Schroder UK Mid 250 Fund Interim Report and Accounts January 2021

Contents

1 Fund Information{ } 3 1 Fund Performance{ } 3 1 Review of Investment Activities{ } 4 1 Risk Profile{ } 5 Statement of the Manager’s Responsibilities 6 1 Portfolio Statement{ } 7 Financial Statements (unaudited) 8 Notes to the Accounts (unaudited) 9 1 General Information{ } 10

1 Collectively these comprise the Manager's report.

Schroder UK Mid 250 Fund Interim Report and Accounts 2 31 January 2021 Fund Information

Investment objective and policy The Schroder UK Mid 250 Fund (the ‘Fund’) aims to provide long term capital growth in excess of the FTSE 250 ex Investment Trusts (Gross Total Return) (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of companies listed in the FTSE 250 Index ex Investment Trusts. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of UK companies listed in the FTSE 250 ex - Investment Trusts index. These are companies that are incorporated, headquartered or have their principal business activities in the UK. The Investment Manager believes that these investments can potentially offer faster rates of profit and dividend growth and higher long-term returns than their larger counterparts. The Fund may also invest in former components of, or expected entrants into, that index if the Investment Manager believes it may be advantageous to do so. 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 6 of Appendix I of the Prospectus). Fund characteristics The Fund’s performance should be assessed against its target benchmark, being to exceed the FTSE 250 ex Investment Trusts (Gross Total Return) index, and compared against the Investment Association UK All Companies sector average return. The Investment Manager 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 Manager and the Manager 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 Fund. The applicable discount is determined by the size of the Fund and is capped at 0.05%. For more information on the discount please refer to the Prospectus. Total purchases and sales For the period For the year to 31.1.21 to 31.7.20 £000's £000's Total purchases 27,409 56,060 Total sales 73,863 158,302

Fund Performance{1}

Number of Net asset Net asset units in issue value per unit value per unit 31.1.21 31.1.21 31.7.20 A Accumulation units 154,168,368 267.04p 208.55p A Income units 19,935,444 215.94p 168.64p L Accumulation units 209,350,321 71.01p 55.23p L Income units 53,539,323 62.88p 48.91p Z Accumulation units 171,629,126 122.18p 95.06p Z Income units 41,764,202 106.03p 82.50p

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 Mid 250 Fund Interim Report and Accounts 3 31 January 2021 Review of Investment Activities

From 31 July 2020 to 31 January 2021, the price of A Accumulation units Fund Manager: on a dealing price basis rose 27.04%. In the same period, the FTSE1 250 ex Andrew Brough Investment Trust Index generated a total return of 22.24%2. Equities performed very well on the back of positive news around Covid-19 vaccines, which allowed markets to look past the global pandemic with more confidence. UK equities responded positively to the vaccine news in November and then again to the Brexit trade deal, with domestically focused areas and small and mid cap equities materially outperforming. UK inward merger and acquisition (M&A) activity regained momentum as global dealmaking picked up, with mid caps a particular focus. There was a rotation away from resilient businesses including a number of direct beneficiaries of the Covid-19 pandemic and towards more economically sensitive parts of the market. These areas stand to benefit once vaccination programmes have been rolled Andrew is Head of our Pan European Small and Mid Cap out and economies re-open. Among our top individual contributors were lifestyle and luxury Team apparel retailer Frasers, car retailer Inchcape and UK specialist bank Paragon. Bookmaker His investment career commenced in 1987 when he joined William Hill outperformed due to M&A activity, also performed very well and as a UK equity fund manager, becoming Co-Head not owning gold mining company was another positive. On the negative side, of our UK Small Cap Team in 2002 detractors included marine service specialist James Fisher & Sons, UK multi-utility provider He joined Price Waterhouse in 1985, where he qualified as a and not owning security company G4S which was subject to M&A interest. We Chartered Accountant exited William Hill and established a new position in countermeasures specialist Chemring. Degree in Economics Looking forwards, much will depend on the speed with which the pandemic is resolved following the roll-out of vaccination programmes. Following a sharp increase in household savings due to the pandemic we will be closely monitoring how quickly consumers spend the reserves. The direction of sterling will be an important consideration for companies more exposed to imported goods and/or the UK consumer, such as retailers.

1 FTSE International Limited (“FTSE”) © FTSE. “FTSE®” is a trade mark of 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 Mid 250 Fund Interim Report and Accounts 4 31 January 2021 Risk Profile

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

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

Schroder UK Mid 250 Fund Interim Report and Accounts 5 31 January 2021 Statement of the Manager’s Responsibilities

The Financial Conduct Authority’s Collective Investment Schemes sourcebook requires the Manager to prepare accounts for each annual and half yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true and fair view of the financial position of the Fund and of its net revenue and the net capital gains on the property of the Fund for the period. In preparing the accounts the Manager is required to: ¯¯ select suitable accounting policies and then apply them consistently; ¯¯ comply with the disclosure requirements of the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Management Association (now the Investment Association) in May 2014; ¯¯ follow generally accepted accounting principles and applicable accounting standards; ¯¯ prepare the accounts on the basis that the Fund will continue in operation unless it is inappropriate to do so; ¯¯ keep proper accounting records which enable it to demonstrate that the accounts as prepared comply with the above requirements; ¯¯ make judgements and estimates that are prudent and reasonable. The Manager is responsible for the management of the Fund in accordance with its Trust Deed, the Prospectus and the Collective Investment Schemes sourcebook, and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. The Manager's report and accounts for the period ended 31 January 2021 were signed on 23 March 2021 on behalf of the Manager by:

P. Chislett P. Truscott Directors

Schroder UK Mid 250 Fund Interim Report and Accounts 6 31 January 2021 Portfolio Statement

Holding at Market Value % of net Holding at Market Value % of net 31.1.21 £000's assets 31.1.21 £000’s assets Equities 98.15% (98.70%) Consumer Services 24.66% (22.52%) Group 120,000 2,850 0.32 Oil & Gas 3.28% (3.43%) 1,042,558 3,143 0.35 8,376,923 15,104 1.70 1,731,108 20,012 2.25 Lamprell 13,981,527 8,948 1.00 11,400,000 48,678 5.46 Petrofac 4,350,000 5,185 0.58 Future 210,000 3,650 0.41 29,237 3.28 Group 1,252,587 15,908 1.78 Basic Materials 3.81% (3.59%) Inchcape 4,050,000 26,933 3.02 3,137,500 13,485 1.51 Pendragon 50,000,000 6,910 0.78 872,908 20,461 2.30 Group 5,400,000 21,740 2.44 33,946 3.81 5,170,000 24,035 2.70 Industrials 25.40% (25.40%) Restaurant Group 1,000,000 683 0.08 3,225,000 22,688 2.54 Saga 511,390 1,262 0.14 9,593,935 3,360 0.38 Studio Retail Group 8,242,055 23,490 2.64 1,737,893 5,127 0.57 Holdings 468,555 20,429 2.29 CPP Group# 488,793 2,200 0.25 219,723 24.66 IWG 5,650,000 17,707 1.99 Telecommunications 3.40% (4.49%) James Fisher & Sons 2,251,250 22,512 2.53 Telecom Plus 2,330,000 30,290 3.40 Keller Group 2,060,000 15,326 1.72 30,290 3.40 PayPoint 1,419,541 8,815 0.99 Financials 19.85% (21.98%) QinetiQ Group 7,950,000 23,945 2.69 6,094,817 14,963 1.68 Holdings 2,125,000 6,237 0.70 Renishaw 249,000 14,915 1.67 CLS Holdings 1,338,111 2,850 0.32 Royal Mail 5,507,053 22,282 2.50 CMC Markets 7,380,503 29,633 3.32 1,300,000 39,468 4.43 Grainger 5,700,000 15,173 1.70 Speedy Hire 19,492,526 13,060 1.46 International 226,368 25.40 Personal Finance 11,432,130 9,146 1.03 Consumer Goods 13.63% (13.48%) 6,250,000 11,897 1.33 IP Group 12,750,000 12,100 1.36 Holdings 1,550,000 5,013 0.56 Just Group 12,400,000 9,411 1.06 19,500,000 28,519 3.20 Group 450,000 46,440 5.21 Paragon Banking Photo-Me Group 5,394,346 24,469 2.75 International 15,300,000 7,122 0.80 Raven Property PZ Cussons 2,989,084 7,398 0.83 Group 19,357,287 5,246 0.59 Redrow 4,400,000 23,100 2.59 Holdings Superdry 659,000 1,368 0.16 REIT 803,835 6,491 0.73 Ted Baker 4,905,503 4,920 0.55 St Modwen 3,091,325 26,060 2.93 Properties 2,480,343 9,524 1.07 121,421 13.63 TP ICAP 2,765,000 6,155 0.69 Health Care 4.12% (3.81%) 176,851 19.85 Dechra Equities total 874,526 98.15 Pharmaceuticals 713,924 25,744 2.89 Portfolio of investments 874,526 98.15 Genus 222,295 10,946 1.23 36,690 4.12 Net other assets 16,516 1.85 Net assets attributable to unitholders 891,042 100.00

The comparative percentage figures in brackets are as at 31 July 2020. Unless otherwise stated, all securities are admitted to official stock exchange listings. # Security traded on another regulated market.

Schroder UK Mid 250 Fund Interim Report and Accounts 7 31 January 2021 Statement of Total Return (unaudited) For the six months ended 31 January 2021

31.1.21 31.1.20 £000's £000's £000's £000's Income Net capital gains – 198,208 – 124,363 Revenue 9,691 – 17,357 – Expenses (5,304) – (6,685) – Net revenue before taxation 4,387 – 10,672 – Taxation – – – – Net revenue after taxation 4,387 10,672 Total return before distributions 202,595 135,035 Distributions (125) (183) Change in net assets attributable to unitholders from investment activities 202,470 134,852

Statement of Change in Net Assets Attributable to Unitholders (unaudited) For the six months ended 31 January 2021 31.1.21 31.1.20 £000's £000's £000's £000's Opening net assets attributable to unitholders 732,300^ 1,015,938 Amounts receivable on issue of units 5,754 – 15,055 – Amounts payable on cancellation of units (49,483) – (61,149) – (43,729) (46,094) Dilution adjustment 1 – Change in net assets attributable to unitholders from investment activities 202,470 134,852 Unclaimed distributions – 2 Closing net assets attributable to unitholders 891,042 1,104,698^

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

Balance Sheet (unaudited) As at 31 January 2021

31.1.21 31.7.20 £000's £000's Assets Investments 874,526 722,767 Current assets Debtors 4,643 1,264 Cash and bank balances 16,189 11,993 Total assets 895,358 736,024 – – Liabilities – – Creditors Distributions payable – (1,142) Other creditors (4,316) (2,582) Total liabilities (4,316) (3,724) – – Net assets attributable to unitholders 891,042 732,300

Schroder UK Mid 250 Fund Interim Report and Accounts 8 31 January 2021 Notes to the Accounts (unaudited)

Basis of preparation The accounts have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Management Association in May 2014 and in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)). Accounting policies The accounting policies applied are consistent with those of the annual accounts for the year ended 31 July 2020 and are described in those annual accounts.

Schroder UK Mid 250 Fund Interim Report and Accounts 9 31 January 2021 General Information

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

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

Schroder UK Mid 250 Fund Interim Report and Accounts 10 31 January 2021

For further literature please contact Schroder Investor Services on 0800 182 2399 or [email protected] for Retail Clients, or 0345 030 7277 or [email protected] for Institutional Clients, or visit our website at www.schroders.com. Issued in March 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.