Schroder Oriental Income Fund Limited ## Schroder Oriental Income Fund Limited | Annual Report and Financial Statements 2025 ### Annual Report and Financial Statements ### for the year ended 31 August 2025 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 ## 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. ### Scan this QR code on your smartphone camera ### to sign up to receive regular updates on ### 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. 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 # 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 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. ![img-0.jpeg](img-0.jpeg) 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. ![img-1.jpeg](img-1.jpeg) ![img-2.jpeg](img-2.jpeg) ![img-3.jpeg](img-3.jpeg) Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 1 ### Section 1: Overview ### Nanjing Road, Shanghai, China. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 2 Job No: 101719 Proof Event: 17 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA Job No: 101719 Proof Event: 17 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 ### Section 1: Overview ## Section 1: Overview Performance Summary 5 Chair’s Statement 6 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 3 Job No: 101719 Proof Event: 17 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA Customer: Schroders Project Title: Annual Report T: 0207 055 6500 F: 020 7055 6600 # Performance Summary At 31 August 2025 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. Net Asset Value (NAV) per share total return* +14.9% Year ended 2024: +18.2% Share price total return* +17.9% Year ended 2024: +15.3% Reference Index¹ +21.1% Year ended 2024: +16.4% Share price 303.50p Year ended 2024: 269.00p Share price discount to NAV per share* -5.0% Year ended 2024: -7.1% Dividend per share* 12.20p Year ended 2024: 12.00p Gearing* 3.9% Year ended 2024: 4.4% Ongoing charges ratio* 0.90% Year ended 2024: 0.88% * 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). Section 1: Overview ## Chair's Statement ![img-4.jpeg](img-4.jpeg) **Nick Winsor** “Your Company is well positioned to capture opportunities across the region through its focus on high quality businesses offering growing dividend income”. 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. 6 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 Section 1: Overview ## Cost savings – increasing shareholder value Following a thorough review of the potential advantages of changing the Company's depository 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 depository 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 available at https://www.schroders.events/SOI25 or by scanning the QR code: ![img-5.jpeg](img-5.jpeg) ## 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 7 ### Section 2: Investment Manager’s Review Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 8 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 ### Section 2: Investment Manager’s Review ## 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 9 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 2: Investment Manager's Review # Investment Manager's Review ![img-6.jpeg](img-6.jpeg) “We remain confident in our diversified portfolio of Asian companies’ potential to deliver attractive returns and growing dividends to shareholders over the long term” ## 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 ![img-7.jpeg](img-7.jpeg) 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 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. 10 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 2: Investment Manager’s Review Performance of the MSCI AC Pacific ex Japan net dividends reinvested Index in GBP and USD – 31 August 2024 to 31 August 2025 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 lower-cost large-language models (LLMs) would mean less need outperformance of Asian stock markets versus global indices for advanced new hardware, the US hyperscalers (eg. Google in the 12 months to end-August 2025. Firstly, given that many or Microsoft) have since reaffirmed their capital spending plans, Asian countries are major exporters to the US, Asian markets which is positive for the many Asian companies that play a vital had already lagged on President Trump’s election and while role in the AI supply chain. his initial “liberation day” tariff announcements caused a sharp The more positive view around China meant it was the best sell-off in equity markets globally – including the US itself – this performing market in the region over the year in review. However, proved short-lived, as row-backs and some deals suggested that market leadership was narrow, with the bulk of the return final tariff levels would not be as severe as first thought. This coming from a handful of large internet platform or information greater certainty arguably benefited the region more than others. technology companies, including Tencent, Alibaba and Xiaomi, Secondly, US dollar weakness is usually positive for Asian equities which are not just among the biggest stocks in China, but also from a liquidity standpoint, which has acted as an additional occupy top 10 positions in regional Asian indices. With the tailwind for markets during 2025. Thirdly, there is growing biggest Asian companies making up ever more of the index, comfort that China’s economy is stabilising, or at the very least is and with these stocks also among the best performers, it was a no longer getting worse. As the region’s major power, even patchy more difficult backdrop for any active fund manager to achieve and underwhelming stimulus measures can play an important outperformance. In our case, the Company’s investment strategy role in supporting sentiment, which had been particularly fragile means there needs to be an income rationale for any stock to be at the start of the review period. Finally, the artificial intelligence included in the portfolio, and we are therefore unlikely to own (AI) juggernaut righted itself after a brief wobble early in 2025, these low-yielding Chinese giants unless they radically change caused by the release of the Chinese-developed DeepSeek their distribution policies. chatbot. While initial concerns centred around the possibility that Narrow markets Rebased to 100 130 1 2 Market has become more concentrated Percentage of stocks outperforming the index % 125 28 120 25 60% 50% 115 22 110 19 40% 105 16 30% 100 13 95 10 20% 90 | | 2005 | 2007 | | 2009 | 2011 | | 2013 | 2015 | 2017 | 2019 | 2021 | 2023 | 2025 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 2017 | 2018 | 2019 | 2020 2021 | 2022 | 2023 | 2024 | 2025 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Jan 2 5 | | | | | | | | | | | | Jun 25 | | Jul 2 5 | | | | | | | | | Au g 24 | Weight of largest 5 stocks in the MSCI AC Asia Pacific ex Japan index | | Sep 24 | | Oct 24 | | Nov 24 | | Dec 24 | | | Feb 25 | Mar 2 5 | | | Ap r 25 | | | | May 2 5 | | | | | | | | Au g 25 | | | | | | | | Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | YTD 08- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 11 11 | | 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 | | | | | | MSCI AC Pacific ex Japan Net USD MSCI AC Pacific ex Japan Net GBP | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 Source: Thompson Datastream as at 31 August 2025. not be viewed as a recommendation to buy or sell. 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 2: Investment Manager's Review 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 ![img-8.jpeg](img-8.jpeg) #### Sector returns in GBP ![img-9.jpeg](img-9.jpeg) 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: Schroder, 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. ### 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 12 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 2: Investment Manager’s Review strongly during the period, rising by some 27%. TSMC is a vital This sector was the largest contributor to relative performance, link in the AI supply chain, with a dominant market position in with both stock selection and our overweight positioning proving the manufacturing of the most cutting-edge chips. Detractors positive. included Samsung Electronics in Korea, along with chipmaker Positive contributions also came from stock selection in real United Microelectronics and power supply specialist Delta estate (the second largest overweight position relative to Electronics in Taiwan. the index), and being underweight healthcare and materials. The ASEAN markets (excluding Singapore) were a mixed Our lack of exposure to Chinese internet platforms and bag during the review period. Our one holding in Thailand – e-commerce companies contributed to underperformance in the Kasikornbank – did well, while an underweight position in Malaysia communication services and consumer discretionary sectors, proved beneficial, as did stock selection in the Philippines. while positioning in consumer staples proved a slight drag. As Vietnam – an off-Reference Index allocation – and Indonesia, an mentioned above stock selection in IT was a headwind. overweight position, both weighed on returns. Indonesian banks Across the year, our largest increases in country exposure were performed particularly poorly given the increased uncertainty in China, Hong Kong and India, while the largest reductions were around the new government’s policies, resulting in a drag from in Korea, Indonesia and Singapore. While some of these moves our positions in PT Bank Negara Indonesia and Bank Mandiri. (particularly in China, Korea and Indonesia) reflected market In sector terms, our largest allocation was to financials, where movements, we also made several changes to the portfolio during we have broad exposure that includes stock exchanges and the period. insurance companies, alongside the more traditional banks. Regional breakdown of portfolio ex gearing* *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 Other notable new holdings include Taiwanese IT company maker CATL, sportswear specialist Anta Sports and premium Largan Precision, which makes precision optical plastic lenses alcoholic beverage firm Kweichow Moutai. We discussed Anta for smartphones, tablets, laptops and more, the Malaysian Sports and Kweichow Moutai in the half-year report, but in brief, bank CIMB, and the Hong Kong-listed but Macau-based casino both are beneficiaries of the trend towards home-grown rather operator Galaxy Entertainment. than international brands, and both are quality businesses whose We also added to existing positions across a range of countries shares we were able to buy at relatively attractive valuations, and sectors, including real estate (China Resources Land and given lingering concerns over China’s economic recovery and two Singapore REITs under the CapitaLand umbrella), pan-Asian its consumers’ willingness to spend. CATL is a global leader in insurer AIA, Taiwanese tech companies Hon Hai Precision Industry rechargeable lithium ion batteries for electric vehicles and energy and ASE Technology as well as Korean carmaker Kia Corporation storage systems. Its competitive advantage lies in its scale and and Chinese clothing manufacturer Shenzhou International. 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 Although financials remain our largest sector weighting, we Information Technology Taiwan attractive dividend. reduced our exposure and exited several positions during the Australia Bank s year. These included two stock exchange operators, Singapore During the year we also initiated an allocation to India, a country China Communication Services Exchange (sold following outperformance) and the Australian where we previously had no exposure and which is not included Singapore ASX, where we felt the investment thesis had weakened. Other Other Financials in the Reference Index. This included Power Grid Corporation Hong Kong exits included a trio of banks – PT Bank Negara Indonesia, the of India, which as the name suggests is a utility company, and Real Estate Australian bank Westpac and Korean financial KB Financial Group. Korea stands to benefit from the growth in transmission capacity of Consumer Discretionary India Other reductions in financials included SMFG in Japan and UOB in the Indian electricity network, with renewable solar and wind Singapore. Consumer Staples projects needing to be linked into the wider grid. While the Indian In done si a equity market remains highly valued, we were able to buy into the Philippines Materials position following a market sell-off earlier in the year. Thailand In dustrials Malaysia Ut ilities Vietnam Ener gy Japan Health Care New Zealand Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 0% 5% 10% 15% 20% 25% 30% 0% 5% 10% 15% 20% 25% 30% 35% 40% 13 13 Portfolio Weight MSCI AC Pacific ex Japan Weight Portfolio Weight MSCI AC Pacific ex Japan Weight 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 2: Investment Manager's Review 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* ![img-10.jpeg](img-10.jpeg) *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 ![img-11.jpeg](img-11.jpeg) ### Near term frontloading of exports to beat tariffs ![img-12.jpeg](img-12.jpeg) 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 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. 14 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 2: Investment Manager’s Review 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 A further impact of the new US administration’s policies has been expectations. Dollar weakness has historically been supportive a weakening in the dollar, in part as a result of debt-funded fiscal for Asian equity markets, and this can be observed in the region’s stimulus swelling the government balance sheet together with performance in 2025. concerns around US exceptionalism and declining interest rate Softer US dollar historically supportive backdrop for Asian markets Within the region, the Chinese economy remains weak, as So with China’s domestic and external sectors both facing consumer confidence is still extremely low. Although the challenges, we remain underweight the market, though this government has announced some measures to support the is offset to an extent by our overweight to Hong Kong. Our economy, these remain quite small in scale and are unlikely to structural concerns around China’s demographics and economic drive up growth significantly in the face of a still-contracting model, with its overreliance on manufacturing and exports, property market and declining private credit extension. The remain and are unlikely to be addressed by short-term stimulus. Chinese and Hong Kong markets have benefited from investor IT remains an overweight sector for us, but one which we have hopes that the government would soon start to address some moderated as stocks there have rallied hard on the AI theme, with Global trade dominance: US vs China of the structural over-supply/competition concerns across froth being seen in some areas. Although earnings momentum various industrial sectors. Going by the rather confusing name remains strong, several Asian IT stocks look vulnerable to a of “anti-involution” policy, the idea is that companies will be correction should there be any disruption to the narrative of asked to rein in excessive price discounting and moderate their growing AI datacentre capital expenditure. For now, however, there capacity expansion in industries where supply already exceeds is little sign of such a slowdown from the US companies leading natural demand. While in many cases this would be welcome, it’s the investment, despite limited evidence of enterprise or consumer important to bear in mind two caveats. willingness to spend significant sums of money on AI services. Firstly, it is harder for the government to control the actions of With much of the strong Asian market performance this year a the private sector than state-owned enterprises. Secondly, and result of multiple re-rating, rather than improved earnings, the perhaps more significantly, the economy in China is likely to face resultant aggregate valuations no longer look cheap, with the headwinds in the second half as exports slow down. As a result, market trading above long-term averages on measures such as any supply-side reforms, which inevitably cause disruption to jobs the price/earnings (P/E) ratio. However, the region as a whole or incomes, will be harder for the economy to absorb without remains attractively valued compared to developed markets and, threatening the government’s overall stated GDP growth target. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 15 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. 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 2: Investment Manager’s Review as we go forward, we would expect underlying earnings to start potentially resulting in some of the frothier areas of the market to be a bigger driver of share prices. This may see the market taking a breather. broaden out from the narrow focus it has had so far this year, Asian aggregate valuations relatively attractive in a global context – less so against own history Turning to dividends, as the US dollar has weakened, the pound Company’s income discipline is a critical part of the investment has become stronger, which is a headwind for the Company’s proposition, delivering both an attractive yield and an important dividend income given our accounting currency is sterling. source of diversification for investors who may already be highly However, the dividend yields of many Asian markets remain exposed to the domestic UK market. Focusing on companies attractive in a global context, and as a region the average payout that are able to reward their shareholders with dividends means and gearing ratios remain low versus other markets, which should prioritising balance sheet sustainability and good governance, hopefully translate into dividends being relatively resilient. The both features that should stand investors in good stead over time. Asian yield in context | | | | 1 | | MSCI AC Pacific ex Japan versus MSCI World relative | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Yield by region | | | | | Asia Pacific ex Japan versus Developed Markets relative | | | | | | | | | 1 | | 2 | | | | Asia Pacific ex Japan Historic Price / Earnings (P/E) (x) | | | | | dividend yield | | | | | | | Looking ahead, while challenges do remain – from tariff-related | | | | | Thank you for your continued trust in the Schroder Oriental | 2 | | | Dividend yield, % | | | | forward 12m consensus Price / Earnings (P/E) ratio | | | | x 4.0 disruption to structural imbalances in China – we remain 130% Income Fund. 175% confident in our diversified portfolio of Asian companies’ 120% 165% 3.5 | 30 25 | potential to deliver attractive returns and growing dividends to | | | | | --- | --- | --- | --- | --- | | | | 110% 155% | Richard Sennitt | | | 3.0 | shareholders over the long term. Whether through enabling | | | +1.S.D. | Portfolio Manager | 20 | the AI revolution, meeting the evolving needs of consumers, | 100% 145% | | | | | --- | --- | --- | --- | --- | --- | | 2.5 | | | | | Average | | | supporting the transition to a greener economy, or expanding | 90% 135% | | Schroder Investment Management Limited | | | 15 2.0 | financial services to an increasingly affluent population, our | 125% | | | | | | | 80% | | 6 November 2025 | | | | holdings are well positioned to benefit from the region’s dynamic | 115% | | | | | 1.5 | | 70% | | | | | 10 | growth. The Company’s income discipline continues to offer | | -1.S.D. | | | 105% 60% 1.0 investors a compelling blend of yield, resilience and diversification 95% 5 – qualities that have now underpinned 19 consecutive years of 50% 0.5 85% | | | | dividend growth since launch. | | | | | | | | | | | | | | 40% | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 1991 | 1993 | 1995 1997 | 1999 | 2001 | 2003 | 2005 | 2007 | 2009 | 2011 | 2013 | 2015 | 2017 | 2019 | 2021 | 2023 | | | 0.0 | | | | | | | | | | | | | | | | | 75% May-01 May-06 May-11 May-16 May-21 | Asia Pacific ex Japan price / earnings ratio UK Europe ex UK USA Japan Pacific ex Japan Jan-00 Jan-03 Jan-06 Jan-09 Jan-12 Jan-15 Jan-18 Jan-21 Jan-24 MSCI AC Asia Pacific ex Japan/World +12m P/E Average Average - 10 years 31 August 2025 Average Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 +/-1 stan dard deviation MSCI AC PxJ/World 12m trailing DY (%) ## 16 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 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. the amounts originally invested. The return may increase or decrease as a result of currency fluctuations. Source: Source: 1 1 Factset, MSCI as at 31 August 2025. Pacific ex Japan is based on MSCI AC Pacific ex Japan. 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, 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. 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. Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 ### Section 2: Investment Manager’s Review ## Top 10 Investments At 31 August 2025 ## 1 ### TSMC Market: Taiwan Sector: Information Technology Portfolio exposure: £87,888,000 % of portfolio: 11.5% 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. ## 2 3 4 ### Samsung Electronics Singapore Hon Hai Precision Industries ### Telecommunications | Market: South Korea | Market: Singapore | | | Market: Taiwan | | --- | --- | --- | --- | --- | | Sector: Electronics | Sector: Telecommunications | | | Sector: Electronics | | Portfolio exposure: £38,443,000 | Portfolio exposure: £31,318,000 | | | Portfolio exposure: £26,503,000 | | % of portfolio: 5.0% | % of portfolio: 4.1% | | | % of portfolio: 3.5% | | Samsung Electronics is a Korean | Singapore Telecommunications is a leading | | | Hon Hai Precision Industry Co., Ltd., | | semiconductor and electronics | telecommunications company based in | | | known as Foxconn, is a leading Taiwan- | | manufacturing company. Its key products | Singapore. As well as being the leading | | | based multinational electronics contract | | include semiconductors (logic and memory | player in Singapor | e it also owns the | | manufacturer. It is known for assembling | | chips), mobile phone handsets, consumer | number 2 player in Austr | | alia, Optus, as well | a significant portion of Apple’s products, | | electronics, and home appliances. As well | as having a number of stakes in mobile | | | including the iPhone. Its server | | as being one of the leading players in both | operators across the region including | | | manufacturing business is growing | | volatile and non-volatile memory, Samsung | in Indonesia and India. Management | | | rapidly and is benefiting from the demand | | is one of only a handful of companies in | has been focused on improving core | | | for high-end servers needed for AI | | the world able to manufacture the more | operations whilst unlocking value by | | | applications. | | advanced logic chips at scale. | allocating capital more efficiently. | | | | Logos are the property of their respective entities. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 17 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 2: Investment Manager’s Review ## 5 6 7 ### Oversea-Chinese Banking BOC Hong Kong Midea Group | Market: Singapore | Market: Hong Kong | Market: China | | --- | --- | --- | | Sector: Financials | Sector: Financials | Sector: Consumer appliances | | Portfolio exposure: £25,326,000 | Portfolio exposure: £22,338,000 | Portfolio exposure: £22,290,000 | | % of portfolio: 3.3% | % of portfolio: 3.0% | % of portfolio: 2.9% | | OCBC is a Singaporean financial services | Bank of China Hong Kong is a leading | Midea Group is a Chinese corporation, | | provider, offering banking, insurance, | financial services provider based in | with a global presence, specialising | | asset management, and stockbroking | Hong Kong serving individual and | in consumer appliances and HVAC | | services. The group operates across Asia | corporate clients with products like | (heating, ventilation, and air conditioning) | | and also owns a stake in China’s Bank of | loans, mortgages, credit cards, foreign | systems. It produces air conditioners and | | Ningbo. The group offers private banking | exchange, and insurance. As a major | refrigerators as well as offering robotics | | services through its Bank of Singapore | subsidiary of Bank of China, BOCHK plays | and industrial automation solutions aimed | | subsidiary. | a pivotal role in facilitating trade and | at enhancing manufacturing efficiency. | 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. • ## 8 9 10 ### DBS Telstra MediaTek | Market: Singapore | Market: Australia | Market: Taiwan | | | --- | --- | --- | --- | | Sector: Financials | Sector: Telecommunications | Sector: Industrials | | | Portfolio exposure: £22,262,000 | Portfolio exposure: £21,583,000 | Portfolio exposure: £19,836,000 | | | % of portfolio: 2.9% | % of portfolio: 2.8% | % of portfolio: 2.6% | | | DBS is a financial services group | Telstra is Australia’s largest | MediaTek Inc is a Taiwanese company | | | headquartered in Singapore. Its services | telecommunications and technology | engaged in the design and distribution of | | | include retail and corporate banking, | company. Its key products and services | semiconductor chips. Their products focus | | | wealth management, and capital | include mobile and fixed-line telephony, | on mobile connectivity, for example, | | | markets solutions. Renowned for its | broadband internet, pay television, and | 5G mobile communication chips, as well | | | digital innovation and customer-centric | digital entertainment. Telstra benefits | as Bluetooth and WiFi micr | ochips, and are | | approach, DBS has been recognised as | from its leading position in 5G and | mainly used in mobile phones, digital TVs, | | | one of the world’s best digital banks. The | operates in a market that has seen | PCs, home appliances, wearable devices, | | | bank operates across key markets in Asia, | consolidation. Management has also been | and Internet of Things de | vices. | | including China, India, Indonesia, and | focussed on improving efficiencies across | | | | Taiwan. | its business. | | | Logos are the property of their respective entities. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 18 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 ### Section 2: Investment Manager’s Review ## Investment Portfolio As at 31 August 2025 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. | | £’000 % | | £’000 % | | --- | --- | --- | --- | | Taiwan | | Hong Kong (SAR) | | | TSMC 87,888 11.5 | | BOC Hong Kong 22,338 3.0 | | | Hon Hai Precision Industries 26,503 3.5 | | Hong Kong Exchanges & Clearing 17,744 2.3 | | | MediaTek 19,836 2.6 | | AIA Group 17,141 2.3 | | | ASE Technology 15,502 2.0 | | HKT Trust and HKT 8,859 1.2 | | | Largan Precision 8,094 1.1 | | Link REIT^ 8,602 1.1 | | | Uni-President Enterprises 7,329 1.0 | | Swire Properties 7,072 0.9 | | | United Microelectronics 5,566 0.7 | | Galaxy Entertainment 5,582 0.7 | | | Chicony Electronics 3,819 0.5 | | Hang Lung Group 4,873 0.6 | | | Total Taiwan 174,537 22.9 | | Hang Lung Properties 3,383 0.4 | | Swire Pacific B 3,373 0.4 Australia Total Hong Kong (SAR) 98,967 12.9 Telstra 21,583 2.8 | National Australia Bank 14,939 1.9 | | | South Korea | | --- | --- | --- | --- | | | 1 | | Samsung Electronics (including preference | | Rio Tinto | | 14,820 1.9 | | 38,443 5.0 1 shares) BHP Billiton 14,288 1.9 Samsung Fire and Marine Insurance (including Coles Group 14,206 1.9 14,836 2.0 preference shares) ANZ Group 13,769 1.8 Kia Corporation 10,067 1.3 Suncorp 11,240 1.5 Total South Korea 63,346 8.3 Woodside Energy 7,850 1.0 Woolworths 6,962 0.9 India Sonic Healthcare 6,724 0.9 Power Grid Corporation of India 9,629 1.3 Orica 5,230 0.7 Indus Towers 6,181 0.8 Total Australia 131,611 17.2 Total India 15,810 2.1 China Indonesia 2 Midea Group warrants 10/07/26 A and H Shares 22,290 2.9 Bank Mandiri 7,440 1.0 NetEase 17,664 2.3 Telekomunikasi Indonesia 7,115 0.9 2 China Pacific Insurance 10,373 1.4 Total Indonesia 14,555 1.9 Contemporary Amperex Technology 10,131 1.3 2 Anta Sports Products 9,757 1.3 Philippines 2 Ping An Insurance H shares 9,202 1.2 International Container Terminal Service 9,298 1.2 2 Shenzhou International 8,851 1.1 Total Philippines 9,298 1.2 2 China Resources Land 8,146 1.1 Sany Heavy Industry A Shares 7,656 1.0 Thailand Kweichou Moutai 7,617 1.0 Kasikornbank NVDR* 8,800 1.2 2 China Petroleum & Chemical H shares 7,357 1.0 Total Thailand 8,800 1.2 China Yangtze Power 5,976 0.8 Total China 125,020 16.4 Malaysia CIMB 7,953 1.0 Singapore Total Malaysia 7,953 1.0 Singapore Telecommunications 31,318 4.1 Oversea-Chinese Banking 25,326 3.3 Vietnam DBS 22,262 2.9 Vietnam Dairy Products 5,706 0.7 CapitaLand Integrated Commercial Trust (REIT^) 12,425 1.6 Total Vietnam 5,706 0.7 CapitaLand Ascendas (REIT^) 11,028 1.5 United Overseas Bank 3,841 0.5 Total Singapore 106,200 13.9 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 19 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 2: Investment Manager's Review | | £'000 | % | | --- | --- | --- | | **Japan** | | | | Sumitomo Mitsui Financial Group | 2,008 | 0.3 | | **Total Japan** | **2,008** | **0.3** | | **Total Investments^{1}** | **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 depository receipts $^{1}$ REIT means real estate investment trust 20 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 2: Investment Manager’s Review ## 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) 0.9 0.9 (1.2) 0.4 (2.6) (3.4) (4.8) (4.5) (7.1) (5.0) to NAV per share (%) 1 Gearing (%) 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 2 Ongoing charges (%) 0.89 0.85 0.83 0.86 0.87 0.85 0.86 0.88 0.88 0.90 3 Performance 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. NAV and share price total returns over ten years to 31 August 2025 | 300 | | | | | | | | | | | 16 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 275 | | | | | | | | | | | 14 | | 250 | | | | | | | | | | | 12 | | 225 | | | | | | | | | | | 10 | | 200 | | | | | | | | | | | 8 | | 175 | | | | | | | | | | | 6 | | 150 | | | | | | | | | | | 4 | | 125 | | | | | | | | | | | 2 | | 100 | | | | | | | | | | | 0 | | | 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) | | | | | | | | | Source: Morningstar. Rebased to 100 at 31 August 2015. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 21 31 August 2015 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 2: Investment Manager's Review # Investment Process and Approach¹ ## 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 experience². 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 year³. 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. 22 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 2: Investment Manager’s Review TM Schroders’ sustainability practice has a history of over 20 years. Asia Context , which is the principal tool employed for the Today a team of more than 30 dedicated members of the Manager’s ESG analysis as it pertains to the Company’s Sustainable Investment team (as at September 2025) develop investments, captures the Manager’s ESG analysis in one template TM TM proprietary ESG tools, such as CONTEXT and SustainEx and using a stakeholder-based framework. It provides a clear and oversee ESG analysis across Schroders, supporting individual broad roadmap on the issues requiring engagement, helps investment teams, such as the Asian equities team. The carbon refresh the team’s focus on ROIC and enhances appreciation of footprint of the companies and the portfolio are monitored over the downside and upside risks to a company’s business model. TM time and the proprietary SustaineEx tool measures positive and negative externalities generated by the companies. The context framework Understanding how a company manages it relationships with stakeholders Employees Communities How do your employees perform? How What support do you offer your local motivated is your team? community? Have you committed to protect human rights? e r n a n v c o e G Suppliers Customers How exposed is your supply chain to How is your brand perceived? What’s ### disruption risks? How strong are your Company in your produce pipeline? supplier relationships? G e o c v e n r n a Environment Have you put in place an energy Regulators transition plan? Are you managing How competitive is your market? Are operating impacts? you paying a fair rate of tax? Source: Schroders. To enhance the Asia team’s ESG expertise in Asia, two members of In summary ESG analysis helps determine which companies are the Sustainable Investment team are based in the region, directly looked at, how the Manager assesses their durability and, hence, supporting the Asian capability and ensuring they are kept fully how they are valued. And while company valuations ultimately informed of the relevant output of the Sustainable Investment drive portfolio construction, ESG insights play a role in the team in London. investment process and may influence how Portfolio Managers size positions within a portfolio. Furthermore, the Manager’s ESG ESG analysis impacts the investment process in four ways: analysis is broad reaching and is not only concerned with the 1. Initial screening – ESG helps determine which companies are potential downside risks that are identified, but also the upside considered to be investable as part of an initial screening, return implications for stocks in which the Company invests. 1 which is in addition to Schroders’ group-wide exclusions . Active Ownership 2. Durability of earnings – ESG analysis helps the investment Schroders has a long history of active ownership, including team understand the impact ESG externalities may have on the engagement with companies on ESG related matters, for the past future earnings power of the business and the ROIC and SRC two decades. of the company. Direct company contact is an important component of the initial 3. Fair Value and recommendation – ESG is an indirect and direct due diligence and ongoing monitoring process. These regular input into the fair value estimate of a company; indirect to the engagements form an important aspect of the Manager’s role extent that a company’s SRC may influence the assumptions as stewards of clients’ capital and allows deployment of capital used in establishing the fair value estimate of a company; and in businesses with long-term sustainability of returns and direct, to the extent that the Manager may apply an additional shareholder value creation. explicit discount/premium to that fair value estimate. Corporate Governance analysts in the Sustainable Investment 4. Portfolio construction – ESG helps shape portfolio construction team will also work alongside investors and internal compliance and may influence how Portfolio Managers size positions. For and legal teams to vote all proxies where practically possible, example, poor ESG performance or heightened ESG risks may and to ensure the Manager’s voting activities comply with its ESG result in a decision to underweight a security, hold a smaller policy. 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. 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/ Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 23 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 3: Strategic Report Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 24 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 ### Section 3: Strategic Report ## Section 3: Strategic Report The Company 26 Stakeholder Engagement – Section 172 Report 31 Principal and Emerging Risks and Uncertainties 35 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 25 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 3: Strategic Report # The Company ## 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. ## 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. ![img-13.jpeg](img-13.jpeg) 26 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 3: Strategic Report ## Investment objective | The investment objective of the Company | and related stapled securities), warrants, | cannot be written over portfolio holdings | | --- | --- | --- | | is to provide a total return for investors | depository receipts, participation | representing in excess of 15% of gross | | primarily through investments in equities | certificates, guaranteed performance | assets. However, the Company may only | | and equity-related investments, of | bonds, convertible bonds, other debt | invest in derivatives for the purposes | | companies which are based in, or which | securities, equity-linked notes and similar | of efficient portfolio management. | | derive a significant proportion of their | instruments (whether or not investment | Investors should note that the types | | revenues from, the Asia Pacific region and | grade) which give the Company access | of equity-related investments listed in | | which offer attractive yields. | to the performance of underlying equity | this paragraph are not exhaustive of all | | | securities, particularly where the Company | of the types of securities and financial | | Investment policy | may be restricted from directly investing | instruments in which the Company may | | | in such underlying equity securities or | invest, and the Company will retain the | | The investment policy of the Company | where the Investment Manager considers | flexibility to make any investments unless | | is to invest in a diversified portfolio of | that there are benefits to the Company | these are prohibited by the investment | | investments, primarily equities and | in holding such investments instead of | restrictions applicable to the Company. | | equity-related investments, of companies | directly holding the relevant underlying | | Although the Company has the flexibility which are based in, or derive a significant equity securities. Such investments may to invest in bonds and preferred shares proportion of their revenues from, the Asia be listed or traded outside the Asia Pacific as described above, the intention of Pacific region. The portfolio is diversified region. Such investments may subject the the directors is that the assets of the across a number of industries and a Company to credit risk against the issuing Company which are invested (that is to say, number of countries in that region. The entity. The Company may also participate, which are not held in cash, money funds, portfolio may include government, quasi- subject to regulatory and tax implications, debt securities, interest bearing gilts or government, corporate and high-yield in debt-to-equity conversion programmes. treasuries) will predominantly comprise bonds and preferred shares. The Investment Manager may consider Asia Pacific equities and equity-related Equity-related investments which the writing calls over some of the Company’s investments. The Company is required to Company may hold include investments in holdings, as a low risk way of enhancing obtain the prior approval of the ordinary other collective investment undertakings the returns from the portfolio. The Board shareholders to any material change to its (including real estate investment trusts has set a limit such that covered calls published investment policy. ## Investment restrictions and spread of investment risk | Risk in relation to the Company’s | • invest, either directly or indirectly, or | | In the event of any breach of the | | --- | --- | --- | --- | | investments is spread as a result of the | | lend more than 20% (calculated at | investment restrictions applicable to the | | Manager monitoring the Company’s | | the time of any relevant investment | Company, shareholders will be informed | | portfolio with a view to ensuring that it | | or loan) of its gross assets to any | of the actions to be taken by the Manager | | retains an appropriate balance to meet | | single underlying issuer (including | by notice sent to the registered addresses | | the Company’s investment objective. In | | the underlying issuer’s subsidiaries or | of the shareholders in accordance with | | order to comply with the Listing Rules, | | affiliates); | the Company’s articles of incorporation | | the Company will not invest more than | | | or by an announcement issued through a | • invest more than 20% (calculated at the 10%, in aggregate, of the value of its regulatory information service approved time of any relevant investment) of its total assets (calculated at the time of any by the Financial Conduct Authority gross assets in one or more collective relevant investment) in other investment (“FCA”). No breaches of these investment investment undertakings which may companies or investment trusts which restrictions occurred during the year invest more than 20% of its gross are listed on the Official List of the ended 31 August 2025. The Investment assets in other collective investment Financial Conduct Authority (the “Official Portfolio on page 19 and the Investment undertakings; List”) (save to the extent that those Manager’s Review on pages 10 to 16 • invest more than 40% (calculated at investment companies or investment demonstrate that, as at 31 August 2025, the time of any relevant investment) trusts have stated investment policies to the portfolio was invested in • countries of its gross assets in another collective invest no more than 15% of their gross and in • different industry sectors within investment undertaking; | assets in other investment companies or | | | such countries. There were • holdings in | | --- | --- | --- | --- | | investment trusts which are listed on the | • expose more than 20% of its gross | | the portfolio at the year end. The Board | | Official List). Additionally, the Company will | | assets to the creditworthiness or | therefore believes that the objective | | not: | | solvency of any one counterparty; | of spreading investment risk has been | | | • invest in physical commodities; or | | achieved. | • invest more than 15% of its gross assets in other investment companies or • invest in derivatives except for investment trusts which are listed on the purposes of efficient portfolio the Official List; management. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 27 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 3: Strategic Report ## Status | The Company carries on business as | On 1 September 2020, following approval | that the Company will continue to conduct | | --- | --- | --- | | a Guernsey incorporated, Guernsey | by the Company’s shareholders at a | its affairs in a manner which will enable it | | Financial Services Commission authorised, | general meeting, the Company became | to retain this status. The Company is not a | | closed-ended investment company. Its | tax resident in the United Kingdom and | “close” company for taxation purposes. | | shares are listed and admitted to trading | since then it has been approved by HM | | It is not intended that the Company on the main market of the London Stock Revenue & Customs, by way of a one- should have a limited life, and the articles Exchange. The Company was added to the off application, as an investment trust of incorporation do not contain any FTSE 250 index on 17 September 2019. in accordance with section 1158 of the provisions for review of the future of the Corporation Tax Act 2010. It is intended Company at specified intervals. ## Key performance indicators (“KPIs”) The investment objective Share price discount/premium to Having already paid interim dividends The Board measures the development net asset value per share amounting to six pence per share, the and success of the Company’s business Board has declared a fourth interim The Board reviews the level of discount/ through achievement of the Company’s dividend of 6.20 pence per share premium to net asset value per share at investment objective, to provide a total for the year ended 31 August 2025, every Board meeting and is alert to the return for investors primarily through which is payable on 5 December 2025 value shareholders place on maintaining investments in equities in the Asia Pacific to shareholders on the register on as low a level of share price volatility as region, which is considered to be the most 21 November 2025. Thus, dividends for possible. significant key performance indicator for the year amount to 12.20 pence (2024: The Board actively used its buyback 12.00 pence) per share. This represents an the Company. authorities during the year under review increase of 1.7% over the rate of dividends Commentary on performance against the and agreed to request renewal of the payable in respect of the previous year. investment objective can be found in the authorities to issue and buyback shares as Chair’s Statement. Total dividends declared in respect of the described on page 82. year amount to £28,023,000, which is At each meeting, the Board considers 103.7% of the £27,015,000 revenue profit Ongoing charges a number of performance indicators to after taxation available for distribution. The Board reviews the Company’s ongoing assess the Company’s success in achieving Accordingly, the Company will carry charges to ensure that the total costs its investment objective. These are as forward £34,511,000 in revenue reserves. incurred by shareholders in the running follows: NAV total return; share price total However in accordance with accounting of the Company remain competitive when return; share price discount/premium standards, the fourth interim dividend measured against peer group funds. An to NAV per share; ongoing charges and amounting to £14,208,000 will not be analysis of the Company’s costs, including dividends payable. A number of these are accounted for until it is has been paid. management and performance fees, classed as APMs and their calculations are directors’ fees and general expenses, explained in more detail on pages 85 and Risk factors is submitted to each Board meeting. 86. In addition to the performance indicators Management and any performance fees The performance against these indicators set out above, the Board also monitors risk payable are reviewed at least annually. is reported in the Performance Summary factors relating to investment performance on page 5 and in the Strategic Report on on a quarterly basis. Dividends payable pages 26 to 30. It is the Board’s policy that, except for unforeseen circumstances, interim Net asset value and share price dividends on the Company’s ordinary | total return | shares will be declared in respect of | | --- | --- | | At each meeting, the Board reviews the | the quarters ended 30 November, | | performance of the portfolio in detail | 28 February, 31 May and 31 August in | | and discusses the views of the Portfolio | January, April/May, July and October/ | | Manager. | November each year. | Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 28 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 Section 3: Strategic Report ## 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 29 Section 3: Strategic Report # 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/. 30 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 3: Strategic Report ## 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 of the consequences of its decisions, and aims to maintain a employees, operations or premises and the Company’s functions reputation for high standards of business conduct and fair are outsourced to third parties. treatment among the Company’s shareholders. The Board identified its key stakeholders as the Company’s The table below explains how the directors have engaged shareholders, the Investment Manager, other service providers, with all stakeholders during the year, outlines the key activities investee companies and the Company’s lender as well as wider undertaken and the key decisions made by the Board. society and the environment. The Board takes a long-term view Shareholders | Significance | Engagement | 2024/25 application | | --- | --- | --- | | Continued shareholder support | AGM: The Company welcomes attendance and | At the AGM in 2024 questions and feedback | | and engagement are critical to | participation from shareholders at the AGM. | from shareholders were welcomed. The Board | | the continuing existence of the | Shareholders have the opportunity to meet | along with the Portfolio Manager look forward to | | Company and the delivery of its | the directors and the Investment Manager | meeting and interacting with shareholders at the | | long-term strategy. | and ask questions. The Board values the | AGM in December 2025. | feedback it receives from shareholders which The Company’s web pages host the Annual and is incorporated into Board discussions. Half Year Reports. Via the Company’s web pages Publications: The Annual and Half Year shareholders can subscribe to the Schroders results presentations, as well as monthly investment trusts newsletter to receive regular factsheets and the Portfolio Managers’ blog, updates on the Company. are available on the Company’s web pages The Manager and Portfolio Managers engaged with their availability announced via the with a number of the shareholders and investors London Stock Exchange. Daily NAV updates during the year and regular feedback was are also issued to provide shareholders with provided to the Board. transparent information on the Company’s portfolio. Feedback and/or questions received A number of promotional activities were from shareholders enable the Company to undertaken during the year including Portfolio evolve its reporting which, in turn, helps to Manager interviews, podcasts, webinars and deliver transparent and understandable coverage in key publications. updates. The Board continues to work with Kepler on Shareholder communication: The Company promoting the Company through its research communicates with shareholders periodically. notes which are published once a year following Investors are offered the opportunity to the publication of the Company’s annual results. meet the Chair, SID, or other Board members The Company’s corporate broker, Deutsche without using the Manager or Company Numis continues to provide a market in the Secretary as a conduit, by writing to the Company’s shares and provides feedback from Company’s registered office. The Board also investors to the Board. 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 31 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 3: Strategic Report Investment Manager | Significance | Engagement | 2024/25 application | | --- | --- | --- | | Engagement with the | Maintaining a close and constructive working | Representatives of the Manager, Investment | | Company’s Investment | relationship with the Investment Manager | Manager, including the Portfolio Manager, attend | | Manager is necessary to | is crucial as the Board and the Investment | each Board meeting to provide an update on the | | evaluate its performance | Manager both aim to continue to achieve | investment portfolio along with presenting on | | against the Company’s stated | consistent, long-term returns in line with the | macroeconomic issues. | | strategy and to understand any | investment objective. The Investment Manager | | The portfolio activities undertaken by the risks or opportunities this may attends all Board and certain Committee Investment Manager and the impact of decisions present. meetings in order to update the directors on affecting investment performance are set out in the performance of the investments and the The Investment Manager’s the Portfolio Manager’s Review on pages 10 to 16. implementation of the investment strategy performance is critical for and objective. The Board visited Singapore, Malaysia, and the Company to deliver Indonesia to meet the Investment Manager’s its investment strategy Important components in the Board’s team, review their regional expertise, investment successfully and meet its engagement with the Investment Manager approach, and ESG integration, and assess objective to achieve long-term are: operational capabilities and engagement capital growth by investing in • Encouraging open discussion with the practices. Asian companies. Investment Manager The Board regularly reviews the fees payable by | • Support and constructive challenge of the | the Company to ensure they remain competitive. | | --- | --- | | Investment Manager including the robust | It is conscious of the trend towards removal of | | negotiation of the Investment Manager’s | performance fees across the Investment Trust | | terms of engagement; and | sector and, as such, has been in discussion | | • Drawing on directors’ individual experience | with the Manager over time regarding the | | to support the Investment Manager by | performance fee component in the Company’s | | holding it to account regarding investment | fee structure. Consequently, on 6 November | | strategy, and challenging where necessary. | 2025, the Board and Manager agreed as follows: | | The Management Engagement Committee | • the performance fee will be terminated as of | | reviews the performance of the Manager, | 31 August 2026; | | its remuneration and the discharge of its | • the cap on the total amount of any | | contractual obligations at least annually. | 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 | Engagement | 2024/25 application | | --- | --- | --- | | In order to operate as an | The Board maintains regular contact with its key | The Board engages regularly with service | | investment trust with a | external providers, both through the Board and | providers both in one-to-one meetings and via | | premium listing on the London | Committee meetings, which service providers | regular written reporting. | | Stock Exchange, the Company | are periodically invited to attend, as well as | | Under delegated authority from the Board, the relies on a diverse range of outside of the regular meeting cycle. Their Management Engagement Committee reviewed advisers and service providers. advice, as well as their needs and views, are all material third-party service providers. The The Company ensures that routinely taken into account. The need to foster Board considered the ongoing appointments of the third parties to which the business relationships with key service providers its service providers to be in the best interests of services have been outsourced is central to directors’ decision-making as the the Company and its shareholders as a whole and complete their roles in line with Board of an externally managed investment will continue to monitor their progress in the year contractual arrangements and trust. ahead. expectation thereby supporting the Company. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 32 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 ### Section 3: Strategic Report Investee companies | Significance | Engagement | 2024/25 application | | --- | --- | --- | | The Board is committed to | The Investment Management team conducts | The Board received regular updates on | | responsible investing and | face-to-face and/or virtual meetings with the | engagement with investee companies from the | | actively monitors the activities | management teams of all investee companies | Investment Manager at its Board meetings. | | of investee companies through | to understand current trading and prospects | | During the year, the Investment Manager its delegation to the Investment for their businesses, and to ensure that their engaged with many of its investee companies and Manager. ESG investment principles and approach are voted at shareholder meetings. understood. During the year, the Board visited Singapore, The Investment Manager has discretionary Malaysia, and Indonesia, visiting several powers to exercise the Company’s voting portfolio companies alongside the Investment rights on resolutions proposed by the investee Manager’s team. This enabled the Board to companies within the Company’s portfolio. The gain direct insight into the operations, strategy, Investment Manager reports to the Board on and ESG practices of key investee companies, stewardship (including voting) issues and the and to observe how local economic and policy Board will question the rationale for voting developments are impacting portfolio holdings. decisions made. By active engagement and exercising voting rights, the Investment Manager actively works with companies to improve corporate standards, transparency and accountability. Lender | Significance | Engagement | 2024/25 application | | --- | --- | --- | | Ability to add leverage allows | The Manager manages the relationship with | During the year, gearing was regularly considered | | the Company to maximise | the Company’s lender and reports to the | and the facility with The Bank of Nova Scotia, | | return opportunities within | Board at each meeting on compliance with the | London Branch was amended and restated, on | | set risk parameters and take | loan covenants and also as and when required | expiration, in July 2025. | | advantage of the Investment | for renewals of terms or negotiation of loan | | | trust structure. | covenants. | | The Manager provides a monthly statement of compliance with the loan covenants to the lender. Wider society and the environment | Significance | Engagement | 2024/25 application | | --- | --- | --- | | Whilst strong long-term | The Board engages with the Investment | Further details of the ESG practices and the ESG | | investment performance is | Manager regularly at Board meeting in respect | policy can be found in the Investment Approach | | essential for an investment | of its ESG considerations on existing and new | and Process section of this Annual Report. | | trust, the Board recognises | investments. | | The Board receives regular reports from its that to provide an investment Manager and briefings from its corporate vehicle that is sustainable broker, auditors and the industry trade body (the over the long-term, both it Association of Investment Companies (“AIC”)) on and the Investment Manager changes to regulations which could impact the must have regard to ethical Company and its industry. Directors also attend and environmental issues that AIC events to keep up to date with industry trends impact society. Hence ESG and investor sentiment. considerations are integrated into the Investment Manager’s investment process and will continue to evolve. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 33 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 3: Strategic Report # 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. 34 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 3: Strategic Report ## Principal and Emerging Risks and Uncertainties ### 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. | This system assists the Board in | During the year, the Board discussed | a detailed review of the risks facing the | | --- | --- | --- | | determining the nature and extent of the | and monitored a number of risks which | Company and that the internal control | | risks it is willing to take in achieving the | could potentially impact the Company’s | environment continues to operate | | Company’s strategic objectives. | ability to meet its strategic objectives. | effectively. A full analysis of the financial | | | The Board receives updates from the | risks facing the Company is set out in | | Risk assessment and internal | Investment Manager, Company Secretary | note 20 to the financial statements on | | controls review by the Board | and other service providers on emerging | pages 75 to 79. | | Risk assessment includes consideration | risks that could affect the Company. The | | The Board considers that the risks set out of the scope and quality of the systems Board was mindful of the evolving global in the table below are the principal risks of internal control operating within environment during the year and the risks currently facing the Company to deliver its key service providers, and ensures posed by volatile markets and geopolitical strategy together with those actions taken regular communication of the results uncertainty. However, these are not factors by the Board and, where appropriate, of monitoring by such providers to the which explicitly impact the Company’s its Committees, to manage and mitigate Audit and Risk Committee, including the performance although they could those risks. | incidence of significant control failings | exacerbate existing risks. Where relevant | | | --- | --- | --- | | or weaknesses that have been identified | these have been incorporated in the | The “Change” column on the right | | at any time and the extent to which they | table below. Both the principal risks and | highlights at a glance the Board’s | | have resulted in unforeseen outcomes or | uncertainties and the monitoring system | assessment of any increases or decreases | | contingencies that may have a material | are also subject to robust review at least | in risk during the year after mitigation and | | impact on the Company’s performance or | annually. The last assessment took place in | management. The arrows in the change | | condition. | November 2025. | column show the risks as increased or | decreased or unchanged. Although the Board believes that it has a No significant control failings or robust framework of internal controls in weaknesses were identified from the place, this can provide only reasonable, Audit and Risk Committee’s ongoing risk and not absolute, assurance against assessment throughout the financial year material financial misstatement or loss and and up to the date of this report. The is designed to manage, not eliminate, risk. Board is satisfied that it has undertaken Risk Mitigation and management Change Strategy and competitiveness Investment strategy The Board periodically reviews the appropriateness The Company’s investment objectives may become of the Company’s investment mandate and long-term out of line with the requirements of investors, strategy, monitoring progress towards the Company’s resulting in a wide discount of the share price to stated objectives. Share price performance relative to underlying NAV per share. 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 35 ## Section 3: Strategic Report | 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. | ↔ | 36 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 3: Strategic Report Risk Mitigation and management Change Cyber and AI The growing use of Artificial Intelligence (AI) and AI and cyber risks have increased this year compared to digital investment platforms may present challenges last year, reflecting the rapid advancement and broader to the ongoing relevance of investment trusts, as adoption of artificial intelligence technologies. While well as the risk of certain roles being replaced by these developments offer significant opportunities, they AI technologies. In addition, the Company’s service also introduce new vulnerabilities. There has also been a providers face the risk of cyber attacks, which marked rise in both the frequency and sophistication of could result in the loss of personal or confidential cyber-attacks on organisations globally, including several information, unauthorised transactions, or disruptions highly publicised cases. These trends, together with to essential operations. 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 The Manager has fully integrated environmental, social, shareholders could be impacted by climate change. and governance (ESG) considerations – including climate There is growing interest from both investors and change – into the investment process and provides regulators in understanding how the Company’s regular updates on ESG engagement at board meetings. A investments and performance might be affected by comprehensive ESG policy is in place, details of which can climate change, as well as wider environmental, social, be found in the annual report. The Investment Manager and governance (ESG) considerations. 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 During the financial year ended 31 August 2025, the Board could result in the Company responding reactively conducted regular and systematic reviews of the Company’s rather than proactively, potentially affecting its long- risk profile, with particular attention to emerging risks. term sustainability and performance. 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 37 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 3: Strategic Report Risk assessment and internal Company’s income and expenditure Company was not viable on the basis of controls review by the Board projections and the fact that the these. Company’s investments comprise readily Risk assessment includes consideration The Board has assumed that the business realisable securities which can be sold to of the scope and quality of the systems model of a closed ended investment meet funding requirements if necessary. | of internal control operating within | | company, as well as the Company’s | | --- | --- | --- | | key service providers, and ensures | The directors have also considered a | investment objective, will continue to | | regular communication of the results | stress test which represents a severe but | be attractive to investors. The directors | | of monitoring by such providers to the | plausible scenario along with movement | also considered the beneficial tax | | Audit and Risk Committee, including the | in foreign exchange rates. This scenario | treatment the Company is eligible for as | | incidence of significant control failings | assumes a severe stock market collapse | an investment trust. If changes to these | | or weaknesses that have been identified | and/or exchange rate movements at the | taxation arrangements were to be made it | | at any time and the extent to which they | beginning of the five year period, resulting | would affect the viability of the Company | | have resulted in unforeseen outcomes or | in a 50% fall in the value of the Company’s | to act as an effective investment vehicle. | | contingencies that may have a material | investments and investment income and | | Based on the above the directors have impact on the Company’s performance or no subsequent recovery in either prices concluded that there is a reasonable condition. or income in the following five years. It is expectation that the Company will be able assumed that the Company continues to No significant control failings or to continue in operation and meet its pay an annual dividend in line with current weaknesses were identified from the liabilities as they fall due over the five year levels and that the borrowing facility Audit and Risk Committee’s ongoing risk period of their assessment. remains available and remains drawn, assessment which has been in place subject to the gearing limit. throughout the financial year and up Going concern to the date of this report. The Board is The Company’s investments comprise The directors have assessed the principal satisfied that it has undertaken a detailed highly liquid, large, listed companies risks, the impact of the emerging risks review of the risks facing the Company and so its assets are readily realisable and uncertainties and the matters and that the internal control environment securities and could be sold to meet referred to in the viability statement. continues to operate effectively. funding requirements or the repayment of The directors have not identified any the gearing facility should the need arise. material uncertainties relating to A full analysis of the financial risks facing There is no expectation that the nature of events or conditions that, individually or the Company is set out in note 20 to the the investments held within the portfolio collectively, may cast significant doubt accounts on pages 75 to 79. will be materially different in the future. on the Company’s ability to continue as Viability statement a going concern for the period assessed The operating costs of the Company are by the directors, being the period to The directors have assessed the viability predictable and modest in comparison 30 November 2026 which is at least of the Company over a five year period, with the assets and there are no capital 12 months from the date the financial taking into account the Company’s commitments foreseen which would alter statements were authorised for issue. | position at 31 August 2025 and | that position. Furthermore, the Company | | --- | --- | | 6 November 2025 and the potential impact | has no employees and consequently has | | of the principal risks and uncertainties it | no redundancy or other employment | By order of the Board faces for the review period. The directors related liabilities. have assessed the Company’s operational The Board reviews the performance of resilience and they are satisfied that the the Company’s service providers regularly, Schroder Investment Management Company’s outsourced service providers including the Manager, along with internal Limited will continue to operate effectively, controls reports to provide assurance Company Secretary following the implementation of their regarding the effective operation of 6 November 2025 business continuity plans. internal controls as reported on by A period of five years has been chosen their reporting accountants. The Board as the Board believes that this reflects also considers the business continuity a suitable time horizon for strategic arrangements of the Company’s key planning, taking into account the service providers. investment policy, liquidity of investments, The Board monitors the portfolio risk potential impact of economic cycles, profile, limits imposed on gearing, nature of operating costs, dividends and counterparty exposure, liquidity risk and availability of funding. This time period financial controls at its quarterly meetings. also reflects the average holding period of an investment. Although there continue to be regulatory changes which could increase costs or In its assessment of the viability of the impact revenue, the directors do not Company, the directors have considered believe that this could be sufficient to each of the Company’s principal risks and affect its viability. The Board also notes uncertainties detailed on pages 35 to 37 that certain geopolitical risks, if they and in particular the impact of a significant materialise, would have a serious effect fall in regional equity markets on the value on the viability of the Company, but that it of the Company’s investment portfolio. was not appropriate to conclude that the The directors have also considered the Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 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 ## 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 39 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 ## All directors are Isabel LiuNick Winsor ### non-executive and Independent non-executive Independent non-executive ### independent of the Chair director ### Manager. All directors Length of service: five years – appointed in Length of service: four years – appointed in ### are members of the Audit March 2020. November 2021. ### and Risk Committee, Experience: Nick is an independent Experience: Isabel has 25 years’ global ### the Management | | consultant and non-executive director. He has | experience investing equity in infrastructure. | | --- | --- | --- | | Engagement Committee | more than 35 years of retail and commercial | She started her investment career in Asia | | | banking experience with HSBC Group in a | with the US$1 billion AIG Asian Infrastructure | ### and the Nomination and | | number of international markets. He was | Fund. She was Managing Director of the Asia | | --- | --- | --- | | Remuneration Committee. | CEO of HSBC’s businesses in the Channel | Pacific investment business of John Laing plc. | | | Islands and Isle of Man, CEO and VP of HSBC | After relocating from Hong Kong to London, | | | Bank (Taiwan) Limited and a director of HSBC | she was Investment Director for the €1 billion | | | Bank Middle East Limited. Before this, he was | ABN AMRO Global Infrastructure Fund. Isabel | | | Head of Personal Financial Services for the | served on the boards of bodies representing | | | Asia Pacific Region. Nick is a non-executive | user and pension scheme investors in UK | | | director of Metro Bank plc and Metro Bank | infrastructure. Isabel is a non-executive | | | Holdings plc and a member of the latter’s | director of Utilico Emerging Markets Trust plc | | | Risk Oversight and Audit Committees. He | and Gresham House Energy Storage Fund | | | is also the senior independent director of | Plc. Isabel holds a BA in Economics from the | | | the States of Jersey Development Company, | Ohio State University, a Masters in Public | | | Chair of the Remuneration and Nomination | Policy from Harvard Kennedy School, and an | | | Committee and member of the Audit and Risk | MBA from the University of Chicago Booth | | | Committee. Nick is a non-executive director | School of Business. | of Bankers without Boundaries, a not for | profit investment bank, and iC2 Prephouse | Contribution to the Board and its | | --- | --- | | Limited, a charity that supports visually | Committees: With her extensive experience | | impaired children. He was awarded an MBE | of living and investing in the Asia Pacific | | in the Queen’s 2020 Birthday Honours list | region, and her work as Chair of the | | for services to the community. Nick holds a | Nomination and Remuneration Committee, | | Masters in Physics from Oxford University | Isabel contributes effectively to Board | | and is a Fellow of the Institute of Directors. | considerations of sustainability, governance | and strategy. Contribution to the Board and its Committees: Nick brings broad international Committee membership: Audit and Risk, experience in retail and commercial banking, Management Engagement and Nomination with expertise in executive leadership, risk and Remuneration Committees (Chair). management, and board governance. Remuneration as at the year end: £40,000 Committee membership: Audit and Risk, per annum. Management Engagement, and Nomination and Remuneration committees. Number of shares held: 18,634* Remuneration as at the year end: £50,000 per annum. Number of shares held: 40,000* *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 ## 40 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 ### Section 4: Governance ## Alexa Coates Sam Davis Senior Independent Independent non-executive director director | Length of service: seven years – appointed a | Length of service: one year – appointed in | | --- | --- | | director in February 2018. | July 2024. | | Experience: Alexa Coates is a chartered | Experience: Sam is a non-executive director | | accountant who brings over 30 years of | of Allianz Technology Trust plc and The Baillie | | significant financial expertise to the Board. | Gifford Japan Trust plc, and is Chair of the | | Alexa was a senior executive of HSBC for nine | Management Engagement Committee of the | | years, where she served as the global CFO for | latter. Sam was previously CEO of Putnam | | the group’s asset management business and | Investments Limited and Co-Head of Equities | | then led the finance function for commercial | at Putnam Investments, where he oversaw | | banking operations in Europe. Prior to | a global investment team. He has more | | joining HSBC, Alexa worked in senior roles in | than 20 years of experience in investment | | retail, healthcare and professional services | markets, having worked in different roles as | | including at J Sainsbury plc and BUPA. She | Portfolio Manager, Director of Research, and | | started her career at EY, where she worked in | Co-Head of Equities and has managed Asian, | | the UK and France. | European, and broad international equity | portfolios. Alexa is a non-executive director and audit committee chair of Marsh Limited, the Contribution to the Board and its insurance broker, Aviva Investors and its UK Committees: Sam brings significant fund services company as well as a non- experience in asset management, with executive director and chair of the audit and particular expertise in global equities, risk committee of Polar Capital Holdings plc, portfolio management, and investment a publicly quoted company. strategy. Contribution to the Board and its Committee membership: Audit and Risk, Committees: Alexa brings extensive financial Management Engagement (Chair) and expertise and wide-ranging experience across Nomination and Remuneration Committees. asset management, financial services, retail, healthcare, and professional services. Remuneration as at the year end: £40,000 per annum. Committee membership: Audit and Risk (Chair), Management Engagement, and Number of shares held: 7,326* Nomination and Remuneration Committees. Remuneration as at the year end: £45,000 per annum. Number of shares held: 10,000* *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 ## 41 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 # 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. ![img-14.jpeg](img-14.jpeg) Board of directors (left to right): Isabel Liu, Nick Winsor, Alexa Coates and Sam Davis. 42 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 Section 4: Governance 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 43 ## Section 4: Governance 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 | 30,245,340 | 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. 44 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 4: Governance 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. Nomination Audit and Management and Risk Remuneration Engagement Director Board Committee Committee 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 45 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 # 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: ## Ongoing risk review ![img-15.jpeg](img-15.jpeg) 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. ## Key roles and responsibilities ### 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. 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. ### 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. ## Application during the year 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. 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. Consideration of the accounting policies and judgments used in preparing the interim and full year financial statements of the Company. 46 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 Section 4: Governance 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. 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. #### Audit To review the audit plan and discuss any matters arising from the audit including any recommendations made by the auditors. 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. 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. 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. 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. 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 47 Section 4: Governance 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 48 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 4: Governance ## 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. Evaluation of Evaluation of key service Continuous improvement Manager providers objective Approach The Committee’s key roles and responsibilities are set out in the table below. Oversight of the Manager Oversight of other service providers The Committee: The Committee reviews the performance and competitiveness of the following service providers on at least an annual basis: • reviews the Manager’s performance, over the short and long- term, against the Reference Index, peer group and the market; • safekeeping agent; • considers the reporting it has received from the Manager • corporate broker; throughout the year, and the reporting from the Manager to • registrar; and the shareholders; • lender. • assesses management fees on an absolute and relative basis, receiving input from the Company’s broker, including peer The Committee also receives a report from the company group and industry figures, as well as the structure of the fees; secretary on ancillary service providers, and considers any recommendations. • reviews the appropriateness of the Manager’s contract, including terms such as notice period; The Committee notes the Audit and Risk Committee’s review of the auditor. • 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 49 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 # Application during the year # Oversight of the Manager 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. # Oversight of other service providers The Committee conducted a detailed review of each of the Company's key service providers, including their anti-modern slavery, anti-bribery, sustainability, diversity and inclusion policies, and concluded that their continued appointments were appropriate. The Committee noted that the Audit and Risk Committee had undertaken a detailed evaluation of the 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. # 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 50 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 4: Governance ## 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. Selection Induction Annual Annual review of Application of evaluation succession policy succession policy Approach Selection and induction Board evaluation and directors’ fees Succession • Specifications are prepared for the • The Committee assesses the • The Board’s succession policy is that Chair and each director role. The performance, composition, diversity directors’ tenure, including that of specifications outline the required and how effectively members work the Chair, will be for no longer than knowledge, professional skills, personal together annually. Every three years the nine years, except in exceptional qualities and experience. Committee uses an external facilitator circumstances, and that each director • If external candidates are sought for for the evaluation. will be subject to annual re-election at Board roles, the Committee procures • Evaluation focuses on whether each AGMs. proposals from independent search director continues to demonstrate • The Committee reviews the Board’s firms and selects a firm. commitment to their role and provides current and future needs at least • The search firm sources a long list of a valuable contribution to the Board annually. Should any need be identified, potential candidates, who are assessed during the year, taking into account time the Committee initiates the selection against the role specification. commitment, independence, conflicts process. • The Committee discusses the long and training needs. • The Committee oversees the handover list, invites a number of candidates for • Following the evaluation, the Committee process for retiring directors. interview and makes a recommendation provides a recommendation to to the Board. shareholders with respect to the annual • The Committee reviews the induction re-election of directors at the AGM. and training of new directors. • The Committee reviews directors’ fees, • The Committee also considers current taking into account comparative data Board members for the Chair role. and reports to shareholders in the • Internal candidates for Chair are remuneration report. interviewed by the other Board • Proposed changes to the remuneration directors. Appointment as Chair is based policy for directors are discussed on their approval. and then proposed for approval by shareholders. For application see following page. • Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 51 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 Application during the year Selection and induction Board evaluation and directors’ fees Succession | • In accordance with the Board’s | • The annual Board evaluation, including | • The Committee reviewed the succession | | --- | --- | --- | | succession planning, the Committee is | evaluation of its committees, was | policy and agreed it was still fit for | | also seeking to appoint a director with | undertaken within the financial year. | purpose. | | the appropriate skills, experience and | • The evaluation was facilitated by an | • Isabel Liu was appointed Chair of | | contribution to diversity. | external independent advisory firm, | the Nomination and Remuneration | | • The Committee evaluated proposals | Lintstock Ltd. Lintstock presented | Committee on 3 February 2025. On | | from a number of search firms. Thomas | findings from surveys, interviews, and | the same date, Sam Davis succeeded | | & Dessain was selected to conduct the | observations of meetings. Lintstock also | Isabel Liu as Chair of the Management | | search. | compared the Board’s performance | Engagement Committee. | | • The selection process is underway. The | metrics against a benchmark of other | | | appointment of a new non-executive | UK investment trust companies. SOI | | | director will be announced in due | rated at or above benchmark in over | | | course. | 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. 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 ## 52 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 Section 4: Governance # 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 53 ### Section 4: Governance 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 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | 2024 | | 2025 | | 2024 | | 2025 | | 2024 | | 2025 | 2024 | 2023 | 2022 | 2021 | | Director | | £ | | £ | | £ | | £ | | £ | | £ | % | % | % | % | % | 2 Paul Meader 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 3 Kate Cornish-Bowden – 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 4 Sam Davis 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 | 300 | 16 | | --- | --- | | 275 | 14 | | 250 | 12 | | 225 | 10 | | 200 | 8 | | 175 | 6 | | 150 | 4 | | 125 | 2 | | 100 | 0 | 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) 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 ## 54 31 August 2015 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 ### Section 4: Governance 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 | | Year ended | | | --- | --- | --- | --- | | 31 August | | 31 August | | | | 2025 | | 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 | | Ordinary shares | | | --- | --- | --- | --- | | | of 1p each | | of 1p each | | 31 August 2025 | | 31 August 2024 | | 1 Paul Meader 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 55 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 # 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 56 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 5: Financials ## 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 57 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 auditors’ report to the members of ## Schroder Oriental Income Fund Limited ## Report on the audit of the financial • The Manager has delegated investment management, marketing, administrative, accounting and company secretarial ## statements services to Schroder Investment Management Limited (the “Investment Manager”). The Investment Manager has sub- Opinion delegated a part of the fund accounting and administration In our opinion, Schroder Oriental Income Fund Limited’s financial activities to HSBC Securities Services (UK) Limited (the statements: “Administrator”). • On 3 October 2025, the Depository, Administration and • give a true and fair view of the state of the company’s affairs as Custody services of the company have been delegated to at 31 August 2025 and of its return and cash flows for the year J.P. Morgan Europe Limited and JPMorgan Chase Bank, N.A., then ended; London Branch. • have been properly prepared in accordance with International • We conducted our audit using information provided by the Financial Reporting Standards (IFRSs) as adopted in the Manager, Investment Manager and the Administrator. European Union; and • We tailored the scope of our audit taking into account the types • have been prepared in accordance with the requirements of of investments within the company, the involvement of the the Companies (Guernsey) Law, 2008. third parties referred to above, the accounting processes and We have audited the financial statements, included within the controls, and the industry in which the company operates. Annual Report and Financial Statements (the “Annual Report”), • We obtained an understanding of the control environment in which comprise: Statement of Financial Position as at 31 August place at the Manager, Investment Manager and Administrator, 2025; Statement of Comprehensive Income, Statement of and adopted a fully substantive testing approach using Changes in Equity and Cash Flow Statement for the year then reports obtained from the Manager, Investment Manager and ended; and the notes to the financial statements, comprising Administrator. material accounting policy information and other explanatory information. Key audit matters Our opinion is consistent with our reporting to the Audit and Risk • Income from and gains on investments Committee. • Valuation and existence of investments at fair value through profit or loss Basis for opinion We conducted our audit in accordance with International Materiality Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our • Overall materiality: £7,321,000 (2024: £7,003,000) based on responsibilities under ISAs (UK) are further described in the approximately 1% of net assets. Auditors’ responsibilities for the audit of the financial statements • Performance materiality: £5,491,000 (2024: £5,252,000). section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our The scope of our audit opinion. As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial Independence statements. We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the Key audit matters financial statements in the UK, which includes the Financial Key audit matters are those matters that, in the auditors’ Reporting Council’s (“FRC”) Ethical Standard, as applicable to professional judgement, were of most significance in the audit listed public interest entities in accordance with the requirements of the financial statements of the current period and include the of the Crown Dependencies’ Audit Rules and Guidance for most significant assessed risks of material misstatement (whether market-traded companies, and we have fulfilled our other ethical or not due to fraud) identified by the auditors, including those responsibilities in accordance with these requirements. which had the greatest effect on: the overall audit strategy; the To the best of our knowledge and belief, we declare that non- allocation of resources in the audit; and directing the efforts of audit services prohibited by the FRC’s Ethical Standard were not the engagement team. These matters, and any comments we provided. make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, We have provided no non-audit services to the company in the and in forming our opinion thereon, and we do not provide a period under audit. separate opinion on these matters. Our audit approach This is not a complete list of all risks identified by our audit. 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 58 ### Section 5: Financials 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 We assessed and found that the accounting policies Refer to the Note 1 Accounting Policies, Note 2 Gains / (losses) implemented were in accordance with IFRS as adopted in the on investments held at fair value through profit and loss and European Union and the AIC SORP, and that income (revenue Note 3 Income. and capital gains and losses on investments) has been accounted for in accordance with the stated accounting policy. We focused on the accuracy and occurrence of both net capital gains/losses on investments and of dividend income. We also We understood and assessed the design and implementation assessed the completeness of dividend income. of key controls surrounding income recognition. We assessed the presentation of income in the Statement of Dividend income Comprehensive Income in accordance with the requirements We tested the accuracy of all dividend receipts by agreeing the of The Association of Investment Companies’ Statement of dividend rates for investments to independent market data. Recommended Practice (the “AIC SORP”). 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 We assessed the accounting policy for investments held at fair through profit or loss value through profit or loss for compliance with accounting Refer to Note 1(c) Accounting Policies and Note 10 Investments standards and performed testing to check that investments are at fair value through profit or loss. accounted for in accordance with the stated accounting policy. The investment portfolio at 31 August 2025 comprised listed We tested the valuation of the listed investments by agreeing equity investments. We focused on the valuation and existence the prices used in the valuation to independent third party of investments because investments represent the principal sources. element of the net asset value as disclosed in the Statement of We tested the existence of the listed investments by agreeing Financial Position in the financial statements. the holdings to an independent confirmation from the Custodian, as at 31 August 2025. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 59 ### Section 5: Financials How we tailored the audit scope We agreed with the Audit and Risk Committee that we would We tailored the scope of our audit to ensure that we performed report to them misstatements identified during our audit above enough work to be able to give an opinion on the financial £366,000 (2024: £350,000) as well as misstatements below that statements as a whole, taking into account the structure of amount that, in our view, warranted reporting for qualitative the company, the accounting processes and controls, and the reasons. industry in which it operates. Conclusions relating to going concern The company is a standalone authorised, closed-ended Our evaluation of the directors’ assessment of the company’s investment company that has outsourced the management of its ability to continue to adopt the going concern basis of accounting assets to the Manager. The Manager has delegated investment included: management, administrative, accounting and company secretarial services to the Investment Manager, who sub-delegated certain • evaluating the directors’ updated risk assessment and accounting and administrative services to the Administrator. considering whether it addressed relevant threats; We applied professional judgement to determine the extent of • evaluating the directors’ assessment of potential operational testing required over each balance in the financial statements and impacts, considering their consistency with other available obtained our audit evidence which was substantive in nature from information and our understanding of the business and the Manager, the Investment Manager and the Administrator. assessed the potential impact on the financial statements; • reviewing the directors’ assessment of the company’s financial The impact of climate risk on our audit position in the context of its ability to meet future expected As part of our audit we made enquiries of management to operating expenses and debt repayments, their assessment of understand the extent of the potential impact of climate risk on liquidity; and the company’s financial statements, and we remained alert when performing our audit procedures for any indicators of the impact • assessing the premium/discount at which the company’s share of climate risk. Our procedures did not identify any material price trades compared to the net asset value per share. impact as a result of climate risk on the company’s financial Based on the work we have performed, we have not identified statements. any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Materiality company’s ability to continue as a going concern for a period of The scope of our audit was influenced by our application of at least twelve months from when the financial statements are materiality. We set certain quantitative thresholds for materiality. authorised for issue. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing In auditing the financial statements, we have concluded that the and extent of our audit procedures on the individual financial directors’ use of the going concern basis of accounting in the statement line items and disclosures and in evaluating the effect preparation of the financial statements is appropriate. of misstatements, both individually and in aggregate on the However, because not all future events or conditions can be financial statements as a whole. predicted, this conclusion is not a guarantee as to the company’s Based on our professional judgement, we determined materiality ability to continue as a going concern. for the financial statements as a whole as follows: From our work on the corporate governance statement described below, we have nothing material to add or draw attention to in Overall company £7,321,000 (2024: £7,003,000). relation to the directors’ statement in the financial statements materiality about whether the directors considered it appropriate to adopt the going concern basis of accounting. How we determined it approximately 1% of net assets Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of Rationale for We believe that net assets is the this report. benchmark applied primary measure used by the shareholders in assessing the Reporting on other information performance of the company, and The other information comprises all of the information in the is a generally accepted auditing Annual Report other than the financial statements and our benchmark. This benchmark provides auditors’ report thereon. The directors are responsible for the an appropriate and consistent year on other information. Our opinion on the financial statements year basis for our audit. does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise We use performance materiality to reduce to an appropriately explicitly stated in this report, any form of assurance thereon. low level the probability that the aggregate of uncorrected and In connection with our audit of the financial statements, our undetected misstatements exceeds overall materiality. Specifically, responsibility is to read the other information and, in doing so, we use performance materiality in determining the scope of consider whether the other information is materially inconsistent our audit and the nature and extent of our testing of account with the financial statements or our knowledge obtained in balances, classes of transactions and disclosures, for example in the audit, or otherwise appears to be materially misstated. determining sample sizes. Our performance materiality was 75% If we identify an apparent material inconsistency or material (2024: 75%) of overall materiality, amounting to £5,491,000 (2024: misstatement, we are required to perform procedures to £5,252,000) for the company financial statements. conclude whether there is a material misstatement of the financial In determining the performance materiality, we considered a statements or a material misstatement of the other information. number of factors - the history of misstatements, risk assessment If, based on the work we have performed, we conclude that and aggregation risk and the effectiveness of controls - and there is a material misstatement of this other information, we are concluded that an amount at the upper end of our normal range required to report that fact. We have nothing to report based on was appropriate. these responsibilities. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 60 ### Section 5: Financials Corporate governance statement We have nothing to report in respect of our responsibility to As explained in Directors’ Report, the directors have chosen to report when the directors’ statement relating to the company’s demonstrate how the company has met its obligations under compliance with the Code does not properly disclose a departure the UK Corporate Governance Code (‘the Code’) by reporting from a relevant provision of the Code specified under the Listing under the 2019 Association of Investment Companies’ Code Rules for review by the auditors. of Corporate Governance (‘the AIC Code’). As such, we refer to the AIC Code where we report the matters required under ISAs Responsibilities for the financial statements and the (UK) in respect of the directors’ statements in relation to going audit concern, longer-term viability and that part of the corporate Responsibilities of the directors for the financial governance statement relating to the company’s compliance statements with the provisions of the Code specified by the Listing Rules As explained more fully in the Statement of Directors’ for our review. Our additional responsibilities with respect to Responsibilities in respect of the Annual Report and Financial the corporate governance statement as other information are Statements, the directors are responsible for the preparation described in the Reporting on other information section of this of the financial statements in accordance with the applicable report. framework and for being satisfied that they give a true and fair Based on the work undertaken as part of our audit, we have view. The directors are also responsible for such internal control concluded that each of the following elements of the corporate as they determine is necessary to enable the preparation of governance statement is materially consistent with the financial financial statements that are free from material misstatement, statements and our knowledge obtained during the audit, and we whether due to fraud or error. have nothing material to add or draw attention to in relation to: In preparing the financial statements, the directors are • The directors’ confirmation that they have carried out a robust responsible for assessing the company’s ability to continue as a assessment of the emerging and principal risks; going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless • The disclosures in the Annual Report that describe those the directors either intend to liquidate the company or to cease principal risks, what procedures are in place to identify operations, or have no realistic alternative but to do so. emerging risks and an explanation of how these are being managed or mitigated; Auditors’ responsibilities for the audit of the financial • The directors’ statement in the financial statements about statements whether they considered it appropriate to adopt the going Our objectives are to obtain reasonable assurance about whether concern basis of accounting in preparing them, and their the financial statements as a whole are free from material identification of any material uncertainties to the company’s misstatement, whether due to fraud or error, and to issue an ability to continue to do so over a period of at least twelve auditors’ report that includes our opinion. Reasonable assurance months from the date of approval of the financial statements; is a high level of assurance, but is not a guarantee that an audit • The directors’ explanation as to their assessment of the conducted in accordance with ISAs (UK) will always detect a company’s prospects, the period this assessment covers and material misstatement when it exists. Misstatements can arise why the period is appropriate; and from fraud or error and are considered material if, individually or • The directors’ statement as to whether they have a reasonable in the aggregate, they could reasonably be expected to influence expectation that the company will be able to continue in the economic decisions of users taken on the basis of these operation and meet its liabilities as they fall due over the period financial statements. of its assessment, including any related disclosures drawing Irregularities, including fraud, are instances of non-compliance attention to any necessary qualifications or assumptions. with laws and regulations. We design procedures in line with our Our review of the directors’ statement regarding the longer-term responsibilities, outlined above, to detect material misstatements viability of the company was substantially less in scope than an in respect of irregularities, including fraud. The extent to which audit and only consisted of making inquiries and considering our procedures are capable of detecting irregularities, including the directors’ process supporting their statement; checking that fraud, is detailed below. the statement is in alignment with the relevant provisions of the Based on our understanding of the company and industry, we Code; and considering whether the statement is consistent with identified that the principal risks of non-compliance with laws the financial statements and our knowledge and understanding and regulations related to breaches of section 1158 of the of the company and its environment obtained in the course of the Corporation Tax Act 2010, and we considered the extent to which audit. non-compliance might have a material effect on the financial In addition, based on the work undertaken as part of our audit, statements. We also considered those laws and regulations that we have concluded that each of the following elements of the have a direct impact on the financial statements such as the corporate governance statement is materially consistent with Companies (Guernsey) Law, 2008. We evaluated management’s the financial statements and our knowledge obtained during the incentives and opportunities for fraudulent manipulation of the audit: financial statements (including the risk of override of controls), and determined that the principal risks were related to posting • The directors’ statement that they consider the Annual Report, inappropriate journal entries to increase revenue (investment taken as a whole, is fair, balanced and understandable, and income and capital gains) or to increase net asset value. Audit provides the information necessary for the members to assess procedures performed by the engagement team included: the company’s position, performance, business model and strategy; • discussions with the Manager and the Audit and Risk Committee, including specific enquiry of known or suspected • The section of the Annual Report that describes the review of instances of non-compliance with laws and regulation and effectiveness of risk management and internal control systems; fraud where applicable; and • reviewing relevant meeting minutes, including those of the • The section of the Annual Report describing the work of the Audit and Risk Committee; Audit and Risk Committee. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 61 ### Section 5: Financials • 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 ## 62 Section 5: Financials # Statement of Comprehensive Income for the year ended 31 August 2025 | | Note | 2025 | | | 2024 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 63 ### Section 5: Financials ## Statement of Changes in Equity for the year ended 31 August 2025 | | | Treasury | | | Capital | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Share | | shar | e redemption | | Special | Capital | Revenue | | | | | capital | reserve | | | reserve | reserve | reserve | reserve | | Total | | Note | £’000 | | £’000 | | £’000 | £’000 | £’000 | | £’000 | £’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 ## 64 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 Section 5: Financials # Statement of Financial Position at 31 August 2025 | | Note | 2025 £'000 | 2024 £'000 | | --- | --- | --- | --- | | **Non current assets** | | | | | Investments at fair value through profit or loss | 10 | 763,811 | 735,607 | | **Current assets** | | | | | Receivables | 11 | 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 65 Section 5: Financials # 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. 66 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 Section 5: Financials # 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". Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 67 Section 5: Financials ### (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. 68 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 Section 5: Financials ## 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 69 Section 5: Financials ## 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. 70 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 Section 5: Financials ## 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** | Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 71 Section 5: Financials ## 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. 72 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 5: Financials ### 12. Current liabilities 2025 2024 Payables £’000 £’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 2024 £’000 £’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 | | | | | | | | Gains and | | Investment | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | Treasury | | | Capital | | losses on | | | holding | | | | Share | | | share | redemption | | Special | | sales of | | gains and | Revenue | | | capital | reserve | | | | reserve | reserve | investments | | | losses | reserve | | | £’000 | | | £’000 | | £’000 | £’000 | | £’000 | £’000 | | | £’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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 73 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 Capital reserves | | | | | | | | Gains and | | Investment | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | Treasury | | | Capital | | losses on | | | holding | | | | Share | | | share | redemption | | Special | | sales of | | gains and | Revenue | | | capital | reserve | | | | reserve | reserve | investments | | | losses | reserve | | | £’000 | | | £’000 | | £’000 | £’000 | | £’000 | £’000 | | | £’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 ## 74 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 Section 5: Financials ## 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 75 ### Section 5: Financials 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. | | Japanese | | Hong Kong | | Australian | | Singapore | | Taiwan | Thai | | US | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | yen | | dollars | | dollars | | dollars | dollars | baht | dollars | | Other | Total | | 2025 | | £’000 | | £’000 | | £’000 | | £’000 | £’000 | £’000 | £’000 | | £’000 | £’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 1 profit or loss 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 | | Japanese | | Hong Kong | | Australian | | Singapore | | Taiwan | Thai | | US | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | yen | | dollars | | dollars | | dollars | dollars | baht | dollars | | Other | Total | | 2024 | | £’000 | | £’000 | | £’000 | | £’000 | £’000 | £’000 | £’000 | | £’000 | £’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 1 profit or loss 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 ## 76 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 Section 5: Financials 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) | Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 77 ### Section 5: Financials 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 | | | 1.0% | | 1.0% | | 1.0% | | 1.0% | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | increase | | decrease | | increase | | decrease | | | | in rate | | | in rate | in rate | | | in rate | | Statement of Comprehensive Income – return after taxation | | £’000 | | £’000 | | £’000 | | £’000 | 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 2024 £’000 £’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 | | | | 20% | | | 20% | | | 20% | | | 20% | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | increase | | | decrease | | | increase | | | decrease | | | | in fair value | | | in fair value | | | in fair value | | | in fair value | | | | Statement of Comprehensive Income – return after taxation | | | £’000 | | | £’000 | | | £’000 | | | £’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 ## 78 Job No: 101719 Proof Event: 18 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA 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 Customer: Schroders Project Title: Oriental Income Fund Annual Report 2025 T: 0207 055 6500 F: 020 7055 6600 ### Section 5: Financials Liquidity risk exposure Contractual maturities of financial liabilities, based on the earliest date on which payment can be required are as follows: | | 2025 | | 2024 | | --- | --- | --- | --- | | | Three | | Three | | months | | months | | | or less | | or less | | | | £’000 | | £’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 | | Balance | Maximum | | Balance | Maximum | | | --- | --- | --- | --- | --- | --- | --- | | | sheet | exposure | | sheet | exposure | | | Current assets | £’000 | | £’000 | £’000 | | £’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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 79 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 ## 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 Depository, 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. 80 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 6: Other Information (Unaudited) ## 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 81818181 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 6: Other Information (Unaudited) # 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. 82 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 Section 6: Other Information (Unaudited) # 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 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 83 Section 6: Other Information (Unaudited) # 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. 84 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 6: Other Information (Unaudited) ## Alternative Performance Measures and Glossary ### 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. ### 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 NAV total return for the period ended 31 August 2025 is | | | | The share price total return for the period ended 31 August 2025 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | calculated as follows: | | | | is calculated as follows: | | | | | Opening NAV at 31/8/24 289.63p | | | | Opening share price at 31/8/24 269.00p | | | | | Closing NAV at 31/8/25 319.47p | | | | Closing share price at 31/8/25 303.50p | | | | | | NAV on | Cumulative | | | Share price | Cumulative | | | Dividend received XD date | XD date Factor | | Factor | Dividend received XD date | on XD date Factor | | Factor | | 6.00p 14/11/24 285.64p 1.0210 1.0210 | | | | 6.00p 14/11/24 267.00p 1.0225 1.0225 | | | | | 2.00p 30/01/25 294.56p 1.0068 1.0279 | | | | 2.00p 30/01/25 277.00p 1.0072 1.0299 | | | | | 2.00p 01/05/25 275.00p 1.0073 1.0354 | | | | 2.00p 01/05/25 263.00p 1.0076 1.0377 | | | | | 2.00p 17/07/25 312.79p 1.0064 1.0420 | | | | 2.00p 17/07/25 298.50p 1.0067 1.0446 | | | | | NAV total return, being the closing NAV, multiplied | | | | Share price total return, being the closing share price, | | | | | by the factor, expressed as a percentage change | | | | multiplied by the factor, expressed as a percentage change | | | | | in the opening NAV: 14.9% | | | | in the opening share price: 17.9% | | | | | The NAV total return for the year ended 31 August 2024 is | | | | The share price total return for the period ended 31 August 2024 | | | | | calculated as follows: | | | | is calculated as follows: | | | | | Opening NAV at 31/8/23 256.01p | | | | Opening share price at 31/8/23 244.50p | | | | | Closing NAV at 31/8/24 289.63p | | | | Closing share price at 31/8/24 269.00p | | | | | | NAV on | Cumulative | | | Share price | Cumulative | | | Dividend received XD date | XD date Factor | | Factor | Dividend received XD date | on XD date Factor | | Factor | | 5.80p 16/11/23 257.58p 1.0225 1.0225 | | | | 5.80p 16/11/23 243.00p 1.0239 1.0239 | | | | | 2.00p 01/02/24 256.89p 1.0078 1.0305 | | | | 2.00p 01/02/24 241.00p 1.0083 1.0324 | | | | | 2.00p 25/04/24 274.13p 1.0073 1.0380 | | | | 2.00p 25/04/24 256.00p 1.0078 1.0404 | | | | | 2.00p 18/07/24 292.21p 1.0068 1.0451 | | | | 2.00p 18/07/24 278.50p 1.0072 1.0479 | | | | | NAV total return, being the closing NAV, multiplied by the | | | | Share price total return, being the closing share price, | | | | | factor, expressed as a percentage change in the opening | | | | multiplied by the factor, expressed as a percentage change | | | | | NAV: 18.2% | | | | in the opening share price: 15.3% | | | | Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 85 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 6: Other Information (Unaudited) ### 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. 86 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 Section 6: Other Information (Unaudited) # 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: | Leverage exposure | % of net asset value | | | --- | --- | --- | | | 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/. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 87 Section 6: Other Information (Unaudited) # 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. 88 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ### Section 6: Other Information (Unaudited) ## Risk Disclosures Concentration risk The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the Company, both up or down. Counterparty risk The Company may have contractual agreements with counterparties. If a counterparty is unable to 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 & Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, frontier risk operational and liquidity risk than developed markets. Gearing risk The Company may borrow money to make further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase by more than the cost of borrowing, or reduce returns if they fail to do so. In falling markets, the whole of the value in such investments could be lost, which would result in losses to the Company. Liquidity risk The price of shares in the Company is determined by market supply and demand, and this may be 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. Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 89 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 6: Other Information (Unaudited) ## Information about the Company ## www.schroders.co.uk/orientalincome Registrar ### Directors Computershare Investor Services (Guernsey) Limited Nick Winsor (Chair) 1st Floor Alexa Coates Tudor House Sam Davis Le Bordage Isabel Liu St Peter Port Guernsey GY1 1DB ### Registered Office* Communications with shareholders are mailed to the address Level 3 held on the register. Any notifications and enquiries relating Mill Court to shareholdings, including a change of address or other La Charroterie amendment should be directed to Computershare Investor St. Peter Port Services (Guernsey) Limited at the above address. Guernsey GY1 1EJ Corporate broker Deutsche Numis ### Advisers and service providers 45 Gresham Street London EC2V 7BF Alternative Investment Fund Manager (the “Manager”) | Schroder Unit Trusts Limited | Designated administrator | | --- | --- | | 1 London Wall Place | HSBC Securities Services (Guernsey) Limited | | London EC2Y 5AU | Arnold House | St Julian’s Avenue Investment Manager and Company Secretary St Peter Port Schroder Investment Management Limited Guernsey GY1 3NF 1 London Wall Place † J.P. Morgan Administration Services (Guernsey) Limited London EC2Y 5AU Level 3 Telephone: 020 7658 6000 Mill Court Email: AMCompanySecretary@schroders.com La Charroterie St. Peter Port Lending bank Guernsey GY1 1EJ The Bank of Nova Scotia, London Branch 201 Bishopsgate London EC2M 3NS ### Other Information Safekeeping and cashflow monitoring agent Shareholder enquiries HSBC Bank plc General enquiries about the Company should be addressed to 8 Canada Square the Company Secretary. London E14 5HQ Company Number J.P. Morgan Europe Limited* 25 Bank Street 43298 London (Registered in Guernsey as a company limited by shares) E14 5JP Dealing codes Independent auditors ISIN: GB00B0CRWN59 SEDOL: B0CRWN5 PricewaterhouseCoopers LLP Ticker: SOI 1 Embankment Place London WC2N 6RH 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. * With effect from 3 October 2025 † with effect from 21 October 2025 Schroder Oriental Income Fund Limited Annual Report and Financial Statements 2025 ## 90 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: 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 Schroder Oriental Income Fund Limited | Annual Report and Financial Statements 2025 ### Schroder Investment Management Limited ### 1 London Wall Place, London EC2Y 5AU, United Kingdom ### T +44 (0) 20 7658 6000 ## schroders.com ## @schroders Important information: This document is intended to be for information purposes investment and/or strategic decisions. Past performance is not a reliable indicator of only and it is not intended as promotional material in any respect. The material future results, prices of shares and the income from them may fall as well as rise and is not intended as an offer or solicitation for the purchase or sale of any financial investors may not get back the amount originally invested. Schroders has expressed instrument. The material is not intended to provide, and should not be relied on for, its own views in this document and these may change. Issued by Schroder Investment accounting, legal or tax advice, or investment recommendations. Information herein Management Limited, 1 London Wall Place, London EC2Y 5AU, which is authorised and is believed to be reliable but Schroders does not warrant its completeness or accuracy. regulated by the Financial Conduct Authority. For your security, communications may No responsibility can be accepted for errors of fact or opinion. Reliance should not be taped or monitored. be placed on the views and information in the document when taking individual 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