Enel FRN 8.75% 2% 31/01/2025 4,984,000 4,368 0.55 24/09/2073 3,906,000 3,337 0.42 4,368 0.55 Assicurazioni Generali FRN 6.269% Ireland 2.15% (2.48%) Perpetual 2,600,000 2,925 0.37 James Hardie Assicurazioni International Generali FRN 6.416% Finance 3.625% Perpetual 1,500,000 1,570 0.20 01/10/2026 2,321,000 2,139 0.27 Assicurazioni C&W Senior Generali FRN 4.596% Financing 7.5% Perpetual 850,000 854 0.11 15/10/2026 2,590,000 2,016 0.26 UnipolSai Bank of Ireland Assicurazioni FRN Group FRN 3.125% 6.375% Perpetual 2,889,000 2,814 0.36 19/09/2027 1,291,000 1,311 0.17 46,479 5.89 Virgin Media Vendor Financing Notes III Jersey 2.91% (3.25%) 4.875% 15/07/2028 7,810,000 7,966 1.01 LHC3 4.125% Roadster Finance 15/08/2024 8,693,828 7,918 1.00 1.625% 09/12/2029 3,593,000 3,262 0.41 Galaxy Bidco 6.5% Aryzta Euro Finance 31/07/2026 5,991,000 6,249 0.79 FRN 4.5% Perpetual 300,000 255 0.03 CPUK Finance 16,949 2.15 7.239% 28/02/2042 1,200,000 1,392 0.18 AA Bond 4.875% 31/07/2043 1,441,000 1,486 0.19

Schroder Strategic Credit Fund Final Report and Accounts 138 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets AA Bond 2.875% Petroleos Mexicanos 31/07/2043 1,135,000 1,133 0.14 3.75% 16/11/2025 2,719,000 2,565 0.32 AA Bond 2.75% Cemex 7.375% 31/07/2043 700,000 685 0.09 05/06/2027 530,000 441 0.06 AA Bond 5.5% Petroleos Mexicanos 31/07/2043 1,408,000 1,364 0.17 5.35% 12/02/2028 599,000 434 0.05 CPUK Finance 4.25% 9,650 1.22 28/02/2047 572,917 574 0.07 AA Bond 5.5% Netherlands 8.57% (12.37%) 31/07/2050 2,065,000 2,177 0.28 Teva Pharmaceutical Finance Netherlands 22,978 2.91 II 1.25% 31/03/2023 794,000 685 0.09 Luxembourg 6.62% (5.79%) Teva Pharmaceutical Cirsa Finance Finance Netherlands International 6.25% III 2.8% 21/07/2023 2,568,000 1,860 0.24 20/12/2023 834,000 742 0.09 Promontoria Gazprom 4.25% Holding 264 6.75% 06/04/2024 4,030,000 4,272 0.54 15/08/2023 2,368,000 1,959 0.25 ADLER Group 1.5% Promontoria 26/07/2024 6,400,000 5,620 0.71 Holding 264 FRN 6.25% 15/08/2023 1,095,000 897 0.11 Vivion Investments 3% 08/08/2024 7,800,000 6,430 0.81 Teva Pharmaceutical Finance Netherlands Matterhorn Telecom III 6% 15/04/2024 5,761,000 4,483 0.57 2.625% 15/09/2024 2,270,000 2,050 0.26 Teva Pharmaceutical Hidrovias Finance International Netherlands II Finance 5.95% 1.125% 15/10/2024 1,174,000 974 0.12 24/01/2025 3,100,000 2,381 0.30 OI European Group Hidrovias 3.125% 15/11/2024 550,000 509 0.07 International Finance 5.95% Teva Pharmaceutical 24/01/2025 1,547,000 1,188 0.15 Finance Netherlands II 4.5% 01/03/2025 2,606,000 2,408 0.31 Stena International 6.125% 01/02/2025 250,000 181 0.02 Kongsberg Actuation Systems ADLER Group 3.25% 5% 15/07/2025 2,290,000 1,926 0.24 05/08/2025 3,000,000 2,795 0.35 Phoenix PIB Dutch Rossini FRN 3.875% Finance 2.375% 30/10/2025 5,468,000 4,870 0.62 05/08/2025 4,100,000 3,753 0.48 Garfunkelux Holdco Intertrust Group 3 7.75% 01/11/2025 2,128,000 2,185 0.28 3.375% 15/11/2025 2,455,000 2,241 0.28 Vivion Investments IPD 3 5.5% 3.5% 01/11/2025 200,000 167 0.02 01/12/2025 4,570,000 4,213 0.53 CPI Property Group IPD 3 FRN 4.978% 2.75% 12/05/2026 1,342,000 1,302 0.17 01/12/2025 2,202,000 1,981 0.25 Matterhorn Telecom ZF Europe Finance 3.125% 15/09/2026 6,814,000 6,038 0.76 2% 23/02/2026 3,400,000 3,005 0.38 ADLER Group 2.75% Q-Park Holding I 13/11/2026 1,200,000 1,100 0.14 FRN 2% 01/03/2026 3,296,000 2,852 0.36 CPI Property Group Trivium Packaging 2.75% 22/01/2028 3,106,000 3,197 0.41 Finance 5.5% Eurofins Scientific 15/08/2026 4,595,000 3,555 0.45 FRN 4.875% Teva Pharmaceutical Perpetual 3,274,000 3,143 0.40 Finance Netherlands Eurofins Scientific III 3.15% 01/10/2026 1,149,000 808 0.10 FRN 3.25% Ziggo 5.5% Perpetual 4,988,000 4,637 0.59 15/01/2027 10,879,000 8,307 1.05 52,298 6.62 Achmea FRN 6% 04/04/2043 6,789,000 6,811 0.86 Mexico 1.22% (0.74%) Koninklijke KPN FRN Petroleos Mexicanos 7% 28/03/2073 14,937,000 11,501 1.46 8.25% 02/06/2022 4,865,000 5,190 0.66 Koninklijke KPN FRN Total Play Teleco- 7% 28/03/2073 1,800,000 1,373 0.17 municaciones 7.5% 12/11/2025 1,403,000 1,020 0.13 Achmea FRN 4.25% Perpetual 1,060,000 1,043 0.13

Schroder Strategic Credit Fund Final Report and Accounts 139 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets ELM BV for Intrum 4.875% Firmenich 15/08/2025 3,893,000 3,598 0.45 International FRN Intrum 3.5% 3.75% Perpetual 592,000 572 0.07 15/07/2026 2,019,000 1,789 0.23 67,716 8.57 Heimstaden Bostad FRN 3.248% Norway 1.74% (1.36%) Perpetual 2,372,000 2,182 0.28 Aker BP 4.75% 17,162 2.17 15/06/2024 1,696,000 1,284 0.16 Aker BP 5.875% Switzerland 0.77% (1.67%) 31/03/2025 5,677,000 4,302 0.55 Credit Suisse Aker BP 5.875% Group FRN 2.125% 31/03/2025 (Private 12/09/2025 498,000 522 0.07 Placement) 3,570,000 2,705 0.34 Aryzta FRN 5.227% Adevinta 2.625% Perpetual 5,610,000 3,986 0.50 15/11/2025 4,170,000 3,815 0.49 Credit Suisse Adevinta 3% Group FRN 7.125% 15/11/2027 1,721,000 1,592 0.20 Perpetual 1,850,000 1,430 0.18 13,698 1.74 Credit Suisse Group FRN 7.5% Perpetual 217,000 173 0.02 Portugal 0.21% (0.00%) 6,111 0.77 Galp Energia 2% 15/01/2026 1,800,000 1,660 0.21 United Kingdom 36.14% (36.22%) 1,660 0.21 Jaguar Land Rover Automotive 2.75% Spain 2.00% (2.60%) 24/01/2021 2,360,000 2,355 0.30 International Investec 4.5% Consolidated 05/05/2022 2,991,000 3,125 0.40 Airlines Group 0.5% FCE Bank 2.727% 04/07/2023 1,300,000 1,073 0.13 03/06/2022 1,450,000 1,464 0.19 NH Hotel Group Thames Water 3.75% 01/10/2023 10,099,885 8,833 1.12 Kemble Finance Grupo Antolin- 5.875% 15/07/2022 900,000 935 0.12 Irausa 3.25% IDH Finance 6.25% 30/04/2024 5,300,000 4,673 0.59 15/08/2022 2,002,000 1,902 0.24 Grifols 1.625% GKN Holdings 15/02/2025 1,389,000 1,243 0.16 5.375% 19/09/2022 2,230,000 2,354 0.30 15,822 2.00 Moto Finance 4.5% 01/10/2022 1,150,000 1,115 0.14 Supranational 0.56% (0.00%) Very Group Funding Ardagh Packaging 7.75% 15/11/2022 835,000 846 0.11 Finance 6% 15/02/2025 600,000 455 0.06 Algeco Global Finance 6.5% Clarios Global 15/02/2023 6,067,000 5,498 0.70 4.375% 15/05/2026 1,850,000 1,715 0.22 Algeco Global Clarios Global 6.25% Finance FRN 6.25% 15/05/2026 687,000 539 0.07 15/02/2023 3,354,000 2,991 0.38 Ardagh Packaging Jaguar Land Rover Finance 4.125% Automotive 3.875% 15/08/2026 1,540,000 1,177 0.15 01/03/2023 2,301,000 2,232 0.28 Ardagh Packaging BUPA Finance 5% Finance 2.125% 25/04/2023 1,450,000 1,578 0.20 15/08/2026 559,000 501 0.06 Voyage Care 4,387 0.56 BondCo 5.875% 01/05/2023 6,970,000 6,914 0.88 Sweden 2.17% (2.42%) Thames Water Polygon 4% Utilities Finance 23/02/2023 6,200,000 5,577 0.71 2.375% 03/05/2023 584,000 590 0.07 Verisure Holding William Hill 4.875% 3.5% 15/05/2023 1,158,000 1,048 0.13 07/09/2023 1,797,000 1,907 0.24 Dometic Group 3% Ladbrokes Group 13/09/2023 1,330,000 1,238 0.16 Finance 5.125% Verisure Holding 08/09/2023 7,380,000 7,675 0.97 FRN 5% 15/04/2025 1,162,000 1,065 0.13 Natwest Group Unilabs Subholding 3.875% 12/09/2023 3,010,000 2,389 0.30 5.75% 15/05/2025 728,000 665 0.08

Schroder Strategic Credit Fund Final Report and Accounts 140 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Arqiva Broadcast Anglian Water Finance 6.75% Osprey Financing 30/09/2023 9,142,000 9,425 1.19 4% 08/03/2026 970,000 971 0.12 Miller Homes Group INEOS Finance Holdings FRN 3.375% 31/03/2026 1,600,000 1,475 0.19 5.296% 15/10/2023 1,070,366 1,069 0.13 INEOS Finance Jerrold Finco 6.125% 2.875% 01/05/2026 1,394,000 1,263 0.16 15/01/2024 1,067,000 1,067 0.13 William Hill 4.75% Barclays 3.125% 01/05/2026 4,616,000 5,108 0.65 17/01/2024 3,449,000 3,666 0.46 TSB Banking Heathrow Finance Group FRN 5.75% 5.25% 01/03/2024 3,511,000 3,649 0.46 06/05/2026 4,170,000 4,222 0.53 Saga 3.375% Marks & Spencer 12/05/2024 6,197,000 5,648 0.71 3.75% 19/05/2026 929,000 948 0.12 Co-Operative Group Thames Water 5.125% 17/05/2024 1,178,000 1,250 0.16 Kemble Finance Arrow Global 4.625% 19/05/2026 1,300,000 1,313 0.17 Finance 5.125% Merlin 15/09/2024 4,800,000 4,780 0.60 Entertainments Viridian Group 5.75% 15/06/2026 13,979,000 10,735 1.36 FinanceCo 4.75% Informa 3.125% 15/09/2024 5,876,000 5,935 0.75 05/07/2026 2,029,000 2,156 0.27 Miller Homes Group Virgin Money UK Holdings 5.5% FRN 4% 25/09/2026 4,564,000 4,983 0.63 15/10/2024 6,455,000 6,623 0.84 BUPA Finance 5% eG Global Finance 08/12/2026 800,000 939 0.12 4.375% 07/02/2025 4,461,000 3,921 0.50 Intermediate Capital eG Global Finance Group 1.625% 6.75% 07/02/2025 6,529,000 4,920 0.62 17/02/2027 2,215,000 1,996 0.25 TalkTalk Telecom Virgin Media Group 3.875% Secured Finance 5% 20/02/2025 9,536,000 9,293 1.18 15/04/2027 600,000 628 0.08 Neptune Energy Phoenix Group Bondco 6.625% Holdings 5.375% 15/05/2025 (Private 06/07/2027 933,000 771 0.10 Placement) 2,682,000 1,941 0.25 Rolls-Royce 5.75% Neptune Energy 15/10/2027 3,482,000 3,848 0.49 Bondco 6.625% Rolls-Royce 5.75% 15/05/2025 2,511,000 1,817 0.23 15/10/2027 (Private Virgin Money Placement) 470,000 381 0.05 UK FRN 3.125% Sainsbury's Bank 22/06/2025 2,140,000 2,222 0.28 FRN 6% 23/11/2027 4,916,000 5,056 0.64 Synlab Bondco FRN Quilter FRN 4.478% 4.829% 01/07/2025 5,372,000 4,903 0.62 28/02/2028 11,632,000 12,068 1.53 Synthomer 3.875% Intu SGS Finance 01/07/2025 1,018,000 954 0.12 REIT 3.875% Tesco Personal 17/03/2028 2,003,000 1,142 0.14 Finance Group 3.5% Grainger 3.375% 25/07/2025 1,893,000 2,029 0.26 24/04/2028 2,065,000 2,295 0.29 Stonegate Pub Co. Metro Bank FRN Financing 2019 5.5% 26/06/2028 1,560,000 967 0.12 8.25% 31/07/2025 900,000 911 0.11 Investec Bank FRN Pinewood Finance 4.25% 24/07/2028 1,047,000 1,083 0.14 3.25% 30/09/2025 11,686,000 11,896 1.51 InterContinental eG Global Finance Hotels Group 6.25% 30/10/2025 391,000 359 0.05 3.375% 08/10/2028 835,000 917 0.12 eG Global Finance Rl Finance Bonds 8.5% 30/10/2025 805,000 627 0.08 No. 3 6.125% Phoenix Group 13/11/2028 2,045,000 2,582 0.33 Holdings 6.625% Vmed O2 UK 18/12/2025 2,232,000 2,678 0.34 Financing I 4% Jerrold Finco 4.875% 31/01/2029 2,275,000 2,322 0.29 15/01/2026 5,896,000 5,824 0.74 Phoenix Group Travis Perkins 3.75% Holdings 5.867% 17/02/2026 1,445,000 1,499 0.19 13/06/2029 2,488,000 3,046 0.39

Schroder Strategic Credit Fund Final Report and Accounts 141 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Liberty Living Natwest Group FRN Finance 3.375% 2.574% Perpetual 8,700,000 6,141 0.78 28/11/2029 689,000 762 0.10 Natwest Group FRN Pearson Funding 5.125% Perpetual 300,000 313 0.04 3.75% 04/06/2030 1,357,000 1,561 0.20 SSE FRN 3.74% Grainger 3% Perpetual 2,357,000 2,488 0.31 03/07/2030 2,190,000 2,386 0.30 285,431 36.14 Virgin Money UK FRN 5.125% United States of America 4.50% (6.60%) 11/12/2030 3,868,000 4,146 0.52 MPT Operating Phoenix Group Partnership REIT Holdings 5.625% 2.55% 05/12/2023 5,349,000 5,431 0.69 28/04/2031 1,586,000 1,954 0.25 Ford Motor Credit Pension Insurance 5.584% 18/03/2024 1,350,000 1,065 0.13 4.625% 07/05/2031 700,000 828 0.10 Mauser Packaging Direct Line Solutions Holding Insurance Group 4% 4.75% 15/04/2024 4,086,000 3,656 0.46 05/06/2032 487,000 568 0.07 Ford Motor Credit Telereal 2.748% 14/06/2024 1,502,000 1,500 0.19 Securitisation FRN Tenet Healthcare 4.09% 10/12/2033 499,000 506 0.06 4.625% 15/07/2024 1,094,000 820 0.10 Telereal Ford Motor Credit Securitisation FRN 4.535% 06/03/2025 3,784,000 4,008 0.51 0.777% 10/12/2033 2,050,000 1,743 0.22 Netflix 3% BUPA Finance 15/06/2025 1,526,000 1,460 0.18 4.125% 14/06/2035 680,000 787 0.10 Netflix 3.625% Aviva FRN 6.125% 15/06/2025 934,000 732 0.09 14/11/2036 2,300,000 2,835 0.36 Refinitiv US Tesco 6.15% Holdings 4.5% 15/11/2037 1,726,000 1,628 0.21 15/05/2026 1,747,000 1,644 0.21 Tesco 6.15% Refinitiv US 15/11/2037 400,000 377 0.05 Holdings 6.25% RL Finance Bonds 15/05/2026 874,000 683 0.09 No. 2 FRN 6.125% MPT Operating 30/11/2043 8,487,000 9,569 1.21 Partnership REIT M&G FRN 3.875% 5.25% 01/08/2026 4,013,000 3,074 0.39 20/07/2049 692,000 732 0.09 Kraft Heinz Foods Aviva FRN 4.375% 3.875% 15/05/2027 4,656,000 3,670 0.46 12/09/2049 800,000 928 0.12 Sotheby's 7.375% Dignity Finance, 15/10/2027 1,990,000 1,559 0.20 Series B 4.696% Springleaf Funding 31/12/2049 6,316,000 5,083 0.64 Trust 5.875% Aviva FRN 5.125% 15/10/2027 1,376,000 1,088 0.14 04/06/2050 900,000 1,094 0.14 Frontier Legal & General Communications 5% Group FRN 4.5% 01/05/2028 700,000 534 0.07 01/11/2050 2,000,000 2,306 0.29 MPT Operating SSE FRN 3.625% Partnership REIT 16/09/2077 3,832,000 3,939 0.50 3.692% 05/06/2028 2,467,000 2,664 0.34 SSE FRN 4.75% British Airways 16/09/2077 3,516,000 2,669 0.34 Pass-Through Trust Vodafone Group 4.25% 15/05/2034 517,000 405 0.05 FRN 6.25% Energy Transfer 03/10/2078 3,600,000 2,911 0.37 Operating FRN Barclays Bank FRN 6.25% Perpetual 2,694,000 1,567 0.20 5.33% Perpetual 637,000 639 0.08 35,560 4.50 BP Capital Markets Corporate Bonds total 753,039 95.34 FRN 4.25% Perpetual 3,890,000 4,174 0.53 Convertible Bonds 1.13% (0.34%) BP Capital Markets FRN 4.375% Austria 0.05% (0.00%) Perpetual 1,713,000 1,341 0.17 ams 2.13% Lloyds Banking 03/11/2027 400,000 358 0.05 Group FRN 7.875% 358 0.05 Perpetual 2,455,000 3,032 0.38

Schroder Strategic Credit Fund Final Report and Accounts 142 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets

Jersey 0.06% (0.30%) Credit Default Swap J.P. Morgan Intu Jersey 2 REIT Buy Jaguar Land 2.88% 01/11/2022 2,500,000 462 0.06 Rover Automotive 462 0.06 5% 15/02/2022 20/12/2021 933,864 (8) 0.00 Luxembourg 0.12% (0.00%) Credit Default ADLER Group 2% Swap Goldman 23/11/2023 1,100,000 959 0.12 Sachs Buy United 959 0.12 Mexican States 4.15% 28/03/2027 Spain 0.14% (0.04%) 20/06/2025 453,646 (4) 0.00 International Credit Default Swap Consolidated Goldman Sachs Airlines Group Buy Novafives 0.63% 17/11/2022 1,400,000 1,140 0.14 5% 15/06/2025 1,140 0.14 20/06/2025 872,805 72 0.01 Credit Default United Kingdom 0.76% (0.00%) Swap BNP Paribas J Sainsbury FRN Buy Enel 5.25% 2.88% Perpetual 5,900,000 6,027 0.76 20/05/2024 20/06/2025 1,340,087 (25) 0.00 6,027 0.76 Credit Default Swap Convertible Bonds total 8,946 1.13 Morgan Stanley Buy ITRAXX.EUROPE. Forward Foreign Currency Contracts 0.30% (0.72%) CROSSOVER.34-V1 20/12/2025 4,184,211 (445) (0.06) Buy EUR 14,318,205 Sell GBP 12,835,330 27/01/2021 46 0.01 Credit Default Swap Barclays Buy United Buy EUR 7,983,715 Mexican States Sell GBP 7,312,169 27/01/2021 (129) (0.02) 4.15% 28/03/2027 Buy USD 15,181,570 20/12/2025 3,384,657 (23) 0.00 Sell GBP 11,376,672 27/01/2021 (256) (0.03) Credit Default Sell CHF 4,635,558 Swap BNP Paribas Buy GBP 3,836,016 27/01/2021 (22) 0.00 Sell Jaguar Land Sell EUR 13,316,794 Rover Automotive Buy GBP 12,077,825 27/01/2021 97 0.01 5% 15/02/2022 20/06/2021 76,805 0 0.00 Sell EUR 343,605,421 Buy GBP 307,376,295 27/01/2021 (1,759) (0.22) Credit Default Swap Citigroup Sell USD 222,847,283 Sell Jaguar Land Buy GBP 167,627,970 27/01/2021 4,387 0.55 Rover Automotive Forward Foreign Currency Contracts 5% 15/02/2022 total 2,364 0.30 20/06/2021 1,000,000 7 0.00 Credit Default Equities 0.17% (0.19%) Swap J.P. Morgan United States of America 0.17% (0.19%) Sell Deutsche Bank Energy Transfer 0% 07/12/2020 Operating 20/12/2021 1,560,000 8 0.00 Preference FRN Credit Default 7.6% 83,012 1,370 0.17 Swap Citigroup Sell Galp Energia 1,370 0.17 4.125% 25/01/2019 Equities total 1,370 0.17 20/12/2021 666,667 28 0.00 Credit Default Futures (0.01)% (0.02%) Swap Citigroup Euro-Bobl March Sell Rolls-Royce 2021 (70) 7 0.00 6.75% 30/04/2019 20/12/2021 1,400,000 (9) 0.00 Long Gilt March 2021 (91) (128) (0.01) Credit Default Swap J.P. Morgan Futures total (121) (0.01) Sell Vale Overseas 8.25% 17/01/2034 Swaps 0.00% ((0.02)%) 20/12/2021 2,000,000 12 0.00 Credit Default Credit Default Swap Barclays Swap Barclays Buy Jaguar Land Sell Novafives Rover Automotive 4.5% 30/06/2021 5% 15/02/2022 20/06/2023 650,000 (25) 0.00 20/06/2021 935,000 (6) 0.00

Schroder Strategic Credit Fund Final Report and Accounts 143 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net 31.12.20 £000’s assets Credit Default Swap Barclays Sell Jaguar Land Rover Automotive 5% 15/02/2022 20/06/2023 826,667 (1) 0.00 Credit Default Swap Credit Suisse Sell Imperit 1.375% 27/01/2025 20/06/2024 2,294,488 30 0.00 Credit Default Swap Barclays Sell Casino Guichard Perrachon 1.865% 13/06/2022 20/06/2024 270,479 (11) 0.00 Credit Default Swap Credit Suisse Sell British Tele- communications 5.75% 07/12/2028 20/06/2024 2,750,908 39 0.01 Credit Default Swap BNP Paribas Sell Imperit 1.375% 27/01/2025 20/12/2024 1,148,114 15 0.00 Credit Default Swap J.P. Morgan Sell Cellnex Telecom 3.125% 27/07/2022 20/12/2024 552,070 73 0.01 Credit Default Swap BNP Paribas Sell Grifols 3.2% 01/05/2025 20/12/2024 1,392,823 198 0.03 Credit Default Swap Credit Suisse Sell Grifols 3.2% 01/05/2025 20/12/2024 2,321,372 329 0.04 Credit Default Swap Merrill Lynch Sell British Tele- communications 5.75% 07/12/2028 20/12/2024 1,000,000 14 0.00 Interest Rate Swap Morgan Stanley Pay fixed 0.545% Receive floating SONIA 1 day 14/03/2025 12,700,000 (305) (0.04) Interest Rate Swap Morgan Stanley Pay fixed 0.005% Receive floating SONIA 1 day 24/03/2026 6,400,000 (2) 0.00 Swaps total a (39) 0.00

Portfolio of investments 765,559 96.93 Net other assets 24,280 3.07 Net assets attributable to shareholders 789,839 100.00

The comparative percentage figures in brackets are as at 31 December 2019. Unless otherwise stated, all securities are admitted to official stock exchange listings.

Schroder Strategic Credit Fund Final Report and Accounts 144 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (20,508) – 49,312 Revenue 3 40,863 – 49,372 – Expenses 4 (5,875) – (7,267) – Net revenue before taxation 34,988 – 42,105 – Taxation 5 – – – – Net revenue after taxation 34,988 42,105 Total return before distributions 14,480 91,417 Distributions 6 (40,851) (49,312) Change in net assets attributable to shareholders from investment activities (26,371) 42,105

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020

2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 1,061,162 1,089,031 Amounts receivable on issue of shares 157,305 – 113,018 – Amounts payable on cancellation of shares (419,213) – (196,634) – (261,908) (83,616) Dilution adjustment 2,357 55 Change in net assets attributable to shareholders from investment activities (26,371) 42,105 Retained distribution on Accumulation shares 14,599 13,586 Unclaimed distributions – 1 Closing net assets attributable to shareholders 789,839 1,061,162

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 768,717 1,054,309 Current assets Debtors 8 10,169 13,892 Cash and bank balances 9 25,953 14,239 Total assets 804,839 1,082,440 – – Liabilities – – Investment liabilities (3,158) (2,158) Creditors Bank overdrafts 10 (897) (1,129) Distributions payable (9,847) (16,793) Other creditors 11 (1,098) (1,198) Total liabilities (15,000) (21,278) – – Net assets attributable to shareholders 789,839 1,061,162

Schroder Strategic Credit Fund Final Report and Accounts 145 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder Strategic Credit Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities 2,188 27,162 Derivative contracts (1,690) (2,072) Forward foreign currency contracts (20,694) 25,142 Foreign currency losses (294) (899) Transaction costs (18) (21) Net capital (losses)/gains (20,508) 49,312

3 Revenue

2020 2019 £000's £000's Overseas dividends 113 67 Interest on debt securities 40,662 48,914 Bank interest 20 117 Net revenue return from derivative contracts 68 274 Total revenue 40,863 49,372

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 4,390 5,366 Administration charge 1,361 1,706 5,751 7,072 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 71 84 Safe custody fees 29 40 100 124 Other expenses:

Audit fee 12 11 Interest payable 12 60 24 71 Total expenses 5,875 7,267

Schroder Strategic Credit Fund Final Report and Accounts 146 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses and interest distributions payable by the Fund exceed the revenue liable to corporation tax.

(a) Factors affecting the current tax charge for the year The tax assessed for the year is different from that calculated when the standard rate of corporation tax for Open Ended Investment Companies of 20% (2019 – 20%) is applied to the net revenue before taxation. The differences are explained below.

2020 2019 £000’s £000’s Net revenue before taxation 34,988 42,105

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 6,998 8,421 Effects of:

Revenue not subject to corporation tax (23) (13) Expenses not deductible for tax purposes (1) – Interest distributions deductible for tax purposes (6,974) (8,408) Current tax charge for the year – –

6 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Interim Dividend distribution 19,560 24,353 Final Dividend distribution 16,944 23,424 36,504 47,777 Add: Revenue deducted on cancellation of shares 5,479 2,458 Deduct: Revenue received on issue of shares (1,132) (923) Distributions 40,851 49,312

Net revenue after taxation 34,988 42,105 Expenses taken to capital 5,862 7,207 Movement in undistributed revenue 1 – Distributions 40,851 49,312

Details of the distributions per share are set out in the Distribution Table on pages 155 to 156.

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 1,377 (128) 2,255 - Level 2: Observable market data 767,340 (3,030) 1,052,054 (2,158) Level 3: Unobservable data – – – – Total 768,717 (3,158) 1,054,309 (2,158)

Schroder Strategic Credit Fund Final Report and Accounts 147 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 402 458 Amounts receivable on derivative contracts 12 10 Accrued revenue 9,755 13,424 Total debtors 10,169 13,892

9 Cash and bank balances

2020 2019 £000's £000's Cash and bank balances 21,331 11,575 Amounts held at futures clearing houses and brokers 4,622 2,664 Total cash and bank balances 25,953 14,239

10 Bank overdrafts

2020 2019 £000's £000's Amounts overdrawn at futures clearing houses and brokers 897 1,129 Total bank overdrafts 897 1,129

11 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 575 561 Amounts payable on derivative contracts 58 28 Accrued expenses 465 609 Total other creditors 1,098 1,198

12 Contingent liabilities There were no contingent liabilities at the balance sheet date (2019 – Nil). 13 Related party transactions The Authorised Corporate Director exercises control over the Fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the year or due to the Authorised Corporate Director at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies paid through the issue and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and Distributions in the Notes to the Accounts. Amounts due from or to the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Debtors and Other creditors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 17.65% (2019 – 19.93%).

Schroder Strategic Credit Fund Final Report and Accounts 148 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

14 Share classes The Fund currently has twelve share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

A Accumulation shares 1.00% A Income shares 1.00% C Accumulation shares 0.60% (0.75% to 1 April 2020) C Income shares 0.60% (0.75% to 1 April 2020) D Accumulation shares 0.45% D Income shares 0.45% L Accumulation shares 0.50% L Income shares 0.50% S Accumulation shares 0.30% S Income shares 0.30% Z Accumulation shares 0.60% Z Income shares 0.60%

The closing net asset value of each share classes, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 131 to 136. The distributions per share class are given in the Distribution Table on pages 155 to 156. All classes have the same rights on winding up. 15 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, derivative, foreign currency, liquidity, credit and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Schroder Strategic Credit Fund Final Report and Accounts 149 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Derivatives During the year the Fund entered into derivative contracts for specific investment purposes in addition to being used for efficient management. During the year the Fund entered into derivative contracts for the efficient management of the Fund.

Global risk exposure Absolute VaR approach The approach used for the Funds managed with an absolute return target, an absolute volatility limit or a target of outperforming an interest rate benchmark.

Regulatory VaR limit utilization

2020 2019

Lowest Highest Average Lowest Highest Average 4.22% 41.81% 20.71% 4.72% 10.62% 6.45%

Information on VaR Model

2020 2019

Length Length of data Confidence Holding of data Confidence Holding Model type history level period history level period All available Merill Lynch UNP0 Index history 99.00% 20 days - - -

All available Monte Carlo simulation - - - history 99.00% 20 days

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 62.00% 199.00% 94.60% 73.00% 60.00% 120.00% 78.27% 70.00%

Schroder Strategic Credit Fund Final Report and Accounts 150 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

16 Debt securities credit analysis 2020 2019 £000’s £000’s

Investment grade securities 179,405 416,553 Below investment grade securities 556,585 581,197 Unrated securities 25,995 44,708 Total debt securities 761,985 1,042,458

The Fund invests in credit default swaps to adjust the credit risk profile of the Fund. The notional exposure of these swaps has been included in the above table. 17 Direct transaction costs The transaction costs on the purchase or sale of investments incurred by the Fund during 2020 were immaterial. The total purchases for the year amounted to £319,432,130 (2019 – £316,559,947) and the total sales amounted to £602,986,265 (2019 – £372,692,661). Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.96% (2019 – 0.64%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 18 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 A Accumulation shares 10,747,342 1,311,773 (2,625,386) (29,022) 9,404,707 A Income shares 1,617,467 25,959 (329,046) 2,337 1,316,717 C Accumulation shares 940,154 8,484 (144,512) – 804,126 C Income shares 4,330,148 480 (1,984,869) – 2,345,759 D Accumulation shares 971,632 – (969,632) – 2,000 D Income shares 52,061,933 21,077,017 (65,660,570) – 7,478,380 L Accumulation shares 87,344,460 25,370,699 (34,446,167) 53,946,962 132,215,954 L Income shares 576,940,412 25,626,144 (238,259,539) 170,424 364,477,441 S Accumulation shares 32,160,464 556,380 (11,204,721) (275,291) 21,236,832 S Income shares 346,178,228 3,123,855 (157,624,658) 651,953 192,329,378 Z Accumulation shares 114,982,700 120,436,648 (28,486,975) (161,883,053) 45,049,320 Z Income shares 26,004,102 6,998,120 (7,366,934) (54,819) 25,580,469

19 Counterparty exposure The types of derivatives held at the balance sheet date were forward foreign currency contracts, credit default swaps, interest rate swaps, total return swaps, inflation linked swaps, option contracts and swaption contracts. Details of individual contracts are disclosed in the Portfolio Statement and the total position by counterparty at the balance sheet date was as follows:

Schroder Strategic Credit Fund Final Report and Accounts 151 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Forward foreign Credit Contract Interest Total Inflation currency default for rate return linked Options Swaption contracts swaps difference swaps swaps swaps contracts contracts Total Counterparty £000's £000's £000's £000's £000's £000's £000's £000's £000's ANZ 2020 – – – – – – – – – 2019 34 – – – – – – – 34 Bank of America 2020 (81) – – – – – – – (81) 2019 (95) – – – – – – – (95) Barclays 2020 4,240 (66) – – – – – – 4,174 2019 8 (29) – – – – – – (21) BNP Paribas 2020 (1,622) 188 – – – – – – (1,434) 2019 (87) 10 – – – – – – (77) Canadian Imperial Bank of Commerce 2020 – – – – – – – – – 2019 6 – – – – – – – 6 Citigroup 2020 (104) 26 – – – – – – (78) 2019 74 141 – – – – – – 215 Credit Suisse 2020 – 398 – – – – – – 398 2019 – 78 – – – – – – 78 Deutsche Bank 2020 31 – – – – – – – 31 2019 (34) – – – – – – – (34) Goldman Sachs 2020 (16) 68 – – – – – – 52 2019 (241) (193) – – – – – – (434) HSBC 2020 (3) – – – – – – – (3) 2019 1,423 – – – – – – – 1,423 J.P. Morgan 2020 53 85 – – – – – – 138 2019 420 104 – – – – – – 524 Lloyds Bank 2020 5 – – – – – – – 5 2019 – – – – – – – – – Merrill Lynch 2020 – 14 – – – – – – 14 2019 – 13 – – – – – – 13 Morgan Stanley 2020 (73) (445) – (307) – – – – (825) 2019 – (61) – (331) – – – – (392) Royal Bank of Canada 2020 30 – – – – – – – 30 2019 – – – – – – – – – Standard Chartered 2020 – – – – – – – – – 2019 104 – – – – – – – 104

Schroder Strategic Credit Fund Final Report and Accounts 152 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

The collateral held/(pledged) by the Fund on behalf of the counterparties at the balance sheet date was as follows:

2020 2019 Counterparty £000’s £000’s

Barclays 1,950 – BNP Paribas (4,050) – Citigroup – 250 Credit Suisse 260 10 Goldman Sachs – (430) HSBC – 1,120 J.P. Morgan 260 290 Morgan Stanley (1,438) (787) State Street (270) 3,150 Total (3,288) 3,603

The nature of collateral held/(pledged) by the Fund on behalf of the counterparties at the balance sheet date was as follows:

2020 2019 £000’s £000’s

Cash (3,288) 3,603 Total (3,288) 3,603

Dealing price Dealing price 23.4.21 31.12.20 % change A Accumulation shares 181.30p 178.00p 1.85 A Income shares 90.06p 90.28p (0.24) C Accumulation shares 187.00p 183.20p 2.07 C Income shares 93.39p 93.50p (0.12) D Accumulation shares 64.86p 63.57p 2.03 D Income shares 48.05p 48.09p (0.08) L Accumulation shares 194.10p 190.10p 2.10 L Income shares 96.87p 96.96p (0.09) S Accumulation shares 187.60p 183.70p 2.12 S Income shares 49.43p 49.45p (0.04) Z Accumulation shares 64.56p 63.28p 2.02 Z Income shares 48.29p 48.35p (0.12)

Schroder Strategic Credit Fund Final Report and Accounts 153 31 December 2020 Securities Financing Transactions

Schroder Strategic Credit Fund Final Report and Accounts 154 31 December 2020 Distribution Table

Interim distribution for the six months ended 30 June 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.8.20 31.8.19 per share per share per share per share A Accumulation shares Group 1 3.8092p – 3.8092p 3.4912p Group 2 1.2640p 2.5452p 3.8092p 3.4912p A Income shares Group 1 1.9781p – 1.9781p 1.8929p Group 2 0.9290p 1.0491p 1.9781p 1.8929p C Accumulation shares Group 1 3.9111p – 3.9111p 3.5751p Group 2 2.0495p 1.8616p 3.9111p 3.5751p C Income shares Group 1 2.0426p – 2.0426p 1.9491p Group 2 2.0426p – 2.0426p 1.9491p D Accumulation shares Group 1 1.3515p – 1.3515p 1.2350p Group 2 1.3515p – 1.3515p 1.2350p D Income shares Group 1 1.0496p – 1.0496p 0.9985p Group 2 0.3865p 0.6631p 1.0496p 0.9985p L Accumulation shares Group 1 4.0549p – 4.0549p 3.6979p Group 2 1.9867p 2.0682p 4.0549p 3.6979p L Income shares Group 1 2.1164p – 2.1164p 2.0149p Group 2 1.1517p 0.9647p 2.1164p 2.0149p S Accumulation shares Group 1 3.9115p – 3.9115p 3.5599p Group 2 1.7178p 2.1937p 3.9115p 3.5599p S Income shares Group 1 1.0777p – 1.0777p 1.0239p Group 2 0.6972p 0.3805p 1.0777p 1.0239p Z Accumulation shares Group 1 1.3512p – 1.3512p 1.2328p Group 2 1.0789p 0.2723p 1.3512p 1.2328p Z Income shares Group 1 1.0562p – 1.0562p 1.0065p Group 2 0.4880p 0.5682p 1.0562p 1.0065p

Schroder Strategic Credit Fund Final Report and Accounts 155 31 December 2020 Distribution Table (continued)

Final distribution for the six months ended 31 December 2020 Group 1 Shares purchased prior to 1 July 2020 Group 2 Shares purchased on or after 1 July 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Accumulation shares Group 1 3.7508p – 3.7508p 3.7168p Group 2 1.9497p 1.8011p 3.7508p 3.7168p A Income shares Group 1 1.9030p – 1.9030p 1.9731p Group 2 0.9552p 0.9478p 1.9030p 1.9731p C Accumulation shares Group 1 3.8584p – 3.8584p 3.8109p Group 2 2.4501p 1.4083p 3.8584p 3.8109p C Income shares Group 1 1.9689p – 1.9689p 2.0348p Group 2 1.9638p 0.0051p 1.9689p 2.0348p D Accumulation shares Group 1 1.3235p – 1.3235p 1.3183p Group 2 1.3235p – 1.3235p 1.3183p D Income shares Group 1 1.0122p – 1.0122p 1.0438p Group 2 0.2693p 0.7429p 1.0122p 1.0438p L Accumulation shares Group 1 4.0025p – 4.0025p 3.9463p Group 2 2.1067p 1.8958p 4.0025p 3.9463p L Income shares Group 1 2.0410p – 2.0410p 2.1057p Group 2 1.0536p 0.9874p 2.0410p 2.1057p S Accumulation shares Group 1 3.8649p – 3.8649p 3.8029p Group 2 3.8649p – 3.8649p 3.8029p S Income shares Group 1 1.0404p – 1.0404p 1.0711p Group 2 0.4241p 0.6163p 1.0404p 1.0711p Z Accumulation shares Group 1 1.3325p – 1.3325p 1.3152p Group 2 0.7787p 0.5538p 1.3325p 1.3152p Z Income shares Group 1 1.0182p – 1.0182p 1.0514p Group 2 0.4614p 0.5568p 1.0182p 1.0514p

Schroder Strategic Credit Fund Final Report and Accounts 156 31 December 2020 Schroder European Alpha Income Fund Fund Information

Investment objective and policy The Schroder European Alpha Income Fund (the ‘Fund’) aims to provide income and capital growth in excess of the FTSE World Series Europe ex UK (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of European companies, excluding the UK. The Fund is actively managed and invests at least 80% of its assets in a concentrated range of equity and equity related securities of European countries, excluding the UK. The Fund typically holds 30 to 50 companies. ‘Alpha' funds invest in companies in which the Investment Adviser has a high conviction that the current share price does not reflect the future prospects for that business. The Fund may also invest directly or indirectly in other securities (including in other asset classes), countries (including the UK), 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 reducing risk or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). Fund characteristics The Fund’s performance should be assessed against the target benchmark, being to exceed the FTSE World Series Europe ex UK (Gross Total Return) index, and compared against the Investment Association Europe ex UK sector average return. The Investment Adviser invests on a discretionary basis and is not limited to investing in accordance with the composition of the benchmark.The target benchmark has been selected because it is representative of the type of investments in which the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the return that the Fund aims to provide. The comparator benchmark has been selected because the Investment Adviser and the ACD believe that this benchmark is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder European Alpha Income Fund Final Report and Accounts 157 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Fund Manager: 1 shares on a dealing price basis fell 11.81%. In the same period, the FTSE Martin Skanberg 2 World European ex UK Index generated a total return of 8.62% in sterling terms. The 12-month period saw a change of Fund Manager. James Sym left Schroders in March and was replaced by Martin Skanberg. Since taking over responsibility, Martin has transitioned the fund to express his approach which is centred around constructing a portfolio diversified by style, sector and market cap. In terms of markets, the main focus has been the Covid-19 pandemic and efforts to contain it. Equities fell sharply in March and April but then staged a strong recovery as governments and central banks took measures to support the economy. Against this volatile backdrop, the Fund underperformed the index. Underperformance was concentrated in the first Martin joined Schroders in 2004 as an Industrials analyst, three months of the year, with the repositioned fund seeing much-improved performance before taking on portfolio management responsibilities in over the remainder of the period. The main detractor from relative returns overall was 2006 and is now a fund manager for the Schroder European the positioning in banks; exposure to financials was reduced when Martin Skanberg took Fund and Schroder ISF EURO Equity over and the Fund is now underweight relative to the index. Oil services company Borr Investment career commenced in 1994 when he joined SEB Drilling was the main individual detractor; the position was sold in March. The top positive Asset Management as an investment analyst for Nordic contributor was Neste , a refining company making renewable diesel and jet fuel. ASM Industrials and Basic Materials. In 1999 he became Head of International, a maker of semiconductor equipment, was another top contributor. European Research The ongoing pandemic clearly represents a risk for many parts of the market. However, Also previously worked at American Express Asset increased stimulus – from governments and central banks – is continuing to underpin Management as a senior investment analyst responsible for equities. Stimulus measures are combining with economic recovery and a reconfiguration Industrials and Telecommunications of supply chains as companies seek more local suppliers. This is leading to rising producer Masters in Financial Economics prices. Rising prices tend to favour more lowly-valued parts of the market, which have been left behind in recent years. We could see a rotation into these kinds of stocks, particularly those in the materials sector that are aligned to the commodity cycle. This is not to say that we expect value to outperform at the expense of growth: there are still structural growth opportunities in areas such as technology and green energy, but we think it could be the start of more balance returning to the market.

Schroder European Alpha Income Fund Final Report and Accounts 158 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

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. The risk and reward indicator changed from 5 to 6 with effect from 6 July 2020. 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 European Alpha Income Fund Final Report and Accounts 159 31 December 2020 Comparative Table

A Accumulation shares A Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 241.38 211.23 253.42 185.66 167.70 208.55 Return before operating charges* (28.06) 33.93 (38.06) (21.85) 26.83 (30.78) Operating charges (3.31) (3.78) (4.13) (2.71) (2.99) (3.36) Return after operating charges* (31.37) 30.15 (42.19) (24.56) 23.84 (34.14)

Distributions1 (4.97) (7.44) (8.19) (3.79) (5.88) (6.71) Retained distributions1 4.97 7.44 8.19 – – – Closing net asset value 210.01 241.38 211.23 157.31 185.66 167.70

*after direct transaction costs of (0.49) (0.36) (0.29) (0.40) (0.29) (0.24) – – – – – – Performance

Return after charges (%) (13.00) 14.27 (16.65) (13.23) 14.22 (16.37) – – – – – – Other information

Closing net asset value (£000's) 3,231 12,807 42,202 207 10,504 36,652 Closing number of shares 1,538,215 5,305,837 19,978,677 131,286 5,657,400 21,855,598 Operating charges (%) 1.69 1.67 1.67 1.69 1.67 1.67 Direct transaction costs (%)** 0.25 0.16 0.12 0.25 0.16 0.12 – – – – – – Prices

Highest dealing price 244.64p 244.30p 263.50p 188.19p 190.10p 216.90p Lowest dealing price 145.50p 211.80p 208.30p 111.93p 168.30p 168.30p

Schroder European Alpha Income Fund Final Report and Accounts 160 31 December 2020 Comparative Table (continued)

C Accumulation shares C Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 248.80 216.62 258.58 193.06 173.48 214.67 Return before operating charges* (28.73) 34.95 (39.03) (21.99) 27.89 (31.83) Operating charges (2.08) (2.77) (2.93) (1.85) (2.20) (2.44) Return after operating charges* (30.81) 32.18 (41.96) (23.84) 25.69 (34.27)

Distributions1 (5.16) (7.66) (8.37) (4.53) (6.11) (6.92) Retained distributions1 5.16 7.66 8.37 – – – Closing net asset value 217.99 248.80 216.62 164.69 193.06 173.48

*after direct transaction costs of (0.51) (0.38) (0.30) (0.40) (0.30) (0.25) – – – – – – Performance

Return after charges (%) (12.38) 14.86 (16.23) (12.35) 14.81 (15.96) – – – – – – Other information

Closing net asset value (£000's) 340 531 456 78 2,302 2,305 Closing number of shares 155,976 213,302 210,335 47,119 1,192,291 1,328,636 Operating charges (%) 0.95 1.17 1.17 0.95 1.17 1.17 Direct transaction costs (%)** 0.25 0.16 0.12 0.25 0.16 0.12 – – – – – – Prices

Highest dealing price 252.21p 251.80p 269.00p 195.72p 197.80p 223.30p Lowest dealing price 150.13p 217.20p 213.60p 116.51p 174.10p 174.20p

Schroder European Alpha Income Fund Final Report and Accounts 161 31 December 2020 Comparative Table (continued)

GBP Hedged C Income shares GBP Hedged S Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 197.60 149.60 184.95 199.67 169.51 208.72 Return before operating charges* (34.04) 55.62 (27.10) (36.38) 37.65 (31.16) Operating charges (1.57) (2.15) (2.20) (1.44) (1.26) (1.22) Return after operating charges* (35.61) 53.47 (29.30) (37.82) 36.39 (32.38)

Distributions1 (4.03) (5.47) (6.05) (3.91) (6.23) (6.83) Retained distributions – – – – – – Closing net asset value 157.96 197.60 149.60 157.94 199.67 169.51

*after direct transaction costs of (0.38) (0.27) (0.22) (0.42) (0.30) (0.24) – – – – – – Performance

Return after charges (%) (18.02) 35.74 (15.84) (18.94) 21.47 (15.51) – – – – – – Other information

Closing net asset value (£000's) 99 148 146 115 20,516 29,460 Closing number of shares 62,810 74,706 97,533 73,051 10,274,596 17,379,960 Operating charges (%) 0.95 1.28 1.27 0.85 0.67 0.65 Direct transaction costs (%)** 0.25 0.16 0.12 0.25 0.16 0.12 – – – – – – Prices

Highest dealing price 200.27p 201.00p 193.80p 202.40p 204.00p 218.90p Lowest dealing price 110.56p 149.10p 148.90p 111.85p 169.00p 169.30p

Schroder European Alpha Income Fund Final Report and Accounts 162 31 December 2020 Comparative Table (continued)

GBP Hedged Z Income shares L Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 197.75 168.30 208.02 84.98 73.75 87.75 Return before operating charges* (33.83) 37.42 (30.94) (9.82) 11.91 (13.27) Operating charges (1.50) (1.88) (1.98) (0.61) (0.68) (0.73) Return after operating charges* (35.33) 35.54 (32.92) (10.43) 11.23 (14.00)

Distributions1 (3.89) (6.09) (6.80) (1.75) (2.60) (2.85) Retained distributions1 – – – 1.75 2.60 2.85 Closing net asset value 158.53 197.75 168.30 74.55 84.98 73.75

*after direct transaction costs of (0.39) (0.30) (0.24) (0.17) (0.13) (0.10) – – – – – – Performance

Return after charges (%) (17.87) 21.12 (15.83) (12.27) 15.23 (15.95) – – – – – – Other information

Closing net asset value (£000's) 4,866 51,063 103,954 17,670 51,948 68,109 Closing number of shares 3,069,450 25,822,401 61,768,286 23,702,032 61,126,927 92,346,522 Operating charges (%) 0.95 1.02 1.02 0.87 0.85 0.85 Direct transaction costs (%)** 0.25 0.16 0.12 0.25 0.16 0.12 – – – – – – Prices

Highest dealing price 200.54p 201.80p 218.10p 86.16p 86.02p 91.29p Lowest dealing price 110.55p 167.80p 168.00p 51.32p 73.95p 72.74p

Schroder European Alpha Income Fund Final Report and Accounts 163 31 December 2020 Comparative Table (continued)

L Income shares S Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 69.46 62.21 76.74 252.00 218.05 258.65 Return before operating charges* (8.17) 10.00 (11.42) (29.05) 35.25 (39.21) Operating charges (0.54) (0.57) (0.63) (1.24) (1.30) (1.39) Return after operating charges* (8.71) 9.43 (12.05) (30.29) 33.95 (40.60)

Distributions1 (1.42) (2.18) (2.48) (5.22) (7.72) (8.40) Retained distributions1 – – – 5.22 7.72 8.40 Closing net asset value 59.33 69.46 62.21 221.71 252.00 218.05

*after direct transaction costs of (0.15) (0.11) (0.09) (0.54) (0.38) (0.30) – – – – – – Performance

Return after charges (%) (12.54) 15.16 (15.70) (12.02) 15.57 (15.70) – – – – – – Other information

Closing net asset value (£000's) 10,123 235,689 280,706 54 10,819 11,779 Closing number of shares 17,061,923 339,329,996 451,251,782 24,492 4,293,426 5,402,243 Operating charges (%) 0.87 0.85 0.85 0.57 0.55 0.55 Direct transaction costs (%)** 0.25 0.16 0.12 0.25 0.16 0.12 – – – – – – Prices

Highest dealing price 70.42p 71.24p 79.84p 255.51p 255.10p 269.10p Lowest dealing price 41.95p 62.42p 62.55p 152.26p 218.60p 215.00p

Schroder European Alpha Income Fund Final Report and Accounts 164 31 December 2020 Comparative Table (continued)

S Income shares Z Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 66.56 59.43 73.10 255.58 221.97 264.30 Return before operating charges* (7.83) 9.57 (10.91) (29.57) 35.84 (39.96) Operating charges (0.33) (0.35) (0.39) (1.98) (2.23) (2.37) Return after operating charges* (8.16) 9.22 (11.30) (31.55) 33.61 (42.33)

Distributions1 (1.37) (2.09) (2.37) (5.27) (7.84) (8.57) Retained distributions1 – – – 5.27 7.84 8.57 Closing net asset value 57.03 66.56 59.43 224.03 255.58 221.97

*after direct transaction costs of (0.14) (0.10) (0.09) (0.52) (0.39) (0.31) – – – – – – Performance

Return after charges (%) (12.26) 15.51 (15.46) (12.34) 15.14 (16.02) – – – – – – Other information

Closing net asset value (£000's) 867 259,374 258,940 32,754 86,688 94,150 Closing number of shares 1,520,549 389,684,509 435,726,241 14,620,359 33,918,671 42,415,672 Operating charges (%) 0.57 0.55 0.55 0.95 0.92 0.92 Direct transaction costs (%)** 0.25 0.16 0.12 0.25 0.16 0.12 – – – – – – Prices

Highest dealing price 67.49p 68.37p 76.07p 259.10p 258.70p 275.00p Lowest dealing price 40.22p 59.63p 59.85p 154.30p 222.60p 218.90p

Schroder European Alpha Income Fund Final Report and Accounts 165 31 December 2020 Comparative Table (continued)

Z Income shares 2020 2019 2018 Financial year to 31 December p per share p per share p per share Change in net asset value

Opening net asset value 196.78 176.38 217.71 Return before operating charges* (23.23) 28.38 (32.35) Operating charges (1.53) (1.76) (1.95) Return after operating charges* (24.76) 26.62 (34.30)

Distributions1 (4.04) (6.22) (7.03) Retained distributions – – – Closing net asset value 167.98 196.78 176.38

*after direct transaction costs of (0.40) (0.31) (0.25) – – – Performance

Return after charges (%) (12.58) 15.09 (15.75) – – – Other information

Closing net asset value (£000's) 32,117 111,124 140,238 Closing number of shares 19,120,073 56,471,879 79,508,046 Operating charges (%) 0.95 0.92 0.92 Direct transaction costs (%)** 0.25 0.16 0.12 – – – Prices

Highest dealing price 199.52p 201.60p 226.50p Lowest dealing price 118.82p 177.00p 177.10p

Schroder European Alpha Income Fund Final Report and Accounts 166 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets

Equities 95.21% (99.17%) Netherlands 6.51% (15.12%) Austria 0.00% (1.17%) ASM International 20,514 3,304 3.22 Belgium 3.17% (2.86%) EXOR 22,196 1,316 1.29 Ageas 48,092 1,876 1.83 Prosus 25,919 2,050 2.00 UCB 18,232 1,379 1.34 6,670 6.51

3,255 3.17 Norway 0.00% (3.81%) Bermuda 0.00% (4.96%) Spain 0.00% (10.39%) Denmark 0.00% (0.73%) Sweden 23.67% (3.97%) Finland 8.69% (3.11%) BillerudKorsnas 237,766 3,089 3.01 Neste 71,526 3,799 3.71 BioArctic 70,047 591 0.58 Sampo A 100,297 3,114 3.04 Biotage 139,401 1,728 1.69 Stora Enso R 141,801 1,991 1.94 Elekta B 201,375 1,984 1.93 8,904 8.69 Fabege 233,456 2,692 2.63 Getinge B 132,299 2,269 2.21 France 14.45% (26.22%) Hansa Biopharma 69,577 1,491 1.45 Air Liquide 20,760 2,495 2.43 Nordic Bouygues 78,372 2,360 2.30 Entertainment Carrefour 68,771 864 0.84 Group B 61,817 2,531 2.47 Danone 59,211 2,849 2.78 Saab B 85,142 1,824 1.78 Publicis Groupe 40,658 1,483 1.45 SKF B 88,608 1,692 1.65 Thales 24,505 1,643 1.60 Svenska Handelsbanken A 314,848 2,326 2.27 Ubisoft Entertainment 30,397 2,145 2.09 Swedish Orphan Biovitrum 138,196 2,048 2.00 Worldline 13,854 980 0.96 24,265 23.67 14,819 14.45 Switzerland 7.58% (4.42%) Germany 25.40% (15.84%) Alcon 55,622 2,708 2.64 alstria office REIT 72,585 956 0.93 Cie Financiere Bayer 57,916 2,512 2.45 Richemont 35,992 2,385 2.33 Beiersdorf 32,584 2,764 2.70 Idorsia 47,618 1,006 0.98 Brenntag 33,053 1,906 1.86 Julius Baer Group 39,513 1,668 1.63 Deutsche Boerse 19,293 2,414 2.35 7,767 7.58 Deutsche Wohnen 30,587 1,193 1.16 Evonik Industries 65,557 1,576 1.54 United Kingdom 3.56% (0.84%) Fresenius 45,458 1,553 1.51 Dialog Semiconductor 90,428 3,654 3.56 GEA Group 39,160 1,038 1.01 3,654 3.56 Merck 28,375 3,543 3.46 MTU Aero Engines 13,503 2,593 2.53 Equities total 97,611 95.21 Porsche Automobil Forward Foreign Currency Contracts 0.10% (0.02%) Holding Preference 34,216 1,740 1.70 RWE 19,075 590 0.58 Buy CHF 287 Sell GBP 238 29/01/2021 0 0.00 Software 55,618 1,664 1.62 Buy CHF 13,421 26,042 25.40 Sell GBP 11,365 29/01/2021 0 0.00 Greece 0.26% (0.00%) Buy EUR 2,124 Sell GBP 1,908 29/01/2021 0 0.00 Hellenic Tele- communications Buy EUR 136,169 Organization 22,762 268 0.26 Sell GBP 124,533 29/01/2021 (2) 0.00 268 0.26 Buy SEK 7,856 Sell GBP 701 29/01/2021 0 0.00 Ireland 0.00% (2.06%) Buy SEK 489,575 Italy 0.00% (1.22%) Sell GBP 44,418 29/01/2021 (1) 0.00 Jersey 0.00% (1.50%) Sell CHF 492,002 Buy GBP 419,178 29/01/2021 10 0.01 Luxembourg 1.92% (0.95%) Sell EUR 3,898,433 ArcelorMittal 116,393 1,967 1.92 Buy GBP 3,590,915 29/01/2021 83 0.08 1,967 1.92 Sell EUR 1,054 Buy GBP 948 29/01/2021 0 0.00

Schroder European Alpha Income Fund Final Report and Accounts 167 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net 31.12.20 £000’s assets Sell SEK 14,245,351 Buy GBP 1,289,837 29/01/2021 12 0.01 Sell SEK 210,432 Buy GBP 18,765 29/01/2021 0 0.00 Forward Foreign Currency Contracts total 102 0.10

Portfolio of investments 97,713 95.31 Net other assets 4,808 4.69 Net assets attributable to shareholders 102,521 100.00

The comparative percentage figures in brackets are as at 31 December 2019. Unless otherwise stated, all securities are admitted to official stock exchange listings.

Schroder European Alpha Income Fund Final Report and Accounts 168 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (212,217) – 123,932 Revenue 3 6,448 – 34,247 – Expenses 4 (2,454) – (7,837) – Net revenue before taxation 3,994 – 26,410 – Taxation 5 (110) – (3,729) – Net revenue after taxation 3,884 22,681 Total return before distributions (208,333) 146,613 Distributions 6 (6,265) (30,235) Change in net assets attributable to shareholders from investment activities (214,598) 116,378

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020

2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 853,513 1,069,097 Amounts receivable on issue of shares 13,420 – 71,343 – Amounts payable on cancellation of shares (552,478) – (408,680) – (539,058) (337,337) Dilution adjustment 653 115 Change in net assets attributable to shareholders from investment activities (214,598) 116,378 Retained distribution on Accumulation shares 2,011 5,260 Closing net assets attributable to shareholders 102,521 853,513

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 97,716 846,652 Current assets Debtors 8 4,246 4,572 Cash and bank balances 1,276 12,876 Total assets 103,238 864,100 – – Liabilities – – Investment liabilities (3) (42) Creditors Distributions payable (121) (9,277) Other creditors 9 (593) (1,268) Total liabilities (717) (10,587) – – Net assets attributable to shareholders 102,521 853,513

Schroder European Alpha Income Fund Final Report and Accounts 169 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder European Alpha Income Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities (207,403) 119,351 Derivative contracts (573) 300 Forward foreign currency contracts (2,960) 1,772 Foreign currency (losses)/gains (1,222) 2,531 Transaction costs (59) (22) Net capital (losses)/gains (212,217) 123,932

3 Revenue

2020 2019 £000's £000's UK dividends – 127 Overseas dividends 6,446 34,027 Interest on debt securities 1 – Bank interest 1 93 Total revenue 6,448 34,247

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 1,885 5,939 Administration charge 424 1,406 2,309 7,345 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 30 70 Safe custody fees 19 35 49 105 Other expenses:

Audit fee 9 9 Professional fee1 10 49 Interest payable 66 231 Hedging programme costs 11 98 96 387 Total expenses 2,454 7,837

1 Professional fee includes £1,136 (2019 – Nil) which were paid to PricewaterhouseCoopers LLP.

Schroder European Alpha Income Fund Final Report and Accounts 170 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Analysis of the tax charge for the year

2020 2019 £000's £000's Overseas withholding tax 110 3,729 Total current tax (Note 5(b)) 110 3,729

2020 2019 £000’s £000’s Net revenue before taxation 3,994 26,410

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 799 5,282 Effects of:

Revenue not subject to corporation tax (1,289) (6,764) Movement in excess management expenses 477 1,464 Irrecoverable overseas withholding tax 110 3,729 Expensed withholding tax incurred – (10) Loan relationship deficit 13 28 Current tax charge for the year (Note 5(a)) 110 3,729

(c) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £8,894,553 (2019 – £8,417,431) in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the year or prior year. 6 Distributions

2020 2019 £000’s £000’s Quarterly Dividend distribution 1,565 1,700 Interim Dividend distribution 1,941 7,577 Quarterly Dividend distribution 906 7,027 Final Dividend distribution 250 11,688 4,662 27,992 Add: Revenue deducted on cancellation of shares 1,657 2,918 Deduct: Revenue received on issue of shares (54) (675) Distributions 6,265 30,235

Net revenue after taxation 3,884 22,681 Expenses taken to capital 2,380 7,607 Tax relief on capital gains – (49) Movement in undistributed revenue 1 (1) Equalisation on conversions – (3) Distributions 6,265 30,235

Details of the distributions per share are set out in the Distribution Table on pages 177 to 180.

Schroder European Alpha Income Fund Final Report and Accounts 171 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 97,611 – 846,447 – Level 2: Observable market data 105 (3) 205 (42) Level 3: Unobservable data – – – – Total 97,716 (3) 846,652 (42)

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 60 558 Sales awaiting settlement 302 23 Accrued revenue – 1 Overseas withholding tax recoverable 3,884 3,990 Total debtors 4,246 4,572

9 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 405 644 Purchases awaiting settlement 80 – Accrued expenses 107 615 Interest payable 1 9 Total other creditors 593 1,268

Schroder European Alpha Income Fund Final Report and Accounts 172 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

12 Share classes The fund currently has thirteen share classes. The Authorised Corporate Director charge is based on the average value of the fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

A Accumulation shares 1.50% A Income shares 1.50% C Accumulation shares 0.75% (1.00% to 1 April 2020) C Income shares 0.75% (1.00% to 1 April 2020) GBP Hedged C Income shares 0.75% (1.00% to 1 April 2020) GBP Hedged S Income shares 0.375% GBP Hedged Z Income shares 0.75% L Accumulation shares 0.675% L Income shares 0.675% S Accumulation shares 0.375% S Income shares 0.375% Z Accumulation shares 0.75% Z Income shares 0.75%

The closing net asset value of each share classes, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 160 to 166. The distributions per share class are given in the Distribution Table on pages 177 to 180. All classes have the same rights on winding up. 13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Currency risk profile The currency risk profile of the Fund’s net assets and liabilities at the balance sheet date was as follows:

2020 2019 Currency £000’s £000’s Danish krone 651 6,840 Euro 66,226 628,361 Norwegian krone – 68,642 Sterling 5,260 84,160 Swedish krona 23,013 31,004 Swiss franc 7,369 34,504 US dollar 2 2

Schroder European Alpha Income Fund Final Report and Accounts 173 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average Rate. Foreign currency bank balances bear interest at rates based on the London Interbank Offer Rate or its international equivalent.

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 0.00% 11.22% 0.50% 0.10% 0.00% 2.57% 0.37% 0.00%

Principal Commissions Taxes Total cost Commissions Taxes % of 2020 £000's £000's £000's £000's % of principal principal Purchases

Bonds 26,099 – – 26,099 – – Equities 452,590 201 447 453,238 0.04 0.10 478,689 201 447 479,337

Sales

Bonds 26,099 – – 26,099 – – Equities 995,044 (387) (2) 994,655 (0.04) – 1,021,143 (387) (2) 1,020,754

Total cost of the Fund's average net asset value (%) 0.21 0.16

Principal Commissions Taxes Total cost Commissions Taxes % of 2019 £000's £000's £000's £000's % of principal principal Purchases

Equities 866,829 439 618 867,886 0.05 0.07

Sales

Equities 1,154,032 (517) – 1,153,515 (0.04) –

Total cost of the Fund's average net asset value (%) 0.10 0.07

Schroder European Alpha Income Fund Final Report and Accounts 174 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.18% (2019 – 0.21%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price.

15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 A Accumulation shares 5,305,837 171,448 (3,933,109) (5,961) 1,538,215 A Income shares 5,657,400 18,969 (5,536,925) (8,158) 131,286 C Accumulation shares 213,302 56,970 (114,296) – 155,976 C Income shares 1,192,291 1,890 (1,147,062) – 47,119 GBP Hedged C Income shares 74,706 – (11,896) – 62,810 GBP Hedged S Income shares 10,274,596 18,373 (10,219,918) – 73,051 GBP Hedged Z Income shares 25,822,401 3,531,138 (26,284,089) – 3,069,450 L Accumulation shares 61,126,927 3,601,507 (40,999,150) (27,252) 23,702,032 L Income shares 339,329,996 639,759 (323,053,033) 145,201 17,061,923 S Accumulation shares 4,293,426 3,481 (4,272,415) – 24,492 S Income shares 389,684,509 1,737,130 (389,736,957) (164,133) 1,520,549 Z Accumulation shares 33,918,671 668,521 (19,960,952) (5,881) 14,620,359 Z Income shares 56,471,879 1,944,000 (39,334,488) 38,682 19,120,073

16 Counterparty exposure The type of derivative held at the balance sheet were forward foreign currency contracts. Details of individual contracts are disclosed in the Portfolio Statement and the total position by counterparty at the balance sheet date was as follows:

The collateral pledged by the Fund on behalf of the counterparties at the balance sheet date was as follows:

2020 2019 Counterparty £000’s £000’s

HSBC – (2,630) Total – (2,630)

The nature of collateral pledged by the Fund on behalf of the counterparties at the balance sheet date was as follows:

2020 2019 £000’s £000’s

Cash – (2,630) Total – (2,630)

Schroder European Alpha Income Fund Final Report and Accounts 175 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

17 Non-adjusting post balance sheet events As a result of market movements and foreign exchange rates, since the balance sheet date on 31 December 2020, the price of each share class has changed as follows:

Number of Number of shares in shares in issue issue Dealing price Dealing price 23.4.21 31.12.20 % change 23.4.21 31.12.20 % change A Accumulation shares 840,041 1,538,215 (45.39) 224.50p 211.40p 6.20 A Income shares 127,901 131,286 (2.58) 168.20p 158.80p 5.92 C Accumulation shares 104,673 155,976 (32.89) 233.60p 219.40p 6.47 C Income shares 37,924 47,119 (19.51) 176.50p 166.20p 6.20 GBP Hedged C Income 19,278 62,810 (69.31) 177.40p 159.40p 11.29 GBP Hedged S Income 73,051 73,051 – 165.30p 159.40p 3.70 GBP Hedged Z Income 2,247,074 3,069,450 (26.79) 176.80p 160.00p 10.50 L Accumulation shares 17,642,666 23,702,032 (25.56) 79.91p 75.06p 6.46 L Income shares 14,226,759 17,061,923 (16.62) 63.60p 59.88p 6.21 S Accumulation shares 7,314 24,492 (70.14) 237.90p 223.20p 6.59 S Income units 746,251 1,520,549 (50.92) 61.19p 57.56p 6.31 Z Accumulation shares 12,428,838 14,620,359 (14.99) 240.10p 225.60p 6.43 Z Income units 16,864,695 19,120,073 (11.80) 180.00p 169.50p 6.19

Schroder European Alpha Income Fund Final Report and Accounts 176 31 December 2020 Distribution Table

Quarterly distribution for the three months ended 31 March 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.5.20 31.5.19 per share per share per share per share A Accumulation shares Group 1 0.6495p – 0.6495p 0.3500p Group 2 0.2994p 0.3501p 0.6495p 0.3500p A Income shares Group 1 0.5000p – 0.5000p 0.3200p Group 2 0.1282p 0.3718p 0.5000p 0.3200p C Accumulation shares Group 1 0.6698p – 0.6698p 0.3500p Group 2 0.1757p 0.4941p 0.6698p 0.3500p C Income shares Group 1 0.5202p – 0.5202p 0.3200p Group 2 0.3705p 0.1497p 0.5202p 0.3200p GBP Hedged C Income shares Group 1 0.5271p – 0.5271p 0.3600p Group 2 0.5271p – 0.5271p 0.3600p GBP Hedged S Income shares Group 1 0.5333p – 0.5333p 0.3700p Group 2 0.2928p 0.2405p 0.5333p 0.3700p GBP Hedged Z Income shares Group 1 0.5279p – 0.5279p 0.3700p Group 2 0.0773p 0.4506p 0.5279p 0.3700p L Accumulation shares Group 1 0.2289p – 0.2289p 0.1200p Group 2 0.0987p 0.1302p 0.2289p 0.1200p L Income shares Group 1 0.1873p – 0.1873p 0.1200p Group 2 0.1012p 0.0861p 0.1873p 0.1200p S Accumulation shares Group 1 0.6789p – 0.6789p 0.3500p Group 2 0.2411p 0.4378p 0.6789p 0.3500p S Income shares Group 1 0.1795p – 0.1795p 0.1100p Group 2 0.0926p 0.0869p 0.1795p 0.1100p Z Accumulation shares Group 1 0.6883p – 0.6883p 0.3500p Group 2 0.2544p 0.4339p 0.6883p 0.3500p Z Income shares Group 1 0.5303p – 0.5303p 0.3200p Group 2 0.2415p 0.2888p 0.5303p 0.3200p

Schroder European Alpha Income Fund Final Report and Accounts 177 31 December 2020 Distribution Table (continued)

Interim distribution for the three months ended 30 June 2020 Group 1 Shares purchased prior to 1 April 2020 Group 2 Shares purchased on or after 1 April 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 31.8.20 31.8.19 per share per share per share per share A Accumulation shares Group 1 2.4105p – 2.4105p 1.8300p Group 2 1.0819p 1.3286p 2.4105p 1.8300p A Income shares Group 1 1.8474p – 1.8474p 1.7200p Group 2 0.5678p 1.2796p 1.8474p 1.7200p C Accumulation shares Group 1 2.4896p – 2.4896p 1.8400p Group 2 0.3285p 2.1611p 2.4896p 1.8400p C Income shares Group 1 1.9249p – 1.9249p 1.7300p Group 2 1.3276p 0.5973p 1.9249p 1.7300p GBP Hedged C Income shares Group 1 1.8974p – 1.8974p 1.7800p Group 2 1.8974p – 1.8974p 1.7800p GBP Hedged S Income shares Group 1 1.9124p – 1.9124p 1.7200p Group 2 1.6926p 0.2198p 1.9124p 1.7200p GBP Hedged Z Income shares Group 1 1.8954p – 1.8954p 1.7900p Group 2 1.2025p 0.6929p 1.8954p 1.7900p L Accumulation shares Group 1 0.8512p – 0.8512p 0.6000p Group 2 0.3611p 0.4901p 0.8512p 0.6000p L Income shares Group 1 0.6932p – 0.6932p 0.5700p Group 2 0.4220p 0.2712p 0.6932p 0.5700p S Accumulation shares Group 1 2.5266p – 2.5266p 1.8500p Group 2 2.5266p – 2.5266p 1.8500p S Income shares Group 1 0.6650p – 0.6650p 0.5000p Group 2 0.6650p – 0.6650p 0.5000p Z Accumulation shares Group 1 2.5591p – 2.5591p 1.8600p Group 2 0.9459p 1.6132p 2.5591p 1.8600p Z Income shares Group 1 1.9633p – 1.9633p 1.7500p Group 2 1.0136p 0.9497p 1.9633p 1.7500p

Schroder European Alpha Income Fund Final Report and Accounts 178 31 December 2020 Distribution Table (continued)

Quarterly distribution for the three months ended 30 September 2020 Group 1 Shares purchased prior to 1 July 2020 Group 2 Shares purchased on or after 1 July 2020

Net Distribution Distribution revenue Equalisation paid paid 2020 2020 30.11.20 30.11.19 per share per share per share per share A Accumulation shares Group 1 1.3935p – 1.3935p 1.8300p Group 2 0.3891p 1.0044p 1.3935p 1.8300p A Income shares Group 1 1.0558p – 1.0558p 1.7200p Group 2 – 1.0558p 1.0558p 1.7200p C Accumulation shares Group 1 1.4416p – 1.4416p 1.8400p Group 2 0.5962p 0.8454p 1.4416p 1.8400p C Income shares Group 1 1.1020p – 1.1020p 1.7300p Group 2 1.1020p – 1.1020p 1.7300p GBP Hedged C Income shares Group 1 1.0659p – 1.0659p 1.7800p Group 2 1.0659p – 1.0659p 1.7800p GBP Hedged S Income shares Group 1 1.0681p – 1.0681p 1.7200p Group 2 1.0681p – 1.0681p 1.7200p GBP Hedged Z Income shares Group 1 1.0675p – 1.0675p 1.7900p Group 2 0.2260p 0.8415p 1.0675p 1.7900p L Accumulation shares Group 1 0.4929p – 0.4929p 0.6000p Group 2 0.0567p 0.4362p 0.4929p 0.6000p L Income shares Group 1 0.3967p – 0.3967p 0.5700p Group 2 0.0524p 0.3443p 0.3967p 0.5700p S Accumulation shares Group 1 1.4640p – 1.4640p 1.8500p Group 2 1.4640p – 1.4640p 1.8500p S Income shares Group 1 0.3809p – 0.3809p 0.5000p Group 2 0.3809p – 0.3809p 0.5000p Z Accumulation shares Group 1 1.4817p – 1.4817p 1.8600p Group 2 0.4663p 1.0154p 1.4817p 1.8600p Z Income shares Group 1 1.1237p – 1.1237p 1.7500p Group 2 0.3907p 0.7330p 1.1237p 1.7500p

Schroder European Alpha Income Fund Final Report and Accounts 179 31 December 2020 Distribution Table (continued)

Final distribution for the three months ended 31 December 2020 Group 1 Shares purchased prior to 1 October 2020 Group 2 Shares purchased on or after 1 October 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share A Accumulation shares Group 1 0.5125p – 0.5125p 3.4336p Group 2 0.0818p 0.4307p 0.5125p 3.4336p A Income shares Group 1 0.3860p – 0.3860p 2.1247p Group 2 – 0.3860p 0.3860p 2.1247p C Accumulation shares Group 1 0.5597p – 0.5597p 3.6318p Group 2 0.2461p 0.3136p 0.5597p 3.6318p C Income shares Group 1 0.9862p – 0.9862p 2.3286p Group 2 0.9862p – 0.9862p 2.3286p GBP Hedged C Income shares Group 1 0.5354p – 0.5354p 1.5491p Group 2 0.5354p – 0.5354p 1.5491p GBP Hedged S Income shares Group 1 0.3981p – 0.3981p 2.4176p Group 2 0.3981p – 0.3981p 2.4176p GBP Hedged Z Income shares Group 1 0.3953p – 0.3953p 2.1357p Group 2 0.0433p 0.3520p 0.3953p 2.1357p L Accumulation shares Group 1 0.1790p – 0.1790p 1.2825p Group 2 0.0424p 0.1366p 0.1790p 1.2825p L Income shares Group 1 0.1452p – 0.1452p 0.9245p Group 2 0.0234p 0.1218p 0.1452p 0.9245p S Accumulation shares Group 1 0.5457p – 0.5457p 3.6657p Group 2 0.5457p – 0.5457p 3.6657p S Income shares Group 1 0.1416p – 0.1416p 0.9849p Group 2 0.1416p – 0.1416p 0.9849p Z Accumulation shares Group 1 0.5362p – 0.5362p 3.7723p Group 2 0.0673p 0.4689p 0.5362p 3.7723p Z Income shares Group 1 0.4189p – 0.4189p 2.3962p Group 2 0.1660p 0.2529p 0.4189p 2.3962p

Schroder European Alpha Income Fund Final Report and Accounts 180 31 December 2020 Schroder Global Recovery Fund Fund Information

Investment objective and policy The Schroder Global Recovery Fund (the ‘Fund’) aims to provide capital growth by investing in equity and equity related securities of companies worldwide which are considered to be undervalued relative to their long term earnings potential. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of companies worldwide that have suffered a set back in either share price or profitability, but where long term prospects are believed to be good. The Fund applies a disciplined value investment approach, seeking to invest in a select portfolio of companies that the Investment Adviser believes are significantly undervalued relative to their long-term earnings potential. 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 derivative instruments for investment purposes as well as for efficient portfolio management (for more information please refer to Appendix III. Section 10: Derivatives and Forwards). Fund characteristics The Fund does not have a target benchmark. The Fund’s performance should be compared against the MSCI World (Net Total Return) index and the Investment Association Global Equity Income sector average return. The comparator benchmark has been selected because the Investment Adviser and the ACD believe that this benchmark is a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder Global Recovery Fund Final Report and Accounts 181 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Co-Fund Manager: shares on a dealing price basis fell 7.25%. In comparison, the MSCI World Nick Kirrage Index generated a net return of 12.32%1 in sterling terms and the Investment Association Global Equity Income Sector Average generated a total return of 3.46%1. The portfolio underperformed over the year. The sell-off in March 2020 was particularly challenging for value-oriented portfolios. The market’s muscle-memory was to aggressively sell commodity and financial companies. We believed our holding’s significantly improved balance sheets would provide greater protection, but the market focus on short-term profitability didn’t help. Since the trough in March, equity markets around the globe have staged a remarkable recovery. Value lagged initially but significantly outperformed in the final three months of the year. The lesson that we draw from this is when good news is Co-manager of UK Income, UK Recovery, Global Recovery priced into a stock, any ‘bad’ news can have a disproportionately negative effect. Similarly, and Global Income strategies when you have bought a business on a cheap valuation, a little good news can go a long Founding member of the Global Value Team in 2013 way. It is re-assuring to see the strategy perform exactly as it is designed to do and has Investment career commenced in 2001 within Schroders’ been promised to clients. Pan European research team Financials weighed on performance for much of the year until contributing well in the final Previously analyst responsible for a number of sectors quarter. Royal Mail and PostNL were strong contributors to performance, and we sold the including Transport, Metals & Mining and Aerospace and latter in Q3. Defence sectors We have been able to increase the number of holdings significantly in 2020. New CFA Charterholder opportunities presented themselves due to the Covid-19 triggered volatility. The extensiveness of the stock market collapse meant that for the first time in a very long time, Degree in Aeronautical Engineering, Bristol University the breadth of compelling valuation opportunities was large on an absolute (rather than a relative) basis. This meant there was significantly more opportunity to diversify out the risk Co-Fund Manager: in a portfolio than there was at the start of the year. The businesses that we have found Simon Adler typically have robust balance sheets and impressive records of cash generation (or cash preservation in cyclical downturns), all coupled with compelling valuations.

Co-manager of Global Recovery and Global Income strategies Joined the Global Value Team in July 2016 Investment career commenced in 2008, at Schroders as a UK equity analyst Previously sector analyst responsible for Chemicals, Media, Transport, Travel & Leisure and Utilities Global Sustainability Specialist in Global Equity team until 2016 CFA Charterholder MA in Politics, Edinburgh University

Co-Fund Manager: Andrew Lyddon

Co-manager of European Income, European Recovery and Global Recovery strategies, with 15 years’ investment experience Past Specialist Value UK equities fund manager UK equity analyst responsible for Telecommunications and Support Services Joined Schroders in October 2005 as an Equity Analyst with the Pan European Industrials desk CFA Charterholder 1 Source: Thomson Reuters Datastream MSc in Intellectual Property Law, Queen Mary College 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 Degree in Chemistry, Bath University back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.

Schroder Global Recovery Fund Final Report and Accounts 182 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

The risk category was calculated using simulated 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. The risk and reward indicator changed from 5 to 6 with effect from 10 July 2020. 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 Recovery Fund Final Report and Accounts 183 31 December 2020 Comparative Table

L Accumulation shares L Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 81.29 69.05 74.83 75.26 65.85 72.84 Return before operating charges* (5.46) 12.90 (5.12) (5.02) 12.27 (4.98) Operating charges (0.57) (0.66) (0.66) (0.54) (0.63) (0.64) Return after operating charges* (6.03) 12.24 (5.78) (5.56) 11.64 (5.62)

Distributions1 (1.02) (2.35) (1.40) (0.95) (2.23) (1.37) Retained distributions1 1.02 2.35 1.40 – – – Closing net asset value 75.26 81.29 69.05 68.75 75.26 65.85

*after direct transaction costs of (0.06) (0.06) (0.08) (0.06) (0.06) (0.08) – – – – – – Performance

Return after charges (%) (7.42) 17.73 (7.72) (7.39) 17.68 (7.72) – – – – – – Other information

Closing net asset value (£000's) 100,822 41,898 32,434 1,725 2,437 3,116 Closing number of shares 133,958,595 51,543,423 46,969,371 2,508,763 3,238,387 4,732,054 Operating charges (%) 0.87 0.87 0.89 0.87 0.87 0.89 Direct transaction costs (%)** 0.09 0.08 0.11 0.09 0.08 0.11 – – – – – – Prices

Highest dealing price 82.12p 82.30p 78.71p 76.05p 78.46p 76.63p Lowest dealing price 52.07p 68.33p 68.05p 48.22p 65.14p 66.24p

Schroder Global Recovery Fund Final Report and Accounts 184 31 December 2020 Comparative Table (continued)

S Income shares X Accumulation shares 2020 2019 2018 2020 2019 Financial year to 31 December p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 58.23 50.95 56.37 53.74 50.00 Return before operating charges* (3.87) 9.50 (3.86) (3.59) 3.76 Operating charges (0.27) (0.32) (0.33) (0.02) (0.02) Return after operating charges* (4.14) 9.18 (4.19) (3.61) 3.74

Distributions1 (0.87) (1.90) (1.23) (1.00) (1.45) Retained distributions1 – – – 1.00 1.45 Closing net asset value 53.22 58.23 50.95 50.13 53.74

*after direct transaction costs of (0.04) (0.05) (0.06) (0.04) (0.04) – – – – – Performance

Return after charges (%) (7.11) 18.02 (7.43) (6.72) 7.48 – – – – – Other information

Closing net asset value (£000's) 79,333 83,494 73,110 39,453 44,419 Closing number of shares 149,070,418 143,384,032 143,508,070 78,695,562 82,648,889 Operating charges (%) 0.57 0.57 0.59 0.04 0.04 Direct transaction costs (%)** 0.09 0.08 0.11 0.09 0.08 – – – – – Prices

Highest dealing price 58.85p 60.88p 59.31p 54.31p 54.41p Lowest dealing price 37.34p 50.40p 51.41p 34.49p 48.22p

Schroder Global Recovery Fund Final Report and Accounts 185 31 December 2020 Comparative Table (continued)

Z Accumulation shares Z Income shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 81.05 68.91 74.73 75.19 65.79 72.78 Return before operating charges* (5.45) 12.86 (5.11) (5.01) 12.27 (4.98) Operating charges (0.61) (0.72) (0.71) (0.59) (0.69) (0.69)

Return after operating charges* (6.06) 12.14 (5.82) (5.60) 11.58 (5.67) Distributions1 (0.97) (2.28) (1.35) (0.90) (2.18) (1.32) Retained distributions1 0.97 2.28 1.35 – – –

Closing net asset value 74.99 81.05 68.91 68.69 75.19 65.79 *after direct transaction costs of (0.06) (0.06) (0.08) (0.06) (0.06) (0.08) – – – – – – Performance

Return after charges (%) (7.48) 17.62 (7.79) (7.45) 17.60 (7.79) – – – – – – Other information

Closing net asset value (£000's) 97,542 60,245 34,726 9,221 26,484 18,453 Closing number of shares 130,078,856 74,330,890 50,394,300 13,424,324 35,220,759 28,046,699 Operating charges (%) 0.94 0.94 0.96 0.94 0.94 0.96 Direct transaction costs (%)** 0.09 0.08 0.11 0.09 0.08 0.11 – – – – – – Prices

Highest dealing price 81.88p 82.06p 78.60p 75.98p 78.34p 76.56p Lowest dealing price 51.91p 68.18p 67.91p 48.17p 65.09p 66.15p

X Accumulation shares The share class was launched on 3 May 2019. 1 These figures have been rounded to 2 decimal places. ** Direct transaction costs have been stated after deducting the proportion of the amounts collected from dilution adjustments. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 Recovery Fund Final Report and Accounts 186 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets

Equities 93.95% (92.55%) Norway 0.74% (0.00%) Australia 2.79% (3.75%) TGS NOPEC Geophysical 215,265 2,431 0.74 South32 6,553,053 9,143 2.79 2,431 0.74 9,143 2.79 Poland 0.00% (0.79%) Belgium 1.68% (1.70%) Ageas 141,030 5,501 1.68 Russia 5.62% (5.41%) Alrosa 7,488,006 7,327 2.24 5,501 1.68 Gazprom ADR 1,180,773 4,832 1.47 Canada 2.62% (1.34%) LUKOIL ADR 125,509 6,262 1.91 Teck Resources B 632,006 8,607 2.62 18,421 5.62 8,607 2.62 Singapore 1.47% (0.00%) Croatia 0.00% (0.76%) Genting Singapore 10,236,300 4,816 1.47 Denmark 1.38% (2.09%) 4,816 1.47 Drilling Co. of 1972 195,305 4,528 1.38 South Africa 1.73% (0.00%) 4,528 1.38 Tiger Brands 546,042 5,661 1.73 France 4.51% (5.72%) 5,661 1.73 Publicis Groupe 131,989 4,816 1.47 South Korea 4.59% (5.73%) Sanofi 77,764 5,478 1.67 Hankook Tire & Television Francaise Technology 265,489 7,038 2.15 1 766,320 4,513 1.37 Hyundai Mobis 27,516 4,733 1.44 14,807 4.51 Kia Motors 77,890 3,274 1.00 Germany 5.68% (1.09%) 15,045 4.59 Bayer 159,620 6,924 2.11 Spain 2.04% (2.87%) Continental 57,117 6,283 1.91 Repsol 906,088 6,691 2.04 Schaeffler Preference 892,974 5,443 1.66 6,691 2.04

18,650 5.68 Switzerland 1.86% (2.09%) Greece 0.00% (0.03%) GAM Holding 3,412,683 6,112 1.86 Italy 5.72% (7.73%) 6,112 1.86

Eni 1,140,878 8,715 2.66 Taiwan 1.36% (2.69%) Intesa Sanpaolo 2,299,316 3,939 1.20 Asustek Computer 685,000 4,467 1.36 UniCredit 893,791 6,123 1.86 4,467 1.36 18,777 5.72 United Arab Emirates 0.00% (0.89%) Japan 10.40% (2.47%) United Kingdom 22.15% (24.66%) Citizen Watch 3,020,000 6,284 1.91 Anglo American 355,723 8,624 2.63 DeNA 294,500 3,833 1.17 Barclays 5,657,512 8,298 2.53 H.U. Group Holdings 263,100 5,179 1.58 Centrica 16,676,387 7,760 2.36 NHK Spring 1,057,900 5,300 1.61 Imperial Brands 453,385 6,962 2.12 Nippon Television Natwest Group 6,592,480 11,042 3.37 Holdings 410,900 3,268 1.00 Rolls-Royce Tokai Rika 467,000 5,776 1.76 Holdings 4,741,144 5,275 1.61 TV Asahi Holdings 373,900 4,483 1.37 Royal Mail 1,941,646 6,555 2.00 34,123 10.40 Standard Chartered 1,811,903 8,440 2.57 Jersey 1.27% (0.00%) Tesco 2,247,332 5,200 1.58 WPP 522,428 4,178 1.27 Wm Morrison Supermarkets 2,555,878 4,532 1.38 4,178 1.27 72,688 22.15 Luxembourg 1.69% (0.00%) United States of America 12.49% (16.47%) RTL Group 155,782 5,536 1.69 American 5,536 1.69 International Group 191,197 5,290 1.61 Netherlands 2.16% (4.27%) HollyFrontier 185,331 3,504 1.07 ING Groep 1,034,850 7,078 2.16 HP 326,883 5,859 1.78 7,078 2.16 Intel 148,324 5,371 1.64

Schroder Global Recovery Fund Final Report and Accounts 187 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net 31.12.20 £000’s assets Molson Coors Beverage B 144,939 4,782 1.46 Omnicom Group 112,152 5,096 1.55 Vistra 374,179 5,342 1.63 Xerox Holdings 340,903 5,747 1.75 40,991 12.49

Equities total 308,251 93.95 Collective Investment Schemes 1.57% (0.00%)

Emerging Markets Equity Funds 1.57% (0.00%) Schroder ISF Emerging Markets Value - Class I Accumulation USD ^† 56,788 5,162 1.57 5,162 1.57

Collective Investment Schemes total 5,162 1.57

Portfolio of investments 313,413 95.52 Net other assets 14,683 4.48 Net assets attributable to shareholders 328,096 100.00

Schroder Global Recovery Fund Final Report and Accounts 188 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (22,083) – 24,948 Revenue 3 6,350 – 7,875 – Expenses 4 (1,656) – (1,368) – Net revenue before taxation 4,694 – 6,507 – Taxation 5 (534) – (395) – Net revenue after taxation 4,160 6,112 Total return before distributions (17,923) 31,060 Distributions 6 (4,160) (6,112) Change in net assets attributable to shareholders from investment activities (22,083) 24,948

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020 2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 258,977 161,839 Amounts receivable on issue of shares 168,278 – 87,751 – Amounts payable on cancellation of shares (80,860) – (19,814) – 87,418 67,937 Dilution adjustment 373 148 Change in net assets attributable to shareholders from investment activities (22,083) 24,948 Retained distribution on Accumulation shares 3,411 4,105 Closing net assets attributable to shareholders 328,096 258,977

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 313,413 239,678 Current assets Debtors 8 1,077 1,499 Cash and bank balances 15,944 21,675 Total assets 330,434 262,852 – – Liabilities – – Creditors Distributions payable (1,443) (3,563) Other creditors 9 (895) (312) Total liabilities (2,338) (3,875) – – Net assets attributable to shareholders 328,096 258,977

Schroder Global Recovery Fund Final Report and Accounts 189 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder Global Recovery Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities (21,923) 25,052 Forward foreign currency contracts (17) – Foreign currency losses (122) (80) Transaction costs (21) (24) Net capital (losses)/gains (22,083) 24,948

3 Revenue

2020 2019 £000's £000's UK dividends 901 2,740 Overseas dividends 5,449 5,074 Interest distributions – 57 Bank interest – 4 Total revenue 6,350 7,875

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 1,265 1,028 Administration charge 311 274 1,576 1,302 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 26 21 Safe custody fees 18 13 Dividend expenses 24 19 68 53 Other expenses:

Audit fee 10 10 Professional fee 2 3 12 13 Total expenses 1,656 1,368

Schroder Global Recovery Fund Final Report and Accounts 190 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Analysis of the tax charge for the year 2020 2019 £000's £000's Overseas withholding tax 534 395 Total current tax (Note 5(b)) 534 395

2020 2019 £000’s £000’s Net revenue before taxation 4,694 6,507

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 939 1,301 Effects of:

Revenue not subject to corporation tax (1,071) (1,423) Movement in excess management expenses 117 161 Irrecoverable overseas withholding tax 534 395 Expensed withholding tax incurred (20) (11) Movement in revenue taxable in different periods 35 (28) Current tax charge for the year (Note 5(a)) 534 395

(c) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £628,075 (2019 – £511,481) in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the year or prior year. 6 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Final Dividend distribution 4,854 7,668 Add: Revenue deducted on cancellation of shares 842 231 Deduct: Revenue received on issue of shares (1,536) (1,787) Distributions 4,160 6,112

Details of the distributions per share are set out in the Distribution Table on page 197.

Schroder Global Recovery Fund Final Report and Accounts 191 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 313,413 – 239,678 – Level 2: Observable market data – – – – Level 3: Unobservable data – – – – Total 313,413 – 239,678 –

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 474 620 Sales awaiting settlement – 219 Accrued revenue 452 579 Overseas withholding tax recoverable 151 81 Total debtors 1,077 1,499

9 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 517 36 Purchases awaiting settlement 167 121 Accrued expenses 211 155 Total other creditors 895 312

10 Contingent liabilities The aggregate contingent liabilities not provided for at the balance sheet date are:

2020 2019 £000's £000's Nil paid rights – 105 Total contingent liabilities – 105

Schroder Global Recovery Fund Final Report and Accounts 192 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

The revenue earned from these investments of Nil (2019 – £57,270) is included under Revenue in the Notes to the Accounts. 12 Share classes The Fund currently has six share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

L Accumulation shares 0.675% L Income shares 0.675% S Income shares 0.375% X Accumulation shares 0.00% Z Accumulation shares 0.75% Z Income shares 0.75%

The closing net asset value of each share class, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 184 to 186. The distributions per share class are given in the Distribution Table on page 197. All classes have the same rights on winding up. 13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Currency risk profile The currency risk profile of the Fund’s net assets and liabilities at the balance sheet date was as follows:

2020 2019 Currency £000’s £000’s Australian dollar 9,143 9,725 Canadian dollar 8,607 3,459 Croatian kuna – 1,981 Czech Koruna – 13 Danish krone 4,528 5,418 Egyptian pound 3 3 Euro 77,215 60,711 Japanese yen 34,123 6,388 Norwegian krone 2,432 – Polish zloty 2 2,053 Singapore dollar 4,816 – South African rand 5,661 – South Korean won 15,212 15,043 Sterling 91,015 82,502 Swiss franc 6,112 5,408 Taiwan dollar 4,467 6,969 United Arab Emirates dirham – 2,311 US dollar 64,760 56,993

Interest rate risk Interest rate risk is the risk that the value of the Fund’s investment holdings will fluctuate as a result of changes in interest rates.

Schroder Global Recovery Fund Final Report and Accounts 193 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Interest rate risk profile of financial assets and financial liabilities The interest rate risk profile of financial assets and financial liabilities at the balance sheet date was as follows:

2020 2019 Floating Financial Floating Financial rate Fixed rate assets not rate Fixed rate assets not financial financial carrying financial financial carrying assets assets interest Total assets assets interest Total Currency £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s Australian dollar – – 9,143 9,143 – – 9,725 9,725 Canadian dollar – – 8,607 8,607 – – 3,459 3,459 Croatian kuna – – – – – – 1,981 1,981 Czech Koruna – – – – – – 13 13 Danish krone – – 4,528 4,528 – – 5,418 5,418 Egyptian pound 3 – – 3 3 – – 3 Euro 26 – 77,189 77,215 25 – 60,753 60,778 Japanese yen – – 34,123 34,123 121 – 6,388 6,509 Norwegian krone – – 2,432 2,432 – – – – Polish zloty – – 2 2 – – 2,053 2,053 Singapore dollar – – 4,816 4,816 – – – – South African rand – – 5,661 5,661 – – – – South Korean won – – 15,212 15,212 – – 15,043 15,043 Sterling 15,915 – 77,439 93,354 21,715 – 64,663 86,378 Swiss franc 167 – 6,111 6,278 – – 5,408 5,408 Taiwan dollar – – 4,467 4,467 – – 6,969 6,969 United Arab Emirates dirham – – – – – – 2,311 2,311 US dollar – – 64,760 64,760 – – 56,993 56,993

2020 2019 Financial Financial Floating liabilities Floating liabilities rate Fixed rate not rate Fixed rate not financial financial carrying financial financial carrying liabilities liabilities interest Total liabilities liabilities interest Total Currency £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s Euro – – – – 67 – – 67 Japanese yen – – – – – – 121 121 Sterling 167 – 2,172 2,339 122 – 3,754 3,876 Swiss franc – – 166 166 – – – –

There are no material amounts of non-interest bearing financial assets, other than equities and collective investment schemes, which do not have a maturity date.

Schroder Global Recovery Fund Final Report and Accounts 194 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 0.00% 7.37% 0.45% 0.05% 0.00% 5.13% 0.22% 0.09%

Principal Commissions Taxes Total cost Commissions Taxes % of 2020 £000's £000's £000's £000's % of principal principal Purchases

Purchases1: Equities 245,511 91 279 245,881 0.04 0.11 Funds 4,426 – – 4,426 – – Corporate actions purchases: – – – Equities 1,174 – – 1,175 – – 251,111 91 279 251,482

Sales

Sales Equities 155,947 (79) (48) 155,820 (0.05) (0.03) 155,947 (79) (48) 155,820

Total cost of the Fund's average net asset value (%) 0.07 0.13

Principal Commissions Taxes Total cost Commissions Taxes % of 2019 £000's £000's £000's £000's % of principal principal Purchases

Purchases: Equities 126,747 53 182 126,982 0.04 0.14 126,747 53 182 126,982

Sales

Sales: Equities 62,622 (39) (7) 62,576 (0.06) (0.01) Funds 8,379 – – 8,379 – – 71,001 (39) (7) 70,955

Total cost of the Fund's average net asset value (%) 0.05 0.09

1 Excluding corporate actions.

Schroder Global Recovery Fund Final Report and Accounts 195 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.18% (2019 – 0.18%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 L Accumulation shares 51,543,423 144,318,836 (61,974,186) 70,522 133,958,595 L Income shares 3,238,387 1,700,955 (2,430,579) – 2,508,763 S Income shares 143,384,032 15,215,252 (9,528,866) – 149,070,418 X Accumulation shares 82,648,889 – (3,953,327) – 78,695,562 Z Accumulation shares 74,330,890 89,721,819 (33,903,090) (70,763) 130,078,856 Z Income shares 35,220,759 1,834,839 (23,631,274) – 13,424,324

Dealing price Dealing price 23.4.21 31.12.20 % change L Accumulation shares 85.81p 75.48p 13.69 L Income shares 78.39p 69.90p 12.15 S Income shares 60.74p 54.25p 11.96 X Accumulation shares 57.30p 50.30p 13.92 Z Accumulation shares 85.47p 75.20p 13.66 Z Income shares 78.30p 69.79p 12.19

Schroder Global Recovery Fund Final Report and Accounts 196 31 December 2020 Distribution Table

Final distribution for the year ended 31 December 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share L Accumulation shares Group 1 1.0189p – 1.0189p 2.3494p Group 2 0.1711p 0.8478p 1.0189p 2.3494p L Income shares Group 1 0.9499p – 0.9499p 2.2342p Group 2 0.2194p 0.7305p 0.9499p 2.2342p S Income shares Group 1 0.8709p – 0.8709p 1.8997p Group 2 0.0862p 0.7847p 0.8709p 1.8997p X Accumulation shares Group 1 0.9999p – 0.9999p 1.4487p Group 2 0.9999p – 0.9999p 1.4487p Z Accumulation shares Group 1 0.9679p – 0.9679p 2.2826p Group 2 0.4195p 0.5484p 0.9679p 2.2826p Z Income shares Group 1 0.9030p – 0.9030p 2.1777p Group 2 0.5896p 0.3134p 0.9030p 2.1777p

Schroder Global Recovery Fund Final Report and Accounts 197 31 December 2020 Schroder Multi-Asset Total Return Fund Fund Information

Investment objective and policy The Schroder Multi-Asset Total Return Fund (the ‘Fund’) aims to provide capital growth and income of 3 month GBP LIBOR (or an equivalent reference rate) plus 4% per annum (before fees have been deducted*) over rolling three year periods by investing in a diversified range of assets and markets worldwide. The Fund also aims to target a volatility (a measure of how much the Fund’s returns may vary) range of 4% – 8% over the same period. This cannot be guaranteed and your capital is at risk. *For the target return after fees for each share class please visit the Schroder website https://www.schroders.com/en/ uk/private-investor/investing-with-us/ historical-ongoingcharges/. The Fund is actively managed and invests directly, or indirectly through collective investment schemes, exchange traded funds, real estate investment trusts and closed ended funds, and derivatives in equity and equity related securities, fixed and floating rate securities, commodities and currencies worldwide. The weightings of these holdings are adjusted in response to changing market conditions. The Fund may invest more than 10% of its assets in collective investment schemes (including other Schroder funds). The Fund may invest in below investment grade securities (as measured by Standard & Poor’s or any equivalent grade of other credit rating agencies) or in unrated securities. The Fund may invest up to 20% of its assets in asset-backed and mortgage-backed securities. The Fund may also invest in warrants and money market instruments, and may hold cash. The investment strategy of the Fund and its use of derivatives may lead to situations when it is considered appropriate that prudent levels of cash or cash equivalent liquidity will be maintained, which may be substantial or even represent (exceptionally) 100% of the Fund’s assets. The Fund may use derivatives with the aim of achieving investment gains, reducing risk or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). The Fund will use leverage and take short positions. With effect from 20 January 2020 the Fund’s Investment objective and policy changed, previously it was: The Schroder Multi-Asset Total Return Fund (the ‘Fund’) aims to provide capital growth and income of 3 month GBP LIBOR (or an equivalent reference rate) plus 4% per annum (before fees have been deducted*) over rolling three year periods by investing in a diversified range of assets and markets worldwide. The Fund also aims to target a volatility (a measure of how much the Fund’s returns may vary) range of 4% – 8% over the same period. This cannot be guaranteed and your capital is at risk. *For the target return after fees for each share class please visit the Schroder website https://www.schroders.com/en/ uk/private-investor/investing-with-us/ historical-ongoingcharges/. The Fund is actively managed and invests directly, or indirectly through collective investment schemes, exchange traded funds, real estate investment trusts and closed ended funds, and derivatives in equity and equity related securities, fixed and floating rate securities, commodities and currencies worldwide. The weightings of these holdings are adjusted in response to changing market conditions. The Fund may invest more than 10% of its assets in collective investment schemes (including other Schroder funds). The Fund may invest in below investment grade securities (as measured by Standard & Poor’s or any equivalent grade of other credit rating agencies) or in unrated securities. The Fund may also invest in warrants and money market instruments, and may hold cash. The investment strategy of the Fund and its use of derivatives may lead to situations when it is considered appropriate that prudent levels of cash or cash equivalent liquidity will be maintained, which may be substantial or even represent (exceptionally) 100% of the Fund’s assets. The Fund may use derivatives with the aim of achieving investment gains, reducing risk or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). The Fund will use leverage and take short positions. Fund characteristics The Fund’s performance should be assessed against its target benchmark of 3 month GBP LIBOR (or an equivalent reference rate) plus 4%. The Fund also aims to target a volatility (a measure of how much the Fund’s returns may vary) range of 4% – 8% over the same period. The target benchmark has been selected because the target return of the Fund is to deliver or exceed the return of that benchmark as stated in the investment objective. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder Multi-Asset Total Return Fund Final Report and Accounts 198 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Co-Fund Manager: shares on a dealing price basis fell 0.39%. In the same period, Sterling 3 Johanna Kyrklund Month London Interbank Offer Rate +4% generated a total return of 4.29%1. The return in 2020 was disappointing, driven by poor performance in the first quarter, despite the Fund capturing the upside and successfully navigating periods of heightened volatility over the subsequent three quarters of the year. The first quarter was characterised by sharp asset price declines and heightened market volatility. Unsurprisingly, return- seeking strategies detracted from performance, with equities and credit recording steep losses. Diversifiers also suffered, however risk reducing strategies in defensive currencies helped to cushion losses in the portfolio. Over the subsequent three quarters, the lifting of lockdown measures and vaccine news combined with considerable worldwide policy support, meant return seeking assets offset Global Head of Multi-Asset Investments their first quarter losses. Specifically developed equities and investment grade credit Joined Schroders in March 2007 and is based in London accounted for the majority of these gains. Risk reducing returns were flat over the year, as Johanna leads the Multi-Asset Investments division, is a currency hedges detracted on the back of US dollar weakness. Diversifiers were positive member of the Group Management Committee (GMC) and over this period due to gains from fundamental relative value equities and systematic FX Chairs Global Asset Allocation Committee value strategy, however these did not offset the losses from the first quarter. Responsible for investments on behalf of Multi-Asset clients Although global growth is likely to rebound strongly in 2021, this is dependent on the globally and is the lead portfolio manager of the Schroder efficacy of the vaccine rollout and failure could lead to further lockdowns derailing the Diversified Growth and Multi-Asset Total Return Strategies recovery. The recovery and long-term trends accelerated by the crisis present opportunities for active investors, such as ourselves, prepared to look below the surface. Prior to joining Schroders, Johanna specialised in tactical asset allocation strategies From 2005 she worked at Insight Investment where she managed an unconstrained global macro absolute return fund. From 1997 to 2005 she worked at Deutsche Asset Management where she was Head of Asset Allocation in the UK and fund manager of the Deutsche tactical asset allocation fund CFA Charterholder Degree in Philosophy, Politics & Economics from Oxford University Johanna is a member of the Cambridge University Investment Board

Co-Fund Manager: Merrick Styles

Senior Fund Manager Merrick Styles is Senior Fund Manager at Schroders, which involves management of the DGF and Total Return Products. He joined Schroders in 2019 and is based in London Merrick was Senior Fund Manager at Barings from 2015 to 2019, which involved management of multi-asset portfolios. Chair of the asset allocation and fixed income groups He was Co-Head of Investments at Amundi from 2012 to 2015, which involved management of currency, global fixed income and multi-asset portfolios. One of 5 senior portfolio architects to set the team views He was Head of Absolute Return at Amundi from 2005 to 2012, which involved management of currency, global fixed income and multi-asset portfolios. One of 5 senior portfolio architects to set the team views MSc in Investment Management from CASS Business School; PhD in Automotive Engineering from Cranfield University; BSc in Mechanical Engineering from University of Southampton

Schroder Multi-Asset Total Return Fund Final Report and Accounts 199 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

The risk category was calculated using simulated 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 Multi-Asset Total Return Fund Final Report and Accounts 200 31 December 2020 Comparative Table

I Income shares L Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 51.30 48.16 52.06 51.71 48.47 52.08 Return before operating charges* 0.05 3.61 (3.26) 0.07 3.63 (3.23) Operating charges (0.29) (0.32) (0.31) (0.37) (0.39) (0.38) Return after operating charges* (0.24) 3.29 (3.57) (0.30) 3.24 (3.61)

Distributions1 (0.49) (0.15) (0.33) (0.44) (0.09) (0.32) Retained distributions1 – – – 0.44 0.09 0.32 Closing net asset value 50.57 51.30 48.16 51.41 51.71 48.47

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) (0.47) 6.83 (6.86) (0.58) 6.68 (6.93) – – – – – – Other information

Closing net asset value (£000's) 17,302 17,552 16,479 332 548 244 Closing number of shares 34,215,099 34,215,099 34,215,099 646,065 1,059,219 502,881 Operating charges (%) 0.67 0.64 0.61 0.81 0.78 0.75 – – – – – – Prices

Highest dealing price 52.37p 51.64p 53.08p 52.79p 51.90p 53.10p Lowest dealing price 42.73p 48.19p 48.20p 43.07p 48.50p 48.17p

Schroder Multi-Asset Total Return Fund Final Report and Accounts 201 31 December 2020 Comparative Table (continued)

L Income shares X Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 51.31 48.41 52.03 52.49 48.92 52.27 Return before operating charges* 0.06 3.64 (3.24) 0.01 3.61 (3.32) Operating charges (0.36) (0.39) (0.38) (0.02) (0.04) (0.03) Return after operating charges* (0.30) 3.25 (3.62) (0.01) 3.57 (3.35)

Distributions1 (0.44) (0.35) Nil† (0.73) (0.37) (0.54) Retained distributions1 – – – 0.73 0.37 0.54 Closing net asset value 50.57 51.31 48.41 52.48 52.49 48.92

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) (0.58) 6.71 (6.96) (0.02) 7.30 (6.41) – – – – – – Other information

Closing net asset value (£000's) 23 21 30 91,624 93,534 32,440 Closing number of shares 45,178 40,740 61,895 174,605,932 178,202,632 66,308,102 Operating charges (%) 0.81 0.78 0.75 0.12 0.09 0.06 – – – – – – Prices

Highest dealing price 52.37p 51.85p 53.04p 53.62p 52.68p 53.32p Lowest dealing price 42.73p 48.45p 48.11p 43.77p 48.96p 48.61p

Schroder Multi-Asset Total Return Fund Final Report and Accounts 202 31 December 2020 Comparative Table (continued)

X Income shares Z Accumulation shares 2020 2019 2018 2020 2019 2018 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 51.34 48.93 52.26 51.64 48.43 52.07 Return before operating charges* 0.01 3.62 (3.30) 0.07 3.64 (3.22) Operating charges (0.02) (0.04) (0.03) (0.40) (0.43) (0.42) Return after operating charges* (0.01) 3.58 (3.33) (0.33) 3.21 (3.64)

Distributions1 (0.70) (1.17) Nil† (0.41) (0.06) (0.28) Retained distributions1 – – – 0.41 0.06 0.28 Closing net asset value 50.63 51.34 48.93 51.31 51.64 48.43

*after direct transaction costs of – – – – – – – – – – – – Performance

Return after charges (%) (0.02) 7.32 (6.37) (0.64) 6.63 (6.99) – – – – – – Other information

Closing net asset value (£000's) 1 1 1 214 278 307 Closing number of shares 2,000 2,000 2,000 417,190 538,816 634,542 Operating charges (%) 0.12 0.09 0.06 0.89 0.85 0.83 – – – – – – Prices

Highest dealing price 52.44p 52.70p 53.31p 52.71p 51.83p 53.09p Lowest dealing price 42.80p 48.97p 48.63p 43.00p 48.47p 48.13p

Schroder Multi-Asset Total Return Fund Final Report and Accounts 203 31 December 2020 Comparative Table (continued)

Z Income shares 2020 2019 2018 Financial year to 31 December p per share p per share p per share Change in net asset value

Opening net asset value 51.28 48.47 52.11 Return before operating charges* 0.07 3.64 (3.22) Operating charges (0.40) (0.43) (0.42) Return after operating charges* (0.33) 3.21 (3.64)

Distributions1 (0.39) (0.40) Nil† Retained distributions – – – Closing net asset value 50.56 51.28 48.47

*after direct transaction costs of – – – – – – Performance

Return after charges (%) (0.64) 6.62 (6.99) – – – Other information

Closing net asset value (£000's) 1 10 9 Closing number of shares 2,000 19,108 19,393 Operating charges (%) 0.89 0.85 0.83 – – – Prices

Highest dealing price 52.34p 51.87p 53.13p Lowest dealing price 42.70p 48.50p 48.17p

L Income shares † There was no distribution as the total amount distributable was below de minimis. X Income shares † There was no distribution as the total amount distributable was below de minimis. Z Income shares † There was no distribution as the total amount distributable was below de minimis. 1 These figures have been rounded to 2 decimal places. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 Multi-Asset Total Return Fund Final Report and Accounts 204 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets

Collective Investment Schemes 57.39% (39.82%) Schroder ISF Securitised Credit - Asia Pacific Fixed Interest Funds 2.84% (0.00%) Class I Accumulation ^† Schroder ISF Asian USD 38,076 3,008 2.75 Credit Opportunities 17,211 15.73 - Class I Accumulation USD ^† 34,614 3,115 2.84 Other Funds 1.25% (0.00%) 3,115 2.84 Schroder GAIA Cat Bond Fund - Class I Cash Funds 10.96% (0.00%) Accumulation USD ^† 1,167 1,368 1.25 Schroder SSF 1,368 1.25 Sterling Liquidity Plus - Class I Collective Investment Schemes Accumulation GBP ^† 98,474 12,000 10.96 total 62,839 57.39

12,000 10.96 Government Bonds 19.60% (36.44%)

Commodity Funds 0.28% (3.95%) United Kingdom 19.60% (33.46%) iShares Physical UK Treasury Bill 0% Gold ETC 11,529 312 0.28 11/01/2021 8,500,000 8,500 7.76 312 0.28 UK Treasury Bill 0% 22/02/2021 1,855,000 1,855 1.70 Emerging Markets Fixed Interest Funds 4.97% (3.71%) UK Treasury Bill 0% iShares J.P. Morgan 14/06/2021 6,000,000 6,001 5.48 $ EM Bond Fund UK Treasury Bill 0% - USD (Dist) Share 21/06/2021 1,109,774 1,110 1.01 Class 22,053 1,717 1.57 UK Treasury Bill 0% SPDR Bloomberg 28/06/2021 4,000,000 4,001 3.65 Barclays Emerging 21,467 19.60 Markets Local Bond Fund - (Dist) 69,195 3,719 3.40 United States of America 0.00% (2.98%) 5,436 4.97 Government Bonds total 21,467 19.60

European Equity Funds 1.25% (0.00%) Corporate Bonds 17.10% (17.05%) Schroder ISF European Large Australia 0.00% (0.06%) Cap - Class I Austria 0.08% (0.06%) ^† Accumulation EUR 3,851 1,371 1.25 OMV 0.75% 1,371 1.25 04/12/2023 100,000 92 0.08 92 0.08 Global Equity Funds 20.11% (10.41%) Schroder ISF Global Belgium 0.09% (0.12%) Disruption - Class I Anheuser-Busch Accumulation USD ^† 20,384 2,962 2.70 InBev 2.7% 31/03/2026 100,000 102 0.09 Schroder ISF Global Equity - Class I 102 0.09 Accumulation USD ^† 497,433 17,503 15.98 Canada 0.30% (0.49%) Schroder ISF QEP Global Equity Magna International Market Neutral - 3.625% 15/06/2024 100,000 80 0.07 Class I Accumulation Bank of Montreal USD ^† 23,467 1,561 1.43 2.5% 28/06/2024 200,000 156 0.14 22,026 20.11 Bank of Nova Scotia 2.7% 03/08/2026 113,000 91 0.09 Global Fixed Interest Funds 15.73% (21.75%) 327 0.30 Schroder ISF Global High Yield - Class I Finland 0.08% (0.06%) Accumulation USD ^† 150,496 6,970 6.37 Nordea Bank 0.875% 26/06/2023 100,000 92 0.08 Schroder ISF Global Sustainable 92 0.08 Convertible Bond - Class I Accumulation France 1.92% (2.00%) EUR ^† 64,895 7,233 6.61 Banque Federative du Credit Mutuel 3.75% 20/07/2023 300,000 237 0.22 Air Liquide Finance 2.25% 27/09/2023 300,000 229 0.21

Schroder Multi-Asset Total Return Fund Final Report and Accounts 205 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets

Credit Agricole Netherlands 1.27% (1.34%) 3.25% 04/10/2024 250,000 198 0.18 Daimler Suez 1% 03/04/2025 100,000 93 0.08 International Societe Generale Finance 0.25% 0.125% 24/02/2026 100,000 90 0.08 11/05/2022 100,000 90 0.08 Cie de Saint-Gobain Iberdrola 1.125% 23/03/2026 100,000 95 0.09 International 1.125% 27/01/2023 100,000 92 0.08 Orange 1.25% 07/07/2027 100,000 97 0.09 BMW Finance 0% 14/04/2023 61,000 55 0.05 HSBC Continental Europe 0.1% Enel Finance 03/09/2027 100,000 90 0.08 International 4.875% 17/04/2023 100,000 100 0.09 Veolia Environnement Enel Finance 1.59% 10/01/2028 100,000 99 0.09 International 4.25% 14/09/2023 200,000 160 0.15 BPCE 4.625% 12/09/2028 250,000 218 0.20 Heineken 1% 04/05/2026 100,000 95 0.09 BNP Paribas FRN 5.198% 10/01/2030 300,000 273 0.25 ASML Holding 1.625% 28/05/2027 200,000 198 0.18 APRR 1.875% 06/01/2031 100,000 105 0.09 ING Groep FRN 3% 11/04/2028 100,000 95 0.09 Total Capital International Shell International 1.618% 18/05/2040 100,000 105 0.10 Finance 3.875% 13/11/2028 100,000 86 0.08 Total Capital International Siemens Financier- 3.461% 12/07/2049 210,000 175 0.16 ingsmaatschappij 0.125% 05/09/2029 32,000 29 0.03 2,104 1.92 Shell International Germany 0.32% (0.17%) Finance 2.75% 06/04/2030 110,000 88 0.08 Volkswagen Bank 1.875% 31/01/2024 200,000 188 0.17 E.ON International Finance 6.375% E.ON 0.875% 07/06/2032 40,000 61 0.05 22/05/2024 100,000 93 0.08 Siemens Financier- E.ON 1% 07/10/2025 26,000 24 0.02 ingsmaatschappij Deutsche Telekom 4.2% 16/03/2047 250,000 242 0.22 1.375% 05/07/2034 50,000 50 0.05 1,391 1.27 355 0.32 Norway 0.11% (0.16%) Guernsey 0.00% (0.06%) Equinor 3.625% Ireland 0.09% (0.06%) 10/09/2028 140,000 119 0.11 CRH Finance 3.125% 119 0.11 03/04/2023 100,000 96 0.09 Spain 0.21% (0.20%) 96 0.09 Telefonica Italy 0.25% (0.28%) Emisiones 3.987% Eni 0.625% 23/01/2023 100,000 97 0.09 19/09/2024 100,000 92 0.09 Telefonica Eni 4.75% Emisiones 4.665% 12/09/2028 200,000 176 0.16 06/03/2038 150,000 132 0.12 268 0.25 229 0.21

Jersey 0.00% (0.06%) Sweden 0.36% (0.23%) Luxembourg 0.20% (0.29%) Essity 1.125% 27/03/2024 100,000 93 0.09 Medtronic Global Holdings 1.125% Svenska 07/03/2027 122,000 117 0.11 Handelsbanken 0.125% 18/06/2024 100,000 91 0.08 Medtronic Global Holdings 1.75% Svenska 02/07/2049 100,000 103 0.09 Handelsbanken 0.05% 03/09/2026 136,000 122 0.11 220 0.20 Castellum 0.75% 04/09/2026 100,000 90 0.08 396 0.36

Schroder Multi-Asset Total Return Fund Final Report and Accounts 206 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets

Switzerland 0.39% (0.18%) Gilead Sciences 3.25% 01/09/2022 102,000 78 0.07 UBS Group 1.5% 30/11/2024 210,000 197 0.18 AbbVie 3.2% 06/11/2022 102,000 78 0.07 Credit Suisse Group FRN 1.25% Wells Fargo 3.069% 17/07/2025 100,000 93 0.09 24/01/2023 100,000 75 0.07 Credit Suisse Group Cigna 3% 0.65% 10/09/2029 145,000 133 0.12 15/07/2023 104,000 81 0.07 423 0.39 Bank of New York Mellon 3.45% United Kingdom 2.00% (2.15%) 11/08/2023 200,000 158 0.14 DS Smith 2.25% DuPont de Nemours 16/09/2022 100,000 92 0.08 4.205% 15/11/2023 200,000 161 0.15 BUPA Finance 5% Bank of America 25/04/2023 100,000 109 0.10 FRN 3.004% Santander UK 20/12/2023 150,000 115 0.11 Group Holdings McDonald's 0.625% 1.125% 08/09/2023 100,000 92 0.08 29/01/2024 100,000 92 0.08 Barclays 3.125% Air Lease 4.25% 17/01/2024 200,000 213 0.20 01/02/2024 100,000 79 0.07 Lloyds Banking Microsoft 2.875% Group 3.9% 06/02/2024 200,000 158 0.14 12/03/2024 200,000 161 0.15 Goldman Sachs GlaxoSmithKline Group 3.625% Capital 3% 20/02/2024 100,000 80 0.07 01/06/2024 80,000 63 0.06 Daimler Finance British Telecom- North America munications 1% 3.65% 22/02/2024 150,000 120 0.11 21/11/2024 141,000 130 0.12 John Deere Capital Next Group 3% 2.6% 07/03/2024 200,000 156 0.14 26/08/2025 100,000 108 0.10 BMW US Capital Natwest Group FRN 3.15% 18/04/2024 165,000 130 0.12 1.75% 02/03/2026 105,000 100 0.09 Morgan Stanley FRN Nationwide 3.737% 24/04/2024 150,000 118 0.11 Building Society 4% ONEOK 2.75% 14/09/2026 250,000 205 0.19 01/09/2024 200,000 154 0.14 Smiths Group 2% Walmart 2.65% 23/02/2027 100,000 97 0.09 15/12/2024 100,000 79 0.07 HSBC Holdings FRN AbbVie 3.8% 3.973% 22/05/2030 200,000 169 0.15 15/03/2025 100,000 82 0.07 Western Power CVS Health 4.1% Distribution East 25/03/2025 150,000 125 0.11 Midlands 1.75% 09/09/2031 200,000 212 0.19 McDonald's 3.375% 26/05/2025 100,000 81 0.07 Diageo Finance 2.5% 27/03/2032 100,000 109 0.10 United Parcel Service 1.625% Notting Hill Genesis 15/11/2025 100,000 97 0.09 3.75% 20/12/2032 100,000 123 0.11 BP Capital Markets United Utilities America 3.41% Water Finance 2% 11/02/2026 190,000 155 0.14 03/07/2033 100,000 111 0.10 Mondelez Diageo Capital International 3.875% 29/04/2043 104,000 94 0.09 3.625% 13/02/2026 133,000 111 0.10 2,188 2.00 Alexandria Real Estate Equities REIT United States of America 9.43% (9.08%) 3.8% 15/04/2026 150,000 126 0.12 Goldman Sachs American Express Group 4.75% 3.125% 20/05/2026 200,000 164 0.15 12/10/2021 90,000 83 0.08 Bristol-Myers Fox 3.666% Squibb 3.2% 25/01/2022 102,000 77 0.07 15/06/2026 100,000 82 0.08 General Motors Thermo Fisher Financial 3.55% Scientific 2.95% 08/07/2022 78,000 59 0.05 19/09/2026 200,000 161 0.15

Schroder Multi-Asset Total Return Fund Final Report and Accounts 207 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Gilead Sciences JPMorgan Chase 2.95% 01/03/2027 100,000 80 0.07 FRN 3.702% Mondelez 06/05/2030 150,000 126 0.12 International Coca-Cola 1.65% 1.625% 08/03/2027 100,000 98 0.09 01/06/2030 100,000 75 0.07 Procter & Gamble Honeywell 2.85% 11/08/2027 250,000 204 0.19 International 1.95% Citigroup 4.45% 01/06/2030 100,000 77 0.07 29/09/2027 150,000 129 0.12 Abbott Laboratories Apple 3% 1.4% 30/06/2030 197,000 146 0.13 13/11/2027 165,000 136 0.12 Bank of America Citigroup 4.125% FRN 3.194% 25/07/2028 100,000 85 0.08 23/07/2030 150,000 122 0.11 Comcast 4.15% Verizon 15/10/2028 108,000 95 0.09 Communications 1.875% 19/09/2030 100,000 107 0.10 Kroger 4.5% 15/01/2029 100,000 90 0.08 JPMorgan Chase FRN 2.956% Moody's 4.25% 13/05/2031 160,000 128 0.12 01/02/2029 229,000 201 0.18 Verizon American Communications International Group 4.5% 10/08/2033 105,000 97 0.09 4.25% 15/03/2029 210,000 185 0.17 AT&T 2.55% CSX 4.25% 01/12/2033 165,000 124 0.11 15/03/2029 200,000 177 0.16 Microsoft 4.1% Fidelity National 06/02/2037 50,000 48 0.04 Information Services 3.75% Goldman Sachs 21/05/2029 200,000 171 0.16 Group FRN 4.411% 23/04/2039 85,000 79 0.07 Mastercard 2.95% 01/06/2029 100,000 82 0.07 Anheuser-Busch InBev Worldwide Digital Realty 4.95% 15/01/2042 142,000 135 0.12 Trust REIT 3.6% 01/07/2029 125,000 105 0.10 AT&T 4.65% 01/06/2044 150,000 129 0.12 Fiserv 3.5% 01/07/2029 100,000 84 0.08 Liberty Mutual Group 4.85% American Tower 01/08/2044 100,000 95 0.09 REIT 3.8% 15/08/2029 150,000 127 0.12 Waste Management 4.1% 01/03/2045 100,000 92 0.08 Duke Energy Carolinas 2.45% Commonwealth 15/08/2029 174,000 137 0.13 Edison 4.35% 15/11/2045 30,000 29 0.03 Hartford Financial Services Group 2.8% Visa 4.3% 19/08/2029 150,000 120 0.11 14/12/2045 200,000 200 0.18 United Parcel Target 3.625% Service 2.5% 15/04/2046 100,000 93 0.09 01/09/2029 100,000 80 0.07 Duke Energy Ohio Walt Disney 2% 3.7% 15/06/2046 96,000 82 0.07 01/09/2029 300,000 228 0.21 Burlington Northern Crown Castle Santa Fe 3.9% International REIT 01/08/2046 100,000 94 0.09 3.1% 15/11/2029 150,000 120 0.11 Gilead Sciences Welltower REIT 3.1% 4.15% 01/03/2047 60,000 53 0.05 15/01/2030 155,000 123 0.11 Aetna 3.875% Morgan Stanley FRN 15/08/2047 70,000 60 0.05 4.431% 23/01/2030 150,000 133 0.12 Procter & Gamble PepsiCo 2.75% 3.5% 25/10/2047 57,000 54 0.05 19/03/2030 95,000 78 0.07 Comcast 4% MetLife 4.55% 01/03/2048 150,000 139 0.13 23/03/2030 139,000 128 0.12 Florida Power Ecolab 4.8% & Light 4.125% 24/03/2030 100,000 93 0.09 01/06/2048 183,000 174 0.16 Caterpillar 2.6% Amgen 4.563% 09/04/2030 157,000 126 0.12 15/06/2048 100,000 95 0.09

Schroder Multi-Asset Total Return Fund Final Report and Accounts 208 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Berkshire Hathaway Buy MXN 47,098,000 Energy 3.8% Sell USD 2,309,970 27/01/2021 38 0.04 15/07/2048 142,000 124 0.11 Buy MXN 522,000 Baltimore Gas Sell USD 26,313 27/01/2021 0 0.00 and Electric 4.25% Buy MYR 6,149,000 15/09/2048 30,000 28 0.03 Sell USD 1,503,607 12/01/2021 17 0.02 Cigna 4.9% Buy NOK 580,000 15/12/2048 90,000 90 0.08 Sell USD 66,489 27/01/2021 1 0.00 Kroger 5.4% Buy NZD 2,502,000 15/01/2049 100,000 106 0.10 Sell USD 1,764,301 27/01/2021 35 0.03 Pfizer 4% Buy PHP 55,502,000 15/03/2049 190,000 180 0.16 Sell USD 1,151,736 12/01/2021 2 0.00 Dow Chemical 4.8% Buy PLN 5,956,000 15/05/2049 200,000 198 0.18 Sell USD 1,581,588 27/01/2021 17 0.02 Prudential Financial Buy PLN 139,000 3.935% 07/12/2049 100,000 88 0.08 Sell USD 38,157 27/01/2021 (1) 0.00 Verizon Buy RUB 204,360,000 Communications 4% Sell USD 2,677,094 12/01/2021 40 0.04 22/03/2050 52,000 46 0.04 Buy SEK 1,629,000 Mastercard 3.85% Sell USD 192,230 27/01/2021 5 0.00 26/03/2050 45,000 42 0.04 Buy SGD 4,363,000 BP Capital Markets Sell USD 3,255,811 27/01/2021 34 0.03 America 2.772% 10/11/2050 50,000 36 0.03 Buy TWD 60,530,000 Sell USD 2,130,063 12/01/2021 19 0.02 10,321 9.43 Buy USD 4,535,187 Corporate Bonds total 18,723 17.10 Sell AUD 6,189,000 27/01/2021 (188) (0.17) Buy USD 42,945 Forward Foreign Currency Contracts 0.46% (0.92%) Sell BRL 221,000 05/01/2021 0 0.00 Buy AUD 1,702,000 Buy USD 1,622,520 Sell USD 1,284,968 27/01/2021 24 0.02 Sell BRL 8,441,000 05/01/2021 (2) 0.00 Buy BRL 8,489,000 Buy USD 10,004 Sell USD 1,576,263 05/01/2021 43 0.04 Sell BRL 52,000 02/02/2021 0 0.00 Buy BRL 173,000 Buy USD 2,964,548 Sell USD 33,702 05/01/2021 0 0.00 Sell CAD 3,869,000 27/01/2021 (55) (0.05) Buy BRL 8,107,000 Buy USD 1,501,064 Sell USD 1,559,728 02/02/2021 0 0.00 Sell CHF 1,365,000 27/01/2021 (37) (0.03) Buy CAD 3,751,672 Buy USD 2,292,342 Sell NZD 4,140,000 27/01/2021 (37) (0.03) Sell CLP 1,739,750,000 12/01/2021 (114) (0.10) Buy CAD 1,543,000 Buy USD 106,537 Sell USD 1,183,108 27/01/2021 21 0.02 Sell COP 368,300,000 12/01/2021 (1) 0.00 Buy CHF 236,000 Buy USD 1,846,961 Sell GBP 198,658 27/01/2021 (2) 0.00 Sell CZK 40,918,000 27/01/2021 (49) (0.04) Buy CLP 923,970,000 Buy USD 6,234,072 Sell USD 1,264,496 12/01/2021 26 0.02 Sell EUR 5,195,385 07/01/2021 (105) (0.10) Buy COP 11,160,880,000 Buy USD 3,096,009 Sell USD 3,140,009 12/01/2021 89 0.08 Sell EUR 2,603,000 27/01/2021 (74) (0.07) Buy CZK 58,815,000 Buy USD 1,374,603 Sell USD 2,649,407 27/01/2021 75 0.07 Sell GBP 1,027,857 07/01/2021 (21) (0.02) Buy EUR 1,176,000 Buy USD 24,018,355 Sell USD 1,403,274 27/01/2021 30 0.03 Sell GBP 18,034,662 27/01/2021 (441) (0.40) Buy HUF 470,310,000 Buy USD 17,589 Sell USD 1,546,933 27/01/2021 27 0.02 Sell HUF 5,190,000 27/01/2021 0 0.00 Buy IDR 43,421,900,000 Buy USD 1,117,358 Sell USD 3,056,240 12/01/2021 47 0.04 Sell IDR 15,875,900,000 12/01/2021 (17) (0.02) Buy ILS 4,393,000 Buy USD 5,242,935 Sell USD 1,321,182 27/01/2021 34 0.03 Sell ILS 17,557,000 27/01/2021 (162) (0.15) Buy INR 168,422,000 Buy USD 5,958,339 Sell USD 2,277,929 12/01/2021 19 0.02 Sell JPY 620,116,000 27/01/2021 (44) (0.04) Buy JPY 561,092,000 Buy USD 1,845,249 Sell USD 5,402,309 27/01/2021 32 0.03 Sell KRW 2,042,080,000 12/01/2021 (23) (0.02) Buy KRW 372,450,000 Buy USD 1,115,010 Sell USD 336,762 12/01/2021 4 0.00 Sell NOK 10,059,000 27/01/2021 (48) (0.04)

Schroder Multi-Asset Total Return Fund Final Report and Accounts 209 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Buy USD 3,064,501 FTSE China A50 Sell NZD 4,420,000 27/01/2021 (100) (0.09) Index January 2021 21 14 0.01 Buy USD 38,487 FTSE 100 Index Sell PHP 1,855,000 12/01/2021 0 0.00 March 2021 35 (35) (0.03) Buy USD 717,877 FTSE/MIB Index Sell PLN 2,702,000 27/01/2021 (8) (0.01) March 2021 1 2 0.00 Buy USD 1,105,368 Hang Seng Mini Sell RUB 83,400,000 12/01/2021 (7) (0.01) Index January 2021 4 3 0.00 Buy USD 1,513,049 Japan 10 Year Bond Sell SEK 13,004,000 27/01/2021 (58) (0.05) Mini March 2021 (26) 4 0.00 Buy USD 5,619,356 Long Gilt March Sell SGD 7,536,000 27/01/2021 (61) (0.06) 2021 (23) (32) (0.03) Buy USD 1,555,790 MSCI Emerging Sell THB 47,000,000 12/01/2021 (12) (0.01) Markets Index Buy USD 4,776,628 March 2021 88 127 0.12 Sell TWD 135,768,000 12/01/2021 (43) (0.04) NASDAQ 100 Emini Buy USD 721,679 Index March 2021 2 14 0.01 Sell ZAR 10,603,800 27/01/2021 1 0.00 Nikkei 225 Index Buy USD 2,026,439 March 2021 18 13 0.01 Sell ZAR 31,012,200 27/01/2021 (59) (0.05) OMXS30 Index Buy ZAR 36,260,800 January 2021 8 (1) 0.00 Sell USD 2,344,942 27/01/2021 87 0.08 Russell 2000 Emini Buy ZAR 627,200 Index March 2021 44 86 0.08 Sell USD 42,743 27/01/2021 0 0.00 S&P/TSX 60 Index Sell AUD 607,000 March 2021 1 (2) 0.00 Buy GBP 334,089 27/01/2021 (10) (0.01) S&P 500 Emini Index Sell CHF 1,006,000 March 2021 (24) (68) (0.06) Buy GBP 833,527 27/01/2021 (4) 0.00 SGX NIFTY 50 Index Sell DKK 1,885,000 January 2021 15 12 0.01 Buy GBP 226,686 27/01/2021 (1) 0.00 SPI 200 Index March Sell EUR 213,000 2021 2 (1) 0.00 Buy GBP 193,061 27/01/2021 1 0.00 TOPIX Index March Sell EUR 11,081,000 2021 17 15 0.01 Buy GBP 9,919,062 27/01/2021 (50) (0.05) TOPIX Mini Index Sell HKD 6,212,000 March 2021 18 6 0.01 Buy GBP 602,578 27/01/2021 16 0.01 US 10 Year Note Sell JPY 121,263,000 March 2021 212 24 0.02 Buy GBP 876,668 27/01/2021 14 0.01 US 10 Year Ultra Sell NOK 2,257,000 Bond March 2021 75 (11) (0.01) Buy GBP 191,686 27/01/2021 (2) 0.00 US Long Bond Sell SEK 3,572,000 March 2021 1 (1) 0.00 Buy GBP 314,206 27/01/2021 (6) (0.01) US Ultra Bond Sell USD 82,199,590 March 2021 18 15 0.01 Buy GBP 61,756,051 27/01/2021 1,543 1.41 Futures total 215 0.20 Forward Foreign Currency Contracts Swaps 0.03% (0.03%) total 499 0.46 Commodity Index Futures 0.20% (0.20%) Swap J.P. MORGAN Pay 0.09% Receive AEX Index January USBCOMF3.CI 2021 1 1 0.00 18/02/2021 1,006,285 35 0.03 Australia 10 Year Swaps total a 35 0.03 Bond March 2021 126 51 0.05 CAC 40 10 Euro Equities 0.00% (0.74%) Index January 2021 1 0 0.00 Bermuda 0.00% (0.01%) Canada 10 Year Ireland 0.00% (0.06%) Bond March 2021 6 0 0.00 United States of America 0.00% (0.67%) Euro-Bund March 2021 (42) (2) 0.00 Options (0.03)% (0.00%)

Euro-Buxl 30 Year Written Options (0.03)% (0.00%) Bond March 2021 2 5 0.01 EURO STOXX 50 DAX Index Index March 2021 (68) (24) (0.02) Call 14,108.62 13/01/2021 (507,910) (2) 0.00

Schroder Multi-Asset Total Return Fund Final Report and Accounts 210 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets DAX Index S&P 500 Index Put Put 12,819.85 3,487.06 20/01/2021 (833,407) (2) 0.00 13/01/2021 (461,515) (1) 0.00 S&P 500 Index Put EURO STOXX 50 3,545.44 27/01/2021 (847,360) (4) (0.01) Index Call 3,634.89 Written Options 06/01/2021 (497,980) 0 0.00 total (31) (0.03) EURO STOXX 50 Index Call 3,671.98 Options total (31) (0.03) 20/01/2021 (506,733) (1) 0.00 Contracts for Difference 0.00% ((0.05)%) EURO STOXX 50 Index Put 3,370.21 Canada 0.00% ((0.01)%) 06/01/2021 (461,719) 0 0.00 EURO STOXX 50 Denmark 0.00% (0.01%) Index Put 3,344.6 20/01/2021 (461,555) (2) 0.00 France 0.00% ((0.01)%) FTSE Index Call Germany 0.00% ((0.01)%) 6,818.05 27/01/2021 (456,809) (1) 0.00 FTSE Index Put Hong Kong 0.00% ((0.01)%) 6,228.03 27/01/2021 (417,278) (5) (0.01) Japan 0.00% ((0.03)%) S&P 500 Index Call 3,794.02 06/01/2021 (902,977) (2) 0.00 Netherlands 0.00% (0.01%) S&P 500 Index Call Singapore 0.00% ((0.01)%) 3,830.71 13/01/2021 (915,540) (2) 0.00 S&P 500 Index Call Taiwan 0.00% (0.01%) 3,819.16 20/01/2021 (912,779) (4) (0.01) United Kingdom 0.00% (0.01%) S&P 500 Index Call 3,862.66 27/01/2021 (923,176) (4) 0.00 United States of America 0.00% ((0.01)%) S&P 500 Index Put 3,507.54 06/01/2021 (834,795) 0 0.00 Portfolio of investments 103,747 94.75 S&P 500 Index Put Net other assets 5,750 5.25 3,497.61 13/01/2021 (835,929) (1) 0.00 Net assets attributable to shareholders 109,497 100.00

Schroder Multi-Asset Total Return Fund Final Report and Accounts 211 31 December 2020 Statement of Total Return For the year ended 31 December 2020

2020 2019 Notes £000's £000's £000's £000's Income Net capital (losses)/gains 2 – (3,871) – 5,537 Revenue 3 2,467 – 1,364 – Expenses 4 (263) – (236) – Interest payable and similar charges 5 (26) – (279) – Net revenue before taxation 2,178 – 849 – Taxation 6 (383) – (170) – Net revenue after taxation 1,795 679 Total return before distributions (2,076) 6,216 Distributions 7 (1,795) (861) Change in net assets attributable to shareholders from investment activities (3,871) 5,355

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020

2020 2019 £000's £000's £000's £000's Opening net assets attributable to shareholders 156,604 49,511 Amounts receivable on issue of shares 8,709 – 119,457 – Amounts payable on cancellation of shares (53,251) – (18,804) – (44,542) 100,653 Dilution adjustment 32 6 Change in net assets attributable to shareholders from investment activities (3,871) 5,355 Retained distribution on Accumulation shares 1,274 1,079 Closing net assets attributable to shareholders 109,497 156,604

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 105,797 152,188 Current assets Debtors 9 166 284 Cash and bank balances 10 6,631 7,892 Total assets 112,594 160,364 – – Liabilities – – Investment liabilities (2,050) (3,175) Creditors Bank overdrafts 11 (449) (309) Distributions payable (169) (50) Other creditors 12 (429) (226) Total liabilities (3,097) (3,760) – – Net assets attributable to shareholders 109,497 156,604

Schroder Multi-Asset Total Return Fund Final Report and Accounts 212 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder Multi Asset Total Return Fund are disclosed on pages 9 to 10. 2 Net capital (losses)/gains The net capital (losses)/gains during the year comprise:

2020 2019 £000's £000's Non-derivative securities 6,897 431 Derivative contracts (7,193) 940 Forward foreign currency contracts (747) 4,181 Foreign currency (losses)/gains (2,800) 12 Transaction costs (28) (27) Net capital (losses)/gains (3,871) 5,537

3 Revenue

2020 2019 £000's £000's Overseas dividends – 6 Franked distributions 264 – Interest distributions 1,317 377 Interest on debt securities 759 443 Bank interest 4 106 Net revenue return from derivative contracts 123 432 Total revenue 2,467 1,364

4 Expenses 2020 2019 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 232 206 Administration charge 1 1 233 207 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 14 12 Safe custody fees 1 1 15 13 Other expenses:

Audit fee 13 13 Professional fee 2 3 15 16 Total expenses 263 236

5x Interest payable and similar charges

2020 2019 £000's £000's Interest payable 21 218 Dividends payable on short positions 5 61 Total interest payable and similar charges 26 279

Schroder Multi-Asset Total Return Fund Final Report and Accounts 213 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

6 Taxation (a) Analysis of the tax charge for the year

2020 2019 £000's £000's Corporation tax 383 169 Overseas withholding tax – 1 Total current tax (Note 6(b)) 383 170

Corporation tax has been provided for at a rate of 20% (2019 – 20%).

2020 2019 £000’s £000’s Net revenue before taxation 2,178 849

Net revenue for the year before taxation multiplied by the standard rate of corporation tax 436 170 Effects of:

Revenue not subject to corporation tax (53) (1) Irrecoverable overseas withholding tax – 1 Current tax charge for the year (Note 6(a)) 383 170

7 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

2020 2019 £000’s £000’s Final Dividend distribution 1,443 1,129 Add: Revenue deducted on cancellation of shares 361 62 Deduct: Revenue received on issue of shares (9) (330) Distributions 1,795 861

Net revenue after taxation 1,795 679 Equalisation on conversions – 182 Distributions 1,795 861

Details of the distributions per share are set out in the Distribution Table on page 223.

8 Fair value hierarchy Instruments held at the year end are presented in line with amendments to FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland Fair value hierarchy disclosures.

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 46,854 (177) 116,977 (685) Level 2: Observable market data 58,943 (1,873) 35,211 (2,490) Level 3: Unobservable data – – – – Total 105,797 (2,050) 152,188 (3,175)

Schroder Multi-Asset Total Return Fund Final Report and Accounts 214 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

9 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares – 6 Amounts receivable on derivative contracts – 14 Accrued revenue 166 264 Total debtors 166 284

10 Cash and bank balances

2020 2019 £000's £000's Cash and bank balances 4,751 4,930 Amounts held at futures clearing houses and brokers 1,880 2,962 Total cash and bank balances 6,631 7,892

11 Bank overdrafts

2020 2019 £000's £000's Amounts overdrawn at futures clearing houses and brokers 449 309 Total bank overdrafts 449 309

12 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares 1 3 Amounts payable on derivative contracts – 2 Accrued expenses 45 52 Corporation tax payable 383 169 Total other creditors 429 226

13 Contingent liabilities There were no contingent liabilities at the balance sheet date (2019 – Nil). 14 Related party transactions The Authorised Corporate Director exercises control over the Fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the year or due to the Authorised Corporate Director at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies paid through the issue and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and Distributions in the Notes to the Accounts. Amounts due from or to the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Debtors and Other creditors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 83.68% (2019 – 59.73%). Related party holdings are disclosed in the Portfolio Statement. The revenue earned from these investments of £1,454,426 (2019 – £376,174) is included under Revenue in the Notes to the Accounts.

Schroder Multi-Asset Total Return Fund Final Report and Accounts 215 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

15 Share classes The Fund currently has seven share class. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

I Income shares 0.55% L Accumulation shares 0.55% L Income shares 0.55% X Accumulation shares 0.00% X Income shares 0.00% Z Accumulation shares 0.625% Z Income shares 0.625%

The closing net asset value of each share classes, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 201 to 204. The distributions per share class are given in the Distribution Table on page 223. All classes have the same rights on winding up.

16 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, derivative, foreign currency, liquidity, credit and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior year.

Schroder Multi-Asset Total Return Fund Final Report and Accounts 216 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average Rate. Foreign currency bank balances and amounts held or overdrawn at futures clearing houses and brokers bear interest at rates based on the London Interbank Offer Rate or its international equivalent.

Derivatives During the year the Fund entered into derivative contracts for specific investment purposes in addition to being used for efficient management.

Regulatory VaR limit utilisation

2020 2019

Lowest Highest Average Lowest Highest Average 15.00% 30.00% 22.68% 5.00% 15.00% 11.08%

Information on VaR Model

2020 2019

Length Length of data Confidence Holding of data Confidence Holding Model type history level period history level period All available Parametric VaR history 99.00% 20 days - - -

All available MonteCarlo simulation - - - history 99.00% 20 days

Leverage Information on the limit usage and level of leverage ; The level of leverage is an indication of the derivative usage and of any leverage generated by the reinvestment of cash received as collateral when using efficient portfolio management techniques. It does not take into account other physical assets directly held in the portfolio of the Fund. The figure is not representative of the maximum amount that a Fund could lose, as it includes the derivatives used to protect the Net Asset Value of a Fund as well as the derivatives backed by risk free assets and derivatives which do not generate any incremental exposure, leverage or market risk from an economic perspective. The reported leverage figure is therefore not a true representation of the economic leverage1 in the Fund. The level of leverage disclosed is based on the total notional value2 of all derivative instruments held by a Fund and is expressed as a percentage of the Fund’s Net Asset Value. For the purpose of this calculation the holdings and offset derivative positions (long and short positions) do not cancel each other out and the figure is a sum of the total holdings.

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 239.90% 969.30% 397.82% 292.40% 6.00% 1160.00% 443.60% 385.00%

Schroder Multi-Asset Total Return Fund Final Report and Accounts 217 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

17 Debt securities credit analysis 2020 2019 £000’s £000’s

Investment grade securities 40,190 83,769 Total debt securities 40,190 83,769

18 Direct transaction costs The transaction costs on the purchase or sale of investments incurred by the Fund during 31 December 2020 were immaterial. The total purchases for the year amounted to £137,218,101 (2019 – £352,252,209) and the total sales amounted to £188,668,281 (2019 – £253,042,591). Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.38% (2019 – 0.11%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 19 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 I Accumulation shares 86,219,735 123,894 (86,343,629) – – I Income shares 34,215,099 – – – 34,215,099 L Accumulation shares 1,059,219 222,438 (635,592) – 646,065 L Income shares 40,740 4,741 (303) – 45,178 X Accumulation shares 178,202,632 17,855,349 (21,452,049) – 174,605,932 X Income shares 2,000 – – – 2,000 Z Accumulation shares 538,816 201,083 (322,709) – 417,190 Z Income shares 19,108 – (17,108) – 2,000

20 Counterparty exposure The types of derivatives held at the balance sheet date were forward foreign currency contracts, contracts for difference and commodity index swap. Details of individual contracts are disclosed in the Portfolio Statement and the total position by counterparty at the balance sheet date was as follows:

Schroder Multi-Asset Total Return Fund Final Report and Accounts 218 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Forward foreign Credit Commodity Contract Interest Total Inflation currency default index for rate return linked Options Swaption contracts swaps swaps difference swaps swaps swaps contracts contracts Total Counterparty £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s Deutsche Bank 2020 (43) – – – – – – – – (43) 2019 63 – – – – – – – – 63 Goldman Sachs 2020 51 – – – – – – – – 51 2019 8 – – – – – – – – 8 HSBC 2020 (134) – – – – – – (3) – (137) 2019 1,453 – – (39) – – – – – 1,414 J.P. Morgan 2020 52 – 35 – – – – (6) – 81 2019 (570) – 41 (37) – – – – – (566) Morgan Stanley 2020 (55) – – – – – – – – (55) 2019 28 – – – – – – – – 28 Nomura 2020 1 – – – – – – – – 1 2019 – – – – – – – – – – RBC 2020 2 – – – – – – – – 2 2019 (51) – – – – – – – – (51) Standard Chartered 2020 10 – – – – – – – – 10 2019 (34) – – – – – – – – (34) State Street 2020 (116) – – – – – – – – (116) 2019 (185) – – – – – – – – (185) UBS 2020 (237) – – – – – – – – (237) 2019 8 – – – – – – – – 8

The collateral held/(pledged) by the Fund on behalf of the counterparties at the balance sheet date was as follows:

2020 2019 Counterparty £000’s £000’s

BNP Paribas 700 300 HSBC – 680 J.P. Morgan – (290) UBS (270) – Total 430 690

The nature of collateral held/(pledged) by the Fund on behalf of the counterparties at the balance sheet date was as follows:

2020 2019 £000’s £000’s

Cash 430 690 Total 430 690

Schroder Multi-Asset Total Return Fund Final Report and Accounts 219 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

21 Non-adjusting post balance sheet events As a result of market movements and foreign exchange rates, since the balance sheet date on 31 December 2020, the price of each share class has changed as follows:

Dealing price Dealing price 23.4.21 31.12.20 % change I Income shares 51.25p 51.23p 0.04 L Accumulation shares 52.09p 51.58p 0.99 L Income shares 51.23p 51.17p 0.12 X Accumulation shares 53.25p 52.65p 1.14 X Income shares 51.39p 51.50p (0.21) Z Accumulation shares 51.98p 51.48p 0.97 Z Income shares 51.21p 51.11p 0.20

Schroder Multi-Asset Total Return Fund Final Report and Accounts 220 31 December 2020 Securities Financing Transactions

The Fund engaged in Securities Financing Transactions (as defined in Article 3 of Regulation (EU) 2015/2365, these include repurchase transactions, securities or commodities lending and securities or commodities borrowing, buy-sell back transactions or sell-buy back transactions, margin lending transactions and Total Return Swaps). In accordance with Article 13 of the Regulation, the Fund’s involvement in and exposures related to Securities Financing Transactions (SFTs) for the accounting year ended 31 December 2020 are detailed below. Global data Amount of assets engaged in each type of Securities Financing Transactions and Total Return Swaps The following table represents the fair value of assets engaged in each type of Securities Financing Transactions (including Total Return Swaps) was as follows:

Amount of assets % of AUM £000’s Total Return Swaps 703 0.64%

Concentration data Ten largest collateral issuers As at 31 December 2020, there are no collateral securities and commodities received in respect of Total Return Swaps.

Top ten counterparties The following table provides details of the top ten counterparties (based on gross volume of outstanding transactions), in respect of Securities Financing Transactions and Total Return Swaps, as at the reporting date.

Counterparty Outstanding Transactions £000’s Total Return Swaps J.P. Morgan 703

Aggregate transaction data Type and quality of collateral As at the balance sheet date, no collateral was received in respect of Total Return Swaps. Maturity tenor of collateral As at the balance sheet date, no collateral was received in respect of Total Return Swaps. Currency of collateral As at the balance sheet date, no collateral was received in respect of Total Return Swaps.

Maturity tenor of Securities Financing Transactions and Total Return Swaps The following table provides an analysis of the maturity tenor in respect to Securities Financing Transactions and Total Return Swaps, as at the reporting date.

Less than 1 1 to 7 1 to 4 1 to 3 3 to 12 More than Open Maturity day days weeks months months 1 year maturity Total £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s Total Return Swaps – – – 703 – – – 703

Country in which counterparties are established The following table provides details of the country of incorporation of counterparties across all Securities Financing Transactions and Total Return Swaps, as at the reporting date.

Counterparty Country of Incorporation J.P. Morgan United Kingdom

Settlement and clearing

Type Settlement Total Value outstanding £000’s Total Return Swaps Bilateral 703

Schroder Multi-Asset Total Return Fund Final Report and Accounts 221 31 December 2020 Securities Financing Transactions (continued)

Safekeeping of collateral Collateral received As at the balance sheet date, no collateral was received in respect of Total Return Swaps. Collateral granted As at the balance sheet date, no collateral was granted in respect of Total Return Swaps. Return and cost Gross Return All returns from Total Return Swaps transactions accrue to the fund and are not subject to any returns sharing arrangements with the Authorised Corporate Director or any other third party. Returns from those instruments are disclosed in note 2 to the financial statements.

Total Return Swaps % of return* overall £000’s returns Net realised gains 113 76.35 Net change in unrealised gains 35 23.65 Total 148 100.00

*Expressed in absolute terms.

Schroder Multi-Asset Total Return Fund Final Report and Accounts 222 31 December 2020 Distribution Table

Final distribution for the year ended 31 December 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share I Accumulation shares Group 1 –† – – † 0.4747p Group 2 – † – † – † 0.4747p I Income shares Group 1 0.4945p – 0.4945p 0.1476p Group 2 0.4945p – 0.4945p 0.1476p L Accumulation shares Group 1 0.4398p – 0.4398p 0.0915p Group 2 0.1045p 0.3353p 0.4398p 0.0915p L Income shares Group 1 0.4381p – 0.4381p 0.3495p Group 2 0.4381p – 0.4381p 0.3495p X Accumulation shares Group 1 0.7271p – 0.7271p 0.3749p Group 2 0.6778p 0.0493p 0.7271p 0.3749p X Income shares Group 1 0.7010p – 0.7010p 1.1700p Group 2 0.7010p – 0.7010p 1.1700p Z Accumulation shares Group 1 0.4071p – 0.4071p 0.0601p Group 2 0.1436p 0.2635p 0.4071p 0.0601p Z Income shares Group 1 0.3894p – 0.3894p 0.4038p Group 2 0.3894p – 0.3894p 0.4038p

I Accumulation shares † The share class was closed on 26 November 2020. Equalisation Equalisation applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of Group 2 shares and is refunded to the holders of these shares as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

Schroder Multi-Asset Total Return Fund Final Report and Accounts 223 31 December 2020 Schroder India Equity Fund Fund Information

Investment objective and policy The Schroder India Equity Fund (the ‘Fund’) aims to provide capital growth in excess of the MSCI India (Net Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of Indian companies. The Fund invests at least 80% of its assets in equity and equity related securities of Indian companies or companies which have their principal business activities in India. Typically, the Fund holds 30 to 70 companies. 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 other Schroder funds), warrants and money market instruments, and hold cash. The Fund may use derivatives with the aim of reducing risk or managing the Fund more efficiently (for more information please refer to section 6 of Appendix I of the Prospectus). Fund characteristics The Fund's performance should be assessed against its target benchmark, being to exceed the MSCI India (Net Total Return) index. The Investment Adviser invests on a discretionary basis and is not limited to investing in accordance with the composition of this benchmark. The target benchmark has been selected because it is representative of the type of investments in which the Fund is likely to invest, and it is, therefore, an appropriate target in relation to the return that the Fund aims to provide. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder India Equity Fund Final Report and Accounts 224 31 December 2020 Review of Investment Activities

From 31 December 2019 to 31 December 2020, the price of Z Accumulation Fund Manager: shares on a dealing price basis rose 14.20%. In the same period, the MSCI Asian Investment Team India index generated a net return of 11.99%1 in sterling terms.

Indian equity markets saw a sharp drawdown in March 2020 before starting a strong move upwards for the rest of the year. The pandemic caused the markets to rearrange with The Fund is managed by the Schroders Asian investment preferences for healthcare and information technology. The portfolio has been changed to team and advised by Axis AMC, who have eleven investment reflect the changes in the markets. The overweight to financials and consumer discretionary professionals based in Mumbai. Axis AMC is a joint venture has been reduced and our exposure to health care and information technology has between Axis Bank and Schroders increased. The notable exits are Bandhan Bank and ICICI Bank in financials and Wabco India in consumer discretionary. Infosys in the information technology sector has been a new addition in the portfolio along with Gland Pharma and Dr. Reddy’s Laboratories in the healthcare sector. Average overweight exposures to consumer staples, financials and communication services contributed to the returns whereas average underweight exposure to information technology and nil exposure to energy detracted from the returns. At a stock level, our overweight exposure to Info Edge India. and Divi’s Laboratories Limited were the largest contributors to the returns whereas nil exposure to Reliance Industries and average underweight exposure to Infosys Limited detracted from the returns.

Schroder India Equity Fund Final Report and Accounts 225 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

The risk category was calculated using simulated 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 India Equity Fund Final Report and Accounts 226 31 December 2020 Comparative Table

L Accumulation shares X Accumulation shares Z Accumulation shares 2020 2019 2020 2019 2020 2019 Financial year to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 49.25 50.00 49.46 50.00 49.26 50.00 Return before operating charges* 7.41 (0.51) 7.50 (0.50) 7.40 (0.45) Operating charges (0.44) (0.24) (0.08) (0.04) (0.52) (0.29) Return after operating charges* 6.97 (0.75) 7.42 (0.54) 6.88 (0.74)

Distributions1 – (0.10) (0.30) (0.30) – (0.10) Retained distributions1 – 0.10 0.30 0.30 – 0.10 Closing net asset value 56.22 49.25 56.88 49.46 56.14 49.26

*after direct transaction costs of (0.08) (0.11) (0.08) (0.11) (0.08) (0.11) – – – – – – Performance

Return after charges (%) 14.15 (1.50) 15.00 (1.08) 13.97 (1.48) – – – – – – Other information

Closing net asset value (£000's) 1 1 29,200 20,774 707 61 Closing number of shares 2,000 2,000 51,337,000 42,000,000 1,258,534 123,170 Operating charges (%) 1.00 0.94 0.18 0.12 1.07 1.01 Direct transaction costs (%)** 0.17 0.23 0.17 0.23 0.17 0.23 – – – – – – Prices

Highest dealing price 56.38p 51.41p 57.04p 51.50p 56.31p 51.41p Lowest dealing price 37.66p 46.46p 37.88p 46.54p 37.65p 46.46p

The Fund was launched on 7 June 2019. 1 These figures have been rounded to 2 decimal places. ** Direct transaction costs have been stated after deducting the proportion of the amounts collected from dilution adjustments. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 India Equity Fund Final Report and Accounts 227 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets Equities 96.62% (95.65%) Info Edge India 33,319 1,592 5.32 3,556 11.89 Basic Materials 5.45% (3.87%) Telecommunications 0.00% (0.67%) PI Industries 14,529 319 1.06 Pidilite Industries 74,262 1,312 4.39 Utilities 3.33% (4.14%) 1,631 5.45 Torrent Power 314,119 995 3.33 Industrials 4.99% (5.85%) 995 3.33

Astral Poly Technik 47,344 806 2.69 Financials 30.55% (43.36%) Shree Cement 2,858 687 2.30 Bajaj Finance 35,271 1,867 6.24 1,493 4.99 Cholamandalam Investment and Consumer Goods 18.30% (18.96%) Finance 146,392 567 1.90 Endurance HDFC Bank 159,063 2,293 7.67 Technologies 49,543 665 2.22 Housing Maruti Suzuki India 18,125 1,389 4.64 Development Motherson Sumi Finance 47,210 1,207 4.03 Systems 707,975 1,171 3.92 Kotak Mahindra Nestle India 6,378 1,174 3.93 Bank 93,233 1,862 6.23 Page Industries 232 64 0.21 MAS Financial Services 34,763 321 1.07 Symphony 24,149 248 0.83 Multi Commodity TTK Prestige 12,423 762 2.55 Exchange of India 17,946 309 1.03 5,473 18.30 Sundaram Finance 39,488 711 2.38 Health Care 11.15% (2.26%) 9,137 30.55 Divi's Laboratories 36,856 1,417 4.74 Technology 10.96% (6.43%) Dr Reddy's Infosys 112,391 1,410 4.71 Laboratories 16,527 862 2.88 Tata Consultancy Gland Pharma 42,470 994 3.32 Services 65,179 1,869 6.25 Natco Pharma 6,397 61 0.21 3,279 10.96 3,334 11.15 Equities total 28,898 96.62 Consumer Services 11.89% (10.11%) Portfolio of investments 28,898 96.62 Avenue Supermarts 62,505 1,725 5.77 Indian Hotels 198,415 239 0.80 Net other assets 1,010 3.38 Net assets attributable to shareholders 29,908 100.00

The comparative percentage figures in brackets are as at 31 December 2019. Unless otherwise stated, all securities are admitted to official stock exchange listings.

Schroder India Equity Fund Final Report and Accounts 228 31 December 2020 Statement of Total Return For the year ended 31 December 2020

Restated* 7.6.19 to 2020 31.12.19 Notes £000's £000's £000's £000's Income Net capital gains/(losses) 2 – 4,533 – (82) Revenue 3 199 – 136 – Expenses 4 (28) – (8) – Net revenue before taxation 171 – 128 – Taxation 5 (1,045) – (272) – Net revenue after taxation (874) (144) Total return before distributions 3,659 (226) Distributions 6 (151) (128) Change in net assets attributable to shareholders from investment activities 3,508 (354)

Statement of Change in Net Assets Attributable to Shareholders For the year ended 31 December 2020

7.6.19 to 2020 31.12.19 £000's £000's £000's £000's Opening net assets attributable to shareholders 20,836 – Amounts receivable on issue of shares 5,546 – 21,091 – Amounts payable on cancellation of shares (146) – (29) – 5,400 21,062 Dilution adjustment 12 – Change in net assets attributable to shareholders from investment activities 3,508 (354) Retained distribution on Accumulation shares 152 128 Closing net assets attributable to shareholders 29,908 20,836

Balance Sheet As at 31 December 2020

2020 2019 Notes £000's £000's Assets Investments 28,898 19,929 Current assets Debtors 8 3 – Cash and bank balances 2,050 1,183 Total assets 30,951 21,112 – – Liabilities – – Creditors Other creditors 9 (1,043) (276) Total liabilities (1,043) (276) – – Net assets attributable to shareholders 29,908 20,836

* The comparative Financial Statements have been restated in respect of the reclassification of Indian Capital Gains Tax. Details of the restatement are detailed in notes 2, 5 and 6 on pages 230 and 231.

Schroder India Equity Fund Final Report and Accounts 229 31 December 2020 Notes to the Accounts For the year ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder India Equity Fund are disclosed on pages 9 to 10. 2 Net capital gains/(losses) The net capital gains/(losses) during the year/period comprise:

Restated 7.6.19 to 2020 31.12.19 £000's £000's Non-derivative securities 4,571 219 Derivative contracts – (245) Foreign currency losses (20) (49) Transaction costs (18) (7) Net capital gains/(losses) 4,533 (82)

Net capital losses for the prior year have been restated from (£354,000) to (£82,000), being the reclassification of Indian Capital Gains Tax to Note 5. 3 Revenue 7.6.19 to 2020 31.12.19 £000's £000's Overseas dividends 198 132 Bank interest 1 4 Total revenue 199 136

4 Expenses 7.6.19 to 2020 31.12.19 £000's £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 2 – Administration charge 1 – 3 – Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 3 1 Safe custody fees 10 5 13 6 Other expenses:

Audit fee 12 –1 Professional fee – 2 12 2 Total expenses 28 8

1 The Audit fee of £9,960 (inclusive of VAT) was invoiced directly to the Authorised Corporate Director.

Schroder India Equity Fund Final Report and Accounts 230 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Analysis of the tax charge for the year/period Restated 7.6.19 to 2020 31.12.19 £000's £000's Overseas withholding tax 21 – Indian capital gains tax 1,024 272 Total current tax (Note 5(b)) 1,045 272

Total current tax for the prior year has been restated from £0 to £272,000, being the reclassification of Indian Capital Gains Tax from Note 2.

(b) Factors affecting the current tax charge for the year/period The tax assessed for the year is different from that calculated when the standard rate of corporation tax for Open Ended Investment Companies of 20% (2019 – 20%) is applied to the net revenue before taxation. The differences are explained below.

Restated 7.6.19 to 2020 31.12.19 £000’s £000’s Net revenue before taxation 171 128

Net revenue for the year/period before taxation multiplied by the standard rate of corporation tax 34 26 Effects of:

Overseas capital gains tax 1,024 272 Revenue not subject to corporation tax (39) (27) Movement in excess management expenses 5 1 Irrecoverable overseas withholding tax 21 – Current tax charge for the year/period (Note 5(a)) 1,045 272

Current tax charge for the year/period for the prior year has been restated from £0 to £272,000, being the reclassification of Indian Capital Gains Tax from Note 2.

(c) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £6,265 (2019 – £883) in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the year or prior period. 6 Distributions The distributions, take account of revenue received on the issue of shares, and comprise:

Restated 7.6.19 to 2020 31.12.19 £000’s £000’s Final Dividend distribution 152 128 Deduct: Revenue received on issue of shares (1) – Distributions 151 128

Net expense after taxation (874) (144) Deficit taken to capital 1 – Overseas capital gains tax 1,024 272 Distributions 151 128

Net expense after taxation for the prior year has been restated from £128,000 to (£144,000), following the reclassification of Indian Capital Gains Tax from Note 2 to Note 5. Details of the distributions per share are set out in the Distribution Table on page 236.

Schroder India Equity Fund Final Report and Accounts 231 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

7 Fair value hierarchy Instruments held at the year/period end are presented in line with amendments to FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland Fair value hierarchy disclosures.

2020 2019 Assets Liabilities Assets Liabilities Basis of valuation £000’s £000’s £000’s £000’s Level 1: Quoted prices 28,898 – 19,828 – Level 2: Observable market data – – – – Level 3: Unobservable data – – 101 – Total 28,898 – 19,929 –

8 Debtors

2020 2019 £000's £000's Amounts receivable for issue of shares 3 – Total debtors 3 –

9 Other creditors

2020 2019 £000's £000's Amounts payable for cancellation of shares – 1 Accrued expenses 19 3 Indian capital gains tax 1,024 272 Total other creditors 1,043 276

10 Contingent liabilities There were no contingent liabilities at the balance sheet date (2019 – Nil). 11 Related party transactions The Authorised Corporate Director exercises control over the Fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the year/period or due to the Authorised Corporate Director at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies received through the issue and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and Distributions in the Notes to the Accounts. Amounts due from or to the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Debtors and Other creditors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 60.87% (2019 – 75.97%).

Schroder India Equity Fund Final Report and Accounts 232 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

12 Share classes The Fund currently has three share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

L Accumulation shares 0.675% X Accumulation shares 0.00% Z Accumulation shares 0.75%

The closing net asset value of each share classes, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on page 227. The distributions per share class are given in the Distribution Table on page 236. All classes have the same rights on winding up. 13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the year and the prior period.

Currency risk profile The currency risk profile of the Fund’s net assets and liabilities at the balance sheet date was as follows:

2020 2019 Currency £000’s £000’s Indian rupee 28,899 19,929 Sterling 1,009 907

Schroder India Equity Fund Final Report and Accounts 233 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Interest rate risk profile of financial assets and financial liabilities The interest rate risk profile of financial assets and financial liabilities at the balance sheet date was as follows:

There are no material amounts of non-interest bearing ﬁnancial assets, other than equities, which do not have a maturity date.

Leverage

2020 2019 Leverage Leverage Lowest Highest Average 31 December Lowest Highest Average 31 December 0.00% 0.00% 0.00% 0.00% 0.00% 3.44% 0.33% 0.00%

Schroder India Equity Fund Final Report and Accounts 234 31 December 2020 Notes to the Accounts For the year ended 31 December 2020 (continued)

Principal Commissions Taxes Total cost Commissions Taxes % of 2020 £000's £000's £000's £000's % of principal principal Purchases

Equities 16,845 12 18 16,875 0.07 0.11

Sales

Equities 12,226 (9) (13) 12,204 (0.07) (0.11)

Total cost of the Fund's average net asset value (%) 0.08 0.13

7.6.19 to Principal Commissions Taxes Total cost Commissions Taxes % of 31.12.19 £000's £000's £000's £000's % of principal principal Purchases

Equities 22,616 18 25 22,659 0.08 0.11

Sales

Equities 2,954 (2) (3) 2,949 (0.07) (0.10)

Total cost of the Fund's average net asset value (%) 0.10 0.13

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.14% (2019 – 0.12%). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue of shares of shares of shares in issue 31.12.19 issued cancelled converted 31.12.20 L Accumulation shares 2,000 – – – 2,000 X Accumulation shares 42,000,000 9,337,000 – – 51,337,000 Z Accumulation shares 123,170 1,453,459 (318,095) – 1,258,534

Dealing price Dealing price 23.4.21 31.12.20 % change L Accumulation shares 55.42p 56.30p (1.67) X Accumulation shares 56.20p 57.02p (1.44) Z Accumulation shares 55.32p 56.29p (1.72)

Schroder India Equity Fund Final Report and Accounts 235 31 December 2020 Distribution Table

Final distribution for the year ended 31 December 2020 Group 1 Shares purchased prior to 1 January 2020 Group 2 Shares purchased on or after 1 January 2020

Net Distribution Distribution revenue Equalisation payable paid 2020 2020 28.2.21 28.2.20 per share per share per share per share L Accumulation shares Group 1 – – – 0.1000p Group 2 – – – 0.1000p X Accumulation shares Group 1 0.2963p – 0.2963p 0.3043p Group 2 0.2932p 0.0031p 0.2963p 0.3043p Z Accumulation shares Group 1 – – – 0.0984p Group 2 – – – 0.0984p

Schroder India Equity Fund Final Report and Accounts 236 31 December 2020 Schroder Islamic Global Equity Fund Fund Information

Investment objective and policy The Schroder Islamic Global Equity Fund (the ‘Fund’) aims to provide capital growth in excess of the Dow Jones Islamic Market World (Net Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity-related securities of companies worldwide. The Fund is actively managed and invests its assets in equity and equity-related securities of Shariah compliant companies worldwide. The Fund also focuses on a range of equity factors (also commonly known as investment styles). Companies will be simultaneously assessed on all targeted equity factors using a fully integrated systematic, bottom-up investment approach. The Fund will focus on a range of equity factors (also commonly known as investment styles) that may include the following: • Low volatility – involves evaluating indicators such as share price movement and historical performance to determine those securities that the Investment Adviser believes will experience smaller price movements than the global equity markets on average. • Momentum – involves evaluating trends in stocks, sectors or countries within the relevant equity market. • Quality – involves evaluating indicators such as a company’s profitability, stability and financial strength. • Value – involves evaluating indicators such as cash flows, dividends and earnings to identify securities that the Investment Adviser believes have been undervalued by the market. • Small cap – involves investing in small-sized companies being companies that, at the time of purchase, are considered to be in the bottom 30% by market capitalisation of the global equity market and exhibit attractive characteristics based on the styles described above. The Fund may also hold cash. The Fund may also hold warrants acquired as a result of corporate actions performed by the issuers of the Fund’s equity holdings. The Fund will not otherwise invest in warrants. The Fund will not use derivatives. The Fund is limited to investing in accordance with the composition of the benchmark but has the discretion to vary the weightings in the benchmark’s securities. Fund characteristics The Fund's performance should be assessed against its constraining benchmark being the Dow Jones Islamic Market World (Net Total Return) index. The Investment Adviser is limited to investing in accordance with the composition of the benchmark but has the discretion to vary the weightings in the benchmark’s securities. The benchmark has been selected because the Investment Adviser is constrained by reference to the value, price or components of that benchmark as stated in the investment objective. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder Islamic Global Equity Fund Final Report and Accounts 237 31 December 2020 Review of Investment Activities

From 10 November 2020 to 31 December 2020, the price of Q2 Accumulation Fund Manager: shares on a dealing price basis rose 4.60%. In line with this, the Dow Jones Systematic Investment Team led by Ashley Lester, 1 Islamic Market World index generated a total return of 4.49% . PhD Global equities rose thanks to government support measures and as a number of vaccine breakthroughs in the fourth quarter fostered hopes of a return to economic normality. The Schroders Systematic Investment Team was established Just prior to the fund’s inception, markets rallied amid positive new around the coronavirus vaccine. As in previous sudden Covid-recovery events, Profitability and Momentum sold off, in 2011 and manages £18 billion (as at 31 October while Value and Governance rebounded. In the post-rally environment, the fund’s exposure 2020) across a range of quantitative equity strategies to Governance was the top contributor to excess returns. Momentum also provided some The investment team consists of 13 members based in support as it recovered from the sharp sell-off. Unfortunately, the fund missed out on the London Value rally and as such the factor had muted returns over this period. Profitability was the top detractor from performance as it continued to lose ground. Residual Size exposure was also a slight drag. However, this was not enough to offset the gains elsewhere, which left the fund ahead of benchmark since inception.

Schroder Islamic Global Equity Fund Final Report and Accounts 238 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

The risk category was calculated using simulated 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 Islamic Global Equity Fund Final Report and Accounts 239 31 December 2020 Comparative Table

Q2 Accumulation Z Accumulation shares shares 2020 2020 Financial period to 31 December p per share p per share Change in net asset value

Opening net asset value 50.00 50.00 Return before operating charges* 2.11 0.55 Operating charges (0.02) (0.01) Return after operating charges* 2.09 0.54

Distributions1 (0.08) (0.04) Retained distributions1 0.08 0.04 Closing net asset value 52.09 50.54

*after direct transaction costs of (0.02) (0.02) – – Performance

Return after charges (%) 4.18 1.08 – – Other information

Closing net asset value (£000's) 127,218 1 Closing number of shares 244,230,896 2,000 Operating charges (%) 0.40 0.53 Direct transaction costs (%)** 0.04 0.04 – – Prices

Highest dealing price 53.12p 51.53p Lowest dealing price 50.00p 50.00p

Z Accumulation and Q2 Accumulation shares The share class was launched on 4 December 2020 and 10 November 2020. 1 These figures have been rounded to 2 decimal places. ** Direct transaction costs have been stated after deducting the proportion of the amounts collected from dilution adjustments. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 Islamic Global Equity Fund Final Report and Accounts 240 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets

Equities 99.39% Denmark 1.90% Australia 1.65% Coloplast B 8,968 1,004 0.79 AGL Energy 125,928 849 0.67 Novo Nordisk B 25,926 1,336 1.05 Brambles 10,661 64 0.05 Pandora 852 70 0.06 Fortescue Metals 2,410 1.90 Group 84,996 1,124 0.88 Finland 0.88% Wesfarmers 2,328 66 0.05 Kone B 17,757 1,058 0.83 2,103 1.65 Valmet 3,212 67 0.05 Austria 0.23% 1,125 0.88 Oesterreichische Post 11,499 296 0.23 France 0.15% 296 0.23 Hermes International 82 65 0.05 Bermuda 0.19% Schneider Electric 602 64 0.05 Johnson Electric Ubisoft Holdings 98,000 178 0.14 Entertainment 857 60 0.05 Luk Fook Holdings 189 0.15 International 34,000 59 0.05 237 0.19 Germany 0.05% SAP 698 67 0.05 Brazil 0.24% 67 0.05 WEG 28,590 305 0.24 305 0.24 Hong Kong 0.01% Link REIT 1,000 7 0.01 Canada 0.95% 7 0.01 B2Gold 13,517 55 0.04 Centerra Gold 8,764 74 0.06 Hungary 0.30% CGI A 1,153 68 0.05 Richter Gedeon 20,920 385 0.30 Constellation 385 0.30 Software 1,059 1,008 0.79 India 1.18% Topicus.com 1,969 5 0.01 Dr Reddy's 1,210 0.95 Laboratories ADR 1,273 66 0.05 Cayman Islands 4.43% Infosys ADR 101,307 1,255 0.99 Alibaba Group Wipro ADR 43,878 181 0.14 Holding ADR 4,965 843 0.66 1,502 1.18 China Feihe 39,000 67 0.05 Indonesia 0.36% China Medical System Holdings 571,000 467 0.37 Unilever Indonesia 1,202,200 460 0.36 China Resources 460 0.36 Cement Holdings 72,000 59 0.05 Ireland 3.97% Farfetch A 2,268 105 0.08 Accenture A 8,440 1,597 1.25 GSX Techedu ADR 2,042 78 0.06 Eaton 11,722 1,027 0.81 Hansoh Pharmaceutical Medtronic 16,970 1,446 1.14 Group 268,000 939 0.74 nVent Electric 53,890 920 0.72 IGG 88,000 67 0.05 Pentair 1,525 59 0.05 Meituan 2,500 70 0.06 5,049 3.97 Pagseguro Digital A 1,840 77 0.06 Japan 3.81% Tencent Holdings 34,900 1,857 1.46 Denso 3,100 135 0.11 Topsports Dip 6,600 129 0.10 International Holdings 919,000 1,004 0.79 FCC 4,300 54 0.04 5,633 4.43 Hoya 5,000 505 0.40 McDonald's China 0.60% Holdings Co. Japan 25,800 915 0.72 Anhui Conch Nintendo 2,800 1,305 1.03 Cement H 147,500 676 0.53 Nomura Research WuXi AppTec H 5,800 83 0.07 Institute 27,000 707 0.55 759 0.60 Optorun 52,700 788 0.62 SCSK 1,400 58 0.04

Schroder Islamic Global Equity Fund Final Report and Accounts 241 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Tokyo Electron 700 190 0.15 TE Connectivity 12,116 1,071 0.84 Trend Micro 1,500 63 0.05 7,559 5.94 4,849 3.81 Taiwan 2.28% Jersey 0.72% ASE Technology Centamin 744,994 921 0.72 Holding ADR 140,330 600 0.47 Taiwan 921 0.72 Semiconductor Malaysia 0.97% Manufacturing ADR 28,842 2,301 1.81 KLCCP Stapled 2,901 2.28 Group REIT 12,000 16 0.01 Thailand 0.01% Sime Darby 137,900 58 0.05 PTT Exploration & Top Glove 405,400 451 0.35 Production NVDR 7,500 18 0.01 UWC 396,700 706 0.56 18 0.01 1,231 0.97 Turkey 0.61% Netherlands 1.83% Alkim Alkali Kimya 532,426 781 0.61 Aalberts 2,092 68 0.05 781 0.61 Adyen 708 1,207 0.95 United Kingdom 2.87% Koninklijke Philips 26,917 1,055 0.83 Atlassian A 430 74 0.06 2,330 1.83 Auto Trader Group 11,077 66 0.05 Norway 0.05% Avast 11,538 62 0.05 Adevinta 5,364 66 0.05 BHP Group 77,155 1,485 1.17 66 0.05 Games Workshop Group 2,984 334 0.26 South Africa 1.18% Pagegroup 62,492 280 0.22 Kumba Iron Ore 32,421 1,006 0.79 Rio Tinto 24,667 1,349 1.06 Truworths International 269,000 492 0.39 3,650 2.87 1,498 1.18 United States of America 59.22% South Korea 0.40% 3M 10,189 1,297 1.02 APTC 5,304 71 0.06 A O Smith 1,482 59 0.05 DB HiTek 2,602 89 0.07 Abbott Laboratories 20,533 1,630 1.28 Samsung Biologics 117 65 0.05 Adobe 4,910 1,785 1.40 Sinil Pharm 4,008 63 0.05 Advanced Micro Devices 4,129 276 0.22 SK Hynix 2,727 217 0.17 Alphabet A 3,741 4,782 3.76 505 0.40 American Tower Spain 0.77% REIT 1,540 250 0.20 Industria de Diseno Amgen 7,910 1,318 1.04 Textil 41,875 976 0.77 Apple 91,545 8,875 6.98 976 0.77 Applied Materials 1,093 69 0.05 Autodesk 5,398 1,197 0.94 Sweden 1.64% AvalonBay Atlas Copco A 1,673 63 0.05 Communities REIT 141 16 0.01 Epiroc A 75,712 1,014 0.80 Best Buy 13,628 1,000 0.79 Husqvarna B 105,472 1,003 0.79 Biogen 324 57 0.04 2,080 1.64 Brunswick 17,296 980 0.77 Switzerland 5.94% Cadence Design dormakaba Holding 154 64 0.05 Systems 708 70 0.05 EMS-Chemie Camden Property Holding 1,370 967 0.76 Trust REIT 235 17 0.01 Geberit 132 61 0.05 Carter's 1,010 70 0.06 Kuehne + Nagel Cerner 1,106 63 0.05 International 5,695 946 0.75 Chemed 2,583 993 0.78 Nestle 18,155 1,567 1.23 Cisco Systems 50,095 1,625 1.28 Novartis 950 66 0.05 Citrix Systems 10,096 950 0.75 Roche Holding 7,367 1,884 1.48 Clorox 6,928 1,017 0.80 Sonova Holding 4,904 933 0.73

Schroder Islamic Global Equity Fund Final Report and Accounts 242 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Cognizant Microsoft 44,020 7,096 5.58 Technology Moderna 9,328 720 0.57 Solutions A 17,955 1,070 0.84 MSCI 31 10 0.01 Colgate-Palmolive 19,514 1,209 0.95 NIKE B 626 65 0.05 ConocoPhillips 641 19 0.01 NVIDIA 1,018 388 0.30 CoreSite Realty REIT 91 8 0.01 Old Dominion Crowdstrike Freight Line 395 56 0.04 Holdings A 618 95 0.07 Pfizer 2,300 61 0.05 CubeSmart REIT 775 19 0.01 Pool 3,732 1,008 0.79 Danaher 355 57 0.04 PotlatchDeltic REIT 533 19 0.01 DocuSign 392 64 0.05 Procter & Gamble 4,040 407 0.32 Duke Realty REIT 284 8 0.01 Prologis REIT 2,134 154 0.12 EastGroup Properties REIT 182 18 0.01 PS Business Parks REIT 174 17 0.01 Eli Lilly 2,670 327 0.26 Public Storage REIT 1,529 254 0.20 Emerson Electric 18,186 1,065 0.84 Quest Diagnostics 10,690 925 0.73 EOG Resources 195 7 0.01 Reliance Steel & Equinix REIT 238 123 0.10 Aluminum 721 63 0.05 Equity LifeStyle Robert Half Properties REIT 415 19 0.01 International 21,181 963 0.76 Facebook A 16,852 3,353 2.64 Rockwell Fastenal 7,969 283 0.22 Automation 5,291 966 0.76 Fortinet 10,224 1,107 0.87 ServiceNow 162 65 0.05 Fortune Brands Sherwin-Williams 111 60 0.05 Home & Security 986 62 0.05 Skyworks Solutions 567 64 0.05 Gentex 4,381 109 0.09 Stanley Black & Gilead Sciences 25,626 1,073 0.84 Decker 451 59 0.05 GoDaddy A 1,093 66 0.05 Sun Communities Hershey 525 58 0.05 REIT 60 7 0.01 Home Depot 10,159 1,970 1.55 Target 9,065 1,168 0.92 Honeywell Tesla 1,711 895 0.70 International 438 68 0.05 Texas Instruments 12,494 1,497 1.18 IDEXX Laboratories 3,176 1,150 0.90 Thermo Fisher Illinois Tool Works 7,701 1,141 0.90 Scientific 169 57 0.04 Intel 46,617 1,688 1.33 TJX 1,328 66 0.05 Intuit 230 64 0.05 Union Pacific 425 65 0.05 Johnson & Johnson 21,188 2,419 1.90 United Parcel Service B 1,050 128 0.10 Kimberly-Clark 11,085 1,084 0.85 Veeva Systems A 308 61 0.05 Lennox International 4,842 965 0.76 VeriSign 6,418 1,009 0.79 Levi Strauss A 35,148 522 0.41 Visa A 2,628 418 0.33 LHC Group 387 60 0.05 Walmart 15,391 1,611 1.27 Louisiana-Pacific 4,405 120 0.09 Waste Management 677 58 0.05 Lowe's 11,631 1,360 1.07 Watsco 345 57 0.04 Manhattan Williams-Sonoma 729 55 0.04 Associates 870 68 0.05 Zoom Video Mastercard A 8,070 2,101 1.65 Communications A 204 51 0.04 Match Group 9,586 1,050 0.83 75,336 59.22 McDonald's 971 151 0.12 Equities total 126,438 99.39 Merck 1,015 60 0.05 Portfolio of investments 126,438 99.39 Mettler-Toledo International 69 57 0.04 Net other assets 781 0.61 Net assets attributable to shareholders 127,219 100.00

As this is the first Final Accounting date for the Fund there are no comparatives to be presented. Unless otherwise stated, all securities are admitted to official stock exchange listings.

Schroder Islamic Global Equity Fund Final Report and Accounts 243 31 December 2020 Statement of Total Return For the period ended 31 December 2020

10.11.20 to 31.12.20 Notes £000's £000's Income Net capital gains 2 – 3,997 Revenue 3 271 – Expenses 4 (66) – Net revenue before taxation 205 – Taxation 5 (28) – Net revenue after taxation 177 Total return before distributions 4,174 Distributions 6 (177) Change in net assets attributable to shareholders from investment activities 3,997

Statement of Change in Net Assets Attributable to Shareholders For the period ended 31 December 2020 10.11.20 to 31.12.20 £000's £000's Opening net assets attributable to shareholders – Amounts receivable on issue of shares 123,357 – Amounts payable on cancellation of shares (391) – 122,966 Dilution adjustment 69 Change in net assets attributable to shareholders from investment activities 3,997 Retained distribution on Accumulation shares 187 Closing net assets attributable to shareholders 127,219

Balance Sheet As at 31 December 2020

2020 Notes £000's Assets Investments 126,438 Current assets Debtors 8 98 Cash and bank balances 781 Total assets 127,317 – Liabilities – Creditors Bank overdrafts (4) Other creditors 9 (94) Total liabilities (98) – Net assets attributable to shareholders 127,219

As this is the first final accounting date for the Fund there are no comparatives to be presented.

Schroder Islamic Global Equity Fund Final Report and Accounts 244 31 December 2020 Notes to the Accounts For the period ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder Islamic Global Equity Fund are disclosed on pages 9 to 10. 2 Net capital gains The net capital gains during the period comprise:

10.11.20 to 31.12.20 £000's Non-derivative securities 4,065 Foreign currency losses (68) Net capital gains 3,997

3 Revenue 10.11.20 to 31.12.20 £000's UK dividends 2 Overseas dividends 269 Total revenue 271

4 Expenses 10.11.20 to 31.12.20 £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 46 Administration charge 2 48 Payable to the Depositary, associates of the Depositary and agents of either of them:

Depositary’s fees 2 Other expenses:

Audit fee 14 Shariah purification fee1 2 16 Total expenses 66

1 Purification of non-Shariah compliant income The Shariah Supervisory Board and the Shariah Adviser from time to time issues guidelines to quantify the annual amount of income of a Fund that should be donated to charity, being derived from eligible securities for investment pursuant to the investment objective, policy and restrictions set out in the prospectus, but that are engaged in an activity or activities of a marginal nature which are not Shariah-compliant and which are not screened out by the Shariah restrictions. Such amount is calculated on each relevant transaction, based on the purification ratios, expressed as a percentage of each target company’s dividend payments. The resulting amount is donated to a charity. Any such amounts are deducted only upon their actual determination and no anticipated accrual thereof is made. For the period ended 31 December 2020, this amount was donated to the Islamic Relief Worldwide.

Schroder Islamic Global Equity Fund Final Report and Accounts 245 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Analysis of the tax charge for the period 10.11.20 to 31.12.20 £000's Overseas withholding tax 28 Total current tax (Note 5(b)) 28

(b) Factors affecting the current tax charge for the period The tax assessed for the period is different from that calculated when the standard rate of corporation tax for Open Ended Investment Companies of 20% is applied to the net revenue before taxation. The differences are explained below.

10.11.20 to 31.12.20 £000’s Net revenue before taxation 205

Net revenue for the period before taxation multiplied by the standard rate of corporation tax 41 Effects of:

Revenue not subject to corporation tax (53) Movement in excess management expenses 12 Irrecoverable overseas withholding tax 28 Current tax charge for the period (Note 5(a)) 28

(c) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £12,424 in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the period. 6 Distributions The distributions, take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise:

10.11.20 to 31.12.20 £000’s Final Dividend distribution 187 Deduct: Revenue received on issue of shares (10) Distributions 177

Details of the distributions per share are set out in the Distribution Table on page 250.

7 Fair value hierarchy Instruments held at the period end are presented in line with amendments to FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland Fair value hierarchy disclosures.

2020 Assets Liabilities Basis of valuation £000’s £000’s Level 1: Quoted prices 126,438 – Level 2: Observable market data – – Level 3: Unobservable data – – Total 126,438 –

Schroder Islamic Global Equity Fund Final Report and Accounts 246 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

8 Debtors

2020 £000's Accrued revenue 85 Prepaid expenses 9 Overseas withholding tax recoverable 4 Total debtors 98

9 Other creditors

2020 £000's Amounts payable for cancellation of shares 36 Accrued expenses 58 Total other creditors 94

10 Contingent liabilities There were no contingent liabilities at the balance sheet date. 11 Related party transactions The Authorised Corporate Director exercises control over the Fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the period or due to the Authorised Corporate Director at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies received through the issue and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and Distributions in the Notes to the Accounts. Amounts due to the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Other creditors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 0.00%. 12 Share classes The Fund currently has two share classes. The Annual management charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Manager, the Investment Adviser and their overhead expenses and for each share class is as follows:

Q2 Accumulation shares 0.35% Z Accumulation shares 0.35%

The closing net asset value of each share class, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on page 240. The distributions per share class are given in the Distribution Table on page 250. All classes have the same rights on winding up. 13 Other Financial Instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the period.

Schroder Islamic Global Equity Fund Final Report and Accounts 247 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

Currency risk profile The currency risk profile of the Fund’s net assets and liabilities at the balance sheet date was as follows:

2020 Currency £000’s Australian dollar 2,103 Brazilian real 306 Canadian dollar 1,210 Danish krone 2,412 Euro 4,983 Hong Kong dollar 5,534 Hungarian forint 385 Indonesian rupiah 456 Japanese yen 4,873 Malaysian ringgit 1,243 Norwegian krone 66 South African rand 1,498 South Korean won 507 Sterling 5,196 Swedish krona 2,082 Swiss franc 6,488 Thai baht 18 Turkish lira 781 US dollar 87,078

Interest rate risk The Fund does not invest in fixed income securities, and therefore the Fund’s portfolio is not exposed to interest rate risk.

Fair value of financial assets and financial liabilities There is no material difference between the value of the financial assets and liabilities, as shown in the balance sheet, and their fair value. 14 Direct transaction costs In the case of shares, broker commissions and transfer taxes/stamp duty are paid by the Fund on each transaction. In addition, there is a dealing spread between buying and selling prices of the underlying investments. Unlike shares, other types of investments (such as bonds, money market instruments, derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment.

10.11.20 to Principal Commissions Taxes Total cost Commissions Taxes % of 31.12.20 £000's £000's £000's £000's % of principal principal Purchases

Equities 127,987 17 29 128,033 0.01 0.02

Sales

Equities 5,662 (1) (1) 5,660 (0.02) (0.02)

Total cost of the Fund's average net asset value (%) 0.01 0.03

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.12%. This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price.

Schroder Islamic Global Equity Fund Final Report and Accounts 248 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue at of shares of shares of shares in issue launch date issued cancelled converted 31.12.20 Q2 Accumulation shares – 244,981,747 (750,852) – 244,230,895 Z Accumulation shares – 2,000 – – 2,000

Dealing price Dealing price 23.4.21 31.12.20 % change Q2 Accumulation shares 56.89p 52.30p 8.78 Z Accumulation shares 55.17p 50.74p 8.73

Schroder Islamic Global Equity Fund Final Report and Accounts 249 31 December 2020 Distribution Table

Final distribution for the period ended 31 December 2020 Group 1 Shares purchased on 10 November 2020 Group 2 Shares purchased after 10 November 2020

Net Distribution revenue Equalisation payable 2020 2020 28.2.21 per share per share per share Q2 Accumulation shares Group 1 0.0766p – 0.0766p Group 2 0.0724p 0.0042p 0.0766p Z Accumulation shares Group 1 0.0390p – 0.0390p Group 2 0.0390p – 0.0390p

Schroder Islamic Global Equity Fund Final Report and Accounts 250 31 December 2020 Schroder UK-Listed Equity Income Maximiser Fund Fund Information

Investment objective and policy The Schroder UK-Listed Equity Income Maximiser Fund (the ‘Fund’) aims to provide income by investing in equity and equity related securities of large UK companies. The Fund aims to deliver an income of 7% per year but this is not guaranteed and could change depending on market conditions. The Fund invests at least 80% of its assets in a passively managed portfolio from the top 100 listed UK companies by market capitalisation. To seek to enhance the yield, the Investment Manager selectively sells short dated call options over individual securities held by the Fund, portfolios of securities or indices by agreeing strike prices above which potential capital growth is sold. 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 achieving investment gains, reducing risk or managing the Fund more efficiently (for more information please refer to Appendix III. Section 10: Derivatives and Forwards of the Prospectus). The Fund’s investment strategy will typically underperform a similar portfolio of equities without a derivative overlay in periods when the underlying equity prices are rising, and has the potential to outperform when the underlying equity prices are falling. Fund characteristics The Fund’s performance should be assessed against its target benchmark of 7% income per year, and compared against the FTSE 100 (Net Total Return) index and the Investment Association UK Equity Income sector average return. The target benchmark has been selected because the target return of the Fund is to deliver or exceed the return of that benchmark as stated in the investment objective. 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 event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 251 31 December 2020 Review of Investment Activities

The Fund aims to deliver an income of 7% p.a. (although this is not guaranteed and could change depending on market conditions). [The fund was launched on 4 December 2020.] From 4 December 2020 to 31 December 2020, the price of Z Accumulation shares1 on a dealing basis fell 1.42%. In comparison, the FTSE2 100 Index generated a negative net return of 1.21%3 and the Investment Association UK Equity Income sector average generated a total return of 0.41%3. The company invests in a portfolio of large UK-listed companies and looks to deliver an annual distributable income of 7% p.a. by combining the resulting dividends with a covered call option overlay strategy. The equity portfolio seeks to provide exposure that broadly Co-Fund Manager: mirrors the FTSE 100 index, while the option strategy allows us to generate an enhanced income by exchanging some of the potential capital growth in the stocks we own for an Mike Hodgson upfront cash payment. Our aim is to sell just enough potential capital growth across the Head of Risk Managed Investments and Structured Funds, based in range of holdings to meet the income target, while still benefiting from the first phase of London, having re-joined Schroders in 2011 any share price growth. 33 years of experience in financial markets. Mike started his career in 1987 at J Henry Schroder & Co. Limited as Principal Interest Rate The company announced its first distribution, payable for the period ending 31 December Derivatives Trader and then was promoted to Global Head of 2020, at 0.0515 per share. This equates to a percentage distribution of 0.10%. Structured Products and Equity Derivatives In performance terms, UK equities were weaker in the short period under review. In the In 2000, he moved to Citigroup as a result of its acquisition of J Henry FTSE 100 index, the oil & gas sector was an underperformer, reversing some of the strong Schroder where he was European Head of New Product Development performance seen in November following news of successful Covid-19 vaccines. The In 2004, Mike joined ABN AMRO Bank NV (which then became Royal healthcare sector also underperformed with investors wary of what a Biden presidency Bank of Scotland NV in 2007) as Global Head of Equity Derivatives Structuring moving on to become Head of Fund Derivatives Trading could mean for US pharmaceutical pricing. Financials also underperformed. The portfolio and Structuring fell, reflecting the weakness in the wider market. PhD in Physics, Cambridge University and BSc (Hons) in Physics, Looking ahead, global stock markets have recovered quickly since news of the vaccine Imperial College, London progress. Even before the positive news on vaccines, many companies were starting to look ahead again. Some were feeling sufficiently confident to give guidance on their likely Co-Fund Manager: future financial performance; a number of these have also paid, or indicated plans to Scott Thomson resume, dividend payments. If it does take longer than expected to resolve the pandemic, Managing Maximiser funds since joining the Structured Fund the strongest companies with the strongest balance sheets would be likely to fare well. Management team in 2009 Investment career commenced in 1995 at Morgan Grenfell Asset Management as an equity analyst Joined Schroders in 1997, managing the deal implementation team and becoming a junior fund manager on the EAFE team; joined the Investment Process Resource Unit, a quantitative fund management team, in 2004 as assistant fund manager on an absolute return and an international 130/30 equity fund BA (Hons) in Applied Economics, University of Abertay, Dundee

Co-Fund Manager: Ghokhulan Manickavasagar Joined Structured Fund Management as a fund manager in 2017 Investment career commenced in 2003 on joining Schroders’ Service Management Unit Performance Analyst at Schroders from 2006 to 2007, before becoming a Quantitative Analyst within the Multi-Asset team. Responsible for providing portfolio construction solutions and managing the Diversified Trend strategy for the Multi-Asset business. He was a member of the Strategic Investment Group Multi-Asset (SIGMA) specialising in Commodity research MSc in Information Technology from Queen Mary, University of London BSc in Biochemistry from Queen Mary, University of London

1 The dealing price of Z Accumulation shares reflects the reinvestment of the distribution paid Co-Fund Manager: to shareholders. 2 FTSE International Limited (“FTSE”) © FTSE. “FTSE®” is a trade mark of London Stock Jeegar Jagani Exchange plc and The Financial Times Limited and is used by FTSE International Limited Managing Maximiser funds since joining the Structured Fund under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its Management team in 2012 licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions Investment career commenced in 2003 at Royal London Asset Management on the performance desk before moving into the in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE quantitative team as a Quantitative Analyst in June 2005 Data is permitted without FTSE’s express written consent. Joined Schroders’ Portfolio Solutions team in 2008 as a fund 3 Source: Thomson Reuters Datastream. management assistant and Fund Manager in February 2009 The company announced its first distribution, payable for the period ending 31 December 2020, at 0.0515 Chartered Financial Analyst per share for Z Income shares. This equates to a percentage distribution of 0.10%. BSc (First) Mathematics and Computer Science (University of Surrey) 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 UK-Listed Equity Income Maximiser Fund Final Report and Accounts 252 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

The risk category was calculated using simulated 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 UK-Listed Equity Income Maximiser Fund Final Report and Accounts 253 31 December 2020 Comparative Table

Q1 L Accumulation L Income Accumulation Q1 Income Z Accumulation Z Income shares shares shares shares shares shares 2020 2020 2020 2020 2020 2020 Financial period to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 50.00 50.00 50.00 50.00 50.00 50.00 Return before operating charges* (0.88) (0.88) (0.87) (0.87) (0.88) (0.88) Operating charges (0.01) (0.01) – (0.01) (0.01) (0.01) Return after operating charges* (0.89) (0.89) (0.87) (0.88) (0.89) (0.89)

Distributions1 (0.05) (0.05) (0.06) (0.06) (0.05) (0.05) Retained distributions1 0.05 – 0.06 – 0.05 – Closing net asset value 49.11 49.06 49.13 49.06 49.11 49.06

*after direct transaction costs of (0.29) (0.29) (0.29) (0.29) (0.29) (0.29) – – – – – – Performance

Return after charges (%) (1.78) (1.78) (1.74) (1.76) (1.78) (1.78) – – – – – – Other information

Closing net asset value (£000's) 1 1 1 21,258 1 1 Closing number of shares 2,000 2,000 2,000 43,331,604 2,000 2,000 Operating charges (%) 0.36 0.36 0.26 0.26 0.46 0.46 Direct transaction costs (%)** 0.58 0.58 0.58 0.58 0.58 0.58 – – – – – – Prices

Highest dealing price 50.49p 50.48p 50.50p 50.49p 50.49p 50.49p Lowest dealing price 48.53p 48.52p 48.54p 48.53p 48.53p 48.53p

The Fund was launched on 4 December 2020. 1 These figures have been rounded to 2 decimal places. ** Direct transaction costs have been stated after deducting the proportion of the amounts collected from dilution adjustments. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 UK-Listed Equity Income Maximiser Fund Final Report and Accounts 254 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets Equities 97.61% Consumer Services 11.53%

Oil & Gas 8.87% Compass Group 22,674 309 1.45 Entain 7,710 87 0.41 BP 252,580 643 3.02 Flutter Royal Dutch Shell A 51,465 668 3.14 Entertainment 1,623 244 1.15 Royal Dutch Shell B 45,720 576 2.71 Informa 20,354 112 0.53 1,887 8.87 InterContinental Basic Materials 10.91% Hotels Group 2,824 132 0.62

Anglo American 17,014 412 1.94 International Consolidated BHP Group 27,437 528 2.48 Airlines Group 45,576 73 0.34 Croda International 2,288 150 0.71 Just Eat Takeaway. Glencore 148,349 346 1.63 com 1,675 138 0.65 Mondi 7,067 122 0.57 Kingfisher 29,810 81 0.38 Rio Tinto 13,906 761 3.58 Next 2,068 147 0.69 2,319 10.91 Ocado Group 6,266 142 0.67 Industrials 11.38% RELX 24,305 436 2.05 Tesco 135,272 313 1.47 Ashtead Group 6,064 208 0.98 Whitbread 2,680 83 0.39 BAE Systems 41,366 202 0.95 WPP 19,219 154 0.73 Bunzl 4,541 111 0.52 2,451 11.53 CRH 10,344 316 1.49 Telecommunications 2.68% Experian 11,984 333 1.57 Ferguson 2,924 260 1.22 BT Group 114,602 151 0.71 Halma 5,920 145 0.68 Vodafone Group 345,547 418 1.97 Intertek Group 2,437 138 0.65 569 2.68 Melrose Industries 61,395 109 0.51 Utilities 3.50% Rentokil Initial 26,667 136 0.64 National Grid 46,709 404 1.90 Rolls-Royce SSE 14,708 221 1.04 Holdings 91,752 102 0.48 United Utilities Smiths Group 5,775 87 0.41 Group 13,297 119 0.56 Smurfit Kappa 744 3.50 Group 4,318 148 0.70 Spirax-Sarco Financials 17.77% Engineering 1,097 124 0.58 3i Group 14,436 167 0.79 2,419 11.38 Admiral Group 3,263 95 0.45 Consumer Goods 19.98% Aviva 52,174 170 0.80 Associated British Barclays 219,342 322 1.51 Foods 4,529 103 0.48 HSBC Holdings 250,639 949 4.46 Barratt Legal & General Developments 14,433 97 0.46 Group 79,111 210 0.99 British American Lloyds Banking Tobacco 28,735 778 3.66 Group 882,930 322 1.51 Burberry Group 5,556 99 0.47 London Stock Diageo 29,430 847 3.98 Exchange Group 4,081 367 1.73 Imperial Brands 12,262 188 0.88 Natwest Group 57,826 97 0.46 Persimmon 4,716 131 0.62 Prudential 32,431 437 2.05 Reckitt Benckiser RSA Insurance Group 8,076 528 2.48 Group 13,378 91 0.43 Taylor Wimpey 49,426 82 0.39 Segro REIT 19,745 187 0.88 Unilever 31,781 1,396 6.56 St James's Place 9,290 105 0.49 4,249 19.98 Standard Chartered 34,634 161 0.76 Health Care 10.53% Standard Life Aberdeen 34,787 98 0.46 AstraZeneca 16,350 1,198 5.63 3,778 17.77 GlaxoSmithKline 63,485 852 4.01 Smith & Nephew 12,600 190 0.89 2,240 10.53

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 255 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000’s assets 31.12.20 £000’s assets Technology 0.46% HSBC Holdings Call 4.279 26/01/2021 (111,999) (1) (0.01) Sage Group 17,048 99 0.46 Imperial Brands Call 99 0.46 16.823 26/01/2021 (5,479) 0 0.00 Equities total 20,755 97.61 Legal & General Group Call 2.86 Collective Investment Schemes 1.58% 26/01/2021 (35,351) (1) (0.01) Global Equity Funds 1.58% Lloyds Banking Group Call 0.429 Scottish Mortgage 26/01/2021 (394,541) 0 0.00 Investment Trust§ 27,674 336 1.58 London Stock 336 1.58 Exchange Group Collective Investment Schemes Call 97.6 26/01/2021 (1,823) (1) 0.00 total 336 1.58 National Grid Call 9.143 26/01/2021 (20,872) (1) (0.01) Options (0.10)% Prudential Call 14.64 Written Options (0.10)% 26/01/2021 (14,492) (1) 0.00 Reckitt Benckiser Anglo American Call Group Call 70.274 26.752 26/01/2021 (7,602) (1) 0.00 26/01/2021 (3,608) (1) 0.00 Ashtead Group Call RELX Call 18.988 36.3 26/01/2021 (2,709) 0 0.00 26/01/2021 (10,860) (1) 0.00 AstraZeneca Call Rio Tinto Call 61.464 82.431 26/01/2021 (7,306) (1) (0.01) 26/01/2021 (6,213) (1) 0.00 Aviva Call 3.539 Royal Dutch Shell 26/01/2021 (23,314) 0 0.00 B Call 14.754 BAE Systems Call 26/01/2021 (6,741) 0 0.00 5.355 26/01/2021 (18,484) 0 0.00 Royal Dutch Shell Barclays Call 1.798 A Call 15.305 26/01/2021 (98,013) 0 0.00 26/01/2021 (7,589) 0 0.00 BHP Group Call Scottish Mortgage 21.417 26/01/2021 (12,260) 0 0.00 Investment BP Call 3.076 Trust Call 12.751 26/01/2021 (37,245) 0 0.00 26/01/2021 (12,366) (1) (0.01) British American Smith & Nephew Tobacco Call 29.441 Call 16.875 26/01/2021 (12,840) (1) (0.01) 26/01/2021 (5,630) 0 0.00 Compass Group Call SSE Call 16.168 15.81 26/01/2021 (10,132) (1) (0.01) 26/01/2021 (6,572) (1) 0.00 CRH Call 35.703 Standard Chartered 26/01/2021 (4,622) 0 0.00 Call 5.318 26/01/2021 (15,476) 0 0.00 Diageo Call 31.802 26/01/2021 (13,150) 0 0.00 Tesco Call 2.383 26/01/2021 (60,446) (2) (0.01) Essentra Call 162.199 26/01/2021 (725) (1) 0.00 Unilever Call 46.319 26/01/2021 (14,201) (2) (0.01) Experian Call 30.231 26/01/2021 (5,355) 0 0.00 Vodafone Group Call 1.362 26/01/2021 (154,409) 0 0.00 Ferguson Call 93.994 26/01/2021 (1,306) (1) (0.01) Written Options total (21) (0.10) GlaxoSmithKline Call Portfolio of investments 21,070 99.09 14.498 26/01/2021 (28,368) (1) 0.00 Glencore Call 2.686 Net other assets 193 0.91 26/01/2021 (66,290) 0 0.00 Net assets attributable to shareholders 21,263 100.00

As this is the first Final Accounting date for the Fund there are no comparatives to be presented. Unless otherwise stated, all securities are admitted to official stock exchange listings or are permitted collective investment schemes. § Closed ended Fund.

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 256 31 December 2020 Statement of Total Return For the period ended 31 December 2020

4.12.20 to 31.12.20 Notes £000's £000's Income Net capital losses 2 – (368) Revenue 3 36 – Expenses 4 (12) – Net revenue before taxation 24 – Taxation 5 – – Net revenue after taxation 24 Total return before distributions (344) Distributions 6 (24) Change in net assets attributable to shareholders from investment activities (368)

Statement of Change in Net Assets Attributable to Shareholders For the period ended 31 December 2020 4.12.20 to 31.12.20 £000's £000's Opening net assets attributable to shareholders – Amounts receivable on issue of shares 21,630 – Amounts payable on cancellation of shares (2) – 21,628 Dilution adjustment 3 Change in net assets attributable to shareholders from investment activities (368) Closing net assets attributable to shareholders 21,263

Balance Sheet As at 31 December 2020

2020 Notes £000's Assets Investments 21,091 Current assets Debtors 8 27 Cash and bank balances 206 Total assets 21,324 – Liabilities – Investment liabilities (21) Creditors Distributions payable (26) Other creditors 9 (14) Total liabilities (61) – Net assets attributable to shareholders 21,263

As this is the first final accounting date for the Fund there are no comparatives to be presented.

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 257 31 December 2020 Notes to the Accounts For the period ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder UK-Listed Equity Income Maximiser Fund are disclosed on pages 9 to 10. 2 Net capital losses The net capital losses during the period comprise:

4.12.20 to 31.12.20 £000's Non-derivative securities (412) Derivative contracts 44 Net capital losses (368)

3 Revenue 4.12.20 to 31.12.20 £000's UK dividends 25 Net revenue return from derivative contracts 11 Total revenue 36

4 Expenses 4.12.20 to 31.12.20 £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 2 Administration charge 1 3 Other expenses:

Audit fee 9 Total expenses 12

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

(a) Factors affecting the current tax charge for the period The tax assessed for the period is different from that calculated when the standard rate of corporation tax for Open Ended Investment Companies of 20% is applied to the net revenue before taxation. The differences are explained below.

4.12.20 to 31.12.20 £000’s Net revenue before taxation 24

Net revenue for the period before taxation multiplied by the standard rate of corporation tax 5 Effects of:

Revenue not subject to corporation tax (5) Current tax charge for the period –

(b) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £219 in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the period.

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 258 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

6 Distributions The distributions, take account of revenue received on the issue of shares, and comprise:

4.12.20 to 31.12.20 £000’s Final Dividend distribution 26 Deduct: Revenue received on issue of shares (2) Distributions 24

Details of the distributions per share are set out in the Distribution Table on page 264.

2020 Assets Liabilities Basis of valuation £000’s £000’s Level 1: Quoted prices 21,091 – Level 2: Observable market data – (21) Level 3: Unobservable data – – Total 21,091 (21)

8 Debtors

2020 £000's Amounts receivable for issue of shares 2 Accrued revenue 25 Total debtors 27

9 Other creditors

2020 £000's Amounts payable for cancellation of shares 2 Accrued expenses 12 Total other creditors 14

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 259 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies received through the issue and cancellation of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders and Distributions in the Notes to the Accounts. Amounts due to the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Debtors and Other creditors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 57.58%. 12 Share classes The Fund currently has six share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

L Accumulation shares 0.25% L Income shares 0.25% Q1 Accumulation shares 0.15% Q1 Income shares 0.15% Z Accumulation shares 0.35% Z Income shares 0.35%

The closing net asset value of each share class, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on page 254. The distributions per share class are given in the Distribution Table on page 264. All classes have the same rights on winding up. 13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, derivative, foreign currency, liquidity and interest rate risks. The Manager's policies for managing these risks are summarised below and have been applied throughout the period.

Foreign currency risk At the period end date, the majority of the Fund’s financial assets and liabilities were denominated in sterling. As a result, the Fund has no material exposure to currency movements.

Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average Rate.

Derivatives During the period the Fund entered into derivative contracts for specific investment purposes in addition to being used for efficient management.

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 260 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

The global risk exposure of the Fund is calculated using the commitment approach. During the period ended 31 December 2020 the global risk exposure of the Fund did not exceed 100% of its Net Asset Value. The lowest, highest, average and actual level of leverage for the Fund as at the balance sheet date was as follows:

Leverage

2020 Leverage Lowest Highest Average 31 December 0.00% 32.13% 10.99% 0.16%

4.12.20 to Principal Commissions Taxes Total cost Commissions Taxes % of 31.12.20 £000's £000's £000's £000's % of principal principal Purchases

Equities 21,395 3 104 21,502 0.01 0.49

Sales

Equities/Bonds/Funds/Others – – – – – –

Total cost of the Fund's average net asset value (%) 0.02 0.56

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.14%. This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue at of shares of shares of shares in issue launch date issued cancelled converted 31.12.20 L Accumulation shares – 2,000 – – 2,000 L Income shares – 2,000 – – 2,000 Q1 Accumulation shares – 2,000 – – 2,000 Q1 Income shares – 43,335,078 (3,474) – 43,331,604 Z Accumulation shares – 2,000 – – 2,000 Z Income shares – 2,000 – – 2,000

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 261 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

16 Counterparty Exposure The types of derivatives held at the balance sheet date were option contracts. Details of individual contracts are disclosed in the Portfolio Statement and the total position by counterparty at the balance sheet date was as follows:

Dealing price Dealing price 23.4.21 31.12.20 % change L Accumulation Shares 53.11p 49.29p 7.75 L Income Shares 52.02p 49.28p 5.56 Q1 Accumulation Shares 53.14p 49.30p 7.79 Q1 Income Shares 52.05p 49.29p 5.60 Z Accumulation Shares 53.11p 49.29p 7.75 Z Income Shares 52.04p 49.29p 5.58

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 262 31 December 2020 Securities Financing Transactions

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 263 31 December 2020 Distribution Table

Final distribution for the period ended 31 December 2020 Group 1 Shares purchased on 4 December 2020 Group 2 Shares purchased after 4 December 2020

Net Distribution revenue Equalisation payable 2020 2020 28.2.21 per share per share per share L Accumulation shares Group 1 0.0515p – 0.0515p Group 2 0.0515p – 0.0515p L Income shares Group 1 0.0495p – 0.0495p Group 2 0.0495p – 0.0495p Q1 Accumulation shares Group 1 0.0635p – 0.0635p Group 2 0.0635p – 0.0635p Q1 Income shares Group 1 0.0593p – 0.0593p Group 2 0.0545p 0.0048p 0.0593p Z Accumulation shares Group 1 0.0515p – 0.0515p Group 2 0.0515p – 0.0515p Z Income shares Group 1 0.0515p – 0.0515p Group 2 0.0515p – 0.0515p

Schroder UK-Listed Equity Income Maximiser Fund Final Report and Accounts 264 31 December 2020 Schroder Global Energy Transition Fund Fund Information

Investment objective and policy The Schroder Global Energy Transition Fund (the ‘Fund’) aims to provide capital growth by investing in equity and equity related securities of companies worldwide that are associated with the global transition towards lower carbon sources of energy and which meet the Investment Manager’s environmental, social and governance (ESG) criteria. The Fund is actively managed and invests at least 80% of its assets in a concentrated range of equity and equity related securities of companies worldwide that contribute to the global transition towards lower carbon sources of energy, such as lower carbon energy production, distribution, storage, transport and associated supply chain material providers and technology companies. The Fund will only invest in companies that generate at least 50% of their revenue from activities contributing to the transition, or those which play critical roles in the transition and are increasing their exposure to such activities. The Fund typically holds 30 to 60 companies. The Fund will not invest in companies that generate any revenue from fossil fuels, nuclear power, weapons, tobacco or alcohol. The Fund will only invest in companies that do not cause significant environmental or social harm and have good governance procedures, as determined by the Investment Manager’s ESG rating (please see the Fund Characteristics section below for more information). These may include companies that the Investment Manager actively engages with to challenge identified areas of weakness in ESG performance, where it is confident that they will improve their ESG practices within a reasonable timeframe, which will typically be six month to two years, depending on the specific engagement topic. More details on the Investment Manager’s approach to sustainability and its engagement with companies are available on the internet site https://www. schroders.com/en/uk/private-investor/strategic-capabilities/sustainability/. 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 or managing the Fund more efficiently (for more information please refer to section 10 of Appendix III of the Prospectus). Fund characteristics The Fund does not have a target benchmark. The Fund’s performance should be compared against the MSCI Global Alternative Energy (Net Total Return) index, the MSCI All Country World (Net Total Return) index and the Investment Association Global Equity sector average return. The comparator benchmarks have been selected because the Investment Adviser and the ACD believe that these benchmarks are a suitable comparison for performance purposes given the Fund’s investment objective and policy. Significant event 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 funds. The applicable discount is determined by the size of each fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus.

Schroder Global Energy Transition Fund Final Report and Accounts 265 31 December 2020 Review of Investment Activities

From 8 December 2020 to 31 December 2020, the price of Z Accumulation Co-Fund Manager: units on a dealing price basis rose 5.92%. In comparison, the MSCI Global Mark Lacey Alternative Energy Index generated a net return of 13.90%1, the MSCI All Country World Index generated a negative net return of 0.25%1 and the Investment Association Global sector generated a total return of 14.87%1. Global stock markets performed well in December as news in November that a number of vaccines had proven to be effective against Covid-19 further boosted investor sentiment on optimism that a return to normal economic conditions could be on the horizon. The US presidential election, trade wars and Brexit, amongst other events which would ordinarily be considered material, were largely overshadowed. The portfolio performed well over the period, but underperformed the benchmark. By sector, industrials made the biggest contribution, while our holdings in information Mark Lacey joined Schroders in 2013 technology and utilities detracted. By region, our overweight to Continental Europe and underweight to North America were negative over the period. Our underweight to Head of Resource Equities - Global Thematics emerging markets and off-benchmark allocation to the UK contributed over the period. Portfolio Manager Schroder ISF Global Energy Transition Our off-benchmark holdings in Soltec Power Holdings and Flat Glass Group were both fund strong performers over the period. Conversely, our zero-weight allocations to Enphase Portfolio Manager of Schroder ISF Global Energy & Schroder Energy and Xinyi Solar holdings both detracted during the period. The fund does not have ISF Global Gold a target income yield. Formerly portfolio manager of Investec Global Energy funds December continued to see us take profits on renewable-exposed names that had continued to perform well over the month. These include TPI Composites, SMA Solar and Formerly head of global energy at Goldman Sachs Array. We also continue to add to more defensive regulated utilities (Red Electrica, Terna Was previously ranked as #1 energy investment specialist in Spa) and electrical equipment names (Legrand and ABB), that have far more attractive Thompson Extel survey valuations and offer better risk-reward. Career commenced in 1996 at Credit Suisse Asset Following a truly remarkable and striking 2020, the outlook for energy transition equities Management, managing gold and resource equity funds – and the wider market – in 2021 is equally absorbing. With several effective Covid-19 vaccines already rolling-out across the world, the outlook for economic activity is certainly Co-Fund Manager: positive, although we still remain cautious about further restrictions. The expected activity Alexander Monk increase, and the associated uplift in consumption and capital expenditure, should support strong earnings growth in 2021, particularly for those companies most affected by recent pressures. Within the energy transition space, more industrially-exposed names, such as those in electrical equipment, should benefit most from this economic boost – but the entire market should get a lift as the less restrictive operating environment from the second half of the year allows pent-up demand to come through. When adding in the new demand stimulated by recent and impending policy expansion – including tax credit extensions in the US, the start of European Green Deal support and China’s 14th five-Year Plan – and assuming no further surprises, we expect strong growth across almost all end-markets in the energy transition value chain in 2021.

Alexander Monk is a Global Renewables Analyst at Schroders, which involves providing investment ideas and analysing companies across the entire renewable energy value chain for the Schroder Global Energy Transition Fund. He joined Schroders in 2016 and is based in London. Alexander was a Sustainable Investment Analyst at Schroders from 2016 to 2018, which involved analysing sustainability risks and opportunities associated with companies in the utilities and telecommunications sectors. Qualifications: MSc in Environmental Policy and Regulation from the London School of Economics and Political Science (LSE); BA in Geography from Oxford University.

Schroder Global Energy Transition Fund Final Report and Accounts 266 31 December 2020 Risk Profile

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

< > 1 2 3 4 5 6 7

The risk category was calculated using simulated 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 Energy Transition Fund Final Report and Accounts 267 31 December 2020 Comparative Table

Q1 L Accumulation Accumulation Q1 Income S Accumulation shares L Income shares shares shares shares S Income shares 2020 2020 2020 2020 2020 2020 Financial period to 31 December p per share p per share p per share p per share p per share p per share Change in net asset value

Opening net asset value 50.00 50.00 50.00 50.00 50.00 50.00 Return before operating charges* 2.75 2.76 2.76 2.76 2.76 2.75 Operating charges (0.02) (0.03) (0.02) (0.02) (0.02) (0.01) Return after operating charges* 2.73 2.73 2.74 2.74 2.74 2.74

Distributions –^ –^ –^ –^ –^ –^ Retained distributions – – – – – – Closing net asset value 52.73 52.73 52.74 52.74 52.74 52.74

*after direct transaction costs of (0.08) (0.08) (0.08) (0.08) (0.08) (0.08) – – – – – – Performance

Return after charges (%) 5.46 5.46 5.48 5.48 5.48 5.48 – – – – – – Other information

Closing net asset value (£000's) 1 1,055 4,342 56,042 10,549 1 Closing number of shares 2,000 1,999,620 8,233,934 106,265,466 20,002,000 2,000 Operating charges (%) 0.86 0.86 0.68 0.68 0.56 0.56 Direct transaction costs (%)** 0.16 0.16 0.16 0.16 0.16 0.16 – – – – – – Prices

Highest dealing price 53.45p 53.45p 53.45p 53.46p 53.46p 53.46p Lowest dealing price 49.78p 49.79p 49.78p 49.78p 49.78p 49.78p

Schroder Global Energy Transition Fund Final Report and Accounts 268 31 December 2020 Comparative Table (continued)

Z Accumulation shares Z Income shares 2020 2020 Financial period to 31 December p per share p per share Change in net asset value

Opening net asset value 50.00 50.00 Return before operating charges* 2.75 2.75 Operating charges (0.02) (0.02) Return after operating charges* 2.73 2.73 Distributions – ^ –^ Retained distributions – – Closing net asset value 52.73 52.73

*after direct transaction costs of (0.08) (0.08) – – Performance

Return after charges (%) 5.46 5.46 – – Other information

Closing net asset value (£000's) 163 1 Closing number of shares 309,638 2,000 Operating charges (%) 0.94 0.94 Direct transaction costs (%)** 0.16 0.16 – – Prices

Highest dealing price 53.45p 53.45p Lowest dealing price 49.78p 49.78p

The Fund and all share classes was launched on 8 December 2020. ^ The share class has made no distribution to date. ** Direct transaction costs have been stated after deducting the proportion of the amounts collected from dilution adjustments. The Operating charges are represented by the Ongoing Charges Figure (OCF) which is the European standard method of disclosing the charges of a share class of a Fund based on the financial year’s expenses and may vary from year to year. It includes charges such as the Fund’s Authorised Corporate Director fee, Registrar fees, Safe custody fees, Depositary’s fees and Audit fee but ordinarily excludes the costs of buying or selling assets for the Fund (unless these assets are shares of another Fund). Where published, the Key Investor Information Document (KIID) contains the current OCF. For a more detailed breakdown please visit www.schroders.com. 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 Energy Transition Fund Final Report and Accounts 269 31 December 2020 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.12.20 £000's assets 31.12.20 £000’s assets

Equities 80.97% Jersey 0.17% Belgium 5.86% Invinity Energy Systems# 57,377 123 0.17 Elia Group 22,732 1,982 2.75 Umicore 63,929 2,247 3.11 123 0.17 4,229 5.86 Netherlands 5.00% Alfen Beheer 16,563 1,220 1.69 Canada 3.48% SIF Holding 57,982 839 1.16 Canadian Solar 11,899 452 0.62 Signify 50,125 1,549 2.15 Hydro One 114,739 1,890 2.62 Polaris 3,608 5.00 Infrastructure 16,883 171 0.24 Norway 1.06% 2,513 3.48 Zaptec 202,076 767 1.06 Cayman Islands 1.20% 767 1.06 China High Speed Singapore 1.45% Transmission Equipment Group 57,000 41 0.06 Maxeon Solar Technologies 49,100 1,044 1.45 Daqo New Energy ADR 19,301 821 1.14 1,044 1.45

862 1.20 Spain 6.74% China 3.48% EDP Renovaveis 64,016 1,306 1.81 Flat Glass Group H 377,000 1,162 1.61 Red Electrica 170,556 2,561 3.55 Xinjiang Goldwind Soltec Power Science & Holdings 84,443 998 1.38 Technology H 919,600 1,348 1.87 4,865 6.74 2,510 3.48 Sweden 0.63% Denmark 4.92% Climeon 119,717 453 0.63 Vestas Wind 453 0.63 Systems 20,479 3,551 4.92 3,551 4.92 Switzerland 5.65% ABB 91,505 1,871 2.59 France 12.93% Gurit Holding 273 561 0.78 Engie EPS 30,007 350 0.48 Landis+Gyr Group 28,680 1,645 2.28 Legrand 12,824 837 1.16 4,077 5.65 Neoen 17,967 1,007 1.40 Nexans 37,252 1,976 2.74 United Kingdom 0.48% # Rexel 138,524 1,599 2.22 Ilika 51,057 102 0.14 # Schneider Electric 17,401 1,843 2.55 Tekmar Group 371,601 242 0.34 Voltalia 74,212 1,717 2.38 344 0.48 9,329 12.93 United States of America 12.82% Germany 5.23% Array Technologies 43,757 1,389 1.93 Compleo Charging First Solar 41,388 3,022 4.19 Solutions 12,189 997 1.38 Hubbell 12,721 1,458 2.02 Nordex 31,599 625 0.87 Ormat Technologies 35,026 2,296 3.18 SMA Solar TPI Composites 27,798 1,082 1.50 Technology 29,664 1,504 2.08 9,247 12.82 Wacker Chemie 6,213 650 0.90 Equities total 58,423 80.97 3,776 5.23 Forward Foreign Currency Contracts 0.00% Greece 1.45% Terna Energy 88,698 1,048 1.45 Buy EUR 96,751 Sell GBP 87,843 04/01/2021 (1) 0.00 1,048 1.45 Buy EUR 228,740 Italy 8.42% Sell GBP 207,684 05/01/2021 (2) 0.00 Falck Renewables 331,291 1,945 2.69 Buy EUR 167,625 Sell GBP 150,525 06/01/2021 0 0.00 Prysmian 59,714 1,552 2.15 Buy NOK 1,627,964 Terna Rete Elettrica Sell GBP 139,948 05/01/2021 0 0.00 Nazionale 460,189 2,580 3.58 6,077 8.42

Schroder Global Energy Transition Fund Final Report and Accounts 270 31 December 2020 Portfolio Statement (continued)

Holding at Market Value % of net 31.12.20 £000’s assets Sell NOK 45,149 Buy GBP 3,878 05/01/2021 0 0.00 Forward Foreign Currency Contracts total (3) 0.00

Portfolio of investments 58,420 80.97 Net other assets 13,734 19.03 Net assets attributable to shareholders 72,154 100.00

Schroder Global Energy Transition Fund Final Report and Accounts 271 31 December 2020 Statement of Total Return For the period ended 31 December 2020

8.12.20 to 31.12.20 Notes £000's £000's Income Net capital gains 2 – 2,067 Revenue 3 3 – Expenses 4 (24) – Net expense before taxation (21) – Taxation 5 – – Net expense after taxation (21) Total return before distributions 2,046 Distributions 6 – Change in net assets attributable to shareholders from investment activities 2,046

Statement of Change in Net Assets Attributable to Shareholders For the period ended 31 December 2020 8.12.20 to 31.12.20 £000's £000's Opening net assets attributable to shareholders – Amounts receivable on issue of shares 69,997 – 69,997 Dilution adjustment 111 Change in net assets attributable to shareholders from investment activities 2,046 Closing net assets attributable to shareholders 72,154

Balance Sheet As at 31 December 2020

2020 Notes £000's Assets Investments 58,423 Current assets Debtors 8 1,887 Cash and bank balances 14,436 Total assets 74,746 – Liabilities – Investment liabilities (3) Creditors Other creditors 9 (2,589) Total liabilities (2,592) – Net assets attributable to shareholders 72,154

As this is the first final accounting date for the Fund there are no comparatives to be presented.

Schroder Global Energy Transition Fund Final Report and Accounts 272 31 December 2020 Notes to the Accounts For the period ended 31 December 2020

1 Accounting policies Basis of preparation The applicable accounting policies adopted by Schroder Global Energy Transition Fund are disclosed on pages 9 to 10. 2 Net capital gains The net capital gains during the period comprise:

8.12.20 to 31.12.20 £000's Non-derivative securities 1,731 Forward foreign currency contracts 100 Foreign currency gains 236 Net capital gains 2,067

3 Revenue 8.12.20 to 31.12.20 £000's Overseas dividends 3 Total revenue 3

4 Expenses 8.12.20 to 31.12.20 £000's Payable to the Authorised Corporate Director, associates of the Authorised Corporate Director and agents of either of them: Authorised Corporate Director fee 11 Administration charge 3 14 Other expenses:

Audit fee 10 Total expenses 24

5 Taxation Corporation tax has not been provided for as expenses payable by the Fund exceed the revenue liable to corporation tax.

8.12.20 to 31.12.20 £000’s Net expense before taxation (21)

Net expense for the period before taxation multiplied by the standard rate of corporation tax (4) Effects of:

Revenue not subject to corporation tax (1) Movement in excess management expenses 5 Current tax charge for the period –

(b) Factors that may affect future tax charges At the balance sheet date, there is a potential deferred tax asset of £4,711 in respect of unutilised management expenses. It is unlikely the Fund will generate sufficient taxable profits in the future to utilise this amount and therefore no deferred tax asset has been recognised in the period.

Schroder Global Energy Transition Fund Final Report and Accounts 273 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

6 Distributions The distributions comprise:

8.12.20 to 31.12.20 £000’s Net expense after taxation (21) Deficit taken to capital 21 Distributions –

Details of the distributions per share are set out in the Distribution Table on page 279.

2020 Assets Liabilities Basis of valuation £000’s £000’s Level 1: Quoted prices 58,423 – Level 2: Observable market data – (3) Level 3: Unobservable data – – Total 58,423 (3)

8 Debtors

2020 £000's Amounts receivable for issue of shares 1,334 Sales awaiting settlement 553 Total debtors 1,887

9 Other creditors

2020 £000's Purchases awaiting settlement 2,566 Accrued expenses 23 Total other creditors 2,589

10 Contingent liabilities There were no contingent liabilities at the balance sheet date.

Schroder Global Energy Transition Fund Final Report and Accounts 274 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

11 Related party transactions The Authorised Corporate Director exercises control over the Fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the period or due to the Authorised Corporate Director at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Authorised Corporate Director acts as principal on all transactions of shares in the Fund. The aggregate monies received through the issue of shares are disclosed in the Statement of Change in Net Assets Attributable to Shareholders. Amounts due from the Authorised Corporate Director in respect of share transactions at the balance sheet date are included under Debtors in the Notes to the Accounts. Shares held or managed by the Authorised Corporate Director or associates of the Authorised Corporate Director as a percentage of the Funds net asset value at the balance sheet date were 0.00%. 12 Share classes The Fund currently has eight share classes. The Authorised Corporate Director charge is based on the average value of the Fund, calculated on a daily basis, and covers the remuneration of the Authorised Corporate Director, the Investment Adviser and their overhead expenses and for each share class is as follows:

L Accumulation shares 0.675% L Income shares 0.675% Q1 Accumulation shares 0.50% Q1 Income shares 0.50% S Accumulation shares 0.375% S Income shares 0.375% Z Accumulation shares 0.75% Z Income shares 0.75%

The closing net asset value of each share class, the closing net asset value per share and the closing number of shares in issue are given in the Comparative Table on pages 268 to 269. The distributions per share class are given in the Distribution Table on page 279. All classes have the same rights on winding up. 13 Derivative and other financial instruments The main risks arising from the Fund’s ﬁnancial instruments are market price, foreign currency, liquidity and interest rate risks. The Authorised Corporate Director's policies for managing these risks are summarised below and have been applied throughout the period.

Currency risk profile The currency risk profile of the Fund’s net assets and liabilities at the balance sheet date was as follows:

2020 Currency £000’s Canadian dollar 2,061 Danish krone 3,551 Euro 32,656 Hong Kong dollar 2,069 Norwegian krone 577 Sterling 15,264 Swedish krona 453 Swiss franc 4,076 US dollar 11,447

Schroder Global Energy Transition Fund Final Report and Accounts 275 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

Interest rate risk profile of financial assets and financial liabilities The interest rate risk profile of financial assets and financial liabilities at the balance sheet date was as follows:

2020 Floating Financial rate Fixed rate assets not financial financial carrying assets assets interest Total Currency £000’s £000’s £000’s £000’s Canadian dollar – – 2,061 2,061 Danish krone – – 3,551 3,551 Euro 2 – 33,633 33,635 Hong Kong dollar – – 2,842 2,842 Norwegian krone – – 912 912 Sterling 14,426 – 1,804 16,230 Swedish krona – – 453 453 Swiss franc – – 4,076 4,076 US dollar 223 – 11,565 11,788

2020 Financial Floating liabilities rate Fixed rate not financial financial carrying liabilities liabilities interest Total Currency £000’s £000’s £000’s £000’s Euro – – 979 979 Hong Kong dollar – – 773 773 Norwegian krone – – 335 335 Sterling 215 – 751 966 US dollar – – 341 341

Global risk exposure Commitment approach When using derivatives, the Authorised Corporate Director uses a risk management process that enables it to monitor the risk of a Fund’s derivative positions. The global risk exposure of a Fund is calculated daily either by means of the commitment approach or the Value-at-Risk (VaR) approach. Under the commitment approach, the global risk exposure is defined as the underlying market value of derivatives, after netting and hedging as permitted by the regulation, not exceeding the Net Asset Value of a Fund. This is typically used on Funds where derivative usage is low or Funds which limit their derivatives commitment to 100% or less of their Net Asset Value. The global risk exposure of the Fund is calculated using the commitment approach. During the period ended 31 December 2020 the global risk exposure of the Fund did not exceed 100% of its Net Asset Value. The lowest, highest, average and actual level of leverage for the Fund as at the balance sheet date was as follows:

Leverage

2020 Leverage Lowest Highest Average 31 December 0.00% 78.86% 13.42% 1.10%

Schroder Global Energy Transition Fund Final Report and Accounts 276 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

8.12.20 to Principal Commissions Taxes Total cost Commissions Taxes % of 31.12.20 £000's £000's £000's £000's % of principal principal Purchases

Equities 58,466 23 35 58,524 0.04 0.06

Sales

Equities 1,833 (1) – 1,832 (0.05) –

Total cost of the Fund's average net asset value (%) 0.06 0.10

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.37%. This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price. 15 Shares in issue reconciliation Number Number of shares Number Number Number of shares in issue at of shares of shares of shares in issue launch date issued cancelled converted 31.12.20 L Accumulation shares – 2,000 – – 2,000 L Income shares – 1,999,620 – – 1,999,620 Q1 Accumulation shares – 8,233,934 – – 8,233,934 Q1 Income shares – 106,265,466 – – 106,265,466 S Accumulation shares – 20,002,000 – – 20,002,000 S Income shares – 2,000 – – 2,000 Z Accumulation shares – 309,638 – – 309,638 Z Income shares – 2,000 – – 2,000

16 Counterparty exposure The types of derivatives held at the balance sheet date were forward foreign currency contracts. Details of individual contracts are disclosed in the Portfolio Statement and the total position by counterparty at the balance sheet date was as follows:

Forward foreign currency contracts Total Counterparty £000's £000's Citibank 2020 (3) (3)

At the balance sheet date no collateral was held or pledged by the Fund or on behalf of the counterparties in respect of the above.

Schroder Global Energy Transition Fund Final Report and Accounts 277 31 December 2020 Notes to the Accounts For the period ended 31 December 2020 (continued)

Dealing price Dealing price 23.4.21 31.12.20 % change L Accumulation shares 54.26p 52.96p 2.45 L Income shares 54.26p 52.97p 2.44 Q1 Accumulation shares 54.29p 52.97p 2.49 Q1 Income shares 54.30p 52.97p 2.51 S Accumulation shares 54.32p 52.97p 2.55 S Income shares 54.31p 52.98p 2.51 Z Accumulation shares 54.25p 52.96p 2.44 Z Income shares 54.26p 52.96p 2.45

Schroder Global Energy Transition Fund Final Report and Accounts 278 31 December 2020 Distribution Table

The Fund has made no distribution to date.

Schroder Global Energy Transition Fund Final Report and Accounts 279 31 December 2020 Remuneration

UCITS remuneration disclosures for Schroder Unit Trusts Limited (‘SUTL’) for the year to 31 December 2019 These disclosures form part of the non-audited section of this annual report and accounts and should be read in conjunction with the Schroders plc Remuneration Report on pages 72 to 108 of the 2019 Annual Report & Accounts (available on the Group’s website – www.schroders.com/annualreport2019), which provides more information on the activities of our Remuneration Committee and our remuneration principles and policies. The UCITS Material Risk Takers (‘UCITS MRTs’) of SUTL are individuals whose roles within the Schroders Group can materially affect the risk of SUTL or any UCITS fund that it manages. These roles are identified in line with the requirements of the UCITS Directive and guidance issued by the European Securities and Markets Authority. The Remuneration Committee of Schroders plc has established a remuneration policy to ensure the requirements of the UCITS Directive are met for all UCITS MRTs. The Remuneration Committee and the Board of Schroders plc review remuneration strategy at least annually. The directors of SUTL are responsible for the adoption of the remuneration policy, for reviewing its general principles at least annually, for overseeing its implementation and for ensuring compliance with relevant local legislation and regulation. During 2019 the Remuneration Policy was reviewed to ensure compliance with the UCITS/AIFMD remuneration requirements and no significant changes were made. The implementation of the remuneration policy is, at least annually, subject to independent internal review for compliance with the policies and procedures for remuneration adopted by the Board of SUTL and the Remuneration Committee. The most recent review found no fundamental issues but resulted in a range of more minor recommendations, principally improvements to process and policy documentation. The total spend on remuneration is determined based on a profit share ratio, measuring variable remuneration charge against pre-bonus profit, and from a total compensation ratio, measuring total remuneration expense against net income. This ensures that the interests of employees are aligned with Schroders financial performance. In determining the remuneration spend each year, the underlying strength and sustainability of the business is taken into account, along with reports on risk, legal, compliance and internal audit matters from the heads of those areas. The remuneration data that follows reflects amounts paid in respect of performance during 2019. ¯¯ The total amount of remuneration paid by SUTL to its staff was nil as SUTL has no employees. SUTL has two independent Non Executive Directors who receive fees in respect of their role on the Board of SUTL1. Employees of other Schroders Group entities who serve as Directors of SUTL receive no additional fees in respect of their role on the Board of SUTL. ¯¯ The following disclosures relate to UCITS MRTs of SUTL. Most of those UCITS MRTs were employed by and provided services to other Schroders group companies and clients. As a result, only a portion of remuneration for those individuals is included in the aggregate remuneration figures that follow, based on an objective apportionment to reflect the balance of each role using relevant regulated AUM as a proportion of the total AUM within the scope of each role. The aggregate total remuneration paid to the 176 UCITS MRTs of SUTL in respect of the financial year ended 31 December 2019, and attributed to SUTL or the UCITS funds that it manages, is £17.10 million, of which £3.29 million was paid to senior management, and £13.81 million was paid to MRTs deemed to be taking risk on behalf of SUTL or the UCITS funds that it manages and Control Function MRTs. For additional qualitative information on remuneration policies and practices see www.schroders.com/rem-disclosures.

1 The fees are not disclosed due to confidentiality and data protection considerations. The amount is not material to Schroder Unit Trusts Limited.

Schroder Investment Fund Company Final Report and Accounts 280 31 December 2020 General Information

Authorised Corporate Director Depositary Schroder Unit Trusts Limited J.P. Morgan Europe Limited 1 London Wall Place Chaseside London EC2Y 5AU Bournemouth BH7 7DA Authorised and regulated by the Financial Conduct Authority Authorised and regulated by the Financial Conduct Authority

Directors Registrar J. Rainbow (Chairman) Schroder Unit Trust Limited P. Chislett 1 London Wall Place C. Minio Paluello London EC2Y 5AU S. Reedy Authorised and regulated by the Financial Conduct Authority C. Thomson The Manager is responsible for maintaining the register for each Fund. P. Truscott It has delegated certain registrar functions to HSBC Bank Plc, 8 Canada H. Williams Square, London, E14 8HQ.

Investment Adviser Administration Details Schroder Investment Management Limited Schroders Investor Services 1 London Wall Place PO Box 1402 London EC2Y 5AU Sunderland Authorised and regulated by the Financial Conduct Authority SR43 4AF Schroder India Equity Fund Schroder Investment Management (Singapore) Limited Independent Auditors 138 Market Street PricewaterhouseCoopers LLP #23-01 CapitaGreen Atria One Singapore 048946 144 Morrison Street Authorised to carry on investment business by the Monetary Authority of Edinburgh EH3 8EX Singapore

Authorisation The Company is an investment Company with variable capital under Regulation 12 of the OEIC Regulations, incorporated with limited liability in England and Wales and authorised by the Financial Conduct Authority under Regulation 14 of the OEIC Regulations. The Company 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 Investment Fund Company Final Report and Accounts 281 31 December 2020

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.