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Annual Report and Financial Statements
for the year ended 31 August 2025
Schroder Oriental Income Fund Limited
Schroder Oriental Income Fund Limited
|
Annual Report and Financial Statements 2025
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Schroder Oriental Income Fund Limited
The Investment Objective of the Company is set out above. For details on the Company’s Investment Policy please see the KID. This
report includes the investment policy which you should read in conjunction with the KID before investing; these are also available on
our Schroders website.
Past Performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally
invested. Exchange rate changes may cause the value of investments to fall as well as rise. Performance data does not take into
account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed. Relevant
risks as associated with this Company are shown on page 89 and should be carefully considered before making any investment.
Investment objective
The investment objective of the Company is to provide a total return for investors
primarily through investments in equities and equity-related investments, of companies
which are based in, or which derive a significant proportion of their revenues from, the
Asia Pacific region and which offer attractive yields. The full published investment policy
can be found on page 27.
Why invest in the Company?
What does the Company seek to achieve?
Asian companies are increasingly world-leading and returning cash to
shareholders. Schroder Oriental Income Fund Limited (the “Company”) aims to
tap into the Asian income story and help investors diversify their dividends.
Offering a reliable, yet diversified, source of growing income
By focusing on quality companies with attractive dividend growth prospects, the
Company’s investment manager is confident in the portfolio’s income generating
potential. Having grown its dividend every year since launch, the Company is
classed in the AIC’s next generation of dividend heroes.
A disciplined focus on companies with excellent long-term growth
prospects
The Company is well placed to capitalise on the growing prominence of Asian
companies that are transforming their sectors, providing investors with potential
for an attractive level of capital growth as well as income.
Harness decades of deep expertise
Schroders is an acknowledged expert in Asian equity investing. The Portfolio
Manager draws upon the extensive resources of Schroders’ Asia Pacific equities
research team based in six offices across the region, as well as Schroders’
London-based specialists. The strength of these resources gives the Portfolio
Manager an advantage in under-researched and inefficient markets.
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Contents
Section 1: Overview
Performance Summary 5
Chair’s Statement 6
Section 2: Investment Manager’s Review
Investment Manager’s Review 10
Top 10 Investments 17
Investment Portfolio 19
10-year Financial Record 21
Investment Process and Approach 22
Section 3: Strategic Report
The Company 26
Stakeholder Engagement – Section 172 Report 31
Principal and Emerging Risks and Uncertainties 35
Section 4: Governance
Board of Directors 40
Directors’ Report 42
Audit and Risk Committee Report 46
Management Engagement Committee Report 49
Nomination and Remuneration Committee Report 51
Directors’ Remuneration Report 53
Statement of Directors’ Responsibilities in Respect
of the Annual Report and Financial Statements 56
Section 5: Financials
Independent Auditor’s Report 58
Statement of Comprehensive Income 63
Statement of Changes in Equity 64
Statement of Financial Position 65
Cash Flow Statement 66
Notes to the Financial Statements 67
Section 6: Other Information (Unaudited)
Annual General Meeting – Recommendations 82
Notice of Annual General Meeting 83
Explanatory Notes to the Notice of Meeting 84
Alternative Performance Measures and Glossary 85
Information about the Company 87
Risk Disclosures 89
8
24
56
38
80
3
The front cover shows the
Taipei 101 building, which is a
prominent skyscraper in Taipei,
Taiwan. It is one of the most
recognisable landmarks in the
city and was formerly the tallest
building in the world.
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Annual Report and Financial Statements
for the year ended 31 August 2025
Schroder Oriental Income Fund Limited
Schroder Oriental Income Fund Limited
|
Annual Report and Financial Statements 2025
This is not a sustainable product for the purposes of the Financial Conduct Authority (FCA) rules.
References to the consideration of sustainability factors and environmental, social and governance
(ESG) integration should not be construed as a representation that the Company seeks to achieve any
particular sustainability outcome.
1
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Nanjing Road, Shanghai, China.
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2
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 1: Overview
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Section 1: Overview
Performance Summary 5
Chair’s Statement 6
3
Section 1: Overview
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Performance Summary
At 31 August 2025
Share price total return
*
+17.9%
Year ended 2024: +15.3%
Reference Index
1
+21.1%
Year ended 2024: +16.4%
Net Asset Value (NAV)
per share total return
*
+14.9%
Year ended 2024: +18.2%
Ongoing charges ratio
*
0.90%
Year ended 2024: 0.88%
Share price discount
to NAV per share
*
-5.0%
Year ended 2024: -7.1%
Gearing
*
3.9%
Year ended 2024: 4.4%
Share price
303.50p
Year ended 2024: 269.00p
Dividend per share
*
12.20p
Year ended 2024: 12.00p
Some of the financial measures below are classified as Alternative Performance Measures, as defined by
the European Securities and Markets Authority and are indicated with an asterisk (*). Definitions of these
performance measures, and other terms used in this report, are given on pages 85 and 86, together with
supporting calculations where appropriate.
*
Definitions of terms and performance measures used throughout this report can be found on pages 85 and 86.
1
MSCI AC Pacific ex Japan Index, Net of Dividends Reinvested (measured in sterling).
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Chair’s Statement
This is my first Annual Report as Chair, and I would like to begin
by thanking Paul Meader again for his significant contribution and
leadership during his tenure. This year also marks the Company’s
20th anniversary – a milestone that highlights our resilience,
adaptability, and consistent delivery of value for shareholders.
I look forward to building on this strong foundation as we enter
the next phase of the Company’s development. Having grown
its dividend every year since launch, the Company is classed in
the Association of Investment Companies (AIC’s) next generation
of dividend heroes and it remains the Board’s aim to achieve
full dividend hero status on the completion of twenty years of
consecutive dividend growth next year.
Performance
As I mentioned in the interim report, this year’s financial markets
have been heavily influenced by global political events, especially
the recent introduction of broad trade tariffs by US President
Trump. Given that the Asia Pacific region faced some of the
highest tariffs, it was somewhat unexpected to see its stock
markets deliver such strong results – a total return of over 20%
during the year.
China stood out, with returns above 40%, despite having some of
the highest tariff threats and still dealing with the overhang effects
of the Covid pandemic. This goes to show that headlines about
global economics and politics do not always reflect what actually
drives investment markets.
The Company delivered a net asset value (NAV) total return
of 14.9% for the year. Although this was a positive result, it
was behind the 21.1% return from our Reference Index, the
MSCI AC Pacific ex Japan Index, Net of Dividends Reinvested
(measured in sterling). Once again, our returns came in the
second half of the year, as markets recovered from earlier
weakness and benefited from a fall in the US dollar, which tends
to help Asian markets. The Company’s share price total return
was 17.9%, as the difference between the share price and the
underlying value narrowed.
Our underperformance compared to the Reference Index was
largely due to not investing in a few very large Chinese internet
and e-commerce companies, which performed exceptionally
well and make up a large part of the index. However, these
companies pay little or no dividends, which does not fit with the
Company’s focus on providing rising income to shareholders.
The Portfolio Manager’s disciplined approach to prioritising
income means the Company does not invest in these stocks, even
if it impacts performance relative to the Reference Index. Not
owning them has actually helped us in previous years and the
long-term performance of the Company speaks for itself. Many
of the companies we do own also performed well, both in terms
of growth and income. You can find more detail in the Portfolio
Manager’s review, starting on page 10.
Revenue and dividend
The Company’s objective is to provide a total return for investors
primarily through investments in equities and equity-related
investments, of companies which are based in, or which derive
a significant proportion of their revenues from, the Asia Pacific
region and which offer attractive yields. This year the Company’s
revenue return increased to 11.59 pence per share (2024: 11.29p).
Having already paid interim dividends amounting to six pence
per share, the Board has declared a fourth interim dividend of
6.20 pence per share for the year ended 31 August 2025, which
is payable on 5 December 2025 to shareholders on the register
on 21 November 2025. The Board recognises that the timing
of dividends is important to shareholders that rely on these
payments for income. Therefore, we are actively considering ways
to smooth payments through the year.
Dividends play an important role in supporting investment returns
during uncertain times. To pay reliable dividends, companies
need to be financially healthy and able to deliver steady earnings
– qualities that also help them weather tough periods. Across
global markets, Asia stands out for offering attractive income
opportunities, with companies generally paying good dividends
while still keeping enough profits to reinvest in their businesses.
Ongoing improvements in corporate governance across the
region are also encouraging more companies to focus on
rewarding shareholders, which bodes well for both current and
future dividend growth.
Nick Winsor
Chair
“Your Company is well
positioned to capture
opportunities across the region
through its focus on high quality
businesses offering growing
dividend income”.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 1: Overview
6
Cost savings – increasing shareholder value
Following a thorough review of the potential advantages of
changing the Company’s depositary and custodian service
provider, the Board determined that appointing J.P. Morgan
Europe Limited would be in the best interests of the Company.
This transition was approved to take place after the end of the
financial year, with the migration of depositary and custodian
services beginning on 3 October 2025. From the same date,
J.P. Morgan Administration Services (Guernsey) also assumed the
role of designated administrator.
The transition to J.P. Morgan is expected to play an important
role in maintaining the Company’s ongoing charges figure (OCF)
at a competitive level, particularly amid an environment of rising
cost pressures across the industry. By partnering with a large,
well-resourced administrator such as J.P. Morgan, the Company
can benefit from greater efficiencies of scale, access to broader
infrastructure. These advantages should help to contain or
even reduce the ongoing cost base, ensuring that the Company
remains attractive to existing and prospective shareholders. In
turn, this commitment to cost discipline supports the Company’s
focus on delivering value to investors without compromising on
the quality of its investment management or governance.
Performance fee
The Board has negotiated a simplified investment management
fee structure with Schroders, including removal of the performance
fee, which should provide significant cost savings for shareholders,
based on historical performance, and greater transparency for
investors. Details of the new arrangements, which will come into
effect on 31 August 2026, can be found on page 32 of the report,
together with a breakdown of the fees payable for the period
covered by this Annual Report and Accounts. Despite the reduction
in fees, shareholders will continue to benefit from Schroder’s
proven investment capability, underpinned by extensive resource
in key Asian markets.
Gearing
During the year, the Company amended and renewed its one-
year multicurrency revolving credit facility with The Bank of
Nova Scotia, London Branch, on a secured basis. The facility was
reduced from £100 million to £75 million. On 31 August 2025,
the Company’s net gearing position was 3.9% taking into account
cash balances, compared to 4.4% at 31 August 2024.
Discount management
The Company continued to be active in buying back its shares
during the year. A total of 12,641,616 shares were bought back
into treasury. This represented 5.2% of issued share capital and
delivered a modest uplift to NAV. Since the year end, a further
1,788,750 shares have been bought back into treasury.
The discount at the end of August 2025 was 5.0% compared to
7.1% at the previous financial year end. The average discount
during the year under review was 5.6%. Your Board remains
focused on managing discounts and helping to provide liquidity
in the Company’s shares. As such, we believe that adopting a
rigid discount control mechanism that seeks to target a defined
maximum discount level regardless of market conditions is not in
the best interests of shareholders. Our policy on share buy backs
takes account of the level of discount at which the Company’s
peer group trades, prevailing market conditions and activity within
our sector. At the Company’s last AGM, authority was given to
purchase up to 14.99% of the issued share capital. We propose
that the share buyback authority be renewed at the forthcoming
AGM and that any shares so purchased be cancelled or held in
treasury for potential reissue.
Board succession
Board succession has been considered carefully during the
year to ensure that we effectively plan for Board changes in
the coming years. Paul Meader retired at the conclusion of the
Annual General Meeting last year and Alexa Coates will reach
the end of her nine-year tenure in February 2027. Consequently,
in accordance with the Board’s succession planning the Board,
through its Nomination and Remuneration Committee, is
undertaking a search process to identify a new non-executive
director using a third-party recruitment firm.
Biennial due diligence trip to Asia
During the year, the Board made its biennial trip to the Asia Pacific
region, visiting Singapore, Malaysia and Indonesia to meet the
Investment Manager’s team and visit several portfolio holdings.
These meetings helped deepen our understanding of regional
markets and gave us direct insight into local economic and policy
developments. The Board was also able to review ESG practices
on site, observing environmental initiatives, workforce conditions
and governance frameworks, and discuss key matters directly with
senior management.
Annual General Meeting (“AGM”)
The AGM will be held at 12.30pm on Wednesday, 3 December
2025 at the offices of Schroders at 1 London Wall Place, London
EC2Y 5AU. A presentation from Portfolio Manager, Richard
Sennitt, will be given at the AGM, and attendees will also be able
to ask questions in person and meet the directors. Details of
the formal business of the meeting are set out in the Notice of
Meeting on page 83 of this Annual Report. All shareholders who
are unable to attend in person are recommended to vote by proxy
in advance of the AGM and to appoint the Chair of the meeting.
If shareholders have any questions for the Board, please write, or
email using the details below. The questions and answers will be
published on the Company’s web pages before the AGM. To email,
please use: amcompanysecretary@schroders.com or write to us
at the Company’s registered office address: Company Secretary,
Schroder Oriental Income Fund Limited, 1 London Wall Place,
London, EC2Y 5AU.
Results webinar
Shareholders are invited to join Richard for a webinar reporting
on the year ended 31 August 2025 and to discuss the outlook for
the Company’s portfolio. The presentation will be followed by a
live Q&A session.
The webinar will take place at 09.00am
on Wednesday, 19 November
2025. Registration is is available at
https://www.schroders.events/SOI25 or by
scanning the QR code:
Outlook
After two years of strong double-digit returns for shareholders,
it is understandable to approach the future with some caution.
As Richard mentions in his report, markets have remained steady
so far, choosing not to panic in response to higher US tariffs.
However, we may start to feel the true impact of these new
trade barriers later in the year, once the short-term boost from
increased exports has faded.
It is worth noting that the US no longer has the same influence
on global trade as it once did, and there are real opportunities for
trade growth within Asia and with places like Europe and other
emerging markets. The region continues to lead in innovation and
plays a vital role in global supply chains, especially in technology.
While we expect some challenges in the months ahead, we remain
confident that Asia Pacific will continue to find ways to adapt and
succeed over the long-term. Your Company is well positioned to
capture opportunities across the region through its focus on high
quality businesses offering growing dividend income.
Nick Winsor
Chair
6 November 2025
Section 1: Overview
7
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Section 2: Investment Manager’s Review
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Section 2: Investment Manager’s Review
Investment Manager’s Review 10
Top 10 Investments 17
Investment Portfolio 19
10-year Financial Record 21
Investment Process and Approach 22
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Section 2: Investment Manager’s Review
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Introduction
I’m pleased to report another year of double-digit share price
and NAV total returns for the Company. In a year shaped by
geopolitical developments – most notably the wave of tariffs
introduced by President Trump – Asian equity markets have
continued to deliver robust returns. While performance was
behind the Reference Index, this reflects our disciplined income
approach and selective positioning, particularly in China, where
market leadership was concentrated in low-yielding growth
stocks. Importantly, our strategy continues to deliver strong
long-term results, with NAV returns ahead of the benchmark over
three, five and ten years and since inception.
The net asset value per share of the Company recorded a total
return of +14.9% over the period, compared with a total return
of +21.1% for the MSCI AC Pacific ex-Japan index, the Reference
Index. This relative underperformance was in large part due
to our underweight positioning in China. It should also be said
that it was a difficult relative period for many income-orientated
investors, as growth outperformed value and the lowest yielding
25% of companies in the Reference Index saw a total return of
more than 30% versus the 21.1% increase in the index as a whole.
Our income discipline therefore meant that we had little exposure
to those outperforming, low-yielding names, a number of which
were to be found in China.
Although the 1 year performance has lagged the Reference Index
it should be noted that the Company’s NAV has outperformed its
Reference Index by a significant margin over both 3 and 5 years
to end of August whilst delivering c.10% p.a. total returns.
Performance since inception
1
to 31 August 2025
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
2025
SOIF MSCI AC Pacific ex Japan (NDR) FTSE 100
Index 100 = 28 July 2005
Source: Morningstar, Schroders, Refinitiv Datastream. NAV Total Return (since inception Total Return NAV), net income reinvested, net of ongoing charges and portfolio costs and where applicable,
performance fees, GBP
1
28 July 2005. Any reference to regions/countries/sectors/stocks/securities is for illustrative purposes only and not a recommendation to buy or sell.
This report drills down further into the drivers of both absolute and relative performance, as well as factors influencing the current
investment landscape and the potential implications for investors.
Investment Manager’s Review
“We remain confident in our diversified
portfolio of Asian companies’ potential
to deliver attractive returns and
growing dividends to shareholders
over the long term”
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
10
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Performance of the MSCI AC Pacific ex Japan net dividends reinvested Index in GBP and USD – 31 August 2024
to 31 August 2025
90
95
100
105
110
115
120
125
130
Au g 24
Sep 24
Oct 24
Nov 24
Dec 24
Jan 2 5
Feb 25
Mar 2 5
Ap r 25
May 2 5
Jun 25
Jul 2 5
Au g 25
MSCI AC Pacific ex Japan Net USD MSCI AC Pacific ex Japan Net GBP
Source: Thompson Datastream as at 31 August 2025.
Rebased to 100
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may
go down as well as up and investors may not get back the amounts originally invested. The return may increase or decrease as a result of
currency fluctuations.
In our view, there are four key factors underlying the
outperformance of Asian stock markets versus global indices
in the 12 months to end-August 2025. Firstly, given that many
Asian countries are major exporters to the US, Asian markets
had already lagged on President Trump’s election and while
his initial “liberation day” tariff announcements caused a sharp
sell-off in equity markets globally – including the US itself – this
proved short-lived, as row-backs and some deals suggested that
final tariff levels would not be as severe as first thought. This
greater certainty arguably benefited the region more than others.
Secondly, US dollar weakness is usually positive for Asian equities
from a liquidity standpoint, which has acted as an additional
tailwind for markets during 2025. Thirdly, there is growing
comfort that China’s economy is stabilising, or at the very least is
no longer getting worse. As the region’s major power, even patchy
and underwhelming stimulus measures can play an important
role in supporting sentiment, which had been particularly fragile
at the start of the review period. Finally, the artificial intelligence
(AI) juggernaut righted itself after a brief wobble early in 2025,
caused by the release of the Chinese-developed DeepSeek
chatbot. While initial concerns centred around the possibility that
lower-cost large-language models (LLMs) would mean less need
for advanced new hardware, the US hyperscalers (eg. Google
or Microsoft) have since reaffirmed their capital spending plans,
which is positive for the many Asian companies that play a vital
role in the AI supply chain.
The more positive view around China meant it was the best
performing market in the region over the year in review. However,
market leadership was narrow, with the bulk of the return
coming from a handful of large internet platform or information
technology companies, including Tencent, Alibaba and Xiaomi,
which are not just among the biggest stocks in China, but also
occupy top 10 positions in regional Asian indices. With the
biggest Asian companies making up ever more of the index,
and with these stocks also among the best performers, it was a
more difficult backdrop for any active fund manager to achieve
outperformance. In our case, the Company’s investment strategy
means there needs to be an income rationale for any stock to be
included in the portfolio, and we are therefore unlikely to own
these low-yielding Chinese giants unless they radically change
their distribution policies.
Narrow markets
Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back
the amounts originally invested. The return may increase or decrease as a result of currency fluctuations.
Source:
1
Factset, MSCI, Schroders. 31 August 2025.
2
Factset, MSCI, Schroders. 31 August 2025. Based on MSCI AC Asia Pacific ex Japan. Countries and regions shown are for illustrative purposes only and should
not be viewed as a recommendation to buy or sell.
Percentage of stocks outperforming the index
2
20%
30%
40%
50%
60%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
10
13
16
19
22
25
28
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
Weight of largest 5 stocks in the MSCI AC Asia Pacific ex Japan index
Market has become more concentrated
1
%
YTD 08-
11
Section 2: Investment Manager’s Review
11
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The other major markets to outperform the Reference Index
during the year were Hong Kong and Singapore. Hong Kong did
well as interest rate expectations came down, thus easing liquidity,
as well as benefiting from better sentiment towards China and the
consequent recovery in the Chinese stock market, which led to a
number of mainland companies seeking H share listings on the
Hong Kong exchange. Strong GDP growth in Singapore and its
increasing importance as a regional hub – particularly in financial
services – has led to increased investor confidence, backed up by
regulatory initiatives to enhance the equity market. As a result,
the aggregate price/earnings valuation of the Singapore market
is now somewhat above historical averages, although not to the
extent seen in Australia or India. Taiwan, Korea and Australia all
performed positively, but lagged the index return.
Underperforming markets were concentrated in the Association
of Southeast Asian Nations (ASEAN) group (excluding Singapore),
with Indonesia the worst performer as investors focused on the
potential negative ramifications of the new government’s fiscal
strategy, leading to a large exodus of foreign money from the
stock market. Vietnam, Thailand, Malaysia and the Philippines also
lagged, albeit to a lesser extent. In the longer term, the ASEAN
nations should be beneficiaries of the diversification of Asian
manufacturing away from a reliance on China, but US trade policy
has cast a cloud over the markets recently, given high headline
tariff rates and a delay in negotiating deals.
Initiatives to boost shareholder value and reform capital markets
continue to be a theme across the region – as mentioned
above, in Singapore, as well as in China and Korea. While Korea
performed well in the second half of the review period – in part
because of the “value up” programme, which has the potential
over the longer term to result in a much greater corporate focus
on dividends – the early part of the year was overshadowed by
the imposition of martial law, leading to the impeachment of the
president. The fact that investors have swiftly been able to refocus
on the fundamentals for the market gives us confidence that the
stabilisation we have seen in recent months can endure.
In sector terms, the best returns in the Reference Index came
from communication services (a group that includes many
internet companies), industrials, consumer discretionary,
financials and IT stocks. Laggards included healthcare, materials
and energy companies, with the latter two affected by low oil
prices and the stalling property market in China, which has
reduced demand for commodities such as steel.
Market returns
Country returns in GBP
Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back
the amounts originally invested. The return may increase or decrease as a result of currency fluctuations.
Source: Schroders, FactSet, in GBP, as at 31 August 2025. Based on MSCI AC Pacific ex Japan. Countries and sectors shown are for illustrative purposes only and should not be viewed as a recommendation to
buy or sell.
Sector returns in GBP
Positioning and performance
While absolute returns for the year were strong (a NAV total
return of +14.9%, building on last year’s +18.2% return), our
underweight positioning in China was the main factor behind the
Company’s underperformance relative to the reference index,
which returned +21.1%. It was also a period that saw growth, as a
style, outperform value which typically is a headwind for income
given income is a value factor.
While China is by far the region’s biggest market, there are
two important reasons why our portfolio exposure tends to
be well below the index weight. The first is the preponderance
of state-owned enterprises (SOEs), particularly banks, where
alignment with the interests of minority (and especially overseas)
shareholders is questionable, given their propensity to be used
as policy tools by the government. That said, the ramifications of
state action are not confined to the SOE sector. In recent years,
the Chinese government’s focus on the supply side from a policy
perspective has meant that even in growth areas dominated by
private companies, such as renewable energy equipment and
electric vehicles, oversupply and an ultra-competitive environment
have led to poor returns. The second factor underlying our
below-index exposure to China, as mentioned above, is the high
weighting of internet platform and IT companies such as Tencent,
Alibaba and Xiaomi.
Our overweight positioning and stock selection in Hong Kong
had the biggest positive impact during the period, with strong
returns coming from stocks including Bank of China (Hong Kong),
stock exchange operator Hong Kong Exchange, and off-Reference
Index positions in real estate companies Swire Properties and
Hang Lung Group.
Being overweight in Singapore also contributed to returns, with
positive performance coming from Singapore Telecom, financial
services provider DBS Group, and Singapore Exchange (SGX),
another stock exchange business. However, stock selection pared
back the overall outperformance, particularly not owning the
internet firm Sea Ltd, which does not currently pay a dividend.
Australia, Taiwan and Korea are the largest markets in the
Reference Index after China. Our exposure to each of these was
broadly neutral across the period, with stock selection proving
positive in Australia but lagging in Taiwan and Korea. In Australia,
banks experienced a material valuation upgrade despite little
change in the economic outlook. This leads us to regard the
sector more cautiously, particularly given the current high
aggregate valuation of the Australian stock market.
In both Taiwan and Korea, our positioning in technology-
related companies was a headwind despite our largest holding
Taiwan Semiconductor Manufacturing Co (TSMC) performing
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strongly during the period, rising by some 27%. TSMC is a vital
link in the AI supply chain, with a dominant market position in
the manufacturing of the most cutting-edge chips. Detractors
included Samsung Electronics in Korea, along with chipmaker
United Microelectronics and power supply specialist Delta
Electronics in Taiwan.
The ASEAN markets (excluding Singapore) were a mixed
bag during the review period. Our one holding in Thailand –
Kasikornbank – did well, while an underweight position in Malaysia
proved beneficial, as did stock selection in the Philippines.
Vietnam – an off-Reference Index allocation – and Indonesia, an
overweight position, both weighed on returns. Indonesian banks
performed particularly poorly given the increased uncertainty
around the new government’s policies, resulting in a drag from
our positions in PT Bank Negara Indonesia and Bank Mandiri.
In sector terms, our largest allocation was to financials, where
we have broad exposure that includes stock exchanges and
insurance companies, alongside the more traditional banks.
This sector was the largest contributor to relative performance,
with both stock selection and our overweight positioning proving
positive.
Positive contributions also came from stock selection in real
estate (the second largest overweight position relative to
the index), and being underweight healthcare and materials.
Our lack of exposure to Chinese internet platforms and
e-commerce companies contributed to underperformance in the
communication services and consumer discretionary sectors,
while positioning in consumer staples proved a slight drag. As
mentioned above stock selection in IT was a headwind.
Across the year, our largest increases in country exposure were
in China, Hong Kong and India, while the largest reductions were
in Korea, Indonesia and Singapore. While some of these moves
(particularly in China, Korea and Indonesia) reflected market
movements, we also made several changes to the portfolio during
the period.
Regional breakdown of portfolio ex gearing*
0% 5%
10% 15% 20% 25% 30%
Information Technology
Bank s
Communication Services
Other Financials
Real Estate
Consumer Discretionary
Consumer Staples
Materials
In dustrials
Ut ilities
Ener gy
Health Care
Portfolio Weight
MSCI AC Pacific ex Japan Weight
0% 5% 10% 15% 20% 25% 30% 35% 40%
Taiwan
Australia
China
Singapore
Hong Kong
Korea
India
In done si a
Philippines
Thailand
Malaysia
Vietnam
Japan
New Zealand
Portfolio Weight MSCI AC Pacific ex Japan Weight
*Gearing (net cash less loans outstanding) currently at 3.9%.
Source: Schroders as at 31 August 2025.
We added a number of positions in China, including EV battery
maker CATL, sportswear specialist Anta Sports and premium
alcoholic beverage firm Kweichow Moutai. We discussed Anta
Sports and Kweichow Moutai in the half-year report, but in brief,
both are beneficiaries of the trend towards home-grown rather
than international brands, and both are quality businesses whose
shares we were able to buy at relatively attractive valuations,
given lingering concerns over China’s economic recovery and
its consumers’ willingness to spend. CATL is a global leader in
rechargeable lithium ion batteries for electric vehicles and energy
storage systems. Its competitive advantage lies in its scale and
advanced battery technology, and it has the potential to grow its
earnings at 20% p.a. over the next five years, whilst also paying an
attractive dividend.
During the year we also initiated an allocation to India, a country
where we previously had no exposure and which is not included
in the Reference Index. This included Power Grid Corporation
of India, which as the name suggests is a utility company, and
stands to benefit from the growth in transmission capacity of
the Indian electricity network, with renewable solar and wind
projects needing to be linked into the wider grid. While the Indian
equity market remains highly valued, we were able to buy into the
position following a market sell-off earlier in the year.
Other notable new holdings include Taiwanese IT company
Largan Precision, which makes precision optical plastic lenses
for smartphones, tablets, laptops and more, the Malaysian
bank CIMB, and the Hong Kong-listed but Macau-based casino
operator Galaxy Entertainment.
We also added to existing positions across a range of countries
and sectors, including real estate (China Resources Land and
two Singapore REITs under the CapitaLand umbrella), pan-Asian
insurer AIA, Taiwanese tech companies Hon Hai Precision Industry
and ASE Technology as well as Korean carmaker Kia Corporation
and Chinese clothing manufacturer Shenzhou International.
Although financials remain our largest sector weighting, we
reduced our exposure and exited several positions during the
year. These included two stock exchange operators, Singapore
Exchange (sold following outperformance) and the Australian
ASX, where we felt the investment thesis had weakened. Other
exits included a trio of banks – PT Bank Negara Indonesia, the
Australian bank Westpac and Korean financial KB Financial Group.
Other reductions in financials included SMFG in Japan and UOB in
Singapore.
13
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We also reduced our exposure to the IT sector, selling out
of the relatively low-yielding Delta Electronics in Taiwan,
and Singapore’s Venture Corporation, as well as trimming
foundry TSMC and fabless design house Mediatek following
outperformance. As noted in the interim report, we also reduced
the size of our position in Samsung Electronics, partly reflecting
concerns over delays around new product qualification.
Other names we exited included Korea’s SK Telecom and
Deterra Royalties, an Australian resources firm.
Sector breakdown of portfolio ex gearing*
0% 5% 10% 15% 20% 25% 30%
Information Technology
Bank s
Communication Services
Other Financials
Real Estate
Consumer Discretionary
Consumer Staples
Materials
In dustrials
Utilities
Ener gy
Health Care
Portfolio Weight MSCI AC Pacific ex Japan Weight
0% 5% 10% 15% 20% 25% 30% 35% 40%
Taiwan
Australia
China
Singapore
Hong Kong
Korea
India
In donesia
Philippines
Thailand
Malaysia
Vietnam
Japan
New Zealand
Portfolio Weight MSCI AC Pacific ex Japan Weight
*Gearing (net cash less loans outstanding) currently at 3.9%.
Source: Schroders as at 31 August 2025.
Investment outlook
While it may have been a surprise to see Asian equity markets
perform so well in the face of a US trade war primarily targeted
at the region’s exporters, we would caution that the road ahead
may not be so smooth. The anticipation of higher tariffs led to
a significant uptick in exports to the US from the Pacific Rim
(with the exception of China) in the early part of 2025. This “front
loading” is likely to unwind in the second half of the year now
that the higher tariffs are in effect, which could have a negative
impact on the sales and profits of some of the region’s exporting
companies (see chart below).
Asia’s earnings are historically correlated to exports Near term frontloading of exports to beat tariffs
Source: Left chart: Refinitiv, Factset, as at August 2025 Right chart: Refinitiv, April 2025. Countries and regions shown are for illustrative purposes only and should not be viewed as a recommendation to buy
or sell
%
-30%
-20%
-10%
0%
10%
20%
30%
40%
-60
-40
-20
0
20
40
60
80
Jan 07 Jan 09 Jan 11 Jan 13 Jan 15 Jan 17 Jan 19 Jan 21 Jan 23 Jan 25
MSCI AC PxJ - EPS YoY NTM Growth
US Imports from Pacific Rim (yoy, 3mav), rhs
-30
-20
-10
0
10
20
30
2002 2006 2010 2014 2018 2022
US import volumes from World (% y/y)
World Ex-US import volumes (% y/y)
However, while the US tariffs have grabbed the headlines –
particularly in regard to companies that export to the US – the
increase in intra-Asian trade as well as trade with non-Asian
emerging countries in recent years could provide a counterweight
to the negative impact of US protectionism, albeit part of this
growth has come from the reorientation of supply chains. Since
China’s accession to the World Trade Organisation in 2001, the
map of world trade has been transformed, and most nations
of the world now do far more business with China than with
the US, which both decreases the impact of US tariffs on many
exporting countries, and makes it more difficult for the Trump
administration to do deals at China’s expense.
Section 2: Investment Manager’s Review
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Trump 2.0 – US no longer the largest trading partner for most of the world making it harder to do deals at
China’s expense
Source: Visual Capitalist, US Census, Customs of China, Morgan Stanley April 2025.
The regions and countries shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.
Global trade dominance: US vs China
A further impact of the new US administration’s policies has been
a weakening in the dollar, in part as a result of debt-funded fiscal
stimulus swelling the government balance sheet together with
concerns around US exceptionalism and declining interest rate
expectations. Dollar weakness has historically been supportive
for Asian equity markets, and this can be observed in the region’s
performance in 2025.
Softer US dollar historically supportive backdrop for Asian markets
Within the region, the Chinese economy remains weak, as
consumer confidence is still extremely low. Although the
government has announced some measures to support the
economy, these remain quite small in scale and are unlikely to
drive up growth significantly in the face of a still-contracting
property market and declining private credit extension. The
Chinese and Hong Kong markets have benefited from investor
hopes that the government would soon start to address some
of the structural over-supply/competition concerns across
various industrial sectors. Going by the rather confusing name
of “anti-involution” policy, the idea is that companies will be
asked to rein in excessive price discounting and moderate their
capacity expansion in industries where supply already exceeds
natural demand. While in many cases this would be welcome, it’s
important to bear in mind two caveats.
Firstly, it is harder for the government to control the actions of
the private sector than state-owned enterprises. Secondly, and
perhaps more significantly, the economy in China is likely to face
headwinds in the second half as exports slow down. As a result,
any supply-side reforms, which inevitably cause disruption to jobs
or incomes, will be harder for the economy to absorb without
threatening the government’s overall stated GDP growth target.
So with China’s domestic and external sectors both facing
challenges, we remain underweight the market, though this
is offset to an extent by our overweight to Hong Kong. Our
structural concerns around China’s demographics and economic
model, with its overreliance on manufacturing and exports,
remain and are unlikely to be addressed by short-term stimulus.
IT remains an overweight sector for us, but one which we have
moderated as stocks there have rallied hard on the AI theme, with
froth being seen in some areas. Although earnings momentum
remains strong, several Asian IT stocks look vulnerable to a
correction should there be any disruption to the narrative of
growing AI datacentre capital expenditure. For now, however, there
is little sign of such a slowdown from the US companies leading
the investment, despite limited evidence of enterprise or consumer
willingness to spend significant sums of money on AI services.
With much of the strong Asian market performance this year a
result of multiple re-rating, rather than improved earnings, the
resultant aggregate valuations no longer look cheap, with the
market trading above long-term averages on measures such as
the price/earnings (P/E) ratio. However, the region as a whole
remains attractively valued compared to developed markets and,
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as we go forward, we would expect underlying earnings to start
to be a bigger driver of share prices. This may see the market
broaden out from the narrow focus it has had so far this year,
potentially resulting in some of the frothier areas of the market
taking a breather.
Asian aggregate valuations relatively attractive in a global context – less so against own history
Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back
the amounts originally invested. The return may increase or decrease as a result of currency fluctuations.
Source:
1
Citi Investment Research, MSCI, Refinitiv Datastream as at 31 August 2025.
2
Refinitiv Eikon Datastream, MSCI, PE data based on forecast data, to 31 August 2025. Based on MSCI AC Asia Pacific ex Japan,
and MSCI AC Asia Pacific ex Japan versus MSCI World in US$. The regions and countries shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.
Asia Pacific ex Japan versus Developed Markets relative
forward 12m consensus Price / Earnings (P/E) ratio
2
Asia Pacific ex Japan Historic Price / Earnings (P/E) (x)
1
x
5
10
15
20
25
30
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
Asia Pacific ex Japan price / earnings ratio
Average
Average - 10 years 31 August 2025
40%
50%
60%
70%
80%
90%
100%
110%
120%
130%
May-01 May-06 May-11 May-16 May-21
MSCI AC Asia Pacific ex Japan/World +12m P/E
Average
+/-1 stan dard deviation
Turning to dividends, as the US dollar has weakened, the pound
has become stronger, which is a headwind for the Company’s
dividend income given our accounting currency is sterling.
However, the dividend yields of many Asian markets remain
attractive in a global context, and as a region the average payout
and gearing ratios remain low versus other markets, which should
hopefully translate into dividends being relatively resilient. The
Company’s income discipline is a critical part of the investment
proposition, delivering both an attractive yield and an important
source of diversification for investors who may already be highly
exposed to the domestic UK market. Focusing on companies
that are able to reward their shareholders with dividends means
prioritising balance sheet sustainability and good governance,
both features that should stand investors in good stead over time.
Asian yield in context
MSCI AC Pacific ex Japan versus MSCI World relative
dividend yield
2
Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back
the amounts originally invested. The return may increase or decrease as a result of currency fluctuations.
Source:
1
Factset, MSCI as at 31 August 2025. Pacific ex Japan is based on MSCI AC Pacific ex Japan.
2
Factset, MSCI as at 31 August 2025.
The regions and countries shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.
Yield by region
1
Dividend yield, %
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
UK Europe ex UK USA Japan Pacific ex Japan
75%
85%
95%
105%
115%
125%
135%
145%
155%
165%
175%
Jan-00 Jan-03 Jan-06 Jan-09 Jan-12 Jan-15 Jan-18 Jan-21 Jan-24
MSCI AC PxJ/World 12m trailing DY (%)
+1.S.D.
-1.S.D.
Average
Looking ahead, while challenges do remain – from tariff-related
disruption to structural imbalances in China – we remain
confident in our diversified portfolio of Asian companies’
potential to deliver attractive returns and growing dividends to
shareholders over the long term. Whether through enabling
the AI revolution, meeting the evolving needs of consumers,
supporting the transition to a greener economy, or expanding
financial services to an increasingly affluent population, our
holdings are well positioned to benefit from the region’s dynamic
growth. The Company’s income discipline continues to offer
investors a compelling blend of yield, resilience and diversification
– qualities that have now underpinned 19 consecutive years of
dividend growth since launch.
Thank you for your continued trust in the Schroder Oriental
Income Fund.
Richard Sennitt
Portfolio Manager
Schroder Investment Management Limited
6 November 2025
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
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Top 10 Investments
At 31 August 2025
Market: South Korea
Sector: Electronics
Portfolio exposure: £38,443,000
% of portfolio: 5.0%
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £87,888,000
% of portfolio: 11.5%
Market: Singapore
Sector: Telecommunications
Portfolio exposure: £31,318,000
% of portfolio: 4.1%
Market: Taiwan
Sector: Electronics
Portfolio exposure: £26,503,000
% of portfolio: 3.5%
2
1
3 4
Samsung Electronics
TSMC
Singapore
Telecommunications
Hon Hai Precision Industries
TSMC is a Taiwanese provider of
semiconductor manufacturing services
and the world’s largest logic chip contract
manufacturer. Its dominant position in the
manufacturing of the most cutting-edge
chips is a result of a long track record of R&D-
driven innovation. TSMC’s customers include
most of the world’s most advanced chip
design companies, for applications ranging
from smartphone processors to the most
advanced AI chips.
Samsung Electronics is a Korean
semiconductor and electronics
manufacturing company. Its key products
include semiconductors (logic and memory
chips), mobile phone handsets, consumer
electronics, and home appliances. As well
as being one of the leading players in both
volatile and non-volatile memory, Samsung
is one of only a handful of companies in
the world able to manufacture the more
advanced logic chips at scale.
Singapore Telecommunications is a leading
telecommunications company based in
Singapore. As well as being the leading
player in Singapor
e it also owns the
number 2 player in Austr
alia, Optus, as well
as having a number of stakes in mobile
operators across the region including
in Indonesia and India. Management
has been focused on improving core
operations whilst unlocking value by
allocating capital more efficiently.
Hon Hai Precision Industry Co., Ltd.,
known as Foxconn, is a leading Taiwan-
based multinational electronics contract
manufacturer. It is known for assembling
a significant portion of Apple’s products,
including the iPhone. Its server
manufacturing business is growing
rapidly and is benefiting from the demand
for high-end servers needed for AI
applications.
Logos are the property of their respective entities.
Section 2: Investment Manager’s Review
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•
Market: Singapore
Sector: Financials
Portfolio exposure: £22,262,000
% of portfolio: 2.9%
Market: Singapore
Sector: Financials
Portfolio exposure: £25,326,000
% of portfolio: 3.3%
Market: Australia
Sector: Telecommunications
Portfolio exposure: £21,583,000
% of portfolio: 2.8%
Market: Hong Kong
Sector: Financials
Portfolio exposure: £22,338,000
% of portfolio: 3.0%
Market: Taiwan
Sector: Industrials
Portfolio exposure: £19,836,000
% of portfolio: 2.6%
Market: China
Sector: Consumer appliances
Portfolio exposure: £22,290,000
% of portfolio: 2.9%
8
5
9
6
10
7
DBS
Oversea-Chinese Banking
Telstra
BOC Hong Kong
MediaTek
Midea Group
DBS is a financial services group
headquartered in Singapore. Its services
include retail and corporate banking,
wealth management, and capital
markets solutions. Renowned for its
digital innovation and customer-centric
approach, DBS has been recognised as
one of the world’s best digital banks. The
bank operates across key markets in Asia,
including China, India, Indonesia, and
Taiwan.
OCBC is a Singaporean financial services
provider, offering banking, insurance,
asset management, and stockbroking
services. The group operates across Asia
and also owns a stake in China’s Bank of
Ningbo. The group offers private banking
services through its Bank of Singapore
subsidiary.
Telstra is Australia’s largest
telecommunications and technology
company. Its key products and services
include mobile and fixed-line telephony,
broadband internet, pay television, and
digital entertainment. Telstra benefits
from its leading position in 5G and
operates in a market that has seen
consolidation. Management has also been
focussed on improving efficiencies across
its business.
Bank of China Hong Kong is a leading
financial services provider based in
Hong Kong serving individual and
corporate clients with products like
loans, mortgages, credit cards, foreign
exchange, and insurance. As a major
subsidiary of Bank of China, BOCHK plays
a pivotal role in facilitating trade and
investment flows between Hong Kong,
mainland China, and the rest of the world.
The bank is also a designated clearing
institution for renminbi (RMB) business in
Hong Kong, reinforcing its position as a
critical player in the internationalisation of
the RMB.
MediaTek Inc is a Taiwanese company
engaged in the design and distribution of
semiconductor chips. Their products focus
on mobile connectivity, for example,
5G mobile communication chips, as well
as Bluetooth and WiFi micr
ochips, and are
mainly used in mobile phones, digital TVs,
PCs, home appliances, wearable devices,
and Internet of Things de
vices.
Midea Group is a Chinese corporation,
with a global presence, specialising
in consumer appliances and HVAC
(heating, ventilation, and air conditioning)
systems. It produces air conditioners and
refrigerators as well as offering robotics
and industrial automation solutions aimed
at enhancing manufacturing efficiency.
Logos are the property of their respective entities.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
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Investment Portfolio
As at 31 August 2025
£’000 %
Taiwan
TSMC 87,888 11.5
Hon Hai Precision Industries 26,503 3.5
MediaTek 19,836 2.6
ASE Technology 15,502 2.0
Largan Precision 8,094 1.1
Uni-President Enterprises 7,329 1.0
United Microelectronics 5,566 0.7
Chicony Electronics 3,819 0.5
Total Taiwan 174,537 22.9
Australia
Telstra 21,583 2.8
National Australia Bank 14,939 1.9
Rio Tinto
1
14,820 1.9
BHP Billiton
1
14,288 1.9
Coles Group 14,206 1.9
ANZ Group 13,769 1.8
Suncorp 11,240 1.5
Woodside Energy 7,850 1.0
Woolworths 6,962 0.9
Sonic Healthcare 6,724 0.9
Orica 5,230 0.7
Total Australia 131,611 17.2
China
Midea Group warrants 10/07/26 A and H Shares
2
22,290 2.9
NetEase 17,664 2.3
China Pacific Insurance
2
10,373 1.4
Contemporary Amperex Technology 10,131 1.3
Anta Sports Products
2
9,757 1.3
Ping An Insurance H shares
2
9,202 1.2
Shenzhou International
2
8,851 1.1
China Resources Land
2
8,146 1.1
Sany Heavy Industry A Shares 7,656 1.0
Kweichou Moutai 7,617 1.0
China Petroleum & Chemical H shares
2
7,357 1.0
China Yangtze Power 5,976 0.8
Total China 125,020 16.4
Singapore
Singapore Telecommunications 31,318 4.1
Oversea-Chinese Banking 25,326 3.3
DBS 22,262 2.9
CapitaLand Integrated Commercial Trust (REIT^) 12,425 1.6
CapitaLand Ascendas (REIT^) 11,028 1.5
United Overseas Bank 3,841 0.5
Total Singapore 106,200 13.9
£’000 %
Hong Kong (SAR)
BOC Hong Kong 22,338 3.0
Hong Kong Exchanges & Clearing 17,744 2.3
AIA Group 17,141 2.3
HKT Trust and HKT 8,859 1.2
Link REIT^ 8,602 1.1
Swire Properties 7,072 0.9
Galaxy Entertainment 5,582 0.7
Hang Lung Group 4,873 0.6
Hang Lung Properties 3,383 0.4
Swire Pacific B 3,373 0.4
Total Hong Kong (SAR) 98,967 12.9
South Korea
Samsung Electronics (including preference
shares)
38,443 5.0
Samsung Fire and Marine Insurance (including
preference shares)
14,836 2.0
Kia Corporation 10,067 1.3
Total South Korea 63,346 8.3
India
Power Grid Corporation of India 9,629 1.3
Indus Towers 6,181 0.8
Total India 15,810 2.1
Indonesia
Bank Mandiri 7,440 1.0
Telekomunikasi Indonesia 7,115 0.9
Total Indonesia 14,555 1.9
Philippines
International Container Terminal Service 9,298 1.2
Total Philippines 9,298 1.2
Thailand
Kasikornbank NVDR* 8,800 1.2
Total Thailand 8,800 1.2
Malaysia
CIMB 7,953 1.0
Total Malaysia 7,953 1.0
Vietnam
Vietnam Dairy Products 5,706 0.7
Total Vietnam 5,706 0.7
Investments are classified by the Manager in the country of their main business operations or listing. Stocks in bold are the 20 largest
investments, which by value account for 61.9% (2024: 59.8%) of total investments and derivative financial instruments.
Section 2: Investment Manager’s Review
19
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
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£’000 %
Japan
Sumitomo Mitsui Financial Group 2,008 0.3
Total Japan 2,008 0.3
Total Investments
3
763,811 100.0
1
Listed in UK
2
Listed in Hong Kong
3
Total investments comprise:
£’000 %
Equities and NVDR 715,212 93.6
Preference shares 35,024 4.6
Warrants 13,575 1.8
Total investments 763,811 100.0
*
NVDR means non-voting depositary receipts
^
REIT means real estate investment trust
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
20
Ten-Year Financial Record
At 31 August 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Shareholders’ funds (£’000) 528,662 635,466 642,711 661,804 646,699 751,419 724,147 648,208 700,315 732,095
NAV per share (pence) 222.56 258.63 252.94 251.94 239.28 280.94 277.24 256.01 289.63 319.47
Share price (pence) 224.50 261.00 250.00 253.00 233.00 271.50 264.00 244.50 269.00 303.50
Share price premium/(discount)
to NAV per share (%)
0.9 0.9 (1.2) 0.4 (2.6) (3.4) (4.8) (4.5) (7.1) (5.0)
Gearing (%)
1
0.4 2.0 4.5 5.3 4.0 2.7 4.0 4.4 4.4 3.9
For the year ended 31 August 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net revenue return after taxation (£’000) 21,296 23,939 26,421 27,376 26,537 27,682 34,105 30,399 27,936 27,015
Revenue return per share (pence) 9.03 9.94 10.52 10.60 9.86 10.36 12.94 11.81 11.29 11.59
Dividends per share (pence) 8.50 9.20 9.70 10.10 10.30 10.50 11.40 11.80 12.00 12.20
Ongoing charges (%)
2
0.89 0.85 0.83 0.86 0.87 0.85 0.86 0.88 0.88 0.90
Performance
3
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
NAV total return (%) 32.1 20.6 1.5 3.8 (0.9) 21.9 2.5 (3.5) 18.2 14.9
Share price total return (%) 32.8 20.7 (0.6) 5.4 (3.9) 21.2 1.2 (3.1) 15.3 17.9
1
Borrowings used for investment purposes, less cash, expressed as a percentage of net assets.
2
Ongoing Charges represents the management fee and all other operating expenses excluding finance costs, transaction costs and any performance fee
payable, expressed as a percentage of the average daily net asset values during the year.
3
Source: Morningstar. Rebased to 100 at 31 August 2015.
Source: Morningstar. Rebased to 100 at 31 August 2015.
NAV and share price total returns over ten years to 31 August 2025
100
125
150
175
200
225
250
275
300
31 August 2015
31 August 2016
31 August 2017
31 August 2018
31 August 2019
31 August 2020
31 August 2021
31 August 2022
31 August 2023
31 August 2024
31 August 2025
NAV Total Return (LHS)
Share Price Total Return (LHS) Dividends per share (pence) (RHS)
0
2
4
6
8
10
12
14
16
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Section 2: Investment Manager’s Review
21
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Investment Process and Approach
1
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Investment team
A key strength of the Manager is its team of investment
professionals based in the region. The UK-based Portfolio
Manager Richard Sennitt has over three decades of experience.
He is supported by a team of 47 equity analysts based across
6 offices in Asia Pacific ex-Japan, who have an average of over
17 years’ investment experience
2
.
Being based in the region means that the analysts are in regular
direct contact with the companies which they are covering, with
the Manager carrying out over 2,700 meetings with regional
companies per year
3
. This regular contact allows the team to gain
a thorough understanding of a company’s business model and
management culture, the key issues they are facing and their
strategies to navigate an ever-changing business environment.
Moreover, since the local investors in each country are usually
the key owners of the local markets, being present on the ground
enables the Manager to understand how those major local
investors perceive and value companies.
It is this knowledge base, paired with the expertise of the
Manager’s investment professionals, which truly adds value to
the bottom-up approach to stock selection. The locally based
analyst team is supplemented by other resources across the
Schroders group, including other equity teams focused on Global
and Emerging markets, as well as the UK-based Sustainable
Investment team.
Stock research
The key input into the Manager’s stock selection decisions is
the fundamental research carried out by the analyst team, the
majority of which is done using internal research tools and
valuation models.
With a universe of around 5,000 potential names to choose
from, in what has historically been a volatile region, the Manager
has a bias towards “quality” companies. The analysts look to
identify those companies which are most likely to be able to grow
shareholder value over the long term, by making assessments of
the financial and non-financial factors (including sustainability)
which influence company returns. The analytical focus is on
the future trend in a company’s return on invested capital
(“ROIC”) relative to its weighted average cost of capital (“WACC”),
in the belief that this reflects the attractiveness and durability
of the business model and serves as a predictor of long-term
shareholder returns.
Analysts spend a significant amount of their time meeting with
companies in their sectors, as well as with industry experts and
colleagues, so that they can evaluate the “moats” around the
businesses they are analysing and ultimately be in a position to
make a recommendation.
The output of this work is usually in the form of research notes
and company models, as well as standard data points – a fair value
and recommendation grade, its Shareholder Return Classification
(“SRC”) which is the assessment of the company’s return profile as
described above, and an ESG appraisal.
Portfolio construction
Although the Asian team’s analysts are the primary source of
stock ideas. The Portfolio Manager also generate stock ideas
through their own research (for example, by undertaking research
visits and meetings with company management) and by drawing
on a number of other sources including other investment
professionals within Schroders, quantitative screens, and external
research providers.
Using all of these inputs, the Portfolio Manager will decide
which stocks to hold, and at what weightings. Many of the
stocks will already have attractive yields, but the Manager also
looks to exploit opportunities in stocks which are set to benefit
from improving capital efficiency, rising returns and increasing
shareholder distributions. There is no minimum yield requirement
applied to every stock, but portfolio construction is carried out
with reference to the overall portfolio yield as a key part of the
Company’s total return investment objective.
In doing so, they will consider all the outputs from the analysts’
work (such as the upside to fair value), the level of conviction they
have in the investment thesis and any identified risks (including
those relating to ESG) relative to the rest of the opportunity
set. The primary objective of this process is to create a yield-
orientated portfolio with an appropriate level of stock-specific risk
as the primary driver of returns.
While the portfolio construction process is primarily driven by
bottom-up stock selection, there is also a top-down regional
allocation review process, carried out on a monthly basis,
combining the output of an in-house quantitative model and the
qualitative views of the Portfolio Manager, informed by data and
analysis from both internal and external research teams.
The purpose of this top-down overlay is to identify and adjust for
any unwanted systematic risks (or missed opportunities) which
have resulted from the bottom-up process. Top-down factors
looked at in this process may include macroeconomic conditions,
inflation and interest rate dynamics, politics/geopolitics,
aggregate market valuations and measures of investor sentiment.
This allows the Portfolio Manager to construct the portfolio
using the most attractive bottom-up ideas, while helping ensure
sufficient diversification and taking into consideration any
important top-down factors. They will also harness Schroders’
proprietary risk management systems to provide a quantitative
view of the characteristics of the portfolio.
This results in a relatively diversified portfolio, typically with a
“quality” bias.
Integration of ESG into the investment process
It is important to note that the Company does not have a specific
ESG/sustainability orientation, or target outcome. The Company’s
investment objective can be found in the Strategic Report on
page 27.
The approach of the Manager is to incorporate into its decision-
making a thorough assessment of management quality,
environmental, social and governance factors, whether implicitly
or explicitly. The Manager believes that integrating an analysis and
evaluation of ESG factors in the security valuation and selection
process helps to enhance and protect long-term shareholder
value, and that the appraisal of non-financial factors, including
ESG considerations, contributes to a better understanding of a
company’s risk characteristics and return potential. Assessing
the durability of a company’s returns and financial position has
therefore always been at the core of the Manager’s research and
investment decisions in Asia.
1
The above research and ESG framework covers investments in companies researched by our team of locally based Asia ex Japan analysts. The detail of research
and ESG coverage in other regions where analysts report locally (e.g. Australia, India) may differ, but is underpinned by the same broad approach.
2
Team information as at September 2025. The 47 ex-Japan analysts includes Schroders’ local specialist team of equity analysts in Sydney, as well as a joint-
venture team of Indian equity analysts at Axis Asset Management (Axis AMC) in Mumbai.
3
Calendar year 2024. Source: Schroders.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
22
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Schroders’ sustainability practice has a history of over 20 years.
Today a team of more than 30 dedicated members of the
Sustainable Investment team (as at September 2025) develop
proprietary ESG tools, such as CONTEXT
TM
and SustainEx
TM
and
oversee ESG analysis across Schroders, supporting individual
investment teams, such as the Asian equities team. The carbon
footprint of the companies and the portfolio are monitored over
time and the proprietary SustaineEx
TM
tool measures positive and
negative externalities generated by the companies.
Asia Context
TM
, which is the principal tool employed for the
Manager’s ESG analysis as it pertains to the Company’s
investments, captures the Manager’s ESG analysis in one template
using a stakeholder-based framework. It provides a clear and
broad roadmap on the issues requiring engagement, helps
refresh the team’s focus on ROIC and enhances appreciation of
the downside and upside risks to a company’s business model.
The context framework
Understanding how a company manages it relationships with stakeholders
Source: Schroders.
To enhance the Asia team’s ESG expertise in Asia, two members of
the Sustainable Investment team are based in the region, directly
supporting the Asian capability and ensuring they are kept fully
informed of the relevant output of the Sustainable Investment
team in London.
ESG analysis impacts the investment process in four ways:
1. Initial screening – ESG helps determine which companies are
considered to be investable as part of an initial screening,
which is in addition to Schroders’ group-wide exclusions
1
.
2. Durability of earnings – ESG analysis helps the investment
team understand the impact ESG externalities may have on the
future earnings power of the business and the ROIC and SRC
of the company.
3. Fair Value and recommendation – ESG is an indirect and direct
input into the fair value estimate of a company; indirect to the
extent that a company’s SRC may influence the assumptions
used in establishing the fair value estimate of a company; and
direct, to the extent that the Manager may apply an additional
explicit discount/premium to that fair value estimate.
4. Portfolio construction – ESG helps shape portfolio construction
and may influence how Portfolio Managers size positions. For
example, poor ESG performance or heightened ESG risks may
result in a decision to underweight a security, hold a smaller
position size or avoid an investment completely. There is no
automatic rule – each investment opportunity is assessed on
a case-by-case basis, with the focus on the materiality of ESG
factors on a company’s valuation and risk profile.
In summary ESG analysis helps determine which companies are
looked at, how the Manager assesses their durability and, hence,
how they are valued. And while company valuations ultimately
drive portfolio construction, ESG insights play a role in the
investment process and may influence how Portfolio Managers
size positions within a portfolio. Furthermore, the Manager’s ESG
analysis is broad reaching and is not only concerned with the
potential downside risks that are identified, but also the upside
return implications for stocks in which the Company invests.
Active Ownership
Schroders has a long history of active ownership, including
engagement with companies on ESG related matters, for the past
two decades.
Direct company contact is an important component of the initial
due diligence and ongoing monitoring process. These regular
engagements form an important aspect of the Manager’s role
as stewards of clients’ capital and allows deployment of capital
in businesses with long-term sustainability of returns and
shareholder value creation.
Corporate Governance analysts in the Sustainable Investment
team will also work alongside investors and internal compliance
and legal teams to vote all proxies where practically possible,
and to ensure the Manager’s voting activities comply with its ESG
policy.
Employees
Suppliers
Communities
community? Have you committed to
protect human rights?
Regulators
How competitive is your market? Are
you paying a fair rate of tax?
Customers
How is your brand perceived? What’s
in your produce pipeline?
transition plan? Are you managing
Company
G
o
v
e
r
n
a
n
c
e
G
o
v
e
r
n
a
n
c
e
Environment
Have you put in place an energy
operating impacts?
How exposed is your supply chain to
disruption risks? How strong are your
supplier relationships?
How do your employees perform? How
motivated is your team?
What support do you offer your local
1
Schroders applies group-level exclusions to all Schroders funds that are directly managed. These group-level exclusions relate to controversial
weapons and companies that generate more than 20% of their revenues from thermal coal mining. Details can be found at the following link
https://www.schroders.com/en-gb/uk/individual/sustainability/active-ownership/how-we-vote/
Section 2: Investment Manager’s Review
23
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
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24
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 3: Strategic Report
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Section 3: Strategic Report
The Company 26
Stakeholder Engagement – Section 172 Report 31
Principal and Emerging Risks and Uncertainties 35
25
Section 3: Strategic Report
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Purpose, values and culture
The Company’s purpose is to create
long-term shareholder value, in line
with the investment objective.
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 sets
out the effective management or mitigation
of the risks faced by the Company and,
to the extent it does not conflict 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.
Acting with high standards of integrity and
transparency, the Board is committed to
encouraging a culture that is responsive
to the views of shareholders and its wider
stakeholders.
As the Company has no employees and
acts through its service providers, its
culture is represented by the values and
behaviour of the Board and third parties
to which it delegates. The Board aims to
fulfil the Company’s investment objective
by encouraging a culture of constructive
challenge with all key suppliers and
openness with all stakeholders. The
Board 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.
The Company
Business model
The Company is a listed investment trust
that has outsourced its operations to third
party service providers.
The Board has appointed Schroder
Unit Trusts Limited (the “Manager”) to
implement the investment strategy and to
manage the Company’s assets in line with
the appropriate restrictions placed on it by
the Board, including limits on the type and
relative size of holdings which may be held
in the portfolio and on the use of gearing,
cash, derivatives and other financial
instruments as appropriate.
The terms of the appointment of the
Manager, and the delegation by the
Manager of investment management
services to Schroder Investment
Management Limited (“SIM” or the
“Investment Manager”), are described more
comprehensively in the Directors’ Report.
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.
• 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, PR and sales
capability of the Manager
• Support from the
corporate broker with
secondary market
intervention to support
discount/premium
management
• Portfolio and risk
management
• Achievement of KPIs
• Use of gearing
• Discount/premium and
liquidity management
through share issuance
and repurchase
SHAREHOLDER
VALUE
Board
PromotionInvestment
OversightStrategy
Competitiveness
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 3: Strategic Report
26
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Investment objective
The investment objective of the Company
is to provide a total return for investors
primarily through investments in equities
and equity-related investments, of
companies which are based in, or which
derive a significant proportion of their
revenues from, the Asia Pacific region and
which offer attractive yields.
Investment policy
The investment policy of the Company
is to invest in a diversified portfolio of
investments, primarily equities and
equity-related investments, of companies
which are based in, or derive a significant
proportion of their revenues from, the Asia
Pacific region. The portfolio is diversified
across a number of industries and a
number of countries in that region. The
portfolio may include government, quasi-
government, corporate and high-yield
bonds and preferred shares.
Equity-related investments which the
Company may hold include investments in
other collective investment undertakings
(including real estate investment trusts
and related stapled securities), warrants,
depository receipts, participation
certificates, guaranteed performance
bonds, convertible bonds, other debt
securities, equity-linked notes and similar
instruments (whether or not investment
grade) which give the Company access
to the performance of underlying equity
securities, particularly where the Company
may be restricted from directly investing
in such underlying equity securities or
where the Investment Manager considers
that there are benefits to the Company
in holding such investments instead of
directly holding the relevant underlying
equity securities. Such investments may
be listed or traded outside the Asia Pacific
region. Such investments may subject the
Company to credit risk against the issuing
entity. The Company may also participate,
subject to regulatory and tax implications,
in debt-to-equity conversion programmes.
The Investment Manager may consider
writing calls over some of the Company’s
holdings, as a low risk way of enhancing
the returns from the portfolio. The Board
has set a limit such that covered calls
cannot be written over portfolio holdings
representing in excess of 15% of gross
assets. However, the Company may only
invest in derivatives for the purposes
of efficient portfolio management.
Investors should note that the types
of equity-related investments listed in
this paragraph are not exhaustive of all
of the types of securities and financial
instruments in which the Company may
invest, and the Company will retain the
flexibility to make any investments unless
these are prohibited by the investment
restrictions applicable to the Company.
Although the Company has the flexibility
to invest in bonds and preferred shares
as described above, the intention of
the directors is that the assets of the
Company which are invested (that is to say,
which are not held in cash, money funds,
debt securities, interest bearing gilts or
treasuries) will predominantly comprise
Asia Pacific equities and equity-related
investments. The Company is required to
obtain the prior approval of the ordinary
shareholders to any material change to its
published investment policy.
Investment restrictions and spread of investment risk
Risk in relation to the Company’s
investments is spread as a result of the
Manager monitoring the Company’s
portfolio with a view to ensuring that it
retains an appropriate balance to meet
the Company’s investment objective. In
order to comply with the Listing Rules,
the Company will not invest more than
10%, in aggregate, of the value of its
total assets (calculated at the time of any
relevant investment) in other investment
companies or investment trusts which
are listed on the Official List of the
Financial Conduct Authority (the “Official
List”) (save to the extent that those
investment companies or investment
trusts have stated investment policies to
invest no more than 15% of their gross
assets in other investment companies or
investment trusts which are listed on the
Official List). Additionally, the Company will
not:
• invest more than 15% of its gross assets
in other investment companies or
investment trusts which are listed on
the Official List;
• invest, either directly or indirectly, or
lend more than 20% (calculated at
the time of any relevant investment
or loan) of its gross assets to any
single underlying issuer (including
the underlying issuer’s subsidiaries or
affiliates);
• invest more than 20% (calculated at the
time of any relevant investment) of its
gross assets in one or more collective
investment undertakings which may
invest more than 20% of its gross
assets in other collective investment
undertakings;
• invest more than 40% (calculated at
the time of any relevant investment)
of its gross assets in another collective
investment undertaking;
• expose more than 20% of its gross
assets to the creditworthiness or
solvency of any one counterparty;
• invest in physical commodities; or
• invest in derivatives except for
the purposes of efficient portfolio
management.
In the event of any breach of the
investment restrictions applicable to the
Company, shareholders will be informed
of the actions to be taken by the Manager
by notice sent to the registered addresses
of the shareholders in accordance with
the Company’s articles of incorporation
or by an announcement issued through a
regulatory information service approved
by the Financial Conduct Authority
(“FCA”). No breaches of these investment
restrictions occurred during the year
ended 31 August 2025. The Investment
Portfolio on page 19 and the Investment
Manager’s Review on pages 10 to 16
demonstrate that, as at 31 August 2025,
the portfolio was invested in • countries
and in • different industry sectors within
such countries. There were • holdings in
the portfolio at the year end. The Board
therefore believes that the objective
of spreading investment risk has been
achieved.
Section 3: Strategic Report
27
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
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The Company carries on business as
a Guernsey incorporated, Guernsey
Financial Services Commission authorised,
closed-ended investment company. Its
shares are listed and admitted to trading
on the main market of the London Stock
Exchange. The Company was added to the
FTSE 250 index on 17 September 2019.
On 1 September 2020, following approval
by the Company’s shareholders at a
general meeting, the Company became
tax resident in the United Kingdom and
since then it has been approved by HM
Revenue & Customs, by way of a one-
off application, as an investment trust
in accordance with section 1158 of the
Corporation Tax Act 2010. It is intended
that the Company will continue to conduct
its affairs in a manner which will enable it
to retain this status. The Company is not a
“close” company for taxation purposes.
It is not intended that the Company
should have a limited life, and the articles
of incorporation do not contain any
provisions for review of the future of the
Company at specified intervals.
Status
Key performance indicators (“KPIs”)
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 a total
return for investors primarily through
investments in equities in the Asia Pacific
region, which is considered to be the most
significant key performance indicator for
the Company.
Commentary on performance against the
investment objective can be found in the
Chair’s Statement.
At each meeting, the Board considers
a number of performance indicators to
assess the Company’s success in achieving
its investment objective. These are as
follows: NAV total return; share price total
return; share price discount/premium
to NAV per share; ongoing charges and
dividends payable. A number of these are
classed as APMs and their calculations are
explained in more detail on pages 85 and
86.
The performance against these indicators
is reported in the Performance Summary
on page 5 and in the Strategic Report on
pages 26 to 30.
Net asset value 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
Manager.
Share price discount/premium to
net asset value per share
The Board reviews the level of discount/
premium to net asset value per share at
every Board meeting and is alert to the
value shareholders place on maintaining
as low a level of share price volatility as
possible.
The Board actively used its buyback
authorities during the year under review
and agreed to request renewal of the
authorities to issue and buyback shares as
described on page 82.
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 and performance fees,
directors’ fees and general expenses,
is submitted to each Board meeting.
Management and any performance fees
payable are reviewed at least annually.
Dividends payable
It is the Board’s policy that, except for
unforeseen circumstances, interim
dividends on the Company’s ordinary
shares will be declared in respect of
the quarters ended 30 November,
28 February, 31 May and 31 August in
January, April/May, July and October/
November each year.
Having already paid interim dividends
amounting to six pence per share, the
Board has declared a fourth interim
dividend of 6.20 pence per share
for the year ended 31 August 2025,
which is payable on 5 December 2025
to shareholders on the register on
21 November 2025. Thus, dividends for
the year amount to 12.20 pence (2024:
12.00 pence) per share. This represents an
increase of 1.7% over the rate of dividends
payable in respect of the previous year.
Total dividends declared in respect of the
year amount to £28,023,000, which is
103.7% of the £27,015,000 revenue profit
after taxation available for distribution.
Accordingly, the Company will carry
forward £34,511,000 in revenue reserves.
However in accordance with accounting
standards, the fourth interim dividend
amounting to £14,208,000 will not be
accounted for until it is has been paid.
Risk factors
In addition to the performance indicators
set out above, the Board also monitors risk
factors relating to investment performance
on a quarterly basis.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 3: Strategic Report
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Corporate and social responsibility
Diversity
The Board has adopted a diversity and
inclusion policy. Appointments and
succession plans will always be based on
merit and objective criteria and, within
this context, the Board seeks to promote
diversity of gender, social and ethnic
backgrounds, cognitive and personal
strengths. The Board will encourage
any recruitment agencies it engages to
find a range of candidates that meet
the objective criteria agreed for each
appointment. Candidates for Board
vacancies are selected based on their skills
and experience, which are matched against
the balance of skills and experience of
the overall Board taking into account the
criteria for the role being offered.
Statement on Board diversity –
gender and ethnic background
The Board has made a commitment to
consider diversity when reviewing the
composition of the Board and notes the
UK Listing Rule requirements 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 defines senior board positions
as Chair, Chief Executive Officer (CEO),
Chief Financial Officer (CFO) or Senior
Independent Director (SID). As an
investment trust with no executive officers,
the Company has no CEO or CFO. The
Board has reflected the senior positions
of the Chair of the Board, the Chair of the
Audit and Risk Committee and the SID in
its diversity tables.
The Board has chosen to align its
diversity reporting reference date with
the Company’s financial year end and
proposes to maintain this alignment for
future reporting periods. The following
information has been provided by each
director through the completion of a
questionnaire.
As at 31 August 2025, the Company met
all of the criteria in relation to the number
of women on the Board, for at least one
senior board position to be held by a
woman and for at least one individual on
the Board to be from a minority ethnic
background. There have been no changes
since 31 August 2025 to the date of
publication of the Annual Report and
Financial Statements.
The below tables set out the gender and
ethnic diversity composition of the Board
as at 31 August 2025 and at the date of
this report.
Gender identity
Number of
Board members
%
of the Board
Number of
senior positions
1
on the Board
Men 2 50 1
Women 2 50 2
Not specified/prefer not to say – – –
Ethnic background
Number of
Board members
%
of the Board
Number of
senior positions
1
on the Board
White British or other White (including minority-white groups) 3 75 3
Mixed/Multiple Ethnic Groups – – –
Asian/Asian British 1 25 –
Black/African/Caribbean/Black British – – –
Other ethnic group, including Arab – – –
Not specified/prefer not to say – – –
1
The Company considers the positions of Chair of the Board of directors, SID and Chair of the Audit and Risk Committee to be senior positions of the Board.
Section 3: Strategic Report
29
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
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Promotion
The Company promotes its shares to
a broad range of investors including
discretionary wealth managers, private
investors, financial advisers and
institutions, which have the potential to be
long-term supporters of the investment
strategy. The Board 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, webinars,
regional road shows and attendances at
conferences. In addition, the Company’s
shares are supported by the Manager’s
wider marketing of investment companies
targeting all types of investors. This
includes maintaining close relationships
with adviser and execution-only platforms,
advertising in the trade press, maintaining
relationships with financial journalists and
the provision of digital information on
Schroders’ website.
Shareholder relations are given high
priority by both the Board and the
Manager. The Board also seeks active
engagement with investors and
meetings with the Chair are offered
where appropriate. In addition to the
engagement and meetings held during
the year the Chairs of the Board and
Committees, as well as the other directors,
attend the AGM and are available to
respond to queries and concerns from
shareholders.
Shareholders are also encouraged to sign
up to the Manager’s Investment Trusts
update, to receive information on the
Company directly. https://www.schroders.
com/en/uk/private-investor/fundcentre/
funds-in-focus/investment-trusts/
schroders-investmenttrusts/never-miss-
an-update
Relations with shareholders
Shareholder relations are given high
priority by both the Board and the
Manager. The Company communicates
with shareholders through its web pages,
monthly factsheets and the Annual and
Half Year Reports which aim to provide
shareholders with a clear understanding
of the Company’s activities and its results.
The Board’s policy is to communicate
directly with shareholders and their
representative bodies without the
involvement of the management
group (either the Company Secretary
or the Manager) in situations where
direct communication is required.
Representatives from the Board offer
to meet with major shareholders on an
annual basis in order to ascertain their
views.
The Company Secretary acts on behalf
of the Board, not the Manager, and
there is no filtering of communication.
At each Board meeting, the Board
receives full details of any communication
from shareholders to which the Chair
responds, as appropriate, on behalf
of the Board. The Company Secretary
has no express authority to respond to
enquiries addressed to the Board and all
communication, other than junk mail, is
redirected to the Chair.
In addition, in relation to institutional
shareholders, members of the Board may
be either accompanied by the Manager or
conduct meetings in the absence of the
Manager.
In addition to the engagement and
meetings held during the year described
in “Promotion” above, the Chair of the
Board, Committee Chairs and the other
directors attend the AGM and are available
to respond to queries and concerns from
shareholders.
Financial crime policy
The Company continues to be committed
to carrying out its business fairly, honestly
and openly, and operates a financial crime
policy, covering bribery and corruption,
tax evasion, money laundering, terrorist
financing and sanctions, as well as seeking
confirmations 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 trafficking
statement under the Modern Slavery Act
2015.
Climate
Greenhouse gas emissions and energy
usage
As the Company outsources its operations
to third parties, it has no significant
greenhouse gas emissions and energy
usage to report.
Taskforce for Climate-Related
Financial Disclosures (TCFD)
Investment trusts are currently exempt
from the TCFD. The Board will continue
to monitor the situation. However, the
Company’s Manager produces an annual
product level disclosure consistent with
the TCFD which can be found here: https://
www.schroders.com/en-gb/uk/individual/
funds-and- strategies/tcfd-entity-and-
product-reports/.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 3: Strategic Report
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Stakeholder Engagement – Section 172 Report
During the year under review, 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 its stakeholders.
As an externally managed investment trust, the Company has no
employees, operations or premises and the Company’s functions
are outsourced to third parties.
The Board identified its key stakeholders as the Company’s
shareholders, the Investment Manager, other service providers,
investee companies and the Company’s lender as well as wider
society and the environment. The Board takes a long-term view
of the consequences of its decisions, and aims to maintain a
reputation for high standards of business conduct and fair
treatment among the Company’s shareholders.
The table below explains how the directors have engaged
with all stakeholders during the year, outlines the key activities
undertaken and the key decisions made by the Board.
Shareholders
Significance
Continued shareholder support
and engagement are critical to
the continuing existence of the
Company and the delivery of its
long-term strategy.
Engagement
AGM: The Company welcomes attendance and
participation from shareholders at the AGM.
Shareholders have the opportunity to meet
the directors and the Investment Manager
and ask questions. The Board values the
feedback it receives from shareholders which
is incorporated into Board discussions.
Publications: The Annual and Half Year
results presentations, as well as monthly
factsheets and the Portfolio Managers’ blog,
are available on the Company’s web pages
with their availability announced via the
London Stock Exchange. Daily NAV updates
are also 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 Company
communicates with shareholders periodically.
Investors are offered the opportunity to
meet the Chair, SID, or other Board members
without using the Manager or Company
Secretary as a conduit, by writing to the
Company’s registered office. The Board also
corresponds with shareholders by letter
and email; further details are provided in
the section “Relations with shareholders” on
page 30. The Board receives regular feedback
from the Manager and its broker on investor
engagement and sentiment.
Investor Relations updates: At every board
meeting, the directors receive updates on
share trading activity, share price performance
and any shareholders’ feedback, as well as any
publications or comments in the press.
2024/25 application
At the AGM in 2024 questions and feedback
from shareholders were welcomed. The Board
along with the Portfolio Manager look forward to
meeting and interacting with shareholders at the
AGM in December 2025.
The Company’s web pages host the Annual and
Half Year Reports. Via the Company’s web pages
shareholders can subscribe to the Schroders
investment trusts newsletter to receive regular
updates on the Company.
The Manager and Portfolio Managers engaged
with a number of the shareholders and investors
during the year and regular feedback was
provided to the Board.
A number of promotional activities were
undertaken during the year including Portfolio
Manager interviews, podcasts, 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 following
the publication of the Company’s annual results.
The Company’s corporate broker, Deutsche
Numis continues to provide a market in the
Company’s shares and provides feedback from
investors to the Board.
Section 3: Strategic Report
31
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Investment Manager
Significance
Engagement with the
Company’s Investment
Manager is necessary to
evaluate its performance
against the Company’s stated
strategy and to understand any
risks or opportunities this may
present.
The Investment Manager’s
performance is critical for
the Company to deliver
its investment strategy
successfully and meet its
objective to achieve long-term
capital growth by investing in
Asian companies.
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 Investment Manager
attends 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.
Important components in the Board’s
engagement with the Investment Manager
are:
• Encouraging open discussion with the
Investment Manager
• Support and constructive challenge of the
Investment Manager including the robust
negotiation of the Investment Manager’s
terms of engagement; and
• Drawing on directors’ individual experience
to support the Investment Manager by
holding it to account regarding investment
strategy, and challenging where necessary.
The Management Engagement Committee
reviews the performance of the Manager,
its remuneration and the discharge of its
contractual obligations at least annually.
2024/25 application
Representatives of the Manager, Investment
Manager, including the Portfolio Manager, attend
each Board meeting to provide an update on the
investment portfolio along with presenting on
macroeconomic issues.
The portfolio activities undertaken by the
Investment Manager and the impact of decisions
affecting investment performance are set out in
the Portfolio Manager’s Review on pages 10 to 16.
The Board visited Singapore, Malaysia, and
Indonesia to meet the Investment Manager’s
team, review their regional expertise, investment
approach, and ESG integration, and assess
operational capabilities and engagement
practices.
The Board regularly reviews the fees payable by
the Company to ensure they remain competitive.
It is conscious of the trend towards removal of
performance fees across the Investment Trust
sector and, as such, has been in discussion
with the Manager over time regarding the
performance fee component in the Company’s
fee structure. Consequently, on 6 November
2025, the Board and Manager agreed as follows:
• the performance fee will be terminated as of
31 August 2026;
• the cap on the total amount of any
performance fee payable this year will be
reduced to 0.55% of the net asset value
payable, calculated at the end of the relevant
accounting period;
• a new marketing fee of £200,000 payable to
the Manager will be introduced from the end of
this current financial year; and
• the notice period in the AIFM agreement will be
reduced from 12 to 6 months.
This will result in a simpler, more transparent fee
structure and significant savings for shareholders
based on the historic pattern of performance fees
earned by the Manager.
Other service providers
Significance
In order to operate as an
investment trust with a
premium listing on the London
Stock Exchange, the Company
relies on a diverse range of
advisers and service providers.
The Company ensures that
the third parties to which the
services have been outsourced
complete their roles in line with
contractual arrangements and
expectation thereby supporting
the Company.
Engagement
The Board maintains regular contact with its key
external providers, both through the Board and
Committee meetings, which service providers
are periodically invited to attend, as well as
outside of the regular meeting cycle. Their
advice, as well as their 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.
2024/25 application
The Board engages regularly with service
providers both in one-to-one meetings and via
regular written reporting.
Under delegated authority from the Board, the
Management Engagement Committee reviewed
all material third-party service providers. The
Board considered the ongoing appointments of
its service providers to be in the best interests of
the Company and its shareholders as a whole and
will continue to monitor their progress in the year
ahead.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 3: Strategic Report
32
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Investee companies
Significance
The Board is committed to
responsible investing and
actively monitors the activities
of investee companies through
its delegation to the Investment
Manager.
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.
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.
During the year, the Board visited Singapore,
Malaysia, and Indonesia, visiting several
portfolio companies alongside the Investment
Manager’s team. This enabled the Board to
gain direct insight into the operations, strategy,
and ESG practices of key investee companies,
and to observe how local economic and policy
developments are impacting portfolio holdings.
Lender
Significance
Ability to add leverage allows
the Company to maximise
return opportunities within
set risk parameters and take
advantage of the Investment
trust structure.
Engagement
The Manager manages the relationship with
the Company’s lender and reports to the
Board at each meeting on compliance with the
loan covenants and also as and when required
for renewals of terms or negotiation of loan
covenants.
The Manager provides a monthly statement
of compliance with the loan covenants to the
lender.
2024/25 application
During the year, gearing was regularly considered
and the facility with The Bank of Nova Scotia,
London Branch was amended and restated, on
expiration, in July 2025.
Wider society and the environment
Significance
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.
Engagement
The Board engages with the Investment
Manager regularly at Board meeting in respect
of its ESG considerations on existing and new
investments.
2024/25 application
Further details of the ESG practices and the ESG
policy can be found in the Investment Approach
and Process section of this Annual Report.
The Board receives regular reports from its
Manager and briefings from its corporate
broker, auditors and the industry trade body (the
Association of Investment Companies (“AIC”)) on
changes to regulations which could impact the
Company and its industry. Directors also attend
AIC events to keep up to date with industry trends
and investor sentiment.
Section 3: Strategic Report
33
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
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Examples of stakeholder consideration during the year
The directors were particularly mindful of stakeholder considerations in reaching the following key decisions during the year ended
31 August 2025:
• Resolving that the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best
interests of shareholders as a whole. The Board draws shareholders’ attention to the changes to the fee structure agreed after the
year end detailed on page 32 under Investment Manager.
• Continuing the Company’s commitment to buying back shares in order to help manage the share price discount to NAV, 12,641,616
shares were repurchased and placed in treasury during the year under review. This accounted for 5.2% of the issued share capital
and resulted in a modest uplift to NAV. Over the period, the discount narrowed from 7.1% to 5.0%.
• Appointing J.P. Morgan Europe Limited as the Company’s provider of depositary and custodian service, after considering how the
potential benefits would best serve the Company’s interests. The transition was approved to take place following the financial year-
end, with the migration of depositary and custodian services commencing on 3 October 2025. Effective from 21 October 2025,
J.P. Morgan Administration Services (Guernsey) was appointed as the designated administrator.
• Amending and restating £75 million revolving credit facility agreement with The Bank of Nova Scotia, London Branch.
• Together with the Portfolio Managers, the Board undertook its biennial visit to the region and visited Singapore, Indonesia and
Malaysia to undertake due diligence meetings with key personnel from the Investment Manager, strategists and investee companies.
• Following the year end, the Board declared a fourth interim of 6.20p per ordinary share which will be paid on 5 December 2025.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 3: Strategic Report
34
Principal and Emerging Risks and Uncertainties
This system assists the Board in
determining the nature and extent of the
risks it is willing to take in achieving the
Company’s strategic objectives.
Risk assessment and internal
controls review by the Board
Risk assessment includes consideration
of the scope and quality of the systems
of internal control operating within
key service providers, and ensures
regular communication of the results
of monitoring by such providers to the
Audit and Risk Committee, including the
incidence of significant control failings
or weaknesses that have been identified
at any time and the extent to which they
have resulted in unforeseen outcomes or
contingencies that may have a material
impact on the Company’s performance or
condition.
Although the Board believes that it has a
robust framework of internal controls in
place, this can provide only reasonable,
and not absolute, assurance against
material financial misstatement or loss and
is designed to manage, not eliminate, risk.
During the year, the Board discussed
and monitored a number of risks which
could potentially impact the Company’s
ability to meet its strategic objectives.
The Board receives updates from the
Investment Manager, Company Secretary
and other service providers on emerging
risks that could affect the Company. The
Board was mindful of the evolving global
environment during the year and the risks
posed by volatile markets and geopolitical
uncertainty. However, these are not factors
which explicitly impact the Company’s
performance although they could
exacerbate existing risks. Where relevant
these have been incorporated in the
table below. Both the principal risks and
uncertainties and the monitoring system
are also subject to robust review at least
annually. The last assessment took place in
November 2025.
No significant control failings or
weaknesses were identified from the
Audit and Risk Committee’s ongoing risk
assessment throughout the financial year
and up to the date of this report. The
Board is satisfied that it has undertaken
a detailed review of the risks facing the
Company and that the internal control
environment continues to operate
effectively. A full analysis of the financial
risks facing the Company is set out in
note 20 to the financial statements on
pages 75 to 79.
The Board considers that the risks set out
in the table below are the principal risks
currently facing the Company to deliver its
strategy together with those actions taken
by the Board and, where appropriate,
its Committees, to manage and mitigate
those risks.
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 in the change
column show the risks as increased or
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 all material risks affecting the Company’s business
as an investment trust and has established associated policies and processes designed to
manage and, where possible, mitigate those risks, which are monitored by the Audit and Risk
Committee on an ongoing basis.
Risk Mitigation and management Change
Strategy and competitiveness
Investment strategy
The Company’s investment objectives may become
out of line with the requirements of investors,
resulting in a wide discount of the share price to
underlying NAV per share.
The Board periodically reviews the appropriateness
of the Company’s investment mandate and long-term
strategy, monitoring progress towards the Company’s
stated objectives. Share price performance relative to
NAV per share is tracked as a key performance indicator
and regularly compared to peers. The Board also reviews
the parameters and use of buyback authorities on an
ongoing basis, and considers market feedback from the
Manager and corporate broker at each quarterly meeting.
Shareholder engagement is proactively conducted through
the AGM, feedback from presentations, and ad hoc
meetings with the Board.
Section 3: Strategic Report
35
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Risk Mitigation and management Change
Investment performance
If the Company underperforms or faces other
challenges, it could become less attractive to
investors.
The Board continually reviews the Investment Manager’s
performance, as well as the Company’s net asset value
(NAV) and share price, comparing results to those of similar
companies and monitoring any discount or premium. The
Manager and corporate broker keep a close watch on the
discount and premium, helping to ensure the Company
remains attractive to investors. The Investment Manager
provides the Board with timely and accurate information,
such as performance data, revenue estimates, liquidity
reports, and shareholder analyses, and explains their
portfolio decisions and risk assessments at every board
meeting. Gearing is managed carefully within a range
set by the Board. The Board is responsible for setting the
overall investment strategy, approving key agreements,
and establishing guidelines for the use of derivatives,
gearing, and leverage, adjusting these as necessary. At
every meeting, the Board monitors performance, risk, and
portfolio activity against agreed objectives and strategy,
and reviews the continued suitability of the Manager each
year. Risk and internal audit teams from the Manager also
provide an annual update to the Board.
Share price performance
The Company’s shares continuously trade at a wider
than average discount to the peer group and/or there
is considerable discount volatility.
The discount or premium of the Company’s share price
relative to NAV is monitored daily and compared to peers
by both the corporate broker and the Manager. The Board
makes use of a discount control mechanism through an
active share buyback policy and receives regular updates
from the corporate broker on these activities.
Geopolitical
Geopolitical factors and sanctions can influence
the Company’s investment strategy, objectives, and
performance, particularly given the unique risks
present in the region. Investing in China, for example,
involves navigating regulatory uncertainties and
different business practices. Ongoing US-China
tensions around tariffs, trade disputes, technology
competition, and human rights concerns can give
rise to issues such as intellectual property theft and
cybersecurity threats. Additionally, escalating tensions
between China and Taiwan may result in increased
military activity and diplomatic challenges, alongside
other territorial disputes within the region.
Geopolitical risk has risen this year compared to last
year due to a combination of increased global tensions,
more frequent disruptions to international trade, and a
greater incidence of policy intervention by governments.
In particular, renewed disputes in key regions, heightened
regulatory scrutiny, and less predictable diplomatic
relations have contributed to greater uncertainty for
investors. As a result, the general environment is more
complex and volatile than in the previous year.
The Manager maintains regular communication with
local analysts, investee companies, and the wider market
to assess the potential impact of these risks. The Board
receives frequent updates on current issues from the
Manager for discussion and regularly considers these risks,
taking into account presentations from the Manager as well
as information from external sources.
Market and currency
Because of the way the Company invests, it is
naturally affected by market ups and downs, so a
significant drop in regional stock markets could
negatively impact the value of its investments. In
addition, since the Company mainly invests in assets
held in various currencies, movements in exchange
rates – particularly between sterling and other
currencies – can have a considerable effect on overall
returns and the value of dividend income received
from those investments.
Many of the companies in the portfolio have strong balance
sheets and sustainable business models. Gearing is kept
at relatively low levels, helping to manage risk. The Board
regularly reviews the portfolio’s risk profile and discusses
strategies with the Manager to help minimise the impact of
significant market or currency changes. While the Company
does not have a formal policy for hedging currency risk,
foreign currency borrowings or forward contracts may
be used when appropriate to limit exposure. The Board
also closely monitors inflation, as it can affect both market
conditions and exchange rate volatility.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 3: Strategic Report
36
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Risk Mitigation and management Change
Cyber and AI
The growing use of Artificial Intelligence (AI) and
digital investment platforms may present challenges
to the ongoing relevance of investment trusts, as
well as the risk of certain roles being replaced by
AI technologies. In addition, the Company’s service
providers face the risk of cyber attacks, which
could result in the loss of personal or confidential
information, unauthorised transactions, or disruptions
to essential operations.
AI and cyber risks have increased this year compared to
last year, reflecting the rapid advancement and broader
adoption of artificial intelligence technologies. While
these developments offer significant opportunities, they
also introduce new vulnerabilities. There has also been a
marked rise in both the frequency and sophistication of
cyber-attacks on organisations globally, including several
highly publicised cases. These trends, together with
evolving regulatory requirements and heightened data
protection standards, mean that AI and cyber risks are now
more pronounced and require strengthened management
and oversight.
The Company works with outsourced service providers who
report at least annually on how they manage and reduce
cyber risk, including their plans to maintain operations in
the event of a cyber attack. A custodian or depositary is
also appointed to safeguard the Company’s assets. Each
year, the Board receives presentations from the Manager,
Registrar, and Depositary that cover key risks, including
cyber security and business continuity.
Climate Change
The Company’s investments and the returns to
shareholders could be impacted by climate change.
There is growing interest from both investors and
regulators in understanding how the Company’s
investments and performance might be affected by
climate change, as well as wider environmental, social,
and governance (ESG) considerations.
The Manager has fully integrated environmental, social,
and governance (ESG) considerations – including climate
change – into the investment process and provides
regular updates on ESG engagement at board meetings. A
comprehensive ESG policy is in place, details of which can
be found in the annual report. The Investment Manager
carefully assesses how portfolio companies address and
manage climate change risks, and the Board reviews
the portfolio at every meeting, receiving updates on any
significant ESG or climate-related issues and the Manager’s
engagement with investee companies.
Emerging
Inadequate procedures for identifying emerging risks
could result in the Company responding reactively
rather than proactively, potentially affecting its long-
term sustainability and performance.
During the financial year ended 31 August 2025, the Board
conducted regular and systematic reviews of the Company’s
risk profile, with particular attention to emerging risks.
These reviews incorporated guidance from the AIC, input
from the Company’s advisers, directors’ market expertise,
and ongoing monitoring of industry and regulatory
developments. For the year under review, no new emerging
risks were identified.
Section 3: Strategic Report
37
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
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Risk assessment and internal
controls review by the Board
Risk assessment includes consideration
of the scope and quality of the systems
of internal control operating within
key service providers, and ensures
regular communication of the results
of monitoring by such providers to the
Audit and Risk Committee, including the
incidence of significant control failings
or weaknesses that have been identified
at any time and the extent to which they
have resulted in unforeseen outcomes or
contingencies that may have a material
impact on the Company’s performance or
condition.
No significant control failings or
weaknesses were identified from the
Audit and Risk Committee’s ongoing risk
assessment which has been in place
throughout the financial year and up
to the date of this report. The Board is
satisfied that it has undertaken a detailed
review of the risks facing the Company
and that the internal control environment
continues to operate effectively.
A full analysis of the financial risks facing
the Company is set out in note 20 to the
accounts on pages 75 to 79.
Viability statement
The directors have assessed the viability
of the Company over a five year period,
taking into account the Company’s
position at 31 August 2025 and
6 November 2025 and the potential impact
of the principal risks and uncertainties it
faces for the review period. The directors
have assessed the Company’s operational
resilience and they are satisfied that the
Company’s outsourced service providers
will continue to operate effectively,
following the implementation of their
business continuity plans.
A period of five years has been chosen
as the Board believes that this reflects
a suitable time horizon for strategic
planning, taking into account the
investment policy, liquidity of investments,
potential impact of economic cycles,
nature of operating costs, dividends and
availability of funding. This time period
also reflects the average holding period of
an investment.
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 35 to 37
and in particular the impact of a significant
fall in regional equity markets on the value
of the Company’s investment portfolio.
The directors have also considered the
Company’s income and expenditure
projections and the fact that the
Company’s investments comprise readily
realisable securities which can be sold to
meet funding requirements if necessary.
The directors have also considered a
stress test which represents a severe but
plausible scenario along with movement
in foreign exchange rates. This scenario
assumes a severe stock market collapse
and/or exchange rate movements at the
beginning of the five year period, resulting
in a 50% fall in the value of the Company’s
investments and investment income and
no subsequent recovery in either prices
or income in the following five years. It is
assumed that the Company continues to
pay an annual dividend in line with current
levels and that the borrowing facility
remains available and remains drawn,
subject to the gearing limit.
The Company’s investments comprise
highly liquid, large, listed companies
and so its assets are readily realisable
securities and could be sold to meet
funding requirements or the repayment of
the gearing facility should the need arise.
There is no expectation that the nature of
the investments held within the portfolio
will be materially different in the future.
The operating costs of the Company are
predictable and modest in comparison
with the assets and there are no capital
commitments foreseen which would alter
that position. Furthermore, the Company
has no employees and consequently has
no redundancy or other employment
related liabilities.
The Board reviews the performance of
the Company’s service providers regularly,
including the Manager, along with internal
controls reports to provide assurance
regarding the effective operation of
internal controls as reported on by
their reporting accountants. The Board
also considers the business continuity
arrangements of the Company’s key
service providers.
The Board monitors the portfolio risk
profile, limits imposed on gearing,
counterparty exposure, liquidity risk and
financial controls at its quarterly meetings.
Although there continue to be regulatory
changes which could increase costs or
impact revenue, the directors do not
believe that this could be sufficient to
affect its viability. The Board also notes
that certain geopolitical risks, if they
materialise, would have a serious effect
on the viability of the Company, but that it
was not appropriate to conclude that the
Company was not viable on the basis of
these.
The Board has assumed that the business
model of a closed ended investment
company, as well as the Company’s
investment objective, will continue to
be attractive to investors. The directors
also considered the beneficial tax
treatment the Company is eligible for as
an investment trust. If changes to these
taxation arrangements were to be made it
would affect the viability of the Company
to act as an effective investment vehicle.
Based on the above the directors have
concluded that there is a reasonable
expectation that the Company will be able
to continue in operation and meet its
liabilities as they fall due over the five year
period of their assessment.
Going concern
The directors have assessed the principal
risks, the impact of the emerging risks
and uncertainties and the matters
referred to in the viability statement.
The directors have not identified any
material uncertainties relating to
events or conditions that, individually or
collectively, may cast significant doubt
on the Company’s ability to continue as
a going concern for the period assessed
by the directors, being the period to
30 November 2026 which is at least
12 months from the date the financial
statements were authorised for issue.
By order of the Board
Schroder Investment Management
Limited
Company Secretary
6 November 2025
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 3: Strategic Report
38
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Section 4: Governance
Board of Directors 40
Directors’ Report 42
Audit and Risk Committee Report 46
Management Engagement Committee Report 49
Nomination and Remuneration Committee Report 51
Directors’ Remuneration Report 53
Statement of Directors’ Responsibilities in Respect of the Annual Report and Financial Statements 56
39
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 4: Governance
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Independent non-executive
director
Independent non-executive
Chair
Isabel LiuNick Winsor
Board of Directors
Length of service: four years – appointed in
November 2021.
Experience: Isabel has 25 years’ global
experience investing equity in infrastructure.
She started her investment career in Asia
with the US$1 billion AIG Asian Infrastructure
Fund. She was Managing Director of the Asia
Pacific investment business of John Laing plc.
After relocating from Hong Kong to London,
she was Investment Director for the €1 billion
ABN AMRO Global Infrastructure Fund. Isabel
served on the boards of bodies representing
user and pension scheme investors in UK
infrastructure. Isabel is a non-executive
director of Utilico Emerging Markets Trust plc
and Gresham House Energy Storage Fund
Plc. Isabel holds a BA in Economics from the
Ohio State University, a Masters in Public
Policy from Harvard Kennedy School, and an
MBA from the University of Chicago Booth
School of Business.
Contribution to the Board and its
Committees: With her extensive experience
of living and investing in the Asia Pacific
region, and her work as Chair of the
Nomination and Remuneration Committee,
Isabel contributes effectively to Board
considerations of sustainability, governance
and strategy.
Committee membership: Audit and Risk,
Management Engagement and Nomination
and Remuneration Committees (Chair).
Remuneration as at the year end: £40,000
per annum.
Number of shares held: 18,634*
Length of service: five years – appointed in
March 2020.
Experience: Nick is an independent
consultant and non-executive director. He has
more than 35 years of retail and commercial
banking experience with HSBC Group in a
number of international markets. He was
CEO of HSBC’s businesses in the Channel
Islands and Isle of Man, CEO and VP of HSBC
Bank (Taiwan) Limited and a director of HSBC
Bank Middle East Limited. Before this, he was
Head of Personal Financial Services for the
Asia Pacific Region. Nick is a non-executive
director of Metro Bank plc and Metro Bank
Holdings plc and a member of the latter’s
Risk Oversight and Audit Committees. He
is also the senior independent director of
the States of Jersey Development Company,
Chair of the Remuneration and Nomination
Committee and member of the Audit and Risk
Committee. Nick is a non-executive director
of Bankers without Boundaries, a not for
profit investment bank, and iC2 Prephouse
Limited, a charity that supports visually
impaired children. He was awarded an MBE
in the Queen’s 2020 Birthday Honours list
for services to the community. Nick holds a
Masters in Physics from Oxford University
and is a Fellow of the Institute of Directors.
Contribution to the Board and its
Committees: Nick brings broad international
experience in retail and commercial banking,
with expertise in executive leadership, risk
management, and board governance.
Committee membership: Audit and Risk,
Management Engagement, and Nomination
and Remuneration committees.
Remuneration as at the year end: £50,000
per annum.
Number of shares held: 40,000*
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 Committee.
*Shareholdings are as at 6 November 2025, full details of directors’ shareholdings are set out in the Directors’ Remuneration Report on page 53.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 4: Governance
40
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Senior Independent
director
Independent non-executive
director
Alexa Coates Sam Davis
Length of service: seven years – appointed a
director in February 2018.
Experience: Alexa Coates is a chartered
accountant who brings over 30 years of
significant financial expertise to the Board.
Alexa was a senior executive of HSBC for nine
years, where she served as the global CFO for
the group’s asset management business and
then led the finance function for commercial
banking operations in Europe. Prior to
joining HSBC, Alexa worked in senior roles in
retail, healthcare and professional services
including at J Sainsbury plc and BUPA. She
started her career at EY, where she worked in
the UK and France.
Alexa is a non-executive director and audit
committee chair of Marsh Limited, the
insurance broker, Aviva Investors and its UK
fund services company as well as a non-
executive director and chair of the audit and
risk committee of Polar Capital Holdings plc,
a publicly quoted company.
Contribution to the Board and its
Committees: Alexa brings extensive financial
expertise and wide-ranging experience across
asset management, financial services, retail,
healthcare, and professional services.
Committee membership: Audit and Risk
(Chair), Management Engagement, and
Nomination and Remuneration Committees.
Remuneration as at the year end: £45,000
per annum.
Number of shares held: 10,000*
Length of service: one year – appointed in
July 2024.
Experience: Sam is a non-executive director
of Allianz Technology Trust plc and The Baillie
Gifford Japan Trust plc, and is Chair of the
Management Engagement Committee of the
latter. Sam was previously CEO of Putnam
Investments Limited and Co-Head of Equities
at Putnam Investments, where he oversaw
a global investment team. He has more
than 20 years of experience in investment
markets, having worked in different roles as
Portfolio Manager, Director of Research, and
Co-Head of Equities and has managed Asian,
European, and broad international equity
portfolios.
Contribution to the Board and its
Committees: Sam brings significant
experience in asset management, with
particular expertise in global equities,
portfolio management, and investment
strategy.
Committee membership: Audit and Risk,
Management Engagement (Chair) and
Nomination and Remuneration Committees.
Remuneration as at the year end: £40,000
per annum.
Number of shares held: 7,326*
*Shareholdings are as at 6 November 2025, full details of directors’ shareholdings are set out in the Directors’ Remuneration Report on page 53.
Section 4: Governance
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Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
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Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Directors’ Report
The directors submit their report and the audited financial statements of the Company for the
year ended 31 August 2025.
Directors and officers
Chair
The Chair is an independent non-executive director who
is responsible for leadership of the Board and ensuring its
effectiveness in all aspects of its role. The Chair’s significant
commitments are detailed on page 40. He has no conflicting
relationships.
Senior Independent Director (SID)
The SID acts as a sounding board for the Chair, meets with
major shareholders as appropriate, provides a channel for any
shareholder concerns regarding the Chair and takes the lead in
the annual evaluation of the Chair by the independent directors.
Company Secretary
Schroder Investment Management Limited (“SIM”) provides
company secretarial support to the Board with responsibility
for assisting the Chair with Board meetings and advising the
Board with respect to governance. The Company Secretary also
manages the relationship with the Company’s service providers,
except for the Manager. Shareholders wishing to lodge questions
in advance of the AGM are invited to do so by writing to the
Company Secretary at the address given on the back cover or by
email to: amcompanysecretary@schroders.com.
Role and operation of the Board
The Board of directors, listed on pages 40 and 41 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 10 to 16 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 specifically reserved for decision
by the Board has been defined and a procedure adopted for
directors, in the furtherance of their duties, to take independent
professional advice at the expense of the Company.
The Chair ensures that all directors receive relevant management,
regulatory and financial information in a timely manner and that
they are provided, on a regular basis, with key information on the
Company’s policies, regulatory requirements and internal controls.
Five board meetings are usually scheduled each year and the
Board 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.
The Board is satisfied that it is of sufficient 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 effectively and that no individual or group of
individuals dominates decision making.
Board of directors (left to right): Isabel Liu, Nick Winsor, Alexa Coates and Sam Davis.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 4: Governance
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Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
The Board has approved a policy on directors’ conflicts of interest.
Under this policy, directors are required to disclose all actual
and potential conflicts of interest to the Board as they arise for
consideration and approval. The Board may impose restrictions
or refuse to authorise such conflicts if deemed appropriate.
No directors have any connections with the Manager, shared
directorships with other directors or material interests in any
contract which is significant to the Company’s business.
Committees
In order to assist the Board in fulfilling its governance
responsibilities, it has delegated certain functions to Committees.
The roles and responsibilities of these Committees, together with
details of work undertaken during the year under review, are
outlined over the next few pages.
The reports of the Audit and Risk Committee, Nomination and
Remuneration Committee and Management Engagement
Committee are incorporated, and form part of, the Directors’
Report. Each Committee’s effectiveness was assessed, and judged
to be satisfactory, as part of the Board’s annual review of the Board
and its Committees.
Key service providers
The Board has adopted an outsourced business model and has
appointed the following key service providers:
Manager
The Company is an alternative investment fund as defined by the
AIFM Directive and has appointed Schroder Unit Trusts Limited
(“SUTL”) as the Manager in accordance with the terms of an
alternative investment fund manager (“AIFM”) agreement. The
AIFM agreement, which is governed by the laws of England and
Wales, can be terminated by either party on 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.
SUTL is authorised and regulated by the FCA and provides
portfolio management, risk management, accounting and
company secretarial services to the Company under the
AIFM agreement. The Manager has delegated investment
management, marketing, administrative, accounting and
company secretarial services to another wholly owned subsidiary
of Schroders plc, Schroder Investment Management Limited.
The Manager has in place appropriate professional indemnity
cover. Part of the fund accounting and administration activities
was performed by HSBC Securities Services (UK) Limited as a
sub-delegate to Schroder Investment Management Limited up
until 3 October 2025. With effect from 3 October 2025 J.P. Morgan
Administration Services (Guernsey) has performed this function.
The Schroders Group manages £776.6 billion (as at 30 June 2025)
on behalf of institutional and retail investors, financial institutions
and high net-worth clients from around the world, invested in
a broad range of asset classes across equities, fixed income,
multiasset and alternatives.
Fees payable to the Manager
The Manager is entitled to receive a management fee of an
amount equivalent to 0.75% per annum of the net assets of
the Company, reducing to 0.70% per annum on net assets
above £250 million and 0.65% per annum on net assets above
£750 million. The fee is payable quarterly in arrears and calculated
as at the last business day in February, May, August and
November in each year.
The Manager is also entitled to receive a performance fee based
on the performance of the Company’s NAV per ordinary share.
The performance fee is 10% of the amount in pounds sterling of
any gains, being the amount by which the closing adjusted NAV
per ordinary share (adjusted as described below) at the end of the
relevant calculation period exceeds the highest of:
(i) A hurdle, being 108% of the NAV per ordinary share, taken
from the audited balance sheet at the end of the previous
calculation period;
(ii) The highest closing NAV per ordinary share (unadjusted) as per
the audited accounts for any previous financial year in which a
performance fee has been paid; and
(iii) 100p.
Closing Adjusted NAV per ordinary share is the NAV per share
on the last day of the financial year in respect of which the
performance fee is being calculated, adjusted to add back any
performance fee accrued during the year but not crystallised; to
adjust for the deemed reinvestment of any dividends paid by the
Company during the period; and to remove the impact on NAV
per share due to any share buy-backs and issues.
The total amount of any performance fee payable in respect of any
one accounting period has been capped at 0.65% of the net asset
value, calculated at the end of the relevant accounting period.
Any investment management fees payable to the Manager or to
other subsidiaries of Schroders plc in respect of investments by
the Company in collective investment schemes and investment
companies managed or advised by the Schroders Group are
deducted from the fee payable to the Manager under the AIFM
agreement. There were no such investments during the year
ended 31 August 2025.
The management and performance fees payable in respect
of the year ended 31 August 2025 amounted to £4,875,000
(2024: £4,763,000), and £4,759,000 (2024: £4,552,000)
respectively. The Manager is also entitled to a fee for providing
administrative, accounting and company secretarial services
to the Company. For these services, it receives an annual fee,
payable quarterly in arrears, of £150,000.
Details of all amounts payable to the Manager are set out in note
4 on page 69.
As detailed in the Section 172 Report on page 32, following
discussions regarding the fee structure, on 6 November 2025 the
Board and Manager agreed as follows:
• the performance fee will be terminated as of 31 August 2026;
• the cap on the total amount of any performance fee payable
this year will be reduced to 0.55% of the net asset value
payable, calculated at the end of the relevant accounting
period;
• a new marketing fee of £200,000 payable to the Manager will
be introduced from the end of this current financial year; and
• the notice period in the AIFM agreement will be reduced from
12 to 6 months
This will result in a simpler, more transparent fee structure and
significant savings for shareholders based on the historic pattern
of performance fees earned by the Manager.
The Board has reviewed the performance of the Manager, and
fees paid to it, during the year under review and continues to
consider that it has the appropriate depth and quality of resource
to achieve above-average returns in the longer term. Thus, the
Section 4: Governance
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Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
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Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Board considers that the Manager’s appointment under the terms
of the AIFM agreement, is in the best interests of shareholders as
a whole, subject to the changes detailed above.
Depositary
For the financial year under review and up until 3 October 2025
HSBC acted as both depositary and designated administrator
to the Company. With effect from 3 October 2025, J.P. Morgan
Europe Limited were appointed to provide depositary and
custodian services to the Company. J.P. Morgan Europe Limited
which is authorised by the Prudential Regulation Authority (PRA)
and regulated by the FCA and the PRA, carries out certain duties
of a depositary specified in the AIFM Directive including, in
relation to the Company, as follows:
• safekeeping of the assets of the Company which are entrusted
to it;
• cash monitoring and verifying the Company’s cash flows; and
• oversight of the Company and the Manager.
The Company, the Manager and the depositary may terminate
the Depositary Agreement at any time by giving 90 days’ notice in
writing. The depositary may only be removed from office when a
new depositary is appointed by the Company.
Designated administrator
With effect from 21 October 2025, J.P. Morgan Administration
Services (Guernsey) was appointed as designated administrator.
Registrar
Computershare Investor Services (Guernsey) Limited
(“Computershare”) has been appointed as the Company’s
registrar. Computershare’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.
Corporate governance statement
The Board of the Company has chosen to adopt the principles
and provisions of the AIC Code of Corporate Governance (the “AIC
Code”). The Code addresses the Principles and Provisions set out
in the UK Corporate Governance Code (the “UK Code”), as well
as setting out additional Provisions on issues that are of specific
relevance to the Company as an investment company.
The Board confirms that the Company has complied throughout
the year under review with the relevant provisions of the UK Code
and the principles and provisions of the AIC Code except as set
out below.
Certain provisions of the UK Code are not applicable to the
Company given its nature as an externally managed investment
company with no executive directors or employees. These
provisions are as follows:
• The role of the chief executive;
• Executive directors’ remuneration;
• The need for an internal audit function;
• The Chair of the Board not being a member of the Audit and
Risk Committee; and
• The requirement to establish a Remuneration Committee.
Where the UK Code contains provisions that do not apply to
externally managed investment companies, the Board considers it
appropriate to follow the AIC Code, which is specifically designed
for investment companies and endorsed by the Financial
Reporting Council.
The Board considers that reporting against the Principles and
Provisions of the AIC Code, which has been endorsed by the
Financial Reporting Council and the Guernsey Financial Services
Commission, provides more relevant information to shareholders.
The Financial Conduct Authority requires all UK listed companies
to disclose whether they have complied with the provisions of the
Code or explain any departures. This statement, together with the
Statement of Directors’ Responsibilities, viability statement and
going concern statement set out on pages 56 and 38 respectively
indicates how the Company has complied with the principles of
good governance of the Code and its requirements on internal
control. The Strategic Report and Directors’ Report provide further
details on the Company’s risk management, governance and
diversity policies.
The Company complied with the Principles and Provisions of the
AIC Code during the year under review and to date.
The AIC Code is available on the AIC website (www.theaic.co.uk). It
includes an explanation of how the AIC Code adapts the Principles
and Provisions set out in the UK Code to make them relevant for
investment companies.
The Guernsey Financial Services Commission’s Finance Sector
Code of Corporate Governance (the “GFSC Code”) provides a
framework which applies to all companies in the regulated finance
sector in Guernsey. The Company reports against the AIC Code,
which meets the requirements of the GFSC Code.
Share capital and substantial share interests
During the year under review, the Company repurchased a total of
12,641,616 shares which were placed in treasury. As at 31 August
2025, the Company had 271,233,024 ordinary shares in issue of
which 42,076,616 were held in treasury.
As at 6 November 2025, the Company had 271,233,024 ordinary
shares of 1p in issue. 43,865,366 shares were held in treasury.
Accordingly, the total number of voting rights in the Company
as at 6 November 2025 were 227,367,658. Details of changes to
the Company’s share capital during the year are given in note 13
to the financial statements on page 73. All shares in issue rank
equally with respect to voting, dividends and any distribution on
winding up.
The Board noted that the Company’s shareholders appreciated
the Board’s discount management. The Board agreed to request
renewal of the authorities to issue and buy back shares as
described on page 82.
The Company has received notifications 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 notifications. As such, this should not be relied on as an
exhaustive list of shareholders holding above 3% or more of the
Company’s voting rights.
As at 31 August 2025
Number
of shares
% of
total
voting
rights
Rathbones Investment Management Ltd 3 0 , 2 4 5 , 3 4 0 12.99
Evelyn Partners Limited 23,649,907 10.04
JM Finn 11,715,754 5.00
Raymond James Wealth Management Ltd 11,454,808 4.99
There have been no changes notified since the year end.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 4: Governance
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Provision of information to the auditors
The directors, at the date of approval of this report, confirm
that, so far as each of them is aware, there is no relevant audit
information of which the Company’s auditors are 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 auditors are aware of that information.
Directors’ attendance at meetings
Five 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 premium or discount
of the Company’s shares to NAV per share and promotion of
the Company, and services provided by third parties. Additional
meetings of the Board are arranged as required.
The number of scheduled meetings of the Board and its
Committees held during the financial year, and the attendance
of individual directors, is shown in the following table. Wherever
possible all directors attend the AGM.
Director Board
Audit
and Risk
Committee
Nomination
and
Remuneration
Committee
Management
Engagement
Committee
Alexa Coates 5/5 3/3 1/1 1/1
Sam Davis 5/5 3/3 1/1 1/1
Isabel Liu 5/5 3/3 1/1 1/1
Nick Winsor 5/5 3/3 1/1 1/1
Directors’ and officers’ liability insurance and
indemnities
Directors’ and officers’ liability insurance cover was in place for
the directors throughout the year. The Company’s Articles of
Association provide, subject to the provisions of UK legislation,
an indemnity for directors in respect of costs which they may
incur relating to the defence of any proceedings brought against
them arising out of their positions as directors, in which they are
acquitted or judgment is given in their favour by the court. This
is a qualifying 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
Nick Winsor
Chair
6 November 2025
Section 4: Governance
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All directors are members of the Committee. Alexa Coates is the Chair of the Committee. The Board has satisfied itself that at least one
of the Committee’s members has recent and relevant financial experience and that the Committee as a whole has competence relevant
to the sector in which the company operates. The AIC Code permits the Chair of the Board to be a member of the Audit and Risk
Committee of an investment trust. Recognising Nick Winsor’s significant experience, it is considered appropriate for the Chair to be a
member of the Audit and Risk 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. The Committee’s terms of reference are available on the Company’s web pages: www.schroders.co.uk/
orientalincome.
Ongoing risk review
Review of external
auditors
Half year
report
Audit
planning
Audit Annual
report
Audit and Risk Committee Report
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:
Key roles and responsibilities Application during the year
Risks and internal controls
To ensure a robust assessment of the Company’s emerging and
principal risks and procedures are in place to identify emerging
risks, and an explanation of how these are being managed or
mitigated.
Reviewed and updated twice during the financial year the principal
and emerging risks register and the systems, processes and
oversight in place to manage and mitigate risks.
To keep under review the adequacy and effectiveness of the
Company’s systems of internal control and risk management
and review the annual report disclosures relating to this.
To monitor the Company’s accounting and financial internal
control systems.
To consider the need for and appropriateness of having an
internal audit function.
Reviewed the internal controls operating within the Manager
and custodian, including independently audited internal controls
reports.
These reports and reviews collectively cover the effectiveness of
the Company’s material controls, including financial, operational,
reporting and compliance controls. Following these reviews, the
Committee considered that a sufficient level of internal assurance
is in place and the work of the external audit was not adversely
impacted by the absence of an internal audit function. It was
therefore recommended that an internal audit function is not
required at present.
Following a review of the Company’s risk management and internal
controls framework, the Committee noted that these remain
effective as at the end of the financial year ended 31 August 2025.
Financial reporting
To oversee the accounting policies adopted by the Company. An
explanation of the Company’s material accounting policies can
be found at note 1 of the financial statements on page 67.
Consideration of the accounting policies and judgments used in
preparing the interim and full year financial statements of the
Company.
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Section 4: Governance
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To monitor the integrity of the financial statements of the
Company and any formal announcements relating to the
Company’s financial performance and valuation. To review
the annual and half year reports and to advise the Board on
whether the annual report is fair, balanced and understandable.
Portfolio holdings and assurance reports were reviewed by the
Board on a quarterly basis.
Consideration of the methodology used to calculate the
management and performance fees, matched against the criteria
set out in the AIFM agreement.
Considered dividends received against forecast and the allocation
of special dividends to income and/or capital.
Reviewed the annual report and accounts to ensure that it was fair,
balanced and understandable taking into account the Company’s
results and the report from the Manager.
Consideration of the annual report and accounts and the letter
from the Manager in support of the letter of representation to the
auditors.
To review the capital and liquidity position of the Company 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‑yearly financial
statements.
Reviewed the capital and liquidity position of the Company, as well
as the outcome of stress testing, to support the going concern
and viability statements in the annual and half‑yearly financial
statements.
Audit
To review the audit plan and discuss any matters arising from
the audit including any recommendations made by the auditors.
Reviewed the audit plan for the financial year ended 31 August
2025.
Met with and reviewed with the external auditors their
comprehensive reports which detailed the results of the audit and
met the auditors without representatives of the Manager present.
Representatives of the auditors attended the Committee meeting
at which the draft annual report and accounts were considered.
To make recommendations to the Board, in relation to the
appointment, re‑appointment, effectiveness and removal of the
external auditors, to review their independence, and to approve
their remuneration and terms of engagement.
To formulate a policy on non-audit services.
In relation to these matters, the Committee took into
consideration provisions of the Audit Committees and the
External Audit: Minimum Standard.
PricewaterhouseCoopers CI LLP were appointed as auditors on 25
May 2018. The auditors are required to rotate the senior statutory
auditor every five years. Following the Company becoming tax
resident in the UK, on 1 September 2020, PricewaterhouseCoopers
CI LLP resigned & PricewaterhouseCoopers LLP was appointed
as auditors to the company on 31 May 2022 to audit the financial
statements for the year ended 31 August 2022 and for subsequent
financial periods. This appointment facilitated a more efficient audit
process and resulted in reduced costs for shareholders.
The next tender is expected to take place in 2028. This is in the
best interests of the Company’s members as it balances achieving
value for money from the audit, and the need to preserve auditor
independence. Evaluated the effectiveness of the audit firm prior
to making a recommendation that it should be re-appointed at
the forthcoming AGM. This included consideration of the auditors’
knowledge, expertise, resources and process, alongside feedback
from the Manager on the audit process. Professional scepticism of
the auditors was questioned and the Committee was satisfied with
the auditors’ replies. Received confirmation from the auditors that
they remained independent and that it had implemented policies
and procedures to meet the requirements of the Auditing Practices
Board’s Ethical Standards. Formulated the policy on non-audit
services, taking into account the Audit Committees and the External
Audit: Minimum Standard and noted that the auditors did not
provide any non-audit services to the Company during the year.
Section 4: Governance
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Recommendations made to, and approved by, the Board:
• The Committee recommended that the Board approve the Half Year Report and the Annual Report and Financial
Statements.
• The Committee recommended the adoption of the going concern basis of accounting in the Annual Report and
Financial 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 for the year ended 31 August
2025, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders
to assess the Company’s position, performance, business model and strategy and has reported on these findings to the
Board. The Board’s conclusions in this respect are set out in the Statement of Directors’ Responsibilities on page 56.
• Having reviewed the performance of the auditors, as described above, the Committee was satisfied that there were no
circumstances that affected the independence and objectivity of the auditors and therefore considered it appropriate
to recommend the auditors’ re-appointment. Resolutions to re-appoint PricewaterhouseCoopers LLP as auditors to the
Company, and to authorise the directors to determine their remuneration will be proposed at the AGM.
By order of the Board
Alexa Coates
Audit and Risk Committee Chair
6 November 2025
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 4: Governance
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Management Engagement Committee Report
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.
All directors are members of the Committee. Sam Davis is the Chair of the committee. Its terms of reference are available on the
Company’s web pages, www.schroders.co.uk/orientalincome.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Oversight of the Manager
The Committee:
• reviews the Manager’s performance, over the short and long-
term, against the Reference Index, peer group and the market;
• considers the reporting it has received from the Manager
throughout the year, and the reporting from the Manager to
the shareholders;
• assesses management fees on an absolute and relative basis,
receiving input from the Company’s broker, including peer
group and industry figures, as well as the structure of the fees;
• reviews the appropriateness of the Manager’s contract,
including terms such as notice period;
• visits the Manager’s Asian and London offices periodically to
meet with relevant investment and controls functions; and
• assesses if 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:
• safekeeping agent;
• corporate broker;
• registrar; and
• lender.
The Committee also receives a report from the company
secretary on ancillary service providers, and considers any
recommendations.
The Committee notes the Audit and Risk Committee’s review of
the auditor.
Continuous improvement
objective
Evaluation of
Manager
Evaluation of key service
providers
Section 4: Governance
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Oversight of the Manager Oversight of other service providers
The Committee met with senior management, as well as
representatives from various business functions supporting the
Portfolio 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 also reviewed the terms of the AIFM agreement
and agreed they remained fit for purpose.
During the year, the Board made a trip to Asia to observe the
Manager’s investment process in action and to assess the
Manager’s resources in the region underpinning that process.
This trip and the insights it enabled inform the Committee’s
ongoing positive view of the Manager’s likely ability to continue to
deliver superior shareholder returns.
The Committee conducted a detailed review of each of the
Company’s key service providers, including their anti-modern
slavery, anti-bribery, sustainability, diversity and inclusion
policies, and concluded that their continued appointments were
appropriate.
The Committee noted that the Audit and Risk Committee had
undertaken a detailed evaluation of the Manager, registrar, and
safekeeping agents’ internal controls.
Following a detailed review with significant input from the
Manager, J.P. Morgan Europe Limited were appointed to provide
depositary and custodian services to the Company, replacing
HSBC. J.P. Morgan Administration Services (Guernsey) was
also appointed as designated administrator. These changes,
implemented after the of the financial year, are expected to lead
to significant cost‑savings for the Company.
As detailed in the Section 172 Report on page 32, following
discussions regarding the fee structure, on 6 November 2025 the
Board and Manager agreed as follows:
• the performance fee will be terminated as of 31 August 2026;
• the cap on the total amount of any performance fee payable
this year will be reduced to 0.55% of the net asset value payable,
calculated at the end of the relevant accounting period;
• a new marketing fee of £200,000 payable to the Manager will
be introduced from the end of this current financial year; and
• the notice period in the AIFM agreement will be reduced from
12 to 6 months
This will result in a simpler, more transparent fee structure and
significant savings for shareholders based on the historic pattern
of performance fees earned by the Manager.
Application during the year
Recommendations made to, and approved by, the Board:
• That the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best
interests of shareholders as a whole. The Committee draws shareholders’ attention to the changes to the fee structure
agreed after the year end detailed above.
• That JP Morgan replaces HSBC as custodian, depositary and designated administrator.
• That the Company’s service providers’ ongoing appointment remain appropriate.
Sam Davis
Management Engagement Committee Chair
6 November 2025
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 4: Governance
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Nomination and Remuneration Committee Report
The Nomination and Remuneration Committee is responsible for (1) the recruitment,
selection, induction and remuneration of all directors, (2) their assessment during their
tenure, and (3) the Board’s succession. All directors are members of the Committee. Isabel
Liu succeeded Nick Winsor as Chair of the Committee following his appointment to Chair of
the Board. The Committee’s terms of reference are available on the Company’s web pages,
www.schroders.co.uk/orientalincome.
Application of
succession policy
Selection Induction Annual
evaluation
Annual review of
succession policy
Approach
Selection and induction Board evaluation and directors’ fees Succession
• Specifications are prepared for the
Chair and each director role. The
specifications outline the required
knowledge, professional skills, personal
qualities and experience.
• If external candidates are sought for
Board roles, the Committee procures
proposals from independent search
firms and selects a firm.
• The search firm sources a long list of
potential candidates, who are assessed
against the role specification.
• 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.
• The Committee also considers current
Board members for the Chair role.
• Internal candidates for Chair are
interviewed by the other Board
directors. Appointment as Chair is based
on their approval.
• The Committee assesses the
performance, composition, diversity
and how effectively members work
together annually. Every three years the
Committee uses an external facilitator
for the evaluation.
• Evaluation focuses on whether each
director continues to demonstrate
commitment to their role and provides
a valuable contribution to the Board
during the year, taking into account time
commitment, independence, conflicts
and training needs.
• Following the evaluation, the Committee
provides a recommendation to
shareholders with respect to the annual
re-election of directors at the AGM.
• The Committee reviews directors’ fees,
taking into account comparative data
and reports to shareholders in the
remuneration report.
• Proposed changes to the remuneration
policy for directors are discussed
and then proposed for approval by
shareholders.
• The Board’s succession policy is that
directors’ tenure, including that of
the Chair, will be for no longer than
nine years, except in exceptional
circumstances, and that each director
will be subject to annual re-election at
AGMs.
• The Committee reviews the Board’s
current and future needs at least
annually. Should any need be identified,
the Committee initiates the selection
process.
• The Committee oversees the handover
process for retiring directors.
For application see following page.
•
Section 4: Governance
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Application during the year
Selection and induction Board evaluation and directors’ fees Succession
• In accordance with the Board’s
succession planning, the Committee is
also seeking to appoint a director with
the appropriate skills, experience and
contribution to diversity.
• The Committee evaluated proposals
from a number of search firms. Thomas
& Dessain was selected to conduct the
search.
• The selection process is underway. The
appointment of a new non-executive
director will be announced in due
course.
• The annual Board evaluation, including
evaluation of its committees, was
undertaken within the financial year.
• The evaluation was facilitated by an
external independent advisory firm,
Lintstock Ltd. Lintstock presented
findings from surveys, interviews, and
observations of meetings. Lintstock also
compared the Board’s performance
metrics against a benchmark of other
UK investment trust companies. SOI
rated at or above benchmark in over
90% of the dimensions Lintstock uses to
assess board effectiveness.
• The Committee also reviewed each
director’s time commitment and
independence by reviewing a complete
list of appointments, including pro
bono not for profit roles, to ensure that
directors remained free from conflict
and had sufficient time available to
discharge each of their duties effectively.
• 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 the
biographies on pages 40 and 41.
• All directors were considered to
be independent in character and
judgement.
• Based on its assessment, the Committee
provided individual recommendations
for each directors’ re-election.
• The Committee reviewed directors’
fees, using external benchmarking, and
recommended an increase in directors’
fees, as detailed in the remuneration
report.
• The Committee reviewed the succession
policy and agreed it was still fit for
purpose.
• Isabel Liu was appointed Chair of
the Nomination and Remuneration
Committee on 3 February 2025. On
the same date, Sam Davis succeeded
Isabel Liu as Chair of the Management
Engagement Committee.
Recommendations made to, and approved by, the Board:
• That Isabel Liu be selected as Chair of the Nomination & Remuneration Committee with effect from 3 February 2025
• That Sam Davis be selected as Chair of the Management Engagement Committee with effect from 3 February 2025
• 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 conflicts with
the Company and its directors, so should all be recommended for re-election by shareholders at the AGM.
• That directors’ fees per annum be increased to the following levels effective from 1 September 2025: Chair £52,500,
Audit and Risk Committee Chair £49,500, and other directors £42,500, with the additional amount received by the
Senior Independent Director unchanged at £2,000.
Isabel Liu
Nomination and Remuneration Committee Chair
6 November 2025
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
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Directors’ Remuneration Report
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
Introduction
The following remuneration policy is currently in force and is
subject to a binding vote every three years. The next vote will
take place at the 2026 AGM and the current policy provisions
will apply until that date. The below directors’ annual report on
remuneration is subject to an annual advisory vote. An ordinary
resolution to approve this report will be put to shareholders at the
forthcoming AGM.
At the AGM held on 4 December 2023 when the policy was last
voted on by shareholders, 99.81% of the votes cast (including
votes cast at the Chair’s discretion) in respect of approval of the
directors’ remuneration policy were in favour, while 0.19% were
against. 41,730 votes were withheld.
At the AGM held on 3 December 2024, 99.93% of the votes
cast (including votes cast at the Chair’s discretion) in respect of
approval of the directors’ remuneration report for the year ended
31 August 2023 were in favour, while 0.07% were against. 37,501
votes were withheld.
Directors’ remuneration policy
The determination of the directors’ fees is a matter dealt with by
the Nomination and Remuneration Committee and the Board.
It is the Nomination and 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 fulfil in respect of
Board and Committee responsibilities, and time committed to
the Company’s affairs, taking into account the aggregate limit of
fees set out in the Company’s articles of incorporation (currently
£300,000). Any increase in the level set out therein requires
approval by the Board and the Company’s shareholders.
The Chair of the Board, the Chair of the Audit and Risk Committee,
and the Senior Independent Director each receive fees at a
higher rate than the other directors to reflect their additional
responsibilities. The fees payable to directors are not performance
related. They are set at a level to recruit and retain individuals
of sufficient 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.
The Board and its Committees exclusively comprise non-executive
directors. No director past or present has an entitlement to a
pension from the Company, and the Company has not operated,
and does not intend to operate, a share scheme for directors
and has not awarded, and does not intend 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 office. No other payments are made to directors other
than the reimbursement of reasonable out-of-pocket expenses
incurred in attending to the Company’s business.
Implementation of policy
The terms of directors’ letters of appointment are available for
inspection at the Company’s registered office address during
normal business hours and during the AGM at the location of
such meeting.
The Board did not seek the views of shareholders in setting this
remuneration policy. Any comments on the remuneration policy
received from shareholders would be considered on a case-by-
case basis.
As the Company does not have any employees, no employee pay
and employment conditions were taken into account when setting
this remuneration policy and no employees were consulted in its
construction.
Directors’ fees are reviewed annually and take into account
research from third parties on the fee levels of directors of peer
group companies, as well as industry norms and factors affecting
the time commitment expected of the directors. New directors are
subject to the provisions set out in this remuneration policy.
Directors’ report on remuneration
This report sets out how the remuneration policy was
implemented during the year ended 31 August 2025.
Section 4: Governance
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Remuneration Report for the year ended 31 August 2025
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 financial year. Directors’ remuneration is all fixed; they do not receive any variable remuneration. The performance of the
Company over the financial year is presented on the inside front cover and page 5, under the heading “Performance Summary”.
Fees Taxable benefits
1
Total Change over year ended 31 August
Director
2025
£
2024
£
2025
£
2024
£
2025
£
2024
£
2025
%
2024
%
2023
%
2022
%
2021
%
Paul Meader
2
13,535 50,000 – 2,228 13,535 52,228 n/a 6.0 2.3 13.9 20.7
Alexa Coates 48,000 45,666 – 136 48,000 45,802 4.8 8.7 3.8 1.4 0.0
Kate Cornish-Bowden
3
– 8,939 – 125 – 9,064 n/a n/a 4.6 1.3 0.0
lsabel Liu 41,000 40,000 55 118 41,055 40,118 2.3 7.6 27.7 n/a n/a
Nick Winsor 48,436 40,000 – – 48,436 40,000 21.1 7.8 4.6 1.3 n/a
Sam Davis
4
41,000 6,667 388 – 41,388 6,667 n/a n/a n/a n/a n/a
Total 191,970 191,272 443 2,607 192,413 193,879
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
Retired from the Board on 3 December 2024.
3
Resigned as director on 17 November 2023.
4
Appointed as director on 1 July 2024.
Consideration of matters relating to directors’ remuneration
Directors’ remuneration was last reviewed by the Board in June 2025. The members of the Board at the time that remuneration levels
were considered were as set out on pages 40 and 41. Information on fees paid to directors of investment trusts managed by Schroders
and peer group companies provided by the Manager, corporate broker and third-party surveys was taken into consideration.
Following annual review, the Board agreed that fees should be increased with effect from 1 September 2025 to the following levels:
Chair: £52,500, Audit and Risk Committee Chair: £49,500 and other directors: £42,500. The increase in directors’ fees by roughly 3% is
lower than the rate of inflation as measured by the May 2025 CPI of 4.1%. There was no increase in the additional fees of £10,000 for
the Chair, £5,000 for the Audit and Risk Committee Chair, and £2,000 for the Senior Independent Director.
10 year performance of the share price total return versus the MSCI All Countries Pacific ex Japan Index, with
net dividends reinvested, in sterling terms
100
125
150
175
200
225
250
275
300
31 August 2015
31 August 2016
31 August 2017
31 August 2018
31 August 2019
31 August 2020
31 August 2021
31 August 2022
31 August 2023
31 August 2024
31 August 2025
NAV Total Return (LHS)
Share Price Total Return (LHS) Dividends per share (pence) (RHS)
0
2
4
6
8
10
12
14
16
Source: Morningstar. Rebased to 100 at 31 August 2015. The MSCI All Countries Pacific ex Japan Index with net dividends reinvested, sterling adjusted, has been
chosen as an appropriate comparison, as it comprises companies within the Company’s primary investment objective.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 4: Governance
54
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
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 financial year. In considering these figures, shareholders should take into account the Company’s investment objective.
Year ended
31 August
2025
Year ended
31 August
2024 Change
£’000 £’000 %
Remuneration payable to directors 192 194 -1.0
Distributions paid to shareholders
– Dividends 28,023 29,282
– Share buybacks 34,693 29,007
Total distributions paid to shareholders 62,716 58,289 +7.6
Directors’ share interests
The Company’s articles of incorporation do not require directors to own shares in the Company. The interests of directors, including
those of connected persons, at the beginning and end of the financial year under review are set out below.
Ordinary shares
of 1p each
31 August 2025
Ordinary shares
of 1p each
31 August 2024
Paul Meader
1
11,000 11,000
Alexa Coates 10,000 10,000
Nick Winsor 40,000 20,000
Sam Davis 7,326 n/a
Isabel Liu 18,634 18,634
1
Retired from the Board on 3 December 2024.
On behalf of the Board
Nick Winsor
Chair
6 November 2025
Section 4: Governance
55
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Statement of Directors’ Responsibilities
in Respect of the Annual Report and Financial
Statements
The directors are responsible for preparing the financial statements in accordance with
applicable Guernsey law and generally accepted accounting principles.
Guernsey company law requires the directors to prepare financial
statements for each financial year which give a true and fair
view of the state of affairs of the Company and of the profit or
loss of the Company for that period. In preparing these financial
statements, the directors should:
• select suitable accounting policies, and apply them consistently;
• present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
• provide additional disclosures when compliance with the
specific requirements in International Financial Reporting
Standards (“IFRS”) as adopted by the European Union is
insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the
entity’s financial position and financial performance;
• state that the Company has complied with IFRS as adopted
by the European Union, subject to any material departures
disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business; and
• make judgements and estimates that are reasonable and
prudent.
The directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure
that the financial statements comply with The Companies
(Guernsey) Law, 2008 (as amended). They 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.
Directors’ Statement
Each of the directors, whose names and functions are listed on
pages 40 and 41, confirm that to the best of their knowledge:
• the financial statements, which have been prepared in
accordance with IFRS as adopted by the European Union and
with The Companies (Guernsey) Law, 2008 (as amended) and
in accordance with the requirements set out above, give a true
and fair view of the assets, liabilities, financial position and the
net return of the Company;
• the Strategic Review 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 risks and
uncertainties that it faces; and
• the Annual Report and Accounts, taken as a whole, are fair,
balanced and understandable and provide the information
necessary for shareholders to assess the Company’s position
and performance, business model and strategy.
So far as each of the directors are aware, there is no relevant
audit information of which the Company’s auditors are 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 auditors are aware of that information.
On behalf of the Board
Nick Winsor
Chair
6 November 2025
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 4: Governance
56
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Section 5: Financials
Independent Auditor’s Report 58
Statement of Comprehensive Income 63
Statement of Changes in Equity 64
Statement of Financial Position 65
Cash Flow Statement 66
Notes to the Financial Statements 67
57
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
Independent auditors’ report to the members of
Schroder Oriental Income Fund Limited
Report on the audit of the financial
statements
Opinion
In our opinion, Schroder Oriental Income Fund Limited’s financial
statements:
• give a true and fair view of the state of the company’s affairs as
at 31 August 2025 and of its return and cash flows for the year
then ended;
• have been properly prepared in accordance with International
Financial Reporting Standards (IFRSs) as adopted in the
European Union; and
• have been prepared in accordance with the requirements of
the Companies (Guernsey) Law, 2008.
We have audited the financial statements, included within the
Annual Report and Financial Statements (the “Annual Report”),
which comprise: Statement of Financial Position as at 31 August
2025; Statement of Comprehensive Income, Statement of
Changes in Equity and Cash Flow Statement for the year then
ended; and the notes to the financial statements, comprising
material accounting policy information and other explanatory
information.
Our opinion is consistent with our reporting to the Audit and Risk
Committee.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our
responsibilities under ISAs (UK) are further described in the
Auditors’ responsibilities for the audit of the financial statements
section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We remained independent of the company in accordance with
the ethical requirements that are relevant to our audit of the
financial statements in the UK, which includes the Financial
Reporting Council’s (“FRC”) Ethical Standard, as applicable to
listed public interest entities in accordance with the requirements
of the Crown Dependencies’ Audit Rules and Guidance for
market-traded companies, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-
audit services prohibited by the FRC’s Ethical Standard were not
provided.
We have provided no non-audit services to the company in the
period under audit.
Our audit approach
Overview
Audit scope
• The company is a standalone authorised, closed-ended
investment company registered in the Bailiwick of Guernsey
with its shares listed on the main market of the London Stock
Exchange.
• The company engaged Schroder Unit Trusts Limited (the
“Manager”) to manage the company’s assets.
• The Manager has delegated investment management,
marketing, administrative, accounting and company secretarial
services to Schroder Investment Management Limited (the
“Investment Manager”). The Investment Manager has sub-
delegated a part of the fund accounting and administration
activities to HSBC Securities Services (UK) Limited (the
“Administrator”).
• On 3 October 2025, the Depository, Administration and
Custody services of the company have been delegated to
J.P. Morgan Europe Limited and JPMorgan Chase Bank, N.A.,
London Branch.
• We conducted our audit using information provided by the
Manager, Investment Manager and the Administrator.
• We tailored the scope of our audit taking into account the types
of investments within the company, the involvement of the
third parties referred to above, the accounting processes and
controls, and the industry in which the company operates.
• We obtained an understanding of the control environment in
place at the Manager, Investment Manager and Administrator,
and adopted a fully substantive testing approach using
reports obtained from the Manager, Investment Manager and
Administrator.
Key audit matters
• Income from and gains on investments
• Valuation and existence of investments at fair value through
profit or loss
Materiality
• Overall materiality: £7,321,000 (2024: £7,003,000) based on
approximately 1% of net assets.
• Performance materiality: £5,491,000 (2024: £5,252,000).
The scope of our audit
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the financial
statements.
Key audit matters
Key audit matters are those matters that, in the auditors’
professional judgement, were of most significance in the audit
of the financial statements of the current period and include the
most significant assessed risks of material misstatement (whether
or not due to fraud) identified by the auditors, including those
which had the greatest effect on: the overall audit strategy; the
allocation of resources in the audit; and directing the efforts of
the engagement team. These matters, and any comments we
make on the results of our procedures thereon, were addressed
in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
58
The key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Income from and gains on investments
Refer to the Note 1 Accounting Policies, Note 2 Gains / (losses)
on investments held at fair value through profit and loss and
Note 3 Income.
We focused on the accuracy and occurrence of both net capital
gains/losses on investments and of dividend income. We also
assessed the completeness of dividend income.
We assessed the presentation of income in the Statement of
Comprehensive Income in accordance with the requirements
of The Association of Investment Companies’ Statement of
Recommended Practice (the “AIC SORP”).
We assessed and found that the accounting policies
implemented were in accordance with IFRS as adopted in the
European Union and the AIC SORP, and that income (revenue
and capital gains and losses on investments) has been
accounted for in accordance with the stated accounting policy.
We understood and assessed the design and implementation
of key controls surrounding income recognition.
Dividend income
We tested the accuracy of all dividend receipts by agreeing the
dividend rates for investments to independent market data.
We tested occurrence by testing that all dividends recorded
in the year had been declared in the market by investment
holdings.
To test for completeness, we tested that the appropriate
dividends had been received in the year by reference to
independent data of dividends declared for all dividends during
the year for all investments.
Gains/(losses) on investments at fair value through profit
or loss
The gains/losses on investments held at fair value comprise
realised and unrealised gains/losses.
For unrealised gains and losses, we tested the valuation
of the portfolio at the year end, together with testing the
reconciliation of opening and closing investments, thereby we
have assessed the accuracy of the gains/losses recorded.
We have also verified the occurrence of the gains/losses
through our testing of the existence of investments.
For realised gains/losses, we tested a sample of disposals by
agreeing the proceeds to bank statements in order to verify the
occurrence of the gain/loss. We re-performed the calculation
of a sample of realised gains/losses in order to assess the
accuracy of the gains/losses recorded.
Valuation and existence of investments at fair value
through profit or loss
Refer to Note 1(c) Accounting Policies and Note 10 Investments
at fair value through profit or loss.
The investment portfolio at 31 August 2025 comprised listed
equity investments. We focused on the valuation and existence
of investments because investments represent the principal
element of the net asset value as disclosed in the Statement of
Financial Position in the financial statements.
We assessed the accounting policy for investments held at fair
value through profit or loss for compliance with accounting
standards and performed testing to check that investments are
accounted for in accordance with the stated accounting policy.
We tested the valuation of the listed investments by agreeing
the prices used in the valuation to independent third party
sources.
We tested the existence of the listed investments by agreeing
the holdings to an independent confirmation from the
Custodian, as at 31 August 2025.
Section 5: Financials
59
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed
enough work to be able to give an opinion on the financial
statements as a whole, taking into account the structure of
the company, the accounting processes and controls, and the
industry in which it operates.
The company is a standalone authorised, closed-ended
investment company that has outsourced the management of its
assets to the Manager. The Manager has delegated investment
management, administrative, accounting and company secretarial
services to the Investment Manager, who sub-delegated certain
accounting and administrative services to the Administrator.
We applied professional judgement to determine the extent of
testing required over each balance in the financial statements and
obtained our audit evidence which was substantive in nature from
the Manager, the Investment Manager and the Administrator.
The impact of climate risk on our audit
As part of our audit we made enquiries of management to
understand the extent of the potential impact of climate risk on
the company’s financial statements, and we remained alert when
performing our audit procedures for any indicators of the impact
of climate risk. Our procedures did not identify any material
impact as a result of climate risk on the company’s financial
statements.
Materiality
The scope of our audit was influenced by our application of
materiality. We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us
to determine the scope of our audit and the nature, timing
and extent of our audit procedures on the individual financial
statement line items and disclosures and in evaluating the effect
of misstatements, both individually and in aggregate on the
financial statements as a whole.
Based on our professional judgement, we determined materiality
for the financial statements as a whole as follows:
Overall company
materiality
£7,321,000 (2024: £7,003,000).
How we determined it approximately 1% of net assets
Rationale for
benchmark applied
We believe that net assets is the
primary measure used by the
shareholders in assessing the
performance of the company, and
is a generally accepted auditing
benchmark. This benchmark provides
an appropriate and consistent year on
year basis for our audit.
We use performance materiality to reduce to an appropriately
low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically,
we use performance materiality in determining the scope of
our audit and the nature and extent of our testing of account
balances, classes of transactions and disclosures, for example in
determining sample sizes. Our performance materiality was 75%
(2024: 75%) of overall materiality, amounting to £5,491,000 (2024:
£5,252,000) for the company financial statements.
In determining the performance materiality, we considered a
number of factors - the history of misstatements, risk assessment
and aggregation risk and the effectiveness of controls - and
concluded that an amount at the upper end of our normal range
was appropriate.
We agreed with the Audit and Risk Committee that we would
report to them misstatements identified during our audit above
£366,000 (2024: £350,000) as well as misstatements below that
amount that, in our view, warranted reporting for qualitative
reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the company’s
ability to continue to adopt the going concern basis of accounting
included:
• evaluating the directors’ updated risk assessment and
considering whether it addressed relevant threats;
• evaluating the directors’ assessment of potential operational
impacts, considering their consistency with other available
information and our understanding of the business and
assessed the potential impact on the financial statements;
• reviewing the directors’ assessment of the company’s financial
position in the context of its ability to meet future expected
operating expenses and debt repayments, their assessment of
liquidity; and
• assessing the premium/discount at which the company’s share
price trades compared to the net asset value per share.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
company’s ability to continue as a going concern for a period of
at least twelve months from when the financial statements are
authorised for issue.
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
However, because not all future events or conditions can be
predicted, this conclusion is not a guarantee as to the company’s
ability to continue as a going concern.
From our work on the corporate governance statement described
below, we have nothing material to add or draw attention to in
relation to the directors’ statement in the financial statements
about whether the directors considered it appropriate to adopt
the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections of
this report.
Reporting on other information
The other information comprises all of the information in the
Annual Report other than the financial statements and our
auditors’ report thereon. The directors are responsible for the
other information. Our opinion on the financial statements
does not cover the other information and, accordingly, we do
not express an audit opinion or, except to the extent otherwise
explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated.
If we identify an apparent material inconsistency or material
misstatement, we are required to perform procedures to
conclude whether there is a material misstatement of the financial
statements or a material misstatement of the other information.
If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report based on
these responsibilities.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
60
Corporate governance statement
As explained in Directors’ Report, the directors have chosen to
demonstrate how the company has met its obligations under
the UK Corporate Governance Code (‘the Code’) by reporting
under the 2019 Association of Investment Companies’ Code
of Corporate Governance (‘the AIC Code’). As such, we refer to
the AIC Code where we report the matters required under ISAs
(UK) in respect of the directors’ statements 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 Code specified by the Listing Rules
for our review. Our additional responsibilities with respect to
the corporate governance statement as other information are
described in the Reporting on other information section of this
report.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit, and we
have nothing material to add or draw attention to in relation to:
• The directors’ confirmation that they have carried out a robust
assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those
principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are being
managed or mitigated;
• The directors’ statement in the financial statements about
whether they considered it appropriate to adopt the going
concern basis of accounting in preparing them, and their
identification of any material uncertainties to the company’s
ability to continue to do so over a period of at least twelve
months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the
company’s prospects, the period this assessment covers and
why the period is appropriate; and
• The directors’ statement as to whether they have a reasonable
expectation that the company will be able to continue in
operation and meet its liabilities as they fall due over the period
of its assessment, including any related disclosures drawing
attention to any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term
viability of the company was substantially less in scope than an
audit and only consisted of making inquiries and considering
the directors’ process supporting their statement; checking that
the statement is in alignment with the relevant provisions of the
Code; and considering whether the statement is consistent with
the financial statements and our knowledge and understanding
of the company and its environment obtained in the course of the
audit.
In addition, based on the work undertaken as part of our audit,
we have concluded that each of the following elements of the
corporate governance statement is materially consistent with
the financial statements and our knowledge obtained during the
audit:
• The directors’ statement that they consider the Annual Report,
taken as a whole, is fair, balanced and understandable, and
provides the information necessary for the members to assess
the company’s position, performance, business model and
strategy;
• The section of the Annual Report that describes the review of
effectiveness of risk management and internal control systems;
and
• The section of the Annual Report describing the work of the
Audit and Risk Committee.
We have nothing to report in respect of our responsibility to
report when the directors’ statement relating to the company’s
compliance with the Code does not properly disclose a departure
from a relevant provision of the Code specified under the Listing
Rules for review by the auditors.
Responsibilities for the financial statements and the
audit
Responsibilities of the directors for the financial
statements
As explained more fully in the Statement of Directors’
Responsibilities in respect of the Annual Report and Financial
Statements, the directors are responsible for the preparation
of the financial statements in accordance with the applicable
framework and for being satisfied that they give a true and fair
view. The directors are also responsible for such internal control
as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the 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.
Auditors’ responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditors’ report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including
fraud, is detailed below.
Based on our understanding of the company and industry, we
identified that the principal risks of non-compliance with laws
and regulations related to breaches of section 1158 of the
Corporation Tax Act 2010, and we considered the extent to which
non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations that
have a direct impact on the financial statements such as the
Companies (Guernsey) Law, 2008. We evaluated management’s
incentives and opportunities for fraudulent manipulation of the
financial statements (including the risk of override of controls),
and determined that the principal risks were related to posting
inappropriate journal entries to increase revenue (investment
income and capital gains) or to increase net asset value. Audit
procedures performed by the engagement team included:
• discussions with the Manager and the Audit and Risk
Committee, including specific enquiry of known or suspected
instances of non-compliance with laws and regulation and
fraud where applicable;
• reviewing relevant meeting minutes, including those of the
Audit and Risk Committee;
Section 5: Financials
61
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
• assessment of the company’s compliance with the
requirements of section 1158 of the Corporation Tax Act 2010,
including recalculation of numerical aspects of the eligibility
conditions;
• identifying and testing journal entries, in particular any
material, revenue-impacting manual journal entries posted as
part of the Financial Statement preparation process; and
• designing audit procedures to incorporate unpredictability
around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described
above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related
to events and transactions reflected in the financial statements.
Also, the risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one resulting
from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through
collusion.
Our audit testing might include testing complete populations of
certain transactions and balances, possibly using data auditing
techniques. However, it typically involves selecting a limited
number of items for testing, rather than testing complete
populations. We will often seek to target particular items for
testing based on their size or risk characteristics. In other cases,
we will use audit sampling to enable us to draw a conclusion
about the population from which the sample is selected.
A further description of our responsibilities for the audit of
the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and
only for the company’s members as a body in accordance with
Section 262 of The Companies (Guernsey) Law, 2008 and for
no other purpose. We do not, in giving these opinions, accept
or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it
may come save where expressly agreed by our prior consent in
writing.
Other required reporting
Companies (Guernsey) Law, 2008 exception reporting
Under the Companies (Guernsey) Law, 2008 we are required to
report to you if, in our opinion:
• we have not obtained all the information and explanations we
require for our audit; or
• proper accounting records have not been kept by the company;
or
• the financial statements are not in agreement with the
accounting records.
We have no exceptions to report arising from this responsibility.
Colleen Local
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Recognised Auditor
London
6 November 2025
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
62
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Statement of Comprehensive Income
for the year ended 31 August 2025
2025 2024
Note
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Gains on investments held at fair value through profit or loss 2 – 74,935 74,935 – 89,708 89,708
Net foreign currency gains – 803 803 – 1,266 1,266
Income from investments 3 32,920 725 33,645 33,824 510 34,334
Other income 3 117 – 117 161 – 161
Total income 33,037 76,463 109,500 33,985 91,484 125,469
Management fee 4 (1,950) (2,925) (4,875) (1,905) (2,858) (4,763)
Performance fee 4 – (4,759) (4,759) – (4,552) (4,552)
Other administrative expenses 5 (1,277) (8) (1,285) (1,170) (3) (1,173)
Net return before finance costs and taxation 29,810 68,771 98,581 30,910 84,071 114,981
Finance costs 6 (859) (1,290) (2,149) (1,075) (1,611) (2,686)
Net return before taxation 28,951 67,481 96,432 29,835 82,460 112,295
Taxation 7 (1,936) – (1,936) (1,899) – (1,899)
Net return after taxation 27,015 67,481 94,496 27,936 82,460 110,396
Return per share - basic and diluted (pence) 9 11.59 28.94 40.53 11.29 33.34 44.63
The “Total” column of this statement represents the Company’s Statement of Comprehensive Income, prepared in accordance with
IFRS. The “Revenue and Capital” columns represent supplementary information prepared under guidance set out in the statement of
recommended practice for investment trust companies (the “SORP”) issued by the Association of Investment Companies in July 2022.
The Company does not have any income or expense that is not included in net return for the year. Accordingly the “Net return” for the
year 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 67 to 80 form an integral part of these financial statements.
Section 5: Financials
63
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Statement of Changes in Equity
for the year ended 31 August 2025
Note
Share
capital
£’000
Treasury
shar
e
reserve
£’000
Capital
redemption
reserve
£’000
Special
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Total
£’000
At 31 August 2023 234,347 (46,118) 39 150,374 272,701 36,865 648,208
Repurchase of ordinary shares into treasury – (29,007) – – – – (29,007)
Net return after taxation – – – – 82,460 27,936 110,396
Dividends paid in the year 8 – – – – – (29,282) (29,282)
At 31 August 2024 234,347 (75,125) 39 150,374 355,161 35,519 700,315
Repurchase of ordinary shares into treasury – (34,693) – – – – (34,693)
Net return after taxation – – – – 67,481 27,015 94,496
Dividends paid in the year 8 – – – – – (28,023) (28,023)
At 31 August 2025 234,347 (109,818) 39 150,374 422,642 34,511 732,095
The notes on pages 67 to 80 form an integral part of these financial statements.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
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Note
2025
£’000
2024
£’000
Non current assets
Investments at fair value through profit or loss 10 763,811 735,607
Current assets 11
Receivables 4,179 6,017
Cash and cash equivalents 8,527 6,942
12,706 12,959
Total assets 776,517 748,566
Current liabilities
Payables 12 (44,422) (48,251)
Net assets 732,095 700,315
Equity attributable to equity holders
Share capital 13
234,347 234,347
Treasury share reserve 14 (109,818) (75,125)
Capital redemption reserve 14 39 39
Special reserve 14 150,374 150,374
Capital reserves 14 422,642 355,161
Revenue reserve 14 34,511 35,519
Total equity shareholders’ funds 732,095 700,315
Net asset value per share (pence) 15 319.47 289.63
The financial statements on pages 63 to 66 were approved by the Board of directors on 6 November 2025 and signed on its behalf by:
Director
The notes on pages 67 to 80 form an integral part of these financial statements.
Registered in England and Wales as a public company limited by shares.
Company registration number: 43298.
Statement of Financial Position
at 31 August 2025
Section 5: Financials
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Cash Flow Statement
for the year ended 31 August 2025
2025
£’000
2024
£’000
Operating activities
Net return before finance costs and taxation 98,581 114,981
Adjustments for:
Net foreign currency gains (803) (1,266)
Gains on investments held at fair value through profit or loss (74,935) (89,708)
Net sales of investments at fair value through profit or loss 45,752 29,282
Decrease in receivables 189 1,144
Increase in payables 226 4,559
Overseas taxation paid (1,926) (1,972)
Net cash inflow from operating activities before interest 67,084 57,020
Interest paid (2,145) (2,679)
Net cash inflow from operating activities 64,939 54,341
Financing activities
Repurchase of ordinary shares into treasury (35,098) (28,969)
Dividends paid (28,023) (29,282)
Net cash outflow from financing activities (63,121) (58,251)
Increase/(decrease) in cash and cash equivalents 1,818 (3,910)
Cash and cash equivalents at the start of the year 6,942 11,000
Effect of foreign exchange rates on cash and cash equivalents (233) (148)
Cash and cash equivalents at the end of the year 8,527 6,942
The notes on pages 67 to 80 form an integral part of these financial statements.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
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Notes to the Financial Statements
for the year ended 31 August 2025
1. Accounting Policies
(a) Basis of accounting
The financial statements have been prepared in accordance with the Companies (Guernsey) Law 2008 and International Financial
Reporting Standards (“IFRS”), which comprise standards and interpretations approved by the International Accounting Standards Board
(“IASB”), together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by
the International Accounting Standards Committee (“IASC”), that remain in effect and to the extent that they have been adopted by the
European Union.
Where consistent with the requirements of IFRS, the directors have sought to prepare the financial statements on a basis compliant
with presentational guidance set out in the statement of recommended practice for investment trust companies (the “SORP”) issued by
the Association of Investment Companies in July 2022.
The policies applied in these financial statements are consistent with those applied in the preceding year.
The Company’s share capital is denominated in sterling and this is the currency in which its shareholders operate and expenses are
generally paid. The Board has therefore determined that sterling is the functional currency and the currency in which the financial
statements are presented. Amounts have been rounded to the nearest thousand.
The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the
revaluation of investments held at fair value through profit or loss. The directors believe that the Company has adequate resources
to continue operating to 30 November 2026, which is at least 12 months from the date of approval of these financial statements. In
forming this opinion, the directors have taken into consideration: the controls and monitoring processes in place; the Company’s level
of debt and other payables; the low level of operating expenses, comprising largely variable costs which would reduce pro rata in the
event of a market downturn; and that the Company’s assets comprise cash and readily realisable securities quoted in active markets.
In forming this opinion, the directors have also considered any potential impact of climate change, inflation, high interest rates and the
energy crisis on the viability of the Company.
Further details of directors’ considerations regarding this are given in the Chair’s Statement, Portfolio Managers’ Review, Going Concern
Statement, Viability Statement and under the Principal and Emerging Risks heading on page 35.
The material accounting policies adopted are set out below.
(b) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment company and in accordance with the recommendations of the SORP,
supplementary information has been presented which analyses items in the Statement of Comprehensive Income between those
which are income in nature and those which are capital in nature.
(c) Investments at fair value through profit or loss
The Company’s business is investing in financial assets with a view to profiting from their total return in the form of income and
capital growth. This portfolio of financial assets is managed and its performance evaluated on a fair value basis, in accordance with a
documented investment objective and information is provided internally on that basis to the Company’s board of directors. Accordingly,
investments are designated upon initial recognition as investments at fair value through profit or loss, and are measured at subsequent
reporting dates at fair value, which are quoted bid market prices for investments traded in active markets.
Investments that are unlisted or not actively traded are valued using a variety of techniques to determine their fair value; all such
valuations are reviewed by both the AIFM’s fair value pricing committee and by the directors.
Investments are recognised and derecognised on the trade date where a purchase or sale is made under a contract whose terms
require delivery within a timeframe established by the market concerned.
(d) Accounting for reserves
Gains and losses on sales of investments, including the related foreign exchange gains and losses, are included in the Statement
of Comprehensive Income and in capital reserves within “Gains and losses on sales of investments”. Increases and decreases in the
valuation of investments held at the year end, including the related foreign exchange gains and losses, are included in the Statement of
Comprehensive Income and in capital reserves within “Holding gains and losses on investments”.
Foreign exchange gains and losses on cash and deposit balances are included in the Statement of Comprehensive Income and in
capital reserves within “Holdings gains and losses on investments”. Unrealised exchange gains and losses on foreign currency loans
are included in the Statement of Comprehensive Income and dealt with in capital reserves within “Holdings gains and losses on
investments”.
Section 5: Financials
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(e) Repurchases of shares into treasury and subsequent reissues
The cost of repurchasing shares into treasury is debited to “treasury share reserve”. The sales proceeds of treasury shares reissued are
credited back to treasury share reserve until the debit balance on that reserve is extinguished and thereafter to capital reserves.
(f) 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.
Income from fixed interest debt securities is recognised using the effective interest method.
Deposit interest outstanding at the year end is calculated and accrued on a time apportionment basis using market rates of interest.
(g) 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.
• Any performance fee is allocated 100% to capital.
• Expenses incidental to the purchase or sale of investments are charged to capital. These expenses are commonly referred to as
transaction costs and mainly comprise brokerage commission. Details of transaction costs are given in note 10 on page 72.
(h) Finance costs
Finance costs, including any premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals
basis in profit or loss using the effective interest method.
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.
(i) Other financial assets and liabilities
Cash and cash equivalents may comprise cash and demand deposits which are readily convertible to a known amount of cash and are
subject to insignificant risk of changes in value. Other receivables are non-interest-bearing, short-term in nature and are accordingly
stated at nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.
Interest-bearing bank loans are initially recognised at cost, being the proceeds received net of direct issue costs, and subsequently at
amortised cost.
(j) Taxation
The taxation charge in the Statement of Comprehensive Income comprises irrecoverable overseas withholding tax deducted from
dividends receivable.
Current taxation comprises of the tax withheld at the source on foreign income, with adjustments for any amounts recoverable under
tax treaties. The taxation is recorded in the revenue section of the Statement of Comprehensive Income, except when it pertains to
capital-related items where it will be accounted for in the capital section of the statement.
Deferred taxation represents the taxation liability or asset arising from anticipated variations in the treatment of items for accounting
purposes compared to tax purposes. The calculation is based on tax rates that have been officially approved or are highly likely for the
period when the tax becomes payable. Deferred tax assets are recognised when there is an expectation of having future taxable profits.
(k) Foreign currency
The results and financial position are expressed in sterling. Transactions in currencies other than sterling are recorded at the rates
of exchange prevailing on the dates of the transaction. At each balance sheet date, monetary items and non monetary assets and
liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at 1600 hours on the balance sheet date.
Gains or losses arising on translation are included in net profit or loss for the year and presented as revenue or capital as appropriate.
(l) New and amended accounting standards
At the date of authorisation of these financial statements there are no new or revised Standards or Interpretations, which are in issue
but which are not yet effective, which the Board expects to have any significant effect on the Company’s financial statements.
(m) Significant accounting judgements, estimates and assumptions
Other than the directors’ assessment of going concern, no significant judgements, estimates or assumptions have been required in the
preparation of these financial statements in accordance with IFRS.
(n) Dividends payable to shareholders
Interim dividends to shareholders are recorded in the financial statements when paid.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
68
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2. Gains on investments held at fair value through profit or loss
2025
£’000
2024
£’000
Gains on sales of investments based on historic cost 30,853 14,373
Amounts recognised in investment holding gains and losses in the previous year in respect of investments sold in the
year (30,098) (4,657)
Gains on sales of investments based on the carrying value at the previous balance sheet date 755 9,716
Net movement in investment holding gains 74,180 79,992
Gains on investments held at fair value through profit or loss 74,935 89,708
3. Income
2025
£’000
2024
£’000
Income from investments:
Overseas dividends 32,920 33,824
Other income:
Deposit interest 117 161
Total income 33,037 33,985
Capital:
Special dividend allocated to capital 725 510
4. Management and performance fees
2025 2024
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Management fee 1,950 2,925 4,875 1,905 2,858 4,763
Performance fee – 4,759 4,759 – 4,552 4,552
1,950 7,684 9,634 1,905 7,410 9,315
The basis for calculating the investment management fee and any performance fee is set out in the Directors’ Report on page 42.
5. Other administrative expenses
2025 2024
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Administration expenses 870 8 878 764 3 767
Directors’ fees 192 – 192 192 – 192
Secretarial fee 150 – 150 150 – 150
Auditors’ remuneration for audit services
1
65 – 65 64 – 64
1,277 8 1,285 1,170 3 1,173
1
No amounts are payable to the auditor for non-audit services.
Section 5: Financials
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6. Finance costs
2025 2024
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Interest on bank loans and overdrafts 859 1,290 2,149 1,075 1,611 2,686
The Board has determined that the finance costs will be 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.
7. Taxation
(a) Analysis of tax charge for the year
2025 2024
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Irrecoverable overseas tax 1,936 – 1,936 1,899 – 1,899
Taxation for the year 1,936 – 1,936 1,899 – 1,899
The Company became resident in the United Kingdom for tax purposes with effect from 1 September 2020. The Company has no
corporation tax liability for the year ended 31 August 2025 (2024: the same).
(b) Factors affecting tax charge for the year
The tax assessed for the year ended 31 August 2025 is lower (2024: lower) than the Company’s applicable rate of corporation tax for
that year of 25% (2024: 25%).
The factors affecting the tax charge for the year are as follows:
2025 2024
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Net return before taxation 28,951 67,481 96,432 29,835 82,460 112,295
Net return before taxation multiplied by the Company’s applicable
rate of corporation tax for the year of 25% (2024: 25%) 7,238 16,871 24,109 7,459 20,615 28,074
Effects of:
(Gains) on investments not taxable/capital losses on investments
not deductible – (18,933) (18,933) – (22,743) (22,743)
Income not chargeable to corporation tax (7,593) (181) (7,774) (7,672) (127) (7,799)
Expenses disallowed – (2) (2) – (1) (1)
Unrelieved expenses 384 2,245 2,629 236 2,256 2,492
Tax relief on overseas tax suffered (29) – (29) (23) – (23)
Irrecoverable overseas tax 1,936 – 1,936 1,899 – 1,899
Taxation for the year 1,936 – 1,936 1,899 – 1,899
(c) Deferred taxation
The Company has an unrecognised deferred tax asset of £8,833,000 (2024: £6,205,000) based on a main rate of corporation tax of
25%. In its 2020 budget, the UK government announced that the main rate of corporation tax would increase to 25% for the fiscal year
beginning on 1 April 2023.
The deferred tax asset has arisen due to the excess of deductible expenses over taxable income. Given the composition of the
Company’s portfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been recognised
in the financial statements.
The Company was granted status as an investment trust company by HMRC effective from 1 September 2020, and intends to continue
to meet the conditions required to retain that status. Therefore, no provision has been made for deferred UK capital gains tax on any
capital gains or losses arising on the revaluation or disposal of investments.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
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8. Dividends
(a) Dividends paid and declared
2025
£’000
2024
£’000
2024 fourth interim dividend of 6.00p (2023: 5.80p) 14,160 14,547
First interim dividend of 2.00p (2024: 2.00p) 4,654 4,982
Second interim dividend of 2.00p (2024: 2.00p) 4,626 4,899
Third interim dividend of 2.00p (2024: 2.00p) 4,583 4,854
Total dividends paid in the year 28,023 29,282
2025
£’000
2024
£’000
Fourth interim dividend declared of 6.20p (2024: 6.00p) 14,208 14,508
Under the Companies (Guernsey) Law 2008, the Company may pay dividends out of both capital and revenue reserves, subject to
passing a solvency test. However all dividends paid and declared to date have been paid, or will be paid out of revenue and revenue
reserves. The Company has passed the solvency test for all dividends paid to date.
The fourth interim dividend declared in respect of the year ended 31 August 2024 differs from the amount actually paid due to shares
repurchased and cancelled after the balance sheet date but prior to the share register record date.
(b) Dividends for the purposes of Section 1158 of the Corporation Tax Act 2010 (“Section 1158”)
The Company was granted status as an investment trust company by HMRC effective from 1 September 2020, and intends to continue
to meet the minimum distribution requirements of Section 1158, in order to retain that status. Those requirements are considered on
the basis of dividends declared in respect of the financial year as shown below. The revenue available for distribution by way of dividend
for the year is £27,015,000 (2024: £27,936,000).
2025
£’000
2024
£’000
First interim dividend of 2.00p (2024: 2.00p) 4,654 4,982
Second interim dividend of 2.00p (2024: 2.00p) 4,626 4,899
Third interim dividend of 2.00p (2024: 2.00p) 4,583 4,854
Fourth interim dividend of 6.20p (2024: 6.00p) 14,208 14,508
Total dividends of 12.20p (2024: 12.00p) 28,071 29,243
9. Return per share
2025
£’000
2024
£’000
Revenue return 27,015 27,936
Capital return 67,481 82,460
Total return 94,496 110,396
Weighted average number of ordinary shares in issue during the year 233,142,284 247,361,808
Revenue return per share (pence) 11.59 11.29
Capital return per share (pence) 28.94 33.34
Total return per share (pence) 40.53 44.63
Section 5: Financials
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10. Investments held at fair value through profit or loss
2025
£’000
2024
£’000
Opening book cost 608,139 624,190
Opening investment holding gains 127,468 52,133
Opening fair value 735,607 676,323
Analysis of transactions made during the year
Purchases at cost 136,514 136,746
Sales proceeds (183,245) (167,170)
Gains on investments held at fair value through profit or loss 74,935 89,708
Closing fair value 763,811 735,607
Closing book cost 592,261 608,139
Closing investment holding gains 171,550 127,468
Closing fair value 763,811 735,607
All investments are listed on a recognised stock exchange.
The Company received £183,245,000 (2024: £167,170,000) from disposal of investments in the year. The book cost of these
investments when they were purchased was £152,392,000 (2024: £152,797,000). 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.
The following transaction costs, mainly comprising brokerage commissions, were incurred during the year:
2025
£’000
2024
£’000
On acquisitions 159 102
On disposals 308 278
467 380
11. Current assets
Receivables
2025
£’000
2024
£’000
Dividends and interest receivable 2,720 2,962
Securities sold awaiting settlement 1,379 3,017
Other receivables 80 38
4,179 6,017
The directors consider that the carrying amount of receivables approximates to their fair value.
Cash and cash equivalents
Cash and cash equivalents comprises bank balances and cash held by the Company, including short-term deposits. The carrying
amount of these represents their fair value. Cash balances in excess of a predetermined amount are placed on short-term deposit at
market rates of interest.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
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12. Current liabilities
Payables
2025
£’000
2024
£’000
Bank loan 37,008 38,045
Securities purchased awaiting settlement 1,140 3,757
Repurchase of ordinary shares into treasury awaiting settlement – 405
Other payables and accruals 6,274 6,044
44,422 48,251
The bank loan comprises US$50 million drawn down on the Company’s £75 million multicurrency credit facility with the Bank of Nova
Scotia. The facility is secured and drawings are subject to covenants and restrictions which are customary for a facility of this nature and
all of these have been complied with.
Further details of the facility are given in note 20(a)ii on page 77.
The bank loan at the prior year end comprised US$50 million drawn down on the Company’s £100 million multicurrency credit facility
with Bank of Nova Scotia.
13. Share capital
2025
£’000
2024
£’000
Ordinary shares of 1p each, allotted, called-up and fully paid:
Opening balance of 241,798,024 (2024: 253,193,024) shares, excluding shares held in treasury 159,222 188,229
Repurchase of 12,641,616 (2024: 11,395,000) shares into treasury (34,693) (29,007)
Subtotal of 229,156,408 (2024: 241,798,024) shares, excluding shares held in treasury 124,529 159,222
42,076,616 (2024: 29,435,000) shares held in treasury 109,818 75,125
Closing balance of 271,233,024 (2024: 271,233,024) shares 234,347 234,347
The ordinary shares rank pari passu, and each share carries one vote in the event of a poll at a general meeting. The Company has
authority to issue an unlimited number of ordinary shares.
During the year, the Company repurchased 12,641,616 of its own shares, nominal value £126,416 to hold in treasury for a total
consideration of £34,693,000 representing 5.2% of the shares outstanding at the beginning of the year. The reason for these share
purchases was to seek to manage the share price discount to net asset value per share.
14. Reserves
Capital reserves
Share
capital
£’000
Treasury
share
reserve
£’000
Capital
redemption
reserve
£’000
Special
reserve
£’000
Gains and
losses on
sales of
investments
£’000
Investment
holding
gains and
losses
£’000
Revenue
reserve
£’000
At 1 September 2024 234,347 (75,125) 39 150,374 224,688 130,473 35,519
Gains on sales of investments based on the carrying
value at the previous balance sheet date – – – – 755 – –
Movement in investment holding gains and losses – – – – – 74,180 –
Transfer on disposal of investments – – – – 30,098 (30,098) –
Realised exchange losses on cash and short-term
deposits – – – – (233) – –
Exchange gains on foreign currency credit facility – – – – – 1,036 –
Repurchase of ordinary shares into treasury – (34,693) – – – – –
Management fee, finance costs and other expenses
charged to capital – – – – (4,223) – –
Performance fee charged to capital – – – – (4,759) – –
Dividends allocated to capital – – – – 725 – –
Dividends paid in the year – – – – – – (28,023)
Net return after taxation – – – – – – 27,015
At 31 August 2025 234,347 (109,818) 39 150,374 247,051 175,591 34,511
Section 5: Financials
73
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Capital reserves
Share
capital
£’000
Treasury
share
reserve
£’000
Capital
redemption
reserve
£’000
Special
reserve
£’000
Gains and
losses on
sales of
investments
£’000
Investment
holding
gains and
losses
£’000
Revenue
reserve
£’000
At 1 September 2023 234,347 (46,118) 39 150,374 218,977 53,724 36,865
Gains on sales of investments based on the carrying
value at the previous balance sheet date – – – – 9,716 – –
Movement in investment holding gains and losses – – – – – 79,992 –
Transfer on disposal of investments – – – – 4,657 (4,657) –
Realised exchange losses on cash and short-term
deposits – – – – (148) – –
Exchange gains on foreign currency credit facility – – – – – 1,414 –
Repurchase of ordinary shares into treasury – (29,007) – – – – –
Management fee, finance costs and other expenses
charged to capital – – – – (4,472) – –
Performance fee charged to capital – – – – (4,552) – –
Dividends allocated to capital – – – – 510 – –
Dividends paid in the year – – – – – – (29,282)
Net return after taxation – – – – – – 27,936
At 31 August 2024 234,347 (75,125) 39 150,374 224,688 130,473 35,519
Under the Companies (Guernsey) Law 2008, the Company may buy back its own shares, or pay dividends, out of any reserves,
subject to passing a solvency test. This test considers whether, immediately after the payment, the Company’s assets exceed its
liabilities and whether it will be able to pay its debts when they fall due.
1
5. Net asset value per share
2025 2024
Total equity shareholders’ funds (£'000) 732,095 700,315
Shares in issue at the year end 229,156,408 241,798,024
Net asset value per share (pence) 319.47 289.63
16. Contingent liabilities and capital commitments
There were no contingent liabilities or capital commitments at the balance sheet date (2024: none).
17. Transactions with the Manager
The Company has appointed Schroder Unit Trusts Limited (“the Manager”), a wholly owned subsidiary of Schroders plc, to provide
investment management, accounting, secretarial and administration services. Details of the management and performance fee
agreement are given in the Directors’ Report on page 42. The management fee payable in respect of the year amounted to £4,875,000
(2024: £4,763,000), of which £1,300,000 (2024: £1,241,000) was outstanding at the year end. The company secretarial fee payable
to the Manager amounted to £150,000 (2024: £150,000) of which £37,500 (2024: £37,500) was outstanding at the year end. The
performance fee payable in respect of the year amounted to £4,759,000 (2024: £4,552,000) is payable in respect of the year and the
whole of this amount was outstanding at the year end.
If the Company invests in funds managed or advised by the Manager or any of its associated companies, any fee earned by the
Manager from those funds is deducted from the management fee payable by the Company. There have been no such investments
during the current or comparative year.
18. Related Party transactions
Details of the remuneration payable to directors are given in the Directors’ Remuneration Report on page 54 and details of Directors’
shareholdings are given in the Directors’ Remuneration Report on page 55. 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 Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
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19. Disclosures regarding financial instruments measured at fair value
The Company’s portfolio of investments, which may comprise investments in equities, equity linked securities, government bonds and
derivatives, are carried in the balance sheet at fair value. Other financial instruments held by the Company may comprise amounts due
to or from brokers, dividends and interest receivable, accruals and cash at bank.
For these instruments, the balance sheet amount is a reasonable approximation of fair value.
The investments are categorised into a hierarchy comprising the following three levels:
Level 1 – valued using quoted prices in active markets.
Level 2 – valued by reference to valuation techniques using observable inputs other than quoted market prices included within Level 1.
Level 3 – valued by reference to valuation techniques using inputs that are not based on observable market data.
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value
measurement of the relevant asset.
Details of the valuation techniques used by the Company are given in note 1(c) on page 67.
At 31 August 2025, the Company’s investment portfolio was categorised as follows:
2025
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Investments in equities and equity linked securities 750,236 13,575 – 763,811
Total 750,236 13,575 – 763,811
Level 2 investments comprise one holding in Midea Group warrants 10/07/2026. There were no transfers between Levels 1, 2 or 3
during the year ended 31 August 2025.
2024
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Investments in equities and equity linked securities 719,252 16,355 – 735,607
Total 719,252 16,355 – 735,607
Level 2 investments comprise one holding in Midea Group warrants 10/07/2025. There were no transfers between Levels 1, 2 or 3
during the year ended 31 August 2024.
20. Financial instruments’ exposure to risk and risk management policies
The Company’s investment objective is to provide a total return for investors primarily through investments in equities and equity-
related investments, of companies which are based in, or which derive a significant proportion of their revenues from, the Asia Pacific
region and which offer attractive yields. In pursuing this objective, the Company is exposed to a variety of risks that could result in a
reduction in the Company’s net assets. These risks include market risk (comprising currency risk, interest rate risk and market price
risk), liquidity risk and credit risk. The directors’ policy for managing these risks is set out below. The Board coordinates the Company’s
risk management policy.
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 financial instruments are as follows:
• investments in equities and equity-related securities of companies in the Asia Pacific region which are held in accordance with the
Company’s investment objective;
• short-term receivables, payables and cash arising directly from its operations; and
• a multicurrency credit facility with Bank of Nova Scotia, the purpose of which is to assist in financing the Company’s operations.
(a) Market risk
The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices.
This market risk comprises three elements - currency risk, interest rate risk and market price risk. Information to enable an evaluation
of the nature and extent of these three elements of market risk is given in parts (i) to (iii) of this note, together with sensitivity 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) Currency risk
The majority of the Company’s assets, liabilities and income are denominated in currencies other than sterling, which is the Company’s
functional currency and the presentational currency of the financial statements. As a result, movements in exchange rates will affect the
sterling value of those items.
Section 5: Financials
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Management of foreign currency risk
The Manager monitors the Company’s exposure to foreign currencies and regularly reports to the Board. The Manager measures the
risk to the Company of the foreign currency exposure by considering the effect on the Company’s net asset value and income of a
movement in the rates of exchange to which the Company’s assets, liabilities, income and expenses are exposed.
Income denominated in foreign currencies is converted into sterling on receipt.
Foreign currency exposure
The fair value of the Company’s monetary items that have foreign currency exposure at 31 August are shown below. The Company’s
investments (which are not monetary items) have been included separately in the analysis so as to show the overall level of exposure.
2025
Japanese
yen
£’000
Hong Kong
dollars
£’000
Australian
dollars
£’000
Singapore
dollars
£’000
Taiwan
dollars
£’000
Thai
baht
£’000
US
dollars
£’000
Other
£’000
Total
£’000
Current assets – 380 681 422 528 – 780 1,854 4,645
Current liabilities – – – – – – (37,008) – (37,008)
Foreign currency exposure on net
monetary items – 380 681 422 528 – (36,228) 1,854 (32,363)
Investments held at fair value through
profit or loss
1
2,008 176,858 102,504 106,200 174,537 8,800 13,575 150,221 734,703
Total net foreign currency exposure 2,008 177,238 103,185 106,622 175,065 8,800 (22,653) 152,075 702,340
2024
Japanese
yen
£’000
Hong Kong
dollars
£’000
Australian
dollars
£’000
Singapore
dollars
£’000
Taiwan
dollars
£’000
Thai
baht
£’000
US
dollars
£’000
Other
£’000
Total
£’000
Current assets – 2,770 2,117 651 2,774 – 521 374 9,207
Current liabilities – (2,290) (1,128) – – – (38,045) (740) (42,203)
Foreign currency exposure on net
monetary items – 480 989 651 2,774 – (37,524) (366) (32,996)
Investments held at fair value through
profit or loss
1
7,986 132,790 110,040 111,422 163,787 7,977 16,355 154,185 704,542
Total net foreign currency exposure 7,986 133,270 111,029 112,073 166,561 7,977 (21,169) 153,819 671,546
1
Excluding any stocks priced in sterling.
The above year-end amounts are broadly representative of the exposure to foreign currency risk during the current and comparative
year.
Foreign currency sensitivity
The following tables illustrate the sensitivity of net profit for the year and net assets with regard to the Company’s monetary financial
assets and financial liabilities and exchange rates. The sensitivity analysis is based on the Company’s monetary currency financial
instruments held at each balance sheet date and assumes a 10% (2024: 10%) appreciation or depreciation in sterling against the
currencies to which the Company is exposed, which is considered to be a reasonable illustration based on the volatility of exchange
rates during the year.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
76
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If sterling had weakened by 10% this would have had the following effect:
2025
£’000
2024
£’000
Statement of Comprehensive Income - return after taxation
Net revenue return 3,024 3,101
Net capital (loss) (3,293) (2,415)
Total return after taxation (269) 686
Conversely if sterling had strengthened by 10% this would have had the following effect:
2025
£’000
2024
£’000
Statement of Comprehensive Income - return after taxation
Net revenue (loss) (3,024) (3,101)
Net capital return 3,293 2,415
Total return after taxation 269 (686)
In the opinion of the directors, the above sensitivity analysis with respect to monetary financial assets and liabilities is broadly
representative of the whole of the current and comparative year. The sensitivity of the Company’s investments to changes in foreign
currency exchange rates is subsumed into market price risk sensitivity on page 78.
(ii) Interest rate risk
Interest rate movements may affect the level of income receivable on cash deposits and the interest payable on variable rate
borrowings when interest rates are re-set.
Management of interest rate risk
Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The Company’s gearing policy is to limit
gearing to 25% where gearing is defined as borrowings used for investment purposes, less cash, expressed as a percentage of net
assets.
The possible effects on cash flows that could arise as a result of changes in interest rates are taken into account when the Company
draws on the credit facility. However, amounts drawn down on this facility are for short-term periods and therefore exposure to interest
rate risk is not significant.
Interest rate exposure
The exposure of financial assets and financial liabilities to floating interest rates, giving cash flow interest rate risk when rates are re-set,
is shown below:
2025
£’000
2024
£’000
Exposure to floating interest rates:
Cash and cash equivalents 8,527 6,942
Other payables: drawings on the credit facility (37,008) (38,045)
Total exposure (28,481) (31,103)
Cash deposits at call earn interest based on the Sterling Overnight Interest Average (“SONIA”) (2024: SONIA) rates.
The Company has arranged a £75 million credit facility with The Bank of Nova Scotia, effective from 29 July 2025. Interest is payable
at the aggregate of the compounded Risk Free Rate (“RFR”) for the relevant currency and loan period, 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 US$50.0 million (£37.0 million) for a one month period, at an interest rate of 5.26% per annum.
The Company had in place a £100 million credit facility with The Bank of Nova Scotia, for the period 1st September 2024 to 28th July
2025. At 31 August 2024, the Company had drawn down US$50.0 million (£38.0 million) for a one month period, at an interest rate of
6.38% per annum.
The above year-end amounts are not representative of the exposure to interest rates during the year as the level of cash balances and
drawings on the credit facility have fluctuated. The maximum and minimum net interest rate exposure during the year has been as
follows:
2025
£’000
2024
£’000
Maximum interest rate exposure during the year - net debt (37,867) (36,485)
Minimum interest rate exposure during the year - net debt (25,781) (22,131)
Section 5: Financials
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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 financial assets and financial liabilities. This level of change is
considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the
Company’s monetary financial instruments held at the balance sheet date with all other variables held constant.
2025 2024
Statement of Comprehensive Income – return after taxation
1.0%
increase
in rate
£’000
1.0%
decrease
in rate
£’000
1.0%
increase
in rate
£’000
1.0%
decrease
in rate
£’000
Net revenue (loss)/return (63) 63 (83) 83
Net capital (loss)/return (222) 222 (228) 228
Net total (loss)/return (285) 285 (311) 311
Net (liabilities)/assets (285) 285 (311) 311
In the opinion of the directors, this sensitivity analysis may not be representative of the Company’s future exposure to interest rate
changes due to fluctuations in the level of cash balances and drawings on the credit facility.
(iii) Market price risk
Market price risk includes changes in market prices which may affect the value of the Company’s 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 profile.
Market price risk exposure
The Company’s total exposure to changes in market prices at 31 August comprised the following:
2025
£’000
2024
£’000
Investments at fair value through profit or loss 763,811 735,607
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 19 and 20. This shows that the portfolio principally comprises investments
quoted on Asian stock markets. Accordingly there is a concentration of exposure to that region. However it should be noted that an
investment may not be entirely exposed to the economic conditions in its country of domicile or of listing.
Market price risk sensitivity
The following table illustrates the sensitivity of the net profit for the year and net assets to an increase or decrease of 20% (2024: 20%)
in the fair values of the Company’s equities. 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 equities, adjusting for changes in the management fee,
but with all other variables held constant.
2025 2024
Statement of Comprehensive Income – return after taxation
20%
increase
in fair value
£’000
20%
decrease
in fair value
£’000
20%
increase
in fair value
£’000
20%
decrease
in fair value
£’000
Net revenue (loss)/return (428) 428 (412) 412
Net capital return/(loss) 152,121 (152,121) 146,503 (146,503)
Total return/(loss) after taxation 151,693 (151,693) 146,091 (146,091)
(b) Liquidity risk
This is the risk that the Company will encounter difficulty in meeting its obligations associated with financial liabilities that are settled by
delivering cash or another financial asset.
Management of the risk
Liquidity risk is not significant as the Company’s assets comprise mainly readily realisable securities, which can be sold to meet funding
requirements if necessary. Short-term flexibility is achieved through the use of a credit facility.
The Board’s policy is for the Company to remain fully invested in normal market conditions and that the credit facility be used to
manage working capital requirements and to gear the Company as appropriate.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
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Liquidity risk exposure
Contractual maturities of financial liabilities, based on the earliest date on which payment can be required are as follows:
2025
Three
months
or less
£’000
2024
Three
months
or less
£’000
Other payables
Bank loan – including interest 37,008 38,251
Securities purchased awaiting settlement 1,140 3,757
Other payables and accruals 6,263 6,037
44,411 48,045
(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 managed as follows:
Portfolio dealing
The Company invests almost entirely in markets that operate a “Delivery Versus Payment” settlement process which mitigates the risk
of losing the principal of a trade during settlement. 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.
The Company may sometimes invest in equity-linked securities, such as low exercise price options, warrants, participatory notes and
depositary receipts, which provide synthetic equity exposure where the Company may otherwise find it problematic to invest in the
underlying assets directly. They have the same economic risks as a direct investment, except that there is a counterparty risk to the
issuing investment bank. Counterparties must be approved by the Manager’s Credit Risk Team based on a list of criteria and are
monitored on an ongoing basis by Schroders’ Portfolio Compliance Team.
Exposure to the custodian
The Custodian of the Company’s assets at the balance sheet date was HSBC Bank plc which has Long-Term Credit Ratings of AA- with
Fitch and A1 with Moody’s.
The Company’s investments are held in accounts which are segregated from the Custodian’s own trading assets. If the Custodian
were to become insolvent, the Company’s right of ownership of its investments is clear and they are therefore protected. However the
Company’s cash balances are all deposited with the Custodian as banker and held on the Custodian’s balance sheet. In accordance with
usual banking practice, the Company will rank as a general creditor to the Custodian in respect of cash balances and open currency
contracts.
Credit risk exposure
The following amounts shown in the balance sheet, represent the maximum exposure to credit risk at the current and comparative
year end.
2025 2024
Current assets
Balance
sheet
£’000
Maximum
exposure
£’000
Balance
sheet
£’000
Maximum
exposure
£’000
Receivables - dividends and interest 2,720 2,720 2,962 2,962
Securities sold awaiting settlement 1,379 1,379 3,017 3,017
Cash and cash equivalents 8,527 8,527 6,942 6,942
12,626 12,626 12,921 12,921
No items included in “Receivables” are past their due date and none have been provided for.
Section 5: Financials
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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
£’000
2024
£’000
Debt
Bank loan 37,008 38,045
Equity
Share capital 234,347 234,347
Reserves
497,748 465,968
732,095 700,315
Total debt and equity 769,103 738,360
The Company’s capital management objectives are to ensure that it will continue as a going concern and to maximise total return to its
equity shareholders through an appropriate level of gearing.
The Board’s policy is to limit gearing to 25%. Gearing for this purpose is defined as borrowings used for investment purposes, less cash,
expressed as a percentage of net assets.
2025
£’000
2024
£’000
Borrowings used for investment purposes, less cash 28,481 31,103
Net assets 732,095 700,315
Gearing 3.9% 4.4%
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 issuance of new shares or to reissue shares from treasury; 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
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 effective 3 October 2025.
As detailed in the Section 172 Report on page 32, following discussions regarding the fee structure, on 6 November 2025 the Board
and Manager agreed as follows:
• the performance fee will be terminated as of 31 August 2026;
• the cap on the total amount of any performance fee payable this year will be reduced to 0.55% of the net asset value payable,
calculated at the end of the relevant accounting period.
• a new marketing fee of £200,000 payable to the Manager will be introduced from the end of this current financial year; and
• the notice period in the AIFM agreement will be reduced from 12 to 6 months
There have been no other events we are aware of since the balance sheet date which either require changes to be made to the figures
included in the financial statements or to be disclosed by way of note.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 5: Financials
80
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Section 6: Other Information (Unaudited)
Annual General Meeting – Recommendations 82
Notice of Annual General Meeting 83
Explanatory Notes to the Notice of Meeting 84
Alternative Performance Measures and Glossary 85
Information about the Company 87
Risk Disclosures 89
81818181
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Section 6: Other Information (Unaudited)
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Annual General Meeting – Recommendations
The Annual General Meeting (“AGM”) of the Company will be held
on 3 December 2025 at 12.30 pm. The formal Notice of Meeting is
set out on page 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 financial adviser,
authorised under the Financial Services and Markets Act 2000.
If you have sold or transferred all of your ordinary shares in the
Company, please forward this document with its accompanying
form of proxy at once to the purchaser or transferee, or to the
stockbroker, bank or other agent through whom the sale or
transfer was effected, for onward transmission to the purchaser
or transferee.
Ordinary business
Resolutions 1 to 8 are all ordinary resolutions. Resolution 2
concerns the Directors’ Remuneration Report, on pages 53 to 55.
Resolutions 3 to 6 invite shareholders to elect and re-elect
directors for another year, following the recommendations
of the Nomination and Remuneration Committee, set out on
pages 51 and 52 (their biographies are set out on pages 40
and 41). Resolutions 7 and 8 concern the re-appointment and
remuneration of the Company’s auditors, discussed in the Audit
and Risk Committee report on pages 46 to 48.
Special business
Resolution 9 – approval of the Company’s dividend policy
(ordinary resolution)
In line with corporate governance best practice the Board
is putting the Company’s dividend policy to shareholders
for approval. No change to the Company’s dividend policy is
proposed at this time.
Resolution 10 – authority to make market purchases of the
Company’s own shares (special resolution)
At the AGM held on 3 December 2024, the Company was granted
authority to make market purchases of up to 35,611,447 ordinary
shares for cancellation or holding in treasury. As at 6 November
2025, 1,788,750 ordinary shares were bought back under this
authority and the Company therefore has remaining authority
to purchase up to 21,181,081 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 per share 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 6 November 2025 (excluding treasury shares). The
directors will exercise this authority only if the directors consider
that any purchase would be for the benefit of the Company
and its shareholders, taking into account relevant factors and
circumstances at the time. Any shares so purchased would be
cancelled or held in treasury for potential reissue. If renewed, 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 11 – disapplication of pre-emption rights
(extraordinary resolution)
The directors are seeking authority to allot a limited number of
unissued ordinary shares for cash without first offering them to
existing shareholders in accordance with statutory pre-emption
procedures.
An extraordinary resolution will be proposed at the forthcoming
AGM to authorise the directors to allot shares up to a maximum
aggregate nominal amount of £27,123,302.40 (being 10% of the
issued share capital excluding treasury shares as at 6 November
2025) and to give the directors authority to allot securities for
cash on a non pre-emptive basis up to a maximum aggregate
nominal amount of £27,123,302.40 (being 10% of the Company’s
issued share capital excluding treasury shares as at 6 November
2025).
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 and when it
should 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.
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 above resolutions and the other
resolutions to be proposed at the forthcoming AGM, as they
intend to do in respect of their own beneficial holdings.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
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Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Notice of Annual General Meeting
NOTICE is hereby given that the annual general meeting
of Schroder Oriental Income Fund Limited will be held on
3 December 2025 at 12.30 pm at 1 London Wall Place, London
EC2Y 5AU to consider and, if thought fit, to pass the following
resolutions, of which resolutions 1 to 9 will be proposed as
ordinary resolutions. Resolution 10 will be proposed as a
special resolution and resolution 11 will be proposed as an
extraordinary resolution:
1. To receive the Directors’ Report and the audited accounts 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 Sam Davis as a director of the
Company.
4. To approve the re-election of Alexa Coates as a director of the
Company.
5. To approve the re-election of Isabel Liu as a director of the
Company.
6. To approve the re-election of Nick Winsor as a director of the
Company.
7. To re-appoint PricewaterhouseCoopers LLP as the Company’s
auditors.
8. To authorise the directors to determine the remuneration of
PricewaterhouseCoopers LLP as auditors to the Company.
9. To approve the Company’s dividend policy as set out on page
28 of the Annual Report and Accounts.
10. To consider and, if thought fit, to pass the following resolution
as a special resolution:
“That the Company be and is hereby generally and
unconditionally authorised in accordance with section 315 of
The Companies (Guernsey) Law, 2008 (as amended), to make
market purchases of ordinary shares of 1p 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 hereby authorised to be
purchased shall be 40,657,830, representing 14.99% of
the issued share capital (ex treasury) as at 6 November
2025;
(b) the maximum price (exclusive of expenses) which may be
paid for a Share shall not exceed the higher of
(i) 105% of the average of the middle market quotations
for the Shares as taken from the London Stock
Exchange Daily Official List for the five business days
immediately 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 which may be paid for a Share is 1p,
being the nominal value per Share;
(d) the 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 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 held in treasury or
cancelled.”
11. To consider and, if thought fit, pass the following as an
extraordinary resolution:
“That the Board be and is hereby authorised in accordance
with Section 291 of The Companies (Guernsey) Law, 2008
(as amended) to allot ordinary shares for cash and/or sell
treasury shares up to 27,123,302 ordinary shares of 1p each
in aggregate, representing 10% of the share capital in issue
(excluding treasury shares) on 6 November 2025, for cash
and the right of shareholders to receive a pre-emptive offer
in respect of such ordinary shares shall be excluded pursuant
to Article 3.24 of the Company’s articles of incorporation,
provided that this authority shall expire (unless previously
renewed, varied or revoked by the Company in general
meeting) from the conclusion of the annual general meeting
of the Company to be held in 2026 save that the Board may
allot ordinary shares for cash or sell treasury shares after the
expiry of this authority in pursuance of an offer or agreement
made by the Company before such expiry that would or might
require ordinary shares to be allotted or treasury shares to be
sold after such expiry.”
By order of the Board
For and on behalf of
Schroder Investment Management Limited
Company Secretary
6 November 2025
Registered Office:
Level 3
Mill Court
La Charroterie
St. Peter Port
Guernsey GY1 1EJ
Registered Number: 43298
Section 6: Other Information (Unaudited)
83
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Explanatory Notes to the Notice of Meeting
1. An ordinary shareholder entitled to attend and vote at the
meeting is entitled to appoint one or more proxies to attend
and (insofar as permitted by the Company’s articles of
incorporation) to vote instead of him/her.
A proxy need not be a member. A form of proxy is enclosed
for ordinary shareholders which should be completed and
returned to the Company’s registrar, care of Computershare
Investor Services PLC, The Pavilions, Bridgwater Road, Bristol
BS99 6ZY, not later than 48 hours before the time fixed for
the meeting.
Completion of the proxy will not preclude an ordinary
shareholder from attending and voting in person.
To appoint more than one proxy, an additional proxy form(s)
may be obtained by contacting the Registrar’s helpline on
0370 707 4040 or you may photocopy this form. Please
indicate in the box next to the proxy holder’s name (see
reverse) the number of shares in relation to which they
are authorised to act as your proxy. Please also indicate by
marking the box provided if the proxy instruction is one of
multiple instructions being given. All forms must be signed
and should be returned together in the same envelope.
2. The biographies of each of the directors offering themselves
for re-election are set out on pages 40 and 41 of the annual
report and accounts for the year ended 31 August 2025.
3. As at 6 November 2025, the Company had 271,233,024
ordinary shares of 1p each in issue (43,865,366 shares were
held in treasury). Accordingly, the total number of voting rights
in the Company on 6 November 2025, was 227,367,658.
4. The Company’s privacy policy is available on its web pages
http://www.schroders.co.uk/orientalincome. Shareholders can
contact Computershare for details of how Computershare
processes their personal information as part of the AGM.
5. The ”Vote Withheld” option overleaf 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.
6. Pursuant to Regulation 41 of the Uncertificated Securities
(Guernsey) Regulations 2009, entitlement to attend and vote
at the meeting and the number of votes which may be cast
thereat will be determined by reference to the Register of
Members of the Company at close of business on the day
which is two days before the day of the meeting. Changes to
entries on the Register of Members after that time shall be
disregarded in determining the rights of any person to attend
and vote at the meeting.
7. To appoint one or more proxies or to give an instruction to
a proxy (whether previously appointed or otherwise) via the
CREST system, CREST messages must be received by the
issuer’s agent (ID number 3RA50) not later than two working
days before the time appointed for holding the meeting. For
this purpose, the time of receipt will be taken to be the time (as
determined by the timestamp generated by the CREST system)
from which the issuer’s agent is able to retrieve the message.
The Company may treat as invalid a proxy appointment sent by
CREST in the circumstances set out in Regulation 34(1) of the
Uncertificated Securities (Guernsey) Regulations 2009.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
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Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Alternative Performance Measures and Glossary
Net asset value (“NAV”) per share*
The NAV per share of 319.47p (2024: 289.63p) represents the net assets attributable to equity shareholders of £732,095,000 (2024:
£700,315,000) divided by the number of shares in issue of 229,156,408 (2024: 241,798,024).
The change in the NAV amounted to 10.3% (2024: 13.1%) 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 definitions are given below.
Total return*
The return on the share price or net asset value per ordinary share taking into account the rise and fall of share prices and the
dividends paid shareholders. Total return statistics enable the investor to make performance comparisons between investment
companies with different dividend policies. Any dividends received by a shareholder are assumed to have been reinvested in either the
assets of the Company at its NAV per share at the time the shares were quoted ex-dividend (to calculate the NAV per share total return)
or in additional shares of the Company (to calculate the share price total return).
The share price total return for the period ended 31 August 2025
is calculated as follows:
Opening share price at 31/8/24 269.00p
Closing share price at 31/8/25 303.50p
Dividend received XD date
Share price
on XD date Factor
Cumulative
Factor
6.00p 14/11/24 267.00p 1.0225 1.0225
2.00p 30/01/25 277.00p 1.0072 1.0299
2.00p 01/05/25 263.00p 1.0076 1.0377
2.00p 17/07/25 298.50p 1.0067 1.0446
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage change
in the opening share price: 17.9%
The share price total return for the period ended 31 August 2024
is calculated as follows:
Opening share price at 31/8/23 244.50p
Closing share price at 31/8/24 269.00p
Dividend received XD date
Share price
on XD date Factor
Cumulative
Factor
5.80p 16/11/23 243.00p 1.0239 1.0239
2.00p 01/02/24 241.00p 1.0083 1.0324
2.00p 25/04/24 256.00p 1.0078 1.0404
2.00p 18/07/24 278.50p 1.0072 1.0479
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage change
in the opening share price: 15.3%
The terms and performance measures below are those commonly used by investment
companies to assess values, investment performance and operating costs.
Some of the financial measures below are classified as Alternative Performance Measures as
defined by the European Securities and Markets Authority, and some numerical calculations are
given for those.
The NAV total return for the period ended 31 August 2025 is
calculated as follows:
Opening NAV at 31/8/24 289.63p
Closing NAV at 31/8/25 319.47p
Dividend received XD date
NAV on
XD date Factor
Cumulative
Factor
6.00p 14/11/24 285.64p 1.0210 1.0210
2.00p 30/01/25 294.56p 1.0068 1.0279
2.00p 01/05/25 275.00p 1.0073 1.0354
2.00p 17/07/25 312.79p 1.0064 1.0420
NAV total return, being the closing NAV, multiplied
by the factor, expressed as a percentage change
in the opening NAV: 14.9%
The NAV total return for the year ended 31 August 2024 is
calculated as follows:
Opening NAV at 31/8/23 256.01p
Closing NAV at 31/8/24 289.63p
Dividend received XD date
NAV on
XD date Factor
Cumulative
Factor
5.80p 16/11/23 257.58p 1.0225 1.0225
2.00p 01/02/24 256.89p 1.0078 1.0305
2.00p 25/04/24 274.13p 1.0073 1.0380
2.00p 18/07/24 292.21p 1.0068 1.0451
NAV total return, being the closing NAV, multiplied by the
factor, expressed as a percentage change in the opening
NAV: 18.2%
Section 6: Other Information (Unaudited)
85
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Discount/premium*
The amount by which the share price of an investment trust is
lower (discount) or higher (premium) than the NAV per share.
The discount or premium is expressed as a percentage of the NAV
per share.
The discount at the period end amounted to 5.0% (2024: 7.1%), as
the closing share price at 303.50p (2024: 269.00p) was lower than
the closing NAV of 319.47p (2024: 289.63p).
Gearing*
The gearing percentage reflects the amount of borrowings
(i.e. bank loans or overdrafts) which the Company has drawn
down and invested in the market. This figure is indicative of the
extra amount by which shareholders’ funds would move if the
Company’s investments were to rise or fall. Gearing is defined as:
borrowings used for investment purposes, less cash, expressed
as a percentage of net assets. The gearing figure at the year end
is calculated as follows:
2025
£’000
2024
£’000
Borrowings used for investment purposes,
less cash (£'000) 28,481 31,103
Net assets (£,000) 732,095 700,315
Gearing (%) 3.9% 4.4%
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 off hedges which satisfy certain strict criteria.
The leverage ratios and limits at 31 August 2025 are presented on
page 87 under shareholder’s information.
Ongoing Charges ratio*
Ongoing Charges is calculated in accordance with the AIC’s
recommended methodology and represents the management
fee and all other operating expenses excluding finance costs and
transaction costs, amounting to £6,160,000 (2024: £5,937,000),
expressed as a percentage of the average daily net asset values
during the period of £685,350,000 (2024: £671,034,000).
* Alternative Performance Measure.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
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Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Information about the Company
Web pages and share price information
The Company has dedicated web pages, which may be found
at www.schroders.co.uk/orientalincome. The web pages are
the Company’s primary method of electronic communication
with shareholders. They contain details of the Company’s share
price and copies of the annual report and accounts 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. There is also a section entitled “How to
Invest”.
The Company releases its NAV per share on both a cum and ex-
income basis to the market on a daily basis.
Share price information may also be found in the Financial Times
and on the Company’s web pages.
The Manager publishes monthly and quarterly updates on the
Company and other Schroders investment trusts, which may
be found under the “Literature” section on the Company’s web
pages.
The Association of Investment Companies
The Company is a member of the Association of Investment
Companies. Further information on the Association can be found
on its website, www.theaic.co.uk.
Individual Savings Account (ISA) status
The Company’s shares are eligible for stocks and shares ISAs.
Non-Mainstream Pooled Investments status
The Company currently conducts its affairs so that its shares can
be recommended by independent financial advisers 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
First interim dividend paid February
Second interim dividend paid May
Half year results announced April/May
Third interim dividend paid August
Financial year end 31 August
Annual results announced November
Fourth interim dividend paid November/December
Annual General Meeting December
Alternative Investment Fund Managers
Directive (AIFMD) disclosures
The AIFMD, as transposed into the FCA Handbook in the UK,
requires that certain pre-investment information be made
available to investors in Alternative Investment Funds (such as the
Company) and also that certain regular and periodic disclosures
are made. This information and these disclosures may be found
either below, elsewhere in this annual report, or in the Company’s
AIFMD information disclosure document published on the
Company’s web pages.
Leverage
The Company’s leverage policy and details of its leverage ratio
calculation and exposure limits as required by the AIFMD are
published on the Company’s web pages and within this report.
The Company is also required to publish periodically its actual
leverage exposures. As at 31 August 2025 these were:
% of net asset value
Leverage exposure Maximum Actual
Gross method 200% 108.8
Commitment method 200% 110.0
Illiquid assets
As at the date of this report, none of the Company’s assets are
subject to special arrangements arising from their illiquid nature.
Remuneration disclosures
Quantitative remuneration disclosures to be made in this annual
report in accordance with FCA Handbook rule FUND3.3.5 may be
found in the Company’s AIFMD information disclosure document
published on the Company’s web pages.
Publication of Key Information Document
(KID) by the AIFM
KIDs are designed to provide certain prescribed information
to retail investors, including details of potential returns under
different performance scenarios and a risk/reward indicator. The
Company’s KID is available on its web pages.
How to invest
There are a number of ways to invest easily in
the Company. The Manager has set these out at
www.schroders.com/invest-in-a-trust/.
Section 6: Other Information (Unaudited)
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Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Warning to shareholders
Companies are aware that their shareholders have received
unsolicited telephone calls or correspondence concerning
investment matters. These are typically from overseas-based
“brokers” who target UK shareholders, offering to sell them what
often turn out to be worthless or high risk shares or investments.
These operations are commonly known as “boiler rooms”. These
“brokers” can be very persistent and extremely persuasive.
Shareholders are advised to be wary of any unsolicited advice,
offers to buy shares at a discount or offers of free company
reports.
If you receive any unsolicited investment advice:
• Make sure you get the correct name of the person and
organisation
• Check that they are properly authorised by the FCA before
getting involved by visiting https://register.fca.org.uk
• Report the matter to the FCA by calling 0800 111 6768
or visiting https://fca.org.uk/consumers/report-scam-
unauthorised-firm
• Do not deal with any firm that you are unsure about
If you deal with an unauthorised firm, you will not be eligible
to receive payment under the Financial Services Compensation
Scheme.
The FCA provides a list of unauthorised firms of which it is aware,
which can be accessed at https://www.fca.org.uk/consumers/
unauthorised-firms-individuals#list.
More detailed information on this or similar activity can be found
on the FCA website at https://www.fca.org.uk/consumers/protect-
yourself-scams.
Dividends
Paying dividends into a bank or building society account helps
reduce the risk of fraud and will provide you with quicker access
to your funds than payment by cheque. Applications for an
electronic mandate can be made by contacting the Registrar. If
your dividend is paid directly into your bank or building society
account, you will receive an annual consolidated dividend
confirmation, which will be sent to you in September each year
at the time the interim dividend is paid. Dividend confirmations
are available electronically at investorcentre.co.uk to those
shareholders who have their payments mandated to their bank or
building society accounts and who have expressed a preference
for electronic communications.
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
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Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Risk Disclosures
Concentration risk The Company may be concentrated in a limited number of geographical regions, industry sectors,
markets and/or individual positions. This may result in large changes in the value of the Company, both up
or down.
Counterparty risk The Company may have contractual agreements with counterparties. If a counterparty is unable to fulfil
their obligations, the sum that they owe to the Company may be lost in part or in whole.
Currency risk If the Company’s investments are denominated in currencies different to the currency of the Company’s
shares, the Company may lose value as a result of movements in foreign exchange rates, otherwise known
as currency rates.
Derivatives risk Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to
manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than
the cost of the derivative and may result in losses to the Company.
Emerging markets &
frontier risk
Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty,
operational and liquidity risk than developed markets.
Gearing risk The Company may borrow money to make further investments, this is known as gearing. Gearing will
increase returns if the value of the investments purchased increase by more than the cost of borrowing,
or reduce returns if they fail to do so. In falling markets, the whole of the value in such investments could
be lost, which would result in losses to the Company.
Liquidity risk The price of shares in the Company is determined by market supply and demand, and this may be
different to the net asset value of the Company. In difficult market conditions, investors may not be able
to find a buyer for their shares or may not get back the amount that they originally invested. Certain
investments of the Company, in particular the unquoted investments, may be less liquid and more difficult
to value. In difficult market conditions, the Company may not be able to sell an investment for full value or
at all and this could affect performance of the Company.
Market risk The value of investments can go up and down and an investor may not get back the amount initially
invested.
Operational risk Operational processes, including those related to the safekeeping of assets, may fail. This may result in
losses to the Company.
Performance risk Investment objectives express an intended result but there is no guarantee that such a result will be
achieved.
Depending on market conditions and the macro economic environment, investment objectives may
become more difficult to achieve.
Share price risk The price of shares in the Company is determined by market supply and demand, and this may be
different to the net asset value of the Company. This means the price may be volatile, meaning the price
may go up and down to a greater extent in response to changes in demand.
Smaller companies risk Smaller companies generally carry greater liquidity risk than larger companies, meaning they are harder
to buy and sell, and they may also fluctuate in value to a greater extent.
Section 6: Other Information (Unaudited)
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Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600
Directors
Nick Winsor (Chair)
Alexa Coates
Sam Davis
Isabel Liu
Registered Office*
Level 3
Mill Court
La Charroterie
St. Peter Port
Guernsey GY1 1EJ
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
Telephone: 020 7658 6000
Email: AMCompanySecretary@schroders.com
Lending bank
The Bank of Nova Scotia, London Branch
201 Bishopsgate
London EC2M 3NS
Safekeeping and cashflow monitoring agent
HSBC Bank plc
8 Canada Square
London E14 5HQ
J.P. Morgan Europe Limited*
25 Bank Street
London
E14 5JP
Independent auditors
PricewaterhouseCoopers LLP
1 Embankment Place
London WC2N 6RH
Registrar
Computershare Investor Services (Guernsey) Limited
1st Floor
Tudor House
Le Bordage
St Peter Port
Guernsey GY1 1DB
Communications with shareholders are mailed to the address
held on the register. Any notifications and enquiries relating
to shareholdings, including a change of address or other
amendment should be directed to Computershare Investor
Services (Guernsey) Limited at the above address.
Corporate broker
Deutsche Numis
45 Gresham Street
London EC2V 7BF
Designated administrator
HSBC Securities Services (Guernsey) Limited
Arnold House
St Julian’s Avenue
St Peter Port
Guernsey GY1 3NF
J.P. Morgan Administration Services (Guernsey) Limited
†
Level 3
Mill Court
La Charroterie
St. Peter Port
Guernsey GY1 1EJ
Other Information
Shareholder enquiries
General enquiries about the Company should be addressed to
the Company Secretary.
Company Number
43298
(Registered in Guernsey as a company limited by shares)
Dealing codes
ISIN: GB00B0CRWN59
SEDOL: B0CRWN5
Ticker: SOI
Global Intermediary Identification Number (GIIN)
N3WFUT.99999.SL.826
Legal Entity Identifier (LEI)
5493001U9X6P8SS0PK40
Privacy notice
The Company’s privacy notice is available on its web pages.
Information about the Company
www.schroders.co.uk/orientalincome
* With effect from 3 October 2025
†
with effect from 21 October 2025
Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
90
Job No: 101719 Proof Event: 17 Black Line Level: 3 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report T: 0207 055 6500 F: 020 7055 6600
Job No: 101719 Proof Event: 17 Black Line Level: 3 Park Communications Ltd Alpine Way London E6 6LA
Customer: Schroders Project Title: Oriental Income Fund Annual Report T: 0207 055 6500 F: 020 7055 6600
Important information: This document is intended to be for information purposes
only and it is not intended as promotional material in any respect. The material
is not intended as an offer or solicitation for the purchase or sale of any financial
instrument. The material is not intended to provide, and should not be relied on for,
accounting, legal or tax advice, or investment recommendations. Information herein
is believed to be reliable but Schroders does not warrant its completeness or accuracy.
No responsibility can be accepted for errors of fact or opinion. Reliance should not
be placed on the views and information in the document when taking individual
investment and/or strategic decisions. Past performance is not a reliable indicator of
future results, prices of shares and the income from them may fall as well as rise and
investors may not get back the amount originally invested. Schroders has expressed
its own views in this document and these may change. Issued by Schroder Investment
Management Limited, 1 London Wall Place, London EC2Y 5AU, which is authorised and
regulated by the Financial Conduct Authority. For your security, communications may
be taped or monitored.
Schroder Investment Management Limited
1 London Wall Place, London EC2Y 5AU, United Kingdom
T +44 (0) 20 7658 6000
@schroders
schroders.com
Schroder Oriental Income Fund Limited
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Annual Report and Financial Statements 2025