SCHRODER INCOME GROWTH FUND PLC

Annual Report • Nov 11, 2025

Schroder Income Growth Fund plc Annual Report and Financial Statements For the year ended 31 August 2025 Investment objective The principal objectives of Schroder Income Growth Fund plc (the “Company”) are to provide real growth of income in excess of the rate of inflation, and capital growth as a consequence of the rising income. Why invest in the Company? The Company has grown its dividend for 30 consecutive years, since it was launched in 1995 – a feat that has earned it a place on the Association of Investment Companies’ list of dividend heroes 1 . Benefit from consistent rising income. The Company has delivered reliable dividend growth for shareholders in each of the last 30 years, allowing investors to capture the significant power of long-term compounding. Rely on decades of deep expertise. Managed by Schroders’ Head of UK Equities, Sue Noffke, with support from an investment team with deep experience. Capture long-term capital growth. Strong long-term performance through successful stock-picking, with the team repeatedly adding value across the market cap spectrum. Scan this QR code on your smartphone camera to sign-up to receive regular updates on Schroder Income Growth Fund plc The investment objective of the Company is set out above and on page 25. 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 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 88 and should be carefully considered before making any investment. 1 Latest Dividend Hero award date: 26 September 2025. The Association of Investment Companies’ dividend heroes are the investment companies that have consistently increased their dividends for 20 or more years in a row. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 Section 1: Overview Performance Summary 5 Chairman’s Statement 6 Ten-Year Financial Record 9 Section 2: Investment Manager’s Review Investment Manager’s Review 12 Investment Approach and Process 18 Investment Portfolio 20 Section 3: Strategic Report The Company 24 Stakeholder Engagement – Section 172 Report 28 Risk Report 32 Conclusion 36 Section 4: Governance Board of Directors 40 Directors’ Report 42 Audit and Risk Committee Report 45 Management Engagement Committee Report 48 Nomination Committee Report 49 Remuneration Committee Report 51 Directors’ Remuneration Report 52 Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements 55 Section 5: Financial Statements Independent Auditor’s Report 58 Statement of Comprehensive Income 63 Statement of Changes in Equity 64 Statement of Financial Position 65 Notes to the Financial Statements 66 Section 6: Other Information (Unaudited) Annual General Meeting – Recommendations 80 Notice of Annual General Meeting 81 Explanatory Notes to the Notice of Meeting 82 De nitions of Terms and Alternative Performance Measures 84 Information about the Company 86 Risk Disclosures 88 Contents 1 10 22 56 38 78 2 This is not a sustainable product for the purposes of the Financial Conduct Authority (“FCA”) rules. References to the consideration of sustainability factors and environment, social and governance (“ESG”) integration should not be construed as a representation that the Company seeks to achieve any particular sustainability outcome. Schroder Income Growth Fund plcCAnnual Report and Financial Statements 2025 2 Section 1: Overview Section 1: Overview Schroder Income Growth Fund plcCAnnual Report and Financial Statements 2025 3 Section 1: Overview Performance Summary 5 Chairman’s Statement 6 Ten-Year Financial Record 9 Section 1: Overview Schroder Income Growth Fund plcCAnnual Report and Financial Statements 2025 4 Section 1: Overview Schroder Income Growth Fund plcCAnnual Report and Financial Statements 2025 5 Performance Summary At 31 August 2025 Total Returns (including dividends reinvested) Section 1: Overview Net Asset Value (NAV) per share total return 9.6% (31 August 2024: 19.0%) Dividend growth for the year 3.5% (31 August 2024: 2.9%) Share price 319.00p (31 August 2024: 299.00p) Net revenues after taxation £8.67m (31 August 2024: £8.08m) Share price total return 12.9% (31 August 2024: 17.7%) Share price discount to NAV per share 8.2% (31 August 2024: 10.4%) Gearing 10.4% (31 August 2024: 12.2%) Dividends per share 14.70p (31 August 2024: 14.20p) Revenue earnings per share 12.55p (31 August 2024: 11.64p) Ongoing charges ratio 0.78% (31 August 2024: 0.79%) Some of the nancial measures above are classi ed as Alternative Performance Measures, as de ned by the European Securities and Markets Authority and are indicated with an asterisk (). De nitions of these performance measures, and other terms used in this report, are given on page 84, together with supporting calculations where appropriate. Schroder Income Growth Fund plcCAnnual Report and Financial Statements 2025 6 Section 1: Overview Chairman’s Statement I am pleased to present the annual results of Schroder Income Growth Fund plc for the year ended 31 August 2025. Despite facing external challenges throughout the year, UK equities have continued to deliver attractive returns. During the year, your Board has achieved material improvements in fees and discount management policy which are laid out further below. Performance During the year under review, your Company achieved an NAV total return of 9.6%, while the share price total return reached 12.9%, bene tting from a narrowing discount to NAV. This compares favourably with the FTSE All-Share Total Return Index, which delivered a return of 12.6% over the same period. Portfolio income saw an increase of 6.1% over the year, following a decline in the previous period. This recovery is encouraging, especially in the context of subdued dividend growth across the broader UKMmarket. Such conditions re ect the growing trend towards share buybacks and the impact of a weaker dollar on overseas earnings. Your Company marked the milestone of its 30 th Mconsecutive year of dividend increases, having raised its dividend every year since launch. This consistent track record places your Company among the AIC’s dividend heroes and re ects the careful use of reserves and the resilience of our investment approach. Since Sue NoFke assumed responsibility for the portfolio in July 2011, NAV and share price total returns have risen by 197.9% and 200.8% respectively, signi cantly ahead of the FTSE All-Share Index’s return of 168.0% over the same period. As your Board, we remain focused on protecting shareholders’ interests and proactively engage in regular discussions with your Investment Manager to review investment performance. For further details, please refer to the Investment Manager’s Review on page 12. Revenue, dividends, and smoother distribution Dividends per share for the nancial year amounted to 14.70p, representing a 3.5% increase over the previous year. Your Company’s principal objective is to provide income growth above the rate of in ation, and capital growth as a result of rising income. Over both 10- and 30-year periods, dividends have outpaced in ation, ensuring shareholders’ income has grown in real terms. Earnings per share rose by 7.8% to 12.55p compared to the prior period. The dividend of 14.70p was 0.85x covered by earnings. Upon payment of the fourth interim dividend on 31MOctober 2025, the revenue reserve stood at £4.3 million, equivalent to 6.33p per ordinary share or more than ve months of the annual dividend. In December 2024, your Board outlined its intention to deliver aMsmoother dividend distribution for the 2025 nancial year. InMline with this commitment, the rst, second, and third interim dividends were increased from 2.5 pence per share for the 2024 nancial year to 3.25 pence per share for the 2025 nancial year. This change allowed shareholders to receive a larger proportion of the total dividend earlier in the year through the rst three interim payments. Whilst your Board recognises that the environment for income generation, both in the UK and globally, has changed considerably, we are committed to supporting shareholders through a progressive dividend policy. It is becoming more challenging for dividend income alone to bridge the gap between earnings per share and the dividend level sought by your Board, particularly when aiming to increase the annual dividend. Several factors contribute to this: companies are now more prudent, demonstrating higher dividend cover and lower payout ratios than previously; many are focusing on share buybacks rather than dividend increases; special dividends have reverted to more sustainable levels; and nancing costs have risen as interest rates have normalised. This is not the rst occasion on which your Company has drawn on reserves to enhance the dividend. Although the ability of investment trusts toMsmooth income by managing reserves carefully is a key advantage over open-ended funds, your Board is mindful that using these reserves must be approached prudently and is not a substitute for growing underlying income. Notwithstanding the challenges, your Company remains in aMrobust position, with healthy total distributable reserves and good underlying income growth per share, both of which continue to support a progressive dividend policy and the Company’s principal objectives. Over the longer term, your Company has consistently achieved its objective of real income growth above in ation and your Board remains focused on this target. Ewen Cameron Watt Chairman “Both your Board and Investment Manager are confident that the portfolio is well positioned to continue delivering real growth of income and competitive total returns. Our diversified income base, disciplined stock selection, and long history of successfully navigating varied market cycles provide a solid foundation as your Company enters a fourth decade.” Schroder Income Growth Fund plcCAnnual Report and Financial Statements 2025 7 Section 1: Overview Enhancing shareholder returns Your Board’s principal purpose is to act in shareholders’ interests. This responsibility includes taking measures to manage costs – which are after all a tax on investment returns. In this respect, IMam pleased to report on some material actions taken this year to enhance returns for shareholders. These can broadly be divided between fee reductions and discount management. Investment fee reduction In May 2025, your Board was pleased to announce that with eFect from 1MSeptember 2025, your Company’s investment management fee would be reduced from 0.45% to 0.40%, and that the separate fee for company secretarial and administration services would be removed. Just as importantly, the basis on which fees were charged would be adjusted from aMcharge on NAV to the lower of market capitalisation or NAV. As a result, if the shares trade at a discount to NAV, this is an additional bene t to shareholders. This change introduces a fee structure and aMtotal expense ratio that are highly competitive within the industry. These adjustments are expected to enhance returns per share. Since I joined your Board in 2017, we have reduced the rate for investment management services, the largest single component of costs, by more than 45%. Discount management In May 2025, your Board also unveiled aMmore active approach to managing the volatility and level of the share price discount to NAV, seeking to keep the discount within single digits in normal market conditions. The average share price discount to NAV was 10.0% during the year, closing at 8.2% at the nancial year end. Your Board continues to monitor the discount closely and, when appropriate, implements share buybacks. Over the year, your Company repurchased 1,406,191 ordinary shares to be held in treasury, representing 2.0% of the issued share capital, for a total consideration of £4,286,077. The average price paid per share was £3.08. In the nancial year 2025, your Company’s share repurchases contributed to a 0.18% accretion in NAV. Your Board will continue to buy back shares when this action meaningfully enhances asset value per share. As at 6 November 2025, your Company’s share price discount to NAV was 8.2%. Gearing Your Company has a one-year £30 million revolving credit facility with The Bank of Nova Scotia, London Branch, eFective from September 2025. The average level of gearing during the year was 12.1%, with your Company nishing the year with gearing at 10.4%. Even in a higher interest rate environment in 2024/5, gearing has contributed positively to returns by 1.1%. Recent rate cuts and a renegotiated loan agreement mean that, all other things being equal, nance charges will be lower this year. Continuation vote As stipulated in your Company’s Articles of Association, your Board will propose a resolution at the forthcoming Annual General Meeting for your Company to continue as an investment trust for another ve years. These are times of considerable change and scrutiny of the investment trust sector. Your Board has debated these industry changes long and hard. Our view that continuation is justi ed has, at its core, considerations of potential shareholder outcomes. We believe these are a function of the overall investment opportunity, associated costs, maximisation of your Company’s balance sheet to support dividend growth, and the commitment of your Manager to UK equity management. The UK equity market remains one of the cheapest major stock markets. Cheapness in itself does not guarantee future returns. However, the UK market oFers diversi cation of the highly concentrated US market where a handful of stocks dominate overall returns. UK company management recognises this opportunity, with the highest level of share buybacks among major stock markets to existing market capitalisation. We see this as a vote of con dence in the medium-term outlook. One of your Company’s aims is to raise dividends paid to you in real terms. There is, we think, an excessive focus on revenue reserves in assessing prospects for such growth. Most major investment sectors focus on pay outs to their bene ciaries based on total return, which is capital plus income received. We agree with this approach, taking the view that all reserves generated from investment returns are available for shareholders. As such we note that future dividends for your Company should logically be based on total distributable reserves. These include capital reserves of £208,571,000, revenue reserves of £7,673,000 (as at 31 August 2025), and in ows generated by your Investment Manager. We do not believe that your best interests are served by buying the highest yielding shares in the market irrespective of their ability to grow dividends and history supports this belief. Your Board believes that your Investment Manager is well quali ed and suited to manage the portfolio and help your Company achieve its investment objectives. Under the leadership of Sue NoFke, Schroders’ Head of UK Equities, and her experienced team, your Company has demonstrated strong dividend growth deriving from successful stock-picking, and consistent value creation across companies of all sizes. This expertise has enabled reliable dividend growth for shareholders for three decades, allowing them to bene t from the compounding eFect over the long-term. Since Sue NoFke took over management of the portfolio in July 2011, your Company has outperformed the FTSE All-Share Total Return Index by 29.9%, delivering an annualised rate of 8.0%. Your Board also believes your Company is competitively positioned within its peer group and its structure continues to provide signi cant bene ts to shareholders. Lastly, there is much talk about the bene ts of greater size of investment companies. Lots of larger investment companies do not have materially diFerent shareholder pro les from smaller siblings. Your Board is not blind to the argument that there are too many competing funds in sectors, including UKMequity income, to allow for diFerentiation and therefore the possibility of future shrinkage in the number of funds. We simply believe that this process should be driven by considerations of potential returns per share. We have a duciary duty to you as shareholders to assess any opportunity or approach purely in terms of overall shareholder interests and this guides us in any consideration of structural change. Accordingly, your Board unanimously recommends the continuation of your Company as an investment trust for the next ve years, and the Directors intend to vote their shares in favour of continuation. Schroder Income Growth Fund plcCAnnual Report and Financial Statements 2025 8 Section 1: Overview Annual General Meeting (“AGM”) Your Company’s 2025 AGM will be held at 12.30pm on Thursday, 11 December 2025 at 1MLondon Wall Place, London, EC2YM5AU. Your Board strongly encourages shareholders to attend and participate. Attendees will have the opportunity to hear aMpresentation from your Investment Manager, and light refreshments will be available. All voting will be conducted by poll. Shareholders are encouraged to register their vote with your Company’s registrar, either online or via paper proxy forms, and to appoint the Chair of the meeting as their proxy. Even if you are unable to attend the AGM in person, you are still able to have your say by submitting your vote in advance. Further details on voting procedures can be found in the Notice of Meeting on pages 81 to 83. Any questions for your Board may be submitted by email to amcompanysecretary@schroders.com prior to the AGM. For ongoing updates about your Company, shareholders are invited to sign up to the Manager’s investment trusts update, available at https://schro.link/scf_subscribe. Results webinar Shareholders are invited to join your Investment Manager, SueMNoFke, for aMwebinar reporting on the year ended 31MAugust 2025 and to discuss the outlook for your Company’s portfolio. The presentation will be followed by a live Q&AMsession. The webinar will take place at 9:00am on Thursday, 13MNovember 2025. Registration is available at https://www.schroders.events/SCF25 or by scanning the QR code below: Outlook Global equity markets continue to be in uenced by events in the US, but ongoing policy uncertainty and concentration risk from aMsmall number of large technology companies have raised questions about American exceptionalism. Early indications suggest a shift in investor preferences, with other regions, including the UK, beginning to show improved performance. Low valuations in the UK stock market remain attractive to international investors and fuel robust merger and acquisition activity. Share buybacks are now aMconsistent feature of the UKMmarket, and your Board notes increasing evidence that well-executed programmes at good valuations can create lasting value. Both your Board and Investment Manager are con dent that the portfolio is well positioned to continue delivering real growth of income and competitive total returns. Our diversi ed income base, disciplined stock selection, and long history of successfully navigating varied market cycles provide a solid foundation as your Company enters a fourth decade. Ewen Cameron Watt Chairman 10 November 2025 Schroder Income Growth Fund plcCAnnual Report and Financial Statements 2025 9 Section 1: Overview Ten-Year Financial Record At 31 August 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Shareholders’ funds (£’000) 196,490 216,718 216,740 204,458 170,324 219,915 205,100 203,932 231,561 236,246 NAV per share (pence) 286.06 315.51 315.54 297.66 246.71 316.59 295.26 293.58 333.54 347.32 Share price (pence) 257.00 293.63 301.00 273.00 242.00 316.50 289.00 267.50 299.00 319.00 Share price discount to NAV per share (%) (10.2) (6.9) (4.6) (8.3) (1.9) 0.0 (2.1) (8.9) (10.4) (8.2) Gearing (%) 1 8.4 5.8 8.3 15.5 9.5 7.9 13.5 13.7 12.2 10.4 For the year ended 31 August 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net revenue return after taxation (£’000) 8,299 9,107 8,767 9,744 8,042 8,370 9,697 9,130 8,084 8,665 Revenue return per share (pence) 12.08 13.26 12.76 14.19 11.69 12.08 13.96 13.14 11.64 12.55 Dividends per share (pence) 10.60 11.20 11.80 12.40 12.60 12.80 13.20 13.80 14.20 14.7 Ongoing charges (%) 2 1.00 0.95 0.93 0.87 0.86 0.79 0.74 0.77 0.79 0.78 Performance 3 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 NAV total return 100.0 108.4 123.9 128.9 126.5 109.7 147.4 143.4 149.4 177.7 194.8 Share price total return 100.0 99.2 117.8 126.1 119.3 110.9 152.0 144.8 140.5 165.4 186.7 FTSE All-Share Index total return 100.0 111.7 127.7 133.7 134.3 117.3 148.9 150.4 158.3 185.2 208.5 1 Borrowings used for investment purposes, less cash, expressed as a percentage of net assets. If the amount so calculated is negative, this is shown as a “Net cash” position. 2 Ongoing charges represents the management fee and all other operating expenses excluding nance costs and transaction costs, expressed as a percentage of the average daily net asset values during the year. 3 Source: Morningstar. Rebased to 100 at 31 August 2015. * Alternative Performance Measures. NAV/share price/FTSE All-Share Index total returns for the ten years ended 31 August 2025 Source: Morningstar. Rebased to 100 at 31 August 2015. Dividends per share versus the rate of in ation for the ten years ended 31 August 2025 Source: Morningstar/O8ce for National Statistics. Rebased to 100 at 31 August 2015. 80 100 120 140 160 180 200 220 Aug-25 Aug-24 Aug-23 Aug-22 Aug-21 Aug-20 Aug-19 Aug-18 Aug-17 Aug-16 Aug-15 NAV Total Return Share Price Total Return FTSE All-Share Total Return 90 100 110 120 130 140 150 Aug-25 Aug-24 Aug-23 Aug-22 Aug-21 Aug-20 Aug-19 Aug-18 Aug-17 Aug-16 Aug-15 CPI Dividends per share Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 10 Section 2: Investment Manager’s Review Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 11 Section 2: Investment Manager’s Review Investment Manager's Review 12 Investment Approach and Process 18 Investment Portfolio 20 Section 2: Investment Manager’s Review Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 12 Section 2: Investment Manager’s Review Investment Manager’s Review Introduction During the year ended 31 August 2025, your Company achieved aRNAV total returnRof 9.6%, with net income reinvested. This performance is set against the FTSE All-Share Index, which returned 12.6% over the same period. The share price total return reached 12.9%, re ecting a narrowing discount to NAV. Income Total income from dividends increased by 6.1% to £10.3 million, up from £9.7 million in the previous year. Ordinary dividend income rose by 4.8%, marking a modest but welcome return to growth after the prior year’s decline. The nancial sector was the primary driver of this increase, with insurance and other nancials contributing the most signi cant rise compared to last year. Banks also delivered higher dividends and notable returns of surplus capital via share buybacks. Conversely, lower exposure to the oils and mining sectors resulted in subdued income contributions from these areas in comparison to previous years. Special dividends accounted for 1.8% of total income, slightly higher than the previous year. These were received from Lancashire, known for paying specials when performance allows, and Assura, which issued a special dividend in connection with its takeover by Primary Health Properties. This report further elaborates on the growing preference among companies for share buybacks as aRmethod of returning surplus capital to shareholders, re ecting management’s recognition of the long-term value created by retiring undervalued equity. A diverse range of holdings contributed to the portfolio’s income growth. Many nancial companies achieved double-digit dividend increases, including NatWest, Standard Chartered, 3i, XPS Pensions, and Prudential. Outside the nancial sector, companies such as Cranswick, Tesco, Haleon, Telecom Plus, BAE Systems, and IMI also recorded double-digit dividend growth. Others, including Balfour Beatty, Bunzl, QinetiQ, RELX, Pearson, GSK, AstraZeneca, and SSE, delivered high single-digit dividend growth. Firms opting for lower single-digit increases included Shell, BP, Legal & General, M&G, BT, Computacenter, Unilever, Fevertree, Pets at Home, and Convatec. Some holdings, such as Whitbread, Diageo, and Smith & Nephew, maintained at dividends, while reductions were limited, with National Grid being the most signi cant as it reset its dividend to support major investment plans. Market-wide, unfavourable exchange rates and a shift towards share buybacks have acted as headwinds to UK dividends, with fewer special dividends observed. Despite this, your Investment Manager is pleased to report resumed dividend income growth for your Company and increased diversi cation of income sources. Financials remain aRkey contributor, but income was also supported by businesses from consumer, healthcare, industrial, andRutilities sectors. The top ten dividend payers made up 37.6% of total income, down from 45.2% in the previous nancialRyear. Sue Noffke Head of UK Equities Dividend delivery Past performance is not a guide to future performance and may not be repeated. Source: ¹Schroders, ONS for CPI in ation. August 1996 to August 2025. (Fund launched in March 1995, part year dividend excluded from calculation). AIC = Association of Investment Companies. Latest dividend hero award date: 26 September 2025. The AIC dividend heroes are the investment companies that have consistently increased their dividends for 20 or more years in a row. Dividends per share (pence) Dividends grown every year since 1996 Company 4.1% vs. of 2.5% 1 “Persistent low valuations have prompted a profound shift in how UK companies allocate capital. London now leads the world in share buybacks, with a broader range of businesses returning capital through repurchases. When executed with discipline – without compromising investment or balance sheet strength – buybacks are proving powerful drivers of share price and earnings growth. Complementing attractive levels of dividend income, the result is a compelling total return story for UK equities.” Schroder Income Growth Fund plc K Annual Report and Financial Statements 2025 13 Section 2: Investment Manager’s Review Market background The review period was marked by notable events and volatility, but the overall direction for UK equities was positive, mirroring trends in other regional markets. Developments in the United States, particularly the re-election of Donald Trump as President, dominated headlines and shaped investor sentiment. Initial optimism around pro-growth policies such as tax cuts and deregulation soon gave way to concerns as the policy agenda shifted towards trade, with the introduction of ‘Liberation Day’ tariIs in April sparking a global market correction and recession fears. Nevertheless, markets rebounded strongly, with many, including the UK, ending at or near record highs. Political and trade uncertainties led to reconsideration of the ‘US exceptionalism’ seen in recent years, as investors grew cautious about over-reliance on the US and a handful of large technology rms. This shift is re ected in relative performance tables: the UK, though still perceived as a laggard, posted double-digit annualised returns over the past ve years, and for the period under review, UK and US returns were similar in common currency terms. Domestically, the UK began the period under a new Labour government focused on economic growth. The rst Budget, however, disappointed investors, with higher employer National Insurance contributions and increases in the National Minimum Wage dampening sentiment. Monetary policy was broadly supportive, with interest rates trending lower, although in ation remained too high for the Bank of England to ease policy signi cantly. Despite scal challenges and slow growth, UK equities performed well, bolstered by the global nature of UK-listed companies, with approximately 75% of FTSE All-Share revenues generated outside the UK. International interest in UK equities, especially from US investors, has increased over the period, attracted by generally low valuations. Large caps bene tted most so far, but potential remains for broader participation. While pro tability for UK companies has been strong, earnings growth for larger, international-facing businesses has been held back in sterling terms by a weaker dollar. Consequently, large-cap share price gains were mainly due to re-rating, resulting in even better relative value among smaller companies, where your Investment Manager continues to nd attractive opportunities. Share buybacks remained prominent, with evidence mounting that disciplined buyback programmes at low valuations are starting to drive outperformance. Mergers and acquisitions (“M&A”) activity also continued, especially among small and mid-caps, as overseas and private equity buyers sought to capitalise on low valuations. Sector consolidation was also notable in areas like property and construction. UK is attractive on a total shareholder yield return basis versus other major markets Past performance is not a guide to future performance and may not be repeated. Source: LSEG Datastream, Factset, Goldman Sachs Research. As at 31 August 2025. A share buyback is when a company buys its own shares from the market, reducing the number of outstanding shares. This tends to increase the value of the remaining shares if demand remains constant or increases. Portfolio performance The portfolio achieved a positive absolute return but trailed the FTSE All-Share Index. The main headwind was stock selection among larger companies, as holdings not owned or underweighted in the portfolio outperformed. Additionally, the portfolio’s overweight position in mid and small-cap companies, along with a corresponding underweight in large caps, hindered relative performance. FTSE 100 companies returned 13.7%, surpassing the FTSE 250’s 5.9% and FTSE Smaller Companies’ 6.9%. This reversed the previous year’s trend, when small and mid-cap exposure was more bene cial. The timing of increased investment in smaller companies has yet to pay oI, with mid-cap stocks displaying volatility since their mid-2021 peak. Nevertheless, stock selection within small and mid-caps has been positive since your Investment Manager took over in July 2011. Despite lagging returns compared to the FTSE 100 this year, your Investment Manager remains con dent in the strategy due to lower valuations, stronger long-term growth prospects, and higher dividend yields among mid-caps. Many of these companies have adopted share buybacks, expected to support future earnings, dividend growth, and share prices. Over the last 25 years, the FTSE 250 Index has delivered superior total annualised returns of 7.6%, compared to the FTSE 100RIndex return of 5.1%. Past performance is not a guide to future performance and may not be repeated. For illustrative purposes only and not a recommendation to buy or sell shares or sectors. Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 14 Section 2: Investment Manager’s Review Five top/bottom relative performers Weight Portfolio relative Relative weight 1 to index performance 2 Impact 3 (%) (%) (%) (%) Standard Chartered 4.0 +3.1 +69.8 +1.6 Burberry 1.9 +1.7 +79.6 +0.9 Balfour Beatty 2.6 +2.5 +32.9 +0.7 BT 2.5 +2.1 +50.2 +0.7 Lloyds Banking Group 3.9 +2.2 +30.2 +0.7 Weight Portfolio relative Relative weight 1 to index performance 2 Impact 3 (%) (%) (%) (%) Rolls-Royce 0.0 –2.5 +105.7 –1.9 Taylor Wimpey 2.1 +1.9 –48.7 –1.1 British American Tobacco 0.0 –2.6 +46.9 –1.0 Pets at Home 1.9 +1.8 –36.3 –0.8 Hollywood Bowl 1.9 +1.9 –33.6 –0.7 Past performance is not a guide to future performance and may not be repeated. For illustrative purposes only and not a recommendation to buy or sell shares. Source: Schroders, Aladdin. ¹Average weights over the period. 2 Total return of the stock relative to the FTSE All-Share TR over the period. 3 Contribution to performance relative to the FTSE All-Share TR. Positive contributors included an overweight position in the nancials sector and eIective stock selection. Banks generally delivered robust dividend increases and share buybacks, enhancing shareholder returns. Standard Chartered was the largest contributor, with your Investment Manager adding to the position after share price weakness late last year; the shares subsequently performed strongly as Asian economic data improved, and global growth concerns eased. Lloyds Banking Group, as well as life insurance groups Prudential and Legal & General, also contributed positively. Burberry rebounded from being a major detractor last year. Following strategic missteps and weak trading, the company underwent a management change. Your Investment Manager engaged extensively with Burberry and increased the holding when market sentiment was negative. Early signs of operational improvement have been re ected in the share price, despite a challenging luxury goods environment and a suspended dividend. Balfour Beatty also performed well. The company remains attractively valued, bene ts from strong management, and has renegotiated key contracts for more predictable returns and reduced risk. Its disciplined capital allocation, progressive dividend policy, and sustained share buybacks (over a fth of shares repurchased in ve years) have supported growth in earnings and dividends per share. Conversely, some consumer discretionary holdings detracted from returns. Pets at Home’s share price fell due to higher employment costs introduced in the Autumn Budget, aIecting sentiment towards its retail operations. However, your Investment Manager sees value in its veterinary business, which it believes is underappreciated by the market. Uncertainty was heightened by a Competition & Markets Authority review of the veterinary sector, but your Investment Manager continues to see attractive prospects for this part of the business. Post-period end, the company’s CEO departed, with the chair stepping in temporarily. Hollywood Bowl’s performance was aIected by seasonal factors, with consumers preferring outdoor activities during a warm and dry spring and summer. Your Investment Manager remains optimistic about experiential leisure and sees growth potential in the company’s Canadian expansion. Taylor Wimpey faced sector-wide headwinds in UK housebuilding, with policy support slow to materialise, mortgage rates remaining high, and sluggish planning approvals. Despite this, your Investment Manager holds the position for its valuation and yield, anticipating potential capital appreciation if conditions improve. The absence of holdings in some strong-performing index constituents also impacted relative returns. Rolls-Royce continued its recovery, with new leadership implementing transformation plans faster than anticipated, and future demand for defence and nuclear business exciting investors. Your Investment Manager continues to evaluate the investment case but has not yet found an attractive valuation driven entry point. Furthermore, British American Tobacco outperformed, supported by price rises in its traditional business and next-generation products, though your Investment Manager prefers opportunities elsewhere due to concerns about the sustainability of growth. M&A activity continued, re ecting attractive valuations and overseas interest. Private equity and trade buyers were active, notably in property, with Assura subject to competing bids. Your Investment Manager supported the oIer from Primary Health Properties, believing it would create a stronger listed entity, and retained the position post-deal. The portfolio also bene ted from Unite’s bid for Empiric Student Properties, still ongoing at the time of writing. Shifting capital allocation preferences Your Investment Manager has observed aRsigni cant shift in UKRcompanies’ capital allocation preferences in response to low valuations. More businesses are directing surplus cash towards share buybacks, alongside or instead of dividend growth. While share buybacks have long been common in the US, the UK is now adopting this approach, with Japan and Europe following suit to aRlesser extent. Past performance is not a guide to future performance and may not be repeated. For illustrative purposes only and not a recommendation to buy or sell shares or sectors. Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 15 Section 2: Investment Manager’s Review Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 16 Section 2: Investment Manager’s Review Share buybacks reduce the number of shares outstanding, increasing each remaining shareholder’s proportion of ownership and enhancing earnings and dividends per share. The main reasons for buybacks are to return surplus capital, exploit undervaluation, boost per share metrics, and signal management’s con dence in the future. The trend is broadening, with buybacks occurring across more sectors and among mid and small-cap companies as well as large ones. At year-end, 31 out of 47Rholdings, 67% of portfolio value, engaged in buybacks, up from 29 holdings (60%) in 2024 and 17RholdingsR(38%) in 2023. Businesses with disciplined, long-term buyback programmes are beginning to show share price outperformance and enhanced earnings and dividend per share growth. Banks, for example, were among the best performing sectors, with all portfolio banks conducting buybacks and making strong dividend increases. Your Investment Manager believes total shareholder returns (dividends plus buybacks) from banks could equate to as much as a quarter of their current market value over the next three years. UK bank valuations remain subdued compared to their long-term history and international peers. Insurers and nancials like Legal & General, Prudential, ICG, and TP ICAP also have the capital strength for buybacks and growth investment. Oil majors Shell and BP are returning signi cant capital, with Shell having reduced its share count by over 25% since 2020. Shell’s dividend was cut in 2020 but has since more than doubled, while the total dividend cost is now less than half of pre-cut levels due to the reduced share count. Buybacks span medical technology rms Smith & Nephew and Convatec, consumer-facing businesses such as Whitbread, Pearson, and Unilever, and industrials like BAE Systems and Balfour Beatty. However, buybacks do not automatically lead to better performance. They are bene cial only at appropriate prices and should not override core business investment or be funded by debt. Maintaining and improving the quality of existing operations, as well as supporting future growth, should remain the priority. About one-third of the portfolio did not conduct buybacks, prioritising capital expenditure (utilities), returning pro ts via dividends (high-yield companies), or constrained by high valuations or balance sheet limitations. Portfolio activity During the review period, your Investment Manager added 15Rnew holdings and exited 12 positions. Four new consumer staples holdings were introduced, capitalising on excellent franchises after aRperiod of underperformance. Diageo was reintroduced after further share price weakness, presenting aRcompelling valuation. Near-term pro t expectations have been reset, with the destocking cycle advanced, suggesting sales recovery is possible. The appointment of an experienced CFO is expected to drive eDciencies and improve returns. Fevertree Drinks, a premium mixer brand, was added. Following this purchase aRdistribution partnership with Molson Coors was announced, providing capital light growth potential in the US, Renabling more cash returns to shareholders. Tesco was purchased for its attractive income generation, with aRroughly 4% dividend yield and ongoing buybacks. Its competitive position supports market share gains and targeted promotions, potentially yielding high-margin advertising revenues. Associated British Foods (“ABF”) owns diverse assets, including Primark, grocery brands, and specialty ingredients. Primark has notable geographic expansion potential, and management can unlock further value by streamlining and addressing underperforming divisions. To fund increased consumer staples exposure, trims were made in utilities, telecoms, pharmaceuticals, and banking. Drax Group was exited after a strong share run, as its Bioenergy projects require signi cant government support and US policy shifts made the risk-reward less attractive. BT Group was trimmed after outperformance, with improved communication under a new CEO enhancing market appreciation of its value as bre broadband investments begin to generate cash. Exposure to GSK was reduced early in the period due to disappointing vaccine sales and earnings downgrades, despite settling litigation at lower-than-expected cost. Standard Chartered was reduced after strong performance from a previously increased position but remains a top active holding. Strategy and outlook The past year brought external challenges, including scal pressures, persistent in ation, and geopolitical uncertainty. Despite these headwinds, UK equities delivered attractive absolute and competitive relative returns, challenging the perception of persistent UK market underperformance. Valuations remain attractive, despite strong recent returns, the UKRtrades at average historic valuations – around 15% below Europe and well below the US. Your Investment Manager sees particular opportunities among mid-caps trading at depressed levels due to UK macroeconomic pressures, creating potential for mispriced businesses with upside. Financials account for about a third of the portfolio, including banks, insurers, and asset managers with both global and local exposure. Holdings such as Standard Chartered, Prudential, ICG, and TP ICAP combine valuation support, earnings growth, attractive yields, and signi cant buybacks. XPS Pensions bene ts from structural change and demand in bulk annuities. Your Investment Manager believes these holdings will underpin attractive shareholder returns. The portfolio also has signi cant, overweight positions in healthcare, with Convatec and Smith & Nephew delivering positive progress. Smith & Nephew’s three-year turnaround is gaining traction, with improvements in orthopaedics, sports medicine, wound management, and cash generation supporting returns. AstraZeneca is a major holding, supported by a broad pipeline and con dence in achieving 2030 revenue goals. Smaller positions include GSK and Haleon. The portfolio remains underweight in energy and basic industries, where commodities prices have been under pressure, and industrials, though new holdings include BAE Systems, IMI, and Intertek. Utilities holdings include National Grid and SSE, oIering growth opportunities and solid returns. Overall, your Company is invested across attractively valued companies with robust growth prospects and a clear commitment to improving shareholder returns. The backdrop includes risks from global trade dynamics, geopolitical tensions, persistent scal pressures, and stubborn in ation, contributing to volatility. However, volatility does not preclude progress, as history shows equity markets can advance despite turbulence. The opportunity set is key. International investors are reconsidering heavy US exposure, seeking value, growth, Past performance is not a guide to future performance and may not be repeated. For illustrative purposes only and not a recommendation to buy or sell shares or sectors. Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 17 Section 2: Investment Manager’s Review resilience, and diversi cation elsewhere. The UK oIers these qualities and could bene t if investors diversify. Momentum is building in domestic policy, with new initiatives to foster long-term investment and reinvigorate the UK’s capital markets. The “Leeds Reforms” aim to encourage investment in productive assets, modernise regulatory frameworks, and promote more eDcient capital deployment. These measures, alongside renewed competitiveness and market reform, signal policy support for UK economic growth. Early evidence suggests con dence is returning to UK listings, with recent IPOs and mergers reinforcing aRmore constructive market environment and highlighting the UK’s “self-help” potential. Against this backdrop, your Investment Manager is con dent in the UK market’s ability to reward patient, long-term investors. With attractive valuations, improving fundamentals, and supportive capital markets policy, the outlook is constructive. This con dence is re ected in ongoing gearing and the unique bene ts of the investment trust structure, such as income smoothing, which should continue to add value for shareholders. Your Investment Manager remains focused on building a diversi ed portfolio of fundamentally mispriced UKRopportunities, aiming to grow income ahead of in ation and capital through rising income. Schroder Investment Management Limited 10 November 2025 Past performance is not a guide to future performance and may not be repeated. For illustrative purposes only and not a recommendation to buy or sell shares or sectors. Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 18 Section 2: Investment Manager’s Review Investment process Your Company’s investment team look beyond today’s highest dividend payers to provide attractive levels of yield and future income growth. By utilising a barbell approach to income generation, diversi cation is achieved by allocating towards mispriced opportunities in capital growth and income. Your Investment Manager aims to balance the companies with aRsustainably high yield with those that oIer a lower dividend today but with greater growth prospects. Your Investment Manager seeks to identify and invest in mispriced situations through fundamental research. While macroeconomic outcomes are diDcult to predict precisely, your Investment Manager monitors the risk to your Company’s holdings using their experience gained over multiple economic cycles. Your Investment Manager maintains a focus on constructing aRdiversi ed portfolio consisting of their highest conviction stock picks for the long term, within the constraints of delivering your Company’s required income objective. Your Company’s investment approach is based on your Investment Managers’ belief that stock markets are ineDcient, whilst your Investment Manager believes it can exploit such ineDciencies by conducting primary research, through disciplined portfolio construction, and taking a long-term view. Your Company’s lead Investment Manager, Sue NoIke, is head of UKRequities, head of the Prime UKRequity team, has been a member of Schroders’ UK Equity team for over 30Ryears and has been managing your Company’s portfolio since 2011. Your Company’s investment team employs aRrigorous and disciplined investment process aiming to deliver consistent outperformance with low volatility against set objectives. There are four areas the investment team believe brings an edge to their investment performance: 1. Behavioural: Long-term mindset with an average holding period of ve years allows the team to capture opportunities peers miss when short-term uncertainty clouds judgment 1 . Your investment team have aRbehavioural advantage that has been exploited over many years. The average holding period for your Company’s holdings is around ve years compared with aRsustained shortening of holding periods within the market. Your investment team is prepared to invest where the next three to six months looks uncertain, but the ve-year outlook is positive. These are opportunities your Company steps into when con dent in the destination, believing that under researched mid-caps represent some of the best opportunities. Over time, an outsized portion of the alpha generated by the underlying portfolio of Schroder Income Growth Fund plc has come from mid-cap companies. 2. Style Neutral: Pragmatic, style-neutral approach to investing, focusing on mispricing rather than following ‘value’ or ‘growth’ labels. The investment team believes that the industry terms ‘value’ and ‘growth’ create ineDciencies to take advantage of, and to deliver the best risk adjusted returns. Style neutrality allows the team to focus on where the opportunities are and act independently of whichever ‘factor’ is in favour. Mispricing can occur in a high growth company on high headline multiples of earnings and cash ows, or a mature business priced below market multiples. There are examples of both types of company in your Company’s portfolio. Over the years the team have had success identifying mispricings where fundamentally sound companies encounter a serious but temporary problem. They are unafraid to take aRcontrarian view when backed by research. The investment team believes that style neutrality helps deliver consistent alpha generation which gives our clients a smoother experience, reducing the chances of selling prematurely. 3. A rigorously implemented, repeatable process: The foundations of the investment process have been stable since 2006, though signi cant incremental enhancements have been made. The investment process is built on the belief that a collaborative, team-based approach is key to avoiding rash decisions. All buy and sell decisions must be unanimous across the portfolio Investment Managers. Unanimity creates a high hurdle for buy decisions and a shared responsibility for all holdings. Performance is therefore worn collectively, creating psychological safety. Every week, the investment team hold twoRportfolio construction meetings where existing positions and new ideas are debated. The team review portfolios, re ect on company meetings and examine mistakes for learning opportunities. A key aspect of the team’s edge is both recognising and avoiding the situations and environments they struggle to perform in. 4. Active Ownership: The team’s long holding periods helps them to aIect change where appropriate, prevent bad outcomes and ensure alignment of incentives. Active Ownership at Schroders means engaging with companies to encourage responsible behaviour and enhance our investment edge. Your Company’s average ve year holding period means it can build meaningful relationships with management and the board of directors 1 . Through these long-term relationships your investment team believes your Company’s proposals are given more serious consideration. Moreover, engagements are investor-led as your investment team prefer to engage directly on issues they identify. Active Ownership is focused on aligning the interests of management teams and stakeholders with shareholders. This can prevent bad outcomes and gives an alternative insight into company culture. The investment team’s experience is that active ownership has encouraged companies to assess their capital allocation priorities and has helped elicit value release over time. Investment Approach and Process 1 Source: Schroders based on average of last ten calendar years name turnover. Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 19 Section 2: Investment Manager’s Review Our engagement record with portfolio companies The diagram below shows examples of companies engaged with during year to 31RAugust 2025. Source: Schroders, data from 31 August 2024 to 31 August 2025. For illustrative purposes only and should not be viewed as a recommendation to buy or sell. Logos are the property of the companies shown. List is not exhaustive and shows selected engagements held in the Company’s portfolio. Engagement is investor led and supported by our active ownership specialists. Our voting record The table below shows the number of company meetings and resolutions your Company voted on in the last one and three years. 2025 % 2023-2025 % Meetings 46 – 138 – Resolutions 941 – 2,824 – Votes with management 927 98.5 2,786 98.6 Votes against management 12 1.3 39 1.4 Abstein 1 0.1 0 0.0 Did not vote 1 0.1 0 0.0 Data shown for Company nancial years ending 31 August. Where your Investment Manager votes against management on behalf of your Company, in most cases this has been to oppose the re-election of a director or to oppose the remuneration report. Your Investment Manager will oppose the re-election of aRdirector for several reasons including ‘over-boarding’, where it believes a director holds too many board positions at once so are unable to dedicate suDcient time to each. In the case of remuneration, your Investment Manager pushes for management teams to have rm alignment with shareholders. Climate related disclosures On 30 June 2025, the Company’s AIFM produced a product level disclosure consistent with the Task Force on Climate-Related Financial Disclosures for the period 1 January 2024 to 31RDecember 2024. This can be found here: https://mybrand.schroders.com/m/68370b63f93d6992/original/TC FD-GB72399M-Schroder-Income-Growth-Fund-20241231.pdf £’000 % Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 20 Section 2: Investment Manager’s Review Investment Portfolio At 31 August 2025 Financials HSBC 15,009 5.8 Lloyds Banking Group 9,976 3.8 Standard Chartered 9,016 3.5 Prudential 1 8,779 3.4 ICG 7,972 3.1 3i Group 7,488 2.9 TP ICAP 5,727 2.2 Legal & General 4,933 1.9 Intesa Sanpaolo 2 4,479 1.7 NatWest 3,529 1.4 Lancashire 3,186 1.2 XPS 3,146 1.2 3i Infrastructure 2,516 1.0 Total Financials 85,756 33.1 Healthcare AstraZeneca 17,047 6.6 Convatec 4,898 1.9 GSK (GlaxoSmithKline) 4,632 1.8 Smith & Nephew 4,371 1.7 Haleon 3,423 1.3 Total Healthcare 34,371 13.3 Consumer Discretionary Burberry 6,045 2.3 Taylor Wimpey 4,910 1.9 Whitbread 4,897 1.9 Hollywood Bowl 4,370 1.7 International Consolidated Airlines 3,670 1.4 Pets at Home 3,302 1.3 Pearson 2,975 1.1 Total Consumer Discretionary 30,169 11.6 Consumer Staples Unilever 9,255 3.6 Tesco 5,605 2.2 Diageo 3,838 1.5 Cranswick 3,701 1.4 Fever-Tree Drinks 2,653 1.0 Associated British Foods 2,650 1.0 Total Consumer Staples 27,702 10.7 Companies in bold represent the 20 largest investments, which by value account for 62.8% (2024: 66.9%) of total investments. All companies are headquartered in the UK unless otherwise stated. All investments are equities, listed on a recognised stock exchange. Schroder Income Growth Fund plcKAnnual Report and Financial Statements 2025 21 Section 2: Investment Manager’s Review £’000 % Industrials Balfour Beatty 6,801 2.6 QinetiQ 6,713 2.6 IMI 3,507 1.4 Intertek 2,580 1.0 BAE Systems 1,858 0.7 Total Industrials 21,459 8.3 Energy Shell 10,672 4.1 BP 5,591 2.2 Total Energy 16,263 6.3 Utilities National Grid 8,829 3.4 SSE 4,282 1.6 Telecom Plus 3,217 1.2 Total Utilities 16,328 6.2 Technology RELX 7,317 2.8 Computacenter 2,146 0.8 Total Technology 9,463 3.6 Real Estate Empiric Student Property 4,972 1.9 Primary Healthcare Properties 3,430 1.3 Total Real Estate 8,402 3.2 Basic Materials Rio Tinto 4,961 1.9 Total Basic Materials 4,961 1.9 Telecommunications BT 4,762 1.8 Total Telecommunications 4,762 1.8 Total investments 259,636 100.0 1 Prudential plc is headquartered in London and Hong Kong. 2 Intesa Sanpaolo is headquartered in Turin. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 22 Section 3: Strategic Report Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 23 Section 3: Strategic Report The Company 24 Stakeholder Engagement – Section 172 Report 28 Risk Report 32 Conclusion 36 Section 3: Strategic Report Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 24 Section 3: Strategic Report The Company 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, robust challenge. The values are all centred on achieving returns for shareholders in line with the Company’s investment objective. The Board also promotes the eAective management or mitigation of the risks faced by the Company and, to the extent it does not con ict with the investment objective, aims to structure the Company’s operations with regard to all its stakeholders and take account of the impact of the Company’s operations on the environment and community. 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. The Board aims to ful l 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 reporting from its service providers with respect to their anti- bribery and corruption policies; Modern Slavery Act 2015 statements; diversity policies; and greenhouse gas and energy usage reporting. Business Model The Board appointed Schroder Unit Trusts Limited (the “Manager” or “AIFM”) 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 nancial instruments as appropriate. The terms of the appointment are described more completely in the Directors’ Report including delegation to the Investment Manager. The Manager also promotes the Company using its sales and marketing teams. The Board and Manager work together to deliver the Company’s investment objective, as demonstrated in the diagram below. The investment and promotion processes set out in the diagram are described in more detail below. • Set objectives, strategy and 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 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 Strategy Oversight Promotion Investment Competitiveness S H AR EH O L D E R VA L U E Board Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 25 Section 3: Strategic Report Investment Trust Status The Company carries on business as an investment trust. Its shares are listed and admitted to trading on the main market ofK the London Stock Exchange. It has been approved by HMK Revenue & Customs as an investment trust in accordance with section 1158 of the Corporation Tax ActK 2010, by way of aK one-oA application and it is intended that the Company will continue to conduct its aAairs 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 ActK 2006. The Company is not a “close” company for taxation purposes. Continuation Vote It is not intended that the Company should have a limited life but the Directors consider it desirable that the shareholders should have the opportunity to review the future of the Company at appropriate intervals. Accordingly, 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 ve yearly intervals. Investment Model Investment objective The Company’s principal objectives are to provide real growth of income in excess of the rate of in ation, and capital growth as aK consequence of the rising income. Investment policy The investment policy of the Company is to invest primarily in UKK equities but up to 20% of the portfolio may be invested in equities listed on recognised stock exchanges outside the UK. IfK considered appropriate, the Company may use equity related instruments such as convertible securities and up to 10% of the portfolio may be invested in bonds. In addition, up to 20% of total income may be generated by short-dated call options written on holdings in the portfolio. Put options comprising short-term exchange-traded instruments on major stock market indices of an amount up to the value of the Company’s borrowings may also be utilised. Investment Restrictions and Spread of Investment Risk Risk in relation to the Company’s investments is spread as a result of the Manager investing the Company’s portfolio with a view to ensuring that the portfolio retains an appropriate balance to meet the Company’s investment objectives. The key restrictions imposed on the Manager include: 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; b) no more than 10% of the value of the Company’s gross assets may be invested in other listed investment companies unless such companies have a stated investment policy not to invest more than 15% of their gross assets in other investment companies or investment trusts which are listed on the O2cial List of the London Stock Exchange; c) no more than 15% of the Company’s gross assets may be invested in other investment companies or investment trusts which are listed on the O2cial List of the London Stock Exchange; d) no more than 15% of the Company’s total net assets may be invested in open-ended funds; and e) no more than 25% of the Company’s total net assets may be invested in the aggregate in unlisted investments and holdings representing 20% or more of the equity capital of any company. The investment portfolio on pages 20 and 21 demonstrates that, as at 31K August 2025, the Investment Manager invested in 46 UKK equity investments and one non-UK listed equity investment spread across 11 industry sectors. The Board believes that the diversity of the stocks, along with the above-mentioned restrictions imposed on the Manager, achieve the objective of spreading investment risk. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 26 Section 3: Strategic Report Key Performance Indicators The investment objective The Board measures the development and success of the Company’s business through achievement of the Company’s investment objective, to provide real growth of income, being growth of income in excess of the rate of in ation, and capital growth as a consequence of the rising income, which is considered to be the most signi cant key performance indicator for the Company. Commentary on performance against the investment objective can be found in the Chairman’s Statement. At each meeting, the Board considers aK number of performance indicators to assess the Company’s success in achieving its investment objective. These are as follows: • NAV performance; • Share price performance; • Share price discount/premium; and • Ongoing charges ratio. These are classed as Alternative Performance Measures and their calculations are explained in more detail on page 84. The performance against these indicators is reported on page 9. NAV and share price total return At each meeting, the Board reviews the performance of the portfolio in detail and discusses the views of the portfolio managers with them. Share price discount/premium to NAV per share The Board reviews the level of discount/premium to NAV per share at every board meeting and is alert to the value shareholders place on maintaining as low a level of discount/premium volatility as possible. Ongoing charges The Board reviews the Company’s ongoing charges to ensure that the total costs incurred by shareholders in the running of the Company remain competitive when measured against peer group funds. An analysis of the Company’s costs, including management fees, Directors’ fees and general expenses, is submitted to each board meeting. Management and any performance fees payable are reviewed at least annually. Revenue and dividend policy The net revenue return for the year, before nance costs and taxation, was £9,353,000 (2024: £8,863,000). After deducting nance costs and taxation the amount available for distribution to shareholders was £8,710,000 (2024: £8,084,000) equivalent to net revenue of 12.55p (2024: 11.64p) per ordinary share. The Directors of the Company intend to continue to pay dividends at the end of January, April, July and October in each year. Although it is intended to distribute substantially all net income after expenses and taxation, the Company may retain up to aK maximum of 15% of the Company’s gross income in each year as a revenue reserve to provide consistency in dividend policy. ForK the year ended 31 August 2025, the Directors have declared fourK interim dividends, totalling 14.70p (2024: 14.20p) per ordinary share. Promotion The Company promotes its shares to aK broad range of investors including discretionary wealth managers, private investors, nancial 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. 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 closeK relationships with adviser and execution-only platforms, advertising in the trade press, maintaining relationships with nancial journalists and the provision of digital information on Schroders’ website. The Board also seeks active engagement with investors, and meetings with the Chairman are oAered to investors when appropriate. Shareholders are encouraged to sign up to the Manager’s Investment Trusts update, to receive information on the Company directly https://schro.link/scf_subscribe. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 27 Section 3: Strategic Report Corporate and Social Responsibility The Board recognises the Company’s responsibilities with respect to corporate and social responsibility and engages with its outsourced service providers and other stakeholders to safeguard the Company’s interests. As part of this ongoing monitoring, the Board receives reports from its service providers with respect to their diversity policies; anti-bribery and corruption policies; Modern Slavery Act 2015 statements; nancial crime policies; and greenhouse gas and energy usage reporting. Diversity policy The Board has adopted a diversity and inclusion policy which seeks to promote diversity of gender, social and ethnic backgrounds, cognitive and personal strengths. The Board recognises that its debates and decision-making are greatly enriched by a wider range of perspectives and thinking. The Board will encourage any recruitment agencies it engages to nd a range of candidates that meet the objective criteria agreed for each appointment. Appointments will always be based on merit alone. 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 oAered. 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 Listing Rules requirements (UK LR 6.6.6(9) and (10)) regarding the targets 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 de nes senior board positions as Chairman, Chief Executive O2cer (“CEO”), Chief Financial O2cer (“CFO”) or Senior Independent Director (“SID”). As an investment trust with no executive o2cers, the Company has no CEO or CFO. The Board has chosen to align its diversity reporting reference date with the Company’s nancial 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 aK questionnaire. As at 31 August 2025, the Company met all three criteria and there have been no changes since 31 August 2025 to the date of publication of the annual report and nancial statements. The tables below set out the gender and ethnic diversity composition of the Board as at 31 August 2025 and at the date of this report. Number of Number of Percentage senior positions 1 Gender identity Board members of the Board on the Board Men 2 50% 1 Women 2 50% 1 Not speci ed/prefer not to say – – – Number of Number of Percentage senior positions 1 Ethnic background Board members of the Board on the Board White British or other White (including minority-white groups) 3 75% 2 Asian/Asian British 1 25% – Other ethnic group, including Arab – – – Not speci ed/prefer not to say – – – 1 The Company considers the positions of Chairman of the Board and the SID to be senior positions. Financial crime policy The Company continues to be committed to carrying out its business fairly, honestly and openly and operates a nancial crime policy covering bribery and corruption, tax evasion, money laundering, terrorist nancing and sanctions, as well as seeking con rmations that the Company’s service providers’ policies are operating soundly. 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 tra2cking statement under the Modern Slavery ActK 2015. 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 e2ciency action toK report. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 28 Section 3: Strategic Report Stakeholder Engagement – Section 172 Report The Board has identi ed its key stakeholders as the Company’s shareholders, the Investment Manager, other service providers, the companies in which it invests, and the wider society and environment. The table below explains how the Directors have engaged with, and maintained high standards of business conduct and fair treatment of, all stakeholders and outlines key activities undertaken and decisions made by the Board during the year. Shareholders 2024/25 application In May 2025, the Company announced the following measures to support shareholder returns: • A reduction in the investment management fee and a change in the basis of calculation With eAect from 1 September 2025, the investment management fee was reduced from 0.45% to 0.40% and the basis of the fee calculation changed from aK charge on the Company’s NAV to the lower of market capitalisation or NAV. The separate fee for secretarial and administration services was also removed. • Tighter control of discount of share price to NAV The Board’s objective is to reduce the discount’s volatility and look to maintain the discount to NAV within a single-digit range, in normal market conditions. The Company repurchased 1,406,191 ordinary shares during the nancial year to be held in treasury. This represented 2.0% of issued share capital and contributed a 0.18% uplift to the NAV. The Board continues to monitor the discount closely and will take appropriate action as required. Since the year end, the Company repurchased a further 138,490 ordinary shares to be held in treasury. The AGM was held in person in 2024 and questions and feedback from shareholders were welcomed. The Board, along with the Investment Manager, look forward to meeting and interacting with more shareholders at the forthcoming AGM in December 2025. The Company’s web pages continued to be refreshed and enhanced during the year to optimise the user experience for shareholders and investors. Shareholders can, via the Company’s web pages, subscribe to the Schroders’ investment trusts newsletter to receive regular updates on the Company. The Chairman of the Board met with some of the Company’s major shareholders during the year and since the year end. Their views were taken into consideration as part of the Board’s duty to ensure their interests were taken into account. Engagement AGM: The Company welcomes attendance and participation from shareholders at the AGM. Shareholders have the opportunity to meet the Directors and the Manager and ask questions at the AGM. The Board values the feedback it receives from shareholders which is incorporated into Board discussions. Continuation vote: The Company holds aK continuation vote every ve 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 2020 with 99.74% of votes cast in favour. The next continuation vote will be proposed to shareholders at the forthcoming AGM. Publications: The annual and half year results are available on the Company’s web page with their availability announced via the London Stock Exchange. Quarterly commentary on the Company is also published on the Company’s website. Daily NAV updates are issued to provide shareholders with transparent information on the Company’s portfolio. 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 periodically. All investors are oAered the opportunity to meet the Chairman, SID, or other Board members without using the Manager or Company Secretary as aK conduit, by writing to the Company’s registered o2ce. 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 the share trading activity, share price performance and any shareholders’ feedback, as well as any publications or comments in the press. To gain aK deeper understanding of the views of its shareholders and potential investors, the Investment Manager also undertakes investor roadshows during the year. Signi cance Continued shareholder support and engagement are critical to the continuing existence of the Company and the delivery of the long-term strategy. During the year under review to 31 August 2025, 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. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 29 Section 3: Strategic Report Shareholders The Investment Manager The Investment Manager engaged with aK number of its shareholders and investors during the year and regular feedback was provided to the Board. AK number of promotional activities were undertaken during the year including Investment Manager interviews, webinars and coverage in key publications. The Board continues to work with Kepler on promoting the Company through its research notes, which are published once a year, and additionally through article, video, podcasts and event materials. Working with external partners: The Board also engages some external providers, such as investor communications advisors to obtain aK more detailed view on speci c aspects of shareholder communications, such as developing more eAective ways to communicate with investors. 2024/25 application The Board reviewed the portfolio at each quarterly meeting and maintains constructive dialogue with the Investment Manaager. The Board was able to increase its dividend for the 30th consecutive year. The dividend of 14.70p was 0.85x covered by earnings. After payment of the fourth interim dividend, the revenue reserve was £4.3 million, representing 6.33p per ordinary share or over veK months of the annual dividend. 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 consistent, long-term returns in line with the investment objective. The board invites the Investment Manager to attend all Board and certain Committee meetings in order to update the Directors on the performance of the investments and the implementation of the investment strategy and objective. The Management Engagement Committee reviews the performance of the AIFM and Investment Manager, its remuneration and the discharge of its contractual obligations at least annually. 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 (as well as of its other clients) 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 • Drawing on Directors’ individual experience to support the Investment Manager in its monitoring and change management of portfolio companies. Signi cance Holding the Company’s shares oAers investors aK liquid investment vehicle through which they can obtain exposure to the Company’s diversi ed portfolio of investment opportunities. The Investment Manager’s performance is critical for the Company to deliver its investment strategy successfully and meet its objective to provide real growth of income, being growth of income in excess of the rate of in ation, and capital growth as a consequence of the rising income. The key outsourced function is the provision of investment management services by the Investment Manager, making it aK signi cant stakeholder. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 30 Section 3: Strategic Report Investee companies Other service providers Lender 2024/25 application Under delegated authority from the Board, the Management Engagement Committee reviewed all material third party service providers. During the year the Board considered the potential bene ts of changing the Company’s provider of depositary and custodian services. The Board met with and reviewed J.P. Morgan Europe Limited and agreed that it was in the best interest of the Company to change provider to J.P. Morgan Europe Limited with eAect from 5K September 2025. The Board considered the ongoing appointments of its other 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. Engagement The Board maintains contact with its key external providers, both through the Board and Committee meetings, as well as outside of the regular meeting cycle. Their advice, as well as their needs 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. Signi cance In order to operate as an investment trust with aK listing on the London Stock Exchange, the Company relies on a diverse range of advisers to support meeting all relevant obligations. 2024/25 application During the year, gearing was regularly considered. The Company entered into an amendment and restatement agreement in September 2025 with the Bank of Nova Scotia, London Branch in respect of the £30 million revolving credit facility entered into in September 2024. The amendment and renewal of the revolving credit facility was undertaken on a secured basis. 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 manages the relationship with the Company’s lender and reports to the Board at each meeting and as and when required for renewals of terms or negotiation of loan covenants. The Manager provides a monthly statement of compliance of the loan covenants to the lender. Signi cance Availability of funding and liquidity are crucial to the Company’s ability to take advantage of investment opportunities as they arise. 2024/25 application The Board received regular updates on engagement with investee companies from the Investment Manager at its board meetings. 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 19). Engagement The Investment Management team 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 will question the rationale for voting decisions made. By active engagement and exercising voting rights, the Investment Manager actively works with companies to improve corporate standards, transparency and accountability. Signi cance The Board is committed to responsible investing and actively monitors the activities of investee companies through its delegation to the Investment Manager. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 31 Section 3: Strategic Report Wider society and the environment 2024/25 application The Board’s desire for greater engagement reporting has resulted in the inclusion of case studies showcasing how the Investment Manager supports and integrates responsible investing in its investment approach set out in the annual report. Engagement The Board engages with the Investment Manager at each board meeting in respect of its ESG considerations on existing and new investments. Signi cance Whilst strong long-term investment performance is essential for an investment trust, the Board recognises that to provide an investment vehicle that is sustainable over the long-term, both it and the Investment Manager must have regard to ethical and environmental issues that impact society. Hence ESG considerations are integrated into the Investment Manager’s investment process and will continue to evolve. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 32 Section 3: Strategic Report Risk Report 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 signi cant control failings or weaknesses that have been identi ed 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, the depositary, 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 control in place, this can provide only reasonable, and not absolute, assurance against material nancial misstatement or loss and is designed to manage, not eliminate, risk. Both the principal risks and the monitoring system are also subject to robust assessment at least annually. The last assessment took place in November 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 received updates from the Investment Manager, Company Secretary, and other service providers on emerging risks that could aAect the Company. The Board was mindful of the risks posed by volatile markets, geopolitical uncertainty, including the new US Administration, in ation and corresponding interest rate levels which could aAect the asset class. However, these are not factors which explicitly impacted the Company’s performance. These risks are seen as those that exacerbate existing risks and have been incorporated where relevant in the table below. No signi cant control failings or weaknesses were identi ed from the Audit and Risk Committee’s ongoing risk assessment throughout the nancial year and up to the date of this report. The Board is satis ed that it has undertaken aK detailed review of the risks facing the Company and that the internal control environment continues to operate eAectively. 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 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. 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. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 33 Section 3: Strategic Report Risk Mitigation and management Change Strategic Cost base Continuation vote Investment management The Company’s investment objectives may become out of line with the requirements of investors, resulting in aK wide discount of the share price to underlying NAV per share. The Board holds a separate annual strategy meeting to consider the Company’s strategy and performance, the appropriateness of the Company’s investment remit together with opportunities and threats to its business. Share price relative to NAV per share is monitored at quarterly board meetings and the use of buy back authorities is considered on a regular basis. During the year, the Board announced a tighter discount control policy to manage the share price discount to NAV, with the Board aiming to reduce volatility and maintain the discount within aK single-digit range during normal market conditions. The marketing and distribution activity is actively reviewed and there is proactive engagement with shareholders. The ongoing competitiveness of all service provider fees is subject to periodic benchmarking against its competitors. Annual consideration of management fee levels. During the year, the Board negotiated a reduction in the investment management fee from 0.45% to 0.40% and changed the basis of the fee calculation from a charge on the Company’s NAV to the lower of market capitalisation or NAV. The separate fee for secretarial and administration services was also removed. These changes took eAect from 1 September 2025, after the Company’s nancial year end. The transition of custodian and depositary to J.P. Morgan will also contribute to an overall reduction in expenses. The Company’s cost base could become uncompetitive, particularly in light of open-ended alternatives. The Company’s Articles of Association require the Board to put a proposal for the continuation of the Company in its current form to shareholders every veK years. The Manager and the corporate broker engage with shareholders to understand investor sentiment and regularly provide feedback to the Board. The Chairman of the Board met with some of the Company’s major shareholders during the year and since the year end and took their views into consideration as part of the Board’s duty to ensure their interests were taken into account. Directors also engage directly with shareholders at the AGM to understand their views. Shareholders will have the opportunity to vote on the continuation of the Company at the forthcoming AGM in December 2025. Review of the Investment Manager’s compliance with the agreed investment restrictions, investment performance and risk against investment objectives and strategy; relative performance; the portfolio’s risk pro le; and appropriate strategies employed to mitigate any negative impact of substantial changes in markets. Annual review of the ongoing suitability of the Manager, including resources and key personnel risk. The Investment Manager’s investment strategy, if inappropriate, may result in the Company underperforming the market and/or peer group companies, leading to the Company and its objectives becoming unattractive to investors. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 34 Section 3: Strategic Report Risk Mitigation and management Change Economic and market ESG and climate change Gearing Custody The risk pro le of the portfolio is considered and appropriate strategies to mitigate any negative impact of substantial changes in markets are discussed with the Manager. There are inherent risks involved in stock selection. The Investment Manager is experienced and has a long track record in successfully investing in public equity holdings. The Investment Manager monitors the impact of foreign currency movements on the portfolio and is able to rebalance the portfolio towards stocks which are less impacted by changes in foreign currency exchange rates if required. The Company is exposed to the eAect of market uctuations due to the nature of its business. AK signi cant fall in equity markets could have an adverse impact on the market value of the Company’s underlying investments. The portfolio will normally be fairly fully invested and as such will therefore inevitably be exposed to economic and market risk. Changes in general economic and market conditions, such as currency exchange rates, interest rates, in ation rates, industry conditions, tax laws, political events and trends can substantially and adversely aAect the value of investments. Market risk includes the potential impact of events which are outside the Company’s control, such as pandemics, civil unrest and wars. The Investment Manager’s ESG policies, including those relating to climate change, which have been adopted by the Company, are fully integrated into the investment process, as set out in the Strategic Report. Investments are valued at fair value and re ect market participants’ views of ESG and climate change risk on the Company’s portfolio investments. The Investment Manager reports to the Board on ESG and climate change matters, including engagement with investee companies. Any investor feedback is also taken into consideration by the Board. Failure by the Investment Manager to identify potential ESG issues, including the impact of climate change, could impact shareholder returns due to valuation issues in investee companies and the Company’s shares becoming less attractive to investors. Gearing is monitored and strict restrictions on borrowings are imposed: gearing continues to operate within pre-agreed limits so as not to exceed 25% of shareholders’ funds. The Company utilises a credit facility. This arrangement increases the funds available for investment through borrowing. While this has the potential to enhance investment returns in rising markets, in falling markets the impact could be detrimental to performance. The depositary reports on the safe custody of the Company’s assets, including cash and portfolio holdings, which are independently reconciled with the Manager’s records. The review of audited internal controls reports covering custodial arrangements is undertaken. An annual report from the depositary on its activities, including matters arising from custody operations is reviewed. Safe custody of the Company’s assets may be compromised through control failures by the depositary. Risk Mitigation and management Change Accounting, legal and regulatory Service provider Cyber The con rmation of compliance with relevant laws and regulations by key service providers. Shareholder documents and announcements, including the Company’s published annual report are subject to stringent review processes. Procedures have been established to safeguard against disclosure of inside information. In order to continue to qualify as an investment trust, the Company must comply with the requirements of section 1158 of the Corporation Tax ActK 2010. Breaches of the UK Listing Rules, the Companies Act or other regulations with which the Company is required to comply, could lead to a number of detrimental outcomes. Service providers are appointed subject to due diligence processes and with clearly-documented contractual arrangements detailing service expectations. Regular reports are provided by key service providers and the quality of services provided are monitored. Audited internal controls reports from key service providers, including con rmation of business continuity arrangements, are reviewed annually. In respect of the transition of custodian, depositary and fund administration services from HSBC to J.P. Morgan, a detailed transition plan was put in place, closely monitored by the Manager via a Risks, Assumptions, Issues and Dependencies (RAID) log. The Board received quarterly progress updates on the transition, with the Audit Committee Chair acting as the primary point of contact between update cycles. All migration of nancial data from HSBC to J.P. Morgan was subject to close oversight by the Company’s external auditors. The Company has no employees and has delegated certain functions to a number of service providers, principally the Manager, depositary, and registrar. Failure of controls and poor performance of any service provider could lead to disruption, reputational damage or loss. Operational risks may arise from the transfer of custodian, depositary and fund administration services to a new service provider. Operational risks associated with the transition of custodian, depositary, and fund administration services from HSBC to J.P. Morgan. The Company’s service providers are all exposed to the risk of cyber attacks. Cyber attacks could lead to loss of personal or con dential information or disrupt operations. Service providers report on cyber risk mitigation and management at least annually, which includes con rmation of business continuity capability in the event of a cyber attack. In addition, the Board received presentations from the Manager, the registrar and the safekeeping agent and custodian on cyber risk. Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 35 Section 3: Strategic Report Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 36 Section 3: Strategic Report Conclusion Viability statement The Directors have assessed the viability of the Company over aK veK year period, taking into account the Company’s position at 31K August 2025 and the potential impacts of the principal risks andK uncertainties it faces for the review period. The Directors have assessed the Company’s operational resilience and they are satis ed that the Company’s outsourced service providers will continue to operate eAectively. A period of ve years has been chosen asK the Board believes that this re ects aK 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 its assessment of the viability of the Company, the Directors have considered each of the Company’s principal risks and uncertainties detailed on pages 32 to 35 and in particular the impact of a signi cant fall in UK equity markets on the value of the Company’s investment portfolio. The Directors have 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 and on that basis consider that veK years is an appropriate time period. The Directors also considered the bene cial tax treatment the Company is eligible for as an investment trust. If changes to these taxation arrangements were to be made it would aAect the viability of the Company to act as an eAective investment vehicle. Whilst the Company’s Articles of Association require that aK proposal for the continuation of the Company be put forward atK the AGM in 2025, the Directors have no present reason to believe such aK resolution will not be passed by shareholders. The Directors also considered 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 ve year period. 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 pro le, limits imposed on gearing, counterparty exposure, liquidity risk and nancial controls, the Directors have concluded that there is aK reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the ve year period of their assessment. Going concern The Directors have assessed the principal risks, the impact of the emerging risks and uncertainties and the matters referred to in the viability statement, including the continuation vote at the AGM in December 2025. The Board have considered climate risk, political risk and external market factors in their assessment. Based on the work the Directors have performed, they have not identi ed any material uncertainties relating to events or conditions that, individually or collectively, may cast signi cant doubt on the Company’s ability to continue as a going concern for the period assessed by the Directors, being the period to 30K November 2026 which is at least 12K months from the date the nancial statements were authorised for issue. By order of the Board Schroder Investment Management Limited Company Secretary 10 November 2025 Schroder Income Growth Fund plc@Annual Report and Financial Statements 2025 37 Section 3: Strategic Report Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 38 Section 4: Governance Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 39 Section 4: Governance Board of Directors 40 Directors’ Report 42 Audit and Risk Committee Report 45 Management Engagement Committee Report 48 Nomination Committee Report 49 Remuneration Committee Report 51 Directors’ Remuneration Report 52 Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements 55 Section 4: Governance 1 Shareholdings are as at 10 November 2025. Full details of Directors’ shareholdings are set out in the Directors’ Remuneration Report on page 54. Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 40 Section 4: Governance Board of Directors Ewen Cameron Watt Status: Independent non-executive Chairman and Management Engagement Committee Chairman Length of service: Eight years – appointed as a Director in December 2017. Experience: Ewen was a managing director at BlackRock, where he spent the majority of his career (including predecessor companies). From 2011 to 2016, he was chief investment strategist at the BlackRock Investment Institute. Prior to joining BlackRock, he held senior investment roles in the UK and Hong Kong, including as portfolio manager from 1995 to 2010 and head of Asian research for SG Warburg from 1990 to 1995. Ewen is also an independent adviser to a number of endowments and pension funds. He began his career as an analyst at EB Savory Miln in 1978. Contribution to the Board and its Committees: Ewen has extensive nancial services and investment experience. Committee membership: Audit and Risk, Management Engagement, Nomination and Remuneration Committees (Chairman of the Management Engagement Committee). Remuneration for the year ended 31+August 2025: £40,000 per annum. Number of shares held: 18,000. 1 June Aitken Status: Independent non-executive Director and Nomination Committee Chairman Length of service: Two years – appointed as a Director in January 2023. Experience: June has over 30 years’ experience with aNsuccessful equities distribution platform background. SheNworked in partnership with institutional investors and subsequently co-founded an investment management company focused on environmental and responsible equity mandates for pension funds and endowments globally. She brings her knowledge of the investment trust market, including intermediary and retail investor distribution, and experience of risk and governance frameworks. She has previously held non-executive roles with BBGi Global Infrastructure SA, Berkshire Capital ICAV, Asian Masters Fund, Emerging Markets Masters Fund and Aquarius Fund. June is currently audit chairman of JPMorgan Asia Growth and Income plc and chairman of CC Japan Income & Growth Trust plc. Contribution to the Board and its Committees: June brings broad based experience in investment trusts and nancial services including distribution, responsible investment and governance. Committee membership: Audit and Risk, Management Engagement, Nomination and Remuneration Committees (Chairman of the Nomination Committee). Remuneration for the year ended 31+August 2025: £28,750 per annum. Number of shares held: 11,457. 1 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 and Remuneration Committees. Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 41 Section 4: Governance 1 Shareholdings are as at 10 November 2025. Full details of Directors’ shareholdings are set out in the Directors’ Remuneration Report on page 54. 2 Mr McIntyre’s shareholding as at 10 November 2025 includes the holding of a connected person. Fraser McIntyre Status: Independent non-executive Director and Audit and Risk Committee Chairman Length of service: Six years – appointed as a Director in December 2019. Experience: Fraser has over 30 years of experience in nancial services, including asset management, investment banking and audit. He started his career auditing nancial services companies with PwC before working in the prime brokerage/equity divisions of two investment banks, Goldman Sachs and UBS. He has been COO at several multi-billion dollar hedge funds where he was responsible for overseeing all operational areas of the business, including nance and accounting, operations, risk, legal and compliance. He has sat on a number of fund and management company boards whose investments covered a wide range of asset classes across traditional and alternative strategies. Fraser is a Chartered Accountant. He has held a variety of executive positions within the nancial services sector, most recently as Chief Operating O?cer of Cantab Capital LLP. He also operates a consultancy business advising hedge funds. Contribution to the Board and its Committees: Fraser brings his experience in nancial services, including asset management, investment banking and audit. Committee membership: Audit and Risk, Management Engagement, Nomination and Remuneration Committees (Chairman of the Audit and Risk Committee). Remuneration for the year ended 31+August 2025: £34,000 per annum. Number of shares held: 24,715. 1,2 Victoria Muir Status: Senior Independent non-executive Director and Remuneration Committee Chairman Length of service: Six years – appointed as a Director in July 2019. Experience: Victoria is a Chartered Director and a Fellow of the Institute of Directors who has chaired or served on a number of boards and committees, many regulated or listed, in an executive or non-executive capacity. She was an executive director of Royal London Asset Management Ltd and some of its sister companies, before pursuing aNcareer as aNnon-executive director. She is a director of Premier Miton Global Renewables Trust plc and its subsidiary PMGR Securities 2025 plc. Victoria has 30Nyears of experience in nancial services, including asset management and inter-dealer broking. Her experience covers aNbroad range of products and services including investment trusts, segregated accounts, pension funds, insurance products, VCTs and hedge funds and a wide breadth of asset classes across both traditional and alternative investments. Contribution to the Board and its Committees: Victoria brings her experience in nancial services, particularly asset management with a focus on distribution, strategy and governance. Committee membership: Audit and Risk, Management Engagement, Nomination and Remuneration Committees (Chairman of the Remuneration Committee). Remuneration for the year ended 31+August 2025: £28,750 per annum. Number of shares held: 3,500. 1 Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 42 Section 4: Governance Directors’ Report Directors and o!cers Chairman The Chairman is an independent non-executive Director who is responsible for leadership of the Board and ensuring its eFectiveness in all aspects of its role. The Chairman’s other signi cant commitments are detailed on page 40. He has no con icting relationships. Senior Independent Director (“SID”) The SID acts as a sounding board for the Chairman, meets with major shareholders as appropriate, provides a channel for any shareholder concerns regarding the Chairman and takes the lead in the annual evaluation of the Chairman by the independent Directors. Company Secretary Schroder Investment Management Limited provides company secretarial support to the Board and is responsible for assisting the Chairman 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 amcompanysecretary@schroders.com. Corporate governance statement The Company is committed to high standards of corporate governance and has implemented a framework for corporate governance which it considers to be appropriate for an investment trust. The FCA requires all UK listed companies to disclose how they have applied the principles and complied with the provisions of the UKNCorporate Governance Code 2018 (the “UKNCode”) issued by theNFinancial Reporting Council (“FRC”). The Board has considered the principles and provisions of the AICNCode of Corporate Governance (the “AICNCode”) which addresses those set out in the UK Code, as well as setting out additional Provisions on issues that are of speci c relevance to the Company. The Board considers that reporting against the Principles and Provisions of the AIC Code, which has been endorsed by the FRC provides more relevant information to shareholders. The AIC Code is available on the AIC website (www.theaic.co.uk). ItNincludes 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 Board con rms that the Company has complied with the AICNCode, in so far as they apply to the Company’s business, throughout the year under review. As all of the Company’s day-to-day management and administrative functions are outsourced to third parties, it has no executive directors, employeesNor internal operations and therefore has not reportedNinNrespect of the following UK Code Provisions: • the role of the executive directors and senior management; • the need for an internal audit function; and • executive directors’ remuneration. Role and operation of the Board The Board 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 24 to 36 sets out further detail of how the Board reviews the Company’s strategy, risk management and internal controls and also includes other information required for the Directors’ Report, and is incorporated by reference. A formal schedule of matters speci cally reserved for decision by the Board has been de ned and a procedure adopted for Directors, in the furtherance of their duties, to take independent professional advice at the expense of the Company. The Chairman ensures that all Directors receive relevant management, regulatory and nancial 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. The Board meets at least quarterly and receives and considers reports regularly from the Manager and other key advisers and ad hoc reports and information are supplied to the Board as required. 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 underlying NAV; promotion of the Company; and services provided by third parties. Additional meetings of the Board are arranged as required. The Board is satis ed that it is of su?cient size with an appropriate balance of diverse skills and experience, independence and knowledge of the Company, its sector and the wider investment trust industry, to enable it to discharge its duties and responsibilities eFectively and that no individual or group of individuals dominates decision making. The Board has approved a policy on Directors’ con icts of interest. Under this policy, Directors are required to disclose all actual and potential con icts of interest to the Board as they arise for consideration and approval. The Board may impose restrictions or refuse to authorise such con icts if deemed appropriate. NoNDirectors have any connections with the Manager, shared directorships with other Directors or material interests in any contract which is signi cant to the Company’s business. The Directors submit their annual report and financial statements of the Company for the year ended 31 August 2025. Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 43 Section 4: Governance Committees In order to assist the Board in ful lling 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, are outlined over the next few pages. The reports of the Audit and Risk Committee, Nomination Committee, Remuneration Committee and Management Engagement Committee are incorporated and form part of the Directors’ Report. Each Committee’s eFectiveness was assessed, and judged to be satisfactory, as part of the Board’s annual review of the Board and its Committees. Provision of information to the Auditor The Directors at the date of approval of this report con rm 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’ attendance at meetings The number of scheduled meetings of the Board and its Committees held during the nancial year, and the attendance of individual Directors, is shown below. Whenever possible all Directors attend the AGM. Audit Management and Risk Engagement Nomination Remuneration Board Committee Committee Committee Committee Ewen Cameron Watt 4/4 2/2 1/1 1/1 1/1 June Aitken 4/4 2/2 1/1 1/1 1/1 Fraser McIntyre 4/4 2/2 1/1 1/1 1/1 Victoria Muir 4/4 2/2 1/1 1/1 1/1 In addition to the scheduled quarterly Board meetings, the Board met once during the year to review and focus on the Company’s strategy and on additional occasions for ad-hoc business. The Board is satis ed that the Chairman and each of the other non-executive Directors commit su?cient time to the aFairs of the Company to ful l their duties. 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 de ned by the AIFM Directive and has appointed Schroder Unit Trusts Limited (“SUTL”) as the Alternative Investment Fund Manager (“AIFM” or “Manager”). In accordance with the terms of an AIFM agreement which is governed by the laws of England and Wales, the appointment can be terminated by either party on 12 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. Details of the amounts paid to the Manager are detailed in note 4 on page 68. The Manager 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 Chairman, other Board members or the corporate broker as appropriate. The Manager has delegated investment management, accounting and company secretarial services to another wholly owned subsidiary of Schroders plc, Schroder Investment Management Limited. The Manager has appropriate professional indemnity insurance cover in place. The Schroders Group manages £776.6 billion (as at 30 June 2025) on behalf of institutional and retail investors, nancial institutions and high net-worth clients from around the world, invested in aNbroad range of asset classes across equities, xed income, multi-asset and alternatives. Fees payable to the Manager During the year under review, and under the terms of the AIFM Agreement, a management fee was payable at a rate of 0.45% per annum of chargeable assets. A further fee of £150,000 plus VAT per annum was also payable to cover administration and company secretarial fees. The management fee payable in respect of the year ended 31NAugust 2025 amounted to £1,151,000 (2024: £1,090,000). Details of all amounts payable to the Manager are set out in noteN4 on page 68. With eFect from 1 September 2025, the Manager shall be entitled to a management fee per annum, calculated based on the lower of 0.40% of (1) the Company’s market capitalisation; and (2) the cum net asset value of the Company. Additionally, the separate fee to cover administration and company secretarial fees is removed. 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 the Company’s investment objectives over the longer term. Thus, the Board considers that the Manager’s appointment under the terms of the AIFM agreement, details of which are set out above, is in the best interests of shareholders as a whole. Depositary With eFect from 5 September 2025, J.P. Morgan Europe Limited were appointed to provide depositary and custodian services to the Company, replacing HSBC Bank plc who had provided these services for the year under review and up until 5 September 2025. J.P. Morgan Europe Limited, which is authorised by the Prudential Regulation Authority and regulated by the FCA and the Prudential Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 44 Section 4: Governance Regulation Authority, carries out certain duties of aNdepositary speci ed in the AIFM Directive including, in relation to the Company: • safekeeping of the assets of the Company which are entrusted to it; • cash monitoring and verifying the Company’s cash ows; 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 o?ce when aNnew 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. Share capital and substantial share interests During the year under review the Company repurchased a total of 1,406,191Nshares of 10 pence each which were placed in treasury. As at 31NAugust 2025, the Company had 69,463,343 ordinary shares of 10p in issue, of which 1,444,191 were held in treasury. Since the year end, a further 138,490 shares have been repurchased to be held in treasury and as at 10 November 2025, the Company had 69,463,343 ordinary shares of 10p in issue, of which 1,582,681 ordinary shares were held in treasury. Accordingly, the total number of voting rights in the Company at 10 November 2025 is 67,880,662. Details of changes to the Company’s share capital during the year under review are given in note 14 to the nancial statements on pageN72. All shares in issue rank equally with respect to voting, dividends and any distribution on windingNup. As at 31 August 2025, the Company has received noti cations in accordance with the FCA Disclosure Guidance and Transparency Rule 5.1.2R of the following interests in 3% or more of the voting rights attached to the Company’s issued share capital. The Company is reliant on investors to comply with these regulations, and certain investors may be exempted from providing these. As such, this should not be relied on as an exhaustive list of shareholders holding above 3% of the Company’s voting rights. % of Number of voting shares held 1 rights 1 1607 Capital Partners, LLC 3,507,871 5.14 Charles Stanley & Co. Limited 3,422,693 4.98 1 As at date of noti cation. There have been no noti ed changes to the above holdings since the year end. Directors’ and o!cers’ liability insurance and indemnities Directors’ and o?cers’ 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 judgment is given in their favour by the court. This is aNqualifying third party indemnity provision and was in place throughout the year under review and to the date of this report. By order of the Board Schroder Investment Management Limited Company Secretary 10 November 2025 Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 45 Section 4: Governance Audit and Risk Committee Report Ongoing risk review All Directors are members of the Committee. Fraser McIntyre is the Chairman of the Committee. The Board has satis ed itself that at least one of the Committee’s members has recent and relevant nancial experience and that the Committee as a whole has competence relevant to the sector in which the Company operates. The AIC Code permits the Chairman of the Board to be a member of the Committee, but not its chairman, provided that they were independent upon appointment. Given the Board’s size, the Directors believe it is appropriate for the Chairman of the Board, who was independent on appointment, to remain a member of the Committee and continue to bene t from his experience and knowledge. The activities of the Committee were considered as part of the internally facilitated board appraisal process completed in accordance with standard governance arrangements. The evaluation found that the Committee functioned well, with the right balance of membership, skills and experience. The Committee’s terms of reference are available on the Company’s web pages: www.schroders.co.uk/incomegrowth Approach The Committee’s key roles and responsibilities are set out in the table below. Risk management and internal controls Principal and emerging risks and uncertainties To establish a process for identifying, assessing, managing and monitoring principal and emerging risks and uncertainties of the Company, and an explanation of how these are being managed or mitigated. Internal controls The Committee is responsible for reviewing the adequacy and eFectiveness of the Company’s internal controls and the whistleblowing procedures operated by the AIFM and other services providers. Financial reports and valuation Financial statements To monitor the integrity of the nancial statements of the Company and any formal announcements relating to the Company’s nancial performance and valuation. 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 nancial statements. The Committee is also responsible for reviewing 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, inNrelation to the appointment, re-appointment, eFectiveness, any non-audit services by the Auditor and removal of the external Auditor. To review their independence, and to approve their remuneration and terms of engagement. To review the audit plan and engagement letter. Review of external auditors and their work Risk management Internal controls Accounting policies Half year and annual reports and judgements The responsibilities and work carried out by the Audit and Risk Committee during the year under review are set out in the following report. The duties and responsibilities of the Committee, which include monitoring the integrity of the Company’s financial reporting and internal controls, are set out in further detail below: Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 46 Section 4: Governance Application during the year The Committee met twice during the year under review and the table below sets out how the Committee discharged its duties during the year. Further details on attendance can be found on page 43. Risk management and internal controls Principal and emerging risks and uncertainties Reviewed the principal and emerging risks and uncertainties faced by the Company together with the systems, processes and oversight in place to manage and mitigate them. Service provider controls Consideration of the operational controls maintained by the Manager, depositary and registrar. Internal controls and risk management Consideration of several key aspects of internal control and risk management operating within the Manager, depositary and registrar, including assurance reports and presentations on these controls. 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 fee Consideration of methodology used to calculate the fees, matched against the criteria set out in the AIFM agreement. Overall accuracy of the annual report and nancial statements Consideration of the annual report and nancial statements and the letter from the Manager in support of the letter of representation to the Auditor. Valuation and existence of holdings Quarterly review of portfolio holdings and assurance reports. Audit Meetings with the Auditor The Auditor attended meetings to present their audit plan and the ndings of the audit. The Committee met the Auditor without representatives of the Manager present. Effectiveness of the independent audit process and Auditor performance Evaluated the eFectiveness of the independent audit rm and process prior to making a recommendation that it should be re-appointed at the forthcoming AGM. Evaluated the Auditor’s performance against agreed criteria including: quali cation; knowledge, expertise and resources; independence policies; eFectiveness of audit planning; adherence to auditing standards; and overall competence, alongside feedback from the Manager on the audit process. Professional scepticism of the Auditor was questioned and the Committee was satis ed with the Auditor’s replies. Auditor independence Ernst & Young LLP has provided audit services to the Company since it was appointed on 17 May 2019. The Auditor is required to rotate the senior statutory auditor every ve years. There are no contractual obligations restricting the choice of external auditor. This is the first year that the senior statutory auditor, Jennifer Rogan, has conducted the audit of the Company’s nancial statements. The Committee was satis ed that there were no circumstances that aFected the independence or objectivity of the Auditor. Audit tender An audit tender was last undertaken in 2019. Audit results Met with and reviewed a comprehensive report from the Auditor which detailed the results of the audit, compliance with regulatory requirements, safeguards that have been established, including auditor independence and objectivity and compliance with the FRC Ethical Standard, and on their own internal quality control procedures. Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 47 Section 4: Governance Risk management and internal controls Compliance with the investment trust qualifying rules in S1158 of the Corporation Tax Act 2010 Consideration of the Manager’s report con rming compliance. Financial reports and valuation Fair, balanced and understandable Reviewed the annual report and nancial statements to advise the Board whether it was fair, balanced and understandable. Reviewed whether performance measures were re ective of the business, whether there was adequate commentary on the Company’s strengths and weaknesses and that the annual report and nancial statements, taken as a whole was consistent with the Board’s view of the operation of the Company. Going concern and viability Reviewed the position and made recommendations to the Board in relation to whether it considered it appropriate to adopt the going concern basis of accounting in preparing its annual and half year report, including the consideration of the upcoming continuation vote. The Committee is also responsible for reviewing the disclosures made by the Company in the viability statement. Audit Provision of non-audit services by the Auditor The Committee has reviewed the FRC’s Guidance on Audit Committees and has formulated a policy on the provision of non-audit services by the Company’s Auditor. The Committee has 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 nancial 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 under review. Consent to continue as Auditor Ernst & Young LLP indicated to the Committee its willingness to continue to act as Auditor. Recommendations made to, and approved by, the Board: • The Committee recommended that the Board approve the annual and half year report and nancial statements. • The Committee recommended that the going concern assumption be adopted in the annual report and nancial statements and the explanations set out in the viability statement. • As a result of the work performed, the Committee has concluded that the annual report and nancial statements for the year ended 31NAugust 2025, taken as aNwhole, 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 ndings to the Board. The Board’s conclusions in this respect are set out in the Statement of Directors’ Responsibilities on page 55. • Having reviewed the performance of the Auditor as described above, the Committee considered it appropriate to recommend the Auditor’s re-appointment. Resolutions to re-appoint Ernst & Young LLP as Auditor to the Company, and to authorise the Directors to determine their remuneration will be proposed at the forthcoming AGM. By order of the Board Fraser McIntyre Chairman of the Audit and Risk Committee 10 November 2025 Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 48 Section 4: Governance Management Engagement Committee Report All Directors are members of the Committee. Ewen Cameron Watt is the Chairman of the Committee. The activities of the Committee were considered as part of the internally facilitated board appraisal process completed in accordance with standard governance arrangements. The evaluation found that the Committee functioned well, with the right balance of membership, skills and experience. Its terms of reference are available on the Company’s web pages, www.schroders.co.uk/incomegrowth. Approach The Committee’s key roles and responsibilities are set out in the table below. 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, was in the best interests of shareholders as aNwhole. • That with eFect from 1 September 2025, the investment management services fee be reduced, the basis for its calculation be amended, and the separate secretarial and administration fee be eliminated. • That the Company’s service providers’ performance remained satisfactory. 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 on an absolute and relative basis, receiving input from the Company’s broker, including peer group and industry gures, as well as the structure of the fees. • reviews the appropriateness of the Manager’s contract, including terms such as notice period. • assesses whether the Company receives appropriate administrative, accounting, company secretarial and marketing support from the Manager. 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 • 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 the Manager The Committee undertook a detailed review of the Manager’s performance and agreed that it has the appropriate depth and quality of resource to deliver superior returns over the longer term. The Committee reviewed the terms of the AIFM agreement and agreed they remained t for purpose. The Committee also engaged with the Manager and, eFective 1 September 2025, agreed aNreduction in the investment management services fee, a change in the basis of its calculation, and the elimination of the separate secretarial and administration fee. The Committee reviewed the other services provided by the Manager and agreed they were satisfactory. Oversight of other service providers With eFect from 5 September 2025, J.P. Morgan Europe Limited was appointed to provide depositary and custodian services to the Company, replacing HSBC Bank plc. The annual review of each of the service providers was satisfactory. The Committee noted that the Audit and Risk Committee had undertaken a detailed evaluation of the internal controls of the Manager, registrar, and depositary and custodian. The Management Engagement Committee is responsible for (1) the monitoring and oversight of the Manager’s performance and fees, and confirming the Manager’s ongoing suitability, and (2) reviewing and assessing the Company’s other service providers, including reviewing their fees. Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 49 Section 4: Governance 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. Selection and ongoing assessment of Directors All Directors are members of the Committee. June Aitken is the Chairman of the Committee. The activities of the Committee were considered as part of the internally facilitated board appraisal process completed in accordance with standard governance arrangements. The evaluation found that the Committee functioned well, with the right balance of membership, skills and experience. Its terms of reference are available on the Company’s web pages, www.schroders.co.uk/incomegrowth. Approach The Committee’s key roles and responsibilities are set out in the table below. Selection and induction • The Committee prepares a job speci cation for each role and considers the use of an independent recruitment rm. For the Chairman and Chairmen of the Committees, the Committee also considers current Board members. • Job speci cation outlines the knowledge, professional skills, personal qualities and experience requirements. • Potential candidates are assessed against 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 • The Committee assesses each Director annually and considers if an external evaluation should take place. • Evaluation focuses on whether each Director continues to demonstrate commitment to their role and provides aNvaluable contribution to the Board during the year, taking into account time commitment, independence, con icts and training needs. • Following the evaluation, the Committee provides a recommendation to shareholders with respect to the annual re-election of Directors at the AGM. • All Directors retire at the AGM and their re-election is subject to shareholder approval. Succession • Taking into consideration diversity and the need for regular refreshment and orderly succession, the Board’s policy is that, in ordinary circumstances, no individual should serve longer than nineNyears as a Director of the Company. Extensions beyond this period may be considered where the Board believes it is in the best interests of the Company. Each Director will be subject to annual re-election at the AGM. • The Committee reviews the Board’s current and future needs at least annually. Should any need be identi ed the Committee will initiate the selection process. • The Committee oversees the handover process for retiring Directors. Application of succession policy Selection Induction Annual evaluation Annual review of succession policy Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 50 Section 4: Governance Application during the year Selection and induction • No Director recruitment processes took place in the year under review. Board evaluation • The annual Board evaluation, including evaluation of its Committees, was undertaken in July 2025 and concluded that the Board and its Committees functioned well, with the right balance of membership, skills and experience. For the year under review, the evaluation was undertaken internally by the completion of questionnaires. • The Committee also reviewed each Director’s time commitment and independence by reviewing a complete list of appointments, including pro bono, not for pro t roles, to ensure that each Director remained free from con ict and had su?cient time available to discharge each of their duties eFectively. During the review, the Committee was also mindful of the concept of ‘overboarding’ and considered the time, nature and complexity of each Director’s other roles and concluded that it did not believe that any of the Directors were 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 40 and 41. • All Directors were considered to be independent in character and judgement and the Committee reviews this information annually. • Based on its assessment, the Committee provided individual recommendations for each Director’s re-election. Succession • The Committee believes it is important for the Board to have the appropriate skills and diversity and has reviewed composition and succession plans with these in mind. • The Board has complied with the FCA Listing Rule in relation to diversity and provided necessary disclosures on pageN27. • The Committee reviewed the succession policy and agreed it was still t for purpose. Recommendations made to, and approved by, the Board: • That all Directors continue to demonstrate commitment to their roles, provide a valuable contribution to the deliberations of the Board, contribute towards the Company’s long-term success, and remain free from con icts with the Company and its Directors and should all be recommended for re-election by shareholders at the forthcoming AGM. Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 51 Section 4: Governance Remuneration Committee Report The Remuneration Committee is responsible for making recommendations to the Board about the remuneration of the Directors. All Directors are members of the Committee. Victoria Muir is the Chairman of the Committee. The activities of the Committee were considered as part of the internally facilitated board appraisal process completed in accordance with standard governance arrangements. The evaluation found that the Committee functioned well, with the right balance of membership, skills and experience. Its terms of reference are available on the Company’s web pages, www.schroders.co.uk/incomegrowth. Approach The Committee’s key roles and responsibilities are set out in the table below. Directors’ fees • The Committee determines and agrees with the Board the framework or broad policy for the remuneration of the Directors. The objective of the policy shall be to ensure that members of the Board are, in a fair and responsible manner, rewarded for their individual contributions to the success of the Company. No Director shall be involved in any decisions as to their own remuneration outcome. • The Committee reviews the ongoing appropriateness and relevance of the remuneration policy. • The Committee reviews Director remuneration annually and makes recommendations on the fees paid to non-executive Directors in light of Directors’ workloads, levels of responsibility and industry norms. • The Committee ensures that each year the Remuneration Report is put to shareholders for approval as an advisory vote at the AGM, and the remuneration policy is put to shareholders for approval every three years at the AGM. Application during the year Directors’ fees • The remuneration framework, as set out in the Directors’ Remuneration Report, was unchanged during the year. • Subject to shareholder approval, by way of an ordinary resolution at the forthcoming AGM, that the maximum aggregate level of fees paid to Directors be increased from £150,000 per annum to £200,000. • The Committee reviewed Directors’ fees, using external benchmarking, and recommended that Directors’ fees be increased with eFect from 1 September 2025. • The Remuneration Report will be put to shareholders for approval at the forthcoming AGM. Recommendations made to, and approved by, the Board: • That the remuneration framework and remuneration policy remained appropriate. • That the Remuneration Report should be put to shareholders for approval as an advisory vote at the forthcoming AGM. • That the maximum aggregate level of fees paid to Directors be increased from £150,000 per annum to £200,000 subject to shareholder approval by way of an ordinary resolution at the forthcoming AGM. The Board believes that to enable exibility in respect of succession planning, and in particular to recruit new Directors from time to time, that it is prudent to keep remuneration at or around market levels, providing for modest fee increases in the future and also for a higher level of aggregate fees during years where new Directors are appointed as part of the Board’s succession planning. • That Directors’ fees be increased to the following with eFect from 1 September 2025: Chairman £42,500; Audit and Risk Committee Chairman £35,000; Director £29,500. Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 52 Section 4: Governance Directors’ Remuneration Report Introduction The Directors’ remuneration policy is subject to a binding vote every three years. The shareholders approved the Directors’ remuneration policy at the 2023 AGM and the current policy provisions will apply until the policy is next considered by shareholders at the AGM in 2026. For reasons detailed in the Remuneration Committee Report on page 51, the Board is seeking approval from shareholders at the forthcoming AGM to increase the Directors’ aggregate annual remuneration cap of £150,000 to £200,000. The Board notes that Article 95 provides that the fee cap can be increased by way of ordinary resolution, rather than requiring the Company to amend its Articles of Association with the approval of a special resolution. If this ordinary resolution is passed, the aggregate level contained in the remuneration policy will change to £200,000. The current policy is below. Additionally, an ordinary resolution to approve this report will be put to shareholders at the forthcoming AGM. At the AGM held on 13 December 2023, 97.74% of the votes cast (including votes cast at the Chairman’s discretion) in respect of approval of the Directors’ remuneration policy were in favour, while 2.26% were against. 15,180 votes were withheld. At the AGM held on 11 December 2024, 98.21% of the votes cast (including votes cast at the Chairman’s discretion) in respect of approval of the Directors’ Remuneration Report for the year ended 31NAugust 2024 were in favour, while 1.79% were against. 46,493 votes were withheld. Directors’ remuneration policy The determination of the Directors’ fees is the responsibility of the Remuneration Committee, which makes recommendations to the Board. It is the Remuneration Committee’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 ful l in respect of Board and Committee responsibilities, and time committed to the Company’s aFairs, 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 £150,000 per annum and any increase in this level requires approval by the Board and the Company’s shareholders. The Chairman of the Board and the Chairman of the Audit and Risk Committee each receive fees at aNhigher rate than the other Directors to re ect their additional responsibilities. Directors’ fees are set at aNlevel to recruit and retain individuals of su?cient calibre, with the level of knowledge, experience and expertise necessary to promote the success of the Company in reaching its short and long-term strategic objectives. Any Director who performs services which in the opinion of the Directors are outside the scope of the ordinary duties of aNdirector, may be paid additional remuneration to be determined by the Directors, subject to the previously mentioned fee cap. The Board and its committees exclusively comprise non-executive Directors. No Director past or present has an entitlement to aNpension 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, although Directors have a letter of appointment. Directors do not receive exit payments and are not provided with any compensation for loss of o?ce. No other payments are made toNDirectors other than the reimbursement of reasonable out-of-pocket expenses incurred in attending to the Company’s business. The Board did not consult with any individual shareholders before setting this remuneration policy, although feedback from the Company’s Manager and corporate broker on shareholder views was considered. Any speci c comments on the policy received from shareholders would be considered on a case-by-case basis. Implementation of policy The terms of Directors’ letters of appointment are available for inspection at the Company’s registered o?ce address during normal business hours and during the AGM at the location of such meeting. 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, as well as industry norms and factors aFecting the time commitment expected of the Directors. New directors are subject to the provisions set out in this remuneration policy. Directors' report on remuneration This report sets out how the remuneration policy was implemented during the year ended 31 August 2025. On behalf of the Board, I am pleased to present the Directors’ Remuneration Report for the year ended 31 August 2025. 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. Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 53 Section 4: Governance Fees paid to Directors The following amounts were paid by the Company to Directors for their services in respect of the year ended 31 August 2025 and the preceding nancial year. Directors’ remuneration is all xed; they do not receive any variable remuneration. The performance of the Company over the nancial year is presented on inside front cover and page 5, under the heading “Performance Summary”. Change in annual fee over Fees Taxable bene ts 1 Total years ended 31 August 2025 2024 2025 2024 2025 2024 2025 2024 2023 2022 2021 Director £ £ £ £ £ £ % % % % % Ewen Cameron Watt (Chairman) 2 40,000 38,000 2,101 1,721 42,101 39,721 6.0 14.7 32.3 9.0 (1.1) June Aitken 3 28,750 28,000 – – 28,750 28,000 2.7 54.7 0.0 n/a n/a Fraser McIntyre 34,000 33,000 539 482 34,539 33,482 3.2 (0.8) 8.5 12.6 71.3 Victoria Muir 28,750 28,000 792 704 29,542 28,704 2.9 0.0 10.3 8.3 (1.2) 131,500 127,000 3,432 2,907 134,932 129,907 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 Chairman on 15 December 2022. 3 Appointed to the Board on 1 January 2023. The information in the above table has been audited. Consideration of matters relating to Directors’ remuneration Directors’ remuneration was last reviewed by the Remuneration Committee and the Board in July 2025. The members of the Committee and Board at the time that remuneration levels were considered were as set out on pages 40 and 41. Although no external advice was sought in considering the levels of Directors’ fees, information on fees paid to directors of other investment trusts managed by Schroders and peer group companies provided by the corporate broker was taken into consideration together with independent third party research. Following this review, the Board agreed the Remuneration Committee’s recommendation that with eFect from 1 September 2025, Directors’ annual fees should be increased to £42,500 for the Chairman, £35,000 for the Audit and Risk Committee Chairman and £29,500 for Directors. The Remuneration Committee believes that the level of increase and resulting fees appropriately re ects prevailing market rates for an investment trust of the Company’s size, the increasing complexity of regulation and resultant time spent by the Directors on Company matters, and will also enable the Company to attract appropriately experienced additional Directors in the future. The maximum level of fees payable, in aggregate, to the Directors of the Company is currently £150,000 per annum. Subject to shareholder approval at the forthcoming AGM, this will increase to £200,000 per annum. Directors’ annual report on remuneration Expenditure by the Company on remuneration and distributions to shareholders The table below compares the remuneration payable to Directors to distributions paid to shareholders during the year under review and the prior nancial year. In considering these gures, shareholders should take into account the Company’s investment objectives. Year ended Year ended 31 August 31 August 2025 2024 Change £000 £000 % Remuneration payable to Directors 135 130 3.8 Distributions paid to shareholders – Dividends 10,089 9,860 – Share buybacks 4,312 102 Distributions paid to shareholders 14,401 9,962 44.6 Performance graph A graph showing the Company’s share price total return compared with the FTSE All-Share Index total return, over the last ten years, is set out below, per Schedule 8, section 18, 4 (c) of the Companies Act 2006. The FTSE All-Share Index has been selected as an appropriate comparison based on the composition of the Company’s investment portfolio. Source: Morningstar. Rebased to 100 at 31 August 2015. 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 nancial year under review are set out below. At At 31 August 1 September 2025 1 + 2024 1 + Ewen Cameron Watt 18,000 13,000 June Aitken 11,287 10,680 Fraser McIntyre 24,480 16,140 Victoria Muir 3,500 3,500 1 Ordinary shares of 10p each. Since the year ended 31 August 2025, Ms Aitken purchased 170 ordinary shares through a dividend reinvestment plan (DRIP). Following this purchase, Ms Aitken’s interests increased to 11,457 ordinary shares in the Company. Further, a connected person to MrNMcIntyre purchased 235 ordinary shares through a DRIP. Following this purchase, Mr McIntyre’s interests increased to 24,715 ordinary shares in the Company. There have been no other noti ed changes to Directors’ interests in the shares of the Company. The information in the above table has been audited. Victoria Muir Chairman of the Remuneration Committee 10 November 2025 Share price total return Benchmark total return 80 100 120 140 160 180 200 220 Aug-25 Aug-24 Aug-23 Aug-22 Aug-21 Aug-20 Aug-19 Aug-18 Aug-17 Aug-16 Aug-15 Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 54 Section 4: Governance Schroder Income Growth Fund plcDAnnual Report and Financial Statements 2025 55 Section 4: Governance Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements Company law requires the Directors to prepare nancial statements for each nancial year. Under that law, the Directors have prepared the nancial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Directors must not approve the nancial statements unless they are satis ed that they give a true and fair view of the state of aFairs of the Company and of the return or loss of the Company for that period. InNpreparing these nancial statements, the Directors are required to: • select suitable accounting policies and then apply them consistently; • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the nancial statements; and • make judgements and accounting estimates that are reasonable and prudent. The Directors are responsible for keeping adequate accounting records that are su?cient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the nancial position of the Company and enable them to ensure that the nancial 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 Company’s web pages. Legislation in the United Kingdom governing the preparation and dissemination of nancial statements may diFer from legislation in other jurisdictions. Directors’ statement Each of the Directors, whose names and functions are listed on pagesN40 and 41, con rm that to the best of their knowledge: • the nancial 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, nancial position and loss of the Company; • the annual report and nancial 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 and uncertainties that it faces; and • the annual report and nancial 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 Ewen Cameron Watt Chairman 10 November 2025 The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulation. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 56 Section 5: Financial Statements Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 57 Section 5: Financial Statements Independent Auditor’s Report 58 Statement of Comprehensive Income 63 Statement of Changes in Equity 64 Statement of Financial Position 65 Notes to the Financial Statements 66 Section 5: Financial Statements Opinion We have audited the nancial statements of Schroder Income Growth Fund plc for the year ended 31 August 2025 which comprise the Statement of comprehensive income, the Statement of changes in equity, Statement of Financial Position and the related notes 1 to 22, including a summary of signi cant accounting policies. The nancial 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 nancial statements: • give a true and fair view of the company’s a airs as at 31 August 2025 and of its pro t 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 nancial statements section of our report. We believe that the audit evidence we have obtained is su cient 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 nancial statements in the UK, including the FRC’s Ethical Standard as applied to public interest entities, and we have ful lled 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 nancial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the nancial 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 the following procedures; • Con rmation of our understanding of the Company’s going concern assessment process and engagement with the Directors and the Company Secretary to determine if all key factors were considered in their assessment. • Inspection of the Directors’ assessment of going concern, including the revenue forecast, for the period to 30 November 2026 which is at least 12 months from the date the nancial statements will be 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. • Review of the factors and assumptions, including the impact of the current economic environment, 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 are appropriate to be able to make an assessment for the Company. • Consideration of the mitigating factors included in the revenue forecasts 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 in order to cover working capital requirements should revenue decline signi cantly. • Review of Directors’ assessment of the risk of breaching the debt covenants as a result of a reduction in the value of the Company’s portfolio. We recalculated the Company’s compliance with debt covenants in the scenarios assessed by the Directors and performed reverse stress testing in order to identify what factors would lead to the Company breaching the nancial covenants. • Assess the impact of the upcoming continuation vote at the December 2025 AGM on the going concern basis of preparation, by considering the current and historical performance of the Company and reviewing the Directors’ communications with shareholders regarding their sentiment for the continuation vote and considering the Directors’ assessment of the likelihood of success of the continuation vote against the going concern assumption. • Review of 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 identi ed any material uncertainties relating to events or conditions that, individually or collectively, may cast signi cant doubt on the company’s ability to continue as a going concern for a period assessed by the directors, being the period to 30 November 2026 which is at least 12 months from when the nancial 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 nancial 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 classi cation of special dividends as revenue or capital items in the Statement of Comprehensive Income. • Risk of incorrect valuation or ownership of the investment portfolio. Materiality • Overall materiality of £2.36 million which represents 1% of shareholders’ funds. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 58 Section 5: Financial Statements Independent Auditor’s Report to the Members of Schroder Income Growth Fund plc An overview of the scope of our audit Tailoring the scope Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for the company. This enables us to form an opinion on the nancial statements. We take into account size, risk pro le, the organisation of the company and e ectiveness of controls, the potential impact of climate change and changes in the business environment when assessing the level of work to be performed. All audit work was performed directly by the audit engagement team. Climate change Stakeholders are increasingly interested in how climate change will impact the Company. The Company has determined that the impact of climate change could a ect the Company’s investments and the overall investment process. This is explained on page 34 in the Risk report. All of these disclosures form part of the “Other information,” rather than the audited nancial statements. Our procedures on these unaudited disclosures therefore consisted solely of considering whether they are materially inconsistent with the nancial statements or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated, in line with our responsibilities on “Other information”. In planning and performing our audit we assessed the potential impacts of climate change on the Company’s business and any consequential material impact on its nancial statements. Our audit e ort in considering climate change was focused on the adequacy of the Company’s disclosures in the nancial 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 signi cance in our audit of the nancial statements of the current period and include the most signi cant assessed risks of material misstatement (whether or not due to fraud) that we identi ed. These matters included those which had the greatest e ect on: the overall audit strategy, the allocation of resources in the audit; and directing the e orts of the engagement team. These matters were addressed in the context of our audit of the nancial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters. Key observations communicated Risk Our response to the risk to the Audit and Risk Committee The results of our procedures identi ed no material misstatements in relation to the risk of incomplete or inaccurate revenue recognition, including classi cation of special dividends as revenue or capital items in the Statement of Comprehensive Income. We performed the following procedures: We obtained an understanding of the Manager’s and Administrator’s processes and controls surrounding revenue recognition and classi cation of special dividends by performing walkthrough procedures. For all 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 external source where applicable and, for all dividends received and accrued, we agreed the amounts to bank statements. To test completeness of recorded income, we tested that dividends had been recorded for each investee company held during the year with reference to investee company announcements obtained from an independent data vendor. For all accrued dividends, we reviewed the investee Company announcements to assess whether the entitlement arose prior to 31 August 2025. We performed a review of the income and acquisition and disposal reports produced by the Administrator to identify all special dividends received and accrued. The Company received two special dividends in the period, and both amounts were below our testing threshold. Incomplete or inaccurate revenue recognition, including the classi cation of special dividends as revenue or capital items in the Statement of Comprehensive Income As described in the Audit and Risk Committee Report (page 45); Accounting policies (note 1 to the nancial statements pages 66 and 67). The total revenue from investments for the year to 31 August 2025 was £10.33 million (2024: £9.74 million), consisting entirely of dividend income from listed equity investments. The Company received special dividends amounting to £0.18 million (2024: £0.33 million) fully classi ed as revenue (2024: £0.05 million was classed as revenue and £0.28 million was classed as capital). The investment income receivable by the Company during the year directly a ects the Company’s revenue return. 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. In addition, the Directors may be required to exercise judgment in determining whether income receivable in the form of special dividends should be classi ed as ‘revenue’ or ‘capital’ in the Statement of Comprehensive Income. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 59 Section 5: Financial Statements Key observations communicated Risk Our response to the risk to the Audit and Risk Committee There have been no changes to the areas of audit focus raised in the above risk table from the prior year. Our application of materiality We apply the concept of materiality in planning and performing the audit, in evaluating the e ect of identi ed 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 in uence the economic decisions of the users of the nancial statements. Materiality provides a basis for determining the nature and extent of our audit procedures. We determined materiality for the company to be £2.36 million (2024: £2.32 million), which is 1% (2024: 1%) of shareholders’ funds. We believe that shareholders’ funds provides us with materiality aligned to the key measure of the Company’s performance. 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% (2024: 75%) of our planning materiality, namely £1.77 million (204: £1.74 million). We have set performance materiality at this percentage due to our past experience of working with the key service providers 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 have also applied a separate testing threshold for the revenue column of the Statement of Comprehensive Income which is calculated as 5% of net return before tax. We determined this to be £0.43 million (2024 £0.40 million). Reporting threshold An amount below which identi ed misstatements are considered as being clearly trivial. We agreed with the Audit and Risk Committee that we would report to them all uncorrected audit di erences in excess of £0.12 million (2024: £0.12 million), which is set at 5% of planning materiality, as well as di erences 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 nancial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. The results of our procedures identi ed no material misstatements in relation to the risk of incorrect valuation or ownership of the investment portfolio. We obtained an understanding of the Administrator’s processes and controls surrounding investment valuation and legal title by performing walkthrough procedures. For all listed investments in the portfolio we compared the market prices and exchange rates applied to an independent pricing vendor and recalculated the investment valuations as at the year end. We reviewed the prices for all investments in the portfolio to identify prices that have not changed within ve business days from year end to verify whether the listed price is a valid fair value. Our testing identi ed no prices which had not changed, and no stale prices were identi ed. We compared the Company’s investment holdings at 31 August 2025 to independent con rmations received directly from the Company’s Custodian and Depositary. Risk of incorrect valuation or ownership of the investment portfolio As described in the Audit and Risk Committee’s Report (page 45); Accounting policies (note 1 to the nancial statements pages 66 and 67). The valuation of the investment portfolio at 31 August 2025 was £259.6 million (2024: £258.4 million) consisting entirely of listed equities. The valuation of investments held in the investment portfolio is the key driver of the Company’s net asset value and total return. Incorrect investment pricing, or failure to maintain proper legal title of the investments held by the Company, could have a signi cant impact on the portfolio valuation and the return generated for shareholders. The fair value of listed investments is determined using quoted market bid prices at close of business on the last business day of the year. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 60 Section 5: Financial Statements Our opinion on the nancial 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 nancial 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 nancial 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 nancial year for which the nancial statements are prepared is consistent with the nancial 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 identi ed 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 nancial 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 speci ed 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 speci ed 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 nancial 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 identi ed set out on page 36; • Directors’ explanation as to their assessment of the company’s prospects, the period this assessment covers and why the period is appropriate set out on page 36; • Director’s statement on whether it has a reasonable expectation that the Company will be able to continue in operation and meets its liabilities set out on page 36; • Directors’ statement on fair, balanced and understandable set out on page 47; • Board’s con rmation that it has carried out a robust assessment of the principal and emerging risks set out on page 32; • The section of the annual report that describes the review of e ectiveness of risk management and internal control systems set out on pages 45 to 47; and; • The section describing the work of the audit and risk committee set out on pages 45 to 47. Responsibilities of directors As explained more fully in the directors’ responsibilities statement set out on page 55, the directors are responsible for the preparation of the nancial statements and for being satis ed that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of nancial statements that are free from material misstatement, whether due to fraud or error. In preparing the nancial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the 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 nancial statements Our objectives are to obtain reasonable assurance about whether the nancial 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 in uence the economic decisions of users taken on the basis of these nancial 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 signi cant are United Kingdom Generally Accepted Accounting Practice, the Companies Act 2006, the UK Listing Rules, UK Corporate Governance Code, the Association of Investment Companies’ Code and Statement Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 61 Section 5: Financial Statements of Recommended Practice, 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 minutes and the Company’s documented policies and procedures. • We assessed the susceptibility of the company’s nancial statements to material misstatement, including how fraud might occur by considering the key risks impacting the nancial statements. We identi ed a fraud risk with respect to incomplete or inaccurate revenue recognition through incorrect classi cation of special dividends as revenue or capital in the Statement of Comprehensive Income. Further discussion of our approach is set out in the key audit matter 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 Company Secretary’s reporting to the directors with respect to the application of the documented policies and procedures and review of the nancial statements to ensure compliance with the reporting requirements of the Company. A further description of our responsibilities for the audit of the nancial 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 5 July 2019 to audit the nancial statements for the year ending 31 August 2019 and subsequent nancial periods. The period of total uninterrupted engagement including previous renewals and reappointments is seven years, covering the years ending 31 August 2019 to 31 August 2025. • 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. Jennifer Rogan (Senior statutory auditor) for and on behalf of Ernst & Young LLP, Statutory Auditor Edinburgh 10 November 2025 Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 62 Section 5: Financial Statements Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 63 Section 5: Financial Statements Statement of Comprehensive Income for the year ended 31 August 2025 2025 2024 Revenue Capital Total Revenue Capital Total Note £’000 £’000 £’000 £’000 £’000 £’000 Gains on investments held at fair value through pro t or loss 2 – 13,373 13,373 – 30,756 30,756 Net foreign currency (losses)/gains – (12) (12) – 23 23 Income from investments 3 10,332 – 10,332 9,742 275 10,017 Other interest receivable and similar income 3 92 – 92 142 – 142 Gross return 10,424 13,361 23,785 9,884 31,054 40,938 Management fee 4 (460) (691) (1,151) (436) (654) (1,090) Administrative expenses 5 (611) – (611) (585) – (585) Net return before nance costs and taxation 9,353 12,670 22,023 8,863 30,400 39,263 Finance costs 6 (643) (965) (1,608) (779) (1,168) (1,947) Net return before taxation 8,710 11,705 20,415 8,084 29,232 37,316 Taxation 7 (45) – (45) – – – Net return after taxation 8,665 11,705 20,370 8,084 29,232 37,316 Return per share (pence) 9 12.55 16.96 29.51 11.64 42.09 53.73 The “Total” column of this statement is the pro t and loss account of the Company. The “Revenue” and “Capital” columns represent supplementary information prepared under guidance issued by The Association of Investment Companies. The Company has no other items of other comprehensive income, and therefore the net return after taxation is also the total comprehensive income 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 66 to 77 form an integral part of these nancial statements. Called-up Capital Warrant Share share Share redemption exercise purchase Capital Revenue capital premium reserve reserve reserves reserves reserve Total Note £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 31 August 2023 6,946 9,449 2,011 1,596 34,936 137,112 11,882 203,932 Repurchase of ordinary shares into treasury – – – – (102) – – (102) Net return after taxation – – – – – 29,232 8,084 37,316 Dividends paid in the year 8 – – – – – – (9,585) (9,585) At 31 August 2024 6,946 9,449 2,011 1,596 34,834 166,344 10,381 231,561 Repurchase of ordinary shares into treasury – – – – (4,312) – – (4,312) Net return after taxation – – – – – 11,705 8,665 20,370 Dividends paid in the year 8 – – – – – – (11,373) (11,373) At 31 August 2025 6,946 9,449 2,011 1,596 30,522 178,049 7,673 236,246 The notes on pages 66 to 77 form an integral part of these nancial statements. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 64 Section 5: Financial Statements Statement of Changes in Equity for the year ended 31 August 2025 2025 2024 Note £’000 £’000 Fixed assets Investments held at fair value through pro t or loss 10 259,636 258,409 Current assets Debtors 11 1,658 1,909 Cash and cash equivalents 12 1,520 1,692 3,178 3,601 Current liabilities Creditors: amounts falling due within one year 13 (26,568) (30,449) Net current liabilities (23,390) (26,848) Total assets less current liabilities 236,246 231,561 Net assets 236,246 231,561 Capital and reserves Called-up share capital 14 6,946 6,946 Share premium 15 9,449 9,449 Capital redemption reserve 15 2,011 2,011 Warrant exercise reserve 1 15 1,596 1,596 Share purchase reserve 15 30,522 34,834 Capital reserves 15 178,049 166,344 Revenue reserve 15 7,673 10,381 Total equity shareholders’ funds 236,246 231,561 Net asset value per share (pence) 16 347.32 333.54 1 A non distributable equity reserve which was created prior to 31 December 2003 when the Company issued shares with warrants attached. These nancial statements were approved and authorised for issue by the Board of Directors on 10 November 2025 and signed on its behalf by: Ewen Cameron Watt Chairman The notes on pages 66 to 77 form an integral part of these nancial statements. Registered in England and Wales as a public company limited by shares Company registration number: 03008494 Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 65 Section 5: Financial Statements Statement of Financial Position at 31 August 2025 1. Accounting policies (a) Basis of accounting Schroder Income Growth Fund plc (“the Company”) is registered in England and Wales as a public company limited by shares. The Company’s registered o ce is 1 London Wall Place, London EC2Y 5AU. The nancial 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 nancial statements have been prepared on a going concern basis under the historical cost convention, with the exception of investments which are measured at fair value through pro t or loss. The Directors believe that the Company has adequate resources to continue operating until 30 November 2026, which is at least 12 months from the date of approval of these nancial 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. The Directors have also considered the continuation vote scheduled at the forthcoming Annual General Meeting and have no present reason to believe such a resolution will not be passed by shareholders. The Directors have considered the impact of ESG and climate change as a principal risk and have concluded that there was no further impact of climate change to be taken into account as the investments are valued based on market pricing. Further details of Directors' considerations regarding this are given in the Chairman’s Statement, Investment Manager’s Review, Going Concern Statement, Viability Statement and under the Principal and Emerging Risks and Uncertainties in the Strategic Report. The Company has not presented a statement of cash ows, as it is not required for an investment trust which meets certain conditions; in particular that substantially all of the Company’s investments are highly liquid and carried at fair value. The nancial statements are presented in sterling and amounts have been rounded to the nearest thousand. The accounting policies applied to these nancial statements are consistent with those applied in the nancial statements for the year ended 31 August 2024. Other than the Directors’ assessment of going concern, no signi cant judgements, estimates or assumptions have been required in the preparation of the nancial statements for the current or preceding nancial year. (b) Valuation of investments The Company’s investments are classi ed as fair value through pro t and loss in accordance with FRS 102. Upon initial recognition the investments are measured at the transaction price, excluding expenses incidental to purchase which are written o to capital at the time of acquisition. Subsequently the investments are valued at fair value, which are quoted bid prices for investments traded in active markets. Fair value gains or losses are recognised in the capital column of the statement of comprehensive income. All purchases and sales are accounted for on a trade date basis. (c) Accounting for reserves Gains and losses on sales of investments, and the management fee or nance costs allocated to capital, are included in the statement of comprehensive income and dealt with 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 statement of comprehensive income and dealt with in capital reserves within “Investment holding gains and losses”. Foreign exchange gains and losses on cash and deposit balances are included in the statement of comprehensive income and in capital reserves. (d) Income Dividends receivable from equity shares 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 scrip 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 revenue with the following exceptions: • The management fee is allocated 40% to revenue and 60% to capital in line with the Board’s expected long-term split of revenue and capital return from the Company's investment portfolio. The Board reviews this allocation on an annual basis. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 66 Section 5: Financial Statements Notes to the Financial Statements • Expenses incidental to the purchase and sale of an investment are written o to capital at the time of acquisition or disposal. These expenses are commonly referred to as transaction costs and comprise brokerage commission and stamp duty. Details of transaction costs are given in note 10 on page 70. (f) Finance costs Finance costs, including any premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis using the e ective interest method in accordance with FRS 102. Finance costs are allocated 40% to revenue and 60% to capital in line with the Board’s expected long-term split of revenue and capital return from the Company’s investment portfolio. The Board reviews this allocation on an annual basis. (g) Financial instruments Cash at bank and in hand may comprise cash, demand deposits and cash equivalents. Cash equivalents are highly liquid investments with a short-term maturity of three months or less, that are readily convertible to a known amount of cash and subject to insigni cant risk of changes in value. Cash equivalents comprise the Company’s investment in HSBC’s Sterling Liquidity Fund of £202,000 (2024: £944,000) which is managed as part of the Company’s cash and cash equivalents as de ned under FRS 102: 7.2. 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 classi ed as nancial 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 e ective interest method. (h) Taxation The tax charge for the year is based on amounts expected to be received or paid. Deferred tax is accounted for in accordance with FRS 102. Deferred tax is provided on all timing di erences that have originated but not reversed by the accounting date. Deferred tax liabilities are recognised for all taxable timing di erences but deferred tax assets are only recognised to the extent that it is probable that taxable pro ts will be available against which those timing di erences can be utilised. Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing di erences are expected to reverse, based on tax rates that have been enacted or substantively enacted at the accounting date and is measured on an undiscounted basis. (i) Value added tax (“VAT”) Expenses are disclosed inclusive of the related irrecoverable VAT. (j) Foreign currency In accordance with FRS 102, the Company is required to determine a functional currency in which the Company predominantly operates. The Board has determined that sterling is the Company’s functional currency and the presentational currency of the nancial statements. The functional currency is the currency of the primary economic environment in which the company operates. Transactions denominated in foreign currencies are converted at actual exchange rates as at the date of the transaction. Monetary assets, liabilities and investments held at fair value, denominated in foreign currencies at the year end are translated at the rates of exchange prevailing at the year end. (k) Dividends payable Dividends on equity shares are recognised as a deduction of equity when the liability to pay the dividends arises. Consequently, interim dividends are recognised when paid and nal dividends when approved in the general meeting. 2. Gains on investments held at fair value through profit or loss 2025 2024 £’000 £’000 Gains on sales of investments based on historic cost 3,444 3,099 Losses/(gains) recognised in investment holdings in the previous year in respect of investments sold in the year (7,344) (3,014) (Losses)/gains on sales of investments based on the carrying value at the previous statement of nancial position date (3,900) 85 Unrealised gains recognised in respect of investments continuing to be held 17,273 30,671 Gains on investments held at fair value through pro t or loss 13,373 30,756 Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 67 Section 5: Financial Statements 3. Income 2025 2024 £’000 £’000 Income from investments: UK dividends 10,013 8,736 UK special dividends 181 51 Overseas dividends 138 839 Scrip dividends – 116 10,332 9,742 Other interest receivable and similar income: Deposit interest 87 107 Other income 5 35 92 142 Capital: Special dividends allocated to capital – 275 Total income 10,424 10,159 4. Management fee 2025 2024 Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Management fee 460 691 1,151 436 654 1,090 The basis for calculating the management fee is set out in the Directors’ Report on page 43. Under the terms of the AIFM Agreement, a management fee is payable at a rate of 0.45% per annum of chargeable assets. As disclosed in note 22, e ective 1 September 2025, the management fee was reduced from 0.45% to 0.40% and fees will be charged on the lesser of market capitalisation or cum NAV of the Company. 5. Administrative expenses 2025 2024 £’000 £’000 Administration expenses 418 399 Directors’ fees 132 127 Auditor’s remuneration for the audit of the Company’s nancial statements 1 61 59 611 585 1 Includes £10,000 (2024: £10,000) irrecoverable VAT. 6. Finance costs 2025 2024 Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Interest on bank loans 643 965 1,608 779 1,168 1,947 Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 68 Section 5: Financial Statements 7. Taxation (a) Analysis of charge for the year 2025 2024 £’000 £’000 Irrecoverable overseas tax 45 – Tax charge for the year 45 – (b) Factors affecting tax charge for the year The tax assessed for the year is lower (2024: lower) than the Company’s applicable rate of corporation tax for the year of 25% (2024: 25%). The factors a ecting the current tax charge for the year are as follows: 2025 2024 Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Net gain/return on ordinary activities before taxation 8,710 11,705 20,415 8,084 29,232 37,316 Net gain/return on ordinary activities before taxation multiplied by the Company’s applicable rate of corporation tax for the year of 25% (2024: 25%) 2,178 2,926 5,104 2,021 7,308 9,329 E ects of: Capital losses on investments – (3,340) (3,340) – (7,695) (7,695) Income not chargeable to corporation tax (2,504) – (2,504) (2,339) (69) (2,408) Unrelieved expenses 326 414 740 318 456 774 Irrecoverable overseas tax 45 – 45 – – – Tax charge for the year 45 – 45 – – – (c) Deferred tax The Company has an unrecognised deferred tax asset of £10,719,000 (2024: £9,979,000) based on a main rate of corporation tax of 25% (2024: 25%). The unrecognised 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 nancial statements. Given the Company’s status as an investment trust, no provision has been made for deferred tax on any capital gains or losses arising on the revaluation or disposal of investments. 8. Dividends (a) Dividends paid and declared 2025 2024 £’000 £’000 2024 fourth interim dividend of 6.7p (2023: 6.3p) 4,651 4,376 First interim dividend of 3.25p (2024: 2.5p) 2,256 1,737 Second interim dividend of 3.25p (2024: 2.5p) 2,238 1,737 Third interim dividend of 3.25p (2024: 2.5p) 2,228 1,737 Total dividends paid in the year 11,373 9,585 2025 2024 £’000 £’000 Fourth interim dividend declared of 4.95p (2024: 6.7p) 3,367 4,651 All dividends paid and declared to date have been paid, or will be paid, out of revenue pro ts. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 69 Section 5: Financial Statements 8. Dividends (continued) (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 nancial year as shown below. The revenue available for distribution by way of dividend for the year is £8,665,000 (2024: £8,804,000). 2025 2024 £’000 £’000 First interim dividend of 3.25p (2024: 2.5p) 2,256 1,737 Second interim dividend of 3.25p (2024: 2.5p) 2,238 1,737 Third interim dividend of 3.25p (2024: 2.5p) 2,228 1,735 Fourth interim dividend of 4.95p (2024: 6.7p) 3,367 4,651 Total dividends of 14.7p (2024: 14.2p) per share 10,089 9,860 9. Return per share 2025 2024 £’000 £’000 Revenue return 8,665 8,084 Capital return 11,705 29,232 Total return 20,370 37,316 Weighted average number of ordinary shares in issue during the year 69,031,408 69,449,119 Revenue return per share (pence) 12.55 11.64 Capital return per share (pence) 16.96 42.09 Total return/gain per share (pence) 29.51 53.73 10. Investments held at fair value through profit or loss 2025 2024 £’000 £’000 Opening book cost 208,306 207,268 Opening investment holding gains 50,103 22,446 Opening fair value 258,409 229,714 Analysis of transactions made during the year Purchases at cost 84,955 25,189 Sales proceeds (97,101) (27,250) Gains on investments held at fair value 13,373 30,756 Closing fair value 259,636 258,409 Closing book cost 199,604 208,306 Closing investment holding gains 60,032 50,103 Closing fair value 259,636 258,409 All investments are listed on a recognised stock exchange. Sales proceeds amounting to £97,101,000 (2024: £27,250,000) were receivable from disposals of investments in the year. The book cost of these investments when they were purchased was £93,657,000 (2024: £24.151,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 70 Section 5: Financial Statements The following transaction costs, comprising stamp duty and brokerage commission were incurred during the year: 2025 2024 £’000 £’000 On acquisitions 381 130 On disposals 39 13 420 143 11. Debtors 2025 2024 £’000 £’000 Dividends and interest receivable 1,639 1,901 Other debtors 19 8 1,658 1,909 The Directors consider that the carrying amount of debtors approximates to their fair value. 12. Cash and cash equivalents 2025 2024 £’000 £’000 Cash at bank 1,318 748 Money market fund 202 944 1,520 1,692 As at 31 August 2025, the Company held shares in the HSBC Sterling Liquidity fund with a market value of £202,000 (31 August 2024: £944,000), which is managed as part of the Company’s cash and cash equivalents as de ned under FRS 102:7.2. 13. Creditors: amounts falling due within one year 2025 2024 £’000 £’000 Bank loan 26,000 30,000 Repurchases of the Company’s own shares awaiting settlement 104 – Other creditors and accruals 464 449 26,568 30,449 The bank loan comprises £26.0 million drawn down on the Company’s secured revolving credit facility with The Bank of Nova Scotia, London Branch. Prior to the start of the new loan agreement with The Bank of Nova Scotia, London Branch, e ective 20 September 2024, and maturity date 19 September 2025, the Company had an unsecured revolving credit facility with SMBC Bank International plc (2024: £30.0 million). The new facility is secured and is subject to covenants and restrictions which are customary to a facility of this nature. Further details of this facility are given in note 20(a)(i) on page 74. The Directors consider that the carrying amount of creditors falling due within one year approximates to their fair value. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 71 Section 5: Financial Statements 14. Called-up share capital 2025 2024 £’000 £’000 Ordinary shares allotted, called up and fully paid: Ordinary shares of 10p each Opening balance of 69,425,343 (2024: 69,463,343) shares 6,946 6,946 Repurchase of 1,406,191 (2024: 38,000) shares held in treasury (141) (4) Subtotal of 68,019,152 (2024: 69,425,343) shares 6,805 6,942 1,444,191 (2024: 38,000) shares held in treasury 141 4 Total of 69,463,343 (2024: 69,463,343) shares 6,946 6,946 15. Reserves Capital reserves Gains and Investment Capital Warrant Share losses on holding Share redemption exercise purchase sales of gains and Revenue premium 1 reserve 1 reserve 1 reserve 2 investments 2 losses 3 reserve 4 Year ended 31 August 2025 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Opening balance 9,449 2,011 1,596 34,834 116,241 50,103 10,381 Losses on sales of investments based on the carrying value at the previous statement of nancial position date – – – – (3,900) – – Net movement in investment holding gains and losses – – – – – 17,273 – Transfer on disposal of investments – – – – 7,344 (7,344) – Realised exchange losses on currency balances – – – – (12) – – Management fee and nance costs allocated to capital – – – – (1,656) – – Share repurchases into treasury – – – (4,312) – – – Dividends paid – – – – – – (11,373) Retained revenue for the year – – – – – – 8,665 Closing balance 9,449 2,011 1,596 30,522 118,017 60,032 7,673 The Company’s Articles of Association permit dividend distributions out of realised capital pro ts. 1 These reserves are not distributable. 2 These are realised (distributable) capital reserves which may be used to repurchase the Company’s own shares or distributed as dividends. 3 This reserve comprises holding gains on liquid investments (which may be deemed to be realised) and other amounts which are unrealised. The reserve is predominantly distributable. 4 The revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 72 Section 5: Financial Statements Capital reserves Gains and Investment Capital Warrant Share losses on holding Share redemption exercise purchase sales of gains and Revenue premium 1 reserve 1 reserve 1 reserve 2 investments 2 losses 3 reserve 4 Year ended 31 August 2024 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Opening balance 9,449 2,011 1,596 34,936 114,666 22,446 11,882 Gains on sales of investments based on the carrying value at the previous statement of nancial position date – – – – 85 – – Net movement in investment holding gains and losses – – – – – 30,671 – Transfer on disposal of investments – – – – 3,014 (3,014) – Realised exchange gains on currency balances – – – – 23 – – Management fee and nance costs allocated to capital – – – – (1,822) – – Share repurchase into treasury – – – (102) – – – Special dividends allocated to capital – – – – 275 – – Dividends paid – – – – – – (9,585) Retained revenue for the year – – – – – – 8,084 Closing balance 9,449 2,011 1,596 34,834 116,241 50,103 10,381 The Company’s Articles of Association permit dividend distributions out of realised capital pro ts. 1 These reserves are not distributable. 2 These are realised (distributable) capital reserves which may be used to repurchase the Company’s own shares or distributed as dividends. 3 This reserve comprises holding gains on liquid investments (which may be deemed to be realised) and other amounts which are unrealised. The reserve is predominantly distributable. 4 The revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares. 16. Net asset value per share 2025 2024 £’000 £’000 Net assets attributable to shareholders (£’000) 236,246 231,561 Shares in issue at the year end 68,019,152 69,425,343 Net asset value per share (pence) 347.32 333.54 17. Transactions with the Manager Under the terms of the AlFM Agreement, the Manager is entitled to receive a management fee. Details of the basis of the calculation are given in the Directors’ Report on page 43. Any investments in funds managed or advised by the Manager or any of its associated companies are excluded from the assets used for the purpose of the calculation and therefore incur no fee. As at year end, the Company did not have any investments in funds managed or advised by the Manager or any of its associated companies (2024: nil). The management fee payable in respect of the year ended 31 August 2025 amounted to £1,151,000 (2024: £1,090,000) of which £294,000 (2024: £291,000) was outstanding at the year end. The Manager is entitled to receive a further fee to cover administration and company secretarial costs. Refer to note 22 for details of a change to this fee. The secretarial fee payable for the year amounted to £142,000 (2024: £180,000) of which £38,000 (2024: £45,000) was outstanding at the year end. No Director of the Company served as a director of any member of the Schroder Group at any time during the year. 18. Related party transactions Details of the remuneration payable to Directors are given in the Directors’ Remuneration Report on pages 52 to 54 and details of Directors’ shareholdings are given in the Directors’ Remuneration Report on page 54. Details of transactions with the Manager are given in note 17 above. There have been no other transactions with related parties during the year (2024: nil). Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 73 Section 5: Financial Statements 19. Disclosures regarding financial instruments measured at fair value The Company’s nancial instruments within the scope of FRS 102 that are held at fair value comprise its investment portfolio. FRS 102 requires nancial 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 valuation techniques used by the Company are given in note 1(b). At 31 August 2025, all investments in the Company’s portfolio are categorised as Level 1 (2024: same). 20. Financial instruments’ exposure to risk and risk management policies The Company’s objectives are set out on the inside front cover of this report. In pursuing these objectives, the Company is exposed to a variety of nancial risks that could result in a reduction in the Company’s net assets or a reduction in the pro ts available for dividends. These nancial risks include market risk (comprising interest rate risk and other price risk), liquidity risk and credit risk. The Directors’ policy for managing these risks is set out below. The Board coordinates the Company’s risk management policy. The Company has no signi cant direct exposure to foreign exchange risk on monetary items. The objectives, policies and processes for managing the risks and the methods used to measure the risks that are set out below, have not changed from those applying in the comparative year. The Company’s classes of nancial instruments may comprise the following: • investments in equity shares which are held in accordance with the Company’s investment objectives; • short-term debtors, creditors and cash arising directly from its operations; and • loans drawn on a facility, the purpose of which are to assist with nancing the Company’s operations. (a) Market risk The fair value or future cash ows of a nancial instrument held by the Company may uctuate because of changes in market prices. This market risk comprises two elements: interest rate risk and other price risk. Information to enable an evaluation of the nature and extent of these two elements of market risk is given in parts (i) and (ii) of this note, together with sensitivity analysis where appropriate. The Board reviews and agrees policies for managing these risks and these policies have remained unchanged from those applying in the comparative year. The Manager assesses the exposure to market risk when making each investment decision and monitors the overall level of market risk on the whole of the investment portfolio on an ongoing basis. (i) Interest rate risk Interest rate movements may a ect the level of income receivable on cash deposits and the interest payable on variable rate borrowings when interest rates are re-set. Management of interest rate risk Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The board’s policy is to permit gearing up to 25% where gearing is de ned as borrowings used for investment purposes, less cash, expressed as a percentage of net assets. Any amount drawn on the facility would normally be for a one month period, at the end of which the drawdown may be rolled over, adjusted or repaid, and the interest rate is re-set. These amounts have been included in the analysis below, although the exposure to interest rate changes is not signi cant as any drawings can be repaid at the end of the one month period under the terms of this exible arrangement. Interest rate exposure The exposure of nancial assets and nancial liabilities to oating interest rates, giving cash ow interest rate risk when rates are re-set, is shown below: 2025 2024 Exposure to oating interest rates: £’000 £’000 Cash and cash equivalents 1,520 1,692 Creditors falling due within one year: bank loan (26,000) (30,000) Total exposure (24,480) (28,308) Cash balances earn interest at a oating rate based on the Sterling Overnight Index Average (2024: Sterling Overnight Index Average). The Company agreed to a new £30.0 million secured revolving credit facility with The Bank of Nova Scotia, London Branch, e ective 20 September 2024. Interest payable is calculated at the aggregate of the compounded daily Risk Free Rate (“RFR”), plus a margin. Amounts are normally drawn down on the facility for a one month period, at the end of which it may be rolled over or adjusted. At 31 August 2025, the Company had drawn down £26.0 million (2024: £30.0 million), for a one month period at an interest rate of 5.03% (2024: 6.28%) per annum. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 74 Section 5: Financial Statements The above year end amounts are not representative of the exposure to interest rates during the current or comparative year as the level of cash balances and drawings on the facility have uctuated. The maximum and minimum exposure during the year was as follows: 2025 2024 £’000 £’000 Minimum debit interest rate exposure during the year – net debt (24,387) (24,828) Maximum debit interest rate exposure during the year – net debt (29,295) (29,635) Interest rate sensitivity The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 1.0% (2024: 1.0%) increase or decrease in interest rates in regards to the Company’s monetary nancial assets and nancial 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 nancial instruments held at the statement of nancial position date which are exposed to interest rate movements, with all other variables held constant. 2025 2024 1.0% 1.0% 1.0% 1.0% increase decrease increase decrease in rate in rate in rate in rate Statement of comprehensive income – return after taxation £’000 £’000 £’000 £’000 Revenue return (89) 89 (103) 103 Capital return (156) 156 (180) 180 Total return after taxation (245) 245 (283) 283 Net assets (245) 245 (283) 283 Due to UK interest rates declining by 1.0% over the course of the year, the interest rate sensitivity has been kept at 1.0%. In the opinion of the Directors, this sensitivity analysis may not be representative of the Company’s future exposure to interest rate changes as the level of cash balances and drawings on the facility will uctuate. (ii) Other price risk Market price risk includes changes in market prices, other than those arising from interest rate risk, which may a ect the value of 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 industry sectors. The investment management team has responsibility for monitoring the portfolio, which is selected in accordance with the Company’s investment objective and seeks to ensure that individual stocks meet an acceptable risk/reward pro le. Market price risk exposure The Company’s total exposure to changes in market prices at 31 August comprised the following: 2025 2024 £’000 £’000 Investments held at fair value through pro t or loss 259,636 258,409 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 20 and 21. The portfolio principally comprises securities of companies listed on the London Stock Exchange and accordingly there is a concentration of exposure to economic conditions in the UK. However it should be noted that many of these companies conduct much of their business overseas. Furthermore, up to 20% of the portfolio may be listed on overseas stock exchanges. Market price risk sensitivity The following table illustrates the sensitivity of the return after taxation for the year and net assets to an increase or decrease of 20% (2024: 20%) 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 exposure through equity investments and includes the impact on the management fee but assumes that all other variables are held constant. 2025 2024 20% 20% 20% 20% increase decrease increase decrease in fair in fair in fair in fair value value value value Statement of comprehensive income – return after taxation £’000 £’000 £’000 £’000 Revenue return (93) 93 (93) 93 Capital return 51,787 (51,787) 51,542 (51,542) Total return after taxation and net assets 51,694 (51,694) 51,449 (51,449) Change in net asset value 21.9% (21.9%) 22.2% (22.2%) Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 75 Section 5: Financial Statements 20. Financial instruments’ exposure to risk and risk management policies (continued) (b) Liquidity risk This is the risk that the Company will encounter di culty in meeting its obligations associated with nancial liabilities that are settled by delivering cash or another nancial asset. Management of liquidity risk Liquidity risk is not signi cant as the Company’s assets comprise mainly readily realisable securities, which can be sold to meet funding requirements if necessary. The facility is also available to provide liquidity at short notice. The Board’s policy is for the Company to remain fully invested in normal market conditions. The facility may be used to manage working capital requirements and to gear the Company as appropriate. Liquidity risk exposure Contractual maturities of undiscounted nancial liabilities, based on the earliest date on which payment can be required are as follows: 2025 2024 Three Three months months or less or less Creditors: amounts falling due within one year £’000 £’000 Other creditors and accruals 558 444 Bank loan – including interest 26,109 30,157 26,667 30,601 (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 signi cant and is managed as follows: Portfolio dealing The Company invests in markets that operate a “Delivery Versus Payment” settlement process which mitigates the risk of losing the principal of a trade during settlement. 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. 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 A3 with Moody’s. Refer to note 22 for details of a change to the custodian. 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. Credit risk exposure The following amounts shown in the statement of nancial position, represent the maximum exposure to credit risk at the current and comparative year end. 2025 2024 Statement Statement of nancial Maximum of nancial Maximum position exposure position exposure £’000 £’000 £’000 £’000 Current assets Debtors – dividends and interest receivable and other debtors 1,658 1,658 1,909 1,909 Cash and cash equivalents 1,520 1,520 1,692 1,692 3,178 3,178 3,601 3,601 No debtors are past their due date and none have been written down or deemed to be impaired. (d) Fair values of nancial assets and nancial liabilities All nancial assets and liabilities are either carried at fair value or the amount in the statement of nancial position is a reasonable approximation of fair value. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 76 Section 5: Financial Statements 21. Capital management policies and procedures The Company’s objectives, policies and processes for managing capital are unchanged from the preceding year. The Company’s debt and capital structure comprises the following: 2025 2024 £’000 £’000 Debt Bank loan 26,000 30,000 Equity Called-up share capital 6,946 6,946 Reserves 229,300 224,615 236,246 231,561 Total debt and equity 262,246 261,561 The Company’s capital management objectives are to ensure that it will continue as a going concern and to maximise the return to its equity shareholders through an appropriate level of gearing. The Board’s policy is to permit gearing up to 25% where gearing is de ned as borrowings used for investment purposes, less cash, expressed as a percentage of net assets. 2025 2024 £’000 £’000 Borrowings used for investment purposes, less cash 24,480 28,308 Net assets 236,246 231,561 Gearing 10.4% 12.2% 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; and • the amount of dividend to be paid, in excess of that which is required to be distributed. 22. Events after the accounting date that have not been reflected in the financial statements E ective 1 September 2025, the management fee was reduced from 0.45% to 0.40%. Such fees will be charged on the lesser of market capitalisation or cum NAV of the Company. In addition, e ective the same date, the separate fee for secretarial and administration services was eliminated. The depositary, administration and custody services of the Company transitioned from HSBC Bank plc to J.P. Morgan Europe Limited and JPMorgan Chase Bank, N.A., London Branch e ective 5 September 2025. There have been no other events since the statement of nancial position date which either require changes to be made to the gures included in the nancial statements or to be disclosed by way of note. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 77 Section 5: Financial Statements Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 78 Section 6: Other Information (Unaudited) Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 79 Section 6: Other Information (Unaudited) Annual General Meeting – Recommendations 80 Notice of Annual General Meeting 81 Explanatory Notes to the Notice of Meeting 82 De nitions of Terms and Alternative Performance Measures 84 Information about the Company 86 Risk Disclosures 88 Section 6: Other Information (Unaudited) Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 80 Section 6: Other Information (Unaudited) Annual General Meeting – Recommendations The AGM of the Company will be held on Thursday, 11 December 2025 at 12:30 p.m. The formal Notice of Meeting is set out on pages 81 to 83. 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 nancial 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 e ected, for onward transmission to the purchaser or transferee. Ordinary business Resolutions 1 to 12 are all ordinary resolutions Resolutions 1 to 12 are ordinary resolutions. Resolution 2 concerns the Remuneration Report, on pages 52 to 54. Resolutions 3 to 6 invite shareholders to re-elect each of the Directors for another year. The re-elections have been recommended by the Nomination Committee on pages 49 and 50 (their biographies are set out on pages 40 and 41). Resolutions 7 and 8 concern the re-appointment and remuneration of the Company’s Auditor, discussed in the Audit and Risk Committee Report on pages 45 to 47. Resolution!9 relates to an advisory vote in respect of the Company’s dividend policy. 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 ve 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 ve!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 ve year period. Resolution 11: Increase in the Directors’ aggregate annual remuneration cap (ordinary resolution) The Board are proposing an increase to the Directors’ aggregate annual remuneration cap from £150,000 to £200,000 per annum. The Board believes it is prudent to maintain remuneration at market levels to support exible succession planning and the recruitment of new Directors. This approach allows for modest fee increases in the future and accommodates higher aggregate fees in years when new appointments are made. Resolution 12: Directors’ authority to allot shares (ordinary resolution) and Resolution 13: 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 rst o ering 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 £678,806.62 (being 10% of the issued share capital, excluding shares held in treasury, as at the date of the Notice of the AGM). A special resolution will also be proposed to give the Directors authority to allot securities for cash on a non pre-emptive basis up to a maximum aggregate nominal amount of £678,806.62 (being 10% of the Company’s issued share capital, excluding shares held in treasury, as at the date of the Notice of the AGM). The Directors do not intend to allot shares pursuant to these authorities 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’s existing shareholders to do so. Shares issued under this authority will only be issued at a premium to the NAV (cum income) per share after taking into account the costs of issue, and will not result in any dilution of NAV per share. If approved, both of these authorities will expire at the conclusion of the AGM in 2026 unless renewed, varied or revoked earlier. Resolution 14: authority to make market purchases of the Company’s own shares (special resolution) At the AGM held on 11 December 2024, the Company was granted authority to make market purchases of up to 10,405,660 ordinary shares of 10p each for cancellation. 1,536,681 shares have been brought back under this authority and the Company therefore has remaining authority to purchase up to 8,868,979 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 and the purchase of ordinary shares. 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 the date of the Notice of the AGM. The Directors will exercise this authority only if the Directors consider that any purchase would be for the bene t 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. If!renewed, the authority to be given at the 2025 AGM will lapse at the conclusion of the AGM in 2026 unless renewed, varied or revoked earlier. Resolution 15: notice period for general meetings (special resolution) Resolution 15 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 e ective 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 o ers 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 bene cial holdings. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 81 Section 6: Other Information (Unaudited) Notice of Annual General Meeting Notice is hereby given that the Annual General Meeting of Schroder Income Growth Fund plc will be held on Thursday, 11 December 2025 at 12:30 p.m. at 1 London Wall Place, London EC2Y 5AU to consider the following resolutions of which resolutions 1 to 12 will be proposed as ordinary resolutions and resolutions 13 to 15 will be proposed as special resolutions: Ordinary business 1. To receive the Report of the Directors and the audited nancial statements for the year ended 31 August 2025. 2. To approve the Directors’ Remuneration Report for the year ended 31 August 2025. 3. To approve the re-election of Ewen Cameron Watt as a Director of the Company. 4. To approve the re-election of June Aitken as a Director of the Company. 5. To approve the re-election of Fraser McIntyre as a Director of the Company. 6. To approve the re-election of Victoria Muir as a Director of the Company. 7. To re-appoint Ernst & Young LLP as Auditor to the Company. 8. To authorise the Directors to determine the remuneration of Ernst & Young LLP as Auditor to the Company. 9. To approve the Company’s dividend policy, as set out on page!26 of the annual report and nancial statements for the year ended 31 August 2025. Special business 10. To consider, and if thought t, 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 ve year period.” 11. To consider, and if thought t, to pass the following resolution as an ordinary resolution: “THAT in accordance with the Articles of Association, the Company be authorised to increase the Directors’ aggregate annual remuneration cap from £150,000 per annum to £200,000.” 12. To consider, and if thought t, 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 £678,806.62 (being 10% of the issued ordinary share capital, excluding shares held in treasury, at the date of this Notice) for a period expiring (unless previously renewed, varied or revoked by the Company in general meeting) at the conclusion of the next Annual General Meeting of the Company, but that the Company may make an o er 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 o er or agreement.” 13. To consider and, if thought t, to pass the following resolution as a special resolution: “THAT, subject to the passing of Resolution 12 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 de ned in section 560(1) of the Act) pursuant to the authority given in accordance with section 551 of the Act by the said Resolution 12 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 £678,806.62 (representing 10% of the aggregate nominal amount of the share capital in issue at the date of this Notice); 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 o ers or agreements before such expiry which would or might require equity securities to be allotted after such expiry.” 14. To consider and, if thought t, 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 10p 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 10,175,311, representing 14.99% of the Company’s issued ordinary share capital as at the date of this Notice (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 O cial List for the ve 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 10p, 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.” 15. To consider and, if thought t, 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 10 November 2025 Registered O ce: 1 London Wall Place, London EC2Y 5AU Registered Number: 03008494 Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 82 Section 6: Other Information (Unaudited) Explanatory Notes to the Notice of Meeting 1. Ordinary shareholders are entitled to attend 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. Shareholders are encouraged to appoint the Chairman as proxy. If you wish to appoint a person other than the Chairman 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 Registrar, Equiniti Limited, on +44!(0) !800!032!0641, 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. 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, or in the enclosed envelope, together with any power of attorney or other authority under which it is signed or a copy of such authority certi ed notarially, to arrive no later than 48 hours before the time xed for the meeting, or an adjourned meeting. Shareholders may also appoint a proxy to vote on the resolutions being put to the meeting electronically 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 12:30 pm on 9!December 2025. If you have any di culties with online voting, !you should contact the shareholder helpline on +44!(0) !800 032 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 Annual General Meeting. 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 Uncerti cated Securities Regulations 2001, the Company has speci ed that only those shareholders registered in the Register of Members of the Company at 6.30 p.m. on 9 December 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 9!December 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. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 83 Section 6: Other Information (Unaudited) 5. 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 12:30!p.m. on 9 December 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 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. 6. Copies of the terms of appointment of the non-executive Directors and a statement of all transactions of each Director and of his/her family interests in the shares of the Company, will be available for inspection by any member of the Company at the registered o ce 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. In addition, a copy of the Articles of Association of the Company will be available for inspection. 7. The biographies of the Directors o ering themselves for re-election are set out on pages 40 and 41 of the Company’s annual report and nancial statements for the year ended 31!August 2025. 8. As at 10 November 2025, 69,463,343 ordinary shares of 10!pence each were in issue (of which 1,582,681 ordinary shares were held in treasury). Therefore the total number of voting rights of the Company as at 10 November 2025 was 67,880,662. 9. 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 from the Company’s web pages, www.schroders.co.uk/incomegrowth. 10. 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 con dential information. 11. Members satisfying the thresholds in section 527 of the Companies Act 2006 can require the Company to publish a!statement on its website setting out any matter relating to: (a) the audit of the Company’s accounts (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 o ce 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 website must also be sent to the Company’s auditor 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 website. 12. The Company’s privacy policy is available on its webpages http://www.schroders.co.uk/incomegrowth. Shareholders can contact Equiniti for details of how Equiniti processes their personal information as part of the AGM. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 84 Section 6: Other Information (Unaudited) Definitions of Terms and Alternative Performance Measures 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 as APMs as defined by the European Securities and Markets Authority. Under this definition, APMs 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. APMs have been marked with an asterisk. Net asset value (NAV) per share The NAV per share of 347.32p (2024: 333.54p) represents the net assets attributable to equity shareholders of £236,246,000 (2024: £231,561,000) divided by the number of shares in issue of 68,019,152 (2024: 69,425,343). The change in the NAV amounted to 4.1% (2024: 13.5%) over the year. However, this performance measure excludes the positive impact of dividends paid out by the Company during the year. When these dividends are factored into the calculation, the resulting performance measure is termed the “total return”. Total return calculations and de nitions are given below. Total return The combined e ect 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 di erent 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 NAV total return for the year ended 31 August 2025 is calculated as follows: Opening NAV at 31/08/2024 333.54p Closing NAV at 31/08/2025 347.32p NAV on Cumulative Dividend received XD date XD date Factor factor 6.70p 03/10/2024 320.23p 1.0209 1.0209 3.25p 24/12/2024 308.10p 1.0105 1.0317 3.25p 03/04/2025 313.13p 1.0104 1.0424 3.25p 03/07/2025 335.25p 1.0097 1.0525 NAV total return, being the closing NAV, multiplied by the factor, expressed as a percentage increase in the opening NAV: 9.6% The NAV total return for the year ended 31 August 2024 is calculated as follows: Opening NAV at 31/08/2023 293.58p Closing NAV at 31/08/2024 333.54p NAV on Cumulative Dividend received XD date XD date Factor factor 6.30p 05/10/2023 284.17p 1.0222 1.0222 2.50p 28/12/2023 299.74p 1.0083 1.0307 2.50p 04/04/2024 308.09p 1.0081 1.0391 2.50p 04/07/2024 323.67p 1.0077 1.0471 NAV total return, being the closing NAV, multiplied by the factor, expressed as a percentage increase in the opening NAV: 19.0% The share price total return for the year ended 31 August 2025 is calculated as follows: Opening share price at 31/08/2024 299.00p Closing share price at 31/08/2025 319.00p Share price on Cumulative Dividend received XD date XD date Factor factor 6.70p 03/10/2024 289.00p 1.0232 1.0232 3.25p 24/12/2024 278.50p 1.0117 1.0351 3.25p 03/04/2025 283.00p 1.0115 1.0470 3.25p 03/07/2025 309.50p 1.0105 1.0580 Share price total return, being the closing share price, multiplied by the factor, expressed as a percentage change in the opening share price: 12.9% Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 85 Section 6: Other Information (Unaudited) The share price total return for the year ended 31 August 2024 is calculated as follows: Opening Share price at 31/08/2023 267.50p Closing Share price at 31/08/2024 299.00p Share price on Cumulative Dividend received XD date XD date Factor factor 6.30p 05/10/2023 255.00p 1.0247 1.0247 2.50p 28/12/2023 278.00p 1.0090 1.0339 2.50p 04/04/2024 264.00p 1.0095 1.0437 2.50p 04/07/2024 290.00p 1.0086 1.0527 Share price total return, being the closing share price, multiplied by the factor, expressed as a percentage change in the opening share price: 17.7% 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 8.2% (2024: 10.4%), as the closing share price at 319.00p (2024: 299.00p) was lower than the closing NAV of 347.32p (2024: 333.54p). Gearing The gearing percentage re ects the amount of borrowings (i.e. bank loans or overdrafts) which the Company has drawn down and invested in the market. This gure is indicative of the extra amount by which shareholders’ funds would move if the Company’s investments were to rise or fall. Gearing is de ned as: borrowings used for investment purposes, less cash, expressed as a percentage of net assets. The gearing gure at the relevant year end is calculated as follows: 2025 2024 £’000 £’000 Borrowings used for investment purposes, less cash 24,480 28,308 Net assets 236,246 231,561 Gearing 10.4% 12.2% Leverage For the purpose of the Alternative Investment Fund Managers (AIFM) Directive, leverage is any method which increases the Company’s exposure, including the borrowing of cash and the use of derivatives. It is expressed as the ratio of the Company’s exposure to its net asset value 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 o hedges which satisfy certain strict criteria. Ongoing charges Ongoing Charges is calculated in accordance with the AIC’s recommended methodology and represents the management fee and all other operating expenses excluding nance costs and transaction costs, amounting to £1,762,000 (2024: £1,675,000), expressed as a percentage of the average daily net asset values during the period of £225.2 million (2024: £211.7 million). Giving an ongoing charges ratio of 0.78% (2024: 0.79%). Information about the Company Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 86 Section 6: Other Information (Unaudited) Web pages and share price information Company has dedicated web pages, which may be found at www.schroders.com/incomegrowth. 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 nancial 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. 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 a airs so that its shares can be recommended by 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 December Half year end 28 February Half year results announced May Financial year end 31 August Annual results announced November Alternative Investment Fund Managers (“AIFM”) Directive 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 and nancial statements, or in the Company’s AIFM Directive information disclosure document published on the Company’s web pages. Remuneration disclosures Quantitative remuneration disclosures to be made in this annual report in accordance with FCA Handbook rule FUND3.3.5 may also 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 KIDs are designed to provide certain prescribed information to retail investors, including details of potential returns under di erent performance scenarios and a!risk/reward indicator. The Company’s KID is available on its web pages. How to invest There are a number of ways to easily invest in the Company. The Manager has set these out at https://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 Chairman or the Board are, in each case, considered by the Chairman and the Board. 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, o ering 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, o ers to buy shares at a discount or o ers 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- rm • Do not deal with any rm that you are unsure about • If you deal with an unauthorised rm, you will not be eligible to receive payment under the Financial Services Compensation Scheme. The FCA provides a list of unauthorised rms of which it is aware, which can be accessed at fca.org.uk/consumers/unauthorised rmsindividualslist. More detailed information on this or similar activity can be found on the FCA website at fca.org.uk/consumers/ protect-yourself-scams. Directors Ewen Cameron Watt (Chairman) June Aitken Fraser McIntyre Victoria Muir Registered o ce 1 London Wall Place London EC2Y 5AU Telephone: +44 (0)20 7658 6000 Email: amcompanysecretary@schroders.com Advisers and service providers Alternative Investment Fund Manager (the “Manager”) 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 Depositary and custodian J.P. Morgan Europe Limited 25 Bank Street London E14 5JP Lending bank The Bank of Nova Scotia, London Branch 201 Bishopsgate 6th Floor London EC2M 3NS Corporate broker Peel Hunt LLP 7th Floor 100 Liverpool Street London EC2M 2AT Independent Auditor Ernst & Young LLP 144 Morrison Street Edinburgh EH3 8EB Registrar Equiniti Limited Aspect House Spencer Road Lancing West Sussex BN99 6DA Shareholder Helpline: 0371 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 noti cations 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. Other information Company number 03008494. Shareholder enquiries General enquiries about the Company should be addressed to the Company Secretary at the Company’s registered o ce. Dealing Codes ISIN: GB0007915860 SEDOL 0791586 Ticker: SCF Global Intermediary Identi cation Number (GIIN) T34UKV.99999.SL.826 Legal Entity Identi er (LEI) 549300X1RTYYP7S3YE39 Privacy notice The Company’s privacy notice is available on its web pages. Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 87 Section 6: Other Information (Unaudited) www.schroders.co.uk/incomegrowth Schroder Income Growth Fund plc Annual Report and Financial Statements 2025 88 Section 6: Other Information (Unaudited) 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 ful l 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 di erent 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 nancial instruments deriving their value from an underlying asset, may be used to manage the portfolio e ciently. 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 Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, & frontier risk 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 di erent to the net asset value of the Company. In di cult market conditions, investors may not be able to nd 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 di cult to value. In di cult market conditions, the Company may not be able to sell an investment for full value or at all and this could a ect 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 di cult to achieve. Share price risk The price of shares in the Company is determined by market supply and demand, and this may be di erent 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 Smaller companies generally carry greater liquidity risk than larger companies, meaning they are harder to buy risk and sell, and they may also uctuate in value to a greater extent. Schroder Investment Management Limited 1 London Wall Place, London EC2Y 5AU, United Kingdom T +44 (0) 20 7658 6000 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 nancial 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. @schroders schroders.com