Annual Report • Mar 19, 2025
Annual Report
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Job No: 53868 Proof Event: 34 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Annual Report and Financial Statements for the year ended 31 December 2024 Schroder Asian Total Return Investment Company plc Job No: 53868 Proof Event: 34 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Scan this QR code on your smartphone camera to sign up to receive regular updates on Schroder Asian Total Return Investment Company plc The Investment Objective of the Company is set out above. For details on the Company’s Investment Policy please see the KID. This report includes the investment policy which you should read in conjunction with the KID before investing; these are also available on our Schroders website. 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 investments to fall as well as rise. Performance data does not take into account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed. Relevant risks as associated with this Company are shown on page 115 and should be carefully considered before making any investment. Investment objective Schroder Asian Total Return Investment Company plc seeks to provide a high rate of total return through investment in equities and equity-related securities of companies trading in the Asia Pacific region (excluding Japan). The Company seeks to offer a degree of capital preservation through tactical use of derivative instruments. Why invest in the Company? Investing in high potential companies across the Asia Pacific region The Portfolio Managers are benchmark agnostic, which means they can back their highest conviction ideas with an active approach that is not tied to any particular index resulting in a portfolio that is diversified across region and sector. With a particular tilt towards small and mid cap names, they focus on well-managed businesses that understand the importance of paying a good, growing dividend to their shareholders as part of an attractive long-term total return. Benefit from a smoother investment journey and the possibility for higher returns The ability to select stocks that have the potential to deliver strong long-term returns is complemented by the use of a tactical hedging strategy. This focuses on delivering a smoother ride in investing compared to the Reference Index by reducing volatility and preserving capital. Altogether, this helps to mitigate some of the broader risks associated with investing in Asia. Rely on decades of Asian investment expertise The Co-Portfolio Managers Robin Parbrook and King Fuei Lee have more than 50 years of combined investment experience and are renowned for their expertise in Asian equity investing. They draw upon the extensive resources of Schroders’ Asia Pacific equities research team based in six offices across the region, as well as Schroders’ London-based global sector specialists. This helps provide an information advantage in an under-researched and market inefficient region. Please see page 45 for the full investment policy. Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Contents Section 1: Overview Performance Summary 5 Chair’s Statement 6 Ten-Year Financial Record 9 Section 2: Investment Manager’s Review Portfolio Managers’ Report 14 Top Ten Investments 32 Investment Portfolio 34 Investment Process 37 ESG Integration 39 Section 3: Strategic Report The Company 44 Stakeholder Engagement – Section 172 Report 48 Risk Report 52 Conclusion 56 Section 4: Governance Board of Directors 60 Directors’ Report 62 Audit and Risk Committee Report 66 Management Engagement Committee Report 69 Nomination Committee Report 70 Directors’ Remuneration Report 72 Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements 75 Section 5: Financials Independent Auditor’s Report 78 Income Statement 83 Statement of Changes in Equity 84 Statement of Financial Position 85 Cash Flow Statement 86 Notes to the Financial Statements 87 Section 6: Other Information (Unaudited) Annual General Meeting – Recommendations 106 Notice of Annual General Meeting 107 Explanatory Notes to the Notice of Meeting 109 Alternative Performance Measures and Glossary 111 Information about the Company 113 Risk Disclosures 115 12 42 76 58 104 2 The front cover is a photograph of a snake pendant, taken in Indonesia. This is in recognition of 2025 as the Year of the Snake in the Chinese zodiac. Possession of the pendant is traditionally thought to bring good luck and prosperity. This is not a sustainable product for the purposes of the Financial Conduct Authority (FCA) rules. References to the consideration of sustainability factors and environmental, social and governance (ESG) integration should not be construed as a representation that the Company seeks to achieve any particular sustainability outcome. 1 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Main Gate, Wuji Tianyuan Temple, New Taipei City, Taiwan Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 1: Overview 2 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Section 1: Overview Performance Summary 5 Chair’s Statement 6 Ten-Year Financial Record 9 Section 1: Overview 3 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Victoria Harbour, Hong Kong Section 1: Overview Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 4 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Performance Summary At 31 December 2024 1 Alternative performance measure, as defined by the European Securities and Markets Authority. Definitions of these performance measures, and other terms used in this Report, are given on pages 111 and 112 together with supporting calculations where appropriate. 2 Source: Thomson Reuters. 3 Source: Schroders. 4 Source: Morningstar/Thomson Reuters. Share price total return 1 +12.6% 2023: +10.3% Reference Index 2 +12.1% 2023: +1.3% Net Asset Value (NAV) per share total return 1 +13.0% 2023: +8.8% Ongoing charges ratio 1,3 0.9% 2023: 0.9% Share price discount to NAV per share 1,4 5.1% 2023: 4.6% Net assets 3 £476.08m 2023: £448.48m Gearing 1,3 8.5% 2023: 7.8% Share price 4 483.00p 2023: 440.00p Revenue return per share 3 9.61p 2023: 10.26p Section 1: Overview 5 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chair’s Statement Performance and background I am pleased to report another year of good performance from your Company which delivered a NAV total return of 13.0%, outperforming the MSCI AC Asia Pacific ex Japan Index (the Reference Index) which rose by 12.1%. The share price total return was 12.6% as the discount widened slightly. It is positive to note that this is the ninth year in the last decade that the Company has outperformed the Reference Index, which has resulted in double digit annualised returns for our long-term investors. The Company’s returns were ahead of both the peer group and the Reference Index over the one, three, five and ten-year periods to 31 December 2024. It was a year of two halves for performance, with the majority of the gains made in the first half of the year. Taiwanese technology stocks, particularly those linked to artificial intelligence (AI), fared well and the Company’s overweighting to Taiwan was a contributor to outperformance. Taiwan Semiconductor Manufacturing Company (TSMC), the Company’s largest holding, made substantial gains buoyed by demand for its advanced semiconductors and stellar performance from Nvidia in the United States. Our Portfolio Managers’ stock selection contributed to performance across most markets, particularly in Australia and Singapore, while the use of derivatives was also additive. Further comments on performance and investment policy may be found in the Investment Manager’s review. Alpha Manager of the Year winner In recognition of his consistently strong performance, Robin Parbrook was named ‘Alpha Manager of the Year’ at the 2024 FE fundinfo awards for active managers. The Alpha Manager Rating is a quantitative rating that distinguishes the top UK fund managers based on alpha generation and outperformance across their career history, allowing investors to instantly identify those managers who have consistently outperformed their peer group over time. For further information please visit: https://www.fefundinfo.com/landing- pages/inst/alpha-manager-of-the-year- awards-2024 https://www.fefundinfo.com/products/ institutions/ratings Earnings and dividends Revenue return from the portfolio for the year fell by 6.3% to 9.61 pence per share, from 10.26 pence per share in 2023. While the Portfolio Managers view income as an important component of investment return, they focus on total return, rather than income. The Board has therefore recommended a final dividend of 11.50 pence per share, maintaining the dividend at the same level as the previous financial year. This is in view of the reduction in revenue return for the year, which will require the final dividend to be part funded from reserves. Subject to shareholder approval at the Annual General Meeting (“AGM”), the dividend will be paid on 9 May 2025 to shareholders on the register on 11 April 2025. The ex-dividend date is 10 April 2025. Discount management The discount at which the Company’s share price trades widened slightly during the year from 4.6% at the start of the year to 5.1% at the end of December 2024. The year under review has been a challenging time for investment trust discounts which have widened across the board and currently average 14.7%, attracting activist investors and encouraging corporate activity in the sector. The Board aims to achieve a discount of no more than 5% in normal market conditions. Consequently, the Board made use of its authority to buy back shares to assist in discount management and to reduce share price volatility. A total of 3,709,666 shares were repurchased during 2024, amounting to 3.8% of the issued share capital at the start of the year. The shares were repurchased at an average discount of 6.6%, for a total consideration of £17.0 million, and placed in treasury for possible future reissuance at a premium to NAV. Buying back shares is accretive to the Company’s NAV. The Company’s shares traded at an average discount of 6.8% during the year. Sarah MacAulay Chair This is the ninth year in the last decade that the Company has outperformed the Reference Index. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 1: Overview 6 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Since the year end and up to 14 March 2025, the latest practicable date prior to the publication of this report, no shares were bought back by the Company. On 14 March 2025, the discount at which the Company’s share price trades had narrowed to 3.5%, comparing favourably to the average discount for the investment company sector and the peer group. The Board will be seeking approval from shareholders to renew the issuance and buy back authorities at the AGM to be held on 24 April 2025, further details of which can be found on page 106. Gearing Gearing continued to be actively utilised by the Portfolio Managers during the year and ranged between 3.8% at its lowest and 8.8% at its highest. Gearing made a positive contribution to performance. The Company has started to use contracts for difference (CFDs) in addition to the loan facility as a flexible and more cost-effective means of borrowing. Shareholders should be aware that the use of borrowing must be seen in the context of the use of derivative hedging instruments. The Company may use gearing to enhance performance, but net gearing will not exceed 30% of NAV. The Board has agreed a disciplined framework for using gearing to increase market exposure, based on a number of valuation indicators. Fees For the first time since 2021 the Company has paid a performance fee in addition to the management fee of 0.65% of gross assets less cash and cash equivalents. A performance fee is payable amounting to 10% of any outperformance of the NAV over an annual hurdle of 7%, provided that the closing NAV per share exceeds the “high water mark” NAV at the date the last performance fee was paid. The sum of the base fee and any performance fee payable is capped at 1.25% of the closing net assets. In addition, the Manager may only be paid a performance fee when the Company’s NAV total return is equal or greater to the total return of the Reference Index. Following the outperformance, the Manager generated a performance fee of £2,767,000 for the year ended 31 December 2024. The Board The Board continues to review its composition and effectiveness as well as planning for succession. The Board was pleased to welcome Marion Sears as a non-executive Director on 24 April 2024 and as the Company’s Senior Independent Director (SID) with effect from 4 December 2024. Caroline Hitch stepped down from the Board, having reached her nine-year tenure, at the conclusion of the AGM in April 2024. Outlook Geopolitics continues to dominate headlines as the world reacts to new policies emanating from the recently elected Trump administration. In particular, the US President’s use of tariffs and the threat of more is disruptive to global trade and has significant consequences throughout the region. The expectation of imminent interest rate cuts in the US has dwindled as inflation remains stubbornly high, putting pressure on Asian currencies. China’s economic growth prospects are hampered by lacklustre domestic consumption, the long and slow unwinding of the property bubble and excessive provincial debt. However, much of this is already reflected in Asian valuations which are at all time relative lows to developed markets. Our Portfolio Managers continue to find exciting investment ideas in the region and with an index agnostic investment approach stock selection will remain critical. Our two Portfolio Managers have decades of collective investment experience and an excellent long-term track record of delivering value to shareholders. Schroders has a large, well- resourced team of analysts in Asia that provides a depth of research across the region with a universe of 900 companies covered and around 2,700 company visits each year. We remain confident that our Portfolio Managers are well positioned to navigate diverse and challenging equity markets in the region. The Company’s returns were ahead of both the peer group and the Reference Index over the one, three, five and ten-year periods. Continuation vote The Board has committed to put to shareholders a resolution at the AGM that the Company continue as an investment trust for a further three years. Over the three-year period ended 31 December 2024, the Company’s NAV produced a total return of 2.34% per annum, outperforming the 1.82% per annum total return of the Reference Index, while our share price produced a total return of 0.85% per annum. It is worth noting however that the last three years has been a difficult time for Asian equity markets and that although the Company’s relative return was positive, absolute returns were disappointing. Looking longer term, over five years, the Company’s NAV returned 9.0% per annum and the share price 7.8%, compared to the Reference Index return of 4.2%. Over ten years, the NAV returned 11.3% per annum and the share price 11.6%, compared to the Reference Index return of 7.0%. The Board believes that the Manager remains well qualified and suitable to manage the portfolio and to assist the Company in meeting its investment objective. The Portfolio Managers have extensive investment experience and are well resourced, with support from a regional research team of 45 analysts. The Board also believes that the Company is well positioned as an investment vehicle within its peer group, and that its long-term investment objectives remain appropriate and the structure beneficial to shareholders. As previously mentioned, this is the ninth year in the last decade that the Company has outperformed the Reference Index. The Board therefore unanimously recommends that the Company continue as an investment trust, and the Directors intend to vote their shares accordingly. Results webinar, presentation and AGM There will be a presentation by the Portfolio Managers at 12.00 noon on Thursday, 24 April 2025 which will be available to watch online and also for shareholders to attend, prior to the AGM, at the offices of the Investment Manager at 1 London Wall Place, London EC2Y 5AU. 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. Section 1: Overview 7 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 To sign up to watch the presentation online please click on this link: https:// schroders.zoom.us/j/82547849490?pw d=P7BEhDzatGWPqYBfclz39zn7bWLd so.1. Please click here https://mybrand. schroders.com/m/23fe589407a4be1/ original/Schroder-Asian-Total-Return- Investment-Company-AGM_-Portfolio- Manager-Presentation.ics to add this virtual presentation to your calendar. Details on how to watch the presentation are also available on the Company’s web pages: www.schroders.co.uk/satric. The formal business of the AGM will commence at 1.00 pm on Thursday, 24 April 2025 at 1 London Wall Place, London EC2Y 5AU, following the presentation by the Portfolio Managers. Shareholders are encouraged to attend both the presentation at 12.00 noon and the AGM at 1.00 pm at the Investment Manager’s offices. By making the Portfolio Managers’ presentation available also as a webinar, I hope that shareholders, who are unable to attend the presentation and AGM, along with interested parties, will be able to listen to, and ask questions of, the Portfolio Managers. AGM shareholder communication and engagement The Board understands the significance of having regular access to information for our shareholders. In addition to our Company web pages, we provide shareholders with the opportunity to subscribe to Company email updates. These emails feature updates about the Company, along with news, opinion pieces, and market insights. Details on how to subscribe can be found on the inside front cover of this report. We are pleased to note the strong contributions of all investment trust shareholders at recent votes, including those holding through retail platforms, across the sector following extensive proactive shareholder engagement. These investors have played a key role in the outcomes of these votes and we would encourage them to continue to make their voices heard in all AGMs going forward. If any of the Company’s shareholders are at all unsure of how to vote their holding, they should contact their nominee for immediate assistance as we, alongside many others, are keen to see that these improved participation figures are sustained across all investment trusts, including at this Company. The Board encourages all shareholders to either attend the AGM or exercise their voting rights by proxy. Proxy votes can be submitted electronically through the registrar’s portal, by post and also by email. Details are set out in the Explanatory Notes to the Notice of AGM in this Annual Report. The Board acknowledges that certain execution-only investment platforms are now enabling shareholders to vote electronically. We encourage shareholders to utilise this feature where it is available. The Board is committed to exercising the highest standard of corporate governance and accordingly, regularly considers the views of its shareholders, offering to meet with major shareholders annually. We also seek to engage with all shareholders where possible and should you wish to contact me, you can do so via the Company Secretary whose details are set out on page 114. Sarah MacAulay Chair 18 March 2025 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 1: Overview 8 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Ten-Year Financial Record At 31 December 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Shareholders’ funds (£’000) 154,186 195,017 294,426 293,783 357,871 483,548 551,745 457,474 448,484 476,076 NAV per share, diluted where applicable (pence) 211.36 267.09 354.79 321.43 365.57 479.07 507.24 434.60 461.24 509.04 Share price (pence) 190.00 255.50 362.00 331.00 368.00 489.00 506.00 409.50 440.00 483.00 Share price (discount)/premium to NAV per share (%) (10.1) (4.3) 2.0 3.0 0.7 2.1 (0.0) (5.8) (4.6) (5.1) Net gearing (%) 1 1.0 7.0 4.5 (0.9) 2.2 5.7 8.3 9.0 7.8 8.5 For the year ended 31 December 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net revenue return after taxation (£’000) 3,236 3,940 4,183 6,303 7,653 8,308 9,809 13,466 10,497 9,164 Net revenue return per share (pence) 4.43 5.40 5.48 7.18 8.10 8.46 9.25 12.47 10.26 9.61 Dividends per share (pence) 3.80 4.50 4.80 6.20 6.50 7.10 8.50 11.00 11.50 11.50 Ongoing charges (%) 0.97 1.00 0.96 0.86 0.85 0.87 0.84 0.82 0.87 0.90 Performance 2 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 NAV per share total return (pence) 100.0 102.9 132.2 178.4 163.9 189.7 253.6 272.3 237.8 258.7 292.3 Share price total return (pence) 100.0 99.4 136.2 196.0 181.7 205.5 278.6 292.2 241.4 266.3 299.8 Reference Index 3 total return (pence) 100.0 95.9 122.1 152.7 139.6 160.0 189.9 186.1 172.9 175.1 196.3 1 Net gearing represents borrowings including CFDs used for investment purposes, less cash, expressed as a percentage of net assets. 2 Source: Morningstar/Thomson Reuters. Rebased to 100 at 31 December 2014. 3 MSCI AC Asia ex-Japan Index (with net income reinvested), sterling adjusted. * Alternative performance measures. Further details can be found on pages 111 and 112. Section 1: Overview 9 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 1 Alternative performance measure. Source: Morningstar/Thomson Reuters. NAV per share, share price and Reference Index total returns for the ten years ended 31 December 2024 Source: Morningstar/Thomson Reuters. Rebased to 100 at 31 December 2014. Ten year share price (discount)/premium to NAV per share 1 50 100 150 200 250 300 350 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 NAV total return Share price total return Reference Index total return 6 4 2 0 -2 -4 -6 -8 -10 -12 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 1: Overview 10 Job No: 53868 Proof Event: 39 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Wat Pho Temple Complex, Bangkok, Thailand Section 1: Overview 11 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Gardens by the Bay, Singapore Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 12 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Section 2: Investment Manager’s Review Portfolio Managers’ Report 14 Top Ten Investments 32 Investment Portfolio 34 Investment Process 37 ESG Integration 39 Section 2: Investment Manager’s Review 13 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 2024 began on a promising note for the Company, given its limited exposure to China’s struggling economy and the ongoing regulatory uncertainties, thus shielding it from stock market volatility there. Significant positions in Taiwanese technology and shareholder-value-focused companies across Asia Pacific drove outperformance relative to the Reference Index for most of the year. However, September 2024 brought surprises in Chinese government policy that led to a domestic market rally, reducing earlier gains. Additionally, Samsung Electronics faced scrutiny over its struggles with high-bandwidth memory (HBM) chips and declining smartphone market share, further weighing on performance. Despite these challenges, the NAV total return for the year was 13.0%, outperforming the Reference Index which rose by 12.1% (Source: Schroders, net of fees). Investment clusters overview To evaluate performance, we revisited the four investment clusters that have long shaped our approach to Asian equities. A brief overview of these clusters provides context. Cluster One consists of China and Hong Kong, representing structurally challenged markets in secular bear trends. Here, the investment focus remained on the best private sector companies rather than state-owned enterprises (SOEs). Cluster Two comprises Korea and Taiwan, home to world-class technology companies, albeit with volatility due to their dominance in the cyclical semiconductor industry. Australia and Singapore make up Cluster Three, representing well-regulated markets with stable capitalist foundations. These markets are ideal for reliable dividend plays that generate attractive total returns over time. Lastly, Cluster Four contains India and ASEAN (the Association of Southeast Asian Nations) 1 , true emerging markets (EM) with high growth potential tempered by political and regulatory risks. Together, these clusters offer a balanced framework for us to navigate Asia’s dynamic investment landscape, capturing opportunities while managing risks. 1 ASEAN excluding Singapore. Robin Parbrook Lee King Fuei Portfolio Managers’ Report We view Asian equities not as one coherent asset class but as four disparate investment clusters Asian Equities: One coherent asset class? We view them as primarily four disparate investment clusters with different drivers China/Hong Kong • Structurally challenged, secular bear markets. • Some good companies but valuations are not as low as the bulls will claim. Korea/Taiwan • Principally technology-heavy (semiconductors) stock markets. • Attractive companies with strong intellectual property and entry barriers – cyclical but with growth. • Where some of the best stocks in Asia can be found. Australia/Singapore • Well-regulated stock markets in countries with strong secular attractions and good capitalist underpinnings. • Lower growth but lots of strong dividend yields and attractive total returns. India/ASEAN 1 • Genuine emerging markets. • Strong gross domestic product (GDP) growth but more volatile politics and regulation. • Positive long-term structural outlook in India, the Philippines and Indonesia but valuations in the former are now expensive. 1 ASEAN excluding Singapore Source: Schroders Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 14 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Performance of investment clusters in 2024 How did these investment clusters fare compared to the Reference Index in 2024? To answer this, we delve deeper into each cluster, breaking them into sub-thematic components to understand the key drivers of their performance. In Cluster One: China/Hong Kong, we differentiate between SOEs and non-SOEs, as these segments followed distinctly different paths in a structurally challenged market. For Cluster Two: Korea/Taiwan, we examine the two markets separately. Korea includes “Value-up” 1 companies, which are part of reform efforts aimed at closing the “Korean discount”, and non-Value-up companies. Taiwan is analysed by its AI sector, which has been a major thematic driver, alongside non-AI sectors. In Cluster Three: Australia/Singapore, companies are categorised into high dividend yielders (DY) that provide steady income streams and low or no dividend yielders (Non-DY) with lower payout ratios. Finally, in Cluster Four: India/ASEAN, we consider India and ASEAN as distinct investment areas. The Reference Index recorded a 12.1% absolute GBP return in 2024, driven by several standout trends. Leading the gains were Taiwan’s AI plays, which saw exceptional performance fuelled by investor enthusiasm for AI demand and Nvidia’s consistently optimistic forecasts. This segment not only outperformed domestic peers but also outshone the broader region. Chinese SOEs emerged as a surprise outperformer. Despite exposure to years of overinvestment in infrastructure and a struggling property market, tacit government support during the year bolstered their share prices, resulting in returns that outpaced their often rapidly weakening underlying fundamentals. India secured the third spot, benefiting from the “China plus one” diversification trend and favourable domestic policies, attracting capital from local and international investors. At the opposite end, Korea was the biggest disappointment. Political controversies surrounding President Yoon’s administration, weakening demand for electric vehicles (EVs) that affected Korean battery manufacturers, and a sharp decline in Samsung Electronics’ share price contributed to the market’s underperformance. The lacklustre results in the “Value-up” segment were particularly notable, as the government’s attempts to replicate Japan’s success in closing valuation gaps largely fell short, leading to increasing scepticism about policy effectiveness. Taiwanese technology stocks outside of the AI space, along with non-technology segments in Taiwan, also struggled, further emphasising the concentrated strength of AI-related plays in the region. 1 Value-up companies exhibit characteristics such as strong corporate governance, a focus on innovation and strategic partnerships. Index-weighted average 2024 return of the sub-thematic components of the investment clusters -40.0 -20.0 0.0 20.0 40.0 60.0 80.0 Cluster One: CH / HK Cluster Two: KR / TW Cluster Three: AU / SG Cluster Four: EM Asia MSCI AC APxJ 1 Weighted average return (GBP, %) AU/SG: DY EM: ASEAN KR: Value-up KR: Non Value-up AU/SG: Non-DY CH/HK: Non-SOE EM: India CH/HK: SOE TW: AI TW: Non-Tech MSCI 1 TW: Tech 1 Reference Index Note: The size of the bubbles represents the weighting of each sub-investment cluster in the Reference Index. Source: Factset, Schroders Section 2: Investment Manager’s Review 15 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Cluster performance The year’s performance review is perhaps best examined through the lens of these clusters and their sub-thematic components, bringing the Company’s overall strategy and results into sharper focus. 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. The Investment Manager invests on a discretionary basis and there are no restrictions on the extent to which the Company’s portfolio and performance may deviate from the Reference Index. The Investment Manager will invest in companies or sectors not included in the Reference Index in order to take advantage of specific investment opportunities. Excess returns attribution by investment cluster 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 KR/TW 3.07 HK/CH 4.96 EM 2.58 AU/SG 1.52 Stk select in non-SOE Zero-wt SOE Stk select in DY/non-DY Stk select in TW non-AI OW TSMC Zero-wt rest of KR Zero-wt TW AI OW KR Memory Zero-wt MY Stk select in rest of EM +13.0 MSCI 1 CH/HK AU/SG KR/TW KR/TW EM (Malaysia) EM (India/ASEAN ex Sing) Hedging Cash/Cost of leverage Company 1 Reference Index Source: Factset, Schroders, Company NAV return, net of fees Cluster One: China/Hong Kong – a challenging year Navigating China and Hong Kong proved difficult. While early 2024 saw SOEs benefiting from government-backed initiatives, the Company’s focus on high-quality private companies still delivered strong results for the first eight months of the year. However, significant policy stimulus in September 2024 triggered a sharp rally in Chinese markets. The Chinese internet sector, including JD.com, Alibaba, and Meituan, surged, but limited exposure to these holdings impacted performance. Traditional Hong Kong-listed companies like Shenzhou International and AIA underperformed during the rally despite delivering reasonable earnings. These challenges have prompted internal discussions about refining buy disciplines to better capitalise on volatile Chinese markets that are driven more by sentiment and speculation than fundamentals. Overall, the China/Hong Kong cluster detracted from performance, underscoring the challenges of navigating markets where fundamentals are not the primary drivers of short-term performance. Cluster Two: Korea/Taiwan – net contributor but mixed results Korea and Taiwan delivered contrasting performances. In Korea, contrary to the widespread optimism on the Corporate Value-Up program at the start of 2024, the market ended the year as the worst performing market of the region. The government’s Value-up effort has largely failed to materialise amid the political controversies surrounding President Yoon’s administration, leaving investors increasingly sceptical of the country’s political credibility. While the Company had an underweight exposure to the market, it was insufficient to offset the drag from our positioning in the country’s memory sector. Samsung Electronics’ share price was particularly disappointing as the company faced intensified competition from Chinese dynamic random access memory (DRAM) manufacturers, a declining global smartphone market share, and challenges in the AI memory chip segment. Conversely, Taiwan’s contributions were robust. The long-term position in TSMC outperformed materially, fuelled by surging demand for AI chips. Additionally, strong stock selection in other Taiwanese non-AI segments, including Chroma ATE, MediaTek, and Voltronic Power, further strengthened performance, culminating in a significant net positive contribution from this investment cluster. Cluster Three: Australia/Singapore – a reliable contributor This cluster remained a cornerstone of stability. High-dividend-yielding stocks such as Singaporean banks DBS Bank and United Overseas Bank performed well, reinforcing the cluster’s reputation for reliable income generation. Non-dividend-yielding names like ResMed and Aristocrat Leisure also delivered strong returns, underscoring the often overlooked opportunities in the Australian market. Overall, this cluster made a meaningful positive contribution, reflecting its role as a stabilising force within the portfolio. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 16 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Cluster Four: India/ASEAN – positive but uneven India and ASEAN markets contributed positively to performance. In ASEAN, strong stock selection in holdings that included port operator, International Container Terminal Services, and leading banks in Indonesia and the Philippines added value. However, absence from the outperforming Malaysian market was a missed opportunity. In India, the underweight position in a strong-performing market was a minor drag. Nonetheless, good stock selection, highlighted by MakeMyTrip, helped deliver modest gains. While broader Indian equity performance was mixed, the cluster remains a promising area for growth and hopefully alpha generation 1 in 2025. Gearing The Company continued to deploy gearing during the year as regional valuations were reasonable and our top-down composite valuation indicator remained in the neutral territory. At the end of 2024, the Company’s gearing was 8.5% obtained through a combination of the credit facility, and the introduction of CFDs, which helped to reduce the overall cost of borrowing against a relatively high-interest rate backdrop. While the use of gearing still involves a marginal cost to the Company, this flexibility plays a crucial part in enabling the Company to capture additional market upside, providing an added source of alpha which should more than offset the cost of gearing over the long term. Hedging Strategy – a modest contributor Despite typically acting as a drag in strong market years like 2024, the Company’s hedging strategy contributed 0.3% to performance in 2024. Notably, our VIX (Volatility Index) 2 call 3 options performed particularly well, mitigating downside risks while enhancing returns, and reaffirming the value of the disciplined approach to hedging in volatile markets. Conclusion As we reflect on 2024, it is evident that the year tested the Company’s adaptability and discipline amid dynamic market conditions. Despite some challenges in certain clusters, the Company delivered reasonable results, outperforming the Reference Index and reinforcing the strength of its diversified, long-term approach. Looking ahead to 2025, we remain steadfast in our commitment to navigating Asia’s complex investment landscape with the same unconstrained, benchmark-agnostic approach to stock selection, as we aim to build on performance in 2024 and to continue to generate positive results for our shareholders. 1 For further details please refer to: https://www.schroders.com/en-gb/uk/individual/glossary/ 2 The CBOE Volatility Index (VIX) is a real-time index that represents the market’s expectations for the relative strength of near-term price changes of the S&P 500 Index (SPX). Because it is derived from the prices of SPX index options with near-term expiration dates, it generates a 30-day forward projection of volatility. Volatility, or how fast prices change, is often seen as a way to gauge market sentiment, and in particular the degree of fear among market participants. 3 Calloptionsarefinancialcontractsthatgivethebuyertheright,butnottheobligation,tobuyastock,bond,commodity,orotherassetorinstrumentata specifiedpricewithinaspecificperiod.Acallsellermustselltheassetifthebuyerexercisesthecall. Chinese battery manufacturer CATL was a new addition to the portfolio during the year. The company’s success has been driven by its market leadership in the production of lithium-ion batteries and its strategic partnerships with major global electrical vehicle producers. Section 2: Investment Manager’s Review 17 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chart 1: Asian Markets have sharply underperformed since the US election Asia Pacific ex Japan vs Developed Markets (DM) and US (total return, 22/1/24=100) 90 95 100 105 110 115 US$ Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 APxJ/US APxJ/DM US Election Source: CLSA, MSCI, December 2024 Strategy and positioning for the Year of the Snake In the second part of our review, we discuss the Company’s positioning as we enter 2025, or in the case of China, the Year of the Snake. Prospective returns from Asian equities face two significant headwinds as we enter the New Year. Firstly, uncertainty around Trump 2.0, and what this is likely to mean for Asian interest rates, exchange rates, and trade flows are a potential headwind. President Trump’s policies as stated are quite negative for both the economic and earnings outlook in most Asian countries. Higher-for-longer US interest rates are likely to put pressure on currencies in the region, leading to higher rates and dampening economic growth. Trade tariffs, if implemented in the manner suggested by Trump’s more aggressive narrative to date, are expected to be disruptive and potentially negative for the region’s exporters. As Chart 1 shows, Asian stock markets have materially underperformed since the US election. The second headwind for the Company’s prospective returns is China, given the economic, regulatory and geopolitical uncertainties. Much like the US policy outlook, the regulatory and geopolitical outlook in China is effectively unpredictable. Regardless of this, we see headwinds for Chinese listed stocks that leave us cautious. However, given current poor sentiment and low valuations, we can find opportunities despite the fact that without a policy volte-face, we view Chinese equities as in a secular bear market. How do we position from here? If the supposed “guardrails” in US institutions work (thus reducing the worst of the trade tariffs and other threats) then perhaps we can see a rebound in Asian markets most of which are now discounting a gloomy scenario. But at the time of writing, we really do not know. What we can say, however, is that valuations in Asia are now at their all-time relative lows versus developed markets and at least we should see some support from high dividend yields in a region that has relatively low listed company corporate debt levels (Chart 2). Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 18 Section 2: Investment Manager’s Review Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chart 2: Are headwinds from Trump 2.0 discounted? We do not know but dialling back rhetoric would be positive for Asian stock markets which look oversold and offer attractive dividend yields Source: CLSA, IBES, MSCI, December 2024 Source: CLSA, MSCI, December 2024 In absolute terms, valuations in Asia also look reasonable, as shown in Chart 3 which has two of the indicators we use to determine the level of gearing 1 in the Company. Our top-down value indicator (rolling aggregate of price to earnings ratio, price to book 2 , dividend yield and price to cash flow) shows that Asian valuations are exactly in-line with the long-term average. Our bottom-up value indicator (number of stocks our research team cover in Asia with upside to our fair value) is running at 62%, which is above the long-term average of 55%, indicating reasonable value and good stock opportunities in the region. Chart 3: Our proprietary valuation indicators are now neutral to positive Schroders Top-Down Valuation Indicator (I) Schroders Bottom-Up Valuation Indicator Chart 3 Schroders Top-Down Valuation Indicator (I) Schroders Bottom-Up Valuation Indicator Chart 3 Source: Factset, Schroders, December 2024 1 Please refer to the “Alternative Performance Measures and Glossary”. 2 Price to Book ratio: Price-to-Book (P/B) ratio: Market Share Price/Book Value. Book value: value of a company’s total assets minus its total liabilities. Useful when comparing similar companies valuations within the same industry that follow a uniform accounting method for asset valuation. It can offer a view of how the market values a particular company’s stock and whether that value is comparable to the Book Value Per Share. EM versus DM relative + 12m consensus P/E APxj versus DM relative +12m consensus P/E Schroders Top-Down Valuation Indicator (I) EM versus DM relative dividend yield APxj versus DM relative dividend yield Schroders Bottom-Up Valuation Indicator Section 2: Investment Manager’s Review 19 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Given the indicators, at the time of writing, the Company is running with moderate gearing of 8.5% reflecting reasonable, albeit not oversold, valuations. This also means that the Company is running with little hedging as most of our hedging models also indicate moderate downside risks (a caveat: quantitative models do not tend to pick up President Trump’s tweets). At the time of writing, the only downside hedges in place are a small position in puts 1 on the Indian index. So, in summary, we enter 2025 with a very uncertain market outlook, however a lot of this looks to be reflected in Asian stock market valuations so, if we avoid the worst of Trump 2.0 and China risks ease, we can see the prospect for good total returns for the Company in the coming year. How is the Company positioned for the upcoming Year of the Snake? Chart 4 has the clusters we used in the review section with the current weightings of the Company and the positioning against the Reference Index. 1 Aputisanoptionscontractthatgivestheownertheright,nottheobligation,tosellacertainamountoftheunderlyingasset,atasetpricewithinaspecified time.Thebuyerofaputoptionbelievesthattheunderlyingstockwilldropbelowtheexercisepricebeforetheexpirationdate. Chart 4: Asian equities: one coherent asset class? Weviewthemasprimarilyfourdisparateinvestmentclusterswithdifferentdrivers Asian Equities: One coherent asset class? We view them as primarily four disparate investment clusters with different drivers Source: Schroders China/Hong Kong • Structurally challenged, secular bear markets. • Some good companies but valuations are not as low as the bulls will claim. • Hong Kong/China exposure 24%, underweight -7% Korea/Taiwan • Principally technology-heavy (semiconductors) stock markets. • Attractive companies with strong IP and entry barriers – cyclical but with growth. • Some of best stocks in Asia. • Exposure: Taiwan 25%/Korea 3%, Taiwan Overweight 6%/Korea Underweight 5% Australia/Singapore • Well-regulated stock markets in countries with strong secular attractions and good capitalist underpinnings. • Lower growth but lots of strong dividend yields and attractive total returns. • Australia/Singapore exposure 25%, overweight +6% India/ASEAN 1 • Genuine emerging markets. • Strong GDP growth but more volatile politics and regulation. • Positive long-term structural outlook in India, the Philippines and Indonesia but valuations in former are now expensive. • India exposure 13%, underweight -6% • ASEAN exposure 13%, overweight +10% 1 ASEAN excluding Singapore Source: Schroders For illustrative purposes only and does not constitute any recommendation to buy or sell the above-mentioned security/sector/country. Please note that the value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested. Looking at Cluster One, the Company remains underweight Hong Kong/China. As mentioned earlier, without a change in policy settings, we take the view that Chinese stock markets are in a secular bear market. We do not believe current, and hoped for, stimulus packages will reverse this. As shown in Chart 5, we have had at least eight supposed economic stimulus packages since 2008, and none have delivered a sustained rebound in Chinese stock markets. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 20 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Why is this? It is principally because stimulus packages do not address the underlying issues in the Chinese economy. Instead, they often exacerbate issues by creating more excess overcapacity in industries considered strategic, focus on building infrastructure of questionable value, and allowing banks to evergreen bad debts (Chart 6). % % of GDP, rhs Monetary easing Fiscal measures % % of GDP, rhs Monetary easing Fiscal measures Chart 5: Policy support is significant in size, but execution is key Latestsupportmeasuressignalapolicyshift,butasustainedrecoveryrequiresmore Source: Deutsche Bank Research, MoF, PBOC, Wind, October 2024. Source: Refinitiv Datastream, as at 30 September 2024, in local currency. Instead, what we would like to see in China is a reining in of financial excesses, crystallisation of bad debts, recapitalising banks, and the introduction of concrete broad-based measures to boost consumption. Dealing with a financial bubble is always painful, as your Portfolio Managers, who worked through the Japanese bubble, Asian financial crisis and the global financial crisis, know. However, without creative destruction and capital cycles you miss the essence of capitalism and, in our view, end up with a secular bear market. Charts 7, 8, and 9 explain the issues. The current policy focus in China, like Japan through the 1990s, is focused on keeping the ship afloat and avoiding taking pain; this is likely to be deflationary and a headwind for Chinese stock markets. Chart 6: Further investment-led stimulus could exacerbate overcapacity and pressure corporate earnings, which is negative for stockmarkets Arecap–China’sgrowthmodelandwhatitmeans? Chart 6 Source: NBS, NBER, Minack Advisors, October 2024 Source: NBS, MSCI, NBER, Minack Advisors, October 2024 EPS: Earnings per share 21 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review China’s latest stimulus package could potentially be the largest in history in nominal terms, and 3rd largest as a percentage of GDP This time is different? Policies driven stock market rallies are a regular event in China – but overall the structural issues reassert themselves... Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chart 7: What a financial bubble looks like Thisisthebiggestinhistory China’s figure is based on total social financing (TSF) credit, while India’s figure comes from Autonomous India TSF, which captures bank and non-bank credit. US, EU and Japan data are from The Bank for International Settlements (BIS) figures on broad credit, so as to be more comparable with China’s TSF. Source: BIS, CEIC, Autonomous Research Chart 8: Evidence of evergreening and extend and pretend Untilwegetcapitalcycles,creativedestruction–Zombieswillresultinlackofclearing Source: Wind, Autonomous Research, September 2024 NPL: Non-Performing Loans Over the past decade, the annual flow of credit in China has averaged 29% of GDP, which is 4-7x that in other large economies Systemwide NPL recognition falling at a time when macro backdrop worsened Despite a rising number of companies reporting losses ..... Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 22 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chart 9: China – there are structural reasons behind low consumption levels WhymassconsumptiontrendsinChinacouldcontinuetodisappoint–incomefromassetsismeagreinChina Source: Enodo Economics, CEIC, May 2023 So, why have anything in China? Unlike Japan in the 1990s, many of the private sector companies in China are adaptable and well run. Valuations are reasonable, though not as cheap as the China bulls claim. As Chart 10 shows, earnings in China have consistently disappointed and return on equity (ROE) has dropped precipitously. Chart 10: Is China oversold – the derating has been entirely consistent with the fundamentals – is the latter really about to turn around? 1 Source: FactSet, MSCI, RIMES, Morgan Stanley Research. Data as of 12 January 2025. Numbers are based on MSCI indices for each economy. 2 Source: IBES, DataStream, Morgan Stanley Research. Weekly data as of 9 January 2025. Another big difference in China versus Japan in the 1990s is that many of the listed companies pay dividends or buy back shares, so to meet our total return targets we do not need to see significant share price appreciation. The holdings in China are focused on the best private sector companies, ones that have strong market positions in areas with secular growth and that generate good cash flow which is being returned to shareholders. These are companies like Tencent (social media and gaming), Netease (gaming), Tencent Music (streaming), Trip.com (travel) and in Hong Kong companies like AIA (regional insurance) and Swire Pacific (airlines, property). In summary, we expect to remain underweight China and are structurally cautious on the market but as stockpickers, we find good opportunities and thus are happy to own selective names. Looking at our Cluster Two (Korea and Taiwan) the portfolio is slightly overweight in this investment area. This is primarily coming from a material overweight in technology as we have no domestically focused stocks in either Korea or Taiwan as both economies are mature and valuations/fundamentals for domestic stocks are unattractive. As mentioned earlier in the review section, we remain cautious on Korean “Value-up” having heard the story of improving corporate governance in Korea multiple times over the last 30 years. Whilst not completely sceptical, the proof is very much in the pudding. Household disposable income and consumption: international comparison P/B vs. ROE for global equities – Japan & China ROE are heading in opposite directions; for the US and India the debate is on valuation 1 MS EPS base-case forecasts for MSCI China at Dec-24 and Dec-25 2 Net income from assets as % of GDP: China-US comparison Section 2: Investment Manager’s Review 23 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Technology holdings have now been reduced to those we see as key long-term structural winners given industry changes, or those that we think can take market share. This means our key technology holdings are now just in a handful of companies like TSMC (effective monopoly in advanced nodes after Intel and Samsung failures in the foundry space), Chroma ATE (advanced chip testing), MediaTek (market share winner in chipsets and application-specific integrated circuits), Voltronic (increased outsourcing of power supply equipment) and ASE (requirements for more advanced chip packaging). Cluster Three (Australia and Singapore) is an area we added to over the course of 2024 and the portfolio is now materially overweight (vs. the Reference Index) in what is often considered the most boring part of the Asian investment universe. From your Portfolio Managers’ perspective, boring is often good – the Australian and Singapore stock markets offer good corporate governance, lots of dividends and reasonable earnings per share (EPS) growth (Chart 12). Despite this, they are nearly always considered the least attractive markets by sell-side strategists (right-hand graph in Chart 12) who fixate on top-line growth and false hopes of stimulus and reform (China and Korea). Technology is the overriding focus of Cluster Two. This time last year, we were bullish on technology and significantly overweight. Over the course of 2024, we have reduced exposure. Partly by taking profits from some of our technology stocks that have done well on AI hopes and are now trading above or close to reasonable valuations, but also by substantially reducing Samsung Electronics, which now looks decidedly challenged and return on invested capital negative. At this point, we are increasingly cautious on AI-themed stocks. We worry that we will see a hiatus in AI capital expenditure (the driver of Taiwan AI stocks) at some point as the reality of AI use cases and monetisation needs to catch up with the huge expenditure being undertaken by the likes of Microsoft, Amazon and Alphabet. As Chart 11 shows, on the left-hand chart, semiconductor sales have tended long-term to grow pretty much at a steady 7% per annum level (with some cyclicality for new product cycles like PCs in the 1990s, smartphones in 2005-08) and we don’t see AI applications suddenly changing this very consistent long-term trend. As the right- hand chart shows, any disappointment in semiconductor sales is likely to feed through to falling prices in Taiwan stocks. Chart 11: We do not see AI applications materially altering long-term semiconductor growth rates and the base effect means the year-on-year comparable looks more challenging for semiconductor stocks in Taiwan – time to take some profits? Source: CLSA forecasts, SIA/WSTS, August 2024 MSCI Taiwan (US$, year-on-year % change, pushed forward 3 months, right hand side) Globalsemisales(US$,year-on-year%change,lefthandside) World semiconductor manufacturer sales (monthly, US$bn, log scale) Global semiconductor manufacturer sales versus MSCI Taiwan momentum Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 24 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Our focus in Australia and Singapore is principally on dividend stocks, and we are still finding attractive opportunities in this space (Chart 13). The Company is called the “Schroder Asian Total Return Investment Company plc” as we are agnostic whether our total return comes from a 1% dividend and 8% capital gain or a 7% dividend and 2% capital gain – key is that stocks can meet our total return hurdles. We often tend to feel in Asia many investors forget the importance of dividends and total returns, instead just focusing on top-line growth and themes – much to their peril in places like China and, we believe going forward, India. Chart 13: Given increasing caution on many parts of the market – we are happy to rotate back to more defensive stocks in Singapore and Australia Source: CLSA, MSCI, Bloomberg, August 2024 Chart 12: Australia/Singapore: We like the structural outlook, especially as sell side strategists do not! Why payout ratios matter – better corporate governance, better EPS growth better mean better overall returns 1 For stocks in MSCI AC Asia Pacific ex Japan index, EPS growth correlates positively to payout ratios 2 High dividend-yielding Asian markets are the least preferred by sell-side strategists in 2024 3 40 .0 45 .0 50 .0 55 .0 60 .0 65 .0 70 .0 75 .0 80 .0 85 .0 10 .0 20 .0 30 .0 40 .0 50 .0 60 .0 70 .0 80 .0 CLSA Corporate governance score Payout ratio (%) Australia Singapore Taiwan Malaysia Thailand Hong Kong India China Indonesia Philippines Korea -90 -60 -30 0 30 60 90 120 150 25 45 65 Subsequent Real EPS Growth (%) Payout ratio (%) Australia China HK Korea Taiwan Singapore Malaysia Thailand Indonesia Philippines India - 2 0% 0% 20% 40% 60% 80% 100% 0.00 1.00 2.00 3.00 4.00 5.00 % sell-side strategists who are overweight Dividend yield (%) Why payout ratios matter – better corporate governance, better EPS growth better mean better overall returns 1 For stocks in MSCI AC Asia Pacific ex Japan index, EPS growth correlates positively to payout ratios 2 High dividend-yielding Asian markets are the least preferred by sell-side strategists in 2024 3 40 .0 45 .0 50 .0 55 .0 60 .0 65 .0 70 .0 75 .0 80 .0 85 .0 10 .0 20 .0 30 .0 40 .0 50 .0 60 .0 70 .0 80 .0 CLSA Corporate governance score Payout ratio (%) Australia Singapore Taiwan Malaysia Thailand Hong Kong India China Indonesia Philippines Korea -90 -60 -30 0 30 60 90 120 150 25 45 65 Subsequent Real EPS Growth (%) Payout ratio (%) Australia China HK Korea Taiwan Singapore Malaysia Thailand Indonesia Philippines India - 2 0% 0% 20% 40% 60% 80% 100% 0.00 1.00 2.00 3.00 4.00 5.00 % sell-side strategists who are overweight Dividend yield (%) Why payout ratios matter – better corporate governance, better EPS growth better mean better overall returns 1 For stocks in MSCI AC Asia Pacific ex Japan index, EPS growth correlates positively to payout ratios 2 High dividend-yielding Asian markets are the least preferred by sell-side strategists in 2024 3 40 .0 45 .0 50 .0 55 .0 60 .0 65 .0 70 .0 75 .0 80 .0 85 .0 10 .0 20 .0 30 .0 40 .0 50 .0 60 .0 70 .0 80 .0 CLSA Corporate governance score Payout ratio (%) Australia Singapore Taiwan Malaysia Thailand Hong Kong India China Indonesia Philippines Korea -90 -60 -30 0 30 60 90 120 150 25 45 65 Subsequent Real EPS Growth (%) Payout ratio (%) Australia China HK Korea Taiwan Singapore Malaysia Thailand Indonesia Philippines India - 2 0% 0% 20% 40% 60% 80% 100% 0.00 1.00 2.00 3.00 4.00 5.00 % sell-side strategists who are overweight Dividend yield (%) 1 Source: FactSet, MSCI, Schroders, July 2019 2 Source: Factset, MSCI, Schroders, December 2022 3 Source: Factset, MSCI, Schroders Why payout ratios matter – better corporate governance, better EPS growth mean better overall returns 1 Asia Pacific dividend payout ratios (latest versus 10-year average) Asia Pacific versus US shareholder yield For stocks in MSCI AC Asia Pacific ex Japan index, EPS growth correlates positively to payout ratios 2 High dividend-yielding Asian markets are the least preferred by sell-side strategists in 2024 3 Section 2: Investment Manager’s Review 25 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chart 15: Australia has a better macroeconomic outlook than most of Asia Positivedemographicandagoodinstitutionalframework=Apositiveoutlook Strong, skilled population growth and good infrastructure means the Australian economy has better long-term growth prospects than many other Asian countries. 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% Au strali a Phi lippi nes Malaysia Indi a Canada Indonesia NZ US UK Forecast population growth per annum (till 2030) 1 World Economic Forum – The Global Competitiveness Report 2 Strong, skilled population growth and good infrastructure means the Australian economy has better long-term growth prospects than many other Asian countries. 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% Au strali a Phi lippi nes Malaysia Indi a Canada Indonesia NZ US UK Forecast population growth per annum (till 2030) 1 World Economic Forum – The Global Competitiveness Report 2 1 Source: Australian Government 2023 Intergenerational Report; The World Bank population estimates and projections. 2 Source: World Economic Forum, The Global Competitiveness Report 2019 In Singapore, the Company is primarily focused on financials. We continue to favour Singapore banks given their regional footprints, good transparent management, and the tailwind they enjoy as the wealth management centre of Asia moves from Hong Kong to Singapore. As Chart 16 shows, these are businesses that are very well positioned and continue to compound nicely. In Australia we are not just focused on yield; we also own a selection of global/US centric companies in the healthcare and industrial space like ResMed, Brambles, CSL, Aristocrat, Cochlear, and James Hardie. Valuations in Australia are reasonable given the quality of the companies and the strong positioning many businesses have in their respective segments. As Chart 14 shows, the sluggish domestic economy in Australia has turned sentiment cautious, and this has led to a moderate derating. Structurally, with strong demographics, good rule of law, and excellent social frameworks, we are positive long-term on the Australia economy and expect it to grow faster than most Asian economies in the medium-term (Chart 15). Chart 14: Bad news in prices? – Australian brokers are gloomy. Valuations now look reasonable to us Source: CLSA, IBES, Refinitiv, August 2024 1 Cyclically adjusted price earnings Broker buys less holds and sells as % of total recommendations Strong, skilled population growth and good infrastructure means the Australian economy has better long-term growth prospects than many other Asian countries. Forecast population growth per annum (till 2030) 1 World Economic Forum – The Global Competitiveness Report 2 Australia CAPE 1 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 26 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chart 16: What do we like: Singapore banks “Boring compounders” with good returns and interesting wealth opportunity This brings us to our last cluster, the genuine Asian emerging stock markets: India and ASEAN. Looking at India first, the positive story of improving economic potential based on better infrastructure, digitisation of the economy and reduction of red tape has been widely touted and has genuine validity. It is also true that India, geopolitically is in a better place than many countries, being neither obviously aligned to the USA or China, and being a very small exporter of goods, it is less vulnerable to tariffs. However, for all the positives, structural impediments remain whether it is an education system that for the majority is poor, difficult business conditions and low levels of female participation in the workforce (many professions are effectively still restricted to men). It is also clear that the benefits of growth are being garnered by the few in India, not the majority. This is why Prime Minister Modi did poorly in the 2024 elections and also why overall consumer confidence is falling and consumption in most categories sluggish (chart 17). Well-positioned to take advantage of blossoming wealth management opportunity 1 Oligopolistic industry structure underpins good sustainable returns 1 Have delivered strong total return over time 2 75 150 225 300 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Singapore banks total return $, indexed 0 500 1,000 1,500 2,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Singapore wealth management SG$m 0.60% 0.80% 1.00% 1.20% 1.40% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Return on assets Well-positioned to take advantage of blossoming wealth management opportunity 1 Oligopolistic industry structure underpins good sustainable returns 1 Have delivered strong total return over time 2 75 150 225 300 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Singapore banks total return $, indexed 0 500 1,000 1,500 2,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Singapore wealth management SG$m 0.60% 0.80% 1.00% 1.20% 1.40% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Return on assets Well-positioned to take advantage of blossoming wealth management opportunity 1 Oligopolistic industry structure underpins good sustainable returns 1 Have delivered strong total return over time 2 75 150 225 300 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Singapore banks total return $, indexed 0 500 1,000 1,500 2,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Singapore wealth management SG$m 0.60% 0.80% 1.00% 1.20% 1.40% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23 Return on assets 1 Source: Company financials; 2 Source: Refinitiv; 3 United Overseas DBS UOB 3 OCBC DBS UOB 3 OCBC Chart 17: High food prices and low income growth are sapping confidence and consumer expenditure in India Source: CEIC, Reserve Bank of India (RBI), Macquarie Research, December 2024 Source: Company data, Macquarie Research, December 2024 DBS UOB 3 OCBC Oligopolistic industry structure underpins good sustainable returns 1 RBI Consumer Confidence Index Consumer staples sales growth rolling 4Q Y/Y Well-positioned to take advantage of blossoming wealth management opportunity 1 Have delivered strong total return over time 2 Section 2: Investment Manager’s Review 27 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chart 18: Consensus is forecasting aggressive earnings growth in India, we expect the historic trend of consistent downgrades to exuberant earnings expectation to resume Source: Factset, Macquarie Research, December 2024 When you combine the potentially disappointing earnings backdrop with high valuations (Chart 19), which have been driven up by very active levels of domestic retail participation often via “thematic” funds, we see material risks to the Indian market. It is perhaps not surprising that insider selling and private equity exits are accelerating, historically this has been timed at market peaks (Chart 20). Private capital expenditure and foreign direct investment also continue to disappoint versus expectations. This is not to say the general environment in India has not improved; it has. However, not to the extent the bulls proclaim, and we expect the economic numbers will disappoint compared to high expectations. This, we think, leaves the stock market vulnerable. Indian brokers and domestic investors tend to be extremely optimistic, and in India it is often considered unpatriotic to be downbeat. The result of this is corporate earnings nearly always fail to meet consensus expectations, as shown in Chart 18. This chart shows the trend in stockbrokers’ earnings forecasts for the Indian stock market over time – typically earnings come in 20% or more below the initial forecasts. The exception was 2023 and 2024 as we saw a post-Covid earnings rebound (financial year end in India is March). We are currently seeing significant downgrades to 2025 and 2026 earnings and expect this to continue given the weaker-than-expected economy. Consensus earnings expectations – India Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 28 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Chart 19: Across measures, both absolute and relative, forward multiples in India are 2+ standard deviations above the long-period average; how long can the liquidity party continue? India vs Emerging Markets (EM) vs World: Price Earnings rolling 2 year forward Source: Factset, Macquarie Research, December 2024 Chart 20 – Primary equity activity is running at the fastest pace on record, historically peaks in issuance are typically coincident with peaks in equity market momentum India total issuance (US$bn) versus equity market momentum Note: IPOs+additional Source: CLSA, Bloomberg, MSCI, August 2024 Section 2: Investment Manager’s Review 29 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 This is not to say we can find nothing to own in India; we selectively like private sector banks where valuations are reasonable, healthcare and travel-related names. Overall, however, India is the biggest single underweight in the portfolio, and we would need to see a material correction (probably driven by an exit of domestic retail money) for us to look to move overweight. The smaller ASEAN stock markets (Thailand, Indonesia, the Philippines, Malaysia, Vietnam) had a poor close to 2024 as they are deemed more vulnerable to higher US interest rates and a strong dollar. Economically, most are ticking along at reasonable growth levels (3% to 5%) but at a pace that, like India, is below expectations, and again like India, the consumer is facing pressure from rising food prices and higher interest rates. Animal spirits in the main are very much lacking. Unlike India, however, this increasingly looks to be reflected in stock market valuations. As shown in Chart 21, in Indonesia and the Philippines, despite a good rebound in ROE from Covid lows, stock markets have remained moribund (as proxied by price to book or PB). The Company has reasonable positions across the smaller stock markets in ASEAN, mostly focused on the financial and consumer sectors. The spectre of Trump 2.0 and a strong dollar is likely to mean stock markets in ASEAN remain under pressure near-term and higher interest rates are expected to be a headwind for both economies and corporate earnings. With valuations close to historic lows, we do find good stock-level opportunities in the region, and thus see this as one area of potential positive surprise in 2025 if current headwinds were to ease. We hope this report has provided a reasonably comprehensive review on performance and the positioning of the Company. As ever, Asia remains a large, a fascinating and disparate region and we see plenty of interesting investment opportunities at the current time. To recap on our previous comments: we enter 2025 in an uncertain market outlook for Asian stock markets; however a lot of this looks to be reflected in valuations so, if we avoid the worst of Trump 2.0 and China risks ease, we see the prospect for the Company to make good total returns in the coming year. Robin Parbrook and Lee King Fuei Portfolio Managers Schroder Investment Management Limited 18 March 2025 For illustrative purposes only and does not constitute to any recommendation to buy or sell the above-mentioned security/sector/country. Please note that the value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested. Chart 21: ASEAN – Improving fundamentals not reflected in valuation Source: Bloomberg The Philippines Indonesia Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 30 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Taipei 101, Taipei, Taiwan Section 2: Investment Manager’s Review 31 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Top Ten Investments At 31 December 2024 Market: China Sector: Communication Services Portfolio exposure: £26.1m % of portfolio: 5.0% Market: Taiwan Sector: Information Technology Portfolio exposure: £61.3m % of portfolio: 11.7% Market: Taiwan Sector: Information Technology Portfolio exposure: £17.4m % of portfolio: 3.3% Market: Singapore Sector: Financials Portfolio exposure: £17.1m % of portfolio: 3.3% 2 1 3 4 Tencent TSMC MediaTek DBS Group TSMC is a Taiwanese provider of semiconductor manufacturing services and the world’s largest logic chip contract manufacturer. Its dominant position, in the manufacturing of the most cutting-edge chips, is a result of a long track record of research and development driven innovation. TSMC’s customers include many of the world’s most advanced chip design companies, for applications ranging from smartphone processors to the most advanced AI chips. Tencent is China’s biggest internet company, with leading positions in mobile gaming, online advertising and mobile payments. Its WeChat app is the leading instant messaging app in China, and is a key platform for other features, such as payments and social media content, and third-party services accessed through “mini- programs” on the platform. In addition to its own operations, Tencent is a significant shareholder in several other prominent internet companies, in China and abroad. MediaTek is a Taiwanese company engaged in the design and distribution of semiconductor chips. Its products focus on mobile connectivity, for example 5G mobile communication chips, as well as Bluetooth and Wi-Fi chips, and are mainly used in mobile phones, digital TVs, PCs, home appliances, wearable devices and Internet of Things devices. DBS Group is a financial services group headquartered in Singapore. Its services include retail and corporate banking, wealth management, and capital markets solutions. Renowned for its digital innovation and customer- centric approach, DBS Group has been recognised as one of the world’s best digital banks. The bank operates across key markets in Asia, including China, India, Indonesia, and Taiwan. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 32 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 • Market: India Sector: Financials Portfolio exposure: £11.7m % of portfolio: 2.2% Market: India Sector: Financials Portfolio exposure: £13.7m % of portfolio: 2.6% Market: Australia Sector: Consumer services Portfolio exposure: £11.1m % of portfolio: 2.1% Market: Hong Kong Sector: Financials Portfolio exposure: £12.8m % of portfolio: 2.5% Market: The Philippines Sector: Industrials Portfolio exposure: £11.0m % of portfolio: 2.1% Market: Indonesia Sector: Financials Portfolio exposure: £12.5m % of portfolio: 2.4% 8 5 9 6 10 7 ICICI Bank HDFC Bank Aristocrat Leisure AIA International Container Terminal Services Bank Mandiri ICICI Bank is an Indian financial services provider, offering a range of banking services and other financial products, including retail banking, wholesale banking and insurance. It is one of India’s leading private sector banks, with around 6,000 branches. India is a relatively underpenetrated market for financial services. HDFC Bank is an Indian financial services provider, offering banking, insurance and mutual funds among other financial products. Following its merger with HDFC Ltd, the non bank financial company, it is now among India’s largest private sector financial companies, serving over 90 million customers through both traditional and digital channels. India is a relatively underpenetrated market for fi nancial services. Aristocrat Leisure is a global leader in gaming technology, specialising in slot machines, digital gaming, and mobile social casinos. The company engages in both land-based and digital businesses, and commands a strong market position given its innovative content and superior game design, driving solid recurring revenue from both land-based and digital gaming. The dominant position and superior product innovation of the company should also enable it to capitalise on the longer-term trend of the growing legalisation of online gambling over time. AIA is an insurance company, providing life insurance, accident and health insurance and savings plans, as well as financial products and services to corporate clients. Based in Hong Kong, the company operates in a wide range of markets and has established its leadership positions in key markets within the Asia Pacific region. Its wide Asian footprint and strong execution should continue to support long-term business growth. International Container Terminal Services is one of the largest port operators in emerging markets. This remains one of the most impressive management teams in ASEAN (historically navigating its way through different cycles well) and its long-term returns on invested capital have been robust. The company has demonstrated superior yield management, with further upside levers in key terminals through capacity expansion and new value-added services which should continue to support strong earnings and dividend growth over time. Bank Mandiri is one of Indonesia’s largest banks, serving both retail and corporate customers. Established in 1998 as part of a restructuring program for four government-owned banks, Bank Mandiri remains majority government-owned. It also offers other financial services, such as insurance and securities brokerage. Indonesia is a relatively underpenetrated market for financial services. Section 2: Investment Manager’s Review 33 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Investment Portfolio At 31 December 2024 Fair Value £’000 Portfolio Exposure £’000 Portfolio Exposure % 1 Taiwan TSMC 61,317 61,317 11.7 MediaTek 17,369 17,369 3.3 ChromaATE 9,164 9,164 1.7 ASETechnology 7,552 7,552 1.4 Voltronic Power Technology 6,379 6,379 1.2 Nien Made Enterprise 5,623 5,623 1.1 Eclat Textile 4,655 4,655 0.9 Merida Industry 4,501 4,501 0.9 Advantech 3,597 3,597 0.7 King Vuan Electronics 2,080 2,080 0.4 Total Taiwan 122,237 122,237 23.3 Australia AristocratLeisure 11,129 11,129 2.1 ResMed 10,569 10,569 2.0 CSL 8,167 8,167 1.6 Brambles 7,629 7,629 1.4 MedibankPrivate 7,053 7,053 1.4 Cochlear 6,606 6,606 1.3 BHP Billiton 2 6,535 6,535 1.3 Seek 5,279 5,279 1.0 Orica 5,261 5,261 1.0 James Hardie Industries 4,883 4,883 0.9 Incitec Pivot 3,519 3,519 0.7 Bluescope Steel 2,984 2,984 0.6 Total Australia 79,614 79,614 15.3 Mainland China Tencent 3 26,151 26,151 5.0 ContemporaryAmperexTechnology 8,136 8,136 1.6 NetEase 3 7,089 7,089 1.4 Trip.com 3 6,363 6,363 1.2 Shenzhou International Group 3 6,222 6,222 1.2 NewOrientalEducation&TechnologyGroup(ADR) 4 5,995 5,995 1.1 TencentMusicEntertainment(ADR) 4 (CFD) (213) 5,617 1.1 Meituan Dianping 3 5,038 5,038 0.9 Sands China 3 4,621 4,621 0.9 Total Mainland China 69,402 75,232 14.4 India HDFC Bank 13,719 13,719 2.6 ICICI Bank 11,661 11,661 2.2 ApolloHospitalsEnterprise 10,090 10,090 1.9 MakeMyTrip 4 9,865 9,865 1.9 Bharat Electronics 6,224 6,224 1.2 Tata Consultancy Services 5,935 5,935 1.1 Five Star Business Finance 4,727 4,727 0.9 Hyundai Motor India 936 936 0.2 Total India 63,157 63,157 12.0 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 34 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Fair Value £’000 Portfolio Exposure £’000 Portfolio Exposure % 1 Hong Kong (SAR) AIA 12,807 12,807 2.5 SwirePacific 10,587 10,587 2.0 Techtronic Industries 9,405 9,405 1.8 Galaxy Entertainment 8,000 8,000 1.5 Total Hong Kong (SAR) 40,799 40,799 7.8 Singapore DBS Group 17,140 17,140 3.3 Singapore Exchange 8,713 8,713 1.7 United Overseas Bank 7,260 7,260 1.4 Sheng Siong 5,557 5,557 1.1 Total Singapore 38,670 38,670 7.5 Philippines International Container Terminal Services 10,996 10,996 2.1 CenturyPacificFood 6,423 6,423 1.2 BDOUnibank 6,042 6,042 1.2 SM Investments 6,012 6,012 1.2 Wilcon Depot 5,125 5,125 1.0 AyalaLand 3,962 3,962 0.7 Total Philippines 38,560 38,560 7.4 Indonesia Bank Mandiri 12,479 12,479 2.4 SumberAlfariaTrijayaTbkPT 5,158 5,158 1.0 Total Indonesia 17,637 17,637 3.4 South Korea Samsung Electronics 10,296 10,296 2.0 SK Hynix 6,307 6,307 1.2 Total South Korea 16,603 16,603 3.2 Vietnam FPT 9,205 9,205 1.7 Gemadept 4,171 4,171 0.8 Total Vietnam 13,376 13,376 2.5 Thailand Bangkok Dusit Medical Services 6,664 6,664 1.3 Total Thailand 6,664 6,664 1.3 United Kingdom Rio Tinto (CFD) (41) 5,676 1.1 Total United Kingdom (41) 5,676 1.1 United States Las Vegas Sands (CFD) 30 4,014 0.8 Total United States 30 4,014 0.8 Total Investments (including CFDs) 5 506,708 522,239 100.0 Section 2: Investment Manager’s Review 35 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Fair Value £’000 Portfolio Exposure £’000 Portfolio Exposure % 1 Derivative Financial Instruments Index Put Options NIFTYMPutOption24500February2025 505 Total Index Put Options 6 505 Forward Currency Contract 7 458 Total Investments and Derivative Financial Instruments – Portfolio Exposure 522,239 100.0 Total Investments and Derivative Financial Instruments – Fair Value 507,671 Investments are classified by the Manager in the region or country of their main business operations or listing. The portfolio exposure indicates the impact on market price movements resulting from the ownership of shares and derivative instruments. Fair value represents the true value of the portfolio, which is reflected on the balance sheet. In the case of holding a CFD, the fair value reflects the profit or loss generated by the CFD since its inception, based on the movement of the underlying share price. However, when the Company solely holds shares, both the fair value and the portfolio exposure align. Highlighted stocks are the twenty largest investments, which by value account for 55.5% (2023: 56.8%). 1 Portfolio exposure is expressed as a percentage of total investments and financial derivative instruments. 2 Listed in the UK. 3 Listed in Hong Kong (SAR). 4 Listed in the USA. 5 Comprises the following: Fair Value £’000 Portfolio Exposure £’000 Equities 500,937 500,937 AmericanDepositaryReceipts(ADR) 5,995 5,995 CFDs (224) 15,307 Total Investments (including CFDs) 506,708 522,239 6 The options give downside protection to 2.08% total investments. 7 Comprises a single contract to purchase USD27.82 million for CNH200 million, for settlement on 16 January 2025. The contract is valued at fair value, being the cost of closing out the contract at the balance sheet date. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 36 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Investment Process Investment philosophy Translating philosophy into process We believe that Asian stock markets are inefficient and provide strong potential for adding value through active fund management. Source:Schroders.Forillustrativepurposesonlyandshouldnotbeviewedasarecommendationtobuyorsell. We believe that this value is best extracted using a fundamental, bottom-up stock selection approach. The durability of earnings and the alignment of our interests with management and major shareholders are key considerations. We seek to buy quality companies at the right price. We believe that applying a systematic, disciplined approach, with a strong team culture, increases our ability to add value. A disciplined investment process, applied systematically by an experienced team, is important for adding value over the long- term. Schroders’ investment process is informed by their beliefs about Asian markets, based on extensive experience gained investing in the region for over 50 years. These beliefs, and their implications, result in stock selection being placed at the heart of the Company’s investment approach, as explained in the diagram below: Philosophical beliefs Deduction Process Asian markets are less well researched Add value from stock selection by consistent application of bottom-up process • Disciplined long-term stock analysis by a large, on-the-ground team of experienced investment professionals covering Asia Pacific ex Japan • Understanding of business value Asian stocks have higher specific risks Seek quality – at the right price • Focus on superior or improving return on invested capital (ROIC) over time • Sustainability and durability of earnings are key considerations • Corporate governance focus Asian markets are short-term and volatile Seek long-term, not short- term valuation anomalies • Take a long-term time horizon • Exploit opportunities created by short-term volatility Source:Schroders.Forillustrativepurposesonlyandshouldnotbeviewedasarecommendationtobuyorsell. Section 2: Investment Manager’s Review 37 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Stock research The key input into the Investment Manager’s stock selection decisions is the fundamental research carried out by the analyst team, the majority of which is done using internal research tools and valuation models. 1 With a universe of around 5,000 potential names to choose from, in what has historically been a volatile region, the Investment Manager has a bias towards ‘quality’ companies. The analysts look to identify those companies which are most likely to be able to grow shareholder value over the long term, by making assessments of the financial and non- financial (including sustainability) factors which influence company returns. The analytical focus is on the future trend in a company’s ROIC relative to its weighted average cost of capital (WACC), in the belief that this reflects the attractiveness and sustainability of the business model and serves as a predictor of long-term shareholder returns. Analysts spend much of their time meeting with companies in their sectors, as well as with industry experts and colleagues, so that they can evaluate the “moats”, or true competitive advantage, around the businesses they are analysing and ultimately be in a position to make a recommendation on companies that could generate superior shareholder value over the long-term. The output of this work is usually in the form of research notes and company models, as well as standard data points – a fair value and recommendation grade, its Shareholder Return Classification (“SRC”) which includes an assessment of the company’s return profile as described above, and an ESG appraisal and score. Portfolio construction With input from the team of research analysts, the Portfolio Managers generate stock ideas by combining their own research (for example, by undertaking research visits and meetings with company management) and by drawing on a number of other sources including other investment professionals within Schroders, quantitative screens, and external research providers. Using all of these inputs, the Portfolio Managers will decide which stocks to hold, and at what weightings. In doing so, they will consider all the outputs from the analysts’ work (such as the upside to fair value), the level of conviction they have in the investment thesis and any identified risks (including those relating to ESG) relative to the rest of the opportunity set. The primary objective of this process is to create a portfolio with an appropriate level of stock specific risk as the primary driver of returns. While the portfolio construction process is primarily driven by bottom-up stock selection, there is also a top-down strategic and tactical hedge overlay process, carried out on a monthly basis, which combines the output of in-house quantitative models and the qualitative views of the Portfolio Managers. The purpose of this “top-down overlay” is to identify and adjust for any unwanted systematic risks (or market risks) which have resulted from the bottom-up process. Top-down factors looked at in this process may include macroeconomic conditions, inflation and interest rate dynamics, politics/geopolitics, aggregate market valuations and measures of investor sentiment. This allows the Portfolio Managers to construct the portfolio using the most attractive bottom-up ideas, while helping to provide some downside protection through reducing specific market risks and lowering overall return volatility. They will also harness Schroders’ proprietary risk management systems to provide a quantitative view of the characteristics of the portfolio. This results in a relatively diversified portfolio, typically with a ‘quality’ bias. Investment team A key strength of the Investment Manager is its team of investment professionals based in the region. The two Portfolio Managers, who themselves have well over five decades of investment experience between them, are supported by a team of 45 equity analysts based across 6 offices in Asia Pacific ex-Japan, who have an average of over 17 years’ investment experience 2 . Being based in the region means that the analysts are in regular direct contact with the companies which they are covering, with the team carrying out over 2,700 company contacts per year 3 . This regular contact allows the team to gain a thorough understanding of a company’s business model and management culture, the key issues they are facing and their strategies to navigate an ever-changing business environment. Moreover, since the local investors in each country are usually the key owners of the local markets, being present on the ground enables the Investment Manager to understand how those major local investors perceive and value companies. It is this knowledge base, paired with the expertise of the Investment Manager’s investment professionals, which adds value to the bottom-up approach to stock selection. The locally based analyst team is supplemented by other resources across the Schroders group, including the UK-based Sustainable Investment Team and Investment Insight Unit, as well as other equity teams focused on global and emerging markets. 1 ThestockresearchprocessdescribedherecoversthatundertakenbytheteamoflocallybasedAsiaexJapananalysts.Thedetailofresearchinotherregions whereanalystsreportlocally(e.g.Australia,India)maydiffer,butisunderpinnedbythesamebroadapproach. 2 TeaminformationasatDecember2024.The45ex-JapananalystsincludeSchroders’localspecialistteamofequityanalystsinSydney,aswellasajoint-venture teamofIndianequityanalystsatAxisAssetManagement(AxisAMC)inMumbai. 3 Calendar year 2024. Source: Schroders. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 2: Investment Manager’s Review 38 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 ESG Integration Integration of ESG into the investment process 1 It is important to note that the Company does not have a specific ESG/sustainability orientation, or target outcome. The Company’s investment objective can be found in the Strategic Report on page 45. The approach of the Manager is to incorporate into its decision-making a thorough assessment of management quality, environmental, social and governance factors, whether implicitly or explicitly. The Manager believes that integrating an analysis and evaluation of ESG factors in the security valuation and selection process helps to enhance and protect long-term shareholder value, and that the appraisal of non-financial factors, including ESG considerations, contributes to a better understanding of a company’s risk characteristics and return potential. Assessing the durability of a company’s returns and financial position has therefore always been at the core of the Manager’s research and investment decisions in Asia. Schroders’ sustainability practice has a history of over 20 years. Today a team of more than 40 dedicated members of the Sustainable Investment team (as at 31 October 2024) develop proprietary ESG tools, such as CONTEXT TM and SustainEx TM which support individual investment teams including the Asian equities team. The carbon footprint of the companies and the portfolio are monitored over time and the proprietary SustainEx TM tool measures positive and negative externalities generated by the companies. Asia Context TM , which is the principal tool employed for the Manager’s ESG analysis as it pertains to the Company’s investments, captures the Manager’s ESG analysis in one template using a stakeholder-based framework. It provides a clear and broad roadmap on the issues requiring engagement, helps refresh the team’s focus on ROIC and enhances appreciation of the downside and upside risks to a company’s business model. Source: Schroders. The context framework: Understanding how a company manages it relationships with stakeholders Environment Have you put in place an energy transition plan? Are you managing operating impacts? Regulators How competitive is your market? Are you paying a fair rate of tax? Suppliers How exposed is your supply chain to disruption risks? How strong are your supplier relationships? Customers How is your brand perceived? What’s in your produce pipeline? Employees How do your employees perform? How motivated is your team? Communities What support do you offer your local community? Have you committed to protect human rights? Active ownership Schroders has a long history of active ownership, including engagement with companies on ESG related matters, for the past two decades. Direct company contact is an important component of the initial due diligence and ongoing monitoring process. These regular engagements form an important aspect of the Manager’s role as a steward of clients’ capital and allows deployment of capital in businesses with long-term sustainability of returns and shareholder value creation. Corporate Governance analysts in the Sustainable Investment team will also work alongside investors and internal compliance and legal teams to vote all proxies where possible, and to ensure the Manager’s voting activities comply with its ESG policy. To enhance the Asia team’s ESG expertise, two members of the Sustainable Investment team are based in the region, directly supporting the Asian capability and ensuring they are kept fully informed of the relevant output of the Sustainable Investment team in London. During the year, Sustainable Equity Analyst on the Asia team brought additional insight and perspective to ESG analysis and engagement. 1 TheaboveESGframeworkcoversinvestmentsincompaniesresearchedbyourteamoflocallybasedAsiaexJapananalysts.ThedetailofESGcoverageinother regionswhereanalystsreportlocally(e.g.Australia,India)maydiffer,butisunderpinnedbythesamebroadapproach. Section 2: Investment Manager’s Review 39 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 ESG analysis impacts the investment process in four ways. 1) Initial screening – ESG helps determine which companies are considered to be investable as part of an initial screening, which is in addition to Schroders’ group-wide exclusions. 1 2) Durability of earnings – ESG analysis helps the investment team understand the impact ESG externalities may have on the future earnings power of the business and the ROIC and SRC of the company. 3) Fair Value and recommendation – ESG is an indirect and direct input into our fair value estimate of a company. Indirect, to the extent that a company’s SRC may influence the assumptions used in establishing the fair value estimate of a company; and direct, to the extent that the Manager may apply an additional explicit discount/premium to that fair value estimate. 4) Portfolio construction – ESG helps shape portfolio construction and may influence how portfolio managers size positions. For example, poor ESG performance or heightened ESG risks may result in a decision to underweight a security, hold a smaller position size or avoid an investment completely. There is no automatic rule – each investment opportunity is assessed on a case-by-case basis, with the focus on the materiality of ESG factors on a company’s valuation and risk profile. In summary, ESG analysis helps determine which companies are looked at, how the Manager assesses their durability and, hence, how they are valued. And while company valuations ultimately drive portfolio construction, ESG insights play a role in the investment process and may influence how portfolio managers size positions within a portfolio. Furthermore, the Manager’s ESG analysis is broad- reaching and is not only concerned with the potential downside risks that are identified, but also the upside return implications for stocks in which the Company invests. The table below shows the Manager’s engagement in respect of portfolio holdings and voting: As at 31 December 2024 As at 31 December 2023 Shareholder meetings voted at 68 73 Numberofproposalsvotedon 641 606 Numberofvotesagainstmanagement 47 56 Votes against management (%) 7.3 9.2 Engagements encompass all instances where we cover ESG-specific issues with a company, guided by our Engagement Blueprint. We document these engagements in our proprietary platform, Active IQ, allowing us to monitor progress based on a milestone approach. Where the Manager voted against management on behalf of the Company, in most cases, during 2024, these votes related to the board (the election of directors and their independence), capital management (where proposals are not considered in the best interests of shareholders), and compensation (concerns around remuneration levels and alignment with shareholders). 1 Schroders applies group-level exclusions to all Schroders funds that are directly managed. These group-level exclusions relate to controversial weapons and companiesthatgeneratemorethan20%oftheirrevenuesfromthermalcoalmining.Detailscanbefoundatthefollowinglink:https://www.schroders.com/en/ global/individual/about-us/what-we-do/sus. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 40 Section 2: Investment Manager’s Review Job No: 53868 Proof Event: 36 Black Line Level: 7 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Surabaya, East Java, Indonesia 41 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 5 Black Line Level: 0 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Victoria Memorial, Kolkata, India Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 42 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Section 3: Strategic Report The Company 44 Stakeholder Engagement – Section 172 Report 48 Risk Report 52 Conclusion 56 43 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 43 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Purpose, values and culture The Company’s purpose is to create long-term shareholder value. The Company’s culture is driven by its values: transparency; engagement; and rigour, with collegial behaviour and constructive challenge at Board level. The values are all centred on achieving returns for shareholders in line with the Company’s investment objective. The Board also promotes the effective management, or mitigation, of the potential risks faced by the Company. To the extent it does not conflict with the investment objective, the Company’s operations are structured with regard to all its stakeholders and takes account of the impact of the Company’s operations on the environment and community. Acting with high standards of integrity and transparency, the Board is committed to encouraging a culture that is responsive to the views of shareholders and its wider stakeholders. As the Company has no employees and acts through its service providers, its culture is represented by the values and behaviour of the Board and third parties to which it delegates certain activities. The Board aims to fulfil the Company’s investment objective by encouraging a culture of constructive challenge with all key suppliers and openness with all stakeholders. The Board is responsible for embedding the Company’s culture in the Company’s operations. The Board recognises the Company’s responsibilities with respect to corporate and social responsibility and engages with its outsourced service providers to safeguard the Company’s interests. As part of this ongoing monitoring, the Board receives reports from its service providers regarding their anti-bribery and corruption policies; Modern Slavery Act 2015 statements; diversity policies; and greenhouse gas and energy usage reporting. The Company Business model The Company is a listed investment trust, that has outsourced its operations to third party service providers. The Board has appointed the Manager, Schroder Unit Trusts Limited, to implement the investment strategy and to manage the Company’s assets in line with the appropriate restrictions placed on it by the Board, including limits on the type and relative size of holdings which may be held in the portfolio and on the use of gearing, cash, derivatives and other financial instruments, as appropriate. The terms of the appointment of the Manager are described more completely in the Directors’ Report including the delegation of investment management services to the Investment Manager, Schroder Investment Management Limited. The Manager also promotes the Company using its sales, PR and marketing teams. The Board and Manager work together to deliver the Company’s investment objective, as demonstrated in the following diagram. • Set objectives, strategy and key performance indicators (KPIs) • Appoints the Manager and other service providers to achieve objectives • The Investment Manager implements the investment strategy by following an investment process • Supported by strong research and risk environment • Regular reporting and interaction with the Board The Board is focused on ensuring that: • the Company remains attractive to investors • the fees and ongoing charges remain competitive • Marketing, PR and sales capability of the Manager • Support from the corporate broker with secondary market intervention to support discount/premium management • Portfolio and risk management • Achievement of KPIs • Use of gearing • Discount/premium and liquidity management through share issuance and repurchase SHAREHOLDER VALUE Board PromotionInvestment OversightStrategy Competitiveness Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 44 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Investment trust status and continuation vote The Company’s shares are listed on the London Stock Exchange, and the Company is an investment trust in accordance with section 1158 of the Corporation Tax Act 2010. It is intended that the Company will continue to conduct its affairs in a manner which will enable it to retain this status. The Company is not a “close” company for taxation purposes. Whilst the Company’s Articles of Association require that a proposal for the continuation of the Company be put forward at the Company’s AGM in 2025, the Directors have no reason to believe that such a resolution will not be passed by shareholders. KPIs The Board reviews performance, using a number of key measures, to monitor and assess the Company’s success in achieving its objective. Further comment on performance can be found in the Chair’s Statement. Some of the KPIs used are: • NAV performance; • Share price performance; • Share price discount/premium management; and • Ongoing charges ratio. All of the above KPIs are alternative performance measures. Further details of these can be found on pages 111 and 112. The performance against these KPIs is reported on page 5. Investment objective The Company seeks to provide a high rate of total return through investment in equities and equity-related securities of companies trading in the Asia Pacific region (excluding Japan). The Company seeks to offer a degree of capital preservation through tactical use of derivative instruments. Investment policy The Company invests principally in a diversified portfolio of 40-70 companies operating primarily in Asia, including Australasia but excluding Japan. It is intended that the Company will have a bias to investing in small and mid cap companies. Investments may be made in companies listed on the stock markets of countries located in the region and/or listed elsewhere but controlled from within the region and/or with a material exposure to the region. The Company will focus on investing in companies with sound balance sheets, professional management and capital allocation policies that are aligned with the interests of minority shareholders. The use of derivatives to protect the capital value of the portfolio or for efficient portfolio management is fundamental to the strategy of the Company’s Portfolio Managers. Such derivatives may include listed futures, call options, long puts, OTC instruments and instruments to hedge currency exposure with Board approval. The Board will monitor the effectiveness of the underlying process and the use of derivatives. In order to obtain further exposure to equity indices or individual stocks, the Company may enter into contracts for difference where the underlying investments are not delivered and settlement is made in cash. In extreme circumstances, and subject to Board approval, the majority, or even all, of the Company’s assets could be held in cash or near cash instruments, with appropriate diversification of cash held on deposit. The Company may use gearing to enhance performance but net gearing will not exceed 30% of net asset value. The Company does not tie its portfolio construction to the constituents of any benchmark; instead, the size of stock positions is set on an absolute basis reflecting where the best potential risk adjusted returns are to be found. Investment restrictions and spread of investment risk The key restrictions imposed on the Manager are that: a) no more than 15% of the Company’s total net assets, at the date of acquisition, may be invested in any one single company or group of companies; b) subject to the approval of the Board, the Company may invest in collective vehicles. If it was to do so, however, no more than 10% of the Company’s total net assets, at the date of acquisition, may be invested in UK listed closed- ended investment companies unless such companies have a stated investment policy not to invest more than 15% of their gross assets in other UK listed closed-ended investment companies; (c) the Company will not invest more than 15% of its gross assets in UK listed closed-ended investment companies; (d) no more than 50% of the Company’s total net assets may be invested in equities listed on a single stock exchange; and (e) the Manager will not invest in unlisted equities other than with the approval of the Board or when entitlements are received or immediately prior to a listing. The investment portfolio on pages 34 to 36 demonstrates that, as at 31 December 2024, the Company held 59 investments spread over multiple countries and in a range of industry sectors. The two largest investments, TSMC and Tencent represented 11.7% and 5.0% respectively of total investments. The Board believes that the objective of spreading risk has been achieved. Section 3: Strategic Report 45 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Corporate and social responsibility Diversity policy The Board has adopted a diversity and inclusion policy. Appointments and succession plans will always be based on merit and objective criteria and, within this context, the Board seeks to promote diversity, inclusion and equal opportunity. The Board will encourage any recruitment agencies it engages to find a range of candidates that meet the objective criteria agreed for each appointment. Candidates for Board vacancies are selected based on their skills and experience, which are matched against the balance of skills and experience of the overall Board taking into account the criteria for the role being offered. The Board also considers the diversity and inclusion policies of its key service providers. Statement on Board diversity – gender and ethnic background The Board has made a commitment to consider diversity when reviewing the composition of the Board and notes the UK Listing Rule requirements on board diversity: • at least 40% of individuals on the board are women; • at least one senior board position is held by a woman; and • at least one individual on the board is from a minority ethnic background. The FCA defines senior board positions as Chair, Chief Executive Officer (CEO), Chief Financial Officer (CFO) or Senior Independent Director (SID). As an investment trust with no executive officers, the Company has no CEO or CFO. The Board has reflected the senior positions of the Chair of the Board, SID and the Chair of the Audit and Risk Committee in its diversity tables. The Board has chosen to align its diversity reporting reference date with the Company’s financial year end and proposes to maintain this alignment for future reporting periods. The following information has been provided by each Director through the completion of a questionnaire. As at 31 December 2024, the Company met two of the three criteria, including the target in relation to the number of women on the Board and for at least one senior board position to be held by a woman. The target for at least one individual on the Board to be from a minority ethnic background was not met. The Board is conscious that while the Directors are all independent and have a diverse range of views and experience, its small composition will make these targets challenging to fully implement. Recognising the benefits of a diverse Board, it is intended that improving diversity will continue to be a key factor when the Board makes its next appointment. There have been no changes since 31 December 2024 to the date of publication of the Annual Report and Financial Statements. The tables below set out the gender and ethnic diversity composition of the Board as at 31 December 2024 and at the date of this report. Gender identity Number of Board members % of the Board Number of senior positions 1 on the Board Men 2 50.0 1 Women 2 50.0 2 Not specified/prefer not to say – – – Ethnic background Number of Board members % of the Board Number of senior positions 1 on the Board White British or other White (including minority-white groups) 4 100.0 3 Mixed/Multiple Ethnic Groups – – – Asian/Asian British – – – Black/African/Caribbean/Black British – – – Other ethnic group, including Arab – – – Not specified/prefer not to say – – – 1 The Company considers the positions of Chair of the Board of Directors, SID and Chair of the Audit and Risk Committee to be senior positions of the Board. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 46 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Financial crime policy The Company continues to be committed to carrying out its business fairly, honestly and openly, and operates a financial crime policy, covering bribery and corruption, tax evasion, money laundering, terrorist financing and sanctions. The Company also seeks confirmation that its service providers’ policies are operating soundly. Greenhouse gas emissions and energy usage As the Company outsources its operations to third parties, it consumed less than 40,000 kWh during the year and so has no greenhouse gas emissions, energy consumption or energy efficiency action to report. Modern Slavery Act 2015 As an investment trust, the Company does not provide goods or services in the normal course of business and does not have customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking statement under the Modern Slavery Act 2015. Climate related disclosures On 30 June 2024, the Company’s Manager produced a product level disclosure consistent with the Task Force on Climate- Related Financial Disclosures for the period 1 January 2023 to 31 December 2023. This can be found here: https://api.schroders.com/document- store/TCFD-SG12092M-Schroder%20 Asian%20Total%20Return%20 Investment%20Company.pdf Responsible investment The Board delegates to the Manager the responsibility to engage with investee companies on social, environmental and governance issues and to promote best practice. The Board also expects the Manager to exercise the Company’s voting rights in consideration of these issues. In addition to the description of the Manager’s integration of ESG into the investment process and the details in this Strategic Report, a description of the Manager’s policy on these matters can be found on the Schroders website at www.schroders.com. The Board notes that the Manager believes that companies with good ESG management often perform better and deliver superior returns over time. Engaging with companies to understand how they approach ESG management is an integral part of the investment process. Schroders has committed to the UN Global Compact, amongst codes and standards, and information about the application of Schroders’ sustainability and responsible investment policies can be found at: https://www.schroders.com/en/sustainabili ty/corporate-responsibility/. The Board has received reporting from the Manager on the application of its policy. Promotion The Company promotes its shares to a broad range of investors including discretionary wealth managers, private investors, financial advisers and institutions which have the potential to be long-term supporters of the investment strategy. The Company seeks to achieve this through its Manager and corporate broker, which promote the shares of the Company through regular contact with both current and potential shareholders as well as their advisers. These activities consist of investor lunches, one-on-one meetings, regional road shows and attendance at conferences for professional investors. In addition, the Company’s shares are supported by the Manager’s wider marketing of investment companies targeted at all types of investors; this includes maintaining close relationships with adviser and execution- only platforms, advertising in the trade press, maintaining relationships with financial journalists and the provision of digital information on Schroders’ website. The Board also seeks active engagement with investors, and meetings with the Chair are offered to investors, when appropriate. Shareholders are encouraged to sign up to the Manager’s Investment Trusts update, http://www.schroders.com/trust- updates/ to receive information on the Company directly. Section 3: Strategic Report 47 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Stakeholder Engagement – Section 172 Report During the year, the Board discharged its duty under section 172 of the Companies Act 2006 to promote the success of the Company for the benefit of its members as a whole, having regard to the interests of all stakeholders. As an externally managed investment trust, the Company has no employees, operations or premises and a number of the Company’s functions are outsourced to third parties. The Board identified its key stakeholders as the Company’s shareholders, the Manager, Investment Manager, investee companies, the Company’s lender and other service providers. The table below explains how the Directors have engaged with all stakeholders during the year, outlines the key activities undertaken and the key decisions made by the Board. Shareholders Significance Continued shareholder support and engagement are critical to the continuing existence of the Company and the delivery of the long-term strategy of its business. Engagement AGM: The Company welcomes attendance and participation from shareholders at the AGM. Shareholders have the opportunity to meet the Directors and at least one of the Portfolio Managers and ask questions. The Board values the feedback it receives from shareholders which is incorporated into Board discussions. Publications: The annual and half year results presentations, as well as factsheets, are available on the Company’s web pages with their availability announced via the London Stock Exchange. Feedback and/or questions received from shareholders enable the Company to evolve its reporting which, in turn, helps to deliver transparent and understandable updates. Shareholder communication: The Manager communicates with shareholders on a regular basis. All investors are offered the opportunity to meet the Chair, SID, or other Board members, without using the Manager or Company Secretary as a conduit, by writing to the Company’s registered office. The Board also corresponds with shareholders by letter and email. The Board receives regular feedback from its broker on investor engagement and sentiment. Investor Relations updates: At every Board meeting, the Directors receive updates on share trading activity, share price performance and any shareholders’ feedback, as well as any publications or comments in the press. To gain a deeper understanding of the views of its shareholders and potential investors, the Manager also undertakes investor roadshows throughout the year. Continuation vote: The Company holds a continuation vote every three years to allow shareholders to decide on the long-term future of the Company. The last continuation vote took place at the AGM held in 2022 with 100% of votes cast in favour. The next continuation vote will be proposed to shareholders at the forthcoming AGM. 2024 application At the AGM in 2024, questions and feedback from shareholders were welcomed. The Board, along with Robin Parbrook, look forward to meeting and interacting with shareholders at the AGM in 2025. The Company’s web pages host the annual and half year reports. Via the Company’s web pages, shareholders can subscribe to the Schroders investment trusts newsletter to receive regular updates on the Company. The Chair of the Board met with a number of the Company’s major shareholders during the year. Their views were taken into consideration as part of the Board’s duty to ensure their interests were taken into account. The Manager engaged with a number of the Company’s shareholders and investors during the year and regular feedback was provided to the Board. A number of promotional activities were undertaken during the year including Portfolio Manager interviews, webinars and coverage in key publications. The Board also continues to work with Kepler on promoting the Company through its research notes which are published following the release of the Company’s annual results. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 48 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Manager Significance The Company’s principal relationship is with the Manager, Schroder Unit Trusts Limited. The Manager sub-delegates investment management to Schroder Investment Management Limited, the ‘Investment Manager’. The Manager also promotes the Company through its investment trust sales, marketing and PR teams. Engagement The Board maintains strong lines of communication with the Manager via its dedicated client director to ensure that the Manager is fully aware of the Board’s views and requirements. Representatives of the investment trust sales, marketing and PR teams regularly attend Board meetings. The Board, through the Management Engagement Committee formally reviews the performance of the Manager and contractual terms of engagement at least annually. 2024 application The Board received timely and accurate information from the Manager and the dedicated client director attended each Board meeting. Between scheduled Board meetings the client director ensured the Board was informed of Manager and shareholder views, discount levels and any other substantive matters. The Manager has continued to manage the Company’s assets in accordance with the mandate provided by shareholders, with oversight provided by the Board. Investment Manager Significance The key outsourced function is the provision of investment management services, delegated by the Manager to the Investment Manager. The Investment Manager’s performance is critical for the Company to deliver its investment strategy successfully and meet its investment objective. Holding the Company’s shares offers investors a liquid investment vehicle through which they can obtain exposure to the Company’s diversified portfolio of investments. Engagement Maintaining a close and constructive working relationship with the Investment Manager is crucial as the Board and the Investment Manager both aim to continue to achieve a high rate of total return in line with the investment objective. Representatives of the Investment Manager attend all Board and certain Committee meetings in order to update the Directors on the performance of the investments, the implementation of the investment strategy and objective. Important components in the Board’s collaboration with the Investment Manager are: • encouraging open discussion with the Investment Manager; • recognising that the interests of shareholders and the Investment Manager are, for the most part, well aligned, adopting a tone of constructive challenge, balanced when those interests are not fully congruent by robust negotiation of the Investment Manager’s terms of engagement; and • the Management Engagement Committee reviews the performance of the Investment Manager at least annually. 2024 application Representatives of the Investment Manager, including at least one of the Portfolio Managers, attended each Board meeting to provide an update on the investment portfolio along with presenting on macroeconomic issues. The portfolio activities undertaken by the Investment Manager and the impact of decisions affecting investment performance are set out in the Investment Manager’s Review on pages 14 to 40. The Board undertook its annual visit to the region and visited Hong Kong, Macau and the Philippines, as part of which, due diligence meetings were undertaken with key personnel from the Investment Manager. Section 3: Strategic Report 49 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Investee Companies Significance The Board is committed to responsible investing and monitors the activities of investee companies through its delegation to the Investment Manager. Engagement The Investment Manager conducts face- to-face and/or virtual meetings with the management teams of all investee companies to understand current trading and prospects for their businesses, and to ensure that their ESG investment principles and approach are understood. The Investment Manager has discretionary powers to exercise the Company’s voting rights on resolutions proposed by the investee companies within the Company’s portfolio. The Investment Manager reports to the Board on stewardship (including voting) issues and the Board has the opportunity to question the rationale for voting decisions made. Through regular engagement and the exercise of voting rights, the Investment Manager actively works with companies to improve corporate standards, transparency and accountability. 2024 application The Board received regular updates on engagement with investee companies from the Investment Manager at its Board meetings. In addition, the Board also visited Hong Kong, Macau and the Philippines during the year and met with investee companies and analysts to understand better the challenges and opportunities in the region. During the year, the Investment Manager engaged with many of its investee companies and voted at shareholder meetings (further details can be found on page 40). Lender Significance Availability of funding and liquidity are crucial to the Company’s ability to take advantage of investment opportunities as they arise. Engagement Considering how important the availability of funding is, the Company aims to demonstrate to lenders that it is a well managed business and, in particular, that the Board focuses regularly and carefully on the management of risk. The Manager conducts the relationship with the Company’s lender and reports to the Board at each Board meeting, as and when required, for renewals of terms or negotiation of loan covenants. The Manager provides a monthly statement of compliance with the loan covenants to the lender. 2024 application During the year, gearing was regularly considered. The Board entered into an amendment and restatement agreement in July 2024 with The Bank of Nova Scotia, London Branch in respect of the multicurrency revolving credit facility, as previously amended and restated in July 2023. The amendment and restatement of the multicurrency revolving credit facility was undertaken on a secured basis for a further year. Other service providers Significance In order to operate as an investment trust listed on the London Stock Exchange, the Company relies on a range of advisers and service providers. The Company ensures that the third parties to which the services have been outsourced complete their roles in line with contractual arrangements and expectation thereby supporting the Company. Engagement The Board maintains regular contact with its key external providers, both through the Board and Committee meetings, which service providers are periodically invited to attend, as well as outside of the regular meeting cycle. Their advice, as well as their operating requirements and views, are routinely taken into account. The need to foster business relationships with key service providers is central to Directors’ decision-making as the Board of an externally managed investment trust. 2024 application Under delegated authority from the Board, the Management Engagement Committee reviewed all material third party service providers. The Board considered the ongoing appointments of its service providers to be in the best interests of the Company and its shareholders as a whole and will continue to monitor their progress in the year ahead. During the year, members of the Board attended an internal controls briefing session, hosted by the Manager which assessed the internal controls of certain key service providers including the Manager, Investment Manager, the Company’s depositary and custodian, HSBC and the Company’s registrar, Equiniti. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 50 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Examples of stakeholder consideration during the year The Directors were particularly mindful of stakeholder considerations in reaching the following key decisions during the year ended 31 December 2024: • the declaration of a final dividend of 11.50p per ordinary share (2023: 11.00p) which, following approval by shareholders at the AGM on 24 April 2024 was paid on 10 May 2024; • the consideration of Board succession planning and the appointment of Marion Sears as a non-executive Director on 24 April 2024, to succeed Caroline Hitch who stepped down from the Board following the 2024 AGM, and in December 2024 as SID; • the implementation of the Board’s discount control policy which aims to achieve a discount to NAV of no more than 5% in normal market conditions; • the Board entered into an amendment and restatement agreement in July 2024 in respect of its multicurrency revolving credit facility. Given the specific requirements of the Company and various factors, including the interest rate environment, the Board, when considering the amendment and restatement of the facility, concluded that the one year revolving credit facility remained the most appropriate arrangement and The Bank of Nova Scotia, London Branch the most appropriate provider of the facility, on a secured basis; • maintaining the Company’s disciplined gearing framework, based on a number of valuation indicators to increase market exposure, which should, over the longer term, enhance returns to shareholders. The Company used derivative hedging instruments, including the introduction of CFDs as a cost effective means of borrowing, in addition to borrowing under the revolving credit facility; • resolving that the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best interests of shareholders as a whole; and • together with the Portfolio Managers, the Board undertook its annual visit to the region and visited Hong Kong, Macau and the Philippines to undertake due diligence meetings with key personnel from the Investment Manager, strategists and investee companies. Following the year end, the Board declared a final dividend of 11.50p per ordinary share which, if approved by shareholders at the AGM on 24 April 2025 will be paid on 9 May 2025. Section 3: Strategic Report 51 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Risk Report This system assists the Board in determining the nature and extent of the risks it is willing to take in achieving the Company’s strategic objectives. Risk assessment and internal controls review by the Board Risk assessment includes consideration of the scope and quality of the systems of internal control operating within key service providers, and ensures regular communication of the results of monitoring by such providers to the Audit and Risk Committee, including the incidence of significant control failings or weaknesses that have been identified at any time and the extent to which they have resulted in unforeseen outcomes or contingencies that may have a material impact on the Company’s performance or condition. The internal control environment of the Manager, Investment Manager, the depositary, custodian, administrator and the registrar are tested annually by independent external auditors. The full reports are provided to the Audit and Risk Committee alongside abridged summaries. Although the Board believes that it has a robust framework of internal controls in place, this can provide only reasonable, and not absolute, assurance against material financial misstatement or loss and is designed to manage, not eliminate, risk. Both the principal and emerging risks and the monitoring system are also subject to robust review at least annually. The last assessment took place in March 2025. During the year, the Board discussed and monitored a number of risks which could potentially impact the Company’s ability to meet its strategic objectives. The Board receives updates from the Manager, Investment Manager, Company Secretary and other service providers on emerging risks that could affect the Company. The Board was mindful during the year of the global environment including the results of several significant elections in 2024, notably in the US; the risks posed by volatile markets; and geopolitical uncertainty which could affect the asset class. However, these were not considered to be factors which explicitly impacted the Company’s performance. These risks are seen as exacerbating existing risks and have been incorporated in the macro factors, including the geopolitical/ economic environment and climate change risk section in the table below. The Board considered in detail whether there were any material emerging risks and has continued to include the development of AI as an emerging risk in the table below. No significant control failings or weaknesses were identified from the Audit and Risk Committee’s ongoing risk assessment which has been in place throughout the financial year and up to the date of this report. The Board is satisfied that it has undertaken a detailed review of the risks facing the Company. A full analysis of the financial risks facing the Company is set out in note 22 to the financial statements on pages 97 to 102. Actions taken by the Board and, where appropriate, its Committees, to manage and mitigate the Company’s principal risks and uncertainties are set out in the table below. The “Change” column on the right highlights, at a glance, the Board’s assessment of any increases or decreases in risk during the year after mitigation and management. The arrows show the risks as increased, decreased or unchanged. The Board, through its delegation to the Audit and Risk Committee, is responsible for the Company’s system of risk management and internal control and for reviewing its effectiveness. The Board has adopted a detailed matrix of principal, and, where applicable, emerging, risks affecting the Company’s business as an investment trust and has established associated policies and processes designed to manage and, where possible, mitigate those risks, which are monitored by the Audit and Risk Committee on an ongoing basis. Risk Mitigation and management Change Macro factors, including the geopolitical/economic environment and climate change Geopolitical instability, including: • the Russian/Ukraine and Middle East conflicts and China and Taiwan tensions; • changes to the global economic environment; and • rising tensions following the re-election of Trump and the consequences of new policies which might materially affect the ability of the Company to achieve its investment objective. The impact of climate change on investee companies may also materially affect investment outcomes. Geopolitical risks are an input into the investment process and are monitored at each Board meeting where there is also an opportunity to discuss key market risk factors with the Portfolio Managers. Further information on geopolitical risk is included in the Outlook section of the Chair’s Statement. The Board visited Hong Kong, Macau and the Philippines during the year and met with investee companies and analysts to understand better the challenges and opportunities in the region. The Manager’s investment process includes an assessment of climate related risks in the evaluation of investee companies. The continued increased risk reflects the changing global environment and the risks posed by volatile markets and geopolitical uncertainty. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 52 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Risk Mitigation and management Change Investment objective and promotion The Company’s investment objective may become out of line with the requirements of investors and lead to the Company becoming unattractive to investors, decreasing demand for its shares and a widening discount of the share price to the underlying NAV per share. The Company is not promoted in a way which generates investor demand. The appropriateness of the Company’s investment mandate and the long-term investment strategy is regularly reviewed by the Board and the success of the Company in meeting its stated objectives is monitored. The Board holds a strategy meeting each year to consider the investment objective and policy and the Company’s longer term investment strategy. The share price relative to the NAV per share is kept under review as a key performance indicator and is considered against the Company’s peers on a regular basis. The use of the buyback authority is also reviewed regularly. The Investment Manager and corporate broker monitor market feedback and the Board consider this at each quarterly Board meeting. Proactive engagement with shareholders takes place via the AGM, feedback from shareholder presentations, and a formal programme of individual meetings are offered to major shareholders on an annual basis. The Manager provides a dedicated, experienced investment trust sales, marketing and PR team. The marketing programme continued to provide promotional opportunities for the Company throughout the year and included advertising, video and podcast content, sponsored research provided by Kepler, and ‘roadshow’ events, visiting investors across the UK. The performance of the Manager is evaluated, at least annually by the Management Engagement Committee. Financial The Company is exposed to a range of financial risks including market, liquidity, interest rate, credit and fair values of financial assets and financial liabilities. The financial risks associated with the economic environment that might impact the Company are mitigated, to some extent, by the Investment Manager. Note 22 to the financial statements provides further details of the steps taken to mitigate those risks associated with the portfolio. Investment strategy and performance Poor stock selection or investing outside of the investment restrictions and guidelines set by the Board could result in poor performance. The Investment Manager is experienced and has a long track record in successfully investing in Asian equity holdings. The Board oversees the implementation of the investment strategy, compliance with investment restrictions and guidelines and keeps investment performance under close review. One, or more, of the Portfolio Managers attend all Board meetings and review the portfolio with the Board using performance data and KPIs. A detailed formal appraisal of the performance of the Manager and Investment Manager is carried out annually by the Management Engagement Committee. Gearing/liquidity The Company adopts an inappropriate gearing or derivative strategy. The Company’s investments are insufficiently liquid resulting in breach of loan covenants in the event of a severe fall in valuations. The Board sets gearing limits of 30% of NAV and the Investment Manager reports to the Board on gearing levels and derivative activity at every Board meeting. Liquidity stress testing is carried out on a regular basis. Section 3: Strategic Report 53 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Risk Mitigation and management Change ESG considerations Failure by the Company to disclose in an appropriate manner how the investment process integrates consideration of ESG factors could lead to the Company’s shares being less attractive to investors as well as potential valuation issues in the underlying investee companies. The consideration of material climate change risks, ESG factors and the Sustainability Disclosure Requirements is integrated into the investment process and reported at Board meetings. The Investment Manager considers and evaluates the approach investee companies take to recognise and mitigate material climate change risks and also considers the portfolio’s investee companies carbon footprint versus the Reference Index. The Manager has implemented a comprehensive ESG policy outlined in detail on pages 39 and 40. Key person The retirement or departure of one or more of the Investment Manager’s key investment professionals could impact the Company’s performance. The Portfolio Managers have a contractual notice period and the Investment Manager has a compensation and incentive scheme to recruit and retain key staff including the Portfolio Managers, and has developed a suitable succession planning programme, which seeks to ease the impact that the loss of a key investment professional may have on the Company’s performance. The Investment Manager would notify any change in its key professionals to the Board at the earliest possible opportunity and the Board would be made aware of all efforts made to fill a vacancy. The Portfolio Managers are supported by a wider team of experienced portfolio managers and research analysts, mitigating the impact of the loss of any key professionals by the Investment Manager on the Company’s performance. Compliance with regulations Failure to comply with relevant laws and regulations could result in fines, loss of reputation and potentially loss of investment trust status. The Board and Manager monitor changes in government policy and legislation which may have an impact on the Company, and the Audit and Risk Committee monitors compliance with regulations by reviewing internal control reports from the Manager. From time to time the Board employs external advisers to advise on specific matters. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 54 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Risk Mitigation and management Change Oversight of service providers and control environment The Company has no employees and has delegated certain functions to a number of service providers. Failure of controls, including as a result of fraud, and poor performance of any service provider, could lead to disruption, reputational damage or loss. The Board receives reports from the Manager on its internal controls and risk management throughout the year, including those relating to cybersecurity, and receives assurances from all its other significant service providers on at least an annual basis. The Management Engagement Committee reviews the performance of key service providers at least annually. The Manager also monitors closely the control environments and quality of services provided by third parties, including those of the depositary, through service level agreements and regular meetings. Directors attend an annual internal controls briefing session, hosted by the Manager in respect of the internal controls of the Company’s key service providers including the Company’s depositary and custodian, HSBC, the Company’s registrar, Equiniti, and Schroders Group Internal Audit team. Experienced service providers are appointed by the Company subject to due diligence processes and clearly documented contractual arrangements which include agreed service level specifications and notice periods for terminations. Further details of the internal controls which are in place are set out in the Audit and Risk Committee’s Report on pages 66 to 68. Information technology resilience and security Cyber risk such as fraud, sabotage or crime perpetrated against the Company or any of its third party service providers could result in data theft, service disruption and reputational damage. Cybersecurity is closely monitored by the Audit and Risk Committee as part of the review of the internal controls of its service providers. The Manager’s IT security team present to the Directors on cybersecurity controls as part of the annual internal controls briefing session hosted by Schroders. Emerging risk AI The development of AI presents both potential risks and opportunities to businesses in almost every sector. The extent of the risk presented by AI is hard to assess at this point but the Board considers that it is an emerging risk and together with the Manager and Investment Manager will monitor developments in this area. Section 3: Strategic Report 55 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Conclusion Viability statement The Directors have assessed the viability of the Company over a five year period, ending 31 December 2029 taking into account the Company’s position at 31 December 2024 and the potential impact of the principal and emerging risks it faces for the review period. This is further detailed in the Chair’s Statement, Investment Manager’s Review and the Risk Report sections of this report. The Directors have assessed the Company’s operational resilience and they are satisfied that the Company’s outsourced service providers will continue to operate effectively. The Board believes that a period of five years reflects a suitable time horizon for strategic planning, taking into account the investment policy, liquidity of investments, potential impact of economic cycles, nature of operating costs, dividends and availability of funding. In preparing these financial statements, the Directors have considered the impact of the Company’s emerging risks as set out on page 55, and have concluded that there was no further impact to be taken into account as investments are valued based on market pricing. The Directors considered the beneficial tax treatment the Company is eligible for as an investment trust. If changes to these taxation arrangements were to be made, it would affect the viability of the Company to act as an effective investment vehicle. The Directors reviewed a stress test in which the Company’s NAV dropped by 50% and noted that, based on the assumptions in the test, the Company would continue to be viable over a five year period. Whilst the Company’s Articles of Association require that a proposal for the continuation of the Company be put forward at the Company’s AGM in 2025, the Directors have no reason to believe that such a resolution will not be passed by shareholders. The Directors have also considered the Company’s income and expenditure projections and the fact that the Company’s investments comprise readily realisable securities which can be sold to meet funding requirements if necessary. Based on the Company’s processes for monitoring operating costs, the Board’s view that the Manager has the appropriate depth and quality of resource to achieve superior returns in the longer term, the portfolio risk profile, limits imposed on gearing, counterparty exposure, liquidity risk and financial controls, the Directors have concluded that there is a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the five year period of their assessment. Going concern The Directors have assessed the principal and emerging risks and the matters referred to in the viability statement, including the continuation vote at the AGM in April 2025. The Directors noted the Company’s portfolio is comprised of liquid stocks, and the Company’s operating expenses are predominantly variable costs, which would fall pro-rata in the event of a severe market downturn. Based on the work the Directors have performed, they have not identified any material events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for the period assessed by the Directors, being the period to 31 March 2026 which is at least 12 months from the date the financial statements were authorised for issue. By order of the Board Schroder Investment Management Limited Company Secretary 18 March 2025 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report 56 Job No: 53868 Proof Event: 35 Black Line Level: 10 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 57 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 3: Strategic Report Bridge, Bucheon, South Korea Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 58 Imperial Palace Watch Tower, Beijing, China 58 Section 4: Governance Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Section 4: Governance Board of Directors 60 Directors’ Report 62 Audit and Risk Committee Report 66 Management Engagement Committee Report 69 Nomination Committee Report 70 Directors’ Remuneration Report 72 Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements 75 59 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 59 Section 4: Governance Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Independent non-executive DirectorIndependent non-executive Chair Andrew CaineySarah MacAulay Board of Directors Length of service: six years – appointed a Director in March 2019. Experience: Andrew is an experienced business consultant, policy adviser, speaker and writer. He is a Senior Associate Fellow of the Royal United Services Institute, a Director of the UK National Committee on China, a Senior Advisor to Boston Consulting Group, and a Senior Advisor of Lumen Capital Investors. He previously held roles with the Boston Consulting Group, Booz & Company and Tony Blair Associates. During the course of his career, Andrew spent over 15 years in Asia, including China, Korea and Singapore. Contribution to the Board and its Committees: Andrew is an experienced business consultant. His knowledge of Asia and close interest in the area contributes to the Company’s long-term sustainable success. Committee membership: Audit and Risk, Management Engagement and Nomination Committees. Remuneration for the year ended 31 December 2024: £37,000 per annum. Number of shares held: 26,753 Length of service: seven years – appointed a Director in March 2018 and as Chair in May 2020. Experience: Sarah has over 20 years of Asian fund management experience based in both London and Hong Kong, managing unit trusts and institutional assets. She was formerly a Director of Baring Asset Management (Asia) Ltd in Hong Kong, Asian Investment Manager at Kleinwort Benson Investment Management and Eagle Star in London. She is currently Senior Independent Director on the Board of Fidelity Japan Trust PLC, a non-executive Director of Baillie Gifford China Growth Trust plc and a non-executive Director of Bellevue Healthcare Trust plc. Until March 2024, Sarah was Chair of JPMorgan Multi- Asset Growth & Income plc and Senior Independent Director of abrdn China Investment Company Limited. Contribution to the Board and its Committees: Sarah’s extensive experience in Asian fund management and as a non- executive Director on other investment trust boards enables her to bring valuable insight to the Board’s deliberations, facilitate successfully Board discussions and prioritise strategic decisions. Committee membership: Audit and Risk, Management Engagement (Chair) and Nomination (Chair) Committees. Remuneration for the year ended 31 December 2024: £49,000 per annum. Number of shares held: 72,475 All Directors are non-executive and independent of the Manager. All Directors are members of the Audit and Risk Committee, the Management Engagement Committee and the Nomination Committee. Shareholdings are as at 18 March 2025, full details of Directors’ shareholdings are set out in the Directors’ Remuneration Report on page 74. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 4: Governance 60 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Senior Independent non-executive Director Independent non-executive Director and Chair of the Audit and Risk Committee Marion Sears Jasper Judd Length of service: 11 months – appointed a Director in April 2024 and Senior Independent Director in December 2024. Experience: Marion had a career in the City as an analyst and subsequently in international M&A. Since then, she has served on a number of boards as a non- executive Director, including corporates and investment trusts. She has acted as a SID and chaired Remuneration, Nomination and Sustainability committees across many sectors, giving her long- standing PLC experience and stakeholder understanding. Marion is currently a non-executive Director at Dunelm Group plc and, with effect from 1 April 2025, SID and Chair of the Remuneration Committee of Shepherd Neame Limited. She was previously a non-executive Director of Keywords Studios plc and WH Smith PLC. Contribution to the Board and its Committees: Marion’s long standing experience in the City is valuable to the Board. Her experience as a non-executive director on corporate boards means she is well placed to help bring strong business insight and market experience to the Board, contributing to driving the business forward. Committee membership: Audit and Risk, Management Engagement and Nomination Committees. Remuneration for the year ended 31 December 2024: £37,000 per annum. Number of shares held: 10,000 Length of service: two years – appointed a Director in February 2023 and Chair of the Audit and Risk Committee in April 2023. Experience: Jasper held a number of senior finance and strategy roles, including Global Head of Strategy, at Brambles Limited, a listed Australian multi- national. He is an Associate of the Institute of Chartered Accountants in England & Wales. Jasper is also the Audit and Risk Committee Chairman of Brown Advisory US Smaller Companies PLC and Audit Committee Chairman of Dunedin Income Growth Investment Trust PLC. He has previously been a non-executive Director of JPMorgan Indian Investment Trust plc. Contribution to the Board and its Committees: Jasper’s extensive financial and strategic experience and experience as a non-executive Director on other boards means he is able to bring significant insight to the Board’s decision making. Committee membership: Audit and Risk (Chair), Management Engagement and Nomination Committees. Remuneration for the year ended 31 December 2024: £43,000 per annum. Number of shares held: 9,280 Shareholdings are as at 18 March 2025, full details of Directors’ shareholdings are set out in the Directors’ Remuneration Report on page 74. Section 4: Governance 61 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Directors’ Report The Directors submit their report and the audited financial statements of the Company for the year ended 31 December 2024. Directors and officers Chair The Chair is an independent non-executive Director who is responsible for leadership of the Board and ensuring its effectiveness in all aspects of its role. The Chair’s biography is detailed on page 60. She has no conflicting relationships. Senior Independent Director (SID) The SID is responsible for the evaluation of the Chair, and also serves as a secondary point of contact for shareholders. Company Secretary Schroder Investment Management Limited (“SIM”) provides company secretarial support to the Board and is responsible for assisting the Chair with Board meetings and advising the Board with respect to governance. The Company Secretary also manages the relationship with the Company’s service providers, except for the Manager. Shareholders wishing to lodge questions in advance of the AGM are invited to do so by writing to the Company Secretary at the address given on the outside back cover or by email to: [email protected]. Role and operation of the Board The Board (of four Directors, listed on pages 60 and 61) is the Company’s governing body; it sets the Company’s strategy and is collectively responsible to shareholders for its long-term success. The Board is responsible for appointing and subsequently monitoring the activities of the Manager and other service providers to ensure that the investment objective of the Company continues to be met. The Board also ensures that the Manager adheres to the investment restrictions set by the Board and acts within the parameters set by it in respect of any gearing. The Strategic Report on pages 44 to 56 sets out further detail of how the Board reviews the Company’s strategy, risk management and internal controls. These sections form part of this Directors’ Report. A formal schedule of matters specifically reserved for decision by the Board has been defined and a procedure adopted for Directors, in the furtherance of their duties, to take independent professional advice at the expense of the Company. The Chair ensures that all Directors receive relevant management, regulatory and financial information in a timely manner and that they are provided, on a regular basis, with key information on the Company’s policies, regulatory requirements and internal controls. Four Board meetings are usually scheduled each year to deal with matters including: the setting and monitoring of investment strategy; approval of borrowings and/or cash positions; review of investment performance, the level of discount of the Company’s shares to NAV per share, promotion of the Company and services provided by third parties. Additional meetings of the Board are arranged as required. At each scheduled Board meeting, the Directors receive reports from the Manager, Investment Manager, other key service providers and the Company’s advisers. Ad hoc reports and information are supplied to the Board as required. The Board has approved a policy on Directors’ conflicts of interest. Under this policy, Directors are required to disclose all actual and potential conflicts of interest to the Board as they arise for consideration and approval. The Board may impose restrictions or refuse to authorise such conflicts if deemed appropriate. No Director has any connections with the Manager, shared directorships with other Directors or material interests in any contract which is significant to the Company’s business. Board of Directors (left to right): Marion Sears, Andrew Cainey, Sarah MacAulay and Jasper Judd. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 4: Governance 62 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Key service providers The Board has adopted an outsourced business model and has appointed the following key service providers: Manager The Company is an Alternative Investment Fund as defined by the Alternative Investment Fund Managers Directive and has appointed Schroder Unit Trusts Limited (“SUTL”) as the Manager in accordance with the terms of an Alternative Investment Fund Manager (AIFM) agreement. The AIFM agreement, which is governed by the laws of England and Wales, can be terminated by either party on six months’ notice or on immediate notice in the event of certain breaches or the insolvency of either party. As at the date of this report, no such notice had been given by either party. SUTL is authorised and regulated by the FCA and provides portfolio management, risk management, accounting and company secretarial services to the Company under the AIFM agreement. The Manager also provides general marketing support for the Company and manages relationships with key investors, in conjunction with the Chair, other Board members or the corporate broker as appropriate. The Manager has delegated investment management, administration, accounting and company secretarial services to another wholly owned subsidiary of Schroders plc, (“SIM”), which delegates certain accounting and administration services to HSBC Securities Services (UK) Limited, as administrator. The Manager has in place appropriate professional indemnity cover. The Schroders Group manages £778.7 billion (as at 31 December 2024) on behalf of institutional and retail investors, financial institutions and high net worth clients from around the world, invested in a broad range of asset classes across equities, fixed income, multi-asset and alternatives. Fees payable to the Manager Under the terms of the AIFM agreement, the Manager is entitled to a fee at a rate of 0.65% of gross assets less cash and cash equivalents. A performance fee is payable amounting to 10% of any outperformance of the NAV over an annual hurdle of 7%, provided that the closing NAV per share exceeds the “high water mark” NAV at the date the last performance fee was paid. The sum of the base fee and any performance fee payable is capped at 1.25% of the closing net assets. In addition, the Manager may only be paid a performance fee when the Company’s NAV total return is equal or greater to the total return of the Reference Index. If the Company invests in funds managed or advised by the Manager, any fees earned by the Manager from those investments are rebated to the Company. The management fee payable in respect of the year ended 31 December 2024 amounted to £3,176,000 (2023: £3,051,000). A performance fee of £2,767,000 is payable for the year (2023: £nil). The Manager is also entitled to a fee for providing administrative, accounting and company secretarial services to the Company. For these services in the year ended 31 December 2024, the Manager received a fee of £75,000 (2023: £75,000). Details of all amounts payable to the Manager are set out in notes 4 and 19 of the financial statements. The Board has reviewed the performance of the Manager during the year under review and continues to consider that it has the appropriate depth and quality of resource to deliver superior returns over the longer term. The Manager is supported by significant depth of knowledge and experience in Asia, with regional resources and local analysts. Thus, the Board considers that the Manager’s appointment under the terms of the AIFM agreement is in the best interests of shareholders as a whole. Depositary HSBC Bank plc, which is authorised by the Prudential Regulation Authority (PRA) and regulated by the FCA and the PRA, carries out certain duties of a depositary specified in the AIFM Directive including, in relation to the Company, as follows: • safekeeping of the assets of the Company which are entrusted to it; • cash monitoring and verifying the Company’s cash flows; and • oversight of the Company and the Manager. The Company, the Manager and the depositary may terminate the depositary agreement at any time by giving 90 days’ notice in writing. The depositary may only be removed from office when a new depositary is appointed by the Company. Registrar Equiniti Limited has been appointed as the Company’s registrar. Equiniti’s services to the Company include share register maintenance (including the issuance, transfer and cancellation of shares as necessary), acting as agent for the payment of any dividends, management of company meetings (including the registering of proxy votes and scrutineer services as necessary), handling shareholder queries and correspondence and processing corporate actions. Compliance with the AIC Code of Corporate Governance The Board of the Company has considered the principles and provisions of the AIC Code of Corporate Governance (the “AIC Code”). The AIC Code addresses the Principles and Provisions set out in the UK Corporate Governance Code (the “UK Code”), as well as setting out additional Provisions on issues that are of specific relevance to the Company. The Board considers that reporting against the Principles and Provisions of the AIC Code, provides more relevant information to shareholders. The AIC Code is available on the AIC website at www.theaic.co.uk. It includes an explanation of how the AIC Code adopts the Principles and Provisions set out in the UK Code to make them relevant for investment companies. The UK Code is available from the Financial Reporting Council’s website at www.frc.org.uk. The FCA requires all UK listed companies to disclose how they have complied with the provisions of the UK Code. This statement, together with the Statement of Directors’ Responsibilities, viability statement and going concern statement set out on pages 75 and 56 respectively, indicates how the Company has complied with the principles of good governance of the AIC Code and its requirements on internal control. The Strategic Report, Directors’ Report and Audit and Risk Committee Report provide further details on the Company’s internal controls (including risk management), governance and diversity policy. The Board is satisfied that the Company’s current governance framework is compliant with the AIC Code. The Nomination Committee reviews Directors’ remuneration and as such there is no separate remuneration committee. Section 4: Governance 63 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Revenue, final dividend and dividend policy The net revenue return for the year, after finance costs and taxation, was £9,164,000 (2023: £10,497,000), equivalent to a revenue return per ordinary share of 9.61 pence (2023: 10.26 pence). The Board has recommended the payment of a final dividend for the year ended 31 December 2024 of 11.50 pence per share (2023: 11.50 pence) payable on 9 May 2025 to shareholders on the register on 11 April 2025, subject to approval by shareholders at the AGM on 24 April 2025. The Board’s policy is to pay out substantially all the Company’s revenue. Committees In order to assist the Board in fulfilling its governance responsibilities, it has delegated certain functions to Committees. The roles and responsibilities of these Committees, together with details of work undertaken during the year under review, is outlined over the next few pages. The reports of the Audit and Risk Committee, Management Engagement Committee and Nomination Committee are incorporated into and form part of the Directors’ Report. Each committee’s effectiveness was assessed, and judged to be satisfactory, as part of the Board’s annual review of the Board and its Committees. Other required Directors’ Report disclosures under laws, regulations, and the AIC Code Status The Company carries on business as an investment trust. Its shares are listed and admitted to trading on the London Stock Exchange. It has been approved by HM Revenue & Customs as an investment trust in accordance with Section 1158 of the Corporation Tax Act 2010, by way of a one-off application and it is intended that the Company will continue to conduct its affairs in a manner which will enable it to retain this status. The Company is domiciled in the UK and is an investment company within the meaning of Section 833 of the Companies Act 2006. The Company is not a “close” company for taxation purposes. The Articles of Association contain provisions requiring the Directors to put a proposal for the continuation of the Company to shareholders at the AGM in 2025 and thereafter at three yearly intervals. Share capital and substantial share interests As at the date of this report, the Company had 109,114,651 ordinary shares of 5 pence in issue, of which 15,590,197 ordinary shares were held in treasury. During the year under review 3,709,666 ordinary shares with a nominal value of 5 pence per share, which represented 3.8% of the Company’s ordinary shares in issue at the start of the year, were bought back. All ordinary shares bought back were placed in treasury. All shares in issue rank equally with respect to voting, dividends and any distribution on winding up. The Company has received details of changes to the Company’s share capital during the year under review which are given in note 14 to the financial statements on page 94. As at 31 December 2024, the Company has received notifications in accordance with the FCA’s Disclosure Guidance and Transparency Rule 5.1.2R of the below interests in 3% or more of the voting rights attaching to the Company’s issued share capital. As at 31 December 2024 Number of shares % of total voting rights Rathbones Investment Management Limited 11,269,824 12.00 Evelyn Partners 1 10,264,905 10.06 Quilter PLC 9,994,906 9.99 Charles Stanley Group plc 5,857,502 5.85 F&C Asset Management plc 3,547,705 4.28 1 Notification made in the previous name of Tilney Smith & Williamson. Following the year end, Rathbones Investment Management Limited notified the Company that the number of shares held was 12,190,504 equating to 13.03% of total voting rights. No further changes had been advised as at the date of this report. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 4: Governance 64 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Directors’ attendance at meetings The number of scheduled meetings of the Board and its Committees held during the financial year and the attendance of individual Directors is shown below. Whenever possible all Directors attend the AGM. The Board also met for a small number of additional, ad hoc, meetings during the year to address time sensitive matters that arose between scheduled quarterly meetings. These meetings were generally held at short notice and attended by those Directors available at the time. Director Board Audit and Risk Committee Management Engagement Committee Nomination Committee Sarah MacAulay 4/4 3/3 1/1 1/1 Andrew Cainey 4/4 3/3 1/1 1/1 Jasper Judd 4/4 3/3 1/1 1/1 Marion Sears 1 3/3 2/2 1/1 1/1 1 Marion Sears was appointed as a Director on 24 April 2024. Provision of information to the auditor The Directors at the date of approval of this report confirm that, so far as each of them is aware, there is no relevant audit information of which the Company’s auditor is unaware; and each Director has taken all the steps that he or she ought to have taken as a Director in order to make himself or herself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information. Directors’ and officers’ liability insurance and indemnities Directors’ and officers’ liability insurance cover was in place for the Directors throughout the year. The Company’s Articles of Association provide, subject to the provisions of UK legislation, an indemnity for Directors in respect of costs which they may incur relating to the defence of any proceedings brought against them arising out of their positions as Directors, in which they are acquitted or judgement is given in their favour by the Court. This is a qualifying third party indemnity policy and was in place throughout the year under review for each Director and to the date of this report. By order of the Board Schroder Investment Management Limited Company Secretary 18 March 2025 Section 4: Governance 65 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 All Directors are members of the Committee. Jasper Judd is the Chair of the Committee. The Board has satisfied itself that at least one of the Committee’s members has recent and relevant financial experience and that the Committee as a whole has competence relevant to the sector in which the Company operates. The AIC Code permits the Chair to be a member of the Audit Committee of an investment trust. Recognising Sarah MacAulay’s significant experience, it is considered appropriate for the Chair of the Board to be a member of the Audit and Risk Committee. The Committee’s terms of reference are available on the Company’s web pages: www.schroders.co.uk/satric. Ongoing risk review Review of external auditors Half year report Audit planning Audit Annual report Audit and Risk Committee Report Risks and internal controls Principal and emerging risks and uncertainties To establish a process for identifying, assessing, managing and monitoring the principal and emerging risks of the Company and to explain how these are managed or mitigated. Internal controls To monitor the adequacy and effectiveness of the risk management and internal control systems of the Company’s third party services providers, including the Manager, as illustrated in the diagram below. Financial reports and valuation Financial statements To monitor the integrity of the financial statements of the Company and any formal announcements relating to the Company’s financial performance and valuation. To review the annual and half year reports and to advise the Board on whether the Annual Report is fair, balanced and understandable. Going concern and viability To review the position and make recommendations to the Board in relation to whether it considers it appropriate to adopt the going concern basis of accounting in preparing its annual and half year financial statements. To review the disclosures made by the Company in the viability statement. Audit Audit results To discuss any matters arising from the audit and recommendations made by the auditor. Auditor appointment, independence and performance To make recommendations to the Board, in relation to the appointment, re-appointment, effectiveness, non-audit services and removal of the auditor. To review their independence and to approve their remuneration and terms of engagement. To review the audit plan and engagement letter. The duties, responsibilities and work carried out by the Audit and Risk Committee during the year which included monitoring the integrity of the Company’s financial reporting and internal controls, are set out in further detail below: Approach The Committee’s key roles and responsibilities are set out in the table below. • Review of control processes • Periodic testing of control processes Manager’s Internal audit Audit and Risk Committee HSBC Bank plc Depositary HSBC Bank plc Custodian Schroder Unit Trusts Limited AIFM Schroder Investment Management Limited Investment manager HSBC Securities Services (UK) Limited Accounting and Administration services Periodic Independently audited assurance reports on controls Ad hoc escalations and regular issues reporting Periodically reports the results of its testing activities Periodically reports its supervisory activities and provides ad hoc escalations Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 4: Governance 66 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Risk management and internal controls Risk management and internal controls Reviewed the internal controls operating within the Manager, depositary, custodian, administrator and registrar, including independently audited internal controls reports. In July 2024, members of the Committee met with the key service providers at an annual review meeting in addition to reviewing the quarterly reports covering the operations of the service providers. These reports and reviews collectively covered the effectiveness of the Company’s material controls, including financial, operational, reporting and compliance controls. Following these reviews, the Committee considered that a sufficient level of internal assurance was in place and the work of the external audit was not adversely impacted by the absence of an internal audit function. It was therefore recommended that an internal audit function was not required at present. Following a review of the Company’s risk management and internal controls framework, the Committee noted that these remained effective as at the end of the financial year ended 31 December 2024. Compliance with the investment trust qualifying rules in S1158 of the Corporation Tax Act 2010 Consideration of the Manager’s report confirming compliance. Principal risks Reviewing the principal and emerging risks faced by the Company and the systems, processes and oversight in place to identify, manage and mitigate the risks. Financial reports and valuation Recognition of investment income Considered dividends received against forecast and the allocation of special dividends to income or capital. Calculation of the investment management and performance fees Consideration of methodology used to calculate the fees, matched against the criteria set out in the AIFM agreement. Financial reporting Considered the accounting policies and judgements used in preparing the half year and annual financial statements. Overall accuracy of the Annual Report and Financial Statements Consideration of the draft Annual Report and Financial Statements and the letter of representation from the Manager in support of the letter of representation to the auditor. Valuation and existence of holdings Quarterly review of portfolio holdings, including the portfolio valuation, to ensure that assets are correctly valued, in accordance with the accounting policies set out in note 1(b) to the financial statements and ownership of assets is secured. Periodic review of assurance reports relating to the existence of controls to ensure valuations are appropriate and ownership of assets is appropriately verified through custodian reconciliations. Fair, balanced and understandable Reviewed the Annual Report and Financial Statements to ensure that it was fair, balanced and understandable. Going concern and viability Reviewing the impact of risks on going concern and longer-term viability. Audit Effectiveness of the independent audit process and auditor performance Evaluated the effectiveness of the independent audit firm and process prior to making a recommendation that the auditor should be re-appointed at the forthcoming AGM. Evaluated the auditor’s performance against agreed criteria including: qualification; knowledge, expertise and resources; independence policies; effectiveness of audit planning; adherence to auditing standards; and overall competence, alongside feedback from the Manager on the audit process. The Committee noted the auditor had demonstrated its professional scepticism during the audit. Auditor independence Ernst & Young LLP has provided audit services to the Company for six years, since appointment by the Company on 6 September 2019 to audit the financial statements for the year ended 31 December 2019 and subsequent financial periods. The auditor is required to rotate the senior statutory auditor every five years. There are no contractual obligations restricting the choice of external auditor. Having completed five years acting as the Company’s senior statutory auditor, following the completion of the audit in respect of the year ended 31 December 2023, Caroline Mercer was succeeded by James Beszant as the senior statutory auditor. This is therefore the first year that the senior statutory auditor, James Beszant has conducted the audit of the Company’s financial statements. The Company is compliant with the provisions of the September 2014 Competition and Markets Authority Order, which requires that FTSE 350 companies put their audit out to tender at least every ten years. Meetings with the auditor Met the auditor without representatives of the Manager present. Representatives of the auditor attended the Committee meeting at which the draft Annual Report and Financial Statements were considered. Application during the year The table below sets out how the Committee discharged its duties during the year under review and up until the approval of this report. The Committee met three times during the year. Further details on attendance can be found on page 65. An evaluation of the Committee’s effectiveness and review of its terms of reference was completed during the year. Significant issues identified during the Committee’s review of the Company’s principal and emerging risks, and key matters communicated by the auditor during reporting are included below. Section 4: Governance 67 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Risk management and internal controls Financial reports and valuation Audit Provision of non-audit services by the auditor Reviewed the Financial Reporting Council’s Guidance on Audit Committees and formulated a policy on the provision of non-audit services by the Company’s auditor. The Committee determined that the Company’s appointed auditor will not be considered for the provision of certain non-audit services, such as accounting and preparation of the financial statements, internal audit and custody. The auditor may, if required, provide other non-audit services which will be judged on a case-by-case basis. The auditor did not provide any non-audit services to the Company during the year. Consent to continue as auditor Ernst & Young LLP indicated to the committee their willingness to continue to act as auditor. Recommendations made to, and approved by, the Board: As a result of the work performed, the Committee has concluded that the Annual Report for the year ended 31 December 2024, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s position, performance, business model and strategy, and has reported on these findings to the Board. The Board’s conclusions in this respect are set out in the Statement of Directors’ Responsibilities on page 75. Having reviewed the performance of the auditor as described above, the Committee considered it appropriate to recommend the re- appointment of Ernst & Young LLP as auditor. Resolutions to re-appoint Ernst & Young LLP as auditor to the Company, and to authorise the Directors to determine the auditor’s remuneration will be proposed at the AGM. By order of the Board Jasper Judd Chair of the Audit and Risk Committee 18 March 2025 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 4: Governance 68 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Management Engagement Committee Report The Management Engagement Committee is responsible for (1) the monitoring and oversight ofthe Manager’s performance and fees, and confirming the Manager’s ongoing suitability, and (2) reviewing and assessing the Company’s other service providers, and reviewing their fees. All Directors are members of the Committee. Sarah MacAulay is the Chair of the Committee. Its terms of reference are available on the Company’s web pages: www.schroders.co.uk/satric. Approach The Committee’s key roles and responsibilities are set out in the table below. Oversight of the Manager The Committee: • reviews the Manager’s performance, over the short and long term, against the Reference Index, peer group and the market; • considers the reporting it has received from the Manager throughout the year, and the reporting from the Manager to the shareholders; • assesses management fees including the performance fee on an absolute and relative basis, receiving input from the Company’s broker, including peer group and industry figures, as well as the structure of the fees; • reviews the appropriateness of the Manager’s contract, including terms, such as the notice period; • visits the Manager’s Asian offices periodically to meet with key personnel from the Investment Manager; and • assesses whether the Company receives appropriate administrative, accounting, company secretarial and marketing support from the Manager. Oversight of the Manager The Committee undertook a detailed review of the Investment Manager’s performance and agreed that there was the appropriate depth and quality of resource to deliver superior returns over the longer term. The Committee reviewed the terms of the AIFM agreement, including the fee structure, and agreed they remained fit for purpose. The Committee reviewed the other services provided by the Manager and agreed they were satisfactory. Oversight of other service providers The Committee reviews the performance and competitiveness of the following service providers on at least an annual basis: • depositary and custodian; • corporate broker; • registrar; and • lender. The Committee also receives a report from the company secretary on ancillary service providers, and considers any recommendations. The Committee notes the Audit and Risk Committee’s review of the auditor. Oversight of other service providers The Committee conducted a detailed review of each of the Company’s key service providers, including their anti modern slavery, anti-bribery, sustainability, diversity and inclusion policies, and concluded that their continued appointments were appropriate. The Committee noted that the Audit and Risk Committee had undertaken a detailed evaluation of the internal controls of the Manager, registrar, administrator, depositary and custodian. Further details are provided in the Audit and Risk Committee Report. Application during the year Recommendations made to, and approved by, the Board: • That the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best interests of shareholders as a whole. • That the performance of the Company’s service providers remained satisfactory. Section 4: Governance 69 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Nomination Committee Report The Nomination Committee is responsible for (1) the recruitment, selection and induction of Directors, (2) their assessment during their tenure, and (3) the Board’s succession plans. All Directors are members of the Committee. Sarah MacAulay is the Chair of the Committee. Its terms of reference are available on the Company’s web pages: www.schroders.co.uk/satric. Approach The committee’s key roles and responsibilities are set out in the table below. Selection and ongoing assessment of Directors Application of succession policy Selection Induction Annual evaluation Annual review of succession policy Selection and induction • The Committee prepares a job specification for each role, and proposals are sought from independent search firms. Following evaluation by the Committee, a firm is selected. For the Chair and the Chairs of Committees, the Committee considers current Board members too. • A job specification outlines the knowledge, professional skills, personal qualities and experience requirements. • The search firm sources a long list of potential candidates, who are assessed against the job specification and the Company’s diversity policy. • The Committee discusses the long list, invites a number of candidates for interview and makes a recommendation to the Board. • The Committee reviews the induction and training of new Directors. Board evaluation and Directors’ fees • The Committee assesses the performance, composition, diversity and how effectively members work together annually and will also consider if an external evaluation is appropriate. • The evaluation focuses on whether each Director continues to demonstrate commitment to their role and provides a valuable contribution to the Board during the year, taking into account time commitment, independence, conflicts and training needs. • Following the evaluation, the Committee provides a recommendation to shareholders with respect to the election or annual re-election of Directors at the AGM. • The Committee reviews Directors’ fees, taking into account comparative data, and makes a recommendation to the Board should a change in fees be considered appropriate. • Any proposed changes to the remuneration policy for Directors is discussed and recommended to the Board to be proposed to shareholders for approval at the AGM. Succession • Taking into consideration diversity and the need for regular refreshment, the Board’s succession policy is that Directors’ tenure will be for no longer than nine years, except in exceptional circumstances, and that each Director will be subject to annual re-election at the AGM. • The Committee reviews the Board’s current and future succession requirements at least annually. Should any need be identified the Committee will initiate the selection process. • The Committee oversees the handover process for retiring Directors and the induction process for new Directors. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 4: Governance 70 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Application during the year Selection and induction • Following her appointment, subsequent to a rigorous selection process using independent search firm Cornforth Consulting, Marion Sears engaged in an induction programme with the Manager and its various operating functions. Board evaluation and Directors’ fees • The annual Board evaluation, including evaluation of the Board Committees, was undertaken in December 2024. The evaluation was undertaken internally by the completion of questionnaires. • The Committee also considered each Director’s time commitment and independence by reviewing a complete list of appointments, including pro bono not for profit roles, to ensure that each Director remained free from conflict and had sufficient time available to discharge each of their duties effectively. The Chair of the Audit and Risk Committee led the review of these matters in respect of the Chair. • The Committee was mindful of the concept of ‘overboarding’ and considered the time, nature and complexity of each Director’s other roles and concluded that it does not believe that any of the Directors are currently overboarded. • The Committee considered each Director’s contributions, and noted that in addition to extensive experience as professionals and non-executive Directors, each Director had valuable skills and experience, as detailed in their biographies on pages 60 and 61. • All Directors were considered to be independent in character and judgement. • Based on its assessment, the Committee provided individual recommendations for each Director’s re-election, at the AGM to be held in April 2025, with the exception of Marion Sears, who will seek election, having been appointed as a Director in April 2024. • The Committee reviewed Directors’ fees, using external benchmarking, and recommended an increase in Directors’ fees, as detailed in the Directors’ Remuneration Report. Succession • Following a rigorous selection process, Marion Sears was appointed to the Board as a non-executive Director with effect from 24 April 2024 and will stand for election as a non-executive Director at the forthcoming AGM. • The Committee reviewed the succession policy and agreed it was still fit for purpose. • Following the retirement of Caroline Hitch as a non-executive Director and SID at the AGM in 2024, Marion Sears was appointed as SID in December 2024. Recommendations made to, and approved by, the Board: • That Marion Sears be appointed to the Board as a non-executive Director with effect from 24 April 2024 and that her election as a Director be proposed, and recommended to shareholders for approval, at the 2025 AGM. • That with effect from 4 December 2024 Marion Sears be appointed as the Company’s SID. • That all Directors remain independent, continue to demonstrate commitment to their roles, provide a valuable contribution to the deliberations of the Board, contribute towards the Company’s long-term, sustainable success, and remain free from conflicts with the Company and its Directors, so should all be recommended for re-election by shareholders at the AGM, with the exception of Marion Sears, who having been appointed as a non-executive Director in April 2024, would seek election by shareholders at the AGM. • That Directors’ fees be increased, as detailed in the Directors’ Remuneration Report, with effect from 1 January 2025. • That the Directors’ Remuneration Report be put to shareholders for approval at the 2025 AGM. Section 4: Governance 71 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Directors’ Remuneration Report On behalf of the Board, I am pleased to present the Directors’ Remuneration Report for the year ended 31 December 2024. This Report has been prepared in accordance with Sections 420-422 of the Companies Act 2006 and the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 The law requires the Company’s auditor to audit certain of the disclosures provided. Where disclosures have been audited, they are indicated as such. The auditor’s opinion is included in their report on pages 78 to 82. The following remuneration policy is currently in force and is subject to a binding vote every three years. The next vote will take place at the 2026 AGM and the current policy provisions will apply until that date. The Directors’ report on remuneration, set out below, is subject to an annual advisory vote. An ordinary resolution to approve this report will be put to shareholders at the forthcoming AGM. At the AGM held on 25 April 2023, 99.91% of the votes cast (including votes cast at the Chair’s discretion) in respect of approval of the remuneration policy were in favour, while 0.09% were against and 59,137 votes were withheld. At the AGM held on 24 April 2024, 99.89% of the votes cast (including votes cast at the Chair’s discretion) in respect of approval of the annual report on remuneration for the year ended 31 December 2023 were in favour, while 0.11% were against and 18,223 votes were withheld. Directors’ remuneration policy The determination of the Directors’ fees is a matter dealt with by the Board and the Nomination Committee. It is the Board’s policy to determine the level of Directors’ remuneration having regard to amounts payable to non-executive Directors in the industry generally, the role that individual Directors fulfil in respect of Board and Committee responsibilities, and time committed to the Company’s affairs, taking into account the aggregate limit of fees set out in the Company’s Articles of Association. This aggregate level of Directors’ fees is currently set at £300,000 per financial year and any increase in this level requires approval by the Board and the Company’s shareholders. The Chair of the Board and the Chair of the Audit and Risk Committee each receive fees at a higher rate than the other Directors to reflect their additional responsibilities. Directors’ fees are set at a level to recruit and retain individuals of sufficient calibre, with the level of knowledge, experience and expertise necessary, and to promote the success of the Company in reaching its short and long-term strategic objectives. The Board and its Committees exclusively comprise non-executive Directors. No Director past or present has an entitlement to a pension from the Company and the Company has not, and does not intend to, operate a share scheme for Directors or to award any share options or long-term performance incentives to any Director. No Director has a service contract with the Company; however Directors have a letter of appointment. Directors do not receive exit payments and are not provided with any compensation for loss of office. Any Director who performs services which in the opinion of the Directors are outside the scope of the ordinary duties of a Director, may be paid additional remuneration to be determined by the Directors, in accordance with the Company’s Articles of Association. No other payments are made to Directors other than the reimbursement of reasonable out-of-pocket expenses incurred in attending to the Company’s business. Implementation of policy The terms of Directors’ letters of appointment are available for inspection at the Company’s registered office address during normal business hours and during the AGM at the location of such meeting. The Board did not seek the views of shareholders in setting this remuneration policy. Any comments on the policy received from shareholders would be considered on a case-by-case basis. As the Company does not have any employees, no employee pay and employment conditions were taken into account when setting this remuneration policy and no employees were consulted in its construction. Directors’ fees are reviewed annually and take into account research from third parties on the fee levels of directors of peer group companies, inflation, as well as industry norms and factors affecting the time commitment expected of the Directors. New Directors are subject to the provisions set out in this remuneration policy. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 4: Governance 72 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Remuneration Report for the year ended 31 December 2024 Fees paid to Directors The following amounts were paid by the Company to Directors for their services in respect of the year ended 31 December 2024 and the preceding financial year. Directors’ remuneration is entirely fixed; the Directors do not receive any variable remuneration. The performance of the Company over the financial year is presented on page 5, under the heading “Performance Summary”. Fees Taxable benefits 1 Total Change in annual fee over years ended 31 December Director 2024 £ 2023 £ 2024 £ 2023 £ 2024 £ 2023 £ 2024 % 2023 % 2022 % 2021 % 2020 % Sarah MacAulay (Chair) 49,000 45,000 – 1,584 49,000 46,584 5.2 3.5 (0.4) 9.7 37.3 Jasper Judd 2 43,000 35,269 821 – 43,821 35,269 24.2 n/a n/a n/a n/a Andrew Cainey 37,000 35,000 53 – 37,053 35,000 5.9 (0.4) (0.9) 0.5 n/a Marion Sears 3 24,667 – 126 – 24,793 – n/a n/a n/a n/a n/a Caroline Hitch 4 11,812 35,000 224 314 12,036 35,314 (65.9) 0.4 (0.6) 0.5 15.1 Mike Holt 5 – 13,333 – 952 – 14,285 n/a (64.9) 1.1 (1.2) 11.4 Total 165,479 163,602 1,224 2,850 166,702 166,452 1 Comprise amounts reimbursed for expenses incurred in carrying out business for the Company, and which have been grossed up, to include PAYE and NI contributions. 2 Appointed as a Director on 1 February 2023 and Chair of the Audit and Risk Committee on 25 April 2023. 3 Appointed as a Director on 24 April 2024 and Senior Independent Director on 4 December 2024. 4 Retired as a Director on 24 April 2024. 5 Retired as a Director and Chair of the Audit and Risk Committee on 25 April 2023. The information in the above table has been audited. Consideration of matters relating to Directors’ remuneration Directors’ remuneration was last reviewed by the Nomination Committee and the Board in December 2024. The members of the Board at the time that remuneration levels were considered are set out on pages 60 and 61. No external advice was sought in considering the levels of Directors’ fees, although information on fees paid to Directors of other investment companies managed by Schroders and peer group companies provided by the Manager and corporate broker was taken into consideration, as was independent third party research. Following this review, the Board agreed the Nomination Committee’s recommendation that Directors’ fees should be increased to the following levels with effect from 1 January 2025: Chair: £50,500; Audit and Risk Committee Chair: £44,000; and Director: £38,000. The Board will continue to review fees on an annual basis. Expenditure by the Company on remuneration and distributions to shareholders The table below compares the remuneration payable to Directors, to distributions made to shareholders during the year under review and the prior financial year. In considering these figures, shareholders should take into account the Company’s investment objective. Year ended 31 December 2024 Year ended 31 December 2023 Change £’000 £’000 % Remuneration payable to Directors 167 166 0.6 Distributions paid to shareholders – Dividends paid during the year 11,036 11,432 – Share buybacks 16,993 32,936 Total distributions paid to shareholders 28,029 44,368 (36.8) The information in the above table has been audited. Section 4: Governance 73 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Performance A graph showing the Company’s share price total return compared with the Reference Index over the last 10 years is set out below. The Reference Index has been selected as an appropriate comparison based on the composition of the Company’s investment portfolio. Share price and Reference Index total returns 75 100 125 150 175 200 225 250 275 300 325 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Reference Index total return Share price total return Source: Morningstar/Thomson Reuters. Rebased to 100 at 31 December 2014. Directors’ share interests The Company’s Articles of Association do not require Directors to own shares in the Company. The interests of Directors, including those of connected persons, at the beginning and end of the financial year under review, are set out below. At 31 December 2024 1 At 31 December 2023 1 Sarah MacAulay 72,475 53,975 Andrew Cainey 26,753 26,753 Jasper Judd 9,280 4,837 Marion Sears 2 10,000 n/a 1 Ordinary shares of 5p each. 2 Marion Sears was appointed as a Director on 24 April 2024. There have been no changes notified to the Company since the year end. The information in the above table has been audited. The Portfolio Managers and their connected persons’ interests in the Company were approximately 500,000 ordinary shares as at the date of this report. On behalf of the Board Sarah MacAulay Chair 18 March 2025 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 4: Governance 74 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising Financial Reporting Standard (“FRS”) 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the return or loss of the Company for that period. In preparing these financial statements, the Directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and accounting estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements and the Directors’ Remuneration Report comply with the Companies Act 2006. The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Manager is responsible for the maintenance and integrity of the web pages dedicated to the Company. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Directors’ Statement Each of the Directors, whose names and functions are listed on pages 60 and 61, confirm that to the best of their knowledge: • the financial statements, which have been 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), give a true and fair view of the assets, liabilities, financial position and net return of the Company; • the Annual Report and Financial Statements includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal and emerging risks that it faces; and • the Annual Report and Financial Statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s position and performance, business model and strategy. On behalf of the Board Sarah MacAulay Chair 18 March 2025 Section 4: Governance 75 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Golden Bridge, Da Nang, Vietnam Job No: 53868 Proof Event: 4 Black Line Level: 0 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 4 Black Line Level: 0 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 76 Job No: 53868 Proof Event: 4 Black Line Level: 0 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Section 5: Financials Independent Auditor’s Report 78 Income Statement 83 Statement of Changes in Equity 84 Statement of Financial Position 85 Cash Flow Statement 86 Notes to the Financial Statements 87 777777 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Independent Auditor’s Report Opinion We have audited the financial statements of Schroder Asian Total Return Investment Company plc (“the Company”) for the year ended 31 December 2024 which comprise the Income Statement, the Statement of Changes in Equity, the Statement of Financial Position, the Cash Flow Statement and the related notes 1 to 23, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: • give a true and fair view of the Company’s affairs as at 31 December 2024 and of its profit for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s 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 are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Company and we remain independent of Company in conducting the audit. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Company’s ability to continue to adopt the going concern basis of accounting included: • Confirming our understanding of the Company’s going concern assessment process by engaging with the Directors and the company secretary to determine if all key factors were considered in their assessment. • Inspecting the Directors’ assessment of going concern, including the revenue forecast and liquidity assessment, for the period to 31 March 2026 which is at least 12 months from the date these financial statements are authorised for issue. In preparing the revenue forecast, the Company has concluded that it is able to continue to meet its ongoing costs as they fall due. • Reviewing the factors and assumptions, including the impact of the current economic environment and other significant events that could give rise to market volatility, as applied to the revenue forecast and the liquidity assessment of the investments. We considered the appropriateness of the methods used to calculate the revenue forecast and the liquidity assessment and determined, through testing of the methodology and calculations, that the methods, inputs and assumptions utilised were appropriate to be able to make an assessment for the Company. • Considering the mitigating factors included in the revenue forecast that are within the control of the Company. We reviewed the Company’s assessment of the liquidity of investments held and evaluated the Company’s ability to sell those investments to cover the working capital requirements should revenue decline significantly. • In relation to the Company’s borrowing arrangements, inspecting the Directors’ assessment of the level of gearing. We recalculated the Company’s compliance with debt covenants and performed stress testing to assess the likelihood of the Company breaching the financial covenants as a result of a reduction in the value of the Company’s portfolio. • Assessing the impact of the upcoming continuation vote at the April 2025 AGM on the going concern basis of preparation, by considering the current and historical performance of the Company and making enquiries regarding the Broker’s discussion with certain shareholders about their current intentions in relation to the continuation vote and discussing the responses the Broker received with the Directors. • Reviewing the Company’s going concern disclosures included in the annual report in order to assess that the disclosures were appropriate and in conformity with the reporting standards. 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 ability to continue as a going concern for the period assessed by Directors, being the period to 31 March 2026, which is at least 12 months from the date these financial statements are authorised for issue. In relation to the Company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s ability to continue as a going concern. Overview of our audit approach Key audit matters • Risk of incomplete or inaccurate revenue recognition, including the classification of special dividends as revenue or capital items in the Income Statement • Risk of incorrect valuation or ownership of the investment portfolio. Materiality • Overall materiality of £4.76m which represents 1% of shareholders’ funds. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 78 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Climate change There has been increasing interest from stakeholders as to how climate change will impact companies. The Company has determined that the most significant future impacts from climate change could affect the Company’s investments and the overall investment process. This is explained in the Risk Report on page 52, which forms part of the “Other information,” rather than the audited financial statements. Our procedures on these disclosures therefore consisted solely of considering whether they are materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated. Our audit effort in considering climate change was focused on the adequacy of the Company’s disclosures in the financial statements as set out in note 1(a) and conclusion that there was no material impact of climate change on the valuation of investments. We also challenged the Directors’ considerations of climate change risks in their assessment of viability and associated disclosures. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters. Risk Our response to the risk Key observations communicated to the Audit and Risk Committee Incomplete or inaccurate revenue recognition, including the classification of special dividends as revenue or capital items in the Income Statement (as described on page 66 in the Audit and Risk Committee’s Report and as per the accounting policy set out on page 87) The total revenue for the year to 31 December 2024 was £12.39m (2023: £13.75m), consisting primarily of dividend income from listed equity investments. The Company received nine special dividends amounting to £0.49m (2023: £2.24m), of which £0.36m (2023: £0.60m) was classified as revenue and £0.13m (2023: £1.64m) was classified as capital. There is a risk of incomplete or inaccurate recognition of revenue through the failure to recognise proper income entitlements or to apply an appropriate accounting treatment. The Directors may be required to exercise judgement in determining whether income receivable in the form of special dividends should be classified as ‘revenue’ or ‘capital’ in the Income Statement. We performed the following procedures: We obtained an understanding of the processes and controls surrounding revenue recognition, including the classification of special dividends by performing walkthrough procedures. For 100% of dividends received and accrued, we recalculated the dividend income by multiplying the investment holdings at the ex-dividend date, traced from the accounting records, by the dividend per share, which was agreed to an independent data vendor. We also agreed all exchange rates to an independent data vendor and agreed a sample of dividends received and accrued to bank statements, where paid. For 100% of dividends accrued, we reviewed the investee company announcement to assess whether the dividend entitlements arose prior to 31 December 2024. To test completeness of recorded income, we verified that expected dividends for each investee company held during the year had been recorded as income with reference to investee company announcements obtained from an independent external source. For 100% of investments held during the year, we reviewed the type of dividends paid with reference to an external data vendor to identify those which were special dividends. For a sample of special dividends, we assessed the appropriateness of management’s classification as revenue or capital by reviewing the underlying rationale for the distributions. The results of our procedures identified no material misstatement in relation to the risk of incomplete or inaccurate revenue recognition, including incorrect classification of special dividends as revenue or capital items in the Income Statement. Section 5: Financials 79 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Risk Our response to the risk Key observations communicated to the Audit and Risk Committee Incorrect valuation or ownership of the investment portfolio (as described on page 66 in the Audit and Risk Committee’s Report and as per the accounting policy set out on page 87) The valuation of the investment portfolio at 31 December 2024 was £506.93m (2023: £484.01m) consisting primarily of listed investments. The valuation of the investments held by the Company is the key driver of the Company’s net asset value and total return. Incorrect investment pricing, or a failure to maintain proper legal title of the assets held by the Company, could have a significant impact on the net asset value and the return generated for shareholders. The fair value of listed investments is determined using quoted market bid prices at close of each market on the accounting date, for investments traded in active markets. The CFDs held in the portfolio are valued based on the price of the underlying security or index which they are purchased to reflect. The fair value of the CFDs is the difference between the strike price and the underlying shares in the contract. We performed the following procedures: We obtained an understanding of the processes surrounding investment pricing and legal title of listed investments by performing walkthrough procedures. For 100% of investments in the portfolio, including exchange traded derivatives we verified the market prices and exchange rates applied from an independent pricing vendor and recalculated the investment valuations as at the year end. For 100% of the CFDs in the portfolio, we verified the market prices for the underlying investments and exchange rates applied from an independent pricing vendor and recalculated the valuations as at year end. We inspected the stale pricing reports produced by the Administrator to identify prices for any listed investments that have not changed around the year-end to verify whether the listed price is a valid fair value through review of trading activity. No stale prices were identified. We compared the Company’s investment holdings and derivative positions as at 31 December 2024 to an independent confirmation received directly from the Company’s Custodian and Depositary, testing any reconciling items to supporting documentation. The results of our procedures identified no material misstatement in relation to the risk of incorrect valuation or ownership of the investment portfolio. There have been no changes to the areas of audit focus raised in the above risk table from prior year. Our application of materiality We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and in forming our audit opinion. Materiality The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures. We determined materiality for the Company to be £4.76 million (2023: £4.48 million), which is1% (2023: 1%) of shareholders’ funds. We believe that shareholders’ funds provides us with materiality aligned to the key measurement of the Company’s performance. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 80 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Performance materiality The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality. On the basis of our risk assessments, together with our assessment of the Company’s overall control environment, our judgement was that performance materiality was 75% (2023: 75%) of our planning materiality, namely £3.57m (2023: £3.36m). We have set performance materiality at this percentage due to our past experience of working with the Company which therefore indicates a lower risk of misstatements, both corrected and uncorrected. Given the importance of the distinction between revenue and capital for investment trusts, we also applied a separate testing threshold for the revenue column of the Income Statement of £0.50m (2023: £0.57m), being 5% of the revenue return before taxation. Reporting threshold An amount below which identified misstatements are considered as being clearly trivial. We agreed with the Audit and Risk Committee that we would report to them all uncorrected audit differences in excess of £0.24m (2023: £0.22m), which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant qualitative considerations in forming our opinion. Other information The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon. 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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion the part of the Directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006. In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the strategic report and Directors’ reports have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or Directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or • certain disclosures of Directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit. Corporate Governance Statement We have reviewed the Directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code specified for our review by the UK Listing Rules. Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit: • Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on page 75; • Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the period is appropriate set out on page 75; • Director’s statement on whether it has a reasonable expectation that the group will be able to continue in operation and meets its liabilities set out on page 75; • Directors’ statement on fair, balanced and understandable set out on page 75; • Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 52; • The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on page 52 and; • The section describing the work of the Audit and Risk committee set out on page 66. Responsibilities of Directors As explained more fully in the Directors’ responsibilities statement set out on page 75, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors 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 Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going Section 5: Financials 81 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor’s 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 auditor’s 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. Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management. • We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are UK GAAP, the Companies Act 2006, the UK Listing Rules, the UK Corporate Governance Code, the Statement of Recommended Practice for the Financial Statements of Investment Trust Companies as issued by the Association of Investment Companies, Section 1158 of the Corporation Tax Act 2010 and The Companies (Miscellaneous Reporting) Regulations 2018. • We understood how the Company is complying with those frameworks through discussions with the Audit and Risk Committee and company secretary, review of Board and Committee minutes and review of papers provided to the Audit and Risk Committee. • We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements. We identified a fraud risk with respect to incomplete or inaccurate revenue recognition through incorrect classification of special dividends as revenue or capital items in the Income Statement. Further discussion of our approach is set out in the section on key audit matters above. • Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved review of the reporting to the Directors with respect to the application of the documented policies and procedures and review of the financial statements to ensure compliance with the reporting requirements of the Company. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Other matters we are required to address • Following the recommendation from the Audit and Risk committee, we were appointed by the Company on 6 September 2019 to audit the financial statements for the year ending 31 December 2019 and subsequent financial periods. The period of total uninterrupted engagement including previous renewals and reappointments is six years, covering the years ending 31 December 2019 to 31 December 2024. • The audit opinion is consistent with the additional report to the Audit and Risk Committee. Use of our report This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed. James Beszant Senior statutory auditor for and on behalf of Ernst & Young LLP, Statutory Auditor London 18 March 2025 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 82 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Income Statement for the year ended 31 December 2024 Note 2024 Revenue £’000 2024 Capital £’000 2024 Total £’000 2023 Revenue £’000 2023 Capital £’000 2023 Total £’000 Gains on investments held at fair value through profit or loss 2 – 53,179 53,179 – 28,264 28,264 Net gains/(losses) on derivative contracts – 1,338 1,338 – (1,991) (1,991) Net foreign currency (losses)/gains – (596) (596) – 1,846 1,846 Income from investments 3 12,281 128 12,409 13,568 1,639 15,207 Other interest receivable and similar income 3 106 – 106 180 – 180 Gross return 12,387 54,049 66,436 13,748 29,758 43,506 Management fee 4 (794) (2,382) (3,176) (763) (2,288) (3,051) Performance fee 4 – (2,767) (2,767) – – – Administrative expenses 5 (1,025) – (1,025) (862) – (862) Net return before finance costs and taxation 10,568 48,900 59,468 12,123 27,470 39,593 Finance costs 6 (494) (1,482) (1,976) (695) (2,084) (2,779) Net return before taxation 10,074 47,418 57,492 11,428 25,386 36,814 Taxation 7 (910) (961) (1,871) (931) (505) (1,436) Net return after taxation 9,164 46,457 55,621 10,497 24,881 35,378 Return per share (pence) 8 9.61 48.71 58.32 10.26 24.33 34.59 The “Total” column of this statement is the profit and loss account of the Company. The “Revenue” and “Capital” columns represent supplementary information prepared under guidance issued by the AIC. The Company has no other items of other comprehensive income, and therefore the net return/(loss) after taxation is also the total comprehensive income/(loss) for the year. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. The notes on pages 87 to 102 form an integral part of these financial statements. Section 5: Financials 83 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Statement of Changes in Equity for the year ended 31 December 2024 Note Called-up share capital £’000 Shar e premium £’000 Capital redemption reserve £’000 Share purchase reserve £’000 Capital reserves £’000 Revenue reserve £’000 Total £’000 At 31 December 2022 5,456 114,656 11,646 29,182 270,838 25,696 457,474 Repurchase of the Company's own shares into treasury – – – – (32,936) – (32,936) Net return after taxation – – – – 24,881 10,497 35,378 Dividend paid in the year 9 – – – – – (11,432) (11,432) At 31 December 2023 5,456 114,656 11,646 29,182 262,783 24,761 448,484 Repurchase of the Company's own shares into treasury – – – – (16,993) – (16,993) Net return after taxation – – – – 46,457 9,164 55,621 Dividend paid in the year 9 – – – – – (11,036) (11,036) At 31 December 2024 5,456 114,656 11,646 29,182 292,247 22,889 476,076 The notes on pages 87 to 102 form an integral part of these financial statements. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 84 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Statement of Financial Position at 31 December 2024 Note 2024 £’000 2023 £’000 Fixed assets Investments held at fair value through profit or loss 10 506,932 484,012 Current assets Debtors 11 303 1,194 Cash and cash equivalents 11 1,743 2,527 Derivative financial instruments held at fair value through profit or loss 11 993 178 3,039 3,899 Current liabilities Creditors: amounts falling due within one year 12 (32,344) (38,841) (32,344) (38,841) Net current liabilities (29,305) (34,942) Total assets less current liabilities 477,627 449,070 Non current liabilities Deferred taxation 13 (1,551) (586) Net assets 476,076 448,484 Capital and reserves Called-up share capital 14 5,456 5,456 Share premium 15 114,656 114,656 Capital redemption reserve 15 11,646 11,646 Special reserve 15 29,182 29,182 Capital reserve 15 292,247 262,783 Revenue reserve 15 22,889 24,761 Total equity shareholders’ funds 476,076 448,484 Net asset value per share (pence) 16 509.04 461.24 These financial statements were approved and authorised for issue by the Board of Directors on 18 March 2025 and signed on its behalf by: Sarah MacAulay Chair The notes on pages 87 to 102 form an integral part of these financial statements. Registered in England and Wales as a public company limited by shares. Company registration number: 02153093. Section 5: Financials 85 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Note 2024 £’000 2023 £’000 Net cash inflow from operating activities 17 7,409 10,928 Investing activities Purchases of investments (106,492) (115,573) Sales of investments 137,445 158,529 Net cash flows on derivative instruments 1,520 (2,169) Net cash inflow from investing activities 32,473 40,787 Net cash inflow before financing 39,882 51,715 Financing activities Dividends paid (11,036) (11,432) Interest paid (2,090) (2,732) Bank loans repayment (15,484) (6,530) Repurchase of the Company's own shares into treasury (16,736) (33,222) Net cash outflow from financing activities (45,346) (53,916) Net cash outflow in the year 18 (5,464) (2,201) Cash and cash equivalents at the beginning of the year 2,527 5,161 Change in cash and cash equivalents (5,464) (2,201) Exchange movements (94) (433) Cash and cash equivalents at the end of the year (3,031) 2,527 Represented by: Cash at bank and derivative clearing houses 1,743 2,527 Overdraft at bank and derivative clearing houses (4,774) – Cash and cash equivalents at the end of the year (3,031) 2,527 Dividends received during the year amounted to £12,488,000 (2023: £15,263,000), deposit interest and other income receipts amounted to £108,000 (2023: £178,000). The notes on pages 87 to 102 form an integral part of these financial statements. Cash Flow Statement for the year ended 31 December 2024 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 86 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Notes to the Financial Statements for the year ended 31 December 2024 1. Accounting Policies (a) Basis of accounting Schroder Asian Total Return Investment Company plc (“the Company”) is registered in England and Wales as a public company limited by shares. The Company’s registered office is 1 London Wall Place, London EC2Y 5AU. The financial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice (UK GAAP), in particular in accordance with Financial Reporting Standard (FRS) 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and with the Statement of Recommended Practice “Financial Statements of Investment Trust Companies and Venture Capital Trusts” (the “SORP”) issued by The Association of Investment Companies in July 2022. All of the Company’s operations are of a continuing nature. The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of investments and derivative financial instruments held at fair value through profit or loss. The Directors believe that the Company has adequate resources to continue operating for the period to 31 March 2026, which is at least 12 months from the date of approval of these financial statements. In forming this opinion, the Directors have taken into consideration: the controls and monitoring processes in place; the Company’s low level of debt and other payables; the low level of operating expenses, comprising largely variable costs which would reduce pro rata in the event of a market downturn; and that the Company’s assets comprise cash and readily realisable securities quoted in active markets. In forming this opinion, the Directors have also considered any potential impact of climate change on the viability of the Company. Further details of Directors’ considerations regarding any potential impact of climate change are given in the Chair’s Statement, Investment Managers’ Review, Going Concern Statement, Viability Statement and under the Risk Report heading on page 52. In preparing these financial statements the Directors have also considered the impact of climate change on the value of the listed investments that the Company holds. As the portfolio consists of listed equities, which are valued using quoted bid prices for investments in an active market, then fair value reflects market participants view of climate change risk. The financial statements are presented in sterling and amounts have been rounded to the nearest thousand. The accounting policies applied to these financial statements are consistent with those applied in the financial statements for the year ended 31 December 2023. No significant judgements, estimates or assumptions have been required in the preparation of the financial statements for the current or prior financial year. (b) Valuation of investments The Company’s business is investing in financial assets with a view to profiting from their total return in the form of income and capital growth. This portfolio of financial assets and derivative financial instruments is managed, and its performance evaluated, on a fair value basis, in accordance with a documented investment strategy and information is provided internally on that basis to the Company’s Board of Directors. Accordingly, upon initial recognition the investments are classified by the Company as “held at fair value through profit or loss”. Investments are included initially at transaction price, excluding expenses incidental to purchase, which are written off to capital at the time of acquisition. Subsequently, investments are valued at fair value, which are quoted bid prices at the close of each market on the accounting date, for investments traded in active markets. The contracts for difference (“CFD”) held in the portfolio are valued based on the price of the underlying security or index which they are purchased to reflect. The fair value of the CFDs is the difference between the strike price and the underlying shares in the contract. All purchases and sales are accounted for on a trade date basis. (c) Accounting for reserves Gains and losses on sales of investments are included in the Income Statement and in capital reserves within “gains and losses on sales of investments”. Increases and decreases in the valuation of investments held at the year end are included in the Income Statement and in capital reserves within “holding gains and losses on investments”. Gains and losses on sales of CFDs and increases and decreases in the valuation of CFDs are included “in the statement of comprehensive income and in capital reserves within “net gains on derivative contracts.” Foreign exchange gains and losses on cash and deposit balances and unrealised exchange gains and losses on foreign currency loans are included in the Income Statement and in capital reserves. The cost of repurchasing the Company’s own shares for cancellation or to hold in treasury, including the related stamp duty and transactions costs is charged to a distributable capital reserve. Section 5: Financials 87 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 (d) Income Dividends receivable are included in revenue on an ex-dividend basis except where, in the opinion of the Board, the dividend is capital in nature, in which case it is included in capital. Dividends from overseas companies are included gross of any withholding tax. Where the Company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised in revenue. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital. Deposit interest outstanding at the year end is calculated and accrued on a time apportionment basis using market rates of interest. (e) Expenses All expenses are accounted for on an accruals basis. Expenses are allocated wholly to the revenue column of the Income Statement with the following exceptions: • The management fee is allocated 25% to revenue and 75% to capital in line with the Board’s expected long-term split of revenue and capital return from the Company’s investment portfolio. • Any performance fee is allocated 100% to capital. • Expenses incidental to the purchase or sale of an investment are charged to capital. These expenses are commonly referred to as transaction costs and mainly comprise brokerage commission. Details of transaction costs are given in note 10 on page 92. (f) Finance costs Finance costs, including collateral and finance costs paid on CFDs, any premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis using the effective interest method in accordance with FRS 102. Finance costs are allocated 25% to revenue and 75% to capital in line with the Board’s expected long-term split of revenue and capital return from the Company’s investment portfolio. (g) Other financial instruments Cash and cash equivalents may comprise cash, amounts held at derivative clearing houses and demand deposits which are readily convertible to a known amount of cash and are subject to insignificant risk of changes in value. Other debtors and creditors do not carry any interest, are short-term in nature and are accordingly stated at nominal value, with debtors reduced by appropriate allowances for estimated irrecoverable amounts. Bank loans are classified as financial liabilities at amortised cost. They are initially measured at the proceeds received, net of direct issue costs, and subsequently measured at amortised cost using the effective interest method. Forward foreign currency contracts are held at fair value through profit or loss based on the gain or loss if the contracts had been closed out at the accounting date, at prevailing market rates. (h) Taxation The tax charge for the year includes a provision for all amounts expected to be received or paid. Deferred tax is provided on all timing differences that have originated but not reversed by the balance sheet date. Deferred tax liabilities are recognised for all taxable timing differences but deferred tax assets are only recognised to the extent that it is probable that taxable profits will be available against which those timing differences can be utilised. Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates that have been enacted or substantively enacted at the balance sheet date and is measured on an undiscounted basis. (i) Value added tax (VAT) Expenses are disclosed inclusive of any related irrecoverable VAT. (j) Foreign currency In accordance with FRS 102, the Company is required to determine a functional currency, being the currency in which the Company predominantly operates. The Board, having regard to the currency of the Company’s share capital and the predominant currency in which its shareholders operate, has determined that sterling is the functional currency and the currency in which the financial statements are presented. Transactions denominated in foreign currencies are converted at actual exchange rates as at the date of the transaction. Monetary assets, liabilities and equity investments, denominated in foreign currencies at the year end, are translated at the rates of exchange prevailing at the year end. (k) Dividends payable In accordance with FRS 102, the final dividend is included in the financial statements in the year in which it is approved by shareholders. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 88 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 (l) Repurchases of shares into treasury and subsequent reissues The cost of repurchasing the Company’s shares into treasury, including the related stamp duty and transaction costs is dealt with in the Statement of Changes in Equity and is charged to capital reserves. Share repurchase transactions are accounted for on a trade date basis. The sales proceeds of treasury shares reissued are treated as a realised profit up to the amount of the purchase price of those shares and is transferred to capital reserves. The excess of the sales proceeds over the purchase price is transferred to “share premium”. 2. Gains on investments held at fair value through profit or loss 2024 £’000 2023 £’000 Gains on sales of investments based on historic cost 19,679 22,776 Amounts recognised in investment holding gains and losses in the previous year in respect of investments sold in the year (22,801) (21,733) (Losses)/gains on sales of investments based on the carrying value at the previous balance sheet date (3,122) 1,043 Unrealised gains recognised in respect of investments continuing to be held 56,301 27,221 Gains on investments held at fair value through profit or loss 53,179 28,264 3. Income 2024 £’000 2023 £’000 Income from investments Overseas dividends 11,922 12,934 Overseas special dividends 359 601 Stock dividend – 33 12,281 13,568 Other interest receivable and similar income Deposit interest 27 180 Other income 79 – 106 180 12,387 13,748 Capital Special dividend allocated to capital 128 1,639 4. Management and performance fees 2024 Revenue £’000 2024 Capital £’000 2024 Total £’000 2023 Revenue £’000 2023 Capital £’000 2023 Total £’000 Management fee 794 2,382 3,176 763 2,288 3,051 Performance fee – 2,767 2,767 – – – 794 5,149 5,943 763 2,288 3,051 The bases for calculating the investment management and performance fees are set out in the Directors’ Report on page 63 and details of all amounts payable to the Manager are given in note 19 on page 96. Section 5: Financials 89 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 5. Administrative expenses 2024 £’000 2023 £’000 Custody fees 243 208 Administration expenses 491 363 Directors’ fees 1 165 164 Secretarial fee 75 75 Auditor’s remuneration 2 51 52 1,025 862 1 Details of all amounts payable to Directors are given in the Directors’ Remuneration Report on page 73. 2 No amounts are payable to the auditor for non-audit services. 6. Finance costs 2024 Revenue £’000 2024 Capital £’000 2024 Total £’000 2023 Revenue £’000 2023 Capital £’000 2023 Total £’000 Interest on bank loans and overdrafts 494 1,482 1,976 695 2,084 2,779 7. Taxation (a) Analysis of tax charge for the year 2024 Revenue £’000 2024 Capital £’000 2024 Total £’000 2023 Revenue £’000 2023 Capital £’000 2023 Total £’000 Irrecoverable overseas tax 910 – 910 931 – 931 Overseas capital gains tax – 961 961 – 505 505 Taxation for the year 910 961 1,871 931 505 1,436 The Company has no corporation tax liability for the year (2023: nil). The overseas capital gains tax relates to the deferred tax liability on unrealised gains on Indian investments held at the year end. (b) Factors affecting tax charge for the year The standard rate of corporation tax in the UK is 25%, effective from 1 April 2023. Accordingly, the Company’s profits for this accounting year would be taxed at a rate of 25% (2023: 23.5%). However the corporation tax charge for the year is nil (2023: nil), as dividends and capital gains are not subject to corporation tax. The tax charge comprises irrecoverable withholding tax deducted at source from dividends receivable and overseas capital gains tax. The table below shows how taxable income is reduced to zero by reconciling the expected corporation tax due on the net return before tax based on current tax rates, to the actual tax charge for the year. 2024 Revenue £’000 2024 Capital £’000 2024 Total £’000 2023 Revenue £’000 2023 Capital £’000 2023 Total £’000 Net return on ordinary activities before taxation 10,074 47,418 57,492 11,428 25,386 36,814 Net return on ordinary activities before taxation multiplied by the Company’s applicable rate of corporation tax for the year of 25% (2023: 23.5%) 2,519 11,855 14,374 2,686 5,966 8,652 Effects of: Capital gains on investments – (13,480) (13,480) – (6,608) (6,608) Income not subject to taxation (3,049) (32) (3,081) (3,161) (385) (3,546) Overseas capital gains tax – 961 961 – 505 505 Irrecoverable overseas tax 910 – 910 931 – 931 Unrelieved expenses 530 1,657 2,187 475 1,027 1,502 Tax on ordinary activities 910 961 1,871 931 505 1,436 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 90 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 (c) Deferred taxation The Company has an unrecognised deferred tax asset of £19,925,000 (2023: £17,738,000) based on a prospective corporation tax rate of 25% (2023: 25%). This deferred tax asset has arisen due to the cumulative excess of deductible expenses over taxable income. Given the composition of the Company’s portfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been recognised in the financial statements. Given the Company’s intention to meet the conditions required to retain its status as an investment trust company, no provision has been made for UK capital gains tax on any capital gains or losses arising on the revaluation or disposal of investments. Please refer to note 13 for details of the deferred taxation in relation to overseas capital gains tax. 8. Return per share 2024 £’000 2023 £’000 Revenue return 9,164 10,497 Capital return 46,457 24,881 Total return 55,621 35,378 Weighted average number of shares in issue during the year 95,376,796 102,272,753 Revenue return per share (pence) 9.61 10.26 Capital return per share (pence) 48.71 24.33 Total return per share (pence) 58.32 34.59 9. Dividends (a) Dividends paid and declared 2024 £’000 2023 £’000 2023 final dividend of 11.5p (2022: 11.0p), paid out of revenue profits 1 11,036 11,432 2024 £’000 2023 £’000 2024 final dividend proposed of 11.5p (2023: 11.5p), to be paid out of revenue profits 10,755 11,182 1 The 2023 final dividend amounted to £11,182,000. However the amount actually paid was £11,036,000, as shares were repurchased into treasury after the accounting date but prior to the dividend record date. (b) Dividends for the purposes of Section 1158 of the Corporation Tax Act 2010 (“Section 1158”) The requirements of Section 1158 are considered on the basis of dividends declared in respect of the financial year as shown below. The revenue available for distribution by way of dividend for the year is £9,164,000 (2023: £10,497,000). 2024 £’000 2023 £’000 Final dividend of 11.5p (2023: 11.5p) 10,755 11,182 Section 5: Financials 91 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 10. Investments held at fair value through profit or loss (a) Movement in investments 2024 £’000 2023 £’000 Opening book cost 370,259 391,040 Opening investment holding gains 113,753 108,265 Opening fair value 484,012 499,305 Analysis of transactions made during the year Purchases at cost 106,370 115,788 Sales proceeds (136,629) (159,345) Gains on investments held at fair value 53,179 28,264 Closing fair value 506,932 484,012 Closing book cost 359,679 370,259 Closing investment holding gains 147,253 113,753 Closing fair value 506,932 484,012 Sales proceeds amounting to £136,629,000 (2023: £159,345,000) were receivable from disposals of investments in the year. The book cost of these investments when they were purchased was £116,950,000 (2023: £136,568,000). These investments have been revalued over time and until they were sold any unrealised gains and losses were included in the fair value of the investments. (b) Transaction costs The following transaction costs, mainly comprising brokerage commissions, were incurred during the year: 2024 £’000 2023 £’000 On acquisitions 123 170 On disposals 248 264 371 434 (c) Contracts for Difference CFDs held at 31 December: 2024 Asset exposure £’000 2024 Fair value £’000 2023 Asset exposure £’000 2023 Fair value £’000 CFD assets 4,013 30 – – CFD liabilities 11,294 (254) – – 15,307 (224) – – The CFDs are held as a cost effective and flexible form of borrowing. The total market exposure on the CFDs held at the year end is £15,307,000 (2023: £nil) and the notional value attached to these CFDs is £15,531,000 (2023: £nil). This resulted in an unrealised loss of £224,000 (2023: £nil). Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 92 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 11. Current assets Debtors 2024 £’000 2023 £’000 Dividends and interest receivable 275 346 Securities sold awaiting settlement – 816 Taxation recoverable 2 8 Other debtors 26 24 303 1,194 The Directors consider that the carrying amount of debtors approximates to their fair value. Cash and cash equivalents 2024 £’000 2023 £’000 Cash at bank 627 2,502 Amounts held at derivative clearing houses and brokers 1,116 25 1,743 2,527 The carrying amount of cash represents its fair value. No cash equivalents were held at the year end (2023: same). Derivative financial instruments held at fair value through profit or loss 2024 £’000 2023 £’000 CFD assets 30 – Forward currency contracts 458 – Index put options 505 178 993 178 Details of the CFDs, forward currency contracts and index put options held at the year end are given on pages 34 to 36. 12. Current liabilities Creditors: amounts falling due within one year 2024 £’000 2023 £’000 Bank loan 22,357 37,339 Bank overdraft 4,534 – Amounts held at derivative clearing houses and brokers 240 – Derivative financial instruments held at fair value through profit or loss - CFD liabilities 254 – Securities purchases awaiting settlement – 122 Amounts payable on settlement of derivatives 743 – Repurchase of ordinary shares into treasury awaiting settlement 255 – Other creditors and accruals 3,961 1,380 32,344 38,841 The Directors consider that the carrying amount of creditors falling due within one year approximates to their fair value. The bank loan comprises USD28 million (2023: USD47.6 million) drawn down on the Company’s £75 million (2023: £75 million), 364 day multicurrency credit facility with The Bank of Nova Scotia, London Branch, expiring July 2025. The facility was secured from amendment and restatement on 18 July 2024 and is subject to covenants and restrictions which are customary for a facility of this nature, all of which have been complied with during the year. Further details of this facility are given in note 22(a)(ii) on page 99. Section 5: Financials 93 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 13. Deferred taxation Deferred taxation comprises the deferred tax liability on the unrealised gains on Indian investments. Indian capital gains tax crystallises on disposal of the underlying asset and is charged based on a 12 month holding period of the asset. The current rate of tax is 12.5% (plus applicable surcharge and cess) for holdings over 12 months and 20% (plus applicable surcharge and cess) for holdings under 12 months. At the end of the prior year, the rate of tax was 10% (plus applicable surcharge and cess) for holdings over 12 months or 15% (plus applicable surcharge and cess) for holdings under 12 months. The provision for deferred taxation at the year end was £1,551,000 (2023: £586,000). 14. Called-up share capital 2024 £’000 2023 £’000 Ordinary shares allotted, called up and fully paid: Opening balance of 97,234,120 (2023: 105,263,203) shares 4,862 5,263 Repurchase of 3,709,666 (2023: 8,029,083) shares into treasury (186) (401) Subtotal of 93,524,454 (2023: 97,234,120) shares 4,676 4,862 15,590,197 (2023: 11,880,531) shares held in treasury 780 594 Closing balance 1 5,456 5,456 1 Represents 109,114,651 (2023: 109,114,651) shares of 5p each, including 15,590,197 (2023: 11,880,531) held in treasury. During the year, the Company repurchased 3,709,666 of its own shares, nominal value £186,000, to hold in treasury, representing 3.8% of the shares outstanding at the beginning of the year. The total consideration paid for these shares amounted to £16,993,000. The reason for these purchases was to seek to manage the volatility of the share price discount to NAV per share. 15. Reserves Capital reserves Year ended 31 December 2024 Share premium 1 £’000 Capital redemption reserve 2 £’000 Special reserve 3 £’000 Gains and losses on sales of investments 4 £’000 Investment holding gains and losses 5 £’000 Revenue reserve 6 £’000 At 31 December 2023 114,656 11,646 29,182 151,707 111,076 24,761 Losses on sales of investments based on the carrying value at the previous balance sheet date – – – (3,122) – – Unrealised gains recognised in respect of investments continuing to be held – – – – 56,301 – Transfer on disposal of investments – – – 22,801 (22,801) – Gains on derivatives – – – 497 841 – Realised exchange losses on cash and short-term deposits – – – (94) – – Exchange (losses)/gains on foreign currency loans – – – (806) 304 – Special dividend allocated to capital – – – 128 – – Repurchase of shares into treasury – – – (16,993) – – Performance fee allocated to capital – – – (2,767) – – Management fee and finance costs allocated to capital – – – (3,864) – – Overseas capital gains tax – – – – (961) – Dividend paid – – – – – (11,036) Retained revenue for the year – – – – – 9,164 At 31 December 2024 114,656 11,646 29,182 147,487 144,760 22,889 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 94 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Capital reserves Year ended 31 December 2023 Share premium 1 £’000 Capital redemption reserve 2 £’000 Special reserve 3 £’000 Gains and losses on sales of investments 4 £’000 Investment holding gains and losses 5 £’000 Revenue reserve 6 £’000 At 31 December 2022 114,656 11,646 29,182 167,204 103,634 25,696 Losses on sales of investments based on the carrying value at the previous balance sheet date – – – 1,043 – – Unrealised gains recognised in respect of investments continuing to be held – – – – 27,221 – Transfer on disposal of investments – – – 21,733 (21,733) – Losses on derivatives – – – (1,627) (364) – Realised exchange losses on cash and short-term deposits – – – (433) – – Exchange (losses)/gains on foreign currency loans – – – (632) 2,911 – Special dividend allocated to capital – – – 1,639 – – Repurchase of shares into treasury – – – (32,936) – – Management fee and finance costs allocated to capital – – – (4,372) – – Overseas capital gains tax – – – 88 (593) – Dividend paid – – – – – (11,432) Retained revenue for the year – – – – – 10,497 At 31 December 2023 114,656 11,646 29,182 151,707 111,076 24,761 1 The share premium is a non distributable reserve and represents the amount by which the fair value of the consideration received from shares issued exceeds the nominal value of shares issued. 2 The capital redemption reserve represents the accumulated nominal value of shares repurchased for cancellation. This reserve is not distributable. 3 This is a distributable capital reserve arising from the cancellation of the share premium, and may be distributed as dividends or used to repurchase the Company’s own shares. 4 This is a realised (distributable) capital reserve and a positive balance may be used to repurchase the Company’s own shares or distributed as dividends. 5 This reserve may include some holding gains on liquid investments (which may be deemed to be realised) and other amounts which are unrealised. An analysis has not been made between those amounts that are realised (and may be distributed as dividends or used to repurchase the Company’s own shares) and those that are unrealised. 6 A positive balance on the revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares. 1 6. Net asset value per share 2024 £’000 2023 £’000 Total equity shareholders’ funds (£’000) 476,076 448,484 Shares in issue at the year end 93,524,454 97,234,120 Net asset value per share (pence) 509.04 461.24 Section 5: Financials 95 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 17. Reconciliation of total return on ordinary activities before finance costs and taxation to net cash inflow from operating activities 2024 £’000 2023 £’000 Total return on ordinary activities before finance costs and taxation 59,468 39,593 Less capital returns on ordinary activities before finance costs and taxation (48,900) (27,470) Decrease in prepayments and accrued income 82 146 Decrease in other debtors 4 1 Increase in other creditors 2,694 258 Special dividends allocated to capital 128 1,639 Less stock and accumulation dividends – (93) Management fee allocated to capital (2,382) (2,288) Performance fee allocated to capital (2,767) – Overseas withholding tax deducted at source (918) (858) Net cash inflow from operating activities 7,409 10,928 18. Analysis of changes in net debt 2023 £’000 Cash flow £’000 Exchange movements £’000 2024 £’000 Cash and cash equivalents 2,527 (692) (92) (1,743) Bank loan (37,339) 15,484 (502) (22,357) Overdraft at bank and derivative clearing houses – (4,772) (2) (4,774) Net debt (34,812) 10,020 (596) (25,388) 19. Transactions with the Manager Under the terms of the Alternative Investment Fund Manager Agreement, the Manager is entitled to receive management, secretarial and performance fees. Details of the basis of these calculations are given in the Directors’ Report on page 63. If the Company invests in funds managed or advised by the Manager, any fees earned by the Manager are rebated to the Company. The management fee payable in respect of the year ended 31 December 2024 amounted to £3,176,000 (2023: £3,051,000) of which £799,000 (2023: £775,000) was outstanding at the year end. The performance fee payable in respect of the year amounted to £2,767,000, the full amount of which was outstanding at the year end (2023: No performance fee was payable and outstanding at the year end). The secretarial fee payable for the year amounted to £75,000 (2023: £75,000) of which £19,000 (2023: £19,000) was outstanding at the year end. No Director of the Company served as a Director of any company within the Schroder Group at any time during the year. 20. Related party transactions Details of the remuneration payable to Directors are given in the Directors’ Remuneration Report on page 73 and details of Directors’ shareholdings are given in the Directors’ Remuneration Report on page 74. Details of transactions with the Manager are given in note 19 above. There have been no other transactions with related parties during the year (2023: nil). Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 96 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 21. Disclosures regarding financial instruments measured at fair value The Company’s financial instruments within the scope of FRS 102 that are held at fair value include its investment portfolio and derivative financial instruments. FRS 102 requires financial instruments to be categorised into a hierarchy consisting of the three levels below. Level 1 – valued using unadjusted quoted prices in active markets for identical assets. Level 2 – valued using observable inputs other than quoted prices included within Level 1. Level 3 – valued using inputs that are unobservable. Details of the Company’s policy for valuing investments and derivative instruments are given in note 1(b) on page 87. The following table sets out the fair value measurements using the FRS 102 hierarchy at 31 December: 2024 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000 Financial instruments held at fair value through profit or loss Equity investments 506,932 – – 506,932 Derivative financial instruments – index put options 505 – – 505 Derivative financial instruments - forward currency contracts – 458 – 458 Derivative financial instruments - contracts for difference - CFD assets – 30 – 30 Derivative financial instruments - contracts for difference - CFD liabilities – (254) – (254) Total 507,437 234 – 507,671 2023 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000 Financial instruments held at fair value through profit or loss Equity investments 484,012 – – 484,012 Derivative financial instruments – index put options 178 – – 178 Total 484,190 – – 484,190 22. Financial instruments’ exposure to risk and risk management policies In pursuing its objective, the Company is exposed to a variety of financial risks including market risk (comprising currency risk, interest rate risk and market price risk), liquidity risk and credit risk. The Directors’ policy for managing these risks is set out below. The process for managing risk is unchanged from the previous year. The Company’s financial instruments may comprise: • investments in equities and equity related securities which are held in accordance with the Company’s investment objective; • short-term debtors, creditors and cash arising directly from its operations; • a multicurrency overdraft facility with HSBC, the purpose of which is to assist in financing the Company’s operations; • a multicurrency credit facility with The Bank of Nova Scotia, the purpose of which is to assist in financing the Company’s operations; and • index put options, which are used to protect the capital value of the portfolio. • forward currency contracts, the purpose of which is to manage the currency risk arising from the Company’s investment activities. • contract for differences, which are used for the purpose to gain further exposure to Asian markets. (a) Market risk Market risk comprises three elements – foreign currency risk, interest rate risk and market price risk. Information to enable an evaluation of the nature and extent of these three elements of market risk is given in parts (i) to (iii) of this note, together with sensitivity analyses where appropriate. (i) Foreign currency risk The majority of the Company’s assets, liabilities and income are denominated in currencies other than sterling, which is the Company’s functional currency and the presentational currency of the financial statements. As a result, movements in exchange rates will affect the sterling value of those items. Section 5: Financials 97 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Management of foreign currency risk The Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board. The Board has authorised the use of derivative instruments to hedge currency exposure as part of the investment strategy to protect the capital value of the portfolio, or for efficient portfolio management. Foreign currency exposure The fair value of the Company’s monetary items that have foreign currency exposure at 31 December are shown below. The Company’s investments, CFDs and index put options (which are not monetary items) have been included separately in the analysis so as to show the overall level of exposure. 2024 Hong Kong Dollars £’000 US Dollars £’000 Taiwan Dollars £’000 South Korean Won £’000 Indian Rupees £’000 Singapore Dollars £’000 Chinese Yuan £’000 Australian Dollars £’000 Vietnam Dong £’000 Other £’000 Total £’000 Current assets 11 1,495 207 69 2 1 – 8 224 1 2,018 Derivative instruments held at fair value through profit or loss – forward currency contracts – 22,216 – – – – (21,758) – – – 458 Current liabilities – (23,107) – – – – – – – – (23,107) Foreign currency exposure on net monetary items 11 604 207 69 2 1 (21,758) 8 224 1 (20,631) Investments held at fair value through profit or loss 1 96,283 15,860 122,237 16,603 53,292 38,670 8,136 79,614 13,376 62,861 506,932 Derivative instruments held at fair value through profit or loss – index put options and CFDs 1 – 322 – – – – – – – 322 Total net foreign currency exposure 96,294 16,786 122,444 16,672 53,294 38,671 (13,622) 79,622 13,600 62,862 486,623 2023 Hong Kong Dollars £’000 US Dollars £’000 Taiwan Dollars £’000 South Korean Won £’000 Indian Rupees £’000 Singapore Dollars £’000 Chinese Yuan £’000 Australian Dollars £’000 Vietnam Dong £’000 Other £’000 Total £’000 Current assets 11 1,256 302 137 86 1 – 9 41 123 1,966 Current liabilities – (38,327) – – – – – – – (122) (38,449) Non current liabilities – – – – (586) – – – – – (586) Foreign currency exposure on net monetary items 11 (37,071) 302 137 (500) 1 – 9 41 1 (37,069) Investments held at fair value through profit or loss 1 76,860 23,415 112,071 35,009 46,379 38,300 – 80,256 6,589 55,733 474,612 Derivative instruments held at fair value through profit or loss – index put options – – 178 – – – – – – – 178 Total net foreign currency exposure 76,871 (13,656) 112,551 35,146 45,879 38,301 – 80,265 6,630 55,734 437,721 1 Excluding any stocks or CFDs priced in sterling. The above year end amounts are broadly representative of the exposure to foreign currency risk during the current and prior year. Foreign currency sensitivity The following tables illustrate the sensitivity of net profit for the year and net assets with regard to the Company’s monetary financial assets and financial liabilities and exchange rates. The sensitivity analysis is based on the Company’s monetary currency financial instruments held at each balance sheet date and assumes a 10% (2023: 10%) appreciation or depreciation in sterling against the currencies to which the Company is exposed, which is considered to be a reasonable illustration based on the volatility of exchange rates during the year. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 98 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 If sterling had weakened by 10% this would have had the following effect: Income Statement – return after taxation 2024 £’000 2023 £’000 Revenue return 1,090 1,212 Capital return (2,199) (3,802) Total return after taxation (1,109) (2,590) Net assets (1,109) (2,590) Conversely if sterling had strengthened by 10% this would have had the following effect: Income Statement – return after taxation 2024 £’000 2023 £’000 Revenue return (1,090) (1,212) Capital return 2,199 3,802 Total return after taxation 1,109 2,590 Net assets 1,109 2,590 In the opinion of the Directors, the above sensitivity analysis with respect to monetary financial assets and liabilities is broadly representative of the whole of the current and comparative year. The sensitivity with regard to the Company’s investments, and any derivative instruments held, to changes in foreign currency exchange rates is subsumed into market price risk sensitivity below. (ii) Interest rate risk Interest rate movements may affect the level of income receivable on cash deposits and the interest payable on variable rate borrowings when rates are re-set. Management of interest rate risk Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The Company may use gearing to enhance performance (including the use of CFDs). The Board would not expect net gearing to exceed 30% where gearing is defined as borrowings including CFDs used for investment purposes, less cash, expressed as a percentage of net assets. Interest rate exposure The possible effects on cash flows that could arise as a result of changes in interest rates are taken into account when the Company draws on its overdraft facility or its credit facility. The exposure of financial assets and financial liabilities to floating interest rates, giving cash flow interest rate risk when rates are re-set, is shown below: Exposure to floating interest rates 2024 £’000 2023 £’000 Cash and cash equivalents 1,743 2,527 Bank overdraft (4,534) – Amounts held at derivative clearing houses and brokers (240) – Creditors: amounts falling due within one year: Bank loan (22,357) (37,339) Total exposure (25,388) (34,812) Interest receivable on cash balances, or paid on overdrafts, is at a margin below or above the applicable risk free reference rates, respectively (2023: same). During the year, the Company amended and restated its £75 million multicurrency credit facility with The Bank of Nova Scotia, London Branch, to 17 July 2025. Amounts are normally drawn down on the facility for one month periods. Interest is payable at a rate based on the secured overnight financing rate, plus a margin, plus the credit adjustment spread. At 31 December 2024, the Company had drawn down USD28million (£22.4million) at an interest rate of 5.36%, repayable on 31 January 2025. At 31 December 2023, the Company had drawn down USD47.6 million (£37.3million) at an interest rate of 6.61%. Section 5: Financials 99 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 The above year end amounts are not representative of the exposure to interest rates during the year as the level of cash balances and drawings on the credit facility have fluctuated. The maximum and minimum net debt balances during the year are as follows: 2024 £’000 2023 £’000 Maximum debit interest rate exposure during the year – net debt (40,790) (47,462) Minimum debit interest rate exposure during the year – net debt (21,641) (22,561) Interest rate sensitivity The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 1.5% (2023: 1.5%) increase or decrease in interest rates in regards to the Company’s monetary financial assets and financial liabilities. This level of change is considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the Company’s monetary financial instruments held at the balance sheet date with all other variables held constant. Income Statement – return after taxation 2024 1.5% increase in rate £’000 2024 1.5% decrease in rate £’000 2023 1.5% increase in rate £’000 2023 1.5% decrease in rate £’000 Revenue return (76) 76 (102) 102 Capital return (305) 305 (420) 420 Total return after taxation (381) 381 (522) 522 Net assets (381) 381 (522) 522 In the opinion of the Directors, this sensitivity analysis may not be representative of the Company’s future exposure to interest rate changes due to fluctuations in the level of cash balances and drawings on the credit facility. (iii) Market price risk Market price risk includes changes in market prices, other than those arising from interest rate risk, which may affect the value of equity investments. Management of market price risk The Board meets on at least four occasions each year to consider the asset allocation of the portfolio and the risk associated with particular countries and industry sectors. The Board has authorised the Manager to enter derivative transactions as a means of seeking capital preservation, subject to limits on the percentage of the portfolio hedged and the duration of derivatives used. Market price risk exposure The Company’s total exposure to changes in market prices at 31 December comprises the following investments: 2024 £’000 2023 £’000 Investments held at fair value through profit or loss 506,932 484,012 Derivative financial instruments held at fair value through profit or loss: Index put options 505 178 CFD (224) – 507,213 484,190 The above data is broadly representative of the exposure to market price risk during the year. Concentration of exposure to market price risk An analysis of the Company’s investments is given on pages 34 to 36. This shows that the portfolio mainly comprises investments quoted on Asian stock markets, index put options and CFDs. Accordingly there is a concentration of exposure to that region. However it should be noted that an investment may not be entirely exposed to the economic conditions in its country of classification. Market price risk sensitivity The following table illustrates the sensitivity of net return after taxation for the year and net assets to an increase or decrease of 10% (2023: 10%) in the fair values of the Company’s investments. This level of change is considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the Company’s investments, adjusting for the hedging effect of the index put options and including the resulting effect on the management fee, but with all other variables held constant. The sensitivity analysis also takes account of the “beta coefficient” of the portfolio. This is a measure of the volatility of the portfolio compared with the systemic risk of the entire market. As a result, the percentages in the table below represent a 8.67% (2023: 8.05%) increase in fair value and a 8.67% (2023: 7.87%) decrease in fair value. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 100 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Income Statement – return after taxation 2024 10% increase in fair value £’000 2024 10% decrease in fair value £’000 2023 10% increase in fair value £’000 2023 10% decrease in fair value £’000 Revenue return (71) 71 (63) 62 Capital return 43,719 (43,719) 38,774 (37,906) 43,648 (43,648) 38,711 (37,844) Percentage change in net asset value 9.2 (9.2) 8.6 (8.4) (b) Liquidity risk This is the risk that the Company will encounter difficulty in meeting its obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Management of the risk Liquidity risk is not significant as the Company’s assets comprise mainly readily realisable securities, which can be sold to meet funding requirements if necessary. Short-term flexibility is achieved through the use of overdraft and credit facilities. Liquidity risk exposure Contractual maturities of financial liabilities, based on the earliest date on which payment can be required are as follows: 2024 Three months or less £’000 2023 Three months or less £’000 Creditors: amounts falling due within one year Bank loan – including interest 22,459 37,546 Bank overdraft 4,534 – Amounts held at derivative clearing houses and brokers 240 – Derivative financial instruments held at fair value through profit or loss – CFD liabilities 254 – Securities purchased awaiting settlement – 122 Amounts payable on settlement of derivatives 743 – Repurchase of ordinary shares into treasury awaiting settlement 255 – Other creditors and accruals 3,961 1,208 32,446 38,876 (c) Credit risk Credit risk is the risk that the failure of the counterparty to a transaction to discharge its obligations under that transaction could result in loss to the Company. Management of credit risk This risk is not significant and is managed as follows: Portfolio dealing The Company invests almost entirely in markets that operate a “Delivery Versus Payment” settlement process which mitigates the risk of losing the principal of a trade during settlement. This approach extends to various investment instruments, while CFDs are settled through cash payments based on the difference between the opening and closing prices, rather than physical delivery of the underlying assets. The Manager continuously monitors dealing activity to ensure best execution, which involves measuring various indicators including the quality of trade settlement and incidence of failed trades. Counterparties must be pre-approved by the Manager’s credit committee. In relation to CFDs, counterparty risk is limited to the profit on a contract, not the notional value. Exposure to the custodian The custodian of the Company’s assets is HSBC Bank plc which has long-term credit ratings of AA- with Fitch and Aa3 with Moody’s. The Company’s investments are held in accounts which are segregated from the custodian’s own trading assets. If the custodian were to become insolvent, the Company’s right of ownership of its investments is clear and they are therefore protected. However the Company’s cash balances are all deposited with the custodian as banker and held on the custodian’s balance sheet. Accordingly, in accordance with usual banking practice, the Company will rank as a general creditor to the custodian in respect of cash balances. Section 5: Financials 101 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Credit risk exposure The amounts shown in the balance sheet under debtors, derivative financial instruments held at fair value through profit or loss and cash at bank and in hand represent the maximum exposure to credit risk at the current and comparative year ends. No debtors are past their due date and none have been provided for. There has been no stock lending during the year, or prior year. (d) Fair values of financial assets and financial liabilities All financial assets and liabilities are either carried in the balance sheet at fair value, or the balance sheet amount is a reasonable approximation of fair value. 23. Capital management policies and procedures The Company’s capital is represented by its net assets and borrowings, which are managed to achieve the Company’s investment objective, as set out on page 45. The Company’s capital management objectives are to ensure that it will continue as a going concern and to maximise the capital return to shareholders through an appropriate level of gearing. The Company has overdraft and credit facilities in place which may be used to maximise the return to shareholders through an appropriate level of gearing. The Company uses CFDs as a cost effective and flexible form of borrowing. The Board’s policy is to limit the level of net gearing to 30%, where net gearing is defined as borrowings including CFDs used for investment purposes, less cash, expressed as a percentage of net assets. 2024 £’000 2023 £’000 Borrowings used for investment purposes, less cash (£,000) 1 40,695 34,812 Net assets (£,000) 476,076 448,484 Net gearing (%) 8.5 7.8 1 Included within borrowings for 2024 is an amount of £15,307,000, being the total market exposure on the CFDs held at the year end (2023: nil). The Board, with the assistance of the Manager, monitors and reviews the broad structure of the Company’s capital on an ongoing basis. This review includes: • the planned level of gearing, which takes into account the Manager’s views on the market; • the need to buy back the Company’s own shares for cancellation or to hold in treasury, which takes into account the share price discount; • the opportunities for issues of new shares or to reissue shares out of treasury; and • the amount of dividend to be paid, in excess of that which is required to be distributed. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 5: Financials 102 Job No: 53868 Proof Event: 38 Black Line Level: 12 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Section 5: Financials 103 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 National Museum of Natural History, Manila, Philippines Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 2 Black Line Level: 0 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Sydney Opera House, Sydney, Australia Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 6: Other Information (Unaudited) 104 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Section 6: Other Information (Unaudited) Annual General Meeting – Recommendations 106 Notice of Annual General Meeting 107 Explanatory Notes to the Notice of Meeting 109 Alternative Performance Measures and Glossary 111 Information about the Company 113 Risk Disclosures 115 105105105 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 105 Section 6: Other Information (Unaudited) Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Annual General Meeting – Recommendations The Annual General Meeting (“AGM”) of the Company will be held on Thursday, 24 April 2025 at 1.00 p.m. The formal Notice of Meeting is set out on page 107. The following information is important and requires your immediate attention. If you are in any doubt about the action you should take, you should consult an independent financial adviser, authorised under the Financial Services and Markets Act 2000. If you have sold or transferred all of your ordinary shares in the Company, please forward this document with its accompanying form of proxy at once to the purchaser or transferee, or to the stockbroker, bank, or other agent through whom the sale or transfer was effected, for onward transmission to the purchaser or transferee. Ordinary business Resolutions 1 to 11 are all ordinary resolutions. Resolution 1 is a required resolution. Resolution 2 invites shareholders to approve the final dividend. Resolution 3 concerns the Directors’ Remuneration Report, on pages 72 to 74. Resolutions 4 to 7 invite shareholders to elect, or re-elect, each of the Directors for another year, following the recommendations of the Nomination Committee, set out on pages 70 and 71 (the Directors’ biographies are set out on pages 60 and 61). Resolutions 8 and 9 concern the re-appointment and remuneration of the Company’s auditor, discussed in the Audit and Risk Committee Report on pages 66 to 68. Special business Resolution 10: continuation (ordinary resolution) In accordance with the Company’s Articles of Association, the Directors are required to put forward a proposal for the continuation of the Company to shareholders at three yearly intervals. The Board considers that the long-term investment objectives of the Company remain appropriate and that the current Manager has delivered superior returns over the last three years and remains well placed to continue to do so over the long-term. An ordinary resolution has therefore been proposed at the AGM to agree that the Company should continue as an investment trust for a further three year period. Resolution 11: Directors’ authority to allot shares (ordinary resolution) and resolution 12: power to disapply pre‑emption rights (special resolution) The Directors are seeking authority to allot a limited number of unissued ordinary shares for cash without first offering them to existing shareholders in accordance with statutory pre-emption procedures. Appropriate resolutions will be proposed at the forthcoming AGM and are set out in full in the Notice of AGM. An ordinary resolution will be proposed to authorise the Directors to allot shares up to a maximum aggregate nominal amount of £467,622 (being 10% of the issued share capital (excluding any shares held in treasury) as at 18 March 2025). A special resolution will be proposed to authorise the Directors to allot shares up to a maximum aggregate nominal amount of £467,622 (being 10% of the issued share capital as at 18 March 2025 on a non pre-emptive basis. This authority includes shares that the Company sells or transfers that have been held in treasury. The Directors do not intend to allot ordinary shares or sell treasury shares, on a non-pre-emptive basis, pursuant to this authority other than to take advantage of opportunities in the market as they arise and only if they believe it to be advantageous to the Company as a whole. Shares issued or treasury shares reissued, under this authority, will be at a price that is equal to or greater than the Company’s NAV per share, plus any applicable costs, as at the latest practicable date before the allotment of such shares. If approved, both of these authorities will expire at the conclusion of the AGM in 2026 unless renewed, varied, or revoked earlier. Resolution 13: authority to make market purchases of the Company’s own shares (special resolution) At the AGM held on 24 April 2024, the Company was granted authority to make market purchases of up to 14,446,492 ordinary shares of 5p each for cancellation or holding in treasury. 2,437,629 shares have been bought back under this authority and the Company therefore has remaining authority to purchase up to 12,008,863 ordinary shares. This authority will expire at the forthcoming AGM. The Directors believe it is in the best interests of the Company and its shareholders to have a general authority for the Company to buy back its ordinary shares in the market as they keep under review the share price discount to NAV. A special resolution will be proposed at the forthcoming AGM to give the Company authority to make market purchases of up to 14.99% of the ordinary shares in issue as at 18 March 2025 (excluding treasury shares). The Directors will exercise this authority to buy back shares only when the share price is at a discount to the Company’s NAV and only if the Directors consider that any purchase would be for the benefit of the Company and its shareholders, taking into account relevant factors and circumstances at the time. Any shares so purchased would be cancelled or held in treasury for potential reissue. If renewed, this authority will lapse at the conclusion of the AGM in 2026 unless renewed, varied or revoked earlier. Resolution 14: notice period for general meetings (special resolution) Resolution 14 set out in the Notice of AGM is a special resolution and will, if passed, allow the Company to hold general meetings (other than annual general meetings) on a minimum notice period of 14 clear days, rather than 21 clear days as required by the Companies Act 2006. The approval will be effective until the Company’s next AGM to be held in 2026. The Directors will only call general meetings on 14 clear days’ notice when they consider it to be in the best interests of the Company’s shareholders and will only do so if the Company offers facilities for all shareholders to vote by electronic means and when the matter needs to be dealt with expediently. Recommendations The Board considers that the resolutions relating to the above items of business are in the best interests of shareholders as a whole. Accordingly, the Board unanimously recommends to shareholders that they vote in favour of the resolutions to be proposed at the forthcoming AGM, as they intend to do in respect of their own beneficial holdings. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 6: Other Information (Unaudited) 106 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Notice of Annual General Meeting Notice is hereby given that the thirty-seventh Annual General Meeting of Schroder Asian Total Return Investment Company plc will be held on Thursday, 24 April 2025 at 1.00 p.m. at 1 London Wall Place, London EC2Y 5AU to consider the following resolutions, of which resolutions 1 to 11 will be proposed as ordinary resolutions, and resolutions 12, 13 and 14 will be proposed as special resolutions: Ordinary Business 1. To receive the Directors’ Report and the audited financial statements for the year ended 31 December 2024. 2. To approve a final dividend of 11.50 pence per share for the year ended 31 December 2024. 3. To approve the Directors’ Remuneration Report for the year ended 31 December 2024. 4. To elect Marion Sears as a Director of the Company. 5. To approve the re-election of Sarah MacAulay as a Director of the Company. 6. To approve the re-election of Andrew Cainey as a Director of the Company. 7. To approve the re-election of Jasper Judd as a Director of the Company. 8. To re-appoint Ernst & Young LLP as auditor to the Company. 9. To authorise the Directors to determine the remuneration of Ernst & Young LLP as auditor to the Company. Special Business 10. To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “THAT in accordance with the Articles of Association, the Company should continue as an investment trust for a further three year period.” 11. To consider, and if thought fit, pass the following resolution as an ordinary resolution: “THAT in substitution for all existing authorities the Directors be generally and unconditionally authorised pursuant to section 551 of the Companies Act 2006 (the “Act”) to exercise all the powers of the Company to allot relevant securities (within the meaning of section 551 of the Act) up to an aggregate nominal amount of £467,622 (being 10% of the issued ordinary share capital at 18 March 2025) for a period expiring (unless previously renewed, varied or revoked by the Company in general meeting) at the conclusion of the Annual General Meeting of the Company in 2026, but that the Company may make an offer or agreement which would or might require relevant securities to be allotted after expiry of this authority and the Board may allot relevant securities in pursuance of that offer or agreement.” 12. To consider and, if thought fit, to pass the following resolution as a special resolution: “THAT, subject to the passing of Resolution 11 set out above, the Directors be and are hereby empowered, pursuant to Section 571 of the Act, to allot equity securities (including any shares held in treasury) (as defined in section 560(1) of the Act) pursuant to the authority given in accordance with section 551 of the Act by the said Resolution 11 and/or where such allotment constitutes an allotment of equity securities by virtue of section 560(2) of the Act as if Section 561(1) of the Act did not apply to any such allotment, provided that this power shall be limited to the allotment of equity securities up to an aggregate nominal amount of £467,622 (representing 10% of the aggregate nominal amount of the share capital in issue at 18 March 2025); and where equity securities are issued pursuant to this power they will only be issued at a price which is equal or greater than the Company’s NAV per share as at the latest practicable date before the allotment; and provided that this power shall expire at the conclusion of the next Annual General Meeting of the Company but so that this power shall enable the Company to make offers or agreements before such expiry which would or might require equity securities to be allotted after such expiry.” 13. To consider and, if thought fit, to pass the following resolution as a special resolution: “THAT the Company be and is hereby generally and unconditionally authorised in accordance with Section 701 of the Companies Act 2006 (the “Act”) to make market purchases (within the meaning of Section 693 of the Act) of ordinary shares of 5p each in the capital of the Company (“Share”) at whatever discount the prevailing market price represents to the prevailing net asset value per Share provided that: (a) the maximum number of Shares which may be purchased is 14,019,315, representing 14.99% of the Company’s issued ordinary share capital as at 18 March 2025 (excluding treasury shares); (b) the maximum price (exclusive of expenses) which may be paid for a Share shall not exceed the higher of; i) 105% of the average of the middle market quotations for the Shares as taken from the London Stock Exchange Daily Official List for the five business days preceding the date of purchase; and ii) the higher of the last independent bid and the highest current independent bid on the London Stock Exchange; (c) the minimum price (exclusive of expenses) which may be paid for a Share shall be 5p, being the nominal value per Share; (d) this authority hereby conferred shall expire at the conclusion of the next Annual General Meeting of the Company in 2026 (unless previously renewed, varied or revoked by the Company prior to such date); (e) the Company may make a contract to purchase Shares under the authority hereby conferred which will or may be executed wholly or partly after the expiration of such authority and may make a purchase of Shares pursuant to any such contract; and (f) any Shares so purchased will be cancelled or held in treasury.” Section 6: Other Information (Unaudited) 107 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 14. To consider and, if thought fit, to pass the following resolution as a special resolution: “That a general meeting, other than an Annual General Meeting, may be called on not less than 14 clear days; notice.” By order of the Board For and on behalf of Schroder Investment Management Limited Company Secretary 18 March 2025 Registered Office: 1 London Wall Place, London EC2Y 5AU Registered Number: 02153093 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 6: Other Information (Unaudited) 108 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Explanatory Notes to the Notice of Meeting 1. Ordinary shareholders are entitled to attend, ask questions and vote at the meeting and to appoint one or more proxies, who need not be a shareholder, as their proxy to exercise all or any of their rights to attend, speak and vote on their behalf at the meeting. A proxy form is attached. If you wish to appoint a person other than the Chair as your proxy, please insert the name of your chosen proxy holder in the space provided at the top of the form. If the proxy is being appointed in relation to less than your full voting entitlement, please enter in the box next to the proxy holder’s name the number of shares in relation to which they are authorised to act as your proxy. If left blank your proxy will be deemed to be authorised in respect of your full voting entitlement (or if this proxy form has been issued in respect of a designated account for a shareholder, the full voting entitlement for that designated account). Additional proxy forms can be obtained by contacting the Company’s registrars, Equiniti Limited, on 0800-032-0641. If calling from outside the UK, please ensure the country code is used, or you may photocopy the attached proxy form. Please indicate in the box next to the proxy holder’s name the number of shares in relation to which they are authorised to act as your proxy. Please also indicate by ticking the box provided if the proxy instruction is one of multiple instructions being given. Completion and return of a form of proxy will not preclude a member from attending the Annual General Meeting and voting in person. On a vote by show of hands, every ordinary shareholder who is present in person has one vote and every duly appointed proxy who is present has one vote. On a poll vote, every ordinary shareholder who is present in person or by way of a proxy has one vote for every share of which he/she is a holder. Voting will be by poll. The “Vote Withheld” option on the proxy form is provided to enable you to abstain on any particular resolution. However it should be noted that a “Vote Withheld” is not a vote in law and will not be counted in the calculation of the proportion of the votes ‘For’ and ‘Against’ a resolution. A proxy form must be signed and dated by the shareholder or his or her attorney duly authorised in writing. In the case of joint holdings, any one holder may sign this form. The vote of the senior joint holder who tenders a vote, whether in person or by proxy, will be accepted to the exclusion of the votes of the other joint holder and for this purpose seniority will be determined by the order in which the names appear on the Register of Members in respect of the joint holding. To be valid, proxy form(s) must be completed and returned to the Company’s registrars, Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA, in the enclosed envelope together with any power of attorney or other authority under which it is signed or a copy of such authority certified notarially, to arrive no later than 48 hours before the time fixed for the meeting, or an adjourned meeting. It is possible for you to submit your proxy votes online by going to Equiniti’s Shareview website, www.shareview.co.uk, and logging in to your Shareview Portfolio. Once you have logged in, simply click ‘View’ on the ‘My Investments’ page and then click on the link to vote and follow the on-screen instructions. If you have not yet registered for a Shareview Portfolio, go to www.shareview.co.uk and enter the requested information. It is important that you register for a Shareview Portfolio with enough time to complete the registration and authentication processes. Please note that to be valid, your proxy instructions must be received by Equiniti no later than 1.00 p.m on 22 April 2025. If you have any difficulties with the online voting, you should contact the shareholder helpline on 0800-032-0641. If an ordinary shareholder submits more than one valid proxy appointment, the appointment received last before the latest time for receipt of proxies will take precedence. Shareholders may not use any electronic address provided either in this Notice of Annual General Meeting or any related documents to communicate with the Company for any purposes other than expressly stated. Representatives of shareholders that are corporations will have to produce evidence of their proper appointment when attending the AGM. 2. Any person to whom this notice is sent who is a person nominated under section 146 of the Companies Act 2006 to enjoy information rights (a “Nominated Person”) may, under an agreement between him or her and the shareholder by whom he or she was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for the Annual General Meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he or she may, under any such agreement, have a right to give instructions to the shareholder as to the exercise of voting rights. The statement of the rights of ordinary shareholders in relation to the appointment of proxies in note 1 above does not apply to Nominated Persons. The rights described in that note can only be exercised by ordinary shareholders of the Company. 3. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company has specified that only those shareholders registered in the Register of Members of the Company at 6.30 p.m. on 22 April 2025, or 6.30 p.m. two days prior to the date of an adjourned meeting, shall be entitled to attend and vote at the meeting in respect of the number of shares registered in their name at that time. Changes to the Register of Members after 6.30 p.m. on 22 April 2025 shall be disregarded in determining the right of any person to attend and vote at the meeting. 4. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so by using the procedures described in the CREST manual. The CREST manual can be viewed at www.euroclear. com. A CREST message appointing a proxy (a “CREST proxy instruction”) regardless of whether it constitutes the appointment of a proxy or an amendment to the instruction previously given to a previously appointed proxy must, in order to be valid, be transmitted so as to be received by the issuer’s agent (ID RA19) by the latest time for receipt of proxy appointments. If you are an institutional investor, you may be able to appoint a proxy electronically via the Proxymity platform, a process which has been agreed by the Company and approved by the registrar. For further information regarding Proxymity, please go to www.proxymity.io. Your proxy must be lodged by 1.00 pm on 22 April 2025 in order to be considered valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s associated Section 6: Other Information (Unaudited) 109 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 terms and conditions. It is important that you read these carefully as you will be bound by them, and they will govern the electronic appointment of your proxy. 5. Copies of the terms of appointment of the non-executive Directors and a statement of all transactions of each Director and of their family interests in the shares of the Company, will be available for inspection by any member of the Company at the registered office of the Company during normal business hours on any weekday (English public holidays excepted) and at the Annual General Meeting by any attendee, for at least 15 minutes prior to, and during, the Annual General Meeting. None of the Directors has a contract of service with the Company. 6. The biographies of the Directors offering themselves for election and re-election are set out on pages 60 and 61 of the Company’s Annual Report and Financial Statements for the year ended 31 December 2024. 7. As at 18 March 2025, 109,114,651 ordinary shares of 5 pence each were in issue (of which 15,590,197 ordinary shares were held in treasury). Therefore the total number of voting rights of the Company as at 18 March 2025 was 93,524,454. 8. A copy of this Notice of Meeting, which includes details of shareholder voting rights, together with any other information as required under Section 311A of the Companies Act 2006, is available on the Company’s web pages, www.schroders.co.uk/satric. 9. Pursuant to Section 319A of the Companies Act 2006, the Company must cause to be answered at the Annual General Meeting any question relating to the business being dealt with at the Annual General Meeting which is put by a member attending the meeting, except in certain circumstances, including if it is undesirable in the interests of the Company or the good order of the meeting that the question be answered or if to do so would involve the disclosure of confidential information. 10. Members satisfying the thresholds in section 527 of the Companies Act 2006 can require the Company to publish a statement on its web pages setting out any matter relating to: (a) the audit of the Company’s financial statements (including the auditor’s report and the conduct of the audit) that are to be laid before the Meeting; or (b) any circumstance connected with an auditor of the Company ceasing to hold office since the last AGM, that the members propose to raise at the Meeting. The Company cannot require the members requesting the publication to pay its expenses. Any statement placed on the web pages must also be sent to the Company’s auditors no later than the time it makes its statement available on the website. The business which may be dealt with at the meeting includes any statement that the Company has been required to publish on its web pages. 11. The Company’s privacy policy is available on its web pages: www.schroders.co.uk/satric. Shareholders can contact Equiniti for details of how Equiniti processes their personal information as part of the Annual General Meeting. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 6: Other Information (Unaudited) 110 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Alternative Performance Measures and Glossary Net asset value (“NAV”) per share The NAV per share of 509.04p (2023: 461.24p) represents the net assets attributable to equity shareholders of £476,076,000 (2023: £448,484,000) divided by the number of shares in issue of 93,524,454 (2023: 97,234,120). The change in the NAV amounted to +10.4% (2023: +6.1%) over the year. However, this performance measure excludes the positive impact of dividends paid out by the Company during the year. When the dividend is factored into the calculation, the resulting performance measure is termed the “total return”. Total return calculations and definitions are given below. Total return The combined effect of any dividends paid, together with the rise or fall in the share price or NAV per share. Total return statistics enable the investor to make performance comparisons between investment companies with different dividend policies. Any dividends received by a shareholder are assumed to have been reinvested in either the assets of the Company at its NAV per share at the time the shares were quoted ex-dividend (to calculate the NAV per share total return) or in additional shares of the Company (to calculate the share price total return). The share price total return for the year ended 31 December 2024 is calculated as follows: Opening Share price at 31/12/23 440.00p Opening Share price at 31/12/24 483.00p Dividend received XD date Share price on XD date Factor 11.50p 11/4/24 444.00p 1.0259 Share price total return, being the closing share price, multiplied by the factor, expressed as a percentage change in the opening share price: +12.6% The share price total return for the year ended 31 December 2023 is calculated as follows: Opening Share price at 31/12/22 409.50p Opening Share price at 31/12/23 440.00p Dividend received XD date Share price on XD date Factor 11.00p 6/4/23 409.00p 1.0269 Share price total return, being the closing share price, multiplied by the factor, expressed as a percentage change in the opening share price: +10.3% The terms and performance measures below are those commonly used by investment companies to assess values, investment performance and operating costs. Numerical calculations are given where relevant. Some of the financial measures below are classified Alternative performance measures as defined by the European Securities and Markets Authority. Under this definition, alternative performance measures include a financial measure of historical financial performance or financial position, other than a financial measure defined or specified in the applicable financial reporting framework. Alternative performance measures have been marked with an . The NAV total return for the year ended 31 December 2024 is calculated as follows: Opening NAV at 31/12/23 461.24p Closing NAV at 31/12/24 509.04p Dividend received XD date NAV on XD date Factor 11.50p 11/4/24 482.24p 1.0238 NAV total return, being the closing NAV, multiplied by the factor, expressed as a percentage change in the opening NAV: +13.0% The NAV total return for the year ended 31 December 2023 is calculated as follows: Opening NAV at 31/12/22 434.60p Closing NAV AT 31/12/23 461.24p Dividend received XD date NAV on XD date Factor 11.00p 6/4/23 438.71p 1.0251 NAV Total return, being the closing NAV, multiplied by the factor, expressed as a percentage change in the opening NAV: +8.8% Section 6: Other Information (Unaudited) 111 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Reference Index This is the measure against which the Company compares its performance. With effect from 15 March 2013, “the Reference Index” has been the MSCI Asia Pacific ex-Japan Index (with net income reinvested), sterling adjusted. Prior to that date it was the MSCI AC Asia Pacific ex-Japan Index (with gross income reinvested), sterling adjusted. 31 December 2024 2023 MSCI AC Asia Pacific Ex-Japan Index (with net income reinvested), sterling adjusted. (the “Reference Index”): 12.1% 1.3% Source: Thomson Reuters. Discount/premium The amount by which the share price of an investment trust is lower (discount) or higher (premium) than the NAV per share. If the shares are trading at a discount, investors would be paying less than the value attributable to the shares by reference to the underlying assets. A premium or discount is generally the consequence of supply and demand for the shares on the stock market. The discount or premium is expressed as a percentage of the NAV per share. The discount at the year end amounted to 5.1% (2023: 4.6%), as the closing share price at 483.00p (2023:440.00p) was 5.1% ( 2023: 4.6%) lower than the closing NAV of 509.04p (2023: 461.24p) Contract for Difference (CFD) A financial derivative between a buyer and a seller, which specifies that the buyer is required to pay the seller the difference between the asset’s current value and its value at the time the contract was initiated. CFDs enable the Company to benefit from price fluctuations without actually owning the underlying assets and is an alternative to borrowing. Gearing The net gearing percentage reflects the amount of borrowings (i.e. bank loans or overdrafts) which the Company has drawn down and invested in the market. This figure is indicative of the extra amount by which shareholders’ funds would move if the Company’s investments were to rise or fall. This represents borrowings including CFDs used for investment purposes, less cash, expressed as a percentage of net assets. If the figure so calculated is negative, this is shown as a “Net cash” position. The net gearing figure at the year end is calculated as follows: 2024 2023 Borrowings used for investment purposes, less cash (£'000) 40,695 34,812 Net assets (£,000) 476,076 448,484 Net gearing (%) 8.5 7.8 Ongoing charges Ongoing charges is a measure of the ongoing operating costs of the Company. It is calculated in accordance with the AIC’s recommended methodology and represents the management fee and all other operating expenses excluding finance costs, transactions costs and any performance fee payable, expressed as a percentage of the average daily net asset values during the year, as follows: 2024 2023 Management fee and all other operating expenses excluding finance costs, transaction costs and any performance fee payable (£’000) 4,201 3,913 Average daily net asset values during the year (£’000) 464,355 450,076 Ongoing Charges Ratio (%) 0.90 0.87 Leverage For the purpose of the UK AIFM Directive, leverage is any method which increases the Company’s exposure to financial risk, including the borrowing of cash and the use of derivatives. It is expressed as the ratio of the Company’s exposure to its NAV and is required to be calculated both on a “Gross” and a “Commitment” method. Under the Gross method, exposure represents the sum of the absolute values of all positions, so as to give an indication of overall exposure. Under the Commitment method, exposure is calculated in a similar way, but after netting off hedges which satisfy certain strict criteria. The Company’s leverage policy and details of its leverage ratio calculation and exposure limits as required by the AIFMD are published on the Company’s web pages and within this report. The Company is also required to periodically publish its actual leverage exposures. As at 31 December 2024 these were: % of net asset value Maximum Actual Gross method 250.00 126.70 Commitment method 200.00 125.30 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 6: Other Information (Unaudited) 112 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Information about the Company Web pages and share price information The Company has dedicated web pages, which may be found at www.schroders.co.uk/satric. The web pages are the Company’s primary method of electronic communication with shareholders. They contain details of the Company’s ordinary share price and copies of the Annual Report and Financial Statements and other documents published by the Company as well as information on the Directors, terms of reference of Committees and other governance arrangements. In addition, the web pages contain links to announcements made by the Company to the market and Schroders’ website. The Company releases its NAV per share on both a cum and ex- income basis to the market on a daily basis. Share price information may also be found in the Financial Times and on the Company’s web pages. The Association of Investment Companies The Company is a member of The Association of Investment Companies. Further information on the Association can be found on its website, www.theaic.co.uk. Individual Savings Account (ISA) status The Company’s shares are eligible for stocks and shares ISAs. Non-Mainstream Pooled Investments status The Company currently conducts its affairs so that its shares can be recommended by independent financial advisers (IFAs) to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The Company’s shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are shares in an investment trust. Financial calendar Annual General Meeting April Final dividend paid May Half year results announced September Financial year end 31 December Annual results announced March Alternative Investment Fund Managers Directive (AIFMD) disclosures The AIFM Directive, as transposed into the FCA Handbook in the UK, requires that certain pre-investment information be made available to investors in Alternative Investment Funds (such as the Company) and also that certain regular and periodic disclosures are made. This information and these disclosures may be found either below, elsewhere in this Annual Report, or in the Company’s AIFM Directive information disclosure document published on the Company’s web pages. Illiquid assets As at the date of this report, none of the Company’s assets are subject to special arrangements arising from their illiquid nature. Remuneration disclosures Quantitative remuneration disclosures to be made in this annual report in accordance with FCA Handbook rule FUND3.3.5 may be found in the Company’s AIFMD information disclosure document published on the Company’s web pages. Publication of Key Information Document (KID) by the AIFM Pursuant to the Packaged Retail and Insurance Based Investment Products Regulation, the Manager, as the Company’s AIFM, is required to publish a short KID on the Company. KIDs are designed to provide certain prescribed information to retail investors, including details of potential returns under different performance scenarios and a risk/reward indicator. The Company’s KID is available on its web pages. Dividends Paying dividends into a bank or building society account helps reduce the risk of fraud and will provide you with quicker access to your funds than payment by cheque. Applications for an electronic mandate can be made by contacting the registrar, Equiniti. This is the most secure and efficient method of payment and ensures that you receive any dividends promptly. If you do not have a UK bank or building society account, please contact Equiniti for details of their overseas payment service. Further information can be found at www.shareview.co.uk, including how to register with shareview Portfolio and manage your shareholding online. How to invest There are a number of ways to easily invest in the Company. The Manager has set these out at www.schroders.com/invest-in-a- trust/. Complaints The Company has adopted a policy on complaints and other shareholder communications which ensures that shareholder complaints and communications addressed to the Company Secretary, the Chair or the Board are, in each case, considered by the Chair and the Board. Section 6: Other Information (Unaudited) 113 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Directors Sarah MacAulay (Chair) Andrew Cainey Jasper Judd Marion Sears Registered Office 1 London Wall Place London EC2Y 5AU Advisers Alternative Investment Fund Manager (the “Manager” or “AIFM”) Schroder Unit Trusts Limited 1 London Wall Place London EC2Y 5AU Investment Manager and Company Secretary Schroder Investment Management Limited 1 London Wall Place London EC2Y 5AU Telephone: 020 7658 6189 [email protected] Depositary and custodian HSBC Bank plc 8 Canada Square London E14 5HQ Lending bank The Bank of Nova Scotia, London Branch 201 Bishopsgate 6th Floor London EC2M 3NS Corporate broker Winterflood Securities Limited Riverbank House 2 Swan Lane London EC4R 3GA Independent auditor Ernst & Young LLP 25 Churchill Place London E14 5EY Registrar Equiniti Limited Aspect House Spencer Road Lancing West Sussex BN99 6DA Shareholder Helpline: 0800-032-0641 Website: www.shareview.co.uk Calls to this number are free of charge from UK landlines. Communications with shareholders are mailed to the address held on the register. Any notifications and enquiries relating to shareholdings, including a change of address or other amendment should be directed to Equiniti Limited at the above address and telephone number above. Other information Company number 02153093. Shareholder enquiries General enquiries about the Company should be addressed to the Company Secretary at the address set out above. Dealing Codes ISIN: GB0008710799 SEDOL 0871079 Ticker: ATR Global Intermediary Identification Number (GIIN) TRPJG6.99999.SL.826 Legal Entity Identifier (LEI) 549300TQNNGZ0JHO2L78 Privacy notice The Company’s privacy notice is available on its web pages. Warning to shareholders Companies are aware that their shareholders have received unsolicited telephone calls or correspondence concerning investment matters. These are typically from overseas-based ‘brokers’ who target UK shareholders, offering to sell them what often turn out to be worthless or high risk shares or investments. These operations are commonly known as ‘boiler rooms’. These ‘brokers’ can be very persistent and extremely persuasive. Shareholders are advised to be wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports. If you receive any unsolicited investment advice: • Make sure you get the correct name of the person and organisation • Check that they are properly authorised by the FCA before getting involved by visiting register.fca.org.uk • Report the matter to the FCA by calling 0800 111 6768 or visiting fca.org.uk/consumers/report-scam-unauthorised-firm • Do not deal with any firm that you are unsure about If you deal with an unauthorised firm, you will not be eligible to receive payment under the Financial Services Compensation Scheme. The FCA provides a list of unauthorised firms of which it is aware, which can be accessed at fca.org.uk/consumers/ unauthorisedfirmsindividualslist. More detailed information on this or similar activity can be found on the FCA website at fca.org.uk/consumers/ protect-yourself-scams. Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Section 6: Other Information (Unaudited) 114 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Risk Disclosures Concentration risk The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the Company, both up or down. Counterparty risk The Company may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the Company may be lost in part or in whole. Currency risk If the Company’s investments are denominated in currencies different to the currency of the Company’s shares, the Company may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates. Derivatives risk Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the Company. Emerging markets & frontier risk Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty operational and liquidity risk than developed markets. Gearing risk The Company may borrow money to make further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase by more than the cost of borrowing, or reduce returns if they fail to do so. In falling markets, the whole of the value in such investments could be lost, which would result in losses to the Company. Liquidity risk The price of shares in the Company is determined by market supply and demand, and this may be different to the net asset value of the Company. In difficult market conditions, investors may not be able to find a buyer for their shares or may not get back the amount that they originally invested. Certain investments of the Company, in particular the unquoted investments, may be less liquid and more difficult to value. In difficult market conditions, the Company may not be able to sell an investment for full value or at all and this could affect performance of the Company. Market risk The value of investments can go up and down and an investor may not get back the amount initially invested. Operational risk Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the Company. Performance risk Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve. Share price risk The price of shares in the Company is determined by market supply and demand, and this may be different to the net asset value of the Company. This means the price may be volatile, meaning the price may go up and down to a greater extent in response to changes in demand. Smaller companies risk Smaller companies generally carry greater liquidity risk than larger companies, meaning they are harder to buy and sell, and they may also fluctuate in value to a greater extent. Section 6: Other Information (Unaudited) 115 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2024 Job No: 53868 Proof Event: 36 Black Line Level: 11 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 34 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Job No: 53868 Proof Event: 34 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Important information: This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Schroders has expressed its own views in this document and these may change. Issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU, which is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored. Schroder Investment Management Limited 1 London Wall Place, London EC2Y 5AU, United Kingdom T +44 (0) 20 7658 6000 @schroders schroders.com
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