Annual Report and Financial Statements
for the year ended 31 December 2025
Schroder Asian Total Return
Investment Company plc
for the year ended 31 December 2025
Schroder Asian Total Return
Investment Company plc
9
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Schroder Asian Total Return Investment Company plc
The Investment Objective of the Company is set out above. For details on the Company’s Investment Policy please see the KID. This
report includes the Investment Policy which you should read in conjunction with the KID before investing; these are also available on
our Schroders website.
Past performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally
invested. Exchange rate changes may cause the value of investments to fall as well as rise. Performance data does not take into
account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed. Relevant
risks as associated with this Company are shown on page 109 and should be carefully considered before making any investment.
Investment Objective
Schroder Asian Total Return Investment Company plc (the “Company”) seeks to provide
a high rate of total return through investment in equities and equity-related securities of
companies trading in the Asia Pacific region (excluding Japan). The Company seeks to
offer a degree of capital preservation through tactical use of derivative instruments.
Why invest in the Company?
Investing in high potential companies across the Asia Pacific region
The Portfolio Managers are benchmark agnostic, which means they can back their
highest conviction ideas with an active approach that is not tied to any particular
index resulting in a portfolio that is diversified across region and sector. With an
interest towards small and mid cap names, they focus on well-managed
businesses that understand the importance of paying a good, growing dividend to
their shareholders as part of an attractive long-term total return.
Benefit from a smoother investment journey and the possibility
for higher returns
The ability to select stocks that have the potential to deliver strong long-term
returns is complemented by the use of a tactical hedging strategy. This focuses on
delivering a smoother ride in investing compared to the Reference Index by
reducing volatility and preserving capital. Altogether, this helps to mitigate some
of the broader risks associated with investing in Asia.
Rely on decades of Asian investment expertise
The Co-Portfolio Managers, Robin Parbrook and King Fuei Lee, have more than
50 years of combined investment experience and are renowned for their expertise
in Asian equity investing. They draw upon the extensive resources of Schroders’
Asia Pacific equities research team based in six offices across the region, as well
as Schroders’ London-based global sector specialists. This helps provide an
information advantage in an under-researched and market inefficient region.
Please see page 39 for the full Investment Policy.
Scan this QR code on your smartphone camera
to sign up to receive regular updates on
Schroder Asian Total Return Investment Company plc
The Investment Objective of the Company is set out above. For details on the Company’s Investment Policy please see the KID. This
report includes the Investment Policy which you should read in conjunction with the KID before investing; these are also available on
our Schroders website.
Past performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally
invested. Exchange rate changes may cause the value of investments to fall as well as rise. Performance data does not take into
account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed. Relevant
risks as associated with this Company are shown on page 109 and should be carefully considered before making any investment.
Investment Objective
Schroder Asian Total Return Investment Company plc (the “Company”) seeks to provide
a high rate of total return through investment in equities and equity-related securities of
companies trading in the Asia Pacific region (excluding Japan). The Company seeks to
offer a degree of capital preservation through tactical use of derivative instruments.
Why invest in the Company?
Investing in high potential companies across the Asia Pacific region
The Portfolio Managers are benchmark agnostic, which means they can back their
highest conviction ideas with an active approach that is not tied to any particular
index resulting in a portfolio that is diversified across region and sector. With an
interest towards small and mid cap names, they focus on well-managed
businesses that understand the importance of paying a good, growing dividend to
their shareholders as part of an attractive long-term total return.
Benefit from a smoother investment journey and the possibility
for higher returns
The ability to select stocks that have the potential to deliver strong long-term
returns is complemented by the use of a tactical hedging strategy. This focuses on
delivering a smoother ride in investing compared to the Reference Index by
reducing volatility and preserving capital. Altogether, this helps to mitigate some
of the broader risks associated with investing in Asia.
Rely on decades of Asian investment expertise
The Co-Portfolio Managers, Robin Parbrook and King Fuei Lee, have more than
50 years of combined investment experience and are renowned for their expertise
in Asian equity investing. They draw upon the extensive resources of Schroders’
Asia Pacific equities research team based in six offices across the region, as well
as Schroders’ London-based global sector specialists. This helps provide an
information advantage in an under-researched and market inefficient region.
Please see page 39 for the full Investment Policy.
Contents
Section 1: Overview
Performance Summary 5
Chair’s Statement 6
Ten-Year Financial Record 8
Section 2: Investment Manager’s Review
Portfolio Managers’ Report 12
Top Ten Investments 26
Investment Portfolio 28
Investment Process 31
ESG Integration 33
Section 3: Strategic Report
The Company 38
Stakeholder Engagement – Section 172 Report 42
Risk Report 46
Conclusion 50
Section 4: Governance
Board of Directors 54
Directors’ Report 56
Audit and Risk Committee Report 60
Management Engagement Committee Report 63
Nomination Committee Report 64
Directors’ Remuneration Report 66
Statement of Directors’ Responsibilities in respect
of the Annual Report and Financial Statements 69
Section 5: Financial Statements
Independent Auditor’s Report 72
Income Statement 77
Statement of Changes in Equity 78
Statement of Financial Position 79
Cash Flow Statement 80
Notes to the Financial Statements 81
Section 6: Other Information (Unaudited)
Annual General Meeting – Recommendations 100
Notice of Annual General Meeting 101
Explanatory Notes to the Notice of Meeting 103
Alternative Performance Measures and Glossary 105
Information about the Company 107
Risk Disclosures 109
10
36
70
52
98
2
This is not a sustainable product for the purposes of the Financial Conduct Authority (FCA) rules.
References to the consideration of sustainability factors and environmental, social and governance
(ESG) integration should not be construed as a representation that the Company seeks to achieve any
particular sustainability outcome.
1 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
Performance Summary 5
Chair’s Statement 6
Ten-Year Financial Record 8
Section 2: Investment Manager’s Review
Portfolio Managers’ Report 12
Top Ten Investments 26
Investment Portfolio 28
Investment Process 31
ESG Integration 33
Section 3: Strategic Report
The Company 38
Stakeholder Engagement – Section 172 Report 42
Risk Report 46
Conclusion 50
Section 4: Governance
Board of Directors 54
Directors’ Report 56
Audit and Risk Committee Report 60
Management Engagement Committee Report 63
Nomination Committee Report 64
Directors’ Remuneration Report 66
Statement of Directors’ Responsibilities in respect
of the Annual Report and Financial Statements 69
Section 5: Financial Statements
Independent Auditor’s Report 72
Income Statement 77
Statement of Changes in Equity 78
Statement of Financial Position 79
Cash Flow Statement 80
Notes to the Financial Statements 81
Section 6: Other Information (Unaudited)
Annual General Meeting – Recommendations 100
Notice of Annual General Meeting 101
Explanatory Notes to the Notice of Meeting 103
Alternative Performance Measures and Glossary 105
Information about the Company 107
Risk Disclosures 109
10
36
70
52
98
2
This is not a sustainable product for the purposes of the Financial Conduct Authority (FCA) rules.
References to the consideration of sustainability factors and environmental, social and governance
(ESG) integration should not be construed as a representation that the Company seeks to achieve any
particular sustainability outcome.
1 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Black Dragon Pool Park, Lijiang, China
Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
2
Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
2
Section 1: Overview
Performance Summary 5
Chair’s Statement 6
Ten-Year Financial Record 8
Section 1: Overview
3 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Performance Summary 5
Chair’s Statement 6
Ten-Year Financial Record 8
Section 1: Overview
3 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Taipei Skyline, Taiwan
Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
4
Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
4
Performance Summary
At 31 December 2025
1 Alternative performance measure, as defined by the European Securities and Markets Authority. Definitions of these performance measures,
and other terms used in this Report, are given on pages 105 and 106 together with supporting calculations where appropriate.
2 Source: Morningstar.
3 Source: Schroders.
Share price total return 1
19.3%
2024: +12.6%
Reference Index 2
20.6%
2024: +12.1%
Net Asset Value (NAV)
per share total return 1
14.2%
2024: +13.0%
Ongoing charges ratio 1,3
0.8%
2024: 0.9%
Share price discount
to NAV per share 1,2
1.1%
2024: 5.1%
Gearing 1,3
5.5%
2024: 8.5%
Share price 2
560.00p
2024: 483.00p
Revenue return per share 3
9.81p
2024: 9.61p
Section 1: Overview
5 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Net assets 3
£529.45m
2024: £476.08m
At 31 December 2025
1 Alternative performance measure, as defined by the European Securities and Markets Authority. Definitions of these performance measures,
and other terms used in this Report, are given on pages 105 and 106 together with supporting calculations where appropriate.
2 Source: Morningstar.
3 Source: Schroders.
Share price total return 1
19.3%
2024: +12.6%
Reference Index 2
20.6%
2024: +12.1%
Net Asset Value (NAV)
per share total return 1
14.2%
2024: +13.0%
Ongoing charges ratio 1,3
0.8%
2024: 0.9%
Share price discount
to NAV per share 1,2
1.1%
2024: 5.1%
Gearing 1,3
5.5%
2024: 8.5%
Share price 2
560.00p
2024: 483.00p
Revenue return per share 3
9.81p
2024: 9.61p
Section 1: Overview
5 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Net assets 3
£529.45m
2024: £476.08m
Chair’s Statement
Performance and background
It has been another year of strong absolute
returns from your Company which
delivered a share price total return of 19.3%
and a NAV total return of 14.2%. The share
price bene ted from a narrowing of the
discount to NAV at which it trades which
enhanced share price returns. However,
performance in 2025 lagged the Reference
Index, which produced a total return of
20.6% over the year. The principal
headwinds to the Company’s relative
performance came from a combination of
factors including not fully participating in
aHbroad market rally in Korea, stock
selection in Hong Kong and China, and
some of the dramatic stock moves on
possible winners and losers from AI
disruption. These are examined in more
detail in the Investment Manager’s review.
Despite this short-term relative
underperformance, it is worth noting that
since the start of 2026 the strategy is once
again outperforming the Reference Index.
Furthermore, the Company’s returns are
ahead of both the peer group and the
Reference Index over each of the three,
veHand ten year periods to 31 December
2025. The Company has generated relative
outperformance in eight of the last
tenHyears and cumulatively has returned
12.5% per annum vs. Reference Index
returns of 9.5% per annum over the last
decade¹.
We are delighted to report that this steady
growth in the Company’s assets has
resulted in us joining the FTSE 250 in June
of last year.
Further comments on performance and
investment policy may be found in the
Investment Manager’s review.
Earnings and dividends
Revenue return from the portfolio for the
year rose slightly to 9.81 pence per share,
from 9.61 pence per share in 2024. While
the Portfolio Managers view income as an
important component of investment return,
they focus on total return, rather than
income. The Board has therefore
recommended a nal dividend of
11.5Hpence per share, which maintains the
dividend at the same level as the previous
nancial year.
Subject to shareholder approval at the
Annual General Meeting (“AGM”), the
dividend will be paid on 11 May 2026 to
shareholders on the register on 10 April
2026. The ex-dividend date is 9 April 2026.
Discount management
The discount at which the Company’s share
price traded averaged 3.5% during the year
and traded at a 1.1% discount to the NAV at
the end of December 2025 compared to
aH5.1% discount in December 2024.
2025 saw record buybacks across the
investment trust sector as it struggled with
persistently wide discounts. However, your
Company did not buy back any shares
during the year as the discount remained
comfortably within the stated discount
control policy of targeting a discount no
wider than 5% in normal market conditions.
Indeed the discount narrowed over the
year and the share price is currently trading
close to NAV. ItHis the Company’s intention
to issue shares at a premium, should that
be achieved, as has been done in previous
years. The Board will be seeking approval
from shareholders to renew the issuance
and buy back authorities at the AGM to be
held on 23HApril 2026, further details of
which can be found on page 100.
Gearing
Gearing continued to be actively utilised by
the Portfolio Managers during the year and
ranged between 2% at its lowest and 8% at
its highest. Gearing made a positive
contribution to performance. The Company
continues to utilise contracts for di?erence
(CFDs) as a exible and more cost-e?ective
means of borrowing, and only a small
£23.5Hmillion revolving credit facility has
been retained, both of which have helped
to bring down borrowing costs. Borrowing
continues to be utilised within the wider
context of the derivative overlay strategy
and net gearing will not exceed 30% of NAV.
Schroders combination with
Nuveen
On 12 February 2026 the Board of
Schroders plc announced that they had
agreed the terms of a recommended cash
Sarah MacAulay
Chair
It has been another year
of strong absolute returns
from your Company
which delivered a share
price total return of 19.3%
and a NAV total return of
14.2%
¹ Source: Morningstar to 31 December 2025
Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
6
Performance and background
It has been another year of strong absolute
returns from your Company which
delivered a share price total return of 19.3%
and a NAV total return of 14.2%. The share
price bene ted from a narrowing of the
discount to NAV at which it trades which
enhanced share price returns. However,
performance in 2025 lagged the Reference
Index, which produced a total return of
20.6% over the year. The principal
headwinds to the Company’s relative
performance came from a combination of
factors including not fully participating in
aHbroad market rally in Korea, stock
selection in Hong Kong and China, and
some of the dramatic stock moves on
possible winners and losers from AI
disruption. These are examined in more
detail in the Investment Manager’s review.
Despite this short-term relative
underperformance, it is worth noting that
since the start of 2026 the strategy is once
again outperforming the Reference Index.
Furthermore, the Company’s returns are
ahead of both the peer group and the
Reference Index over each of the three,
veHand ten year periods to 31 December
2025. The Company has generated relative
outperformance in eight of the last
tenHyears and cumulatively has returned
12.5% per annum vs. Reference Index
returns of 9.5% per annum over the last
decade¹.
We are delighted to report that this steady
growth in the Company’s assets has
resulted in us joining the FTSE 250 in June
of last year.
Further comments on performance and
investment policy may be found in the
Investment Manager’s review.
Earnings and dividends
Revenue return from the portfolio for the
year rose slightly to 9.81 pence per share,
from 9.61 pence per share in 2024. While
the Portfolio Managers view income as an
important component of investment return,
they focus on total return, rather than
income. The Board has therefore
recommended a nal dividend of
11.5Hpence per share, which maintains the
dividend at the same level as the previous
nancial year.
Subject to shareholder approval at the
Annual General Meeting (“AGM”), the
dividend will be paid on 11 May 2026 to
shareholders on the register on 10 April
2026. The ex-dividend date is 9 April 2026.
Discount management
The discount at which the Company’s share
price traded averaged 3.5% during the year
and traded at a 1.1% discount to the NAV at
the end of December 2025 compared to
aH5.1% discount in December 2024.
2025 saw record buybacks across the
investment trust sector as it struggled with
persistently wide discounts. However, your
Company did not buy back any shares
during the year as the discount remained
comfortably within the stated discount
control policy of targeting a discount no
wider than 5% in normal market conditions.
Indeed the discount narrowed over the
year and the share price is currently trading
close to NAV. ItHis the Company’s intention
to issue shares at a premium, should that
be achieved, as has been done in previous
years. The Board will be seeking approval
from shareholders to renew the issuance
and buy back authorities at the AGM to be
held on 23HApril 2026, further details of
which can be found on page 100.
Gearing
Gearing continued to be actively utilised by
the Portfolio Managers during the year and
ranged between 2% at its lowest and 8% at
its highest. Gearing made a positive
contribution to performance. The Company
continues to utilise contracts for di?erence
(CFDs) as a exible and more cost-e?ective
means of borrowing, and only a small
£23.5Hmillion revolving credit facility has
been retained, both of which have helped
to bring down borrowing costs. Borrowing
continues to be utilised within the wider
context of the derivative overlay strategy
and net gearing will not exceed 30% of NAV.
Schroders combination with
Nuveen
On 12 February 2026 the Board of
Schroders plc announced that they had
agreed the terms of a recommended cash
Sarah MacAulay
Chair
It has been another year
of strong absolute returns
from your Company
which delivered a share
price total return of 19.3%
and a NAV total return of
14.2%
¹ Source: Morningstar to 31 December 2025
Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
6
acquisition by Nuveen, to combine the
twoHbusinesses. The announcement
indicated that the transaction is not
expected to complete until Q4 2026.
Further details are available on the
Schroders website:
https://www.schroders.com/en/global/indivi
dual/nuveeno?er/
Investment Company of the Year
winner
In November 2025 it was announced that
the Company had won the Investment
Week’s Investment Company of the Year
award in the Asia Paci c category. The
shortlists for the awards were constructed
using scores provided by the AIC, using
Morningstar data, with oversight from the
judging panel. Winners were then chosen
by a judging panel where qualitative factors
were also considered.
Outlook
The recent events in the Middle East have
layered further uncertainty onto global
stock markets, already unsettled by Trump’s
inconsistent application of tari?s, concern
over US equity valuations and the
ballooning budgets for investment in AI.
The prospect of elevated oil prices is a
negative for Asian equity markets which
have experienced a period of very strong
outperformance. It casts a shadow over
Asian economic growth prospects,
increases in ationary pressure and
mitigates against prospective interest rate
cuts. Consequently, the top-down picture in
Asia is becoming more challenging with
valuations having reached relatively high
levels versus their history.
However, the Portfolio Managers believe
there to be attractive investment
opportunities across the Asian region.
Schroders’ extensive commitment to the
region with over 40 research analysts,
primarily located in Hong Kong, Singapore
and Shanghai, carrying out more than
2,200 company meetings per year provides
in depth, on the ground analysis of a broad
range of companies and sectors. Our
Portfolio Managers have a proven track
record and a wealth of investment
experience. This, together with our Portfolio
Manager’s derivative overlay strategy which
helps to reduce downside and volatility,
gives us continued con dence in the
strategy.
Results webinar, presentation and
AGM
The Company’s AGM will be held on
Thursday, 23 April 2026 at 12 noon at
1HLondon Wall Place, London EC2Y 5AU.
The AGM will begin with a presentation by
the Portfolio Managers which will also be
available to watch online. To sign up to
watch the presentation online please click
on this link to add this virtual presentation
to your calendar:
https://mybrand.schroders.com/m/76dbfd6
1185?d2b/original/Schroder-Asian-Total-
Inv_-Company-AGM-Presentation-by-
Investment-Manager.ics. Details on how to
watch the presentation are also available on
the Company’s web pages which provide
aHselection of research and insights:
www.schroders.co.uk/satric.
By making the Portfolio Managers’
presentation also available as a webinar,
IHhope that shareholders who are unable to
attend the presentation and AGM, along
with interested parties, will be able to listen
to the Portfolio Managers, and ask them
any further questions.
The formal business of the AGM will
commence immediately following the
presentation by the Portfolio Managers. For
shareholders who are unable to attend the
AGM or those that are joining electronically,
it is strongly encouraged to submit their
proxy votes in advance of the meeting, so
they are registered and recorded at the
AGM.
AGM shareholder communication
and engagement
The Board understands the signi cance of
having regular access to information for
our shareholders. In addition to our
Company web pages, we provide
shareholders with the opportunity to
subscribe to Company email updates.
These emails feature updates about the
Company, along with news, opinion pieces,
and market insights. Details on how to
subscribe can be found on the inside front
cover of this report.
We are pleased to note the strong
contributions of all investment trust
shareholders at recent votes, including
those holding through retail platforms,
across the sector following extensive
proactive shareholder engagement. These
investors have played a key role in the
outcomes of these votes, and we would
encourage them to continue to make their
voices heard in all AGMs going forward.
IfHany of the Company’s shareholders are at
all unsure of how to vote their holding, they
should contact their nominee for
immediate assistance as we, alongside
many others, are keen to see that these
improved participation gures are
sustained across all investment trusts,
including at this Company.
The Board encourages all shareholders to
either attend the AGM or exercise their
voting rights by proxy. Proxy votes can be
submitted electronically through the
registrar’s portal, by post and also by email.
Details are set out in the Explanatory Notes
to the Notice of AGM in this Annual Report.
The Board acknowledges that certain
execution-only investment platforms are
now enabling shareholders to vote
electronically. We encourage shareholders
to utilise this feature where it is available.
The Board is committed to exercising the
highest standard of corporate governance
and accordingly, regularly considers the
views of its shareholders, o?ering to meet
with major shareholders annually. We also
seek to engage with all shareholders where
possible and should you wish to contact
me, you can do so via the Company
Secretary whose details are set out on
pageH108.
Sarah MacAulay
Chair
18 March 2026
Section 1: Overview
7 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
twoHbusinesses. The announcement
indicated that the transaction is not
expected to complete until Q4 2026.
Further details are available on the
Schroders website:
https://www.schroders.com/en/global/indivi
dual/nuveeno?er/
Investment Company of the Year
winner
In November 2025 it was announced that
the Company had won the Investment
Week’s Investment Company of the Year
award in the Asia Paci c category. The
shortlists for the awards were constructed
using scores provided by the AIC, using
Morningstar data, with oversight from the
judging panel. Winners were then chosen
by a judging panel where qualitative factors
were also considered.
Outlook
The recent events in the Middle East have
layered further uncertainty onto global
stock markets, already unsettled by Trump’s
inconsistent application of tari?s, concern
over US equity valuations and the
ballooning budgets for investment in AI.
The prospect of elevated oil prices is a
negative for Asian equity markets which
have experienced a period of very strong
outperformance. It casts a shadow over
Asian economic growth prospects,
increases in ationary pressure and
mitigates against prospective interest rate
cuts. Consequently, the top-down picture in
Asia is becoming more challenging with
valuations having reached relatively high
levels versus their history.
However, the Portfolio Managers believe
there to be attractive investment
opportunities across the Asian region.
Schroders’ extensive commitment to the
region with over 40 research analysts,
primarily located in Hong Kong, Singapore
and Shanghai, carrying out more than
2,200 company meetings per year provides
in depth, on the ground analysis of a broad
range of companies and sectors. Our
Portfolio Managers have a proven track
record and a wealth of investment
experience. This, together with our Portfolio
Manager’s derivative overlay strategy which
helps to reduce downside and volatility,
gives us continued con dence in the
strategy.
Results webinar, presentation and
AGM
The Company’s AGM will be held on
Thursday, 23 April 2026 at 12 noon at
1HLondon Wall Place, London EC2Y 5AU.
The AGM will begin with a presentation by
the Portfolio Managers which will also be
available to watch online. To sign up to
watch the presentation online please click
on this link to add this virtual presentation
to your calendar:
https://mybrand.schroders.com/m/76dbfd6
1185?d2b/original/Schroder-Asian-Total-
Inv_-Company-AGM-Presentation-by-
Investment-Manager.ics. Details on how to
watch the presentation are also available on
the Company’s web pages which provide
aHselection of research and insights:
www.schroders.co.uk/satric.
By making the Portfolio Managers’
presentation also available as a webinar,
IHhope that shareholders who are unable to
attend the presentation and AGM, along
with interested parties, will be able to listen
to the Portfolio Managers, and ask them
any further questions.
The formal business of the AGM will
commence immediately following the
presentation by the Portfolio Managers. For
shareholders who are unable to attend the
AGM or those that are joining electronically,
it is strongly encouraged to submit their
proxy votes in advance of the meeting, so
they are registered and recorded at the
AGM.
AGM shareholder communication
and engagement
The Board understands the signi cance of
having regular access to information for
our shareholders. In addition to our
Company web pages, we provide
shareholders with the opportunity to
subscribe to Company email updates.
These emails feature updates about the
Company, along with news, opinion pieces,
and market insights. Details on how to
subscribe can be found on the inside front
cover of this report.
We are pleased to note the strong
contributions of all investment trust
shareholders at recent votes, including
those holding through retail platforms,
across the sector following extensive
proactive shareholder engagement. These
investors have played a key role in the
outcomes of these votes, and we would
encourage them to continue to make their
voices heard in all AGMs going forward.
IfHany of the Company’s shareholders are at
all unsure of how to vote their holding, they
should contact their nominee for
immediate assistance as we, alongside
many others, are keen to see that these
improved participation gures are
sustained across all investment trusts,
including at this Company.
The Board encourages all shareholders to
either attend the AGM or exercise their
voting rights by proxy. Proxy votes can be
submitted electronically through the
registrar’s portal, by post and also by email.
Details are set out in the Explanatory Notes
to the Notice of AGM in this Annual Report.
The Board acknowledges that certain
execution-only investment platforms are
now enabling shareholders to vote
electronically. We encourage shareholders
to utilise this feature where it is available.
The Board is committed to exercising the
highest standard of corporate governance
and accordingly, regularly considers the
views of its shareholders, o?ering to meet
with major shareholders annually. We also
seek to engage with all shareholders where
possible and should you wish to contact
me, you can do so via the Company
Secretary whose details are set out on
pageH108.
Sarah MacAulay
Chair
18 March 2026
Section 1: Overview
7 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
At 31 December
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Shareholders’ funds (£’000) 195,017 294,426 293,783 357,871 483,548 551,745 457,474 448,484 476,076 529,452
NAV per share, diluted where applicable
(pence) 267.09 354.79 321.43 365.57 479.07 507.24 434.60 461.24 509.04 566.11
Share price (pence) 255.50 362.00 331.00 368.00 489.00 506.00 409.50 440.00 483.00 560.00
Share price (discount)/premium to
NAV per share (%)* (4.3) 2.0 3.0 0.7 2.1 (0.0) (5.8) (4.6) (5.1) (1.1)
Net gearing (%)* 1 7.0 4.5 (0.9) 2.2 5.7 8.3 9.0 7.8 8.5 5.5
For the year ended 31 December 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net revenue return after taxation (£’000) 3,940 4,183 6,303 7,653 8,308 9,809 13,466 10,497 9,164 9,178
Net revenue return per share (pence) 5.40 5.48 7.18 8.10 8.46 9.25 12.47 10.26 9.61 9.81
Dividends per share (pence) 4.50 4.80 6.20 6.50 7.10 8.50 11.00 11.50 11.50 11.50
Ongoing charges (%)* 1.00 0.96 0.86 0.85 0.87 0.84 0.82 0.87 0.90 0.80
Performance 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
NAV per share total return (%)* 28.5 34.9 (8.1) 15.7 33.7 7.4 (12.7) 8.8 13.0 14.2
Share price total return (%)* 37.0 43.9 (7.3) 13.1 35.6 4.9 (17.4) 10.6 12.6 19.3
Reference Index 2 total return (%) 27.3 25.1 (8.6) 14.6 18.7 (2.0) (7.1) 1.3 12.1 20.6
1 Net gearing represents borrowings including CFDs used for investment purposes, less cash, expressed as a percentage of net assets.
2 MSCI AC Asia ex-Japan Index (with net income reinvested), sterling adjusted.
* Alternative performance measures. Further details can be found on pages 105 and 106.
Ten-Year Financial Record
Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
8
Shareholders’ funds (£’000) 195,017 294,426 293,783 357,871 483,548 551,745 457,474 448,484 476,076 529,452
NAV per share, diluted where applicable
(pence) 267.09 354.79 321.43 365.57 479.07 507.24 434.60 461.24 509.04 566.11
Share price (pence) 255.50 362.00 331.00 368.00 489.00 506.00 409.50 440.00 483.00 560.00
Share price (discount)/premium to
NAV per share (%)* (4.3) 2.0 3.0 0.7 2.1 (0.0) (5.8) (4.6) (5.1) (1.1)
Net gearing (%)* 1 7.0 4.5 (0.9) 2.2 5.7 8.3 9.0 7.8 8.5 5.5
For the year ended 31 December 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net revenue return after taxation (£’000) 3,940 4,183 6,303 7,653 8,308 9,809 13,466 10,497 9,164 9,178
Net revenue return per share (pence) 5.40 5.48 7.18 8.10 8.46 9.25 12.47 10.26 9.61 9.81
Dividends per share (pence) 4.50 4.80 6.20 6.50 7.10 8.50 11.00 11.50 11.50 11.50
Ongoing charges (%)* 1.00 0.96 0.86 0.85 0.87 0.84 0.82 0.87 0.90 0.80
Performance 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
NAV per share total return (%)* 28.5 34.9 (8.1) 15.7 33.7 7.4 (12.7) 8.8 13.0 14.2
Share price total return (%)* 37.0 43.9 (7.3) 13.1 35.6 4.9 (17.4) 10.6 12.6 19.3
Reference Index 2 total return (%) 27.3 25.1 (8.6) 14.6 18.7 (2.0) (7.1) 1.3 12.1 20.6
1 Net gearing represents borrowings including CFDs used for investment purposes, less cash, expressed as a percentage of net assets.
2 MSCI AC Asia ex-Japan Index (with net income reinvested), sterling adjusted.
* Alternative performance measures. Further details can be found on pages 105 and 106.
Ten-Year Financial Record
Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Section 1: Overview
8
1
Alternative performance measure. Source: Morningstar.
NAV per share, share price and Reference Index total returns for the ten years ended 31 December 2025
Source: Morningstar. Rebased to 100 at 31 December 2015.
Ten year share price (discount)/premium to NAV per share 1
100
150
200
250
%
300
350
400
Dec-25 Dec-24 Dec-23 Dec-22 Dec-21 Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Dec-15
NAV total return Share price total return Reference Index total return
–6
–5
–4
–3
–2
–1
%
0
1
2
3
Dec-25 Dec-24 Dec-23 Dec-22 Dec-21 Dec-20 Dec-19 Dec-18 Dec-17 Dec-16
Section 1: Overview
9 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
NAV per share, share price and Reference Index total returns for the ten years ended 31 December 2025
Source: Morningstar. Rebased to 100 at 31 December 2015.
Ten year share price (discount)/premium to NAV per share 1
100
150
200
250
%
300
350
400
Dec-25 Dec-24 Dec-23 Dec-22 Dec-21 Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Dec-15
NAV total return Share price total return Reference Index total return
–6
–5
–4
–3
–2
–1
%
0
1
2
3
Dec-25 Dec-24 Dec-23 Dec-22 Dec-21 Dec-20 Dec-19 Dec-18 Dec-17 Dec-16
Section 1: Overview
9 Schroder Asian Total Return Investment Company plcDAnnual Report and Financial Statements 2025
Beijing Skyline, China
Schroder Asian Total Return Investment Company plc T Annual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
10
Schroder Asian Total Return Investment Company plc T Annual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
10
Section 2: Investment Manager’s Review
Portfolio Managers’ Report 12
Top Ten Investments 26
Investment Portfolio 28
Investment Process 31
ESG Integration 33
Section 2: Investment Manager’s Review
11 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Portfolio Managers’ Report 12
Top Ten Investments 26
Investment Portfolio 28
Investment Process 31
ESG Integration 33
Section 2: Investment Manager’s Review
11 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
2025 Review
2025 was a strong year for most Asian stockmarkets, however it was also a volatile year with a large dispersion of returns across both
sectors and countries. The Korean and Taiwanese stockmarkets, with their high weightings in semiconductor and related stocks,
performed best given many companies are bene ciaries of booming arti cial intelligence (“AI”) related capital expenditure. The region is
also seeing improving corporate governance, with the Korean market seeing a notable re-rating after the new Government introduced
a “Value-Up” programme to promote better protection of minority investors and made changes to the tax system to encourage the
payment of dividends. In China we are also are starting to see better capital allocation as companies in some sectors move away from
perennial investments in new capacity and instead start to pay more dividends or in the case of internet companies aggressively
buyback shares. Overall, whilst India and select ASEAN markets lagged as economic momentum was more subdued, we see the
combination of positive cyclical factors around AI and better capital allocation as supportive for the medium-term outlook for returns
from the major stockmarkets in Asia.
As we close out 2025, it is appropriate to take stock of our performance over the calendar year and re ect candidly on the principal
drivers of returns. Whilst the Company generated strong absolute returns in 2025, your Portfolio Managers were somewhat
disappointed that the Company underperformed the Reference Index. The principal headwinds to the Company’s relative performance
came from three areas. Firstly, not participating or being too cautious on the Korean “Value-Up” programme, secondly stock selection in
Hong Kong and China and nally some of the dramatic stocks moves around AI disruption and perceived AI losers and winners, proved
to be a drag on performance.
Chart 1: Performance attribution of the Company in 2025
–300 –200 -100 0 100 200
South Korea
Philippines
Hong Kong
China
Vietnam
Indonesia
Australia
Thailand
United States
New Zealand
United Kingdom
Malaysia
Singapore
India
Cash and Gearing
Taiwan (Republic of China) 111
102
38
38
19
16
12
–4
–26
–30
–95
–115
–119
–136
–137
–244
Country attribution – 1Y
-500 -400 -300 -200 -100 0 100 200
Consumer Discretionary
Industrials
Health Care
Financials
Derivatives
Consumer Staples
Materials
Energy
Real Estate
Utilities
Information Technology
Communication
Cash and Gearing 102
–46
–23
–201
–244
–455
Sector attribution – 1Y
7
18
32
32
56
73
77
Robin Parbrook Lee King Fuei
Portfolio Managers’ Report
Source: Schroders, Aladdin. 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.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
12
2025 was a strong year for most Asian stockmarkets, however it was also a volatile year with a large dispersion of returns across both
sectors and countries. The Korean and Taiwanese stockmarkets, with their high weightings in semiconductor and related stocks,
performed best given many companies are bene ciaries of booming arti cial intelligence (“AI”) related capital expenditure. The region is
also seeing improving corporate governance, with the Korean market seeing a notable re-rating after the new Government introduced
a “Value-Up” programme to promote better protection of minority investors and made changes to the tax system to encourage the
payment of dividends. In China we are also are starting to see better capital allocation as companies in some sectors move away from
perennial investments in new capacity and instead start to pay more dividends or in the case of internet companies aggressively
buyback shares. Overall, whilst India and select ASEAN markets lagged as economic momentum was more subdued, we see the
combination of positive cyclical factors around AI and better capital allocation as supportive for the medium-term outlook for returns
from the major stockmarkets in Asia.
As we close out 2025, it is appropriate to take stock of our performance over the calendar year and re ect candidly on the principal
drivers of returns. Whilst the Company generated strong absolute returns in 2025, your Portfolio Managers were somewhat
disappointed that the Company underperformed the Reference Index. The principal headwinds to the Company’s relative performance
came from three areas. Firstly, not participating or being too cautious on the Korean “Value-Up” programme, secondly stock selection in
Hong Kong and China and nally some of the dramatic stocks moves around AI disruption and perceived AI losers and winners, proved
to be a drag on performance.
Chart 1: Performance attribution of the Company in 2025
–300 –200 -100 0 100 200
South Korea
Philippines
Hong Kong
China
Vietnam
Indonesia
Australia
Thailand
United States
New Zealand
United Kingdom
Malaysia
Singapore
India
Cash and Gearing
Taiwan (Republic of China) 111
102
38
38
19
16
12
–4
–26
–30
–95
–115
–119
–136
–137
–244
Country attribution – 1Y
-500 -400 -300 -200 -100 0 100 200
Consumer Discretionary
Industrials
Health Care
Financials
Derivatives
Consumer Staples
Materials
Energy
Real Estate
Utilities
Information Technology
Communication
Cash and Gearing 102
–46
–23
–201
–244
–455
Sector attribution – 1Y
7
18
32
32
56
73
77
Robin Parbrook Lee King Fuei
Portfolio Managers’ Report
Source: Schroders, Aladdin. 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.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
12
Within Asia, AI returns were highly concentrated in China, Korea, and Taiwan. Of these, our zero weight in Alibaba (subsequently added
a half index weight position, narrowing the underweight) was a signi cant detractor, costing the portfolio over 1% of relative
performance. Alibaba’s share price strength was driven largely by renewed optimism surrounding its cloud business following the
“DeepSeek moment” in late January 2025, which catalysed a sharp shift in investor sentiment toward China’s AI capabilities. This
re-rating occurred despite ongoing deterioration in earnings, resulting in a pronounced divergence between fundamentals and share
price performance. While our overweights in Tencent and NetEase in China, and our zero-weight positions in JD.com and Xiaomi,
contributed positively, they were insuLcient to oSset the Alibaba drag, leaving the China AI complex as a net detractor to performance.
Chart 2: Alibaba’s share price has signi cantly diverged from its fundamentals
1400
1300
1200
1100
1000
900
800
700
600
500
90
85
80
75
70
65
60
55
50
Share price (HK$) EPS (adj) (26Y Est)
Sep-24
Oct-24
Nov-24
Nov-24
Dec-24
Jan-25
Jan-25
Feb-25
Mar-25
Apr-25
Apr-25
May-25
Jun-25
Jun-25
Jul-25
Aug-25
Aug-25
Sep-25
Source: Bloomberg, LSEG, as of 24 September 2025 Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell
any nancial instrument/securities or adopt any investment strategy.
In Korea, our AI experience was similarly unforgiving. Our decision to reduce Samsung Electronics earlier in the year, driven by
concerns over repeated Nvidia certi cation delays, proved poorly timed. A sharp acceleration in AI-driven memory demand in the latter
part of the year led to severe supply shortages and a powerful rally in both Samsung Electronics and SK Hynix. While the Company was
well positioned in the latter, our exposure was insuLcient to counterbalance the opportunity cost of not owning Samsung Electronics.
Compounding this, several AI-adjacent names where we have no exposure, such as SK Square and HD Hyundai Electric, also rose
sharply as enthusiasm and often froth and hubris spread across the ecosystem. Although our Taiwan AI exposure, particularly Chroma
ATE, provided some oSset, we estimated the AI thematic as a whole detracted approximately 1.5% from performance relative to the
Company’s reference index.
Our challenges were compounded by our broader positioning in Korea, which emerged as Asia’s best-performing equity market in
2025, with returns exceeding 87%, far outpacing that of the second and third best performing markets of Taiwan (+29%) and Hong
Kong (+26%). Excluding AI, the key drivers were the Value-Up programme (corporate governance reform), shipping, and defence. Our
minimal exposure to the Value-Up theme was the most painful. While no single stock in icted outsized damage, the cumulative eSect
of numerous small omissions resulted in a 0.5% relative drag to performance. Having heard stories of Korea improving corporate
governance multiple times over our 30 year plus investment careers we were perhaps, unsurprisingly, sceptical. But, it does look like
there is an element of “this time is diSerent” with measures to protect minority investors and encourage better capital allocation and
higher dividends being enshrined in law. After a painful re-appraisal we added to our Korean weightings in the second half of the year.
Section 2: Investment Manager’s Review
13 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
a half index weight position, narrowing the underweight) was a signi cant detractor, costing the portfolio over 1% of relative
performance. Alibaba’s share price strength was driven largely by renewed optimism surrounding its cloud business following the
“DeepSeek moment” in late January 2025, which catalysed a sharp shift in investor sentiment toward China’s AI capabilities. This
re-rating occurred despite ongoing deterioration in earnings, resulting in a pronounced divergence between fundamentals and share
price performance. While our overweights in Tencent and NetEase in China, and our zero-weight positions in JD.com and Xiaomi,
contributed positively, they were insuLcient to oSset the Alibaba drag, leaving the China AI complex as a net detractor to performance.
Chart 2: Alibaba’s share price has signi cantly diverged from its fundamentals
1400
1300
1200
1100
1000
900
800
700
600
500
90
85
80
75
70
65
60
55
50
Share price (HK$) EPS (adj) (26Y Est)
Sep-24
Oct-24
Nov-24
Nov-24
Dec-24
Jan-25
Jan-25
Feb-25
Mar-25
Apr-25
Apr-25
May-25
Jun-25
Jun-25
Jul-25
Aug-25
Aug-25
Sep-25
Source: Bloomberg, LSEG, as of 24 September 2025 Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell
any nancial instrument/securities or adopt any investment strategy.
In Korea, our AI experience was similarly unforgiving. Our decision to reduce Samsung Electronics earlier in the year, driven by
concerns over repeated Nvidia certi cation delays, proved poorly timed. A sharp acceleration in AI-driven memory demand in the latter
part of the year led to severe supply shortages and a powerful rally in both Samsung Electronics and SK Hynix. While the Company was
well positioned in the latter, our exposure was insuLcient to counterbalance the opportunity cost of not owning Samsung Electronics.
Compounding this, several AI-adjacent names where we have no exposure, such as SK Square and HD Hyundai Electric, also rose
sharply as enthusiasm and often froth and hubris spread across the ecosystem. Although our Taiwan AI exposure, particularly Chroma
ATE, provided some oSset, we estimated the AI thematic as a whole detracted approximately 1.5% from performance relative to the
Company’s reference index.
Our challenges were compounded by our broader positioning in Korea, which emerged as Asia’s best-performing equity market in
2025, with returns exceeding 87%, far outpacing that of the second and third best performing markets of Taiwan (+29%) and Hong
Kong (+26%). Excluding AI, the key drivers were the Value-Up programme (corporate governance reform), shipping, and defence. Our
minimal exposure to the Value-Up theme was the most painful. While no single stock in icted outsized damage, the cumulative eSect
of numerous small omissions resulted in a 0.5% relative drag to performance. Having heard stories of Korea improving corporate
governance multiple times over our 30 year plus investment careers we were perhaps, unsurprisingly, sceptical. But, it does look like
there is an element of “this time is diSerent” with measures to protect minority investors and encourage better capital allocation and
higher dividends being enshrined in law. After a painful re-appraisal we added to our Korean weightings in the second half of the year.
Section 2: Investment Manager’s Review
13 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Chart 4: Being on the wrong side of market narratives led to valuation de-rating despite earnings growth in
select China and Hong Kong holdings
+15.0
+10.0
+5.0
+0.0
–5.0
–10.0
–15.0
–20.0
–25.0
Techtronic Trip.com
Earnings growth Valuation change Dividend return Total return
Source: Factset, Schroders. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from then may go down as
well as up and investors may not get back the amounts originally investors. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a
recommendation to buy or sell any nancial instrument/securities or adopt any investment strategy.
Chart 3: We prefer to express our defence exposure through Indian defence electronics leader Bharat
Electronics, which is bene ting from sustained order in ows and a strong backlog
1200
1000
800
600
400
200
0
700
600
500
400
300
200
100
0
Order backlog (Rs’bn) Order inflows (Rs’bn)
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY26E
FY27E
Source: Nomura.
Our lack of exposure to Korean defence stocks also detracted, though with an important nuance. We remain rm believers in
aRstructural uplift in global defence spending, but continue to view Korean defence equities as awed vehicles for expressing that view
given persistent governance shortcomings. The widely publicised controversy surrounding Hanwha Aerospace’s large rights oSering
earlier in the year, following signi cant cash out ows to a non-urgent aLliate transaction, only reinforced this conviction. Instead, we
have chosen to express the defence thematic through India, particularly Bharat Electronics, resulting in a roughly neutral contribution
from defence at the portfolio level.
The third source of underperformance stemmed from our stock selection in China and Hong Kong. Continued weakness in Chinese
consumption, lingering regulatory overhangs in education and gaming, and being positioned on the wrong side of 2025’s dominant
market narratives (primarily AI capital expenditure) weighed on our holdings in Techtronic Industries, Swire Paci c, Galaxy
Entertainment, and Trip.com even though all were up in absolute terms. In several cases, share price performance diverged from
fundamentals, with valuation de-rating more than oSsetting earnings growth during the year. We continue to hold these positions
given our analysts’ conviction in their long-term fundamentals, despite ongoing near-term headwinds. Based on current share prices
and our analysts’ calculations, these holdings continue to oSer double-digit upside to their fair values.
Modest gains from stock selection in Taiwan were oSset by Australian healthcare holdings. Meanwhile our positive stock selection in
India was largely neutralised by positions in Vietnamese IT services provider FPT, Indonesian Bank Mandiri, and Thai private healthcare
giant Bangkok Dusit. The Company’s models used to determine whether to deploy hedging and gearing were mostly neutral on Asian
stockmarkets during the year so we deployed little hedging and moderate gearing. Therefore, the impact from this area on
performance was negligible.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
14
select China and Hong Kong holdings
+15.0
+10.0
+5.0
+0.0
–5.0
–10.0
–15.0
–20.0
–25.0
Techtronic Trip.com
Earnings growth Valuation change Dividend return Total return
Source: Factset, Schroders. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from then may go down as
well as up and investors may not get back the amounts originally investors. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a
recommendation to buy or sell any nancial instrument/securities or adopt any investment strategy.
Chart 3: We prefer to express our defence exposure through Indian defence electronics leader Bharat
Electronics, which is bene ting from sustained order in ows and a strong backlog
1200
1000
800
600
400
200
0
700
600
500
400
300
200
100
0
Order backlog (Rs’bn) Order inflows (Rs’bn)
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY26E
FY27E
Source: Nomura.
Our lack of exposure to Korean defence stocks also detracted, though with an important nuance. We remain rm believers in
aRstructural uplift in global defence spending, but continue to view Korean defence equities as awed vehicles for expressing that view
given persistent governance shortcomings. The widely publicised controversy surrounding Hanwha Aerospace’s large rights oSering
earlier in the year, following signi cant cash out ows to a non-urgent aLliate transaction, only reinforced this conviction. Instead, we
have chosen to express the defence thematic through India, particularly Bharat Electronics, resulting in a roughly neutral contribution
from defence at the portfolio level.
The third source of underperformance stemmed from our stock selection in China and Hong Kong. Continued weakness in Chinese
consumption, lingering regulatory overhangs in education and gaming, and being positioned on the wrong side of 2025’s dominant
market narratives (primarily AI capital expenditure) weighed on our holdings in Techtronic Industries, Swire Paci c, Galaxy
Entertainment, and Trip.com even though all were up in absolute terms. In several cases, share price performance diverged from
fundamentals, with valuation de-rating more than oSsetting earnings growth during the year. We continue to hold these positions
given our analysts’ conviction in their long-term fundamentals, despite ongoing near-term headwinds. Based on current share prices
and our analysts’ calculations, these holdings continue to oSer double-digit upside to their fair values.
Modest gains from stock selection in Taiwan were oSset by Australian healthcare holdings. Meanwhile our positive stock selection in
India was largely neutralised by positions in Vietnamese IT services provider FPT, Indonesian Bank Mandiri, and Thai private healthcare
giant Bangkok Dusit. The Company’s models used to determine whether to deploy hedging and gearing were mostly neutral on Asian
stockmarkets during the year so we deployed little hedging and moderate gearing. Therefore, the impact from this area on
performance was negligible.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
14
OUTLOOK FOR THE YEAR OF THE HORSE
After strong gains in 2025 we are relatively cautious on Asian stockmarkets. Valuations are now high versus history and Asian earnings
growth is increasingly dependent on one sector – AI related capital expenditure. Balancing this is for the major economies (China, India,
Australia, Korea, Taiwan, Singapore, Hong Kong) a good or at least stable economic backdrop, and in most cases relatively low
government debt, good fiscal positions and current account surpluses. Our key concerns are instead around valuations and the
earnings outlook, particularly in those sectors exhibiting signs of AI related froth. As we will discuss we have been gradually positioning
the Company more defensively and are now potentially looking to add some hedging strategies if option pricing becomes more
attractive. Overall, we expect 2026 will see more muted returns given the current level of valuations, which in our opinion do not
necessarily reflect potential underlying risks.
The two sections below firstly discuss our views on some of the key stockmarkets in Asia and secondly our top-down hedging and
gearing models. For readers wanting a quick summary we would highlight the clusters below, which give a good snapshot of how to
think about Asian equities and how the Company is positioned. Asian equities can be divided into four broad areas which are relatively
equally weighted in the Company’s reference benchmark.
Cluster One: China/Hong Kong
First there is the Hong Kong/China cluster which is more idiosyncratic and obviously comes with geopolitical risks. The trust remains
underweight China but our exposure has risen over the last 12 months as we found new stock opportunities, and in some cases better
capital return policies have improved the investment case.
Cluster Two: Korea/Taiwan
The second cluster is Korea and Taiwan, this is effectively a technology/semiconductor cluster. Historically the fund has been overweight
technology stocks. However, we have been trimming positions as AI related hype has pushed valuations for many stocks above our long
term fair values. The trust is now slightly underweight here.
Cluster Three: Australia/Singapore
The third cluster is Australia and Singapore. After taking profits in technology stocks, we increased exposure to more defensive names
in Australia and Singapore, within what we refer to as our “yield/income cluster”. The Company is now quite overweight these markets.
Cluster Four: India/ASEAN
The last cluster is India and ASEAN the supposed “growth” markets in Asia. In ASEAN we have turned more cautious as politics and
geopolitical trends are increasingly unfavourable for the long-term earnings outlook. On India we remain positive at a macro-economic
level but stockmarket valuations are expensive and earnings expectations unrealistic. We remain underweight India but we would look
to add were we to see a further correction in the stockmarket.
Source: Schroders, December 2025.
For illustrative purposes only and does not constitute to any recommendations to buy or sell the above mentioned security/sector/country.
China/Hong Kong
Structurally challenged due to China’s
investment driven growth model which leads
to overcapacity and poor ROIC.
Some good companies but valuations are not
as low as the bulls will claim.
Korea/Taiwan
Principally technology-heavy (semiconductors)
stock markets.
Attractive companies with strong IP – cyclical
but with growth.
Does “Value-Up” lead to a dramatic change in
Korea? We doubt it.
Australia/Singapore
Well-regulated stock markets in countries
with strong secular attractions and good
capitalist underpinnings.
Lower growth but lots of strong dividend
yields and attractive total returns.
India/ASEAN
Genuine emerging markets.
Strong GDP growth but more volatile politics
and regulation.
Positive long-term structural outlook in India,
and perhaps Philippines, Indonesia.
Valuations in India now expensive.
Section 2: Investment Manager’s Review
15 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
After strong gains in 2025 we are relatively cautious on Asian stockmarkets. Valuations are now high versus history and Asian earnings
growth is increasingly dependent on one sector – AI related capital expenditure. Balancing this is for the major economies (China, India,
Australia, Korea, Taiwan, Singapore, Hong Kong) a good or at least stable economic backdrop, and in most cases relatively low
government debt, good fiscal positions and current account surpluses. Our key concerns are instead around valuations and the
earnings outlook, particularly in those sectors exhibiting signs of AI related froth. As we will discuss we have been gradually positioning
the Company more defensively and are now potentially looking to add some hedging strategies if option pricing becomes more
attractive. Overall, we expect 2026 will see more muted returns given the current level of valuations, which in our opinion do not
necessarily reflect potential underlying risks.
The two sections below firstly discuss our views on some of the key stockmarkets in Asia and secondly our top-down hedging and
gearing models. For readers wanting a quick summary we would highlight the clusters below, which give a good snapshot of how to
think about Asian equities and how the Company is positioned. Asian equities can be divided into four broad areas which are relatively
equally weighted in the Company’s reference benchmark.
Cluster One: China/Hong Kong
First there is the Hong Kong/China cluster which is more idiosyncratic and obviously comes with geopolitical risks. The trust remains
underweight China but our exposure has risen over the last 12 months as we found new stock opportunities, and in some cases better
capital return policies have improved the investment case.
Cluster Two: Korea/Taiwan
The second cluster is Korea and Taiwan, this is effectively a technology/semiconductor cluster. Historically the fund has been overweight
technology stocks. However, we have been trimming positions as AI related hype has pushed valuations for many stocks above our long
term fair values. The trust is now slightly underweight here.
Cluster Three: Australia/Singapore
The third cluster is Australia and Singapore. After taking profits in technology stocks, we increased exposure to more defensive names
in Australia and Singapore, within what we refer to as our “yield/income cluster”. The Company is now quite overweight these markets.
Cluster Four: India/ASEAN
The last cluster is India and ASEAN the supposed “growth” markets in Asia. In ASEAN we have turned more cautious as politics and
geopolitical trends are increasingly unfavourable for the long-term earnings outlook. On India we remain positive at a macro-economic
level but stockmarket valuations are expensive and earnings expectations unrealistic. We remain underweight India but we would look
to add were we to see a further correction in the stockmarket.
Source: Schroders, December 2025.
For illustrative purposes only and does not constitute to any recommendations to buy or sell the above mentioned security/sector/country.
China/Hong Kong
Structurally challenged due to China’s
investment driven growth model which leads
to overcapacity and poor ROIC.
Some good companies but valuations are not
as low as the bulls will claim.
Korea/Taiwan
Principally technology-heavy (semiconductors)
stock markets.
Attractive companies with strong IP – cyclical
but with growth.
Does “Value-Up” lead to a dramatic change in
Korea? We doubt it.
Australia/Singapore
Well-regulated stock markets in countries
with strong secular attractions and good
capitalist underpinnings.
Lower growth but lots of strong dividend
yields and attractive total returns.
India/ASEAN
Genuine emerging markets.
Strong GDP growth but more volatile politics
and regulation.
Positive long-term structural outlook in India,
and perhaps Philippines, Indonesia.
Valuations in India now expensive.
Section 2: Investment Manager’s Review
15 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
What began as an ad hoc exercise examining the consensus market views of sell-side strategists 11 years ago has become aRregular
feature of our annual Year-of-the-Chinese-Zodiac reports over the past four years. This year, we once again continue our “don’t be
aRlemming” study by starting with a post-mortem of how sell-side consensus views at the beginning of the year have fared in 2025.
And, Rin a fashion that has become increasingly familiar, consensus appears to have been mostly wrong yet again.
SECTION 1 - DON’T BE A LEMMING: BACKING THE RIGHT HORSE - MARKET VIEWS
Source: Schroders. This image is AI generated.
Source: Factset, Schroders, Bloomberg, various broker reports. 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.
Chart 5: A post-mortem of sell-side strategists consensus calls versus 2025 market relative returns
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
16
Section 2: Investment Manager’s Review
feature of our annual Year-of-the-Chinese-Zodiac reports over the past four years. This year, we once again continue our “don’t be
aRlemming” study by starting with a post-mortem of how sell-side consensus views at the beginning of the year have fared in 2025.
And, Rin a fashion that has become increasingly familiar, consensus appears to have been mostly wrong yet again.
SECTION 1 - DON’T BE A LEMMING: BACKING THE RIGHT HORSE - MARKET VIEWS
Source: Schroders. This image is AI generated.
Source: Factset, Schroders, Bloomberg, various broker reports. 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.
Chart 5: A post-mortem of sell-side strategists consensus calls versus 2025 market relative returns
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
16
Section 2: Investment Manager’s Review
Looking back at the outcomes, the results were telling. With the exception of Thailand, where the market most disliked by sell-side
strategists also went on to be the worst underperformer, most markets followed a fairly predictable pattern. The more favoured
aRmarket was at the start of the year, the worse it tended to perform, and vice versa. It is therefore unsurprising that India, a market
that seven out of nine strategists held an overweight position in, ended up underperforming the region by around -20%, making it the
worst-performing major market in Asia. In contrast, Korea, the second-most unloved market last year, delivered absolute returns of over
89%, outperforming the region by a whopping +50%.
Against that backdrop, the natural question for 2026 is what are consensus strategists recommending this time around, and what sits
behind those calls.
We begin with the two markets that sell-side strategists favour most. And it looks like, undeterred by their experience last year, India
has once again been identi ed as one of their preferred markets, with all but one advocating an overweight stance. Much of this
optimism appears to rest on expectations of an earnings recovery following a period of moderation, supported by policy easing,
resilient domestic demand, and a long-term reform narrative. Importantly, with global investor positioning still relatively light, some
strategists believe the market could become increasingly sensitive to incremental in ows should earnings momentum return.
How much of this optimism is already re ected in current share prices, however, remains a key question from your portfolio managers’
perspective. On almost all valuation measures, Indian equities are now trading at the upper end of their historical range, suggesting
that expectations for an improvement in fundamentals are already demanding. Whether these expectations are ultimately met will
depend in part on how current geopolitical uncertainties evolve. In mid-January, Indian exports to the US were brie y threatened with
aRsharp escalation in import tariSs after President Trump backed a Senate bill proposing duties of up to 500% on goods from countries
purchasing Russian oil. Had it been enacted, the bill would have materially raised the risk of a near-freeze in trade between India and its
largest export market, coming on top of the already steep US duties imposed last year.
More recently, the two countries have struck an agreement to reduce tariSs on made-in-India goods to 18%, from 50%, while India will
reciprocally cut tariSs on US imports to zero from an average rate of 17%. As with most things Trump, however, the situation remains
uid. Against this backdrop, your portfolio managers continue to view India as a stock-picker’s market, where genuinely interesting
bottom-up opportunities still exist, but only at the right valuations.
Chart 6: Breakdown of sell-side Asian strategists’ 2026 calls by market
Source: Bloomberg, Schroders, various broker reports. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or
sell any nancial instrument/securities or adopt any investment strategy.
75%
29%
50%
29%
13%
50%
29%
88%
25%
57%
38%
38%
43%
63%
14%
38%
71%
14%
13%
63%
29%
25%
86%
13%
13%
China
Hong Kong
Korea
Taiwan
Singapore
Malaysia
Thailand
Indonesia
Philippines
India
Overweight Neutral Underweight
Section 2: Investment Manager’s Review
17 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
strategists also went on to be the worst underperformer, most markets followed a fairly predictable pattern. The more favoured
aRmarket was at the start of the year, the worse it tended to perform, and vice versa. It is therefore unsurprising that India, a market
that seven out of nine strategists held an overweight position in, ended up underperforming the region by around -20%, making it the
worst-performing major market in Asia. In contrast, Korea, the second-most unloved market last year, delivered absolute returns of over
89%, outperforming the region by a whopping +50%.
Against that backdrop, the natural question for 2026 is what are consensus strategists recommending this time around, and what sits
behind those calls.
We begin with the two markets that sell-side strategists favour most. And it looks like, undeterred by their experience last year, India
has once again been identi ed as one of their preferred markets, with all but one advocating an overweight stance. Much of this
optimism appears to rest on expectations of an earnings recovery following a period of moderation, supported by policy easing,
resilient domestic demand, and a long-term reform narrative. Importantly, with global investor positioning still relatively light, some
strategists believe the market could become increasingly sensitive to incremental in ows should earnings momentum return.
How much of this optimism is already re ected in current share prices, however, remains a key question from your portfolio managers’
perspective. On almost all valuation measures, Indian equities are now trading at the upper end of their historical range, suggesting
that expectations for an improvement in fundamentals are already demanding. Whether these expectations are ultimately met will
depend in part on how current geopolitical uncertainties evolve. In mid-January, Indian exports to the US were brie y threatened with
aRsharp escalation in import tariSs after President Trump backed a Senate bill proposing duties of up to 500% on goods from countries
purchasing Russian oil. Had it been enacted, the bill would have materially raised the risk of a near-freeze in trade between India and its
largest export market, coming on top of the already steep US duties imposed last year.
More recently, the two countries have struck an agreement to reduce tariSs on made-in-India goods to 18%, from 50%, while India will
reciprocally cut tariSs on US imports to zero from an average rate of 17%. As with most things Trump, however, the situation remains
uid. Against this backdrop, your portfolio managers continue to view India as a stock-picker’s market, where genuinely interesting
bottom-up opportunities still exist, but only at the right valuations.
Chart 6: Breakdown of sell-side Asian strategists’ 2026 calls by market
Source: Bloomberg, Schroders, various broker reports. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or
sell any nancial instrument/securities or adopt any investment strategy.
75%
29%
50%
29%
13%
50%
29%
88%
25%
57%
38%
38%
43%
63%
14%
38%
71%
14%
13%
63%
29%
25%
86%
13%
13%
China
Hong Kong
Korea
Taiwan
Singapore
Malaysia
Thailand
Indonesia
Philippines
India
Overweight Neutral Underweight
Section 2: Investment Manager’s Review
17 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
And while India remains a rm favourite, China has emerged as the most favoured market overall this year. Around three-quarters of
strategists now hold a positive view, with virtually no outright detractors. This re ects a growing conviction that China has now moved
into a recovery story, oSering a more attractive balance of risk and reward. Low market valuations, ongoing policy support, and
improving earnings expectations underpin this consensus view, with targeted stimulus, margin-restoration initiatives such as
antiRinvolution policies, and selective upgrades across technology and manufacturing seen as key contributors.
Your portfolio managers, however, continue to view China equities with cautious selectivity. While valuations for some stocks,
particularly in consumer-related sectors, have come down and earnings expectations appear more realistic, the broader economy
remains weighed down by structural headwinds, including a prolonged property downturn, de ationary pressures, and weak consumer
con dence. InRour view, the opportunity set here remains largely stock-speci c, with a preference for selected internet platforms and
companies with strong intellectual property and capital return discipline, while avoiding sectors plagued by overcapacity, opaque
balance sheets, or policy-driven excesses.
Chart 7: MSCI India’s price-to-book is now at the top-end of its historical trading range, suggesting that
expectations are already high
Source: MSCI, Factset, Schroders.
3.75
3.25
2.75
2.25
1.75
Dec-10 Dec-12 Dec-14 Dec-16 Dec-18 Dec-20 Dec-22 Dec-22
Chart 8: Trade between India and US will freeze if duties of up to 500% are imposed
Source: Ministry of Commerce and Nomura Global Economics
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
18
strategists now hold a positive view, with virtually no outright detractors. This re ects a growing conviction that China has now moved
into a recovery story, oSering a more attractive balance of risk and reward. Low market valuations, ongoing policy support, and
improving earnings expectations underpin this consensus view, with targeted stimulus, margin-restoration initiatives such as
antiRinvolution policies, and selective upgrades across technology and manufacturing seen as key contributors.
Your portfolio managers, however, continue to view China equities with cautious selectivity. While valuations for some stocks,
particularly in consumer-related sectors, have come down and earnings expectations appear more realistic, the broader economy
remains weighed down by structural headwinds, including a prolonged property downturn, de ationary pressures, and weak consumer
con dence. InRour view, the opportunity set here remains largely stock-speci c, with a preference for selected internet platforms and
companies with strong intellectual property and capital return discipline, while avoiding sectors plagued by overcapacity, opaque
balance sheets, or policy-driven excesses.
Chart 7: MSCI India’s price-to-book is now at the top-end of its historical trading range, suggesting that
expectations are already high
Source: MSCI, Factset, Schroders.
3.75
3.25
2.75
2.25
1.75
Dec-10 Dec-12 Dec-14 Dec-16 Dec-18 Dec-20 Dec-22 Dec-22
Chart 8: Trade between India and US will freeze if duties of up to 500% are imposed
Source: Ministry of Commerce and Nomura Global Economics
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
18
Moving from the most favoured to the least favoured markets, Thailand sits at the other end of the spectrum. Here, a weak domestic
demand outlook continues to be compounded by policy and political uncertainty. Concerns centre on the country’s high household
leverage, subdued consumption, and limited private investment, all of which are expected to keep earnings under pressure. At the
same time, unclear policy direction keeps risk premiums elevated despite low valuations. Unlike other markets showing early signs of
recovery, most strategists see little evidence of a clear earnings inflection in Thailand, reinforcing the view that cheapness alone is
insufficient to drive performance in the face of structural and governance constraints.
On this occasion, there is little for your portfolio managers to significantly disagree with. In our view, Thailand remains one of the less
compelling markets in the region, reflecting an economy that continues to lack a clear catalyst for recovery. For one, tourism has yet to
return to pre-Covid levels and has softened again recently, weighing on the broader services economy. And while the current account
surplus continues to support the baht, this largely reflects weak domestic demand and subdued imports rather than underlying
strength. Any meaningful rebound in activity would therefore risk eroding this support rather than reinforcing it. More importantly,
domestic conditions remain soft, with credit growth effectively stalled, wage growth flat, and key indicators such as autos, construction,
and durables demand still under pressure. Corporate earnings also remain near long-term lows. While policy has eased, rates are
already depressed, limiting the effectiveness of further cuts. In the absence of credible signs of a rebound in credit and household
demand, the consensus underweight view on Thailand appears well grounded. That said, after years of lacklustre returns, Thailand now
stands out as one of the higher dividend-yielding markets in the region. For investors with a focus on income rather than growth, this
may at least offer selective opportunities, even if the broader investment case remains challenging.
Chart 9: China’s returns in 2025 were predominantly driven by multiple expansion. Sell-side strategists are
now expecting this to shift to earnings recovery
Source: Factset, MSCI, Schroders.
Chart 10: Tourism in Thailand is still below pre-Covid levels
Source: Bloomberg.
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Thailand visitors arrival (12 month arrivals moving average)
1997 2000 2003 2006 2009 2012 2015 2018 2021 2024
Section 2: Investment Manager’s Review
19 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
demand outlook continues to be compounded by policy and political uncertainty. Concerns centre on the country’s high household
leverage, subdued consumption, and limited private investment, all of which are expected to keep earnings under pressure. At the
same time, unclear policy direction keeps risk premiums elevated despite low valuations. Unlike other markets showing early signs of
recovery, most strategists see little evidence of a clear earnings inflection in Thailand, reinforcing the view that cheapness alone is
insufficient to drive performance in the face of structural and governance constraints.
On this occasion, there is little for your portfolio managers to significantly disagree with. In our view, Thailand remains one of the less
compelling markets in the region, reflecting an economy that continues to lack a clear catalyst for recovery. For one, tourism has yet to
return to pre-Covid levels and has softened again recently, weighing on the broader services economy. And while the current account
surplus continues to support the baht, this largely reflects weak domestic demand and subdued imports rather than underlying
strength. Any meaningful rebound in activity would therefore risk eroding this support rather than reinforcing it. More importantly,
domestic conditions remain soft, with credit growth effectively stalled, wage growth flat, and key indicators such as autos, construction,
and durables demand still under pressure. Corporate earnings also remain near long-term lows. While policy has eased, rates are
already depressed, limiting the effectiveness of further cuts. In the absence of credible signs of a rebound in credit and household
demand, the consensus underweight view on Thailand appears well grounded. That said, after years of lacklustre returns, Thailand now
stands out as one of the higher dividend-yielding markets in the region. For investors with a focus on income rather than growth, this
may at least offer selective opportunities, even if the broader investment case remains challenging.
Chart 9: China’s returns in 2025 were predominantly driven by multiple expansion. Sell-side strategists are
now expecting this to shift to earnings recovery
Source: Factset, MSCI, Schroders.
Chart 10: Tourism in Thailand is still below pre-Covid levels
Source: Bloomberg.
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Thailand visitors arrival (12 month arrivals moving average)
1997 2000 2003 2006 2009 2012 2015 2018 2021 2024
Section 2: Investment Manager’s Review
19 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
By contrast, Taiwan is disliked by analysts for very diSerent reasons as it is not struggling with weak fundamentals so much as the
weight of investor enthusiasm. Sell-side strategists increasingly view Taiwan as the most crowded way to express the global AI theme,
which has made them more cautious despite still-strong fundamentals. While earnings visibility remains solid, many believe that a
signi cant portion of the upside from AI-related investment is already priced in. The market’s heavy concentration in a small number of
large stocks also means that sentiment can shift quickly if expectations change. As a result, strategists have shifted their focus away
from the strength of the growth story and towards concerns around valuation and positioning, leaving Taiwan caught between still-
solid fundamentals and more limited upside.
On this, your portfolio managers are more circumspect. There is little doubt that the AI investment theme across Asia is beginning to
show familiar signs of froth, with share prices of AI supply-chain winners having run hard and investors increasingly questioning
whether today’s “extravagant” AI spending will ultimately translate into sustainable pro ts. At the same time, the broader AI investment
cycle remains very much intact. Just last month, TSMC reported record pro ts driven by AI demand and guided to another step-up in
capital spending in 2026, indicating that customers are still committing real capital rather than simply talking up the narrative. Beyond
semiconductors, Asia’s data centre buildout is also accelerating rapidly. As a result, while valuations and positioning do appear
stretched, there is a real risk that the theme runs longer than sceptics expect. Moving underweight Taiwan at this stage may be
premature.
As an aside, it appears that dividend-paying markets are also out of favour with sell-side strategists this year, probably re ecting
aRbroader view that income alone is not a suLcient catalyst for 2026. As shown in the gure below, the relationship is eSectively
inverted. Lower-yield markets such as India and China attract the highest levels of conviction, while higher-yielding markets such as
Australia, Thailand, and Taiwan fail to garner a single overweight recommendation despite oSering dividend yields in the 3% to 4%
range. This suggests strategists are prioritising earnings recovery and growth narratives over income. Indonesia stands out as a partial
exception, combining a relatively high yield with a stronger overweight bias, although this elevated yield partly re ects the sharp sell-oS
in the market after MSCI, correctly in your portfolio managers’ view, raised concerns around its investability and transparency and
agged aRpotential downgrade to frontier-market status.
That sell-side strategists are biased against dividend-yielding markets is understandable after a year like 2025, when price gains
accounted for the bulk of total returns and dividends played a relatively minor role. Over the longer term, however, the evidence points
in a diSerent direction. Over the past four decades, dividends have contributed close to two-thirds of Asia’s total equity returns. We
believe maintaining a disciplined focus on income and reinvestment, rather than chasing short-term capital appreciation alone, remains
one of the more reliable ways to compound returns in the region.
Chart 11: Going underweight Taiwan at this stage may well prove to be premature if AI capex continues to be
revised higher
Source: Goldman Sachs.
550
500
450
400
350
300
250
200
Consensus capex estimates for AI hyperscalers (US$’bn)
2026 2025 2024
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
20
weight of investor enthusiasm. Sell-side strategists increasingly view Taiwan as the most crowded way to express the global AI theme,
which has made them more cautious despite still-strong fundamentals. While earnings visibility remains solid, many believe that a
signi cant portion of the upside from AI-related investment is already priced in. The market’s heavy concentration in a small number of
large stocks also means that sentiment can shift quickly if expectations change. As a result, strategists have shifted their focus away
from the strength of the growth story and towards concerns around valuation and positioning, leaving Taiwan caught between still-
solid fundamentals and more limited upside.
On this, your portfolio managers are more circumspect. There is little doubt that the AI investment theme across Asia is beginning to
show familiar signs of froth, with share prices of AI supply-chain winners having run hard and investors increasingly questioning
whether today’s “extravagant” AI spending will ultimately translate into sustainable pro ts. At the same time, the broader AI investment
cycle remains very much intact. Just last month, TSMC reported record pro ts driven by AI demand and guided to another step-up in
capital spending in 2026, indicating that customers are still committing real capital rather than simply talking up the narrative. Beyond
semiconductors, Asia’s data centre buildout is also accelerating rapidly. As a result, while valuations and positioning do appear
stretched, there is a real risk that the theme runs longer than sceptics expect. Moving underweight Taiwan at this stage may be
premature.
As an aside, it appears that dividend-paying markets are also out of favour with sell-side strategists this year, probably re ecting
aRbroader view that income alone is not a suLcient catalyst for 2026. As shown in the gure below, the relationship is eSectively
inverted. Lower-yield markets such as India and China attract the highest levels of conviction, while higher-yielding markets such as
Australia, Thailand, and Taiwan fail to garner a single overweight recommendation despite oSering dividend yields in the 3% to 4%
range. This suggests strategists are prioritising earnings recovery and growth narratives over income. Indonesia stands out as a partial
exception, combining a relatively high yield with a stronger overweight bias, although this elevated yield partly re ects the sharp sell-oS
in the market after MSCI, correctly in your portfolio managers’ view, raised concerns around its investability and transparency and
agged aRpotential downgrade to frontier-market status.
That sell-side strategists are biased against dividend-yielding markets is understandable after a year like 2025, when price gains
accounted for the bulk of total returns and dividends played a relatively minor role. Over the longer term, however, the evidence points
in a diSerent direction. Over the past four decades, dividends have contributed close to two-thirds of Asia’s total equity returns. We
believe maintaining a disciplined focus on income and reinvestment, rather than chasing short-term capital appreciation alone, remains
one of the more reliable ways to compound returns in the region.
Chart 11: Going underweight Taiwan at this stage may well prove to be premature if AI capex continues to be
revised higher
Source: Goldman Sachs.
550
500
450
400
350
300
250
200
Consensus capex estimates for AI hyperscalers (US$’bn)
2026 2025 2024
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
20
Chart 12: Dividend-yielding markets are out-of-favour with strategists
Source: Factset, Schroders, Bloomberg, various broker reports. 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.
Australia
China
Hong Kong
Korea
Taiwan
Singapore
Malaysia
Thailand
Indonesia
Philippines
India
-10%
10%
30%
50%
70%
90%
0.0 1.0 2.0 3.0 4.0 5.0
% of sell-side strategists recommending
overweight
Dividend yield (%)
Chart 13: Dividends make up almost two-thirds of long-term equity returns in Asia
Source: MSCI, Factset, Schroders. 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.
2,500
2,000
1,500
1,000
500
0
Price return
Dividend return
MSCI AC Asia Pacific ex Japan Index
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Section 2: Investment Manager’s Review
21 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Source: Factset, Schroders, Bloomberg, various broker reports. 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.
Australia
China
Hong Kong
Korea
Taiwan
Singapore
Malaysia
Thailand
Indonesia
Philippines
India
-10%
10%
30%
50%
70%
90%
0.0 1.0 2.0 3.0 4.0 5.0
% of sell-side strategists recommending
overweight
Dividend yield (%)
Chart 13: Dividends make up almost two-thirds of long-term equity returns in Asia
Source: MSCI, Factset, Schroders. 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.
2,500
2,000
1,500
1,000
500
0
Price return
Dividend return
MSCI AC Asia Pacific ex Japan Index
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Section 2: Investment Manager’s Review
21 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Chart 14: Our top-down composite valuation indicator has been teetering around the sell territory
Source: MSCI, Factset, Schroders. 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.
4.0
3.0
2.0
1.0
0.0
–1.0
–2.0
–3.0
–4.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
–20.0
–40.0
–60.0
–80.0
Dec-95Dec-97Dec-99Dec-01Dec-03Dec-05Dec-07Dec-09Dec-11Dec-13Dec-15Dec-17Dec-19Dec-21Dec-23Dec-25
Schroders Proprietary Top-Down Composite Valuation Indicator
MSCI AC Asia Pacific ex Japan (18m forward return, rhs)
SECTION 2 – VALUATIONS, GEARING AND HEDGING: TIME TO REIN IN RISKS?
Long-time holders will know that hedging has long been an integral part of the Company’s process. However rather than use these
derivatives to express short-term market calls or to “trade” macro views, our hedging is a risk-management tool, designed to manage
country and market-level risks agged by our quantitative models, and to give our stock selection the best possible chance of
translating into overall portfolio performance. In the case of the Company we also use a subset of these models to help determine
whether to deploy gearing.
So what are our models telling us today?
On valuations, we continue to assess the region using both top-down and bottom-up lenses, and at the moment the two are telling
slightly diSerent stories. From a top-down perspective, the picture is becoming more challenging. Since the end of the third quarter last
year, our proprietary composite valuation indicator has been hovering uncomfortably close to its sell threshold, de ned as one
standard deviation above long-term norms. Historically, periods when valuations have reached these levels have rarely been kind to
equity markets. On average, the region has gone on to decline by more than 25% over the subsequent 12 to 18 months, with positive
returns recorded in only two of the past thirty- ve such episodes.
That said, the bottom-up picture is more balanced. Our bottom-up valuation indicator, which measures the proportion of stocks under
our coverage trading below our analysts’ fair values, currently sits at 57.7%, squarely in neutral territory. In other words, while parts of
the market look stretched, there remains a reasonable mix of attractively valued and fully valued opportunities across the region. Taken
together, these signals point to a more cautious backdrop overall, with at least one important valuation measure warning that downside
risks to Asian equity returns have risen over the medium term. With this in mind we have reduced gearing substantially, and will
continue to monitor our model readings and adjust positions accordingly.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
22
Source: MSCI, Factset, Schroders. 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.
4.0
3.0
2.0
1.0
0.0
–1.0
–2.0
–3.0
–4.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
–20.0
–40.0
–60.0
–80.0
Dec-95Dec-97Dec-99Dec-01Dec-03Dec-05Dec-07Dec-09Dec-11Dec-13Dec-15Dec-17Dec-19Dec-21Dec-23Dec-25
Schroders Proprietary Top-Down Composite Valuation Indicator
MSCI AC Asia Pacific ex Japan (18m forward return, rhs)
SECTION 2 – VALUATIONS, GEARING AND HEDGING: TIME TO REIN IN RISKS?
Long-time holders will know that hedging has long been an integral part of the Company’s process. However rather than use these
derivatives to express short-term market calls or to “trade” macro views, our hedging is a risk-management tool, designed to manage
country and market-level risks agged by our quantitative models, and to give our stock selection the best possible chance of
translating into overall portfolio performance. In the case of the Company we also use a subset of these models to help determine
whether to deploy gearing.
So what are our models telling us today?
On valuations, we continue to assess the region using both top-down and bottom-up lenses, and at the moment the two are telling
slightly diSerent stories. From a top-down perspective, the picture is becoming more challenging. Since the end of the third quarter last
year, our proprietary composite valuation indicator has been hovering uncomfortably close to its sell threshold, de ned as one
standard deviation above long-term norms. Historically, periods when valuations have reached these levels have rarely been kind to
equity markets. On average, the region has gone on to decline by more than 25% over the subsequent 12 to 18 months, with positive
returns recorded in only two of the past thirty- ve such episodes.
That said, the bottom-up picture is more balanced. Our bottom-up valuation indicator, which measures the proportion of stocks under
our coverage trading below our analysts’ fair values, currently sits at 57.7%, squarely in neutral territory. In other words, while parts of
the market look stretched, there remains a reasonable mix of attractively valued and fully valued opportunities across the region. Taken
together, these signals point to a more cautious backdrop overall, with at least one important valuation measure warning that downside
risks to Asian equity returns have risen over the medium term. With this in mind we have reduced gearing substantially, and will
continue to monitor our model readings and adjust positions accordingly.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
22
When we look at our strategic country models for individual Asian markets, which are also largely valuation-driven, they broadly echo
the same message as our bottom-up valuation indicator. Most major Asian markets remain in neutral territory, where risks and
opportunities appear broadly balanced. Interestingly, for some of the smaller ASEAN markets such as Thailand and the Philippines, our
models have turned more constructive, largely re ecting how cheap valuations have become. The clear outlier is India, where
valuations remain elevated and our strategic model is now signalling a higher risk of downside over the next couple of years.
Chart 15: Our bottom-up valuation indicator is rmly in the neutral zone
Source: MSCI, Factset, Schroders. 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.
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
120.0
100.0
80.0
60.0
40.0
20.0
0.0
–20.0
–40.0
–70.0
–80.0
Jul - 05
Jul - 07
Jul - 09
Jul - 11
Jul - 13
Jul - 15
Jul - 17
Jul - 19
Jul - 21
Jul - 23
Jul - 25
Schroders Proprietary Bottom-Up Valuation Indicator – % stocks with upside
MSCI AC Asia Pacific ex Japan (18m forward return, rhs)
Section 2: Investment Manager’s Review
23 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
the same message as our bottom-up valuation indicator. Most major Asian markets remain in neutral territory, where risks and
opportunities appear broadly balanced. Interestingly, for some of the smaller ASEAN markets such as Thailand and the Philippines, our
models have turned more constructive, largely re ecting how cheap valuations have become. The clear outlier is India, where
valuations remain elevated and our strategic model is now signalling a higher risk of downside over the next couple of years.
Chart 15: Our bottom-up valuation indicator is rmly in the neutral zone
Source: MSCI, Factset, Schroders. 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.
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
120.0
100.0
80.0
60.0
40.0
20.0
0.0
–20.0
–40.0
–70.0
–80.0
Jul - 05
Jul - 07
Jul - 09
Jul - 11
Jul - 13
Jul - 15
Jul - 17
Jul - 19
Jul - 21
Jul - 23
Jul - 25
Schroders Proprietary Bottom-Up Valuation Indicator – % stocks with upside
MSCI AC Asia Pacific ex Japan (18m forward return, rhs)
Section 2: Investment Manager’s Review
23 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Chart 16: Our strategic models for the smaller ASEAN markets are now more constructive
Source: MSCI, Factset, Schroders. 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.
250.0
200.0
150.0
100.0
50.0
0.0
–50.0
MSCI Thailand 2yr fwd rtns (%) Schroders proprietary strategic country model: Thailand
Dec - 07
Dec - 09
Dec - 11
Dec - 13
Dec - 15
Dec - 17
Dec - 19
Dec - 21
Dec - 23
Dec - 25
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
–20.0
–40.0
MSCI Philippines 2yr fwd rtns (%) Schroders proprietary strategic country model: Philippines
Dec - 07
Dec - 09
Dec - 11
Dec - 13
Dec - 15
Dec - 17
Dec - 19
Dec - 21
Dec - 23
Dec - 25
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
24
Source: MSCI, Factset, Schroders. 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.
250.0
200.0
150.0
100.0
50.0
0.0
–50.0
MSCI Thailand 2yr fwd rtns (%) Schroders proprietary strategic country model: Thailand
Dec - 07
Dec - 09
Dec - 11
Dec - 13
Dec - 15
Dec - 17
Dec - 19
Dec - 21
Dec - 23
Dec - 25
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
–20.0
–40.0
MSCI Philippines 2yr fwd rtns (%) Schroders proprietary strategic country model: Philippines
Dec - 07
Dec - 09
Dec - 11
Dec - 13
Dec - 15
Dec - 17
Dec - 19
Dec - 21
Dec - 23
Dec - 25
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
24
Turning to the shorter-term picture, our tactical hedging model has been less decisive. Over the past couple of months, it has oscillated
between hold and sell signals, brie y dipping into sell territory several times before moving back to a more neutral stance. Much of this
re ects the same top-down valuation pressures discussed earlier. Other inputs into the model, such as economic momentum, nancial
system risk, and the commodity complex, remain relatively supportive and have helped oSset the valuation signal.
Putting all of this together, and with put options on the Indian market still attractively priced, we continue to hedge part of our
exposure to Indian equities using put options on the NIFTY index. This approach allows us to retain our underlying stock positions
while managing the elevated valuation risk highlighted by our models. After accounting for this hedge, the Company’s net equity
exposure currently stands at around 95%, and as mentioned earlier use of gearing is now minimal.
Overall, our models very much tie in with our bottom-up analysis and ndings. Valuations in Asia are elevated, and risks of a market
correction are rising. We are not outright bearish, but we are positioning the Company more cautiously as we enter the year of the
horse and expect returns in 2026 to be moderate, particularly after the strong market performance in 2025.
Robin Parbrook and Lee King Fuei
Portfolio Managers
Schroder Investment Management Limited
18 March 2026
For illustrative purposes only and does not constitute to any recommendation to buy or sell the above-mentioned security/sector/country.
Please note that the value of investments and the income from them can go down as well as up and investors may not get back the amounts
originally invested.
Chart 17: India is the exception where our strategic country model is turning increasingly negative
Source, MSCI, Factset, Schroders. 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.
250.0
200.0
150.0
100.0
50.0
0.0
–50.0
–100.0
MSCI India 2yr fwd rtns (%) Schroders proprietary strategic country model: India
Dec - 99
Dec - 01
Dec - 03
Dec - 05
Dec - 07
Dec - 09
Dec - 11
Dec - 13
Dec - 15
Dec - 17
Dec - 19
Dec - 21
Dec - 23
Dec - 25
Section 2: Investment Manager’s Review
25 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
between hold and sell signals, brie y dipping into sell territory several times before moving back to a more neutral stance. Much of this
re ects the same top-down valuation pressures discussed earlier. Other inputs into the model, such as economic momentum, nancial
system risk, and the commodity complex, remain relatively supportive and have helped oSset the valuation signal.
Putting all of this together, and with put options on the Indian market still attractively priced, we continue to hedge part of our
exposure to Indian equities using put options on the NIFTY index. This approach allows us to retain our underlying stock positions
while managing the elevated valuation risk highlighted by our models. After accounting for this hedge, the Company’s net equity
exposure currently stands at around 95%, and as mentioned earlier use of gearing is now minimal.
Overall, our models very much tie in with our bottom-up analysis and ndings. Valuations in Asia are elevated, and risks of a market
correction are rising. We are not outright bearish, but we are positioning the Company more cautiously as we enter the year of the
horse and expect returns in 2026 to be moderate, particularly after the strong market performance in 2025.
Robin Parbrook and Lee King Fuei
Portfolio Managers
Schroder Investment Management Limited
18 March 2026
For illustrative purposes only and does not constitute to any recommendation to buy or sell the above-mentioned security/sector/country.
Please note that the value of investments and the income from them can go down as well as up and investors may not get back the amounts
originally invested.
Chart 17: India is the exception where our strategic country model is turning increasingly negative
Source, MSCI, Factset, Schroders. 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.
250.0
200.0
150.0
100.0
50.0
0.0
–50.0
–100.0
MSCI India 2yr fwd rtns (%) Schroders proprietary strategic country model: India
Dec - 99
Dec - 01
Dec - 03
Dec - 05
Dec - 07
Dec - 09
Dec - 11
Dec - 13
Dec - 15
Dec - 17
Dec - 19
Dec - 21
Dec - 23
Dec - 25
Section 2: Investment Manager’s Review
25 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Top Ten Investments
At 31 December 2025
Market: China
Sector: Communication Services
Portfolio exposure: £40.0m
% of portfolio: 7.1%
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £80.1m
% of portfolio: 14.3%
Market: South Korea
Sector: Information Technology
Portfolio exposure: £20.7m
% of portfolio: 3.7%
Market: Hong Kong (SAR)
Sector: Financials
Portfolio exposure: £18.0m
% of portfolio: 3.2%
2
1
3 4
Tencent Holdings
TSMC
Samsung Electronics AIA Group
TSMC is the world’s leading dedicated
semiconductor foundry, with unmatched
scale and technology leadership at advanced
nodes. Its sustained R&D intensity and
manufacturing excellence underpin deep
partnerships with global chip designers
across AI, high-performance computing and
smartphones. As chip complexity and
performance requirements increase, TSMC
remains central to enabling next-generation
innovation, reinforcing its strategic
importance within the global semiconductor
ecosystem.
Tencent is China’s leading internet platform,
anchored by WeChat’s dominant ecosystem
spanning social networking, payments,
content and mini-program services. Strong
network eSects and data advantages
support leadership in gaming and digital
advertising, while investments in cloud,
ntech and international expansion provide
additional avenues for development. Its
diversi ed platform model positions it to
bene t from the continued digitisation of
consumption and services.
Leading global memory producer with
strong technology advantages and
economies of scale versus peers, which
makes it one of the key bene ciaries of the
longer-term trends of automation, EVs,
cloud migration, Internet of Things (“IoT”),
AI, and digitisation. The structural uplift in
semiconductor demand should continue
to underpin the long-term earnings and
dividend trajectories of sector leaders and
engenders their future shareholder value
creation. Improved corporate governance
and shareholder return policies present
room for long-term re-rating.
AIA is a leading pan-Asian life insurer with
a broad presence across high-growth
markets. Its focus on protection, health
and long-term savings solutions aligns
with rising income levels, ageing
populations and increasing demand for
nancial security. Supported by a strong
agency network and trusted brand, AIA is
well placed to participate in the structural
expansion of insurance and wealth
planning needs across Asia.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
26
At 31 December 2025
Market: China
Sector: Communication Services
Portfolio exposure: £40.0m
% of portfolio: 7.1%
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £80.1m
% of portfolio: 14.3%
Market: South Korea
Sector: Information Technology
Portfolio exposure: £20.7m
% of portfolio: 3.7%
Market: Hong Kong (SAR)
Sector: Financials
Portfolio exposure: £18.0m
% of portfolio: 3.2%
2
1
3 4
Tencent Holdings
TSMC
Samsung Electronics AIA Group
TSMC is the world’s leading dedicated
semiconductor foundry, with unmatched
scale and technology leadership at advanced
nodes. Its sustained R&D intensity and
manufacturing excellence underpin deep
partnerships with global chip designers
across AI, high-performance computing and
smartphones. As chip complexity and
performance requirements increase, TSMC
remains central to enabling next-generation
innovation, reinforcing its strategic
importance within the global semiconductor
ecosystem.
Tencent is China’s leading internet platform,
anchored by WeChat’s dominant ecosystem
spanning social networking, payments,
content and mini-program services. Strong
network eSects and data advantages
support leadership in gaming and digital
advertising, while investments in cloud,
ntech and international expansion provide
additional avenues for development. Its
diversi ed platform model positions it to
bene t from the continued digitisation of
consumption and services.
Leading global memory producer with
strong technology advantages and
economies of scale versus peers, which
makes it one of the key bene ciaries of the
longer-term trends of automation, EVs,
cloud migration, Internet of Things (“IoT”),
AI, and digitisation. The structural uplift in
semiconductor demand should continue
to underpin the long-term earnings and
dividend trajectories of sector leaders and
engenders their future shareholder value
creation. Improved corporate governance
and shareholder return policies present
room for long-term re-rating.
AIA is a leading pan-Asian life insurer with
a broad presence across high-growth
markets. Its focus on protection, health
and long-term savings solutions aligns
with rising income levels, ageing
populations and increasing demand for
nancial security. Supported by a strong
agency network and trusted brand, AIA is
well placed to participate in the structural
expansion of insurance and wealth
planning needs across Asia.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
26
•
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £14.7m
% of portfolio: 2.6%
Market: Singapore
Sector: Financials
Portfolio exposure: £15.4m
% of portfolio: 2.7%
Market: India
Sector: Financials
Portfolio exposure: £14.3m
% of portfolio: 2.5%
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £15.3m
% of portfolio: 2.7%
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £14.2m
% of portfolio: 2.5%
Market: Philippines
Sector: Industrials
Portfolio exposure: £14.8m
% of portfolio: 2.6%
8
5
9
6
10
7
MediaTek
DBS Group Holdings
HDFC Bank
ASE Technology Holding
Chroma ATE
International Container
Terminal Services
MediaTek is a leading fabless
semiconductor designer with core
strengths in mobile processors,
connectivity and edge computing
solutions. Its competitive product
roadmap and close collaboration with
customers have driven broad adoption
across smartphones, smart home devices
and IoT applications. Expanding presence
in automotive and higher-performance
computing markets enhances its
exposure to structural upgrades in
connectivity and intelligent devices.
DBS is Singapore’s leading banking
franchise, with established positions in
consumer, wealth and institutional
banking across Asia. Its sustained
investment in digital infrastructure has
enhanced customer experience and
operational agility. With exposure to
regional trade ows, rising aFuence and
growing cross-border connectivity, DBS is
positioned to bene t from Asia’s evolving
nancial landscape and deepening
nancial intermediation.
HDFC Bank is one of India’s premier
private sector banks, recognised for
disciplined risk management and
aRdiversi ed retail and commercial
franchise. Following its merger with HDFC
Ltd, it bene ts from greater scale and an
expanded product suite spanning banking
and housing nance. Positioned in an
underpenetrated nancial system, the
bank stands to participate in rising credit
demand, formalisation and digital
adoption across India.
ASE Technology is the world’s leading
outsourced semiconductor assembly and
test provider, with strong capabilities in
advanced packaging and system-in-
package solutions that are increasingly
critical for AI, high-performance
computing and automotive chips. As chip
complexity rises, advanced packaging has
become a key performance diSerentiator.
ASE’s scale, technology leadership and
diversi ed customer base position it to
capture structural growth in
semiconductor content, supporting
durable earnings expansion and resilient
returns across cycles.
Chroma ATE is a leading provider of
precision test and measurement solutions
for semiconductors, EVs, batteries and
power electronics. Rising performance
requirements and electri cation trends
are driving higher testing intensity and
stricter quality standards. With strong
engineering expertise, high market share
in niche segments and diversi ed
exposure to structural growth areas,
Chroma is well positioned to deliver
sustainable revenue growth, solid margins
and strong cash generation over the long
term.
ICTSI is a leading port operator with
aRsigni cant emerging-markets footprint.,
supported by long-term concessions and
disciplined operational execution. Its
portfolio of strategic terminals bene ts
from trade growth and ongoing supply
chain diversi cation. Continued capacity
expansion and service enhancements
strengthen its role as a key infrastructure
partner in developing economies,
positioning the company to participate in
long-term growth in global and regional
commerce.
Section 2: Investment Manager’s Review
27 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £14.7m
% of portfolio: 2.6%
Market: Singapore
Sector: Financials
Portfolio exposure: £15.4m
% of portfolio: 2.7%
Market: India
Sector: Financials
Portfolio exposure: £14.3m
% of portfolio: 2.5%
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £15.3m
% of portfolio: 2.7%
Market: Taiwan
Sector: Information Technology
Portfolio exposure: £14.2m
% of portfolio: 2.5%
Market: Philippines
Sector: Industrials
Portfolio exposure: £14.8m
% of portfolio: 2.6%
8
5
9
6
10
7
MediaTek
DBS Group Holdings
HDFC Bank
ASE Technology Holding
Chroma ATE
International Container
Terminal Services
MediaTek is a leading fabless
semiconductor designer with core
strengths in mobile processors,
connectivity and edge computing
solutions. Its competitive product
roadmap and close collaboration with
customers have driven broad adoption
across smartphones, smart home devices
and IoT applications. Expanding presence
in automotive and higher-performance
computing markets enhances its
exposure to structural upgrades in
connectivity and intelligent devices.
DBS is Singapore’s leading banking
franchise, with established positions in
consumer, wealth and institutional
banking across Asia. Its sustained
investment in digital infrastructure has
enhanced customer experience and
operational agility. With exposure to
regional trade ows, rising aFuence and
growing cross-border connectivity, DBS is
positioned to bene t from Asia’s evolving
nancial landscape and deepening
nancial intermediation.
HDFC Bank is one of India’s premier
private sector banks, recognised for
disciplined risk management and
aRdiversi ed retail and commercial
franchise. Following its merger with HDFC
Ltd, it bene ts from greater scale and an
expanded product suite spanning banking
and housing nance. Positioned in an
underpenetrated nancial system, the
bank stands to participate in rising credit
demand, formalisation and digital
adoption across India.
ASE Technology is the world’s leading
outsourced semiconductor assembly and
test provider, with strong capabilities in
advanced packaging and system-in-
package solutions that are increasingly
critical for AI, high-performance
computing and automotive chips. As chip
complexity rises, advanced packaging has
become a key performance diSerentiator.
ASE’s scale, technology leadership and
diversi ed customer base position it to
capture structural growth in
semiconductor content, supporting
durable earnings expansion and resilient
returns across cycles.
Chroma ATE is a leading provider of
precision test and measurement solutions
for semiconductors, EVs, batteries and
power electronics. Rising performance
requirements and electri cation trends
are driving higher testing intensity and
stricter quality standards. With strong
engineering expertise, high market share
in niche segments and diversi ed
exposure to structural growth areas,
Chroma is well positioned to deliver
sustainable revenue growth, solid margins
and strong cash generation over the long
term.
ICTSI is a leading port operator with
aRsigni cant emerging-markets footprint.,
supported by long-term concessions and
disciplined operational execution. Its
portfolio of strategic terminals bene ts
from trade growth and ongoing supply
chain diversi cation. Continued capacity
expansion and service enhancements
strengthen its role as a key infrastructure
partner in developing economies,
positioning the company to participate in
long-term growth in global and regional
commerce.
Section 2: Investment Manager’s Review
27 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Fair
Portfolio
Portfolio
Value Exposure Exposure
£’000 £’000 % 1
Taiwan
TSMC 80,061 80,061 14.3%
ASE Technology Holding 15,340 15,340 2.7%
MediaTek 14,685 14,685 2.6%
Chroma ATE 14,157 14,157 2.5%
Hon Hai Precision Industry 11,641 11,641 2.1%
Nien Made Enterprise 4,194 4,194 0.7%
Total Taiwan 140,078 140,078 24.9%
China
Tencent Holdings 3 40,000 40,000 7.1%
Contemporary Amperex Technology 12,136 12,136 2.3%
Trip.com Group 3 10,428 10,428 1.9%
Alibaba Group Holding 3 8,247 8,247 1.5%
Shenzhen Inovance Technology 5,417 5,417 1.0%
Grab Holdings 4 5,138 5,138 0.9%
WuXi AppTec 3 4,499 4,499 0.8%
Wuxi Biologics 3 4,445 4,445 0.8%
WuXi XDC 3 2,289 2,289 0.4%
NetEase (CFD) 110 7,921 1.4%
Tencent (CFD) (122) 6,122 1.1%
Kanzhun (CFD) (217) 4,426 0.8%
China Total 92,370 111,068 20.0%
Australia
Brambles 2 9,021 9,021 1.6%
BHP Group 2 7,537 7,537 1.3%
Orica 7,180 7,180 1.3%
Cochlear 6,843 6,843 1.2%
CSL 6,503 6,503 1.2%
Aristocrat Leisure 5,473 5,473 1.0%
SEEK 4 5,440 5,440 1.0%
Medibank 3,919 3,919 0.7%
BlueScope Steel 3,867 3,867 0.7%
Dyno Nobel 3,866 3,866 0.7%
Australia Total 59,649 59,649 10.7%
Singapore
DBS Group Holdings 15,354 15,354 2.7%
Singapore Telecommunications 10,197 10,197 1.8%
Oversea-Chinese Banking 9,463 9,463 1.7%
Singapore Exchange 9,101 9,101 1.6%
Sea 4 7,629 7,629 1.4%
Sheng Siong Group 6,261 6,261 1.1%
Singapore Total 58,005 58,005 10.3%
Investment Portfolio
At 31 December 2025
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
28
Value Exposure Exposure
£’000 £’000 % 1
Taiwan
TSMC 80,061 80,061 14.3%
ASE Technology Holding 15,340 15,340 2.7%
MediaTek 14,685 14,685 2.6%
Chroma ATE 14,157 14,157 2.5%
Hon Hai Precision Industry 11,641 11,641 2.1%
Nien Made Enterprise 4,194 4,194 0.7%
Total Taiwan 140,078 140,078 24.9%
China
Tencent Holdings 3 40,000 40,000 7.1%
Contemporary Amperex Technology 12,136 12,136 2.3%
Trip.com Group 3 10,428 10,428 1.9%
Alibaba Group Holding 3 8,247 8,247 1.5%
Shenzhen Inovance Technology 5,417 5,417 1.0%
Grab Holdings 4 5,138 5,138 0.9%
WuXi AppTec 3 4,499 4,499 0.8%
Wuxi Biologics 3 4,445 4,445 0.8%
WuXi XDC 3 2,289 2,289 0.4%
NetEase (CFD) 110 7,921 1.4%
Tencent (CFD) (122) 6,122 1.1%
Kanzhun (CFD) (217) 4,426 0.8%
China Total 92,370 111,068 20.0%
Australia
Brambles 2 9,021 9,021 1.6%
BHP Group 2 7,537 7,537 1.3%
Orica 7,180 7,180 1.3%
Cochlear 6,843 6,843 1.2%
CSL 6,503 6,503 1.2%
Aristocrat Leisure 5,473 5,473 1.0%
SEEK 4 5,440 5,440 1.0%
Medibank 3,919 3,919 0.7%
BlueScope Steel 3,867 3,867 0.7%
Dyno Nobel 3,866 3,866 0.7%
Australia Total 59,649 59,649 10.7%
Singapore
DBS Group Holdings 15,354 15,354 2.7%
Singapore Telecommunications 10,197 10,197 1.8%
Oversea-Chinese Banking 9,463 9,463 1.7%
Singapore Exchange 9,101 9,101 1.6%
Sea 4 7,629 7,629 1.4%
Sheng Siong Group 6,261 6,261 1.1%
Singapore Total 58,005 58,005 10.3%
Investment Portfolio
At 31 December 2025
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
28
Fair
Portfolio
Portfolio
Value Exposure Exposure
£’000 £’000 % 1
India
HDFC Bank 14,275 14,275 2.5%
Bharat Electronics 7,517 7,517 1.3%
Le Travenues Technology 6,218 6,218 1.1%
MakeMyTrip 4 5,142 5,142 0.9%
Apollo Hospitals Enterprise 4,797 4,797 0.9%
InterGlobe Aviation 4,582 4,582 0.8%
Astra Microwave Products 4,534 4,534 0.8%
PB Fintech 4,220 4,220 0.8%
Five-Star Business Finance 3,588 3,588 0.6%
India Total 54,873 54,873 9.7%
Hong Kong (SAR)
AIA Group 17,969 17,969 3.2%
Swire Paci c 10,181 10,181 1.8%
Techtronic Industries 8,609 8,609 1.5%
Galaxy Entertainment Group 6,104 6,104 1.1%
Hong Kong (SAR) Total 42,863 42,863 7.6%
South Korea
Samsung Electronics 20,703 20,703 3.7%
SK Hynix 10,715 10,715 1.9%
Samsung C&T 5,269 5,269 0.9%
Samsung Fire & Marine Insurance 4,528 4,528 0.8%
South Korea Total 41,215 41,215 7.3%
Philippines
International Container Terminal Services 14,817 14,817 2.6%
Century Paci c Food 6,400 6,400 1.1%
BDO Unibank 4,615 4,615 0.8%
Philippines Total 25,832 25,832 4.5%
United States of America
ResMed 10,378 10,378 1.8%
Las Vegas Sands (CFD) (174) 6,042 1.1%
United States of America Total 10,204 16,420 2.9%
Vietnam
Gemadept 4,549 4,549 0.8%
Vietnam Total 4,549 4,549 0.8%
United Kingdom
Rio Tinto (CFD) 243 7,202 1.3%
United Kingdom Total 243 7,202 1.3%
Total Investments (including CFDs) 5 529,881 561,754 100.0%
Section 2: Investment Manager’s Review
29 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Value Exposure Exposure
£’000 £’000 % 1
India
HDFC Bank 14,275 14,275 2.5%
Bharat Electronics 7,517 7,517 1.3%
Le Travenues Technology 6,218 6,218 1.1%
MakeMyTrip 4 5,142 5,142 0.9%
Apollo Hospitals Enterprise 4,797 4,797 0.9%
InterGlobe Aviation 4,582 4,582 0.8%
Astra Microwave Products 4,534 4,534 0.8%
PB Fintech 4,220 4,220 0.8%
Five-Star Business Finance 3,588 3,588 0.6%
India Total 54,873 54,873 9.7%
Hong Kong (SAR)
AIA Group 17,969 17,969 3.2%
Swire Paci c 10,181 10,181 1.8%
Techtronic Industries 8,609 8,609 1.5%
Galaxy Entertainment Group 6,104 6,104 1.1%
Hong Kong (SAR) Total 42,863 42,863 7.6%
South Korea
Samsung Electronics 20,703 20,703 3.7%
SK Hynix 10,715 10,715 1.9%
Samsung C&T 5,269 5,269 0.9%
Samsung Fire & Marine Insurance 4,528 4,528 0.8%
South Korea Total 41,215 41,215 7.3%
Philippines
International Container Terminal Services 14,817 14,817 2.6%
Century Paci c Food 6,400 6,400 1.1%
BDO Unibank 4,615 4,615 0.8%
Philippines Total 25,832 25,832 4.5%
United States of America
ResMed 10,378 10,378 1.8%
Las Vegas Sands (CFD) (174) 6,042 1.1%
United States of America Total 10,204 16,420 2.9%
Vietnam
Gemadept 4,549 4,549 0.8%
Vietnam Total 4,549 4,549 0.8%
United Kingdom
Rio Tinto (CFD) 243 7,202 1.3%
United Kingdom Total 243 7,202 1.3%
Total Investments (including CFDs) 5 529,881 561,754 100.0%
Section 2: Investment Manager’s Review
29 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Fair
Portfolio
Portfolio
Value Exposure Exposure
£’000 £’000 % 1
Derivative Financial Instruments
Index Put Options
NIFTYM Put Option 26050 February 2026 102
NIFTYM Put Option 25600 January 2026 35
Total Index Put Options 6 137
Total Investments and Derivative Financial Instruments 530,018 561,754 100.0%
Investments are classi ed by the Manager in the region or country of their main business operations or listing. The portfolio exposure
quanti es the portfolio’s sensitivity to market price movements resulting from the ownership of shares and derivative instruments. For
the short CFDs held within the portfolio, this represents the notional value of the underlying instruments to which the CFDs relate.
Fair value represents the true value of the portfolio, which is re ected on the balance sheet. In the case of holding a CFD, the fair value
re ects the pro t or loss generated by the CFD since its inception, based on the movement of the underlying share price. However,
when the Company solely holds shares, both the fair value and the portfolio exposure align.
Highlighted stocks are the twenty largest investments, which by value account for 62.4% (2024: 55.5%).
1 Portfolio exposure is expressed as a percentage of total investments and nancial derivative instruments.
2 Listed in the UK.
3 Listed in Hong Kong (SAR).
4 Listed in the USA.
5 Comprises the following:
Fair Portfolio
Value Exposure
£’000 £’000
Equities 522,412 522,412
American Depositary Receipts (ADR) 7,629 7,629
CFDs (160) 31,713
Total Investments (including CFDs) 529,881 561,754
6 The options give downside protection to 1.2% total investments.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
30
Value Exposure Exposure
£’000 £’000 % 1
Derivative Financial Instruments
Index Put Options
NIFTYM Put Option 26050 February 2026 102
NIFTYM Put Option 25600 January 2026 35
Total Index Put Options 6 137
Total Investments and Derivative Financial Instruments 530,018 561,754 100.0%
Investments are classi ed by the Manager in the region or country of their main business operations or listing. The portfolio exposure
quanti es the portfolio’s sensitivity to market price movements resulting from the ownership of shares and derivative instruments. For
the short CFDs held within the portfolio, this represents the notional value of the underlying instruments to which the CFDs relate.
Fair value represents the true value of the portfolio, which is re ected on the balance sheet. In the case of holding a CFD, the fair value
re ects the pro t or loss generated by the CFD since its inception, based on the movement of the underlying share price. However,
when the Company solely holds shares, both the fair value and the portfolio exposure align.
Highlighted stocks are the twenty largest investments, which by value account for 62.4% (2024: 55.5%).
1 Portfolio exposure is expressed as a percentage of total investments and nancial derivative instruments.
2 Listed in the UK.
3 Listed in Hong Kong (SAR).
4 Listed in the USA.
5 Comprises the following:
Fair Portfolio
Value Exposure
£’000 £’000
Equities 522,412 522,412
American Depositary Receipts (ADR) 7,629 7,629
CFDs (160) 31,713
Total Investments (including CFDs) 529,881 561,754
6 The options give downside protection to 1.2% total investments.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
30
Investment Process
Investment philosophy
Translating philosophy into process
We believe that Asian stock
markets are ineLcient and
provide strong potential for
adding value through active
fund management.
Source: Schroders. For illustrative purposes only and should not be viewed as a recommendation to buy or sell.
We believe that this value
isRbest extracted using
aRfundamental, bottom-up
stock selection approach.
The durability of earnings and
the alignment of our interests
with management and major
shareholders are key
considerations. We seek to buy
quality companies at the right
price.
We believe that applying
aRsystematic, disciplined
approach, with a strong team
culture, increases our ability to
add value.
A disciplined investment process, applied systematically by an
experienced team, is important for adding value over the
long-term. Schroders’ investment process is informed by their
beliefs about Asian markets, based on extensive experience
gained investing in the region for over 50 years.
These beliefs, and their implications, result in stock selection
being placed at the heart of the Company’s investment approach,
as explained in the diagram below:
Philosophical beliefs Deduction Process
Source: Schroders. For illustrative purposes only and should not be viewed as a recommendation to buy or sell.
Asian markets are less
well researched Add value from stock
selection by consistent
application of bottom-up
process
Disciplined long-term stock analysis by • a large, on-the-ground team of
experienced investment professionals
covering Asia Paci c ex Japan
Understanding of business value •
Asian stocks have
higher specific risks Seek quality – at the right
price
Focus on superior or improving return • on invested capital (ROIC) over time
Sustainability and durability of • earnings are key considerations
Corporate governance focus •
Asian markets are
short-term and volatile Seek long-term, not
short-term valuation
anomalies
Take a long-term time horizon •
Exploit opportunities created by • short-term volatility
Section 2: Investment Manager’s Review
31 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Investment philosophy
Translating philosophy into process
We believe that Asian stock
markets are ineLcient and
provide strong potential for
adding value through active
fund management.
Source: Schroders. For illustrative purposes only and should not be viewed as a recommendation to buy or sell.
We believe that this value
isRbest extracted using
aRfundamental, bottom-up
stock selection approach.
The durability of earnings and
the alignment of our interests
with management and major
shareholders are key
considerations. We seek to buy
quality companies at the right
price.
We believe that applying
aRsystematic, disciplined
approach, with a strong team
culture, increases our ability to
add value.
A disciplined investment process, applied systematically by an
experienced team, is important for adding value over the
long-term. Schroders’ investment process is informed by their
beliefs about Asian markets, based on extensive experience
gained investing in the region for over 50 years.
These beliefs, and their implications, result in stock selection
being placed at the heart of the Company’s investment approach,
as explained in the diagram below:
Philosophical beliefs Deduction Process
Source: Schroders. For illustrative purposes only and should not be viewed as a recommendation to buy or sell.
Asian markets are less
well researched Add value from stock
selection by consistent
application of bottom-up
process
Disciplined long-term stock analysis by • a large, on-the-ground team of
experienced investment professionals
covering Asia Paci c ex Japan
Understanding of business value •
Asian stocks have
higher specific risks Seek quality – at the right
price
Focus on superior or improving return • on invested capital (ROIC) over time
Sustainability and durability of • earnings are key considerations
Corporate governance focus •
Asian markets are
short-term and volatile Seek long-term, not
short-term valuation
anomalies
Take a long-term time horizon •
Exploit opportunities created by • short-term volatility
Section 2: Investment Manager’s Review
31 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Stock research
The key input into the Investment
Manager’s stock selection decisions is the
fundamental research carried out by the
analyst team, the majority of which is done
using internal research tools and valuation
models. 1
With a universe of around 5,000 potential
names to choose from, in what has
historically been a volatile region, the
Investment Manager has a bias towards
‘quality’ companies. The analysts look to
identify those companies which are most
likely to be able to grow shareholder value
over the long term, by making
assessments of the nancial and
non- nancial (including sustainability)
factors which in uence company returns.
The analytical focus is on the future trend
in a company’s ROIC relative to its
weighted average cost of capital (WACC), in
the belief that this re ects the
attractiveness and sustainability of the
business model and serves as a predictor
of long-term shareholder returns.
Analysts spend much of their time meeting
with companies in their sectors, as well as
with industry experts and colleagues, so
that they can evaluate the “moats”, or true
competitive advantage, around the
businesses they are analysing and
ultimately be in a position to make
aRrecommendation on companies that
could generate superior shareholder value
over the long-term.
The output of this work is usually in the
form of research notes and company
models, as well as standard data points –
aRfair value and recommendation grade, its
Shareholder Return Classi cation (“SRC”)
which includes an assessment of the
company’s return pro le as described
above, and an ESG appraisal and score.
Portfolio construction
With input from the team of research
analysts, the Portfolio Managers generate
stock ideas by combining their own
research (for example, by undertaking
research visits and meetings with company
management) and by drawing on a
number of other sources including other
investment professionals within Schroders,
quantitative screens, and external research
providers.
Using all of these inputs, the Portfolio
Managers will decide which stocks to hold,
and at what weightings. In doing so, they
will consider all the outputs from the
analysts’ work (such as the upside to fair
value), the level of conviction they have in
the investment thesis and any identi ed
risks (including those relating to ESG)
relative to the rest of the opportunity set.
The primary objective of this process is to
create a portfolio with an appropriate level
of stock speci c risk as the primary driver
of returns.
While the portfolio construction process is
primarily driven by bottom-up stock
selection, there is also a top-down
strategic and tactical hedge overlay
process, carried out on a monthly basis,
which combines the output of in-house
quantitative models and the qualitative
views of the Portfolio Managers.
The purpose of this “top-down overlay” is
to identify and adjust for any unwanted
systematic risks (or market risks) which
have resulted from the bottom-up process.
Top-down factors looked at in this process
may include macroeconomic conditions,
in ation and interest rate dynamics,
politics/geopolitics, aggregate market
valuations and measures of investor
sentiment. This allows the Portfolio
Managers to construct the portfolio using
the most attractive bottom-up ideas, while
helping to provide some downside
protection through reducing speci c
market risks and lowering overall return
volatility. They will also harness Schroders’
proprietary risk management systems to
provide a quantitative view of the
characteristics of the portfolio.
This results in a relatively diversi ed
portfolio, typically with a ‘quality’ bias.
Investment team
A key strength of the Investment Manager
is its team of investment professionals
based in the region. The two Portfolio
Managers, who themselves have well over
ve decades of investment experience
between them, are supported by a team of
47 equity analysts based across 6 oLces in
Asia Paci c ex-Japan, who have an average
of over 17Ryears’ investment experience 2 .
Being based in the region means that the
analysts are in regular direct contact with
the companies which they are covering,
with the team carrying out over 2,200
company contacts per year 3 . This regular
contact allows the team to gain a thorough
understanding of a company’s business
model and management culture, the key
issues they are facing and their strategies
to navigate an ever-changing business
environment. Moreover, since the local
investors in each country are usually the
key owners of the local markets, being
present on the ground enables the
Investment Manager to understand how
those major local investors perceive and
value companies.
It is this knowledge base, paired with the
expertise of the Investment Manager’s
investment professionals, which adds
value to the bottom-up approach to stock
selection. The locally based analyst team is
supplemented by other resources across
the Schroders group, including the
UK-based Sustainable Investment Team
and Investment Insight Unit, as well as
other equity teams focused on global and
emerging markets.
1 The stock research process described here covers that undertaken by the team of locally based Asia ex Japan analysts. The detail of research in other regions where
analysts report locally (e.g. Australia, India) may diSer, but is underpinned by the same broad approach.
2 Team information as at December 2025. The 47 ex-Japan analysts include 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 2025. Source: Schroders.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
32
The key input into the Investment
Manager’s stock selection decisions is the
fundamental research carried out by the
analyst team, the majority of which is done
using internal research tools and valuation
models. 1
With a universe of around 5,000 potential
names to choose from, in what has
historically been a volatile region, the
Investment Manager has a bias towards
‘quality’ companies. The analysts look to
identify those companies which are most
likely to be able to grow shareholder value
over the long term, by making
assessments of the nancial and
non- nancial (including sustainability)
factors which in uence company returns.
The analytical focus is on the future trend
in a company’s ROIC relative to its
weighted average cost of capital (WACC), in
the belief that this re ects the
attractiveness and sustainability of the
business model and serves as a predictor
of long-term shareholder returns.
Analysts spend much of their time meeting
with companies in their sectors, as well as
with industry experts and colleagues, so
that they can evaluate the “moats”, or true
competitive advantage, around the
businesses they are analysing and
ultimately be in a position to make
aRrecommendation on companies that
could generate superior shareholder value
over the long-term.
The output of this work is usually in the
form of research notes and company
models, as well as standard data points –
aRfair value and recommendation grade, its
Shareholder Return Classi cation (“SRC”)
which includes an assessment of the
company’s return pro le as described
above, and an ESG appraisal and score.
Portfolio construction
With input from the team of research
analysts, the Portfolio Managers generate
stock ideas by combining their own
research (for example, by undertaking
research visits and meetings with company
management) and by drawing on a
number of other sources including other
investment professionals within Schroders,
quantitative screens, and external research
providers.
Using all of these inputs, the Portfolio
Managers will decide which stocks to hold,
and at what weightings. In doing so, they
will consider all the outputs from the
analysts’ work (such as the upside to fair
value), the level of conviction they have in
the investment thesis and any identi ed
risks (including those relating to ESG)
relative to the rest of the opportunity set.
The primary objective of this process is to
create a portfolio with an appropriate level
of stock speci c risk as the primary driver
of returns.
While the portfolio construction process is
primarily driven by bottom-up stock
selection, there is also a top-down
strategic and tactical hedge overlay
process, carried out on a monthly basis,
which combines the output of in-house
quantitative models and the qualitative
views of the Portfolio Managers.
The purpose of this “top-down overlay” is
to identify and adjust for any unwanted
systematic risks (or market risks) which
have resulted from the bottom-up process.
Top-down factors looked at in this process
may include macroeconomic conditions,
in ation and interest rate dynamics,
politics/geopolitics, aggregate market
valuations and measures of investor
sentiment. This allows the Portfolio
Managers to construct the portfolio using
the most attractive bottom-up ideas, while
helping to provide some downside
protection through reducing speci c
market risks and lowering overall return
volatility. They will also harness Schroders’
proprietary risk management systems to
provide a quantitative view of the
characteristics of the portfolio.
This results in a relatively diversi ed
portfolio, typically with a ‘quality’ bias.
Investment team
A key strength of the Investment Manager
is its team of investment professionals
based in the region. The two Portfolio
Managers, who themselves have well over
ve decades of investment experience
between them, are supported by a team of
47 equity analysts based across 6 oLces in
Asia Paci c ex-Japan, who have an average
of over 17Ryears’ investment experience 2 .
Being based in the region means that the
analysts are in regular direct contact with
the companies which they are covering,
with the team carrying out over 2,200
company contacts per year 3 . This regular
contact allows the team to gain a thorough
understanding of a company’s business
model and management culture, the key
issues they are facing and their strategies
to navigate an ever-changing business
environment. Moreover, since the local
investors in each country are usually the
key owners of the local markets, being
present on the ground enables the
Investment Manager to understand how
those major local investors perceive and
value companies.
It is this knowledge base, paired with the
expertise of the Investment Manager’s
investment professionals, which adds
value to the bottom-up approach to stock
selection. The locally based analyst team is
supplemented by other resources across
the Schroders group, including the
UK-based Sustainable Investment Team
and Investment Insight Unit, as well as
other equity teams focused on global and
emerging markets.
1 The stock research process described here covers that undertaken by the team of locally based Asia ex Japan analysts. The detail of research in other regions where
analysts report locally (e.g. Australia, India) may diSer, but is underpinned by the same broad approach.
2 Team information as at December 2025. The 47 ex-Japan analysts include 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 2025. Source: Schroders.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
32
ESG Integration
Integration of ESG into the
investment process 1
It is important to note that the Company does
not have a speci c ESG/sustainability
orientation, or target outcome. The
Company’s investment objective can be found
in the Strategic Report on page 39.
The approach of the Manager is to
incorporate into its decision-making
aRthorough 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- nancial
factors, including ESG considerations,
contributes to a better understanding of
aRcompany’s risk characteristics and return
potential. Assessing the durability of a
company’s returns and nancial position has
therefore always been at the core of the
Manager’s research and investment decisions
in Asia.
Schroders’ sustainability practice has a history
of over 20 years. Today a team of more than
30 dedicated members of the Sustainable
Investment team (as at 31 December 2025)
develop proprietary ESG tools, such as
CONTEXT TM and SustainEx TM which support
individual investment teams including the
Asian equities team. The carbon footprint of
the companies and the portfolio are
monitored over time and the proprietary
SustainEx TM tool measures positive and
negative externalities generated by the
companies.
Asia Context TM
, which is the principal tool
employed for the Manager’s ESG analysis as
itRpertains to the Company’s investments,
captures the Manager’s ESG analysis in one
template using a stakeholder-based
framework. It provides a clear and broad
roadmap on the issues requiring
engagement, helps refresh the team’s focus
on ROIC and enhances appreciation of the
downside and upside risks to a company’s
business model.
The context framework:
Understanding how a company manages it relationships with stakeholders
Source: Schroders.
Active ownership
Schroders has a long history of active
ownership, including engagement with
companies on ESG related matters, for the
past two decades.
Direct company contact is an important
component of the initial due diligence and
ongoing monitoring process. These regular
engagements form an important aspect of
the Manager’s role as a steward of clients’
capital and allows deployment of capital in
businesses with long-term sustainability of
returns and shareholder value creation.
Corporate Governance analysts in the
Sustainable Investment team will also work
alongside investors and internal compliance
and legal teams to vote all proxies where
possible, and to ensure the Manager’s voting
activities comply with its ESG policy.
To enhance the Asia team’s ESG expertise,
twoRmembers of the Sustainable Investment
team are based in the region, directly
supporting the Asian capability and ensuring
they are kept fully informed of the relevant
output of the Sustainable Investment team in
London.
Sustainable Equity Analysts on the Asia team
brought additional insight and perspective to
ESG analysis and engagement.
Environment
Have you put in place an energy
transition plan? Are you managing
operating impacts?
Regulators
How competitive is your market? Are
you paying a fair rate of tax?
Suppliers
How exposed is your supply chain to
disruption risks? How strong are your
supplier relationships?
Customers
How is your brand perceived? What’s
in your product pipeline?
Employees
How do your employees perform?
How motivated is your team?
Communities
community? Have you committed to
protect human rights?
1 The above ESG framework covers investments in companies researched by our team of locally based Asia ex Japan analysts. The detail of ESG coverage in other
regions where analysts report locally (e.g. Australia, India) may differ, but is underpinned by the same broad approach.
Section 2: Investment Manager’s Review
33 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Integration of ESG into the
investment process 1
It is important to note that the Company does
not have a speci c ESG/sustainability
orientation, or target outcome. The
Company’s investment objective can be found
in the Strategic Report on page 39.
The approach of the Manager is to
incorporate into its decision-making
aRthorough 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- nancial
factors, including ESG considerations,
contributes to a better understanding of
aRcompany’s risk characteristics and return
potential. Assessing the durability of a
company’s returns and nancial position has
therefore always been at the core of the
Manager’s research and investment decisions
in Asia.
Schroders’ sustainability practice has a history
of over 20 years. Today a team of more than
30 dedicated members of the Sustainable
Investment team (as at 31 December 2025)
develop proprietary ESG tools, such as
CONTEXT TM and SustainEx TM which support
individual investment teams including the
Asian equities team. The carbon footprint of
the companies and the portfolio are
monitored over time and the proprietary
SustainEx TM tool measures positive and
negative externalities generated by the
companies.
Asia Context TM
, which is the principal tool
employed for the Manager’s ESG analysis as
itRpertains to the Company’s investments,
captures the Manager’s ESG analysis in one
template using a stakeholder-based
framework. It provides a clear and broad
roadmap on the issues requiring
engagement, helps refresh the team’s focus
on ROIC and enhances appreciation of the
downside and upside risks to a company’s
business model.
The context framework:
Understanding how a company manages it relationships with stakeholders
Source: Schroders.
Active ownership
Schroders has a long history of active
ownership, including engagement with
companies on ESG related matters, for the
past two decades.
Direct company contact is an important
component of the initial due diligence and
ongoing monitoring process. These regular
engagements form an important aspect of
the Manager’s role as a steward of clients’
capital and allows deployment of capital in
businesses with long-term sustainability of
returns and shareholder value creation.
Corporate Governance analysts in the
Sustainable Investment team will also work
alongside investors and internal compliance
and legal teams to vote all proxies where
possible, and to ensure the Manager’s voting
activities comply with its ESG policy.
To enhance the Asia team’s ESG expertise,
twoRmembers of the Sustainable Investment
team are based in the region, directly
supporting the Asian capability and ensuring
they are kept fully informed of the relevant
output of the Sustainable Investment team in
London.
Sustainable Equity Analysts on the Asia team
brought additional insight and perspective to
ESG analysis and engagement.
Environment
Have you put in place an energy
transition plan? Are you managing
operating impacts?
Regulators
How competitive is your market? Are
you paying a fair rate of tax?
Suppliers
How exposed is your supply chain to
disruption risks? How strong are your
supplier relationships?
Customers
How is your brand perceived? What’s
in your product pipeline?
Employees
How do your employees perform?
How motivated is your team?
Communities
community? Have you committed to
protect human rights?
1 The above ESG framework covers investments in companies researched by our team of locally based Asia ex Japan analysts. The detail of ESG coverage in other
regions where analysts report locally (e.g. Australia, India) may differ, but is underpinned by the same broad approach.
Section 2: Investment Manager’s Review
33 Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
ESG analysis impacts the
investment process in four ways.
1) Initial screening – ESG helps
determine which companies are
considered to be investable as part of
an initial screening, which is in addition
to Schroders’ group-wide exclusions. 1
2) Durability of earnings – ESG analysis
helps the investment team understand
the impact ESG externalities may have
on the future earnings power of the
business and the ROIC and SRC of the
company.
3) Fair Value and recommendation –
ESG is an indirect and direct input into
our fair value estimate of a company.
Indirect, to the extent that a company’s
SRC may in uence the assumptions
used in establishing the fair value
estimate of a company; and direct, to
the extent that the Manager may apply
an additional explicit discount/premium
to that fair value estimate.
4) Portfolio construction – ESG helps
shape portfolio construction and may
in uence how portfolio managers size
positions. For example, poor ESG
performance or heightened ESG risks
may result in a decision to underweight
a security, hold a smaller position size
or avoid an investment completely.
There is no automatic rule – each
investment opportunity is assessed on
a case-by-case basis, with the focus on
the materiality of ESG factors on a
company’s valuation and risk pro le.
In summary, ESG analysis helps determine
which companies are looked at, how the
Manager assesses their durability and,
hence, how they are valued. And while
company valuations ultimately drive
portfolio construction, ESG insights play
aRrole in the investment process and may
in uence how portfolio managers size
positions within a portfolio. Furthermore,
the Manager’s ESG analysis is
broad-reaching and is not only concerned
with the potential downside risks that are
identi ed, but also the upside return
implications for stocks in which the
Company invests.
The table below shows the Manager’s
engagement in respect of portfolio
holdings and voting:
As at As at
31 December 31 December
2025 2024
Shareholder meetings voted at 66 68
Number of proposals voted on 576 641
Number of votes against management 49 47
Votes against management (%) 8.5 7.3
Engagements encompass all instances where we cover ESG-speci c issues with a company, guided by our Engagement Blueprint. We
document these engagements in our proprietary platform, Active IQ, allowing us to monitor progress based on a milestone approach.
Where the Manager voted against management on behalf of the Company, in most cases, during 2025, these votes related to the
board (the election of directors and their independence), capital management (where proposals are not considered in the best
interests of shareholders), and compensation (concerns around remuneration levels and alignment with shareholders).
1 Schroders applies group-level exclusions to all Schroders funds that are directly managed. These group-level exclusions relate to controversial weapons and
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/global/individual/about-us/what-we-do/.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
34
investment process in four ways.
1) Initial screening – ESG helps
determine which companies are
considered to be investable as part of
an initial screening, which is in addition
to Schroders’ group-wide exclusions. 1
2) Durability of earnings – ESG analysis
helps the investment team understand
the impact ESG externalities may have
on the future earnings power of the
business and the ROIC and SRC of the
company.
3) Fair Value and recommendation –
ESG is an indirect and direct input into
our fair value estimate of a company.
Indirect, to the extent that a company’s
SRC may in uence the assumptions
used in establishing the fair value
estimate of a company; and direct, to
the extent that the Manager may apply
an additional explicit discount/premium
to that fair value estimate.
4) Portfolio construction – ESG helps
shape portfolio construction and may
in uence how portfolio managers size
positions. For example, poor ESG
performance or heightened ESG risks
may result in a decision to underweight
a security, hold a smaller position size
or avoid an investment completely.
There is no automatic rule – each
investment opportunity is assessed on
a case-by-case basis, with the focus on
the materiality of ESG factors on a
company’s valuation and risk pro le.
In summary, ESG analysis helps determine
which companies are looked at, how the
Manager assesses their durability and,
hence, how they are valued. And while
company valuations ultimately drive
portfolio construction, ESG insights play
aRrole in the investment process and may
in uence how portfolio managers size
positions within a portfolio. Furthermore,
the Manager’s ESG analysis is
broad-reaching and is not only concerned
with the potential downside risks that are
identi ed, but also the upside return
implications for stocks in which the
Company invests.
The table below shows the Manager’s
engagement in respect of portfolio
holdings and voting:
As at As at
31 December 31 December
2025 2024
Shareholder meetings voted at 66 68
Number of proposals voted on 576 641
Number of votes against management 49 47
Votes against management (%) 8.5 7.3
Engagements encompass all instances where we cover ESG-speci c issues with a company, guided by our Engagement Blueprint. We
document these engagements in our proprietary platform, Active IQ, allowing us to monitor progress based on a milestone approach.
Where the Manager voted against management on behalf of the Company, in most cases, during 2025, these votes related to the
board (the election of directors and their independence), capital management (where proposals are not considered in the best
interests of shareholders), and compensation (concerns around remuneration levels and alignment with shareholders).
1 Schroders applies group-level exclusions to all Schroders funds that are directly managed. These group-level exclusions relate to controversial weapons and
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/global/individual/about-us/what-we-do/.
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Section 2: Investment Manager’s Review
34
35
Schroder Asian Total Return Investment Company plcTAnnual Report and Financial Statements 2025
Beijing Skyline, China
Section 2: Investment Manager’s Review
Beijing Skyline, China
Section 2: Investment Manager’s Review
Sydney Opera House and Sydney Harbour Bridge, Sydney, Australia
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
36
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
36
Section 3: Strategic Report
The Company 38
Stakeholder Engagement – Section 172 Report 42
Risk Report 46
Conclusion 50
Section 3: Strategic Report
37 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025 37 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
The Company 38
Stakeholder Engagement – Section 172 Report 42
Risk Report 46
Conclusion 50
Section 3: Strategic Report
37 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025 37 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Purpose, values and culture
The Company’s purpose is to create
long-term shareholder value.
The Company’s culture is driven by its
values: transparency; engagement; and
rigour, with collegial behaviour and
constructive challenge at Board level.
The values are all centred on achieving
returns for shareholders in line with the
Company’s investment objective. The
Board also promotes the e ective
management, or mitigation, of the
potential risks faced by the Company. To
the extent it does not con ict with the
investment objective, the Company’s
operations are structured with regard to
all its stakeholders and takes account of
the impact of the Company’s operations
on the environment and community.
Acting with high standards of integrity and
transparency, the Board is committed to
encouraging a culture that is responsive to
the views of shareholders and its wider
stakeholders.
As the Company has no employees and
acts through its service providers, its
culture is represented by the values and
behaviour of the Board and third parties to
which it delegates certain activities. The
Board aims to ful l the Company’s
investment objective by encouraging
a&culture of constructive challenge with
all&key suppliers and openness with all
stakeholders. The Board is responsible for
embedding the Company’s culture in the
Company’s operations.
The Board recognises the Company’s
responsibilities with respect to corporate
and social responsibility and engages with
its outsourced service providers to
safeguard the Company’s interests. As part
of this ongoing monitoring, the Board
receives reports from its service providers
regarding their anti-bribery and corruption
policies; Modern Slavery Act 2015
statements; diversity policies; and
greenhouse gas and energy usage
reporting.
The Company
Business model
The Company is a listed investment trust
that has outsourced its operations to
third&party service providers.
The Board has appointed the Manager,
Schroder Unit Trusts Limited, to
implement the investment strategy and to
manage the Company’s assets in line with
the appropriate restrictions placed on it by
the Board, including limits on the type and
relative size of holdings which may be held
in the portfolio and on the use of gearing,
cash, derivatives and other nancial
instruments, as appropriate.
The terms of the appointment of the
Manager are described more completely
in the Directors’ Report including
the delegation of investment management
services to the Investment Manager,
Schroder Investment Management
Limited. The Manager also promotes the
Company using its sales, PR and
marketing teams. The Board and Manager
work together to deliver the Company’s
investment objective, as demonstrated in
the following diagram.
Set objectives, strategy •
and key performance
indicators (KPIs)
Appoints the Manager •
and other service
providers to achieve
objectives
The Portfolio Managers •
implement investment
strategy by following an
investment process
Supported by strong •
research and risk
environment
Regular reporting and •
interaction with the Board
The Board is focused on ensuring that:
the Company remains attractive to •
investors
the fees and ongoing charges •
remain competitive
Marketing, PR and sales •
capability of the Manager
Support from the •
corporate broker with
secondary market
intervention to support
discount/premium
management
Portfolio and risk •
management
Achievement of KPIs •
Use of gearing •
Discount/premium and •
liquidity management
through share issuance
and repurchase
SHAREHOLDER
VALUE
Board
Promotion Investment
Oversight Strategy
Competitiveness
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
38
The Company’s purpose is to create
long-term shareholder value.
The Company’s culture is driven by its
values: transparency; engagement; and
rigour, with collegial behaviour and
constructive challenge at Board level.
The values are all centred on achieving
returns for shareholders in line with the
Company’s investment objective. The
Board also promotes the e ective
management, or mitigation, of the
potential risks faced by the Company. To
the extent it does not con ict with the
investment objective, the Company’s
operations are structured with regard to
all its stakeholders and takes account of
the impact of the Company’s operations
on the environment and community.
Acting with high standards of integrity and
transparency, the Board is committed to
encouraging a culture that is responsive to
the views of shareholders and its wider
stakeholders.
As the Company has no employees and
acts through its service providers, its
culture is represented by the values and
behaviour of the Board and third parties to
which it delegates certain activities. The
Board aims to ful l the Company’s
investment objective by encouraging
a&culture of constructive challenge with
all&key suppliers and openness with all
stakeholders. The Board is responsible for
embedding the Company’s culture in the
Company’s operations.
The Board recognises the Company’s
responsibilities with respect to corporate
and social responsibility and engages with
its outsourced service providers to
safeguard the Company’s interests. As part
of this ongoing monitoring, the Board
receives reports from its service providers
regarding their anti-bribery and corruption
policies; Modern Slavery Act 2015
statements; diversity policies; and
greenhouse gas and energy usage
reporting.
The Company
Business model
The Company is a listed investment trust
that has outsourced its operations to
third&party service providers.
The Board has appointed the Manager,
Schroder Unit Trusts Limited, to
implement the investment strategy and to
manage the Company’s assets in line with
the appropriate restrictions placed on it by
the Board, including limits on the type and
relative size of holdings which may be held
in the portfolio and on the use of gearing,
cash, derivatives and other nancial
instruments, as appropriate.
The terms of the appointment of the
Manager are described more completely
in the Directors’ Report including
the delegation of investment management
services to the Investment Manager,
Schroder Investment Management
Limited. The Manager also promotes the
Company using its sales, PR and
marketing teams. The Board and Manager
work together to deliver the Company’s
investment objective, as demonstrated in
the following diagram.
Set objectives, strategy •
and key performance
indicators (KPIs)
Appoints the Manager •
and other service
providers to achieve
objectives
The Portfolio Managers •
implement investment
strategy by following an
investment process
Supported by strong •
research and risk
environment
Regular reporting and •
interaction with the Board
The Board is focused on ensuring that:
the Company remains attractive to •
investors
the fees and ongoing charges •
remain competitive
Marketing, PR and sales •
capability of the Manager
Support from the •
corporate broker with
secondary market
intervention to support
discount/premium
management
Portfolio and risk •
management
Achievement of KPIs •
Use of gearing •
Discount/premium and •
liquidity management
through share issuance
and repurchase
SHAREHOLDER
VALUE
Board
Promotion Investment
Oversight Strategy
Competitiveness
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
38
Investment trust status and continuation vote
The Company’s shares are listed on the
London Stock Exchange, and the Company
is an investment trust in accordance with
section 1158 of the Corporation Tax
Act&2010. It is intended that the Company
will continue to conduct its a airs in
a&manner which will enable it to retain this
status. The Company is not a “close”
company for taxation purposes.
It is not intended that the Company
should have a limited life but the Directors
consider it desirable that the shareholders
should have the opportunity to review the
future of the Company at appropriate
intervals. Accordingly, the articles of
association contain provisions requiring
the Directors to put a proposal for the
continuation of the Company to
shareholders at three yearly intervals. The
last vote took place at the 2025 AGM and
99.94% voted in favour. The next
continuation vote is due to be proposed at
the AGM in 2028.
KPIs
The Board reviews performance, using a number of key
measures, to monitor and assess the Company’s success in
achieving its objective. Further comment on performance can be
found in the Chair’s Statement. The following KPIs are used:
NAV performance; •
Share price performance; •
Share price discount/premium; and •
Ongoing charges ratio. •
All of the above KPIs are alternative performance measures.
Further details of these can be found on pages 105 and 106.
The performance against these KPIs is reported on page 5.
Investment objective
The Company seeks to provide a high rate
of total return through investment in
equities and equity-related securities of
companies trading in the Asia Paci c
region (excluding Japan). The Company
seeks to o er a degree of capital
preservation through the tactical use of
derivative instruments.
Investment policy
The Company invests principally in
a&diversi ed portfolio of 40-70 companies
operating primarily in Asia, including
Australasia but excluding Japan. It is
intended that the Company will have
a&bias to investing in small and mid cap
companies.
Investments may be made in companies
listed on the stock markets of countries
located in the region and/or listed
elsewhere but controlled from within the
region and/or with a material exposure to
the region. The Company will focus on
investing in companies with sound
balance sheets, professional management
and capital allocation policies that are
aligned with the interests of minority
shareholders.
The use of derivatives to protect the
capital value of the portfolio or for e cient
portfolio management is fundamental to
the strategy of the Company’s Portfolio
Managers. Such derivatives may include
listed futures, call options, long puts,
OTC&instruments and instruments to
hedge currency exposure with Board
approval. The Board will monitor the
e ectiveness of the underlying process
and the use of derivatives.
In order to obtain further exposure to
equity indices or individual stocks, the
Company may enter into contracts for
di erence where the underlying
investments are not delivered and
settlement is made in cash. In extreme
circumstances, and subject to Board
approval, the majority, or even all, of the
Company’s assets could be held in cash or
near cash instruments, with appropriate
diversi cation of cash held on deposit.
The Company may use gearing to enhance
performance but net gearing will not
exceed 30% of net asset value.
The Company does not tie its portfolio
construction to the constituents of any
benchmark; instead, the size of stock
positions is set on an absolute basis
re ecting where the best potential risk
adjusted returns are to be found.
Investment restrictions and spread of investment risk
The key restrictions imposed on the
Manager are that:
a) no more than 15% of the Company’s
total net assets, at the date of
acquisition, may be invested in any
one single company or group of
companies;
b) subject to the approval of the Board,
the Company may invest in collective
vehicles. If it was to do so, however, no
more than 10% of the Company’s total
net assets, at the date of acquisition,
may be invested in UK listed closed-
ended investment companies unless
such companies have a stated
investment policy not to invest more
than 15% of their gross assets in other
UK listed closed-ended investment
companies;
(c) the Company will not invest more than
15% of its gross assets in UK listed
closed-ended investment companies;
(d) no more than 50% of the Company’s
total net assets may be invested in
equities listed on a single stock
exchange; and
(e) the Manager will not invest in unlisted
equities other than with the approval
of the Board or when entitlements are
received or immediately prior to
a&listing.
The investment portfolio on pages 28 to
30 demonstrates that, as at 31 December
2025, the Company held 58 investments
spread over multiple countries and in
a&range of industry sectors. The two
largest investments, TSMC and Tencent
represented 14.3% and 7.1% respectively
of total investments.
The Board believes that the objective of
spreading risk has been achieved.
Section 3: Strategic Report
39 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
The Company’s shares are listed on the
London Stock Exchange, and the Company
is an investment trust in accordance with
section 1158 of the Corporation Tax
Act&2010. It is intended that the Company
will continue to conduct its a airs in
a&manner which will enable it to retain this
status. The Company is not a “close”
company for taxation purposes.
It is not intended that the Company
should have a limited life but the Directors
consider it desirable that the shareholders
should have the opportunity to review the
future of the Company at appropriate
intervals. Accordingly, the articles of
association contain provisions requiring
the Directors to put a proposal for the
continuation of the Company to
shareholders at three yearly intervals. The
last vote took place at the 2025 AGM and
99.94% voted in favour. The next
continuation vote is due to be proposed at
the AGM in 2028.
KPIs
The Board reviews performance, using a number of key
measures, to monitor and assess the Company’s success in
achieving its objective. Further comment on performance can be
found in the Chair’s Statement. The following KPIs are used:
NAV performance; •
Share price performance; •
Share price discount/premium; and •
Ongoing charges ratio. •
All of the above KPIs are alternative performance measures.
Further details of these can be found on pages 105 and 106.
The performance against these KPIs is reported on page 5.
Investment objective
The Company seeks to provide a high rate
of total return through investment in
equities and equity-related securities of
companies trading in the Asia Paci c
region (excluding Japan). The Company
seeks to o er a degree of capital
preservation through the tactical use of
derivative instruments.
Investment policy
The Company invests principally in
a&diversi ed portfolio of 40-70 companies
operating primarily in Asia, including
Australasia but excluding Japan. It is
intended that the Company will have
a&bias to investing in small and mid cap
companies.
Investments may be made in companies
listed on the stock markets of countries
located in the region and/or listed
elsewhere but controlled from within the
region and/or with a material exposure to
the region. The Company will focus on
investing in companies with sound
balance sheets, professional management
and capital allocation policies that are
aligned with the interests of minority
shareholders.
The use of derivatives to protect the
capital value of the portfolio or for e cient
portfolio management is fundamental to
the strategy of the Company’s Portfolio
Managers. Such derivatives may include
listed futures, call options, long puts,
OTC&instruments and instruments to
hedge currency exposure with Board
approval. The Board will monitor the
e ectiveness of the underlying process
and the use of derivatives.
In order to obtain further exposure to
equity indices or individual stocks, the
Company may enter into contracts for
di erence where the underlying
investments are not delivered and
settlement is made in cash. In extreme
circumstances, and subject to Board
approval, the majority, or even all, of the
Company’s assets could be held in cash or
near cash instruments, with appropriate
diversi cation of cash held on deposit.
The Company may use gearing to enhance
performance but net gearing will not
exceed 30% of net asset value.
The Company does not tie its portfolio
construction to the constituents of any
benchmark; instead, the size of stock
positions is set on an absolute basis
re ecting where the best potential risk
adjusted returns are to be found.
Investment restrictions and spread of investment risk
The key restrictions imposed on the
Manager are that:
a) no more than 15% of the Company’s
total net assets, at the date of
acquisition, may be invested in any
one single company or group of
companies;
b) subject to the approval of the Board,
the Company may invest in collective
vehicles. If it was to do so, however, no
more than 10% of the Company’s total
net assets, at the date of acquisition,
may be invested in UK listed closed-
ended investment companies unless
such companies have a stated
investment policy not to invest more
than 15% of their gross assets in other
UK listed closed-ended investment
companies;
(c) the Company will not invest more than
15% of its gross assets in UK listed
closed-ended investment companies;
(d) no more than 50% of the Company’s
total net assets may be invested in
equities listed on a single stock
exchange; and
(e) the Manager will not invest in unlisted
equities other than with the approval
of the Board or when entitlements are
received or immediately prior to
a&listing.
The investment portfolio on pages 28 to
30 demonstrates that, as at 31 December
2025, the Company held 58 investments
spread over multiple countries and in
a&range of industry sectors. The two
largest investments, TSMC and Tencent
represented 14.3% and 7.1% respectively
of total investments.
The Board believes that the objective of
spreading risk has been achieved.
Section 3: Strategic Report
39 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Corporate and social responsibility
Diversity policy
The Board has adopted a diversity and
inclusion policy. Appointments and
succession plans will always be based on
merit and objective criteria and, within this
context, the Board seeks to promote
diversity, inclusion and equal opportunity.
The Board will encourage any recruitment
agencies it engages to nd 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
o ered.
The Board also considers the diversity and
inclusion policies of its key service
providers.
Statement on Board diversity –
gender and ethnic background
The Board has made a commitment to
consider diversity when reviewing the
composition of the Board and notes the
UK Listing Rule requirements on board
diversity:
at least 40% of individuals on the board •
are women;
at least one senior board position is •
held by a woman; and
at least one individual on the board is •
from a minority ethnic background.
The FCA de nes senior board positions as
Chair, Chief Executive O cer (CEO), Chief
Financial O cer (CFO) or Senior
Independent Director (SID). As an
investment trust with no executive o cers,
the Company has no CEO or CFO. The
Board has re ected the senior positions of
the Chair of the Board, SID and the Chair
of the Audit and Risk Committee in its
diversity tables.
The Board has chosen to align its diversity
reporting reference date with the
Company’s nancial year end and
proposes to maintain this alignment for
future reporting periods. The following
information has been provided by each
Director through the completion of
a&questionnaire.
As at 31 December 2025, the Company
met two of the three criteria, including the
target in relation to the number of women
on the Board and for at least one senior
board position to be held by a woman. The
target for at least one individual on the
Board to be from a minority ethnic
background was not met. The Board is
conscious that, while the Directors are all
independent and have a diverse range of
views and experience, its small
composition will make these targets
challenging to fully implement.
Recognising the bene ts of a diverse
Board, it is intended that improving
diversity will continue to be a key factor
when the Board makes its next
appointment. There have been no
changes since 31 December 2025 to the
date of publication of the Annual Report
and Financial Statements.
The tables below set out the gender and ethnic diversity composition of the Board as at 31 December 2025 and at the date of this
report.
Number of
Number of % senior positions 1
Gender identity Board members of the Board on the Board
Men 2 50.0 1
Women 2 50.0 2
Not speci ed/prefer not to say – – –
Number of
Number of % senior positions 1
Ethnic background Board members of the Board on the Board
White British or other White (including minority-white groups) 4 100.0 3
Mixed/Multiple Ethnic Groups – – –
Asian/Asian British – – –
Black/African/Caribbean/Black British – – –
Other ethnic group, including Arab – – –
Not speci ed/prefer not to say – – –
1 The Company considers the positions of Chair of the Board of Directors, SID and Chair of the Audit and Risk Committee to be senior positions of the Board.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
40
Diversity policy
The Board has adopted a diversity and
inclusion policy. Appointments and
succession plans will always be based on
merit and objective criteria and, within this
context, the Board seeks to promote
diversity, inclusion and equal opportunity.
The Board will encourage any recruitment
agencies it engages to nd 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
o ered.
The Board also considers the diversity and
inclusion policies of its key service
providers.
Statement on Board diversity –
gender and ethnic background
The Board has made a commitment to
consider diversity when reviewing the
composition of the Board and notes the
UK Listing Rule requirements on board
diversity:
at least 40% of individuals on the board •
are women;
at least one senior board position is •
held by a woman; and
at least one individual on the board is •
from a minority ethnic background.
The FCA de nes senior board positions as
Chair, Chief Executive O cer (CEO), Chief
Financial O cer (CFO) or Senior
Independent Director (SID). As an
investment trust with no executive o cers,
the Company has no CEO or CFO. The
Board has re ected the senior positions of
the Chair of the Board, SID and the Chair
of the Audit and Risk Committee in its
diversity tables.
The Board has chosen to align its diversity
reporting reference date with the
Company’s nancial year end and
proposes to maintain this alignment for
future reporting periods. The following
information has been provided by each
Director through the completion of
a&questionnaire.
As at 31 December 2025, the Company
met two of the three criteria, including the
target in relation to the number of women
on the Board and for at least one senior
board position to be held by a woman. The
target for at least one individual on the
Board to be from a minority ethnic
background was not met. The Board is
conscious that, while the Directors are all
independent and have a diverse range of
views and experience, its small
composition will make these targets
challenging to fully implement.
Recognising the bene ts of a diverse
Board, it is intended that improving
diversity will continue to be a key factor
when the Board makes its next
appointment. There have been no
changes since 31 December 2025 to the
date of publication of the Annual Report
and Financial Statements.
The tables below set out the gender and ethnic diversity composition of the Board as at 31 December 2025 and at the date of this
report.
Number of
Number of % senior positions 1
Gender identity Board members of the Board on the Board
Men 2 50.0 1
Women 2 50.0 2
Not speci ed/prefer not to say – – –
Number of
Number of % senior positions 1
Ethnic background Board members of the Board on the Board
White British or other White (including minority-white groups) 4 100.0 3
Mixed/Multiple Ethnic Groups – – –
Asian/Asian British – – –
Black/African/Caribbean/Black British – – –
Other ethnic group, including Arab – – –
Not speci ed/prefer not to say – – –
1 The Company considers the positions of Chair of the Board of Directors, SID and Chair of the Audit and Risk Committee to be senior positions of the Board.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
40
Financial crime policy
The Company continues to be committed
to carrying out its business fairly, honestly
and openly, and operates a nancial crime
policy, covering bribery and corruption, tax
evasion, money laundering, terrorist
nancing and sanctions. The Company
also seeks con rmation that its service
providers’ policies are operating soundly.
Greenhouse gas emissions and
energy usage
As the Company outsources its operations
to third parties, it consumed less than
40,000 kWh during the year and so has no
greenhouse gas emissions, energy
consumption or energy e ciency action to
report.
Modern Slavery Act 2015
As an investment trust, the Company does
not provide goods or services in the
normal course of business and does not
have customers. Accordingly, the Directors
consider that the Company is not required
to make any slavery or human tra cking
statement under the Modern Slavery
Act&2015.
Climate related disclosures
Investment trusts are currently exempt
from the Taskforce for Climate-Related
Financial Disclosures (“TCFD”). However,
the Company’s Manager produces an
annual product level disclosure consistent
with the TCFD which can be found here:
https://mybrand.schroders.com/m/581445
91f82f1189/original/TCFD-SG12092M-
Schroder-Asian-Total-Return-Investment-
Company-20241231.pdf
Responsible investment
The Board delegates to the Manager the
responsibility to engage with investee
companies on social, environmental and
governance issues and to promote best
practice. The Board also expects the
Manager to exercise the Company’s voting
rights in consideration of these issues.
In addition to the description of the
Manager’s integration of ESG into the
investment process and the details in this
Strategic Report, a description of the
Manager’s policy on these matters can be
found on the Schroders website at
www.schroders.com. The Board notes that
the Manager believes that companies with
good ESG management often perform
better and deliver superior returns over
time. Engaging with companies to
understand how they approach ESG
management is an integral part of the
investment process.
Schroders has committed to the
UN&Global Compact, amongst codes and
standards, and information about the
application of Schroders’ sustainability and
responsible investment policies can be
found at:
https://www.schroders.com/en/sustainabili
ty/corporate-responsibility/.
The Board has received reporting from the
Manager on the application of its policy.
Promotion
The Company promotes its shares to
a&broad range of investors including
discretionary wealth managers, private
investors, nancial advisers and
institutions which have the potential to be
long-term supporters of the investment
strategy. The Company seeks to achieve
this through its Manager and corporate
broker, which promote the shares of the
Company through regular contact with
both current and potential shareholders
as well as their advisers.
These activities consist of investor lunches,
one-on-one meetings, regional road
shows and attendance at conferences for
professional investors. In addition, the
Company’s shares are supported by the
Manager’s wider marketing of investment
companies targeted at all types of
investors; this includes maintaining close
relationships with adviser and execution-
only platforms, advertising in the trade
press, maintaining relationships with
nancial journalists and the provision of
digital information on Schroders’ website.
The Board also seeks active engagement
with investors, and meetings with the
Chair are o ered to investors, when
appropriate.
Shareholders are encouraged to sign up
to the Manager’s Investment Trusts
update, http://www.schroders.com/trust-
updates/ to receive information on the
Company directly.
Section 3: Strategic Report
41 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
The Company continues to be committed
to carrying out its business fairly, honestly
and openly, and operates a nancial crime
policy, covering bribery and corruption, tax
evasion, money laundering, terrorist
nancing and sanctions. The Company
also seeks con rmation that its service
providers’ policies are operating soundly.
Greenhouse gas emissions and
energy usage
As the Company outsources its operations
to third parties, it consumed less than
40,000 kWh during the year and so has no
greenhouse gas emissions, energy
consumption or energy e ciency action to
report.
Modern Slavery Act 2015
As an investment trust, the Company does
not provide goods or services in the
normal course of business and does not
have customers. Accordingly, the Directors
consider that the Company is not required
to make any slavery or human tra cking
statement under the Modern Slavery
Act&2015.
Climate related disclosures
Investment trusts are currently exempt
from the Taskforce for Climate-Related
Financial Disclosures (“TCFD”). However,
the Company’s Manager produces an
annual product level disclosure consistent
with the TCFD which can be found here:
https://mybrand.schroders.com/m/581445
91f82f1189/original/TCFD-SG12092M-
Schroder-Asian-Total-Return-Investment-
Company-20241231.pdf
Responsible investment
The Board delegates to the Manager the
responsibility to engage with investee
companies on social, environmental and
governance issues and to promote best
practice. The Board also expects the
Manager to exercise the Company’s voting
rights in consideration of these issues.
In addition to the description of the
Manager’s integration of ESG into the
investment process and the details in this
Strategic Report, a description of the
Manager’s policy on these matters can be
found on the Schroders website at
www.schroders.com. The Board notes that
the Manager believes that companies with
good ESG management often perform
better and deliver superior returns over
time. Engaging with companies to
understand how they approach ESG
management is an integral part of the
investment process.
Schroders has committed to the
UN&Global Compact, amongst codes and
standards, and information about the
application of Schroders’ sustainability and
responsible investment policies can be
found at:
https://www.schroders.com/en/sustainabili
ty/corporate-responsibility/.
The Board has received reporting from the
Manager on the application of its policy.
Promotion
The Company promotes its shares to
a&broad range of investors including
discretionary wealth managers, private
investors, nancial advisers and
institutions which have the potential to be
long-term supporters of the investment
strategy. The Company seeks to achieve
this through its Manager and corporate
broker, which promote the shares of the
Company through regular contact with
both current and potential shareholders
as well as their advisers.
These activities consist of investor lunches,
one-on-one meetings, regional road
shows and attendance at conferences for
professional investors. In addition, the
Company’s shares are supported by the
Manager’s wider marketing of investment
companies targeted at all types of
investors; this includes maintaining close
relationships with adviser and execution-
only platforms, advertising in the trade
press, maintaining relationships with
nancial journalists and the provision of
digital information on Schroders’ website.
The Board also seeks active engagement
with investors, and meetings with the
Chair are o ered to investors, when
appropriate.
Shareholders are encouraged to sign up
to the Manager’s Investment Trusts
update, http://www.schroders.com/trust-
updates/ to receive information on the
Company directly.
Section 3: Strategic Report
41 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Stakeholder Engagement – Section 172 Report
During the year, the Board discharged its duty under section 172 of the Companies Act 2006
to promote the success of the Company for the benefit of its members as a whole, having
regard to the interests of all stakeholders.
Shareholders
Signi cance
Continued shareholder
support and engagement are
critical to the continuing
existence of the Company and
the delivery of the long-term
strategy of its business.
Engagement
AGM: The Company welcomes attendance and
participation from shareholders at the AGM.
Shareholders have the opportunity to meet the
Directors and ask questions. The Board values
the feedback it receives from shareholders
which is incorporated into Board discussions.
Publications: The annual and half year results
presentations, as well as factsheets, are
available on the Company’s web pages with
their availability announced via the London
Stock Exchange. Feedback and/or questions
received from shareholders enable the
Company to evolve its reporting which, in turn,
helps to deliver transparent and
understandable updates.
Shareholder communication: The Manager
communicates with shareholders on a regular
basis. All investors are o ered the opportunity
to meet the Chair, SID, or other Board
members, without using the Manager or
Company Secretary as a conduit, by writing to
the Company’s registered o ce. The Board
also corresponds with shareholders by letter
and email. The Board receives regular
feedback from its broker on investor
engagement and sentiment.
Investor Relations updates: At every Board
meeting, the Directors receive updates on
share trading activity, share price performance
and any shareholders’ feedback, as well as any
publications or comments in the press. To gain
a deeper understanding of the views of its
shareholders and potential investors, the
Manager also undertakes investor roadshows
throughout the year.
Continuation vote: The Company holds
a&continuation vote every three years to allow
shareholders to decide on the long-term
future of the Company. The last continuation
vote took place at the AGM held in 2025 with
99.94% of votes cast in favour.
2025 application
At the AGM in 2025, questions and feedback from
shareholders were welcomed. The Board look
forward to meeting and interacting with
shareholders at the AGM in 2026.
The Company’s web pages host the annual and
half year reports. Via the Company’s web pages,
shareholders can subscribe to the Schroders
investment trusts newsletter to receive regular
updates on the Company.
The Chair of the Board met with a number of the
Company’s major shareholders prior to the
continuation resolution put forward at the AGM
and during the year. Their views were taken into
consideration as part of the Board’s duty to
ensure their interests were taken into account.
The Manager also engaged with a number of the
Company’s shareholders and investors prior to
the continuation resolution and regular feedback
was provided to the Board.
A number of promotional activities were
undertaken during the year including Portfolio
Manager interviews, a ‘Meet the Manager’ event
with nancial journalists, webinars and coverage
in key publications.
The Board also continues to work with Kepler on
promoting the Company through its research
notes which are published following the release of
the Company’s annual results.
As an externally managed investment trust, the Company has no
employees, operations or premises and a number of the
Company’s functions are outsourced to third parties.
The Board identi ed its key stakeholders as the Company’s
shareholders, the Manager, Investment Manager, investee
companies, the Company’s lender and other service providers.
The table below explains how the Directors have engaged with all
stakeholders during the year, outlines the key activities
undertaken and the key decisions made by the Board.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
42
During the year, the Board discharged its duty under section 172 of the Companies Act 2006
to promote the success of the Company for the benefit of its members as a whole, having
regard to the interests of all stakeholders.
Shareholders
Signi cance
Continued shareholder
support and engagement are
critical to the continuing
existence of the Company and
the delivery of the long-term
strategy of its business.
Engagement
AGM: The Company welcomes attendance and
participation from shareholders at the AGM.
Shareholders have the opportunity to meet the
Directors and ask questions. The Board values
the feedback it receives from shareholders
which is incorporated into Board discussions.
Publications: The annual and half year results
presentations, as well as factsheets, are
available on the Company’s web pages with
their availability announced via the London
Stock Exchange. Feedback and/or questions
received from shareholders enable the
Company to evolve its reporting which, in turn,
helps to deliver transparent and
understandable updates.
Shareholder communication: The Manager
communicates with shareholders on a regular
basis. All investors are o ered the opportunity
to meet the Chair, SID, or other Board
members, without using the Manager or
Company Secretary as a conduit, by writing to
the Company’s registered o ce. The Board
also corresponds with shareholders by letter
and email. The Board receives regular
feedback from its broker on investor
engagement and sentiment.
Investor Relations updates: At every Board
meeting, the Directors receive updates on
share trading activity, share price performance
and any shareholders’ feedback, as well as any
publications or comments in the press. To gain
a deeper understanding of the views of its
shareholders and potential investors, the
Manager also undertakes investor roadshows
throughout the year.
Continuation vote: The Company holds
a&continuation vote every three years to allow
shareholders to decide on the long-term
future of the Company. The last continuation
vote took place at the AGM held in 2025 with
99.94% of votes cast in favour.
2025 application
At the AGM in 2025, questions and feedback from
shareholders were welcomed. The Board look
forward to meeting and interacting with
shareholders at the AGM in 2026.
The Company’s web pages host the annual and
half year reports. Via the Company’s web pages,
shareholders can subscribe to the Schroders
investment trusts newsletter to receive regular
updates on the Company.
The Chair of the Board met with a number of the
Company’s major shareholders prior to the
continuation resolution put forward at the AGM
and during the year. Their views were taken into
consideration as part of the Board’s duty to
ensure their interests were taken into account.
The Manager also engaged with a number of the
Company’s shareholders and investors prior to
the continuation resolution and regular feedback
was provided to the Board.
A number of promotional activities were
undertaken during the year including Portfolio
Manager interviews, a ‘Meet the Manager’ event
with nancial journalists, webinars and coverage
in key publications.
The Board also continues to work with Kepler on
promoting the Company through its research
notes which are published following the release of
the Company’s annual results.
As an externally managed investment trust, the Company has no
employees, operations or premises and a number of the
Company’s functions are outsourced to third parties.
The Board identi ed its key stakeholders as the Company’s
shareholders, the Manager, Investment Manager, investee
companies, the Company’s lender and other service providers.
The table below explains how the Directors have engaged with all
stakeholders during the year, outlines the key activities
undertaken and the key decisions made by the Board.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
42
Manager
Investment Manager
Signi cance
The Company’s principal
relationship is with the
Manager, Schroder Unit Trusts
Limited.
The Manager sub-delegates
investment management to
Schroder Investment
Management Limited, the
‘Investment Manager’.
The Manager also promotes
the Company through its
investment trust sales,
marketing and PR teams.
Engagement
The Board maintains strong lines of
communication with the Manager via its
dedicated client director to ensure that the
Manager is fully aware of the Board’s views and
requirements.
Representatives of the investment trust sales,
marketing and PR teams regularly attend
Board meetings.
The Board, through the Management
Engagement Committee formally reviews the
performance of the Manager and contractual
terms of engagement at least annually.
2025 application
The Board received timely and accurate
information from the Manager and the dedicated
client director attended each Board meeting.
Between scheduled Board meetings the client
director ensured the Board was informed of
Manager and shareholder views,
discount/premium levels and any other
substantive matters.
The Manager has continued to manage the
Company’s assets in accordance with the mandate
provided by shareholders, with oversight provided
by the Board.
Signi cance
The key outsourced function is
the provision of investment
management services,
delegated by the Manager to
the Investment Manager.
The Investment Manager’s
performance is critical for the
Company to deliver its
investment strategy
successfully and meet its
investment objective.
Engagement
Maintaining a close and constructive working
relationship with the Investment Manager is
crucial as the Board and the Investment
Manager both aim to continue to achieve
a&high rate of total return in line with the
investment objective. Representatives of the
Investment Manager attend all Board and
certain Committee meetings in order to
update the Directors on the performance of
the investments, the implementation of the
investment strategy and objective.
Important components in the Board’s
collaboration with the Investment Manager
are:
• encouraging open discussion with the
Investment Manager;
• recognising that the interests of
shareholders and the Investment Manager
are, for the most part, well aligned, adopting
a tone of constructive challenge, balanced
when those interests are not fully congruent
by robust negotiation of the Investment
Manager’s terms of engagement; and
• the Management Engagement Committee
reviews the performance of the Investment
Manager at least annually.
2025 application
Representatives of the Investment Manager,
including at least one of the Portfolio Managers,
attended each Board meeting to provide an
update on the investment portfolio along with
presenting on macroeconomic issues.
The portfolio activities undertaken by the
Investment Manager and the impact of decisions
a ecting investment performance are set out in
the Investment Manager’s Review on pages 12
to&35.
The Board undertook its annual visit to the region
and visited Hong Kong and Mainland China, as
part of which due diligence meetings were
undertaken with key personnel from the
Investment Manager.
Section 3: Strategic Report
43 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Investment Manager
Signi cance
The Company’s principal
relationship is with the
Manager, Schroder Unit Trusts
Limited.
The Manager sub-delegates
investment management to
Schroder Investment
Management Limited, the
‘Investment Manager’.
The Manager also promotes
the Company through its
investment trust sales,
marketing and PR teams.
Engagement
The Board maintains strong lines of
communication with the Manager via its
dedicated client director to ensure that the
Manager is fully aware of the Board’s views and
requirements.
Representatives of the investment trust sales,
marketing and PR teams regularly attend
Board meetings.
The Board, through the Management
Engagement Committee formally reviews the
performance of the Manager and contractual
terms of engagement at least annually.
2025 application
The Board received timely and accurate
information from the Manager and the dedicated
client director attended each Board meeting.
Between scheduled Board meetings the client
director ensured the Board was informed of
Manager and shareholder views,
discount/premium levels and any other
substantive matters.
The Manager has continued to manage the
Company’s assets in accordance with the mandate
provided by shareholders, with oversight provided
by the Board.
Signi cance
The key outsourced function is
the provision of investment
management services,
delegated by the Manager to
the Investment Manager.
The Investment Manager’s
performance is critical for the
Company to deliver its
investment strategy
successfully and meet its
investment objective.
Engagement
Maintaining a close and constructive working
relationship with the Investment Manager is
crucial as the Board and the Investment
Manager both aim to continue to achieve
a&high rate of total return in line with the
investment objective. Representatives of the
Investment Manager attend all Board and
certain Committee meetings in order to
update the Directors on the performance of
the investments, the implementation of the
investment strategy and objective.
Important components in the Board’s
collaboration with the Investment Manager
are:
• encouraging open discussion with the
Investment Manager;
• recognising that the interests of
shareholders and the Investment Manager
are, for the most part, well aligned, adopting
a tone of constructive challenge, balanced
when those interests are not fully congruent
by robust negotiation of the Investment
Manager’s terms of engagement; and
• the Management Engagement Committee
reviews the performance of the Investment
Manager at least annually.
2025 application
Representatives of the Investment Manager,
including at least one of the Portfolio Managers,
attended each Board meeting to provide an
update on the investment portfolio along with
presenting on macroeconomic issues.
The portfolio activities undertaken by the
Investment Manager and the impact of decisions
a ecting investment performance are set out in
the Investment Manager’s Review on pages 12
to&35.
The Board undertook its annual visit to the region
and visited Hong Kong and Mainland China, as
part of which due diligence meetings were
undertaken with key personnel from the
Investment Manager.
Section 3: Strategic Report
43 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Investee Companies
Lender
Other service providers
Signi cance
The Board is committed to
responsible investing and
monitors the activities of
investee companies through its
delegation to the Investment
Manager.
Engagement
The Investment Manager conducts face-to-
face and/or virtual meetings with the
management teams of all investee companies
to understand current trading and prospects
for their businesses, and to ensure that their
ESG investment principles and approach are
understood.
The Investment Manager has discretionary
powers to exercise the Company’s voting
rights on resolutions proposed by the investee
companies within the Company’s portfolio. The
Investment Manager reports to the Board on
stewardship (including voting) issues and the
Board has the opportunity to question the
rationale for voting decisions made.
Through regular engagement and the exercise
of voting rights, the Investment Manager
actively works with companies to improve
corporate standards, transparency and
accountability.
2025 application
The Board received regular updates on
engagement with investee companies from the
Investment Manager at its Board meetings.
In addition, the Board also visited Hong Kong and
Mainland China during the year and met with
investee companies and analysts to understand
better the challenges and opportunities in the
region.
During the year, the Investment Manager
engaged with many of its investee companies and
voted at shareholder meetings (further details can
be found on page 34).
Signi cance
Availability of funding and
liquidity are crucial to the
Company’s ability to take
advantage of investment
opportunities as they arise.
Engagement
Considering how important the availability of
funding is, the Company aims to demonstrate
to lenders that it is a well managed business
and, in particular, that the Board focuses
regularly and carefully on the management of
risk.
The Manager conducts the relationship with
the Company’s lender and reports to the
Board at each Board meeting, as and when
required, for renewals of terms or negotiation
of loan covenants. The Manager provides
a&monthly statement of compliance with the
loan covenants to the lender.
2025 application
During the year, gearing was regularly considered.
In July 2025 the Company entered into an
amendment and restatement agreement with The
Bank of Nova Scotia, London Branch in respect of
the multi-currency revolving credit facility, as
previously amended and restated in July 2024. The
amendment and restatement of the
multi-currency revolving credit facility was
undertaken on a secured basis for a further year.
2025 application
Under delegated authority from the Board, the
Management Engagement Committee reviewed
all&material third party service providers. During
the&year the Board considered the potential
bene ts of changing the Company’s provider of
depositary, custodian and fund administration
services. After careful consideration the Board
agreed that it was in the best interests of the
Company to appoint J.P. Morgan as the new
provider of depositary, custodian and fund
administration services and the change was
e ective from September 2025.
The Board considered the ongoing appointments
of its other service providers to be in the best
interests of the Company and its shareholders as
a whole and will continue to monitor their
progress in the year ahead.
Engagement
The Board maintains regular contact with its
key external providers, both through the Board
and Committee meetings, which service
providers are periodically invited to attend, as
well as outside of the regular meeting cycle.
Their advice, as well as their operating
requirements and views, are routinely taken
into account. The need to foster business
relationships with key service providers is
central to Directors’ decision-making as the
Board of an externally managed investment
trust.
Signi cance
In order to operate as an
investment trust listed on the
London Stock Exchange, the
Company relies on a range of
advisers and service providers.
The Company ensures that the
third parties to which the
services have been outsourced
complete their roles in line with
contractual arrangements and
expectation thereby
supporting the Company.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
44
Lender
Other service providers
Signi cance
The Board is committed to
responsible investing and
monitors the activities of
investee companies through its
delegation to the Investment
Manager.
Engagement
The Investment Manager conducts face-to-
face and/or virtual meetings with the
management teams of all investee companies
to understand current trading and prospects
for their businesses, and to ensure that their
ESG investment principles and approach are
understood.
The Investment Manager has discretionary
powers to exercise the Company’s voting
rights on resolutions proposed by the investee
companies within the Company’s portfolio. The
Investment Manager reports to the Board on
stewardship (including voting) issues and the
Board has the opportunity to question the
rationale for voting decisions made.
Through regular engagement and the exercise
of voting rights, the Investment Manager
actively works with companies to improve
corporate standards, transparency and
accountability.
2025 application
The Board received regular updates on
engagement with investee companies from the
Investment Manager at its Board meetings.
In addition, the Board also visited Hong Kong and
Mainland China during the year and met with
investee companies and analysts to understand
better the challenges and opportunities in the
region.
During the year, the Investment Manager
engaged with many of its investee companies and
voted at shareholder meetings (further details can
be found on page 34).
Signi cance
Availability of funding and
liquidity are crucial to the
Company’s ability to take
advantage of investment
opportunities as they arise.
Engagement
Considering how important the availability of
funding is, the Company aims to demonstrate
to lenders that it is a well managed business
and, in particular, that the Board focuses
regularly and carefully on the management of
risk.
The Manager conducts the relationship with
the Company’s lender and reports to the
Board at each Board meeting, as and when
required, for renewals of terms or negotiation
of loan covenants. The Manager provides
a&monthly statement of compliance with the
loan covenants to the lender.
2025 application
During the year, gearing was regularly considered.
In July 2025 the Company entered into an
amendment and restatement agreement with The
Bank of Nova Scotia, London Branch in respect of
the multi-currency revolving credit facility, as
previously amended and restated in July 2024. The
amendment and restatement of the
multi-currency revolving credit facility was
undertaken on a secured basis for a further year.
2025 application
Under delegated authority from the Board, the
Management Engagement Committee reviewed
all&material third party service providers. During
the&year the Board considered the potential
bene ts of changing the Company’s provider of
depositary, custodian and fund administration
services. After careful consideration the Board
agreed that it was in the best interests of the
Company to appoint J.P. Morgan as the new
provider of depositary, custodian and fund
administration services and the change was
e ective from September 2025.
The Board considered the ongoing appointments
of its other service providers to be in the best
interests of the Company and its shareholders as
a whole and will continue to monitor their
progress in the year ahead.
Engagement
The Board maintains regular contact with its
key external providers, both through the Board
and Committee meetings, which service
providers are periodically invited to attend, as
well as outside of the regular meeting cycle.
Their advice, as well as their operating
requirements and views, are routinely taken
into account. The need to foster business
relationships with key service providers is
central to Directors’ decision-making as the
Board of an externally managed investment
trust.
Signi cance
In order to operate as an
investment trust listed on the
London Stock Exchange, the
Company relies on a range of
advisers and service providers.
The Company ensures that the
third parties to which the
services have been outsourced
complete their roles in line with
contractual arrangements and
expectation thereby
supporting the Company.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
44
Examples of stakeholder consideration during the year
The Directors were particularly mindful of stakeholder considerations in reaching the following key decisions during the year ended
31&December 2025:
the declaration of a nal dividend for the year ended 31 December 2024 of 11.50p per ordinary share which, following approval by •
shareholders at the AGM on 24&April 2025 was paid on 9 May 2025;
the implementation of the Board’s discount control policy which aims to achieve a discount to NAV of no more than 5% in normal •
market conditions;
the Board entered into an amendment and restatement agreement in July 2025 in respect of its multi-currency revolving credit •
facility. Given the speci c requirements of the Company and various factors, including the interest rate environment, the Board, when
considering the amendment and restatement of the facility, concluded that the one year revolving credit facility remained the most
appropriate arrangement and The Bank of Nova Scotia, London Branch the most appropriate provider of the facility, on a secured
basis;
maintaining the Company’s disciplined gearing framework, based on a number of valuation indicators to increase market exposure, •
which should, over the longer term, enhance returns to shareholders. The Company used derivative hedging instruments, including
the continued usage of CFDs as a exible and cost e ective means of borrowing, in addition to borrowing under the revolving credit
facility;
resolving that the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best •
interests of shareholders as a whole;
during the year the Board considered the potential bene ts of changing the Company’s provider of depositary, custodian and fund •
administration services. It was agreed that it was in the best interest of the Company to change provider to J.P. Morgan; and
together with the Portfolio Managers, the Board undertook its annual visit to the region and visited Hong Kong and Mainland China •
to undertake due diligence meetings with key personnel from the Investment Manager, strategists and investee companies.
Following the year end, the Board declared a nal dividend of 11.50p per ordinary share which, if approved by shareholders at the AGM
on 23 April 2026 will be paid on 11 May 2026.
Section 3: Strategic Report
45 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
The Directors were particularly mindful of stakeholder considerations in reaching the following key decisions during the year ended
31&December 2025:
the declaration of a nal dividend for the year ended 31 December 2024 of 11.50p per ordinary share which, following approval by •
shareholders at the AGM on 24&April 2025 was paid on 9 May 2025;
the implementation of the Board’s discount control policy which aims to achieve a discount to NAV of no more than 5% in normal •
market conditions;
the Board entered into an amendment and restatement agreement in July 2025 in respect of its multi-currency revolving credit •
facility. Given the speci c requirements of the Company and various factors, including the interest rate environment, the Board, when
considering the amendment and restatement of the facility, concluded that the one year revolving credit facility remained the most
appropriate arrangement and The Bank of Nova Scotia, London Branch the most appropriate provider of the facility, on a secured
basis;
maintaining the Company’s disciplined gearing framework, based on a number of valuation indicators to increase market exposure, •
which should, over the longer term, enhance returns to shareholders. The Company used derivative hedging instruments, including
the continued usage of CFDs as a exible and cost e ective means of borrowing, in addition to borrowing under the revolving credit
facility;
resolving that the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best •
interests of shareholders as a whole;
during the year the Board considered the potential bene ts of changing the Company’s provider of depositary, custodian and fund •
administration services. It was agreed that it was in the best interest of the Company to change provider to J.P. Morgan; and
together with the Portfolio Managers, the Board undertook its annual visit to the region and visited Hong Kong and Mainland China •
to undertake due diligence meetings with key personnel from the Investment Manager, strategists and investee companies.
Following the year end, the Board declared a nal dividend of 11.50p per ordinary share which, if approved by shareholders at the AGM
on 23 April 2026 will be paid on 11 May 2026.
Section 3: Strategic Report
45 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Risk Report
This system assists the Board in
determining the nature and extent of the
risks it is willing to take in achieving the
Company’s strategic objectives.
Risk assessment and internal
controls review by the Board
Risk assessment includes consideration of
the scope and quality of the systems of
internal control operating within key
service providers, and ensures regular
communication of the results of
monitoring by such providers to the Audit
and Risk Committee, including the
incidence of signi cant control failings or
weaknesses that have been identi ed at
any time and the extent to which they
have resulted in unforeseen outcomes or
contingencies that may have a material
impact on the Company’s performance or
condition. The internal control
environment of the Manager, Investment
Manager, the depositary, custodian,
administrator and the registrar are tested
annually by independent external auditors.
The full reports are provided to the Audit
and Risk Committee alongside abridged
summaries.
Although the Board believes that it has
a&robust framework of internal controls in
place, this can provide only reasonable,
and not absolute, assurance against
material nancial misstatement or loss
and is designed to manage, not eliminate,
risk. Both the principal and emerging risks
and the monitoring system are also
subject to robust review at least annually.
The last assessment took place in March
2026.
During the year, the Board discussed and
monitored a number of risks which could
potentially impact the Company’s ability to
meet its strategic objectives. The Board
receives updates from the Manager,
Investment Manager, Company Secretary
and other service providers on emerging
risks that could a ect the Company. The
Board was mindful during the year of the
global environment including territorial
disputes, regional con icts, trade tensions
and sanctions, all of which may disrupt
global markets and economic stability.
Regarding the Trump administration in the
US, the Board remains mindful of
uncertainty surrounding potential changes
to nancial and public policy, particularly
concerns related to the implementation of
the tari regime. However, these were not
considered to be factors which explicitly
impacted the Company’s performance.
These risks are seen as exacerbating
existing risks and have been incorporated
in the macro factors, including the
geopolitical/economic environment and
climate change risk section in the table
below.
The Board considered in detail whether
there were any material emerging risks
and has continued to include the
development of AI as an emerging risk in
the table below.
No signi cant control failings or
weaknesses were identi ed from the Audit
and Risk Committee’s ongoing risk
assessment which has been in place
throughout the nancial year and up to
the date of this report. The Board is
satis ed that it has undertaken a detailed
review of the risks facing the Company.
A&full analysis of the nancial risks facing
the Company is set out in note 22 to the
nancial statements on pages 91 to 95.
Actions taken by the Board and, where
appropriate, its Committees, to manage
and mitigate the Company’s principal risks
and uncertainties are set out in the table
below. The “Change” column on the right
highlights, at a glance, the Board’s
assessment of any increases or decreases
in risk during the year after mitigation and
management. The arrows show the risks
as increased, decreased or unchanged.
The Board, through its delegation to the Audit and Risk Committee, is responsible for the
Company’s system of risk management and internal control and for reviewing its effectiveness.
The Board has adopted a detailed matrix of principal, and, where applicable, emerging, risks
affecting the Company’s business as an investment trust and has established associated
policies and processes designed to manage and, where possible, mitigate those risks, which
are monitored by the Audit and Risk Committee on an ongoing basis.
Risk Mitigation and management Change
Macro factors, including the geopolitical/economic environment and climate change
The risk has
increased
owing to new
con ict in the
Middle East
adding to
existing risks
posed by
other
geopolitical
tensions and
con icts and
by volatile US
trade policy.
Geopolitical risks are an input into the investment
process and are monitored at each Board meeting
where there is also an opportunity to discuss key market
risk factors with the Portfolio Managers. Further
information on geopolitical risk is included in the
Outlook section of the Chair’s Statement.
The Board visited Hong Kong and Mainland China
during the year and met with investee companies and
analysts to understand better the challenges and
opportunities in the region.
The Manager’s investment process includes an
assessment of climate related risks in the evaluation of
investee companies.
Increased geopolitical risks across the world, including
heightened trade tensions, territorial disputes and
ongoing regional con icts, as well as climate change,
may impact the volatility of global markets and
economic activity.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
46
This system assists the Board in
determining the nature and extent of the
risks it is willing to take in achieving the
Company’s strategic objectives.
Risk assessment and internal
controls review by the Board
Risk assessment includes consideration of
the scope and quality of the systems of
internal control operating within key
service providers, and ensures regular
communication of the results of
monitoring by such providers to the Audit
and Risk Committee, including the
incidence of signi cant control failings or
weaknesses that have been identi ed at
any time and the extent to which they
have resulted in unforeseen outcomes or
contingencies that may have a material
impact on the Company’s performance or
condition. The internal control
environment of the Manager, Investment
Manager, the depositary, custodian,
administrator and the registrar are tested
annually by independent external auditors.
The full reports are provided to the Audit
and Risk Committee alongside abridged
summaries.
Although the Board believes that it has
a&robust framework of internal controls in
place, this can provide only reasonable,
and not absolute, assurance against
material nancial misstatement or loss
and is designed to manage, not eliminate,
risk. Both the principal and emerging risks
and the monitoring system are also
subject to robust review at least annually.
The last assessment took place in March
2026.
During the year, the Board discussed and
monitored a number of risks which could
potentially impact the Company’s ability to
meet its strategic objectives. The Board
receives updates from the Manager,
Investment Manager, Company Secretary
and other service providers on emerging
risks that could a ect the Company. The
Board was mindful during the year of the
global environment including territorial
disputes, regional con icts, trade tensions
and sanctions, all of which may disrupt
global markets and economic stability.
Regarding the Trump administration in the
US, the Board remains mindful of
uncertainty surrounding potential changes
to nancial and public policy, particularly
concerns related to the implementation of
the tari regime. However, these were not
considered to be factors which explicitly
impacted the Company’s performance.
These risks are seen as exacerbating
existing risks and have been incorporated
in the macro factors, including the
geopolitical/economic environment and
climate change risk section in the table
below.
The Board considered in detail whether
there were any material emerging risks
and has continued to include the
development of AI as an emerging risk in
the table below.
No signi cant control failings or
weaknesses were identi ed from the Audit
and Risk Committee’s ongoing risk
assessment which has been in place
throughout the nancial year and up to
the date of this report. The Board is
satis ed that it has undertaken a detailed
review of the risks facing the Company.
A&full analysis of the nancial risks facing
the Company is set out in note 22 to the
nancial statements on pages 91 to 95.
Actions taken by the Board and, where
appropriate, its Committees, to manage
and mitigate the Company’s principal risks
and uncertainties are set out in the table
below. The “Change” column on the right
highlights, at a glance, the Board’s
assessment of any increases or decreases
in risk during the year after mitigation and
management. The arrows show the risks
as increased, decreased or unchanged.
The Board, through its delegation to the Audit and Risk Committee, is responsible for the
Company’s system of risk management and internal control and for reviewing its effectiveness.
The Board has adopted a detailed matrix of principal, and, where applicable, emerging, risks
affecting the Company’s business as an investment trust and has established associated
policies and processes designed to manage and, where possible, mitigate those risks, which
are monitored by the Audit and Risk Committee on an ongoing basis.
Risk Mitigation and management Change
Macro factors, including the geopolitical/economic environment and climate change
The risk has
increased
owing to new
con ict in the
Middle East
adding to
existing risks
posed by
other
geopolitical
tensions and
con icts and
by volatile US
trade policy.
Geopolitical risks are an input into the investment
process and are monitored at each Board meeting
where there is also an opportunity to discuss key market
risk factors with the Portfolio Managers. Further
information on geopolitical risk is included in the
Outlook section of the Chair’s Statement.
The Board visited Hong Kong and Mainland China
during the year and met with investee companies and
analysts to understand better the challenges and
opportunities in the region.
The Manager’s investment process includes an
assessment of climate related risks in the evaluation of
investee companies.
Increased geopolitical risks across the world, including
heightened trade tensions, territorial disputes and
ongoing regional con icts, as well as climate change,
may impact the volatility of global markets and
economic activity.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
46
Risk
Mitigation and management
Change
Investment objective and promotion
Financial
Investment strategy and performance
The Company’s investment objective may become out
of line with the requirements of investors and lead to
the Company becoming unattractive to investors,
decreasing demand for its shares and a widening
discount of the share price to the underlying NAV per
share.
The Company is not promoted in a way which
generates investor demand.
The appropriateness of the Company’s investment
mandate and the long-term investment strategy is
regularly reviewed by the Board and the success of the
Company in meeting its stated objectives is monitored.
The Board holds a strategy meeting each year to
consider the investment objective and policy and the
Company’s longer term investment strategy.
The share price relative to the NAV per share is kept
under review as a key performance indicator and is
considered against the Company’s peers on a regular
basis. The use of the share buyback authority is also
reviewed regularly. The Investment Manager and
corporate broker monitor market feedback and the
Board consider this at each quarterly Board meeting.
Proactive engagement with shareholders takes place via
the AGM, feedback from shareholder presentations, and
a formal programme of individual meetings are o ered
to major shareholders on an annual basis. All investors
are o ered the opportunity to meet the Chair, SID, or
other Board members, without using the Manager or
Company Secretary as a conduit, by writing to the
Company’s registered o ce. The Board also
corresponds with shareholders by letter and email.
The Manager provides a dedicated, experienced
investment trust sales, marketing and PR team. The
marketing programme continued to provide
promotional opportunities for the Company throughout
the year and included advertising, video and podcast
content, sponsored research provided by Kepler, and
‘roadshow’ events, visiting investors across the UK. The
performance of the Manager is evaluated, at least
annually by the Management Engagement Committee.
The nancial risks associated with the economic
environment that might impact the Company are
mitigated, to some extent, by the Investment Manager.
Note 22 to the nancial statements provides further
details of the steps taken to mitigate those risks
associated with the portfolio.
The Company is exposed to a range of nancial risks
including market, currency, liquidity, interest rate,
credit and fair values of nancial assets and nancial
liabilities.
The Investment Manager is experienced and has a long
track record in successfully investing in Asian equity
holdings.
The Board oversees the implementation of the
investment strategy, compliance with investment
restrictions and guidelines and keeps investment
performance under close review. One, or more, of the
Portfolio Managers attend all Board meetings and
review the portfolio with the Board using performance
data and KPIs.
A detailed formal appraisal of the performance of the
Manager and Investment Manager is carried out
annually by the Management Engagement Committee.
Poor stock selection or investing outside of the
investment restrictions and guidelines set by the
Board could result in poor performance.
Section 3: Strategic Report
47 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Investment objective and promotion
Financial
Investment strategy and performance
The Company’s investment objective may become out
of line with the requirements of investors and lead to
the Company becoming unattractive to investors,
decreasing demand for its shares and a widening
discount of the share price to the underlying NAV per
share.
The Company is not promoted in a way which
generates investor demand.
The appropriateness of the Company’s investment
mandate and the long-term investment strategy is
regularly reviewed by the Board and the success of the
Company in meeting its stated objectives is monitored.
The Board holds a strategy meeting each year to
consider the investment objective and policy and the
Company’s longer term investment strategy.
The share price relative to the NAV per share is kept
under review as a key performance indicator and is
considered against the Company’s peers on a regular
basis. The use of the share buyback authority is also
reviewed regularly. The Investment Manager and
corporate broker monitor market feedback and the
Board consider this at each quarterly Board meeting.
Proactive engagement with shareholders takes place via
the AGM, feedback from shareholder presentations, and
a formal programme of individual meetings are o ered
to major shareholders on an annual basis. All investors
are o ered the opportunity to meet the Chair, SID, or
other Board members, without using the Manager or
Company Secretary as a conduit, by writing to the
Company’s registered o ce. The Board also
corresponds with shareholders by letter and email.
The Manager provides a dedicated, experienced
investment trust sales, marketing and PR team. The
marketing programme continued to provide
promotional opportunities for the Company throughout
the year and included advertising, video and podcast
content, sponsored research provided by Kepler, and
‘roadshow’ events, visiting investors across the UK. The
performance of the Manager is evaluated, at least
annually by the Management Engagement Committee.
The nancial risks associated with the economic
environment that might impact the Company are
mitigated, to some extent, by the Investment Manager.
Note 22 to the nancial statements provides further
details of the steps taken to mitigate those risks
associated with the portfolio.
The Company is exposed to a range of nancial risks
including market, currency, liquidity, interest rate,
credit and fair values of nancial assets and nancial
liabilities.
The Investment Manager is experienced and has a long
track record in successfully investing in Asian equity
holdings.
The Board oversees the implementation of the
investment strategy, compliance with investment
restrictions and guidelines and keeps investment
performance under close review. One, or more, of the
Portfolio Managers attend all Board meetings and
review the portfolio with the Board using performance
data and KPIs.
A detailed formal appraisal of the performance of the
Manager and Investment Manager is carried out
annually by the Management Engagement Committee.
Poor stock selection or investing outside of the
investment restrictions and guidelines set by the
Board could result in poor performance.
Section 3: Strategic Report
47 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Risk
Mitigation and management
Change
Gearing/liquidity
ESG considerations
Key person
Compliance with regulations
Failure by the Company to disclose in an appropriate
manner how the investment process integrates
consideration of ESG factors could lead to the
Company’s shares being less attractive to investors as
well as potential valuation issues in the underlying
investee companies.
The consideration of material climate change risks, ESG
factors and the Sustainability Disclosure Requirements is
integrated into the investment process and reported at
Board meetings.
The Investment Manager considers and evaluates the
approach investee companies take to recognise and
mitigate material climate change risks and also
considers the portfolio’s investee companies carbon
footprint versus the Reference Index.
The Manager has implemented a comprehensive ESG
policy outlined in detail on pages 33 and 34.
The retirement or departure of one or more of the
Investment Manager’s key investment professionals
could impact the Company’s performance.
The Portfolio Managers have a contractual notice period
and the Investment Manager has a compensation and
incentive scheme to recruit and retain key sta including
the Portfolio Managers. A succession planning
programme has also been developed which seeks to
ease the impact that the loss of a key investment
professional may have on the Company’s performance.
The Investment Manager would notify any change in its
key professionals to the Board at the earliest possible
opportunity and the Board would be made aware of all
e orts made to ll a vacancy.
The Portfolio Managers are supported by a wider team
of experienced portfolio managers and research
analysts, mitigating the impact of the loss of any key
professionals by the Investment Manager on the
Company’s performance.
Failure to comply with relevant laws and regulations
could result in nes, loss of reputation and potentially
loss of investment trust status.
The Board and Manager monitor changes in
government policy and legislation which may have an
impact on the Company, and the Audit and Risk
Committee monitors compliance with regulations by
reviewing internal control reports from the Manager.
From time to time the Board employs external advisers
to advise on speci c matters.
The Company adopts an inappropriate gearing or
derivative strategy.
The Company’s investments are insu ciently liquid
resulting in breach of loan covenants in the event of
a&severe fall in valuations.
The Board sets gearing limits of 30% of NAV and the
Investment Manager reports to the Board on gearing
levels and derivative activity at every Board meeting.
Liquidity stress testing is carried out on a regular basis.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
48
Gearing/liquidity
ESG considerations
Key person
Compliance with regulations
Failure by the Company to disclose in an appropriate
manner how the investment process integrates
consideration of ESG factors could lead to the
Company’s shares being less attractive to investors as
well as potential valuation issues in the underlying
investee companies.
The consideration of material climate change risks, ESG
factors and the Sustainability Disclosure Requirements is
integrated into the investment process and reported at
Board meetings.
The Investment Manager considers and evaluates the
approach investee companies take to recognise and
mitigate material climate change risks and also
considers the portfolio’s investee companies carbon
footprint versus the Reference Index.
The Manager has implemented a comprehensive ESG
policy outlined in detail on pages 33 and 34.
The retirement or departure of one or more of the
Investment Manager’s key investment professionals
could impact the Company’s performance.
The Portfolio Managers have a contractual notice period
and the Investment Manager has a compensation and
incentive scheme to recruit and retain key sta including
the Portfolio Managers. A succession planning
programme has also been developed which seeks to
ease the impact that the loss of a key investment
professional may have on the Company’s performance.
The Investment Manager would notify any change in its
key professionals to the Board at the earliest possible
opportunity and the Board would be made aware of all
e orts made to ll a vacancy.
The Portfolio Managers are supported by a wider team
of experienced portfolio managers and research
analysts, mitigating the impact of the loss of any key
professionals by the Investment Manager on the
Company’s performance.
Failure to comply with relevant laws and regulations
could result in nes, loss of reputation and potentially
loss of investment trust status.
The Board and Manager monitor changes in
government policy and legislation which may have an
impact on the Company, and the Audit and Risk
Committee monitors compliance with regulations by
reviewing internal control reports from the Manager.
From time to time the Board employs external advisers
to advise on speci c matters.
The Company adopts an inappropriate gearing or
derivative strategy.
The Company’s investments are insu ciently liquid
resulting in breach of loan covenants in the event of
a&severe fall in valuations.
The Board sets gearing limits of 30% of NAV and the
Investment Manager reports to the Board on gearing
levels and derivative activity at every Board meeting.
Liquidity stress testing is carried out on a regular basis.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
48
Risk
Mitigation and management
Change
Oversight of service providers and control environment
Information technology resilience and security
Emerging risk
AI
The Company has no employees and has delegated
certain functions to a number of service providers.
Failure of controls, including as a result of fraud, and
poor performance of any service provider, could lead
to disruption, reputational damage or loss.
The Board receives reports from the Manager on its
internal controls and risk management throughout the
year, including those relating to cybersecurity, and
receives assurances from all its other signi cant service
providers on at least an annual basis.
The Management Engagement Committee reviews the
performance of key service providers at least annually.
The Manager also closely monitors the control
environments and quality of services provided by third
parties, including those of the depositary, through
service level agreements and regular meetings.
Directors usually attend an internal controls brie ng
session, hosted by the Manager in respect of the internal
controls of the Company’s key service providers
including the Company’s depositary and custodian, the
Company’s registrar, Equiniti, and Schroders Group
Internal Audit team. Although the brie ng session for
2025 was deferred due to the transition to J.P. Morgan,
updates were provided in quarterly meetings and an
extended brie ng session is scheduled to take place in
April 2026.
Experienced service providers are appointed by the
Company subject to due diligence processes and clearly
documented contractual arrangements which include
agreed service level speci cations and notice periods for
terminations.
In respect of the transition of depositary, custodian and
fund administration services from HSBC to J.P. Morgan,
a&detailed transition plan was put in place, closely
monitored by the Manager via a Risks, Assumptions,
Issues and Dependencies (RAID) log. The Board received
quarterly progress updates on the transition, with the
Audit and Risk Committee Chair acting as the primary
point of contact between update cycles. As part of the
year end audit process, Ernst & Young have reviewed the
migration of data from HSBC to J.P. Morgan and tested
that nancial records were appropriately transferred.
Further details of the internal controls which are in place
are set out in the Audit and Risk Committee’s Report on
pages&60 to 62.
Cyber risk such as fraud, sabotage or crime
perpetrated against the Company or any of its
third&party service providers could result in data theft,
service disruption and reputational damage.
Cybersecurity is closely monitored by the Audit and Risk
Committee as part of the review of the internal controls
of its service providers.
The Manager’s IT security team present to the Directors
on cybersecurity controls as part of the annual internal
controls brie ng session hosted by Schroders.
The development of AI presents both potential risks and opportunities to businesses in almost every sector. The extent of the risk
presented by AI is hard to assess at this point but the Board considers that it is an emerging risk and together with the Manager
and Investment Manager will monitor developments in this area.
Section 3: Strategic Report
49 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Oversight of service providers and control environment
Information technology resilience and security
Emerging risk
AI
The Company has no employees and has delegated
certain functions to a number of service providers.
Failure of controls, including as a result of fraud, and
poor performance of any service provider, could lead
to disruption, reputational damage or loss.
The Board receives reports from the Manager on its
internal controls and risk management throughout the
year, including those relating to cybersecurity, and
receives assurances from all its other signi cant service
providers on at least an annual basis.
The Management Engagement Committee reviews the
performance of key service providers at least annually.
The Manager also closely monitors the control
environments and quality of services provided by third
parties, including those of the depositary, through
service level agreements and regular meetings.
Directors usually attend an internal controls brie ng
session, hosted by the Manager in respect of the internal
controls of the Company’s key service providers
including the Company’s depositary and custodian, the
Company’s registrar, Equiniti, and Schroders Group
Internal Audit team. Although the brie ng session for
2025 was deferred due to the transition to J.P. Morgan,
updates were provided in quarterly meetings and an
extended brie ng session is scheduled to take place in
April 2026.
Experienced service providers are appointed by the
Company subject to due diligence processes and clearly
documented contractual arrangements which include
agreed service level speci cations and notice periods for
terminations.
In respect of the transition of depositary, custodian and
fund administration services from HSBC to J.P. Morgan,
a&detailed transition plan was put in place, closely
monitored by the Manager via a Risks, Assumptions,
Issues and Dependencies (RAID) log. The Board received
quarterly progress updates on the transition, with the
Audit and Risk Committee Chair acting as the primary
point of contact between update cycles. As part of the
year end audit process, Ernst & Young have reviewed the
migration of data from HSBC to J.P. Morgan and tested
that nancial records were appropriately transferred.
Further details of the internal controls which are in place
are set out in the Audit and Risk Committee’s Report on
pages&60 to 62.
Cyber risk such as fraud, sabotage or crime
perpetrated against the Company or any of its
third&party service providers could result in data theft,
service disruption and reputational damage.
Cybersecurity is closely monitored by the Audit and Risk
Committee as part of the review of the internal controls
of its service providers.
The Manager’s IT security team present to the Directors
on cybersecurity controls as part of the annual internal
controls brie ng session hosted by Schroders.
The development of AI presents both potential risks and opportunities to businesses in almost every sector. The extent of the risk
presented by AI is hard to assess at this point but the Board considers that it is an emerging risk and together with the Manager
and Investment Manager will monitor developments in this area.
Section 3: Strategic Report
49 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Conclusion
Viability statement
The Directors have assessed the viability of
the Company over a ve year period,
ending 31 December 2030 taking into
account the Company’s position at
31&December 2025 and the potential
impact of the principal and emerging risks
it faces for the review period. This is
further detailed in the Chair’s Statement,
Investment Manager’s Review and the Risk
Report sections of this report. The
Directors have assessed the Company’s
operational resilience and they are
satis ed that the Company’s outsourced
service providers will continue to operate
e ectively.
The Board believes that a period of
ve&years re ects a suitable time horizon
for strategic planning, taking into account
the investment policy, liquidity of
investments, potential impact of economic
cycles, nature of operating costs, dividends
and availability of funding.
In preparing these nancial statements,
the Directors have considered the impact
of the Company’s emerging risk as set out
on page 49, and have concluded that there
was no further impact to be taken into
account as investments are valued based
on market pricing.
The Directors considered the bene cial tax
treatment the Company is eligible for as
an investment trust. If changes to these
taxation arrangements were to be made, it
would a ect the viability of the Company
to act as an e ective investment vehicle.
The Directors reviewed a stress test in
which the Company’s NAV dropped by 50%
and noted that, based on the assumptions
in the test, the Company would continue
to be viable over a ve year period.
The Directors have also considered the
Company’s income and expenditure
projections and the fact that the
Company’s investments comprise readily
realisable securities which can be sold to
meet funding requirements if necessary.
Based on the Company’s processes for
monitoring operating costs, the Board’s
view that the Manager has the appropriate
depth and quality of resource to achieve
superior returns in the longer term, the
portfolio risk pro le, limits imposed on
gearing, counterparty exposure, liquidity
risk and nancial controls, the Directors
have concluded that there is a reasonable
expectation that the Company will be able
to continue in operation and meet its
liabilities as they fall due over the ve year
period of their assessment.
A continuation vote is put to the
shareholders every three years. The most
recent continuation vote took place at the
AGM held in 2025, at which 99.94% of
those votes cast were in favour.
Going concern
The Directors have assessed the principal
and emerging risks and the matters
referred to in the viability statement. The
Directors noted the Company’s portfolio is
comprised of liquid stocks, and the
Company’s operating expenses are
predominantly variable costs, which would
fall pro-rata in the event of a severe market
downturn.
Based on the work the Directors have
performed, they have not identi ed any
material events or conditions that,
individually or collectively, may cast
signi cant doubt on the Company’s ability
to continue as a going concern for the
period assessed by the Directors, being
the period to 31 March 2027 which is at
least 12 months from the date the
nancial statements were authorised for
issue.
By order of the Board
Schroder Investment Management
Limited
Company Secretary
18 March 2026
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
50
Viability statement
The Directors have assessed the viability of
the Company over a ve year period,
ending 31 December 2030 taking into
account the Company’s position at
31&December 2025 and the potential
impact of the principal and emerging risks
it faces for the review period. This is
further detailed in the Chair’s Statement,
Investment Manager’s Review and the Risk
Report sections of this report. The
Directors have assessed the Company’s
operational resilience and they are
satis ed that the Company’s outsourced
service providers will continue to operate
e ectively.
The Board believes that a period of
ve&years re ects a suitable time horizon
for strategic planning, taking into account
the investment policy, liquidity of
investments, potential impact of economic
cycles, nature of operating costs, dividends
and availability of funding.
In preparing these nancial statements,
the Directors have considered the impact
of the Company’s emerging risk as set out
on page 49, and have concluded that there
was no further impact to be taken into
account as investments are valued based
on market pricing.
The Directors considered the bene cial tax
treatment the Company is eligible for as
an investment trust. If changes to these
taxation arrangements were to be made, it
would a ect the viability of the Company
to act as an e ective investment vehicle.
The Directors reviewed a stress test in
which the Company’s NAV dropped by 50%
and noted that, based on the assumptions
in the test, the Company would continue
to be viable over a ve year period.
The Directors have also considered the
Company’s income and expenditure
projections and the fact that the
Company’s investments comprise readily
realisable securities which can be sold to
meet funding requirements if necessary.
Based on the Company’s processes for
monitoring operating costs, the Board’s
view that the Manager has the appropriate
depth and quality of resource to achieve
superior returns in the longer term, the
portfolio risk pro le, limits imposed on
gearing, counterparty exposure, liquidity
risk and nancial controls, the Directors
have concluded that there is a reasonable
expectation that the Company will be able
to continue in operation and meet its
liabilities as they fall due over the ve year
period of their assessment.
A continuation vote is put to the
shareholders every three years. The most
recent continuation vote took place at the
AGM held in 2025, at which 99.94% of
those votes cast were in favour.
Going concern
The Directors have assessed the principal
and emerging risks and the matters
referred to in the viability statement. The
Directors noted the Company’s portfolio is
comprised of liquid stocks, and the
Company’s operating expenses are
predominantly variable costs, which would
fall pro-rata in the event of a severe market
downturn.
Based on the work the Directors have
performed, they have not identi ed any
material events or conditions that,
individually or collectively, may cast
signi cant doubt on the Company’s ability
to continue as a going concern for the
period assessed by the Directors, being
the period to 31 March 2027 which is at
least 12 months from the date the
nancial statements were authorised for
issue.
By order of the Board
Schroder Investment Management
Limited
Company Secretary
18 March 2026
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 3: Strategic Report
50
Section 3: Strategic Report
51 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Brisbane River, Brisbane, Australia
51 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Brisbane River, Brisbane, Australia
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
52
View from Helix Bridge, Singapore
Section 4: Governance
52
52
View from Helix Bridge, Singapore
Section 4: Governance
52
Section 4: Governance
Board of Directors 54
Directors’ Report 56
Audit and Risk Committee Report 60
Management Engagement Committee Report 63
Nomination Committee Report 64
Directors’ Remuneration Report 66
Statement of Directors’ Responsibilities in respect of the Annual Report and Financial
Statements 69
53 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
53
Board of Directors 54
Directors’ Report 56
Audit and Risk Committee Report 60
Management Engagement Committee Report 63
Nomination Committee Report 64
Directors’ Remuneration Report 66
Statement of Directors’ Responsibilities in respect of the Annual Report and Financial
Statements 69
53 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
53
Independent non-executive Director
Independent non-executive Chair
Andrew Cainey Sarah MacAulay
Board of Directors
Length of service: seven years – appointed
asFDirector in March 2019.
Experience: Andrew is an experienced
business consultant, policy adviser,
speaker and writer. He is a Senior
Associate Fellow of the Royal United
Services Institute, a Senior Advisor of
Boston Consulting Group and a Senior
Advisor of Lumen Capital Investors.
Previously, Andrew held positions including
Director of UK National Committee on
China CIC, Managing Partner of Booz &
Company’s Greater China operations,
Partner-in-charge for Asian Government
Advisory with Tony Blair Associates and
Partner leading the Asia-paci c Financial
Institutions Practice of Boston Consulting
Group. During the course of his career,
Andrew spent over 15 years in Asia,
including China, Korea and Singapore.
Contribution to the Board and its
Committees: Andrew is an experienced
business consultant. His knowledge of Asia
and close interest in the area contributes
to the Company’s long-term sustainable
success.
Committee membership: Audit and Risk,
Management Engagement and
Nomination Committees.
Remuneration for the year ended
31 December 2025: £38,000 per annum.
Number of shares held: 26,753*
Length of service: eight years – appointed
as Director in March 2018 and as Chair in
May 2020.
Experience: Sarah has over 20 years of
Asian fund management experience based
in both London and Hong Kong, managing
unit trusts and institutional assets. She
was formerly a Director of Baring Asset
Management (Asia) Ltd in Hong Kong,
Asian Investment Manager at Kleinwort
Benson Investment Management and
Eagle Star in London. She is currently
aFnon-executive Director of Ashoka India
Equity Investment Trust plc, Baillie GiHord
China Growth Trust plc, and Bellevue
Healthcare Trust plc. Until March 2024,
Sarah was Chair of JPMorgan Multi-Asset
Growth & Income plc and Senior
Independent Director of abrdn China
Investment Company Limited and until
November 2025 she was Senior
Independent Director of Fidelity Japan
Trust PLC.
Contribution to the Board and its
Committees: Sarah’s extensive experience
in Asian fund management and as
aFnon-executive Director on other
investment trust boards enables her to
bring valuable insight to the Board’s
deliberations, successfully facilitate Board
discussions and prioritise strategic
decisions.
Committee membership: Audit and Risk,
Management Engagement (Chair) and
Nomination (Chair) Committees.
Remuneration for the year ended
31 December 2025: £50,500 per annum.
Number of shares held: 72,475*
All Directors are
non-executive and
independent of the
Manager. All Directors are
members of the Audit and
Risk Committee, the
Management Engagement
Committee and the
Nomination Committee.
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
54
Andrew Cainey Sarah MacAulay
Board of Directors
Length of service: seven years – appointed
asFDirector in March 2019.
Experience: Andrew is an experienced
business consultant, policy adviser,
speaker and writer. He is a Senior
Associate Fellow of the Royal United
Services Institute, a Senior Advisor of
Boston Consulting Group and a Senior
Advisor of Lumen Capital Investors.
Previously, Andrew held positions including
Director of UK National Committee on
China CIC, Managing Partner of Booz &
Company’s Greater China operations,
Partner-in-charge for Asian Government
Advisory with Tony Blair Associates and
Partner leading the Asia-paci c Financial
Institutions Practice of Boston Consulting
Group. During the course of his career,
Andrew spent over 15 years in Asia,
including China, Korea and Singapore.
Contribution to the Board and its
Committees: Andrew is an experienced
business consultant. His knowledge of Asia
and close interest in the area contributes
to the Company’s long-term sustainable
success.
Committee membership: Audit and Risk,
Management Engagement and
Nomination Committees.
Remuneration for the year ended
31 December 2025: £38,000 per annum.
Number of shares held: 26,753*
Length of service: eight years – appointed
as Director in March 2018 and as Chair in
May 2020.
Experience: Sarah has over 20 years of
Asian fund management experience based
in both London and Hong Kong, managing
unit trusts and institutional assets. She
was formerly a Director of Baring Asset
Management (Asia) Ltd in Hong Kong,
Asian Investment Manager at Kleinwort
Benson Investment Management and
Eagle Star in London. She is currently
aFnon-executive Director of Ashoka India
Equity Investment Trust plc, Baillie GiHord
China Growth Trust plc, and Bellevue
Healthcare Trust plc. Until March 2024,
Sarah was Chair of JPMorgan Multi-Asset
Growth & Income plc and Senior
Independent Director of abrdn China
Investment Company Limited and until
November 2025 she was Senior
Independent Director of Fidelity Japan
Trust PLC.
Contribution to the Board and its
Committees: Sarah’s extensive experience
in Asian fund management and as
aFnon-executive Director on other
investment trust boards enables her to
bring valuable insight to the Board’s
deliberations, successfully facilitate Board
discussions and prioritise strategic
decisions.
Committee membership: Audit and Risk,
Management Engagement (Chair) and
Nomination (Chair) Committees.
Remuneration for the year ended
31 December 2025: £50,500 per annum.
Number of shares held: 72,475*
All Directors are
non-executive and
independent of the
Manager. All Directors are
members of the Audit and
Risk Committee, the
Management Engagement
Committee and the
Nomination Committee.
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
54
Senior Independent non-executive
Director
Independent non-executive Director
and Chair of the Audit and Risk
Committee
Marion Sears Jasper Judd
Length of service: two years – appointed
asFDirector in April 2024 and Senior
Independent Director in December 2024.
Experience: Marion had a career in the City
as an analyst and subsequently in
international M&A. Since then, she has
served on a number of boards as
aFnon-executive Director, including
corporates and investment trusts. She has
acted as a SID and chaired Remuneration,
Nomination and Sustainability committees
across many sectors, giving her
long-standing PLC experience and
stakeholder understanding. Marion is
currently a non-executive Director at
Dunelm Group plc and BlackRock World
Mining Trust plc, and, SID and Chair of the
Remuneration Committee of Shepherd
Neame Limited. She was previously a
non-executive Director of Keywords Studios
plc and WH Smith PLC.
Contribution to the Board and its
Committees: Marion’s long standing
experience in the City is valuable to the
Board. Her experience as a non-executive
director on corporate boards means she is
well placed to help bring strong business
insight and market experience to the
Board, contributing to driving the business
forward.
Committee membership: Audit and Risk,
Management Engagement and
Nomination Committees.
Remuneration for the year ended
31 December 2025: £38,000 per annum.
Number of shares held: 10,000*
Length of service: three years – appointed
asFDirector in February 2023 and Chair of
the Audit and Risk Committee in April 2023.
Experience: Jasper held a number of
senior nance and strategy roles, including
Global Head of Strategy, at Brambles
Limited, a listed Australian multi-national.
He is an Associate of the Institute of
Chartered Accountants in England &
Wales. Jasper is also the Audit Committee
Chairman of Brown Advisory US Smaller
Companies PLC. He has previously held
positions including Chair of the Audit
Committee of Dunedin Income Growth
Investment Trust PLC and Chair of the
Audit & Risk Committee of JPMorgan
Indian Investment Trust plc.
Contribution to the Board and its
Committees: Jasper’s extensive nancial
and strategic experience and experience
as a non-executive Director on other
boards means he is able to bring
signi cant insight to the Board’s decision
making.
Committee membership: Audit and Risk
(Chair), Management Engagement and
Nomination Committees.
Remuneration for the year ended
31 December 2025: £44,000 per annum.
Number of shares held: 15,140*
*Shareholdings are as at 18 March 2026, full details of Directors’ shareholdings are set out in the Directors’ Remuneration Report on page 68.
Section 4: Governance
55 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Director
Independent non-executive Director
and Chair of the Audit and Risk
Committee
Marion Sears Jasper Judd
Length of service: two years – appointed
asFDirector in April 2024 and Senior
Independent Director in December 2024.
Experience: Marion had a career in the City
as an analyst and subsequently in
international M&A. Since then, she has
served on a number of boards as
aFnon-executive Director, including
corporates and investment trusts. She has
acted as a SID and chaired Remuneration,
Nomination and Sustainability committees
across many sectors, giving her
long-standing PLC experience and
stakeholder understanding. Marion is
currently a non-executive Director at
Dunelm Group plc and BlackRock World
Mining Trust plc, and, SID and Chair of the
Remuneration Committee of Shepherd
Neame Limited. She was previously a
non-executive Director of Keywords Studios
plc and WH Smith PLC.
Contribution to the Board and its
Committees: Marion’s long standing
experience in the City is valuable to the
Board. Her experience as a non-executive
director on corporate boards means she is
well placed to help bring strong business
insight and market experience to the
Board, contributing to driving the business
forward.
Committee membership: Audit and Risk,
Management Engagement and
Nomination Committees.
Remuneration for the year ended
31 December 2025: £38,000 per annum.
Number of shares held: 10,000*
Length of service: three years – appointed
asFDirector in February 2023 and Chair of
the Audit and Risk Committee in April 2023.
Experience: Jasper held a number of
senior nance and strategy roles, including
Global Head of Strategy, at Brambles
Limited, a listed Australian multi-national.
He is an Associate of the Institute of
Chartered Accountants in England &
Wales. Jasper is also the Audit Committee
Chairman of Brown Advisory US Smaller
Companies PLC. He has previously held
positions including Chair of the Audit
Committee of Dunedin Income Growth
Investment Trust PLC and Chair of the
Audit & Risk Committee of JPMorgan
Indian Investment Trust plc.
Contribution to the Board and its
Committees: Jasper’s extensive nancial
and strategic experience and experience
as a non-executive Director on other
boards means he is able to bring
signi cant insight to the Board’s decision
making.
Committee membership: Audit and Risk
(Chair), Management Engagement and
Nomination Committees.
Remuneration for the year ended
31 December 2025: £44,000 per annum.
Number of shares held: 15,140*
*Shareholdings are as at 18 March 2026, full details of Directors’ shareholdings are set out in the Directors’ Remuneration Report on page 68.
Section 4: Governance
55 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Directors’ Report
The Directors submit their report and the audited financial statements of the Company for the
year ended 31 December 2025.
Directors and o"cers
Chair
The Chair is an independent non-executive Director who is
responsible for leadership of the Board and ensuring its
eHectiveness in all aspects of its role. The Chair’s biography is
detailed on page 54. She has no con icting relationships.
Senior Independent Director (SID)
The SID is responsible for the evaluation of the Chair, and also
serves as a secondary point of contact for shareholders.
Company Secretary
Schroder Investment Management Limited (“SIM”) provides
company secretarial support to the Board and is responsible for
assisting the Chair with board meetings and advising the Board
with respect to governance. The Company Secretary also
manages the relationship with the Company’s service providers,
except for the Manager. Shareholders wishing to lodge questions
in advance of the AGM are invited to do so by writing to the
Company Secretary at the address given on the outside back
cover or by email to: amcompanysecretary@schroders.com.
Role and operation of the Board
The Board (of four Directors, listed on pages 54 and 55) 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 38 to 50 sets out further detail of how
the Board reviews the Company’s strategy, risk management and
internal controls. These sections form part of this Directors’
Report.
A formal schedule of matters speci cally reserved for decision by
the Board has been de ned and a procedure adopted for
Directors, in the furtherance of their duties, to take independent
professional advice at the expense of the Company.
The Chair ensures that all Directors receive relevant management,
regulatory and nancial information in a timely manner and that
they are provided, on a regular basis, with key information on the
Company’s policies, regulatory requirements and internal controls.
Four board meetings are usually scheduled each year to deal with
matters including: the setting and monitoring of investment
strategy; approval of borrowings and/or cash positions; review of
investment performance, the level of discount of the Company’s
shares to NAV per share, promotion of the Company and services
provided by third parties. Additional meetings of the Board are
arranged as required. At each scheduled board meeting, the
Directors receive reports from the Manager, Investment Manager,
other key service providers and the Company’s advisers. Ad hoc
reports and information are supplied to the Board as required.
The Board has approved a policy on Directors’ con icts of interest.
Under this policy, Directors are required to disclose all actual and
potential con icts of interest to the Board as they arise for
consideration and approval. The Board may impose restrictions or
refuse to authorise such con icts if deemed appropriate.
NoFDirector has any connections with the Manager, shared
directorships with other Directors or material interests in any
contract which is signi cant to the Company’s business.
Board of Directors (left to right): Marion Sears, Andrew Cainey, Sarah MacAulay and Jasper Judd.
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
56
The Directors submit their report and the audited financial statements of the Company for the
year ended 31 December 2025.
Directors and o"cers
Chair
The Chair is an independent non-executive Director who is
responsible for leadership of the Board and ensuring its
eHectiveness in all aspects of its role. The Chair’s biography is
detailed on page 54. She has no con icting relationships.
Senior Independent Director (SID)
The SID is responsible for the evaluation of the Chair, and also
serves as a secondary point of contact for shareholders.
Company Secretary
Schroder Investment Management Limited (“SIM”) provides
company secretarial support to the Board and is responsible for
assisting the Chair with board meetings and advising the Board
with respect to governance. The Company Secretary also
manages the relationship with the Company’s service providers,
except for the Manager. Shareholders wishing to lodge questions
in advance of the AGM are invited to do so by writing to the
Company Secretary at the address given on the outside back
cover or by email to: amcompanysecretary@schroders.com.
Role and operation of the Board
The Board (of four Directors, listed on pages 54 and 55) 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 38 to 50 sets out further detail of how
the Board reviews the Company’s strategy, risk management and
internal controls. These sections form part of this Directors’
Report.
A formal schedule of matters speci cally reserved for decision by
the Board has been de ned and a procedure adopted for
Directors, in the furtherance of their duties, to take independent
professional advice at the expense of the Company.
The Chair ensures that all Directors receive relevant management,
regulatory and nancial information in a timely manner and that
they are provided, on a regular basis, with key information on the
Company’s policies, regulatory requirements and internal controls.
Four board meetings are usually scheduled each year to deal with
matters including: the setting and monitoring of investment
strategy; approval of borrowings and/or cash positions; review of
investment performance, the level of discount of the Company’s
shares to NAV per share, promotion of the Company and services
provided by third parties. Additional meetings of the Board are
arranged as required. At each scheduled board meeting, the
Directors receive reports from the Manager, Investment Manager,
other key service providers and the Company’s advisers. Ad hoc
reports and information are supplied to the Board as required.
The Board has approved a policy on Directors’ con icts of interest.
Under this policy, Directors are required to disclose all actual and
potential con icts of interest to the Board as they arise for
consideration and approval. The Board may impose restrictions or
refuse to authorise such con icts if deemed appropriate.
NoFDirector has any connections with the Manager, shared
directorships with other Directors or material interests in any
contract which is signi cant to the Company’s business.
Board of Directors (left to right): Marion Sears, Andrew Cainey, Sarah MacAulay and Jasper Judd.
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
56
Key service providers
The Board has adopted an outsourced business model and has
appointed the following key service providers:
Manager
The Company is an Alternative Investment Fund as de ned by the
Alternative Investment Fund Managers Directive and has
appointed Schroder Unit Trusts Limited (“SUTL”) as the Manager in
accordance with the terms of an Alternative Investment Fund
Manager (AIFM) agreement. The AIFM agreement, which is
governed by the laws of England and Wales, can be terminated by
either party on six months’ notice or on immediate notice in the
event of certain breaches or the insolvency of either party. As at
the date of this report, no such notice had been given by either
party.
SUTL is authorised and regulated by the FCA and provides
portfolio management, risk management, accounting and
company secretarial services to the Company under the AIFM
agreement. The Manager also provides general marketing
support for the Company and manages relationships with key
investors, in conjunction with the Chair, other Board members or
the corporate broker as appropriate. The Manager has delegated
investment management, administration, accounting and
company secretarial services to another wholly owned subsidiary
of Schroders plc, Schroder Investment Management Limited
(“SIM”), which delegates certain accounting and administration
services. With eHect from 5 September 2025, J.P.FMorgan Chase
Bank, N.A. was appointed to provide accounting and
administration services, replacing HSBC Securities Services (UK)
Limited.
The Manager has in place appropriate professional indemnity
cover.
The Schroders Group manages £823.7 billion (as at 312December
2025) on behalf of institutional and retail investors, nancial
institutions and high net worth clients from around the world,
invested in a broad range of asset classes across equities, xed
income, multi-asset and alternatives.
Fees payable to the Manager
Under the terms of the AIFM agreement, the Manager is entitled
to a fee at a rate of 0.65% of gross assets less cash and cash
equivalents.
A performance fee is payable amounting to 10% of any
outperformance of the NAV over an annual hurdle of 7%,
provided that the closing NAV per share exceeds the “high water
mark” NAV at the date the last performance fee was paid. The
sum of the base fee and any performance fee payable is capped
at 1.25% of the closing net assets.
In addition, the Manager may only be paid a performance fee
when the Company’s NAV total return is equal or greater to the
total return of the Reference Index.
If the Company invests in funds managed or advised by the
Manager, any fees earned by the Manager from those
investments are rebated to the Company.
The management fee chargeable in respect of the year ended
31FDecember 2025 amounted to £3,124,000 (2024: £3,176,000).
NoFperformance fee is payable for the year (2024: £2,767,000).
The Manager is also entitled to a fee for providing administrative,
accounting and company secretarial services to the Company. For
these services in the year ended 31 December 2025, the Manager
received a fee of £75,000 (2024: £75,000).
Details of all amounts payable to the Manager are set out in notes
4 and 19 of the nancial statements.
The Board has reviewed the performance of the Manager during
the year under review and continues to consider that it has the
appropriate depth and quality of resource to deliver superior
returns over the longer term. The Manager is supported by
signi cant depth of knowledge and experience in Asia, with
regional resources and local analysts. Thus, the Board considers
that the Manager’s appointment under the terms of the AIFM
agreement is in the best interests of shareholders as a whole.
Depositary
With eHect from 5 September 2025, J.P. Morgan Europe Limited
was 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
speci ed 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 ows; and • oversight of the Company and the Manager. •
The Company, the Manager and the depositary may terminate the
depositary agreement at any time by giving 90 days’ notice in
writing. The depositary may only be removed from o<ce when
aFnew depositary is appointed by the Company.
Prior to 5 September 2025, HSBC Bank plc was the depositary.
Registrar
Equiniti Limited has been appointed as the Company’s registrar.
Equiniti’s services to the Company include share register
maintenance (including the issuance, transfer and cancellation of
shares as necessary), acting as agent for the payment of any
dividends, management of company meetings (including the
registering of proxy votes and scrutineer services as necessary),
handling shareholder queries and correspondence and
processing corporate actions.
Section 4: Governance
57 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
The Board has adopted an outsourced business model and has
appointed the following key service providers:
Manager
The Company is an Alternative Investment Fund as de ned by the
Alternative Investment Fund Managers Directive and has
appointed Schroder Unit Trusts Limited (“SUTL”) as the Manager in
accordance with the terms of an Alternative Investment Fund
Manager (AIFM) agreement. The AIFM agreement, which is
governed by the laws of England and Wales, can be terminated by
either party on six months’ notice or on immediate notice in the
event of certain breaches or the insolvency of either party. As at
the date of this report, no such notice had been given by either
party.
SUTL is authorised and regulated by the FCA and provides
portfolio management, risk management, accounting and
company secretarial services to the Company under the AIFM
agreement. The Manager also provides general marketing
support for the Company and manages relationships with key
investors, in conjunction with the Chair, other Board members or
the corporate broker as appropriate. The Manager has delegated
investment management, administration, accounting and
company secretarial services to another wholly owned subsidiary
of Schroders plc, Schroder Investment Management Limited
(“SIM”), which delegates certain accounting and administration
services. With eHect from 5 September 2025, J.P.FMorgan Chase
Bank, N.A. was appointed to provide accounting and
administration services, replacing HSBC Securities Services (UK)
Limited.
The Manager has in place appropriate professional indemnity
cover.
The Schroders Group manages £823.7 billion (as at 312December
2025) on behalf of institutional and retail investors, nancial
institutions and high net worth clients from around the world,
invested in a broad range of asset classes across equities, xed
income, multi-asset and alternatives.
Fees payable to the Manager
Under the terms of the AIFM agreement, the Manager is entitled
to a fee at a rate of 0.65% of gross assets less cash and cash
equivalents.
A performance fee is payable amounting to 10% of any
outperformance of the NAV over an annual hurdle of 7%,
provided that the closing NAV per share exceeds the “high water
mark” NAV at the date the last performance fee was paid. The
sum of the base fee and any performance fee payable is capped
at 1.25% of the closing net assets.
In addition, the Manager may only be paid a performance fee
when the Company’s NAV total return is equal or greater to the
total return of the Reference Index.
If the Company invests in funds managed or advised by the
Manager, any fees earned by the Manager from those
investments are rebated to the Company.
The management fee chargeable in respect of the year ended
31FDecember 2025 amounted to £3,124,000 (2024: £3,176,000).
NoFperformance fee is payable for the year (2024: £2,767,000).
The Manager is also entitled to a fee for providing administrative,
accounting and company secretarial services to the Company. For
these services in the year ended 31 December 2025, the Manager
received a fee of £75,000 (2024: £75,000).
Details of all amounts payable to the Manager are set out in notes
4 and 19 of the nancial statements.
The Board has reviewed the performance of the Manager during
the year under review and continues to consider that it has the
appropriate depth and quality of resource to deliver superior
returns over the longer term. The Manager is supported by
signi cant depth of knowledge and experience in Asia, with
regional resources and local analysts. Thus, the Board considers
that the Manager’s appointment under the terms of the AIFM
agreement is in the best interests of shareholders as a whole.
Depositary
With eHect from 5 September 2025, J.P. Morgan Europe Limited
was 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
speci ed 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 ows; and • oversight of the Company and the Manager. •
The Company, the Manager and the depositary may terminate the
depositary agreement at any time by giving 90 days’ notice in
writing. The depositary may only be removed from o<ce when
aFnew depositary is appointed by the Company.
Prior to 5 September 2025, HSBC Bank plc was the depositary.
Registrar
Equiniti Limited has been appointed as the Company’s registrar.
Equiniti’s services to the Company include share register
maintenance (including the issuance, transfer and cancellation of
shares as necessary), acting as agent for the payment of any
dividends, management of company meetings (including the
registering of proxy votes and scrutineer services as necessary),
handling shareholder queries and correspondence and
processing corporate actions.
Section 4: Governance
57 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Committees
In order to assist the Board in ful lling its governance responsibilities, it has delegated certain functions to Committees. The roles and
responsibilities of these Committees, together with details of work undertaken during the year under review, is outlined over the next
few pages.
The reports of the Audit and Risk Committee, Management Engagement Committee and Nomination Committee are incorporated into
and form part of the Directors’ Report. Each committee’s eHectiveness was assessed, and judged to be satisfactory, as part of the
Board’s annual review of the Board and its Committees.
Compliance with the AIC Code of Corporate Governance
The Board of the Company has considered the principles and provisions of the AIC Code of Corporate Governance (the “AIC Code”). The
AIC Code addresses the Principles and Provisions set out in the UK Corporate Governance Code (the “UK Code”), as well as setting out
additional Provisions on issues that are of speci c relevance to the Company. The Board considers that reporting against the Principles
and Provisions of the AIC Code provides more relevant information to shareholders.
The AIC Code is available on the AIC website at www.theaic.co.uk. ItFincludes an explanation of how the AIC Code adopts the Principles
and Provisions set out in the UK Code to make them relevant for investment companies. The UK Code is available from the Financial
Reporting Council’s website at www.frc.org.uk.
The FCA requires all UK listed companies to disclose how they have complied with the provisions of the UK Code. This statement,
together with the Statement of Directors’ Responsibilities, viability statement and going concern statement set out on pages 69 and 50
respectively, indicates how the Company has complied with the principles of good governance of the AIC Code and its requirements on
internal control. The Strategic Report, Directors’ Report and Audit and Risk Committee Report provide further details on the Company’s
internal controls (including risk management), governance and diversity policy.
The Board is satis ed that the Company’s current governance framework is compliant with the AIC Code. The Nomination Committee
reviews Directors’ remuneration and as such there is no separate remuneration committee.
Revenue, nal dividend and dividend policy
The net revenue return for the year, after nance costs and taxation, was £9,178,000 (2024: £9,164,000), equivalent to a revenue return
per ordinary share of 9.81 pence (2024: 9.61 pence).
The Board has recommended the payment of a nal dividend for the year ended 31 December 2025 of 11.50 pence per share (2024:
11.50Fpence) payable on 11 May 2026 to shareholders on the register on 10 April 2026, subject to approval by shareholders at the AGM
on 23 April 2026.
The Board’s policy is to pay out substantially all the Company’s revenue.
Other required Directors’ Report disclosures under laws, regulations, and the AIC Code
Status
The Company carries on business as an investment trust. Its shares are listed and admitted to trading on the London Stock Exchange.
It has been approved by HM Revenue & Customs as an investment trust in accordance with Section 1158 of the Corporation Tax
ActF2010, by way of a one-oH application and it is intended that the Company will continue to conduct its aHairs in a manner which will
enable it to retain this status.
The Company is domiciled in the UK and is an investment company within the meaning of Section 833 of the Companies Act 2006. The
Company is not a “close” company for taxation purposes.
It is not intended that the Company should have a limited life but the Directors consider it desirable that the shareholders should have
the opportunity to review the future of the Company at appropriate intervals. Accordingly, the articles of association contain provisions
requiring the Directors to put a proposal for the continuation of the Company to shareholders at three yearly intervals. The next
continuation vote is due to be proposed at the AGM in 2028.
Share capital and substantial share interests
As at the date of this report, the Company had 109,114,651 ordinary shares of 5 pence in issue, of which 15,590,197 ordinary shares
were held in treasury.
All shares in issue rank equally with respect to voting, dividends and any distribution on winding up. The Company has received details
of changes to the Company’s share capital during the year under review which are given in note 14 to the nancial statements on
pageF88. As at 31 December 2025, the Company has received noti cations in accordance with the FCA’s Disclosure Guidance and
Transparency Rule 5.1.2R of the below interests in 3% or more of the voting rights attaching to the Company’s issued share capital.
The Company is reliant on investors to comply with these regulations, and certain investors may be exempted from providing these. As
such, this should not be relied on as an exhaustive list of shareholders holding above 3% of the Company’s voting rights.
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
58
In order to assist the Board in ful lling its governance responsibilities, it has delegated certain functions to Committees. The roles and
responsibilities of these Committees, together with details of work undertaken during the year under review, is outlined over the next
few pages.
The reports of the Audit and Risk Committee, Management Engagement Committee and Nomination Committee are incorporated into
and form part of the Directors’ Report. Each committee’s eHectiveness was assessed, and judged to be satisfactory, as part of the
Board’s annual review of the Board and its Committees.
Compliance with the AIC Code of Corporate Governance
The Board of the Company has considered the principles and provisions of the AIC Code of Corporate Governance (the “AIC Code”). The
AIC Code addresses the Principles and Provisions set out in the UK Corporate Governance Code (the “UK Code”), as well as setting out
additional Provisions on issues that are of speci c relevance to the Company. The Board considers that reporting against the Principles
and Provisions of the AIC Code provides more relevant information to shareholders.
The AIC Code is available on the AIC website at www.theaic.co.uk. ItFincludes an explanation of how the AIC Code adopts the Principles
and Provisions set out in the UK Code to make them relevant for investment companies. The UK Code is available from the Financial
Reporting Council’s website at www.frc.org.uk.
The FCA requires all UK listed companies to disclose how they have complied with the provisions of the UK Code. This statement,
together with the Statement of Directors’ Responsibilities, viability statement and going concern statement set out on pages 69 and 50
respectively, indicates how the Company has complied with the principles of good governance of the AIC Code and its requirements on
internal control. The Strategic Report, Directors’ Report and Audit and Risk Committee Report provide further details on the Company’s
internal controls (including risk management), governance and diversity policy.
The Board is satis ed that the Company’s current governance framework is compliant with the AIC Code. The Nomination Committee
reviews Directors’ remuneration and as such there is no separate remuneration committee.
Revenue, nal dividend and dividend policy
The net revenue return for the year, after nance costs and taxation, was £9,178,000 (2024: £9,164,000), equivalent to a revenue return
per ordinary share of 9.81 pence (2024: 9.61 pence).
The Board has recommended the payment of a nal dividend for the year ended 31 December 2025 of 11.50 pence per share (2024:
11.50Fpence) payable on 11 May 2026 to shareholders on the register on 10 April 2026, subject to approval by shareholders at the AGM
on 23 April 2026.
The Board’s policy is to pay out substantially all the Company’s revenue.
Other required Directors’ Report disclosures under laws, regulations, and the AIC Code
Status
The Company carries on business as an investment trust. Its shares are listed and admitted to trading on the London Stock Exchange.
It has been approved by HM Revenue & Customs as an investment trust in accordance with Section 1158 of the Corporation Tax
ActF2010, by way of a one-oH application and it is intended that the Company will continue to conduct its aHairs in a manner which will
enable it to retain this status.
The Company is domiciled in the UK and is an investment company within the meaning of Section 833 of the Companies Act 2006. The
Company is not a “close” company for taxation purposes.
It is not intended that the Company should have a limited life but the Directors consider it desirable that the shareholders should have
the opportunity to review the future of the Company at appropriate intervals. Accordingly, the articles of association contain provisions
requiring the Directors to put a proposal for the continuation of the Company to shareholders at three yearly intervals. The next
continuation vote is due to be proposed at the AGM in 2028.
Share capital and substantial share interests
As at the date of this report, the Company had 109,114,651 ordinary shares of 5 pence in issue, of which 15,590,197 ordinary shares
were held in treasury.
All shares in issue rank equally with respect to voting, dividends and any distribution on winding up. The Company has received details
of changes to the Company’s share capital during the year under review which are given in note 14 to the nancial statements on
pageF88. As at 31 December 2025, the Company has received noti cations in accordance with the FCA’s Disclosure Guidance and
Transparency Rule 5.1.2R of the below interests in 3% or more of the voting rights attaching to the Company’s issued share capital.
The Company is reliant on investors to comply with these regulations, and certain investors may be exempted from providing these. As
such, this should not be relied on as an exhaustive list of shareholders holding above 3% of the Company’s voting rights.
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
58
Number
% of
As at 31 December 2025 of shares total voting rights
Rathbones Investment Management Limited 13,059,136 13.96
Evelyn Partners 10,278,169 10.99
Quilter PLC 9,994,906 9.99
Raymond James Wealth Management Limited 9,676,907 10.34
Charles Stanley Group plc 5,857,502 5.85
F&C Asset Management plc 3,547,705 4.28
Following the year end, Rathbones Investment Management Limited noti ed the Company that the number of shares held was
13,098,205 equating to 14.01% of total voting rights. No further changes had been advised as at the date of this report.
Directors’ attendance at meetings
The number of scheduled meetings of the Board and its Committees held during the nancial year and the attendance of individual
Directors is shown below. Whenever possible all Directors attend the AGM. The Board also met for a small number of additional, ad hoc,
meetings during the year to address time sensitive matters that arose between scheduled quarterly meetings. These meetings were
generally held at short notice and attended by those Directors available at the time.
Audit and Risk Management Nomination
Director Board Committee Engagement Committee Committee
Sarah MacAulay 4/4 3/3 1/1 1/1
Andrew Cainey 4/4 3/3 1/1 1/1
Jasper Judd 4/4 3/3 1/1 1/1
Marion Sears 4/4 3/3 1/1 1/1
Provision of information to the auditor
The Directors at the date of approval of this report con rm that, so far as each of them is aware, there is no relevant audit information
of which the Company’s auditor is unaware; and each Director has taken all the steps that he or she ought to have taken as a Director
in order to make himself or herself aware of any relevant audit information and to establish that the Company’s auditor is aware of that
information.
Directors’ and o"cers’ liability insurance and indemnities
Directors’ and o<cers’ liability insurance cover was in place for the Directors throughout the year. The Company’s Articles of Association
provide, subject to the provisions of UK legislation, an indemnity for Directors in respect of costs which they may incur relating to the
defence of any proceedings brought against them arising out of their positions as Directors, in which they are acquitted or judgement
is given in their favour by the Court.
This is a qualifying third party indemnity policy and was in place throughout the year under review for each Director and to the date of
this report.
By order of the Board
Schroder Investment Management Limited
Company Secretary
18 March 2026
Section 4: Governance
59 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
As at 31 December 2025 of shares total voting rights
Rathbones Investment Management Limited 13,059,136 13.96
Evelyn Partners 10,278,169 10.99
Quilter PLC 9,994,906 9.99
Raymond James Wealth Management Limited 9,676,907 10.34
Charles Stanley Group plc 5,857,502 5.85
F&C Asset Management plc 3,547,705 4.28
Following the year end, Rathbones Investment Management Limited noti ed the Company that the number of shares held was
13,098,205 equating to 14.01% of total voting rights. No further changes had been advised as at the date of this report.
Directors’ attendance at meetings
The number of scheduled meetings of the Board and its Committees held during the nancial year and the attendance of individual
Directors is shown below. Whenever possible all Directors attend the AGM. The Board also met for a small number of additional, ad hoc,
meetings during the year to address time sensitive matters that arose between scheduled quarterly meetings. These meetings were
generally held at short notice and attended by those Directors available at the time.
Audit and Risk Management Nomination
Director Board Committee Engagement Committee Committee
Sarah MacAulay 4/4 3/3 1/1 1/1
Andrew Cainey 4/4 3/3 1/1 1/1
Jasper Judd 4/4 3/3 1/1 1/1
Marion Sears 4/4 3/3 1/1 1/1
Provision of information to the auditor
The Directors at the date of approval of this report con rm that, so far as each of them is aware, there is no relevant audit information
of which the Company’s auditor is unaware; and each Director has taken all the steps that he or she ought to have taken as a Director
in order to make himself or herself aware of any relevant audit information and to establish that the Company’s auditor is aware of that
information.
Directors’ and o"cers’ liability insurance and indemnities
Directors’ and o<cers’ liability insurance cover was in place for the Directors throughout the year. The Company’s Articles of Association
provide, subject to the provisions of UK legislation, an indemnity for Directors in respect of costs which they may incur relating to the
defence of any proceedings brought against them arising out of their positions as Directors, in which they are acquitted or judgement
is given in their favour by the Court.
This is a qualifying third party indemnity policy and was in place throughout the year under review for each Director and to the date of
this report.
By order of the Board
Schroder Investment Management Limited
Company Secretary
18 March 2026
Section 4: Governance
59 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Risk management and internal
controls
Principal and emerging risks and
uncertainties
To establish a process for identifying,
assessing, managing and monitoring
principal and emerging risks and
uncertainties of the Company, and an
explanation of how these are being
managed or mitigated.
Internal controls
The Committee is responsible for
reviewing the adequacy and eHectiveness
of the Company’s internal controls and the
whistle-blowing procedures operated by
the AIFM and other services providers.
Financial reports and valuation
Financial statements
To monitor the integrity of the nancial
statements of the Company and any
formal announcements relating to the
Company’s nancial performance and
valuation.
Going concern and viability
To review the position and make
recommendations to the Board in relation
to whether it considers it appropriate to
adopt the going concern basis of
accounting in preparing its annual and half
year nancial statements.
The Committee is also responsible for
reviewing the disclosures made by the
Company in the viability statement.
Audit
Audit results
To discuss any matters arising from the
audit and recommendations made by the
Auditor.
Auditor appointment, independence
and performance
To make recommendations to the Board,
inFrelation to the appointment,
re-appointment, eHectiveness, any
non-audit services provided by the Auditor
and removal of the external Auditor. To
review their independence, and to approve
their remuneration and terms of
engagement. To review the audit plan and
engagement letter.
All Directors are members of the Committee. Jasper Judd is the Chair of the Committee. The Board has satis ed itself that at least one of
the Committee’s members has recent and relevant nancial experience and that the Committee as a whole has competence relevant to
the sector in which the Company operates. The AIC Code permits the Chair to be a member of the Audit Committee of an investment
trust. Recognising Sarah MacAulay’s signi cant experience, it is considered appropriate for the Chair of the Board to be a member of the
Audit and Risk Committee. The Committee’s terms of reference are available on the Company’s web pages: www.schroders.co.uk/satric.
Ongoing risk review
Review of external
auditors
Half year
report
Audit
planning
Audit Annual
report
Audit and Risk Committee Report
The duties, responsibilities and work carried out by the Audit and Risk Committee during the
year which included monitoring the integrity of the Company’s financial reporting and internal
controls, are set out in further detail below:
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Review of •
control
processes
Periodic testing of •
control processes
Manager’s Internal audit
Audit and Risk Committee
J.P. Morgan Europe
Limited – Depositary
J.P. Morgan Europe
Limited – Custodian
Schroder Unit Trusts Limited
AIFM
Schroder Investment
Management Limited
Investment manager
J.P. Morgan Chase Bank, N.A.
Accounting and Administration services
Periodic
Independently audited
assurance reports on controls
Ad hoc escalations and
regular issues reporting
Periodically reports
the results of its
testing activities
Periodically reports its
supervisory activities
and provides ad hoc
escalations
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
60
controls
Principal and emerging risks and
uncertainties
To establish a process for identifying,
assessing, managing and monitoring
principal and emerging risks and
uncertainties of the Company, and an
explanation of how these are being
managed or mitigated.
Internal controls
The Committee is responsible for
reviewing the adequacy and eHectiveness
of the Company’s internal controls and the
whistle-blowing procedures operated by
the AIFM and other services providers.
Financial reports and valuation
Financial statements
To monitor the integrity of the nancial
statements of the Company and any
formal announcements relating to the
Company’s nancial performance and
valuation.
Going concern and viability
To review the position and make
recommendations to the Board in relation
to whether it considers it appropriate to
adopt the going concern basis of
accounting in preparing its annual and half
year nancial statements.
The Committee is also responsible for
reviewing the disclosures made by the
Company in the viability statement.
Audit
Audit results
To discuss any matters arising from the
audit and recommendations made by the
Auditor.
Auditor appointment, independence
and performance
To make recommendations to the Board,
inFrelation to the appointment,
re-appointment, eHectiveness, any
non-audit services provided by the Auditor
and removal of the external Auditor. To
review their independence, and to approve
their remuneration and terms of
engagement. To review the audit plan and
engagement letter.
All Directors are members of the Committee. Jasper Judd is the Chair of the Committee. The Board has satis ed itself that at least one of
the Committee’s members has recent and relevant nancial experience and that the Committee as a whole has competence relevant to
the sector in which the Company operates. The AIC Code permits the Chair to be a member of the Audit Committee of an investment
trust. Recognising Sarah MacAulay’s signi cant experience, it is considered appropriate for the Chair of the Board to be a member of the
Audit and Risk Committee. The Committee’s terms of reference are available on the Company’s web pages: www.schroders.co.uk/satric.
Ongoing risk review
Review of external
auditors
Half year
report
Audit
planning
Audit Annual
report
Audit and Risk Committee Report
The duties, responsibilities and work carried out by the Audit and Risk Committee during the
year which included monitoring the integrity of the Company’s financial reporting and internal
controls, are set out in further detail below:
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Review of •
control
processes
Periodic testing of •
control processes
Manager’s Internal audit
Audit and Risk Committee
J.P. Morgan Europe
Limited – Depositary
J.P. Morgan Europe
Limited – Custodian
Schroder Unit Trusts Limited
AIFM
Schroder Investment
Management Limited
Investment manager
J.P. Morgan Chase Bank, N.A.
Accounting and Administration services
Periodic
Independently audited
assurance reports on controls
Ad hoc escalations and
regular issues reporting
Periodically reports
the results of its
testing activities
Periodically reports its
supervisory activities
and provides ad hoc
escalations
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
60
Risk management and internal
controls
Risk management and internal
controls
Reviewed the internal controls operating
within the Manager, depositary, custodian,
administrator and registrar, including
independently audited internal controls
reports.
These reports and reviews collectively
covered the eHectiveness of the
Company’s material controls, including
nancial, operational, reporting and
compliance controls. Following these
reviews, the Committee considered that
aFsu<cient level of internal assurance was
in place and the work of the external audit
was not adversely impacted by the
absence of an internal audit function.
ItFwas therefore recommended that an
internal audit function was not required at
present.
Following a review of the Company’s risk
management and internal controls
framework, the Committee noted that
these remained eHective as at the end of
the nancial year ended 31 December
2025.
Compliance with the investment trust
qualifying rules in S1158 of the
Corporation Tax Act 2010
Consideration of the Manager’s report
con rming compliance.
Principal and emerging risks
Reviewing the principal and emerging risks
faced by the Company and the systems,
processes and oversight in place to
identify, manage and mitigate the risks.
Financial reports and valuation
Recognition of investment income
Considered dividends received against
forecast and the allocation of special
dividends to income or capital.
Calculation of the investment
management and performance fees
Consideration of methodology used to
calculate the fees, matched against the
criteria set out in the AIFM agreement.
Financial reporting
Considered the accounting policies and
judgements used in preparing the half
year and annual nancial statements.
Overall accuracy of the annual report
and nancial statements
Consideration of the draft Annual Report
and Financial Statements and the letter of
representation from the Manager in
support of the letter of representation to
the auditor.
Valuation and existence of holdings
Quarterly review of portfolio holdings,
including the portfolio valuation, to ensure
that assets are correctly valued, in
accordance with the accounting policies
set out in note 1(b) to the nancial
statements and ownership of assets is
secured. Periodic review of assurance
reports relating to the existence of
controls to ensure valuations are
appropriate and ownership of assets is
appropriately veri ed through custodian
reconciliations.
Audit
Effectiveness of the independent audit
process and Auditor performance
Evaluated the eHectiveness of the
independent audit rm and process prior
to making a recommendation that the
auditor should be re-appointed at the
forthcoming AGM. Evaluated the auditor’s
performance against agreed criteria
including: quali cation; knowledge,
expertise and resources; independence
policies; eHectiveness of audit planning;
adherence to auditing standards; and
overall competence, alongside feedback
from the Manager on the audit process.
The Committee noted the auditor had
demonstrated its professional scepticism
during the audit.
Auditor independence
Ernst & Young LLP has provided audit
services to the Company for seven years,
since appointment by the Company on
6FSeptember 2019 to audit the nancial
statements for the year ended
31FDecember 2019 and subsequent
nancial periods. The auditor is required to
rotate the senior statutory auditor every
ve years. There are no contractual
obligations restricting the choice of
external auditor.
Following James Beszant acting as the
senior statutory auditor last year, this is the
rst year that the senior statutory auditor,
Jennifer Rogan has conducted the audit of
the Company’s nancial statements. The
Company is compliant with the provisions
of the September 2014 Competition and
Markets Authority Order, which requires
that FTSE 350 companies put their audit
out to tender at least every ten years.
Application during the year
The table below sets out how the Committee discharged its duties during the year under review and up until the approval of this report.
The Committee met three times during the year. Further details on attendance can be found on page 59. An evaluation of the
Committee’s eHectiveness and review of its terms of reference was completed during the year.
Signi cant issues identi ed during the Committee’s review of the Company’s principal and emerging risks, and key matters
communicated by the auditor during reporting are included below.
Section 4: Governance
61 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
controls
Risk management and internal
controls
Reviewed the internal controls operating
within the Manager, depositary, custodian,
administrator and registrar, including
independently audited internal controls
reports.
These reports and reviews collectively
covered the eHectiveness of the
Company’s material controls, including
nancial, operational, reporting and
compliance controls. Following these
reviews, the Committee considered that
aFsu<cient level of internal assurance was
in place and the work of the external audit
was not adversely impacted by the
absence of an internal audit function.
ItFwas therefore recommended that an
internal audit function was not required at
present.
Following a review of the Company’s risk
management and internal controls
framework, the Committee noted that
these remained eHective as at the end of
the nancial year ended 31 December
2025.
Compliance with the investment trust
qualifying rules in S1158 of the
Corporation Tax Act 2010
Consideration of the Manager’s report
con rming compliance.
Principal and emerging risks
Reviewing the principal and emerging risks
faced by the Company and the systems,
processes and oversight in place to
identify, manage and mitigate the risks.
Financial reports and valuation
Recognition of investment income
Considered dividends received against
forecast and the allocation of special
dividends to income or capital.
Calculation of the investment
management and performance fees
Consideration of methodology used to
calculate the fees, matched against the
criteria set out in the AIFM agreement.
Financial reporting
Considered the accounting policies and
judgements used in preparing the half
year and annual nancial statements.
Overall accuracy of the annual report
and nancial statements
Consideration of the draft Annual Report
and Financial Statements and the letter of
representation from the Manager in
support of the letter of representation to
the auditor.
Valuation and existence of holdings
Quarterly review of portfolio holdings,
including the portfolio valuation, to ensure
that assets are correctly valued, in
accordance with the accounting policies
set out in note 1(b) to the nancial
statements and ownership of assets is
secured. Periodic review of assurance
reports relating to the existence of
controls to ensure valuations are
appropriate and ownership of assets is
appropriately veri ed through custodian
reconciliations.
Audit
Effectiveness of the independent audit
process and Auditor performance
Evaluated the eHectiveness of the
independent audit rm and process prior
to making a recommendation that the
auditor should be re-appointed at the
forthcoming AGM. Evaluated the auditor’s
performance against agreed criteria
including: quali cation; knowledge,
expertise and resources; independence
policies; eHectiveness of audit planning;
adherence to auditing standards; and
overall competence, alongside feedback
from the Manager on the audit process.
The Committee noted the auditor had
demonstrated its professional scepticism
during the audit.
Auditor independence
Ernst & Young LLP has provided audit
services to the Company for seven years,
since appointment by the Company on
6FSeptember 2019 to audit the nancial
statements for the year ended
31FDecember 2019 and subsequent
nancial periods. The auditor is required to
rotate the senior statutory auditor every
ve years. There are no contractual
obligations restricting the choice of
external auditor.
Following James Beszant acting as the
senior statutory auditor last year, this is the
rst year that the senior statutory auditor,
Jennifer Rogan has conducted the audit of
the Company’s nancial statements. The
Company is compliant with the provisions
of the September 2014 Competition and
Markets Authority Order, which requires
that FTSE 350 companies put their audit
out to tender at least every ten years.
Application during the year
The table below sets out how the Committee discharged its duties during the year under review and up until the approval of this report.
The Committee met three times during the year. Further details on attendance can be found on page 59. An evaluation of the
Committee’s eHectiveness and review of its terms of reference was completed during the year.
Signi cant issues identi ed during the Committee’s review of the Company’s principal and emerging risks, and key matters
communicated by the auditor during reporting are included below.
Section 4: Governance
61 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Risk management and internal
controls Financial reports and valuation
Fair, balanced and understandable
Reviewed the Annual Report and Financial
Statements to ensure that it was fair,
balanced and understandable.
Going concern and viability
Reviewing the impact of risks on going
concern and longer-term viability.
Audit
Meetings with the auditor
Met the auditor without representatives of
the Manager present. Representatives of
the auditor attended the Committee
meeting at which the draft Annual Report
and Financial Statements were considered.
Provision of non-audit services by the
Auditor
Reviewed the Financial Reporting Council’s
Guidance on Audit Committees and
formulated a policy on the provision of
non-audit services by the Company’s
auditor. The Committee determined that
the Company’s appointed auditor will not
be considered for the provision of certain
non-audit services, such as accounting and
preparation of the nancial statements,
internal audit and custody. The auditor
may, if required, provide other non6audit
services which will be judged on a
case6by6case basis. The auditor did not
provide any non6audit services to the
Company during the year.
Consent to continue as Auditor
Ernst & Young LLP indicated to the
Committee its willingness to continue to
act as Auditor.
Recommendations made to, and approved by, the Board:
As a result of the work performed, the Committee has concluded that the Annual Report and Financial Statements for the year ended
31 December 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 ndings to the Board. The
Board’s conclusions in this respect are set out in the Statement of Directors’ Responsibilities on page 69.
Having reviewed the performance of the auditor as described above, the Committee considered it appropriate to recommend the
re-appointment of Ernst & Young LLP as auditor. Resolutions to re-appoint Ernst & Young LLP as auditor to the Company, and to
authorise the Directors to determine the auditor’s remuneration will be proposed at the AGM.
By order of the Board
Jasper Judd
Chair of the Audit and Risk Committee
18 March 2026
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
62
controls Financial reports and valuation
Fair, balanced and understandable
Reviewed the Annual Report and Financial
Statements to ensure that it was fair,
balanced and understandable.
Going concern and viability
Reviewing the impact of risks on going
concern and longer-term viability.
Audit
Meetings with the auditor
Met the auditor without representatives of
the Manager present. Representatives of
the auditor attended the Committee
meeting at which the draft Annual Report
and Financial Statements were considered.
Provision of non-audit services by the
Auditor
Reviewed the Financial Reporting Council’s
Guidance on Audit Committees and
formulated a policy on the provision of
non-audit services by the Company’s
auditor. The Committee determined that
the Company’s appointed auditor will not
be considered for the provision of certain
non-audit services, such as accounting and
preparation of the nancial statements,
internal audit and custody. The auditor
may, if required, provide other non6audit
services which will be judged on a
case6by6case basis. The auditor did not
provide any non6audit services to the
Company during the year.
Consent to continue as Auditor
Ernst & Young LLP indicated to the
Committee its willingness to continue to
act as Auditor.
Recommendations made to, and approved by, the Board:
As a result of the work performed, the Committee has concluded that the Annual Report and Financial Statements for the year ended
31 December 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 ndings to the Board. The
Board’s conclusions in this respect are set out in the Statement of Directors’ Responsibilities on page 69.
Having reviewed the performance of the auditor as described above, the Committee considered it appropriate to recommend the
re-appointment of Ernst & Young LLP as auditor. Resolutions to re-appoint Ernst & Young LLP as auditor to the Company, and to
authorise the Directors to determine the auditor’s remuneration will be proposed at the AGM.
By order of the Board
Jasper Judd
Chair of the Audit and Risk Committee
18 March 2026
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
62
Application during the year
Oversight of the Manager
The Committee:
• reviews the Manager’s performance, over the short and long
term, against the reference index, peer group and the market.
• considers the reporting it has received from the Manager
throughout the year, and the reporting from the Manager to the
shareholders.
• assesses management fees on an absolute and relative basis,
receiving input from the Company’s broker, including peer group
and industry gures, as well as the structure of the fees.
• reviews the appropriateness of the Manager’s contract, including
terms such as notice period.
• visits the Manager’s Asian o<ces periodically to meet with key
personnel from the Investment Manager; and
• assesses whether the Company receives appropriate
administrative, accounting, company secretarial and marketing
support from the Manager.
Oversight of other service providers
The Committee reviews the performance and competitiveness of
the following service providers on at least an annual basis:
• Depositary and custodian
• Corporate broker
• Registrar
• Lender
The Committee also receives a report from the Company
Secretary on ancillary service providers, and considers any
recommendations.
The Committee notes the Audit and Risk Committee’s review of
the Auditor.
Oversight of the Manager
The Committee undertook a detailed review of the Investment
Manager’s performance and agreed that there was the
appropriate depth and quality of resource to deliver superior
returns over the longer term.
The Committee reviewed the terms of the AIFM agreement,
including the fee structure, and agreed they remained t for
purpose.
The Committee reviewed the other services provided by the
Manager and agreed they were satisfactory.
Oversight of other service providers
With eHect from 5 September 2025, J.P. Morgan was appointed to
provide fund administration, depositary and custodian services to
the Company, replacing HSBC.
The annual review of each of the service providers was
satisfactory.
The Committee noted that the Audit and Risk Committee had
undertaken a detailed evaluation of the internal controls of the
Manager, registrar, and depositary and custodian.
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, and reviewing their fees.
All Directors are members of the Committee. Sarah MacAulay is the Chair of the Committee. Its terms of reference are available on the
Company’s web pages: www.schroders.co.uk/satric.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Recommendations made to, and approved by, the Board:
That the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best interests of • shareholders as a whole.
That the performance of the Company’s service providers remained satisfactory. • That J.P. Morgan be appointed as the Company’s fund administration, custodian and depositary with eHect from 5 September 2025. •
Section 4: Governance
63 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Oversight of the Manager
The Committee:
• reviews the Manager’s performance, over the short and long
term, against the reference index, peer group and the market.
• considers the reporting it has received from the Manager
throughout the year, and the reporting from the Manager to the
shareholders.
• assesses management fees on an absolute and relative basis,
receiving input from the Company’s broker, including peer group
and industry gures, as well as the structure of the fees.
• reviews the appropriateness of the Manager’s contract, including
terms such as notice period.
• visits the Manager’s Asian o<ces periodically to meet with key
personnel from the Investment Manager; and
• assesses whether the Company receives appropriate
administrative, accounting, company secretarial and marketing
support from the Manager.
Oversight of other service providers
The Committee reviews the performance and competitiveness of
the following service providers on at least an annual basis:
• Depositary and custodian
• Corporate broker
• Registrar
• Lender
The Committee also receives a report from the Company
Secretary on ancillary service providers, and considers any
recommendations.
The Committee notes the Audit and Risk Committee’s review of
the Auditor.
Oversight of the Manager
The Committee undertook a detailed review of the Investment
Manager’s performance and agreed that there was the
appropriate depth and quality of resource to deliver superior
returns over the longer term.
The Committee reviewed the terms of the AIFM agreement,
including the fee structure, and agreed they remained t for
purpose.
The Committee reviewed the other services provided by the
Manager and agreed they were satisfactory.
Oversight of other service providers
With eHect from 5 September 2025, J.P. Morgan was appointed to
provide fund administration, depositary and custodian services to
the Company, replacing HSBC.
The annual review of each of the service providers was
satisfactory.
The Committee noted that the Audit and Risk Committee had
undertaken a detailed evaluation of the internal controls of the
Manager, registrar, and depositary and custodian.
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, and reviewing their fees.
All Directors are members of the Committee. Sarah MacAulay is the Chair of the Committee. Its terms of reference are available on the
Company’s web pages: www.schroders.co.uk/satric.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Recommendations made to, and approved by, the Board:
That the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best interests of • shareholders as a whole.
That the performance of the Company’s service providers remained satisfactory. • That J.P. Morgan be appointed as the Company’s fund administration, custodian and depositary with eHect from 5 September 2025. •
Section 4: Governance
63 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Selection and induction
• The Committee prepares a job
speci cation for each role, and
proposals are sought from independent
search rms. Following evaluation by the
Committee, a rm is selected. For the
Chair and the Chairs of Committees, the
Committee considers current board
members too.
• A job speci cation outlines the
knowledge, professional skills, personal
qualities and experience requirements.
• The search rm sources a long list of
potential candidates, who are assessed
against the job speci cation and the
Company’s diversity policy.
• The Committee discusses the long list,
invites a number of candidates for
interview and makes a recommendation
to the Board.
• The Committee reviews the induction
and training of new Directors.
Board evaluation
• The Committee assesses the
performance, composition, diversity and
how eHectively members work together
annually and will also consider if an
external evaluation is appropriate.
• The evaluation focuses on whether each
Director continues to demonstrate
commitment to their role and provides
aFvaluable contribution to the Board
during the year, taking into account time
commitment, independence, con icts
and training needs.
• Following the evaluation, the Committee
provides a recommendation to
shareholders with respect to the
election or annual re-election of
Directors at the AGM.
• The Committee reviews Directors’ fees,
taking into account comparative data,
and makes a recommendation to the
Board should a change in fees be
considered appropriate.
• Any proposed changes to the
remuneration policy for Directors is
discussed and recommended to the
Board to be proposed to shareholders
for approval at the AGM.
Succession
• Taking into consideration diversity and
the need for regular refreshment, the
Board’s succession policy is that
Directors’ tenure will be for no longer
than nine years, except in exceptional
circumstances, and that each Director
will be subject to annual re-election at
the AGM.
• The Committee reviews the Board’s
current and future succession
requirements at least annually. Should
any need be identi ed the Committee
will initiate the selection process.
• The Committee oversees the handover
process for retiring Directors and the
induction process for new Directors.
Nomination Committee Report
The Nomination Committee is responsible for (1) the recruitment, selection and induction of
Directors, (2) their assessment during their tenure, and (3) the Board’s succession plans.
All Directors are members of the Committee. Sarah MacAulay is the Chair of the Committee. Its terms of reference are available on the
Company’s web pages: www.schroders.co.uk/satric.
Approach
The committee’s key roles and responsibilities are set out in the table below.
Selection and ongoing assessment of Directors
Application of
succession policy
Selection Induction Annual
evaluation
Annual review of
succession policy
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
64
• The Committee prepares a job
speci cation for each role, and
proposals are sought from independent
search rms. Following evaluation by the
Committee, a rm is selected. For the
Chair and the Chairs of Committees, the
Committee considers current board
members too.
• A job speci cation outlines the
knowledge, professional skills, personal
qualities and experience requirements.
• The search rm sources a long list of
potential candidates, who are assessed
against the job speci cation and the
Company’s diversity policy.
• The Committee discusses the long list,
invites a number of candidates for
interview and makes a recommendation
to the Board.
• The Committee reviews the induction
and training of new Directors.
Board evaluation
• The Committee assesses the
performance, composition, diversity and
how eHectively members work together
annually and will also consider if an
external evaluation is appropriate.
• The evaluation focuses on whether each
Director continues to demonstrate
commitment to their role and provides
aFvaluable contribution to the Board
during the year, taking into account time
commitment, independence, con icts
and training needs.
• Following the evaluation, the Committee
provides a recommendation to
shareholders with respect to the
election or annual re-election of
Directors at the AGM.
• The Committee reviews Directors’ fees,
taking into account comparative data,
and makes a recommendation to the
Board should a change in fees be
considered appropriate.
• Any proposed changes to the
remuneration policy for Directors is
discussed and recommended to the
Board to be proposed to shareholders
for approval at the AGM.
Succession
• Taking into consideration diversity and
the need for regular refreshment, the
Board’s succession policy is that
Directors’ tenure will be for no longer
than nine years, except in exceptional
circumstances, and that each Director
will be subject to annual re-election at
the AGM.
• The Committee reviews the Board’s
current and future succession
requirements at least annually. Should
any need be identi ed the Committee
will initiate the selection process.
• The Committee oversees the handover
process for retiring Directors and the
induction process for new Directors.
Nomination Committee Report
The Nomination Committee is responsible for (1) the recruitment, selection and induction of
Directors, (2) their assessment during their tenure, and (3) the Board’s succession plans.
All Directors are members of the Committee. Sarah MacAulay is the Chair of the Committee. Its terms of reference are available on the
Company’s web pages: www.schroders.co.uk/satric.
Approach
The committee’s key roles and responsibilities are set out in the table below.
Selection and ongoing assessment of Directors
Application of
succession policy
Selection Induction Annual
evaluation
Annual review of
succession policy
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
64
Application during the year
Selection and induction Board evaluation
• The annual Board evaluation, including
evaluation of the Board Committees,
was undertaken in December 2025. The
evaluation was undertaken internally by
the completion of questionnaires.
• The Committee also considered each
Director’s time commitment and
independence by reviewing a complete
list of appointments, including pro bono
not for pro t roles, to ensure that each
Director remained free from con ict and
had su<cient time available to
discharge each of their duties eHectively.
The Senior Independent Director led the
review of these matters in respect of the
Chair.
• The Committee was mindful of the
concept of ‘overboarding’ and
considered the time, nature and
complexity of each Director’s other roles
and concluded that it does not believe
that any of the Directors are currently
overboarded.
• The Committee considered each
Director’s contributions, and noted that
in addition to extensive experience as
professionals and non-executive
Directors, each Director had valuable
skills and experience, as detailed in their
biographies on pages 54 and 55.
• All Directors were considered to be
independent in character and
judgement.
• Based on its assessment, the Committee
provided individual recommendations
for each Director’s re-election, at the
AGM to be held in April 2026.
• The Committee reviewed Directors’ fees,
using external benchmarking, and
recommended an increase in Directors’
fees, as detailed in the Directors’
Remuneration Report.
Succession
• The Committee reviewed the succession
policy and agreed it was still t for
purpose.
• Noting that Ms MacAulay will be
reaching her nine years of tenure and
will be stepping down at the AGM held
in 2027, the Committee carefully
considered the future needs of the
Company and the skills/knowledge/
experience gap that her departure may
cause. The Committee began to
consider succession planning for her
role with a view to initiating a
recruitment process for the Board.
Recommendations made to, and approved by, the Board:
That all Directors remain independent, continue to demonstrate commitment to their roles, provide a valuable contribution to the • deliberations of the Board, contribute towards the Company’s long-term, sustainable success, and remain free from con icts with
the Company and its Directors, so should all be recommended for re-election by shareholders at the AGM.
That Directors’ fees be increased, as detailed in the Directors’ Remuneration Report, with eHect from 1 January 2026. • That the Directors’ Remuneration Report be put to shareholders for approval at the 2026 AGM. •
Section 4: Governance
65 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Selection and induction Board evaluation
• The annual Board evaluation, including
evaluation of the Board Committees,
was undertaken in December 2025. The
evaluation was undertaken internally by
the completion of questionnaires.
• The Committee also considered each
Director’s time commitment and
independence by reviewing a complete
list of appointments, including pro bono
not for pro t roles, to ensure that each
Director remained free from con ict and
had su<cient time available to
discharge each of their duties eHectively.
The Senior Independent Director led the
review of these matters in respect of the
Chair.
• The Committee was mindful of the
concept of ‘overboarding’ and
considered the time, nature and
complexity of each Director’s other roles
and concluded that it does not believe
that any of the Directors are currently
overboarded.
• The Committee considered each
Director’s contributions, and noted that
in addition to extensive experience as
professionals and non-executive
Directors, each Director had valuable
skills and experience, as detailed in their
biographies on pages 54 and 55.
• All Directors were considered to be
independent in character and
judgement.
• Based on its assessment, the Committee
provided individual recommendations
for each Director’s re-election, at the
AGM to be held in April 2026.
• The Committee reviewed Directors’ fees,
using external benchmarking, and
recommended an increase in Directors’
fees, as detailed in the Directors’
Remuneration Report.
Succession
• The Committee reviewed the succession
policy and agreed it was still t for
purpose.
• Noting that Ms MacAulay will be
reaching her nine years of tenure and
will be stepping down at the AGM held
in 2027, the Committee carefully
considered the future needs of the
Company and the skills/knowledge/
experience gap that her departure may
cause. The Committee began to
consider succession planning for her
role with a view to initiating a
recruitment process for the Board.
Recommendations made to, and approved by, the Board:
That all Directors remain independent, continue to demonstrate commitment to their roles, provide a valuable contribution to the • deliberations of the Board, contribute towards the Company’s long-term, sustainable success, and remain free from con icts with
the Company and its Directors, so should all be recommended for re-election by shareholders at the AGM.
That Directors’ fees be increased, as detailed in the Directors’ Remuneration Report, with eHect from 1 January 2026. • That the Directors’ Remuneration Report be put to shareholders for approval at the 2026 AGM. •
Section 4: Governance
65 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Directors’ Remuneration Report
On behalf of the Board, I am pleased to present the Directors’ Remuneration Report for the
year ended 31 December 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.
The law requires the Company’s auditor to audit certain of the
disclosures provided. Where disclosures have been audited, they
are indicated as such. The auditor’s opinion is included in their
report on pages 72 to 76. The following remuneration policy is
currently in force and is subject to a binding vote every
threeFyears. The next vote will take place at the forthcoming AGM
and the current policy provisions will apply until that date. An
ordinary resolution to approve the Directors’ Remuneration Policy
will be put to Shareholders at the AGM (no changes are proposed).
The Directors’ report on remuneration, set out below, is subject to
an annual advisory vote. An ordinary resolution to approve this
report will be put to shareholders at the forthcoming AGM.
At the AGM held on 25 April 2023, 99.91% of the votes cast
(including votes cast at the Chair’s discretion) in respect of
approval of the remuneration policy were in favour, while 0.09%
were against and 59,137 votes were withheld.
At the AGM held on 24 April 2025, 99.91% of the votes cast
(including votes cast at the Chair’s discretion) in respect of
approval of the annual report on remuneration for the year ended
31 December 2024 were in favour, while 0.09% were against and
12,060 votes were withheld.
Directors’ remuneration policy
The determination of the Directors’ fees is a matter dealt with by
the Board and the Nomination Committee.
It is the Board’s policy to determine the level of Directors’
remuneration having regard to amounts payable to non-executive
directors in the industry generally, the role that individual
Directors ful l in respect of Board and Committee responsibilities,
and time committed to the Company’s aHairs, taking into account
the aggregate limit of fees set out in the Company’s Articles of
Association. This aggregate level of Directors’ fees is currently set
at £300,000 per nancial year and any increase in this level
requires approval by the Board and the Company’s shareholders.
The Chair of the Board and the Chair of the Audit and Risk
Committee each receive fees at a higher rate than the other
Directors to re ect their additional responsibilities. Directors’ fees
are set at a level to recruit and retain individuals of su<cient
calibre, with the level of knowledge, experience and expertise
necessary, and to promote the success of the Company in
reaching its short and long-term strategic objectives.
The Board and its Committees exclusively comprise non-executive
directors. No Director past or present has an entitlement to a
pension from the Company and the Company has not, and does
not intend to, operate a share scheme for Directors or to award
any share options or long-term performance incentives to any
Director. No Director has a service contract with the Company;
however Directors have a letter of appointment. Directors do not
receive exit payments and are not provided with any
compensation for loss of o<ce.
Any Director who performs services which in the opinion of the
Directors are outside the scope of the ordinary duties of a
director, may be paid additional remuneration to be determined
by the Directors, in accordance with the Company’s Articles of
Association. No other payments are made to Directors other than
the reimbursement of reasonable out-of-pocket expenses
incurred in attending to the Company’s business.
Implementation of policy
The terms of Directors’ letters of appointment are available for
inspection at the Company’s registered o<ce address during
normal business hours and during the AGM at the location of
such meeting.
The Board did not seek the views of shareholders in setting this
remuneration policy. Any comments on the policy received from
shareholders would be considered on a case-by-case basis.
As the Company does not have any employees, no employee pay
and employment conditions were taken into account when
setting this remuneration policy and no employees were
consulted in its construction.
Directors’ fees are reviewed annually and take into account
research from third parties on the fee levels of directors of peer
group companies, in ation, as well as industry norms and factors
aHecting the time commitment expected of the Directors. New
directors are subject to the provisions set out in this
remuneration policy.
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
66
On behalf of the Board, I am pleased to present the Directors’ Remuneration Report for the
year ended 31 December 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.
The law requires the Company’s auditor to audit certain of the
disclosures provided. Where disclosures have been audited, they
are indicated as such. The auditor’s opinion is included in their
report on pages 72 to 76. The following remuneration policy is
currently in force and is subject to a binding vote every
threeFyears. The next vote will take place at the forthcoming AGM
and the current policy provisions will apply until that date. An
ordinary resolution to approve the Directors’ Remuneration Policy
will be put to Shareholders at the AGM (no changes are proposed).
The Directors’ report on remuneration, set out below, is subject to
an annual advisory vote. An ordinary resolution to approve this
report will be put to shareholders at the forthcoming AGM.
At the AGM held on 25 April 2023, 99.91% of the votes cast
(including votes cast at the Chair’s discretion) in respect of
approval of the remuneration policy were in favour, while 0.09%
were against and 59,137 votes were withheld.
At the AGM held on 24 April 2025, 99.91% of the votes cast
(including votes cast at the Chair’s discretion) in respect of
approval of the annual report on remuneration for the year ended
31 December 2024 were in favour, while 0.09% were against and
12,060 votes were withheld.
Directors’ remuneration policy
The determination of the Directors’ fees is a matter dealt with by
the Board and the Nomination Committee.
It is the Board’s policy to determine the level of Directors’
remuneration having regard to amounts payable to non-executive
directors in the industry generally, the role that individual
Directors ful l in respect of Board and Committee responsibilities,
and time committed to the Company’s aHairs, taking into account
the aggregate limit of fees set out in the Company’s Articles of
Association. This aggregate level of Directors’ fees is currently set
at £300,000 per nancial year and any increase in this level
requires approval by the Board and the Company’s shareholders.
The Chair of the Board and the Chair of the Audit and Risk
Committee each receive fees at a higher rate than the other
Directors to re ect their additional responsibilities. Directors’ fees
are set at a level to recruit and retain individuals of su<cient
calibre, with the level of knowledge, experience and expertise
necessary, and to promote the success of the Company in
reaching its short and long-term strategic objectives.
The Board and its Committees exclusively comprise non-executive
directors. No Director past or present has an entitlement to a
pension from the Company and the Company has not, and does
not intend to, operate a share scheme for Directors or to award
any share options or long-term performance incentives to any
Director. No Director has a service contract with the Company;
however Directors have a letter of appointment. Directors do not
receive exit payments and are not provided with any
compensation for loss of o<ce.
Any Director who performs services which in the opinion of the
Directors are outside the scope of the ordinary duties of a
director, may be paid additional remuneration to be determined
by the Directors, in accordance with the Company’s Articles of
Association. No other payments are made to Directors other than
the reimbursement of reasonable out-of-pocket expenses
incurred in attending to the Company’s business.
Implementation of policy
The terms of Directors’ letters of appointment are available for
inspection at the Company’s registered o<ce address during
normal business hours and during the AGM at the location of
such meeting.
The Board did not seek the views of shareholders in setting this
remuneration policy. Any comments on the policy received from
shareholders would be considered on a case-by-case basis.
As the Company does not have any employees, no employee pay
and employment conditions were taken into account when
setting this remuneration policy and no employees were
consulted in its construction.
Directors’ fees are reviewed annually and take into account
research from third parties on the fee levels of directors of peer
group companies, in ation, as well as industry norms and factors
aHecting the time commitment expected of the Directors. New
directors are subject to the provisions set out in this
remuneration policy.
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
66
Remuneration Report for the year ended 31 December 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 December 2025 and
the preceding nancial year. Directors’ remuneration is entirely xed; the Directors do not receive any variable remuneration. The
performance of the Company over the nancial year is presented on page 5, under the heading “Performance Summary”.
Change in annual fee over
Fees Taxable bene ts 1 Total years ended 31 December
2025 2024 2025 2024 2025 2024 2025 2024 2023 2022 2021
Director £ £ £ £ £ £ % % % % %
Sarah MacAulay (Chair) 50,500 49,000 – – 50,500 49,000 3.1 5.2 3.5 (0.4) 9.7
Jasper Judd 44,000 43,000 78 821 44,078 43,821 2.3 24.2 n/a n/a n/a
Andrew Cainey 38,000 37,000 – 53 38,000 37,053 2.7 5.9 (0.4) (0.9) 0.5
Marion Sears 2 38,000 24,667 233 126 38,233 24,793 54.1 n/a n/a n/a n/a
Caroline Hitch 3 – 11,812 – 224 – 12,036 (100.0) (65.9) 0.4 (0.6) 0.5
Total 170,500 165,479 311 1,224 170,811 166,702
1 Comprise amounts reimbursed for expenses incurred in carrying out business for the Company, and which have been grossed up, to include PAYE and NI contributions.
2 Appointed as a Director on 24 April 2024 and Senior Independent Director on 4 December 2024.
3 Retired as a Director on 24 April 2024.
The information in the above table has been audited.
Consideration of matters relating to Directors’ remuneration
Directors’ remuneration was last reviewed by the Nomination Committee and the Board in December 2025. The members of the Board
at the time that remuneration levels were considered are set out on pages 54 and 55. No external advice was sought in considering the
levels of Directors’ fees, although information on fees paid to Directors of other investment companies managed by Schroders and
peer group companies provided by the Manager and corporate broker was taken into consideration, as was independent third party
research.
Following this review, the Board agreed the Nomination Committee’s recommendation that Directors’ fees should be increased to the
following levels with eHect from 1 January 2026: Chair: £52,500; Audit and Risk Committee Chair: £45,750; and Director: £39,500.
The Board will continue to review fees on an annual basis.
Expenditure by the Company on remuneration and distributions to shareholders
The table below compares the remuneration payable to Directors, to distributions made to shareholders during the year under review
and the prior nancial year.
In considering these gures, shareholders should take into account the Company’s investment objective.
Year ended Year ended
31 December 31 December
2025 2024 Change
£000 £000 %
Remuneration payable to Directors 171 167 2.4
Distributions paid to shareholders
– Dividends paid during the year 10,755 11,036
– Share buybacks – 16,993
Total distributions paid to shareholders 10,755 28,029 (61.6)
The information in the above table has been audited.
Section 4: Governance
67 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 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 December 2025 and
the preceding nancial year. Directors’ remuneration is entirely xed; the Directors do not receive any variable remuneration. The
performance of the Company over the nancial year is presented on page 5, under the heading “Performance Summary”.
Change in annual fee over
Fees Taxable bene ts 1 Total years ended 31 December
2025 2024 2025 2024 2025 2024 2025 2024 2023 2022 2021
Director £ £ £ £ £ £ % % % % %
Sarah MacAulay (Chair) 50,500 49,000 – – 50,500 49,000 3.1 5.2 3.5 (0.4) 9.7
Jasper Judd 44,000 43,000 78 821 44,078 43,821 2.3 24.2 n/a n/a n/a
Andrew Cainey 38,000 37,000 – 53 38,000 37,053 2.7 5.9 (0.4) (0.9) 0.5
Marion Sears 2 38,000 24,667 233 126 38,233 24,793 54.1 n/a n/a n/a n/a
Caroline Hitch 3 – 11,812 – 224 – 12,036 (100.0) (65.9) 0.4 (0.6) 0.5
Total 170,500 165,479 311 1,224 170,811 166,702
1 Comprise amounts reimbursed for expenses incurred in carrying out business for the Company, and which have been grossed up, to include PAYE and NI contributions.
2 Appointed as a Director on 24 April 2024 and Senior Independent Director on 4 December 2024.
3 Retired as a Director on 24 April 2024.
The information in the above table has been audited.
Consideration of matters relating to Directors’ remuneration
Directors’ remuneration was last reviewed by the Nomination Committee and the Board in December 2025. The members of the Board
at the time that remuneration levels were considered are set out on pages 54 and 55. No external advice was sought in considering the
levels of Directors’ fees, although information on fees paid to Directors of other investment companies managed by Schroders and
peer group companies provided by the Manager and corporate broker was taken into consideration, as was independent third party
research.
Following this review, the Board agreed the Nomination Committee’s recommendation that Directors’ fees should be increased to the
following levels with eHect from 1 January 2026: Chair: £52,500; Audit and Risk Committee Chair: £45,750; and Director: £39,500.
The Board will continue to review fees on an annual basis.
Expenditure by the Company on remuneration and distributions to shareholders
The table below compares the remuneration payable to Directors, to distributions made to shareholders during the year under review
and the prior nancial year.
In considering these gures, shareholders should take into account the Company’s investment objective.
Year ended Year ended
31 December 31 December
2025 2024 Change
£000 £000 %
Remuneration payable to Directors 171 167 2.4
Distributions paid to shareholders
– Dividends paid during the year 10,755 11,036
– Share buybacks – 16,993
Total distributions paid to shareholders 10,755 28,029 (61.6)
The information in the above table has been audited.
Section 4: Governance
67 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Performance
A graph showing the Company’s share price total return compared with the Reference Index over the last ten years is set out below.
The Reference Index has been selected as an appropriate comparison based on the composition of the Company’s investment
portfolio.
Share price and Reference Index total returns
Source: Morningstar. Rebased to 100 at 31 December 2015.
Directors’ share interests
The Company’s Articles of Association do not require Directors to own shares in the Company. The interests of Directors, including
those of connected persons, at the beginning and end of the nancial year under review, are set out below.
At At
31 December 31 December
2025 1
& 2024 1
&
Sarah MacAulay 72,475 72,475
Andrew Cainey 26,753 26,753
Jasper Judd 15,140 9,280
Marion Sears 10,000 10,000
1 Ordinary shares of 5p each.
There have been no changes noti ed to the Company since the year end.
The information in the above table has been audited.
The Portfolio Managers and their connected persons’ interests in the Company were approximately 500,000 ordinary shares as at the
date of this report.
On behalf of the Board
Sarah MacAulay
Chair
18 March 2026
100
150
200
250
300
350
400
Dec-25 Dec-24 Dec-23 Dec-22 Dec-21 Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Dec-15
Share price total return Reference Index total return
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
68
A graph showing the Company’s share price total return compared with the Reference Index over the last ten years is set out below.
The Reference Index has been selected as an appropriate comparison based on the composition of the Company’s investment
portfolio.
Share price and Reference Index total returns
Source: Morningstar. Rebased to 100 at 31 December 2015.
Directors’ share interests
The Company’s Articles of Association do not require Directors to own shares in the Company. The interests of Directors, including
those of connected persons, at the beginning and end of the nancial year under review, are set out below.
At At
31 December 31 December
2025 1
& 2024 1
&
Sarah MacAulay 72,475 72,475
Andrew Cainey 26,753 26,753
Jasper Judd 15,140 9,280
Marion Sears 10,000 10,000
1 Ordinary shares of 5p each.
There have been no changes noti ed to the Company since the year end.
The information in the above table has been audited.
The Portfolio Managers and their connected persons’ interests in the Company were approximately 500,000 ordinary shares as at the
date of this report.
On behalf of the Board
Sarah MacAulay
Chair
18 March 2026
100
150
200
250
300
350
400
Dec-25 Dec-24 Dec-23 Dec-22 Dec-21 Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Dec-15
Share price total return Reference Index total return
Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Section 4: Governance
68
Statement of Directors’ Responsibilities
in respect of the Annual Report and Financial
Statements
The Directors are responsible for preparing the Annual Report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare nancial
statements for each nancial year. Under that law the Directors
have prepared the nancial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising Financial Reporting
Standard (“FRS”) 102 “The Financial Reporting Standard applicable
in the UK and Republic of Ireland” and applicable law). Under
company law the Directors must not approve the nancial
statements unless they are satis ed that they give a true and fair
view of the state of aHairs of the Company and of the return or
loss of the Company for that period. In preparing these nancial
statements, the Directors are required to:
select suitable accounting policies and then apply them • consistently;
make judgements and accounting estimates that are • reasonable and prudent;
state whether applicable UK Accounting Standards have been • followed, subject to any material departures disclosed and
explained in the nancial statements; and
prepare the nancial statements on a going concern basis • unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are su<cient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time
the nancial position of the Company and enable them to ensure
that the nancial statements and the Directors’ Remuneration
Report comply with the Companies Act 2006.
The Directors are also responsible for safeguarding the assets of
the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Manager is responsible for the maintenance and integrity of
the web pages dedicated to the Company. Legislation in the
United Kingdom governing the preparation and dissemination of
nancial statements may diHer from legislation in other
jurisdictions.
Directors’ Statement
Each of the Directors, whose names and functions are listed on
pages 54 and 55, con rm that to the best of their knowledge:
the nancial statements, which have been prepared in • accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards,
comprising FRS 102 “The Financial Reporting Standard
applicable in the UK and Republic of Ireland” and applicable
law), give a true and fair view of the assets, liabilities, nancial
position and net return of the Company;
the Annual Report and Financial Statements includes a fair • review of the development and performance of the business
and the position of the Company, together with a description
of the principal and emerging risks that it faces; and
the Annual Report and Financial Statements, taken as a whole, • is fair, balanced and understandable and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model and
strategy.
On behalf of the Board
Sarah MacAulay
Chair
18 March 2026
Section 4: Governance
69 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
in respect of the Annual Report and Financial
Statements
The Directors are responsible for preparing the Annual Report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare nancial
statements for each nancial year. Under that law the Directors
have prepared the nancial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising Financial Reporting
Standard (“FRS”) 102 “The Financial Reporting Standard applicable
in the UK and Republic of Ireland” and applicable law). Under
company law the Directors must not approve the nancial
statements unless they are satis ed that they give a true and fair
view of the state of aHairs of the Company and of the return or
loss of the Company for that period. In preparing these nancial
statements, the Directors are required to:
select suitable accounting policies and then apply them • consistently;
make judgements and accounting estimates that are • reasonable and prudent;
state whether applicable UK Accounting Standards have been • followed, subject to any material departures disclosed and
explained in the nancial statements; and
prepare the nancial statements on a going concern basis • unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are su<cient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time
the nancial position of the Company and enable them to ensure
that the nancial statements and the Directors’ Remuneration
Report comply with the Companies Act 2006.
The Directors are also responsible for safeguarding the assets of
the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Manager is responsible for the maintenance and integrity of
the web pages dedicated to the Company. Legislation in the
United Kingdom governing the preparation and dissemination of
nancial statements may diHer from legislation in other
jurisdictions.
Directors’ Statement
Each of the Directors, whose names and functions are listed on
pages 54 and 55, con rm that to the best of their knowledge:
the nancial statements, which have been prepared in • accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards,
comprising FRS 102 “The Financial Reporting Standard
applicable in the UK and Republic of Ireland” and applicable
law), give a true and fair view of the assets, liabilities, nancial
position and net return of the Company;
the Annual Report and Financial Statements includes a fair • review of the development and performance of the business
and the position of the Company, together with a description
of the principal and emerging risks that it faces; and
the Annual Report and Financial Statements, taken as a whole, • is fair, balanced and understandable and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model and
strategy.
On behalf of the Board
Sarah MacAulay
Chair
18 March 2026
Section 4: Governance
69 Schroder Asian Total Return Investment Company plcCAnnual Report and Financial Statements 2025
Gadi Sagar Temple, Rajasthan, India
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
70
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
70
Section 5: Financials
Independent Auditor’s Report 72
Income Statement 77
Statement of Changes in Equity 78
Statement of Financial Position 79
Cash Flow Statement 80
Notes to the Financial Statements 81
71 71
Section 5: Financials
71 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Independent Auditor’s Report 72
Income Statement 77
Statement of Changes in Equity 78
Statement of Financial Position 79
Cash Flow Statement 80
Notes to the Financial Statements 81
71 71
Section 5: Financials
71 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Opinion
We have audited the nancial statements of Schroder Asian Total
Return Investment Company plc for the year ended 31 December
2025 which comprise the Income Statement, the Statement of
changes in equity, the Statement of Financial Position, Cash ow
Statement and the related notes 1 to 23, including a summary of
signi cant accounting policies. The nancial reporting framework
that has been applied in their preparation is applicable law and
United Kingdom Accounting Standards including FRS 102 “The
Financial Reporting Standard applicable in the UK and Republic of
Ireland” (United Kingdom Generally Accepted Accounting
Practice).
In our opinion, the nancial statements:
• give a true and fair view of the Company’s a airs as at
31 December 2025 and of its pro t for the year then ended;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of
the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in
the Auditor’s responsibilities for the audit of the nancial
statements section of our report. We believe that the audit
evidence we have obtained is su cient and appropriate to
provide a basis for our opinion.
Independence
We are independent of the company in accordance with the
ethical requirements that are relevant to our audit of the nancial
statements in the UK, including the FRC’s Ethical Standard as
applied to public interest entities, and we have ful lled our other
ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard
were not provided to the company and we remain independent of
company in conducting the audit.
Conclusions relating to going concern
In auditing the nancial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the nancial statements is appropriate. Our
evaluation of the directors’ assessment of the Company’s ability to
continue to adopt the going concern basis of accounting included:
• Con rming our understanding of the company’s going concern
assessment process by engaging with the Directors and the
company secretary to determine if all key factors were
considered in their assessment.
• Inspecting the Directors’ assessment of going concern,
including the revenue forecast and liquidity assessment, for the
period to 31 March 2027 which is at least 12 months from the
date these nancial statements are authorised for issue.
In preparing the revenue forecast, the Company has concluded
that it is able to continue to meet its ongoing costs as they fall
due.
• Reviewing the factors and assumptions, including the impact of
the current economic environment and other signi cant events
that could give rise to market volatility, as applied to the
revenue forecast and the liquidity assessment of the
investments. We considered the appropriateness of the
methods used to calculate the revenue forecast and the
liquidity assessment and determined, through testing of the
methodology and calculations, that the methods, inputs and
assumptions utilised were appropriate to be able to make an
assessment for the company.
• Considering the mitigating factors included in the revenue
forecast that are within the control of the company. We
reviewed the Company’s assessment of the liquidity of
investments held and evaluated the company’s ability to sell
those investments to cover the working capital requirements
should revenue decline signi cantly.
• Reviewing the Company’s going concern disclosures included in
the annual report in order to assess that the disclosures were
appropriate and in conformity with the reporting standards.
Based on the work we have performed, we have not identi ed any
material uncertainties relating to events or conditions that,
individually or collectively, may cast signi cant doubt on the
company’s ability to continue as a going concern for a period of
12 months from when the nancial statements are authorised for
issue.
In relation to the company’s reporting on how they have applied
the UK Corporate Governance Code, we have nothing material to
add or draw attention to in relation to the directors’ statement in
the nancial statements about whether the directors considered
it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections of
this report. However, because not all future events or conditions
can be predicted, this statement is not a guarantee as to the
company’s ability to continue as a going concern.
Overview of our audit approach
Key audit matters • Risk of incomplete or inaccurate
revenue recognition.
• Risk of incorrect valuation or ownership
of the investment portfolio.
Materiality • Overall materiality of £5.29 million
which represents 1% of shareholders’
funds.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our
allocation of performance materiality determine our audit scope
for the company. This enables us to form an opinion on the
nancial statements. We take into account size, risk pro le, the
organisation of the Company and e ectiveness of controls, the
potential impact of climate change and changes in the business
environment when assessing the level of work to be performed.
Climate change
Stakeholders are increasingly interested in how climate change
will impact the company. The Company has determined that the
most signi cant future impacts from climate change could a ect
the Company’s investments and the overall investment process.
These are explained in the Risk Report on pages 46 to 49. All of
these disclosures form part of the “Other information,” rather
than the audited nancial statements. Our procedures on these
Independent Auditor’s Report
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
72
We have audited the nancial statements of Schroder Asian Total
Return Investment Company plc for the year ended 31 December
2025 which comprise the Income Statement, the Statement of
changes in equity, the Statement of Financial Position, Cash ow
Statement and the related notes 1 to 23, including a summary of
signi cant accounting policies. The nancial reporting framework
that has been applied in their preparation is applicable law and
United Kingdom Accounting Standards including FRS 102 “The
Financial Reporting Standard applicable in the UK and Republic of
Ireland” (United Kingdom Generally Accepted Accounting
Practice).
In our opinion, the nancial statements:
• give a true and fair view of the Company’s a airs as at
31 December 2025 and of its pro t for the year then ended;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of
the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in
the Auditor’s responsibilities for the audit of the nancial
statements section of our report. We believe that the audit
evidence we have obtained is su cient and appropriate to
provide a basis for our opinion.
Independence
We are independent of the company in accordance with the
ethical requirements that are relevant to our audit of the nancial
statements in the UK, including the FRC’s Ethical Standard as
applied to public interest entities, and we have ful lled our other
ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard
were not provided to the company and we remain independent of
company in conducting the audit.
Conclusions relating to going concern
In auditing the nancial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the nancial statements is appropriate. Our
evaluation of the directors’ assessment of the Company’s ability to
continue to adopt the going concern basis of accounting included:
• Con rming our understanding of the company’s going concern
assessment process by engaging with the Directors and the
company secretary to determine if all key factors were
considered in their assessment.
• Inspecting the Directors’ assessment of going concern,
including the revenue forecast and liquidity assessment, for the
period to 31 March 2027 which is at least 12 months from the
date these nancial statements are authorised for issue.
In preparing the revenue forecast, the Company has concluded
that it is able to continue to meet its ongoing costs as they fall
due.
• Reviewing the factors and assumptions, including the impact of
the current economic environment and other signi cant events
that could give rise to market volatility, as applied to the
revenue forecast and the liquidity assessment of the
investments. We considered the appropriateness of the
methods used to calculate the revenue forecast and the
liquidity assessment and determined, through testing of the
methodology and calculations, that the methods, inputs and
assumptions utilised were appropriate to be able to make an
assessment for the company.
• Considering the mitigating factors included in the revenue
forecast that are within the control of the company. We
reviewed the Company’s assessment of the liquidity of
investments held and evaluated the company’s ability to sell
those investments to cover the working capital requirements
should revenue decline signi cantly.
• Reviewing the Company’s going concern disclosures included in
the annual report in order to assess that the disclosures were
appropriate and in conformity with the reporting standards.
Based on the work we have performed, we have not identi ed any
material uncertainties relating to events or conditions that,
individually or collectively, may cast signi cant doubt on the
company’s ability to continue as a going concern for a period of
12 months from when the nancial statements are authorised for
issue.
In relation to the company’s reporting on how they have applied
the UK Corporate Governance Code, we have nothing material to
add or draw attention to in relation to the directors’ statement in
the nancial statements about whether the directors considered
it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections of
this report. However, because not all future events or conditions
can be predicted, this statement is not a guarantee as to the
company’s ability to continue as a going concern.
Overview of our audit approach
Key audit matters • Risk of incomplete or inaccurate
revenue recognition.
• Risk of incorrect valuation or ownership
of the investment portfolio.
Materiality • Overall materiality of £5.29 million
which represents 1% of shareholders’
funds.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our
allocation of performance materiality determine our audit scope
for the company. This enables us to form an opinion on the
nancial statements. We take into account size, risk pro le, the
organisation of the Company and e ectiveness of controls, the
potential impact of climate change and changes in the business
environment when assessing the level of work to be performed.
Climate change
Stakeholders are increasingly interested in how climate change
will impact the company. The Company has determined that the
most signi cant future impacts from climate change could a ect
the Company’s investments and the overall investment process.
These are explained in the Risk Report on pages 46 to 49. All of
these disclosures form part of the “Other information,” rather
than the audited nancial statements. Our procedures on these
Independent Auditor’s Report
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
72
unaudited disclosures therefore consisted solely of considering whether they are materially inconsistent with the
nancial statements
or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated, in line with our responsibilities on
“Other information”.
Our audit e ort in considering the impact of climate change on the nancial statements was focused on the adequacy of the
company’s disclosures in the nancial statements as set out in note 1(a) and the conclusion that there was no material impact of
climate change on the valuation of investments.
We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability and
associated disclosures.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most signi cance in our audit of the nancial
statements of the current period and include the most signi cant assessed risks of material misstatement (whether or not due to
fraud) that we identi ed. These matters included those which had the greatest e ect on the overall audit strategy, the allocation of
resources in the audit; and directing the e orts of the engagement team. These matters were addressed in the context of our audit of
the nancial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Key observations communicated
Risk Our response to the risk to the audit and risk committee
The results of our procedures identi ed
no material misstatement in relation to
the risk of incomplete or inaccurate
revenue recognition.
We performed the following
procedures:
We obtained an understanding of the
processes and controls surrounding
revenue recognition by performing
walkthrough procedures.
For 100% of dividends received and
accrued, we recalculated the dividend
income by multiplying the investment
holdings at the ex-dividend date, traced
from the accounting records, by the
dividend per share, which was agreed to
an independent data vendor. We also
agreed all exchange rates to an
independent data vendor and agreed
a sample of dividends received and
accrued to bank statements, where paid.
For all accrued dividends accrued, we
reviewed the investee company
announcements to assess whether the
dividend entitlements arose prior to
31 December 2025. We agreed the
dividend rate to corresponding
announcements made by the investee
company and recalculated the amount
receivable and agreed the receipts to the
post year end bank statement, where
received.
To test completeness of recorded income,
we veri ed that expected dividends for
each investee company held during the
year had been recorded as income with
reference to investee company
announcements obtained from an
independent external source.
For 100% of investments held during the
year, we reviewed the type of dividends
paid with reference to an external data
vendor to identify those which were
special dividends.
For a sample of special dividends
received, we assessed the
appropriateness of management’s
classi cation as revenue or capital by
reviewing the underlying rationale for the
distributions.
Incomplete or inaccurate revenue
recognition
Refer to the audit and risk committee
Report (page 60); Accounting policies
(page 81);
The total revenue for the year to
31 December 2025 was £11.91 million
(2024: £12.39 million), consisting primarily
of dividend income from listed equity
investments.
There is a risk of incomplete or inaccurate
recognition of revenue through the failure
to recognise proper income entitlements
or to apply an appropriate accounting
treatment.
Additionally, in accordance with the AIC
SORP, special dividends received by the
Company can be included in either the
revenue or capital columns of the Income
Statement depending on the commercial
circumstances behind the payments.
Section 5: Financials
73 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated, in line with our responsibilities on
“Other information”.
Our audit e ort in considering the impact of climate change on the nancial statements was focused on the adequacy of the
company’s disclosures in the nancial statements as set out in note 1(a) and the conclusion that there was no material impact of
climate change on the valuation of investments.
We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability and
associated disclosures.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most signi cance in our audit of the nancial
statements of the current period and include the most signi cant assessed risks of material misstatement (whether or not due to
fraud) that we identi ed. These matters included those which had the greatest e ect on the overall audit strategy, the allocation of
resources in the audit; and directing the e orts of the engagement team. These matters were addressed in the context of our audit of
the nancial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Key observations communicated
Risk Our response to the risk to the audit and risk committee
The results of our procedures identi ed
no material misstatement in relation to
the risk of incomplete or inaccurate
revenue recognition.
We performed the following
procedures:
We obtained an understanding of the
processes and controls surrounding
revenue recognition by performing
walkthrough procedures.
For 100% of dividends received and
accrued, we recalculated the dividend
income by multiplying the investment
holdings at the ex-dividend date, traced
from the accounting records, by the
dividend per share, which was agreed to
an independent data vendor. We also
agreed all exchange rates to an
independent data vendor and agreed
a sample of dividends received and
accrued to bank statements, where paid.
For all accrued dividends accrued, we
reviewed the investee company
announcements to assess whether the
dividend entitlements arose prior to
31 December 2025. We agreed the
dividend rate to corresponding
announcements made by the investee
company and recalculated the amount
receivable and agreed the receipts to the
post year end bank statement, where
received.
To test completeness of recorded income,
we veri ed that expected dividends for
each investee company held during the
year had been recorded as income with
reference to investee company
announcements obtained from an
independent external source.
For 100% of investments held during the
year, we reviewed the type of dividends
paid with reference to an external data
vendor to identify those which were
special dividends.
For a sample of special dividends
received, we assessed the
appropriateness of management’s
classi cation as revenue or capital by
reviewing the underlying rationale for the
distributions.
Incomplete or inaccurate revenue
recognition
Refer to the audit and risk committee
Report (page 60); Accounting policies
(page 81);
The total revenue for the year to
31 December 2025 was £11.91 million
(2024: £12.39 million), consisting primarily
of dividend income from listed equity
investments.
There is a risk of incomplete or inaccurate
recognition of revenue through the failure
to recognise proper income entitlements
or to apply an appropriate accounting
treatment.
Additionally, in accordance with the AIC
SORP, special dividends received by the
Company can be included in either the
revenue or capital columns of the Income
Statement depending on the commercial
circumstances behind the payments.
Section 5: Financials
73 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Key observations communicated
Risk Our response to the risk to the audit and risk committee
There have been no changes to the areas of audit focus raised in the above risk table from prior year.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the e ect of identi ed misstatements on the
audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to in uence the
economic decisions of the users of the nancial statements. Materiality provides a basis for determining the nature and extent of our
audit procedures.
We determined materiality for the company to be £5.29 million (2024: £4.76 million), which is 1% (2024: 1%) of shareholders’ funds. We
believe that shareholders’ funds provides us with materiality aligned to the key measurement of the company’s performance.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the
probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the company’s overall control environment, our judgement was
that performance materiality was 75% (2024: 75%) of our planning materiality, namely £3.97 million (2024: £3.57 million). We have set
performance materiality at this percentage due to our past experience of working with the company which therefore indicates a lower
risk of misstatements, both corrected and uncorrected.
Given the importance of the distinction between revenue and capital for investment trusts, we also applied a separate testing threshold
for the revenue column of the Income Statement of £0.50 million (2024: £0.50 million), being 5% of the revenue return before taxation.
The results of our procedures identi ed
no material misstatement in relation to
the risk of incorrect valuation or
ownership of the investment portfolio.
We performed the following
procedures:
We obtained an understanding of the
processes surrounding investment
pricing and legal title of listed investments
by performing walkthrough procedures.
For 100% of investments in the portfolio,
we veri ed the market prices and
exchange rates applied from an
independent pricing vendor and
recalculated the investment valuations as
at the year end.
For 100% of the CFDs in the portfolio, we
veri ed the market prices for the
underlying investments and exchange
rates applied from an independent
pricing vendor and recalculated the fair
values as at year end.
We made inquiries of the Administrator
who con rmed there were no investments
with stale prices at year end therefore no
stale pricing report was produced. We
challenged this by reviewing the daily
valuation of each investment for
ve business days before and after
31 December 2025 to identify any stale
prices. No stale prices were identi ed.
We compared the company’s investment
holdings and derivative positions as at
31 December 2025 to an independent
con rmation received directly from the
company’s custodian and depositary,
testing any reconciling items to
supporting documentation.
Incorrect valuation or ownership of
the investment portfolio
Refer to the audit and risk committee
Report (page 60); Accounting policies
(page 81);
The valuation of the investment portfolio
at 31 December 2025 was £530.04 million
(2024: £506.93 million) consisting
primarily of listed investments.
The valuation of the investments held by
the company is the key driver of the
company’s net asset value and total
return. Incorrect investment pricing, or
a failure to maintain proper legal title of
the assets held by the company, could
have a signi cant impact on the net asset
value and the return generated for
shareholders.
The fair value of listed investments is
determined using quoted market bid
prices at close of each market on the
accounting date, for investments traded
in active markets.
The company also invests in exchange
traded and over the counter derivative
contracts, including Contracts for
Di erences (CFDs).
The CFDs held in the portfolio are valued
based on the price of the underlying
security or index which they are
purchased to re ect. The fair value of the
CFDs is the di erence between the strike
price and the underlying shares in the
contract.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
74
Risk Our response to the risk to the audit and risk committee
There have been no changes to the areas of audit focus raised in the above risk table from prior year.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the e ect of identi ed misstatements on the
audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to in uence the
economic decisions of the users of the nancial statements. Materiality provides a basis for determining the nature and extent of our
audit procedures.
We determined materiality for the company to be £5.29 million (2024: £4.76 million), which is 1% (2024: 1%) of shareholders’ funds. We
believe that shareholders’ funds provides us with materiality aligned to the key measurement of the company’s performance.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the
probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the company’s overall control environment, our judgement was
that performance materiality was 75% (2024: 75%) of our planning materiality, namely £3.97 million (2024: £3.57 million). We have set
performance materiality at this percentage due to our past experience of working with the company which therefore indicates a lower
risk of misstatements, both corrected and uncorrected.
Given the importance of the distinction between revenue and capital for investment trusts, we also applied a separate testing threshold
for the revenue column of the Income Statement of £0.50 million (2024: £0.50 million), being 5% of the revenue return before taxation.
The results of our procedures identi ed
no material misstatement in relation to
the risk of incorrect valuation or
ownership of the investment portfolio.
We performed the following
procedures:
We obtained an understanding of the
processes surrounding investment
pricing and legal title of listed investments
by performing walkthrough procedures.
For 100% of investments in the portfolio,
we veri ed the market prices and
exchange rates applied from an
independent pricing vendor and
recalculated the investment valuations as
at the year end.
For 100% of the CFDs in the portfolio, we
veri ed the market prices for the
underlying investments and exchange
rates applied from an independent
pricing vendor and recalculated the fair
values as at year end.
We made inquiries of the Administrator
who con rmed there were no investments
with stale prices at year end therefore no
stale pricing report was produced. We
challenged this by reviewing the daily
valuation of each investment for
ve business days before and after
31 December 2025 to identify any stale
prices. No stale prices were identi ed.
We compared the company’s investment
holdings and derivative positions as at
31 December 2025 to an independent
con rmation received directly from the
company’s custodian and depositary,
testing any reconciling items to
supporting documentation.
Incorrect valuation or ownership of
the investment portfolio
Refer to the audit and risk committee
Report (page 60); Accounting policies
(page 81);
The valuation of the investment portfolio
at 31 December 2025 was £530.04 million
(2024: £506.93 million) consisting
primarily of listed investments.
The valuation of the investments held by
the company is the key driver of the
company’s net asset value and total
return. Incorrect investment pricing, or
a failure to maintain proper legal title of
the assets held by the company, could
have a signi cant impact on the net asset
value and the return generated for
shareholders.
The fair value of listed investments is
determined using quoted market bid
prices at close of each market on the
accounting date, for investments traded
in active markets.
The company also invests in exchange
traded and over the counter derivative
contracts, including Contracts for
Di erences (CFDs).
The CFDs held in the portfolio are valued
based on the price of the underlying
security or index which they are
purchased to re ect. The fair value of the
CFDs is the di erence between the strike
price and the underlying shares in the
contract.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
74
Reporting threshold
An amount below which identi ed misstatements are considered
as being clearly trivial.
We agreed with the audit and risk committee that we would
report to them all uncorrected audit di erences in excess of
£0.26 million (2024: £0.22 million), which is set at 5% of planning
materiality, as well as di erences below that threshold that, in our
view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in light
of other relevant qualitative considerations in forming our
opinion.
Other information
The other information comprises the information included in the
annual report, other than the nancial statements and our
auditor’s report thereon. The directors are responsible for the
other information contained within the annual report.
Our opinion on the nancial statements does not cover the other
information and, except to the extent otherwise explicitly stated in
this report, we do not express any form of assurance conclusion
thereon.
Our responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the nancial statements or our knowledge
obtained in the course of the audit or otherwise appears to be
materially misstated. If we identify such material inconsistencies
or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in
the nancial statements themselves. If, based on the work we
have performed, we conclude that there is a material
misstatement of the other information, we are required to report
that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion the part of the directors’ remuneration report to be
audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
• the information given in the strategic report and the directors’
report for the nancial year for which the nancial statements
are prepared is consistent with the nancial statements; and
• the strategic report and directors’ reports have been prepared
in accordance with applicable legal requirements.
Matters on which we are required to report by
exception
In the light of the knowledge and understanding of the company
and its environment obtained in the course of the audit, we have
not identi ed material misstatements in the strategic report or
directors’ report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
• adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches
not visited by us; or
• the nancial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement with
the accounting records and returns; or
• certain disclosures of directors’ remuneration speci ed by law
are not made; or
• we have not received all the information and explanations we
require for our audit.
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate
Governance Statement relating to the company’s compliance with
the provisions of the UK Corporate Governance Code speci ed for
our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the nancial
statements or our knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any
material uncertainties identi ed set out on page 69;
• Directors’ explanation as to its assessment of the company’s
prospects, the period this assessment covers and why the
period is appropriate set out on page 69;
• Director’s statement on whether it has a reasonable
expectation that the group will be able to continue in operation
and meets its liabilities set out on page 69;
• Directors’ statement on fair, balanced and understandable set
out on page 69;
• Board’s con rmation that it has carried out a robust
assessment of the emerging and principal risks set out on
page 46;
• The section of the annual report that describes the review of
e ectiveness of risk management and internal control systems
set out on page 46; and;
• The section describing the work of the audit and risk committee
set out on page 60.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement
set out on page 69, the directors are responsible for the
preparation of the nancial statements and for being satis ed
that they give a true and fair view, and for such internal control as
the directors determine is necessary to enable the preparation of
nancial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the nancial statements, the directors are
responsible for assessing the company’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
nancial statements
Our objectives are to obtain reasonable assurance about whether
the nancial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect
a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to in uence
the economic decisions of users taken on the basis of these
nancial statements.
Section 5: Financials
75 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
An amount below which identi ed misstatements are considered
as being clearly trivial.
We agreed with the audit and risk committee that we would
report to them all uncorrected audit di erences in excess of
£0.26 million (2024: £0.22 million), which is set at 5% of planning
materiality, as well as di erences below that threshold that, in our
view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in light
of other relevant qualitative considerations in forming our
opinion.
Other information
The other information comprises the information included in the
annual report, other than the nancial statements and our
auditor’s report thereon. The directors are responsible for the
other information contained within the annual report.
Our opinion on the nancial statements does not cover the other
information and, except to the extent otherwise explicitly stated in
this report, we do not express any form of assurance conclusion
thereon.
Our responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the nancial statements or our knowledge
obtained in the course of the audit or otherwise appears to be
materially misstated. If we identify such material inconsistencies
or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in
the nancial statements themselves. If, based on the work we
have performed, we conclude that there is a material
misstatement of the other information, we are required to report
that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion the part of the directors’ remuneration report to be
audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
• the information given in the strategic report and the directors’
report for the nancial year for which the nancial statements
are prepared is consistent with the nancial statements; and
• the strategic report and directors’ reports have been prepared
in accordance with applicable legal requirements.
Matters on which we are required to report by
exception
In the light of the knowledge and understanding of the company
and its environment obtained in the course of the audit, we have
not identi ed material misstatements in the strategic report or
directors’ report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
• adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches
not visited by us; or
• the nancial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement with
the accounting records and returns; or
• certain disclosures of directors’ remuneration speci ed by law
are not made; or
• we have not received all the information and explanations we
require for our audit.
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate
Governance Statement relating to the company’s compliance with
the provisions of the UK Corporate Governance Code speci ed for
our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the nancial
statements or our knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any
material uncertainties identi ed set out on page 69;
• Directors’ explanation as to its assessment of the company’s
prospects, the period this assessment covers and why the
period is appropriate set out on page 69;
• Director’s statement on whether it has a reasonable
expectation that the group will be able to continue in operation
and meets its liabilities set out on page 69;
• Directors’ statement on fair, balanced and understandable set
out on page 69;
• Board’s con rmation that it has carried out a robust
assessment of the emerging and principal risks set out on
page 46;
• The section of the annual report that describes the review of
e ectiveness of risk management and internal control systems
set out on page 46; and;
• The section describing the work of the audit and risk committee
set out on page 60.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement
set out on page 69, the directors are responsible for the
preparation of the nancial statements and for being satis ed
that they give a true and fair view, and for such internal control as
the directors determine is necessary to enable the preparation of
nancial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the nancial statements, the directors are
responsible for assessing the company’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
nancial statements
Our objectives are to obtain reasonable assurance about whether
the nancial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect
a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to in uence
the economic decisions of users taken on the basis of these
nancial statements.
Section 5: Financials
75 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Explanation as to what extent the audit was
considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including
fraud. The risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from
error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through
collusion. The extent to which our procedures are capable of
detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and
detection of fraud rests with both those charged with governance
of the company and management.
• We obtained an understanding of the legal and regulatory
frameworks that are applicable to the company and
determined that the most signi cant are United Kingdom
Generally Accepted Accounting Practice, the Companies
Act 2006, the UK Listing Rules, the UK Corporate Governance
Code, the Statement of Recommended Practice for the
Financial Statements of Investment Trust Companies as issued
by the Association of Investment Companies, Section 1158 of
the Corporation Tax Act 2010 and The Companies
(Miscellaneous Reporting) Regulations 2018.
• We understood how the company is complying with those
frameworks through discussions with the audit and risk
committee and company secretary, review of board and
committee minutes and review of papers provided to the audit
and risk committee.
• We assessed the susceptibility of the company’s nancial
statements to material misstatement, including how fraud
might occur by considering the key risks impacting the nancial
statements. Further discussion of our approach is set out in the
section on key audit matters above.
• Based on this understanding we designed our audit
procedures to identify non-compliance with such laws and
regulations. Our procedures involved review of the reporting to
the Directors with respect to the application of the documented
policies and procedures and review of the nancial statements
to ensure compliance with the reporting requirements of the
company.
A further description of our responsibilities for the audit of the
nancial statements is located on the Financial Reporting
Council’s website at
https://www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.
Other matters we are required to address
• Following the recommendation from the audit and risk
committee, we were appointed by the company on
6 September 2019 to audit the nancial statements for the year
ending 31 December 2019 and subsequent nancial periods.
The period of total uninterrupted engagement including
previous renewals and reappointments is seven years, covering
the years ending 31 December 2019 to 31 December 2025.
• The audit opinion is consistent with the additional report to the
audit and risk committee.
Use of our report
This report is made solely to the company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
Jennifer Rogan
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor Edinburgh
18 March 2026
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
76
considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including
fraud. The risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from
error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through
collusion. The extent to which our procedures are capable of
detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and
detection of fraud rests with both those charged with governance
of the company and management.
• We obtained an understanding of the legal and regulatory
frameworks that are applicable to the company and
determined that the most signi cant are United Kingdom
Generally Accepted Accounting Practice, the Companies
Act 2006, the UK Listing Rules, the UK Corporate Governance
Code, the Statement of Recommended Practice for the
Financial Statements of Investment Trust Companies as issued
by the Association of Investment Companies, Section 1158 of
the Corporation Tax Act 2010 and The Companies
(Miscellaneous Reporting) Regulations 2018.
• We understood how the company is complying with those
frameworks through discussions with the audit and risk
committee and company secretary, review of board and
committee minutes and review of papers provided to the audit
and risk committee.
• We assessed the susceptibility of the company’s nancial
statements to material misstatement, including how fraud
might occur by considering the key risks impacting the nancial
statements. Further discussion of our approach is set out in the
section on key audit matters above.
• Based on this understanding we designed our audit
procedures to identify non-compliance with such laws and
regulations. Our procedures involved review of the reporting to
the Directors with respect to the application of the documented
policies and procedures and review of the nancial statements
to ensure compliance with the reporting requirements of the
company.
A further description of our responsibilities for the audit of the
nancial statements is located on the Financial Reporting
Council’s website at
https://www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.
Other matters we are required to address
• Following the recommendation from the audit and risk
committee, we were appointed by the company on
6 September 2019 to audit the nancial statements for the year
ending 31 December 2019 and subsequent nancial periods.
The period of total uninterrupted engagement including
previous renewals and reappointments is seven years, covering
the years ending 31 December 2019 to 31 December 2025.
• The audit opinion is consistent with the additional report to the
audit and risk committee.
Use of our report
This report is made solely to the company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the
company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
Jennifer Rogan
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor Edinburgh
18 March 2026
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
76
Income Statement
for the year ended 31 December 2025
2025 2024
Revenue Capital Total Revenue Capital Total
Note £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments held at fair value through pro t or loss 2 – 55,629 55,629 – 53,179 53,179
Net gains on derivative contracts – 2,024 2,024 – 1,338 1,338
Net foreign currency gains/(losses) – 1,763 1,763 – (596) (596)
Income from investments 3 11,803 – 11,803 12,281 128 12,409
Other interest receivable and similar income 3 103 – 103 106 – 106
Gross return 11,906 59,416 71,322 12,387 54,049 66,436
Management fee 4 (781) (2,343) (3,124) (794) (2,382) (3,176)
Performance fee 4 – – – – (2,767) (2,767)
Administrative expenses 5 (725) – (725) (1,025) – (1,025)
Net return before nance costs and taxation 10,400 57,073 67,473 10,568 48,900 59,468
Finance costs 6 (397) (1,190) (1,587) (494) (1,482) (1,976)
Net return before taxation 10,003 55,883 65,886 10,074 47,418 57,492
Taxation 7 (825) (930) (1,755) (910) (961) (1,871)
Net return after taxation 9,178 54,953 64,131 9,164 46,457 55,621
Return per share (pence) 8 9.81 58.76 68.57 9.61 48.71 58.32
The “Total” column of this statement is the pro t and loss account of the Company. The “Revenue” and “Capital” columns represent
supplementary information prepared under guidance issued by the AIC. The Company has no other items of other comprehensive
income, and therefore the net return/(loss) after taxation is also the total comprehensive income/(loss) for the year.
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued
in the year.
The notes on pages 81 to 96 form an integral part of these nancial statements.
Section 5: Financials
77 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
for the year ended 31 December 2025
2025 2024
Revenue Capital Total Revenue Capital Total
Note £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments held at fair value through pro t or loss 2 – 55,629 55,629 – 53,179 53,179
Net gains on derivative contracts – 2,024 2,024 – 1,338 1,338
Net foreign currency gains/(losses) – 1,763 1,763 – (596) (596)
Income from investments 3 11,803 – 11,803 12,281 128 12,409
Other interest receivable and similar income 3 103 – 103 106 – 106
Gross return 11,906 59,416 71,322 12,387 54,049 66,436
Management fee 4 (781) (2,343) (3,124) (794) (2,382) (3,176)
Performance fee 4 – – – – (2,767) (2,767)
Administrative expenses 5 (725) – (725) (1,025) – (1,025)
Net return before nance costs and taxation 10,400 57,073 67,473 10,568 48,900 59,468
Finance costs 6 (397) (1,190) (1,587) (494) (1,482) (1,976)
Net return before taxation 10,003 55,883 65,886 10,074 47,418 57,492
Taxation 7 (825) (930) (1,755) (910) (961) (1,871)
Net return after taxation 9,178 54,953 64,131 9,164 46,457 55,621
Return per share (pence) 8 9.81 58.76 68.57 9.61 48.71 58.32
The “Total” column of this statement is the pro t and loss account of the Company. The “Revenue” and “Capital” columns represent
supplementary information prepared under guidance issued by the AIC. The Company has no other items of other comprehensive
income, and therefore the net return/(loss) after taxation is also the total comprehensive income/(loss) for the year.
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued
in the year.
The notes on pages 81 to 96 form an integral part of these nancial statements.
Section 5: Financials
77 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Statement of Changes in Equity
for the year ended 31 December 2025
Called-up Capital Share
share Share redemption purchase Capital Revenue
capital premium reserve reserves reserves reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 31 December 2023 5,456 114,656 11,646 29,182 262,783 24,761 448,484
Repurchase of the Company’s own shares into treasury – – – – (16,993) – (16,993)
Net return after taxation – – – – 46,457 9,164 55,621
Dividend paid in the year 9 – – – – – (11,036) (11,036)
At 31 December 2024 5,456 114,656 11,646 29,182 292,247 22,889 476,076
Net return after taxation – – – – 54,953 9,178 64,131
Dividend paid in the year 9 – – – – – (10,755) (10,755)
At 31 December 2025 5,456 114,656 11,646 29,182 347,200 21,312 529,452
The notes on pages 81 to 96 form an integral part of these nancial statements.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
78
for the year ended 31 December 2025
Called-up Capital Share
share Share redemption purchase Capital Revenue
capital premium reserve reserves reserves reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 31 December 2023 5,456 114,656 11,646 29,182 262,783 24,761 448,484
Repurchase of the Company’s own shares into treasury – – – – (16,993) – (16,993)
Net return after taxation – – – – 46,457 9,164 55,621
Dividend paid in the year 9 – – – – – (11,036) (11,036)
At 31 December 2024 5,456 114,656 11,646 29,182 292,247 22,889 476,076
Net return after taxation – – – – 54,953 9,178 64,131
Dividend paid in the year 9 – – – – – (10,755) (10,755)
At 31 December 2025 5,456 114,656 11,646 29,182 347,200 21,312 529,452
The notes on pages 81 to 96 form an integral part of these nancial statements.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
78
Statement of Financial Position
at 31 December 2025
2025 2024
Note £’000 £’000
Fixed assets
Investments held at fair value through pro t or loss 10 530,041 506,932
Current assets
Debtors 11 335 303
Cash and cash equivalents 11 2,361 1,743
Derivative nancial instruments held at fair value through pro t or loss 11 490 993
3,186 3,039
Current liabilities
Creditors: amounts falling due within one year 12 (1,831) (32,344)
(1,831) (32,344)
Net current liabilities 1,355 (29,305)
Total assets less current liabilities 531,396 477,627
Non current liabilities
Deferred taxation 13 (1,944) (1,551)
Net assets 529,452 476,076
Capital and reserves
Called-up share capital 14 5,456 5,456
Share premium 15 114,656 114,656
Capital redemption reserve 15 11,646 11,646
Special reserve 15 29,182 29,182
Capital reserve 15 347,200 292,247
Revenue reserve 15 21,312 22,889
Total equity shareholders’ funds 529,452 476,076
Net asset value per share (pence) 16 566.11 509.04
These nancial statements were approved and authorised for issue by the Board of Directors on 18 March 2026 and signed on its behalf by:
Sarah MacAulay
Chair
The notes on pages 81 to 96 form an integral part of these nancial statements.
Registered in England and Wales as a public company limited by shares.
Company registration number: 02153093.
Section 5: Financials
79 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
at 31 December 2025
2025 2024
Note £’000 £’000
Fixed assets
Investments held at fair value through pro t or loss 10 530,041 506,932
Current assets
Debtors 11 335 303
Cash and cash equivalents 11 2,361 1,743
Derivative nancial instruments held at fair value through pro t or loss 11 490 993
3,186 3,039
Current liabilities
Creditors: amounts falling due within one year 12 (1,831) (32,344)
(1,831) (32,344)
Net current liabilities 1,355 (29,305)
Total assets less current liabilities 531,396 477,627
Non current liabilities
Deferred taxation 13 (1,944) (1,551)
Net assets 529,452 476,076
Capital and reserves
Called-up share capital 14 5,456 5,456
Share premium 15 114,656 114,656
Capital redemption reserve 15 11,646 11,646
Special reserve 15 29,182 29,182
Capital reserve 15 347,200 292,247
Revenue reserve 15 21,312 22,889
Total equity shareholders’ funds 529,452 476,076
Net asset value per share (pence) 16 566.11 509.04
These nancial statements were approved and authorised for issue by the Board of Directors on 18 March 2026 and signed on its behalf by:
Sarah MacAulay
Chair
The notes on pages 81 to 96 form an integral part of these nancial statements.
Registered in England and Wales as a public company limited by shares.
Company registration number: 02153093.
Section 5: Financials
79 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
2025
2024
Note £’000 £’000
Net cash in ow from operating activities 17 4,041 7,409
Investing activities
Purchases of investments (171,808) (106,492)
Sales of investments 204,328 137,445
Net cash ows on derivative instruments 2,043 1,520
Net cash in ow from investing activities 34,563 32,473
Net cash in ow before nancing 38,604 39,882
Financing activities
Dividends paid (10,755) (11,036)
Interest paid (1,604) (2,090)
Bank loans repayment (20,440) (15,484)
Repurchase of the Company’s own shares into treasury (259) (16,736)
Net cash out ow from nancing activities (33,058) (45,346)
Net cash in ow/(out ow) in the year 5,546 (5,464)
Cash and cash equivalents at the beginning of the year (3,031) 2,527
Change in cash and cash equivalents 5,546 (5,464)
Exchange movements (154) (94)
Cash and cash equivalents at the end of the year 2,361 (3,031)
Represented by:
Cash at bank and derivative clearing houses 2,361 1,743
Overdraft at bank and derivative clearing houses – (4,774)
Cash and cash equivalents at the end of the year 2,361 (3,031)
Dividends received during the year amounted to £11,276,000 (2024: £12,488,000), deposit interest and other income receipts
amounted to £104,000 (2024: £108,000). These amounts are shown within net cash in ow from operating activities.
The notes on pages 81 to 96 form an integral part of these nancial statements.
Cash Flow Statement
for the year ended 31 December 2025
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
80
Note £’000 £’000
Net cash in ow from operating activities 17 4,041 7,409
Investing activities
Purchases of investments (171,808) (106,492)
Sales of investments 204,328 137,445
Net cash ows on derivative instruments 2,043 1,520
Net cash in ow from investing activities 34,563 32,473
Net cash in ow before nancing 38,604 39,882
Financing activities
Dividends paid (10,755) (11,036)
Interest paid (1,604) (2,090)
Bank loans repayment (20,440) (15,484)
Repurchase of the Company’s own shares into treasury (259) (16,736)
Net cash out ow from nancing activities (33,058) (45,346)
Net cash in ow/(out ow) in the year 5,546 (5,464)
Cash and cash equivalents at the beginning of the year (3,031) 2,527
Change in cash and cash equivalents 5,546 (5,464)
Exchange movements (154) (94)
Cash and cash equivalents at the end of the year 2,361 (3,031)
Represented by:
Cash at bank and derivative clearing houses 2,361 1,743
Overdraft at bank and derivative clearing houses – (4,774)
Cash and cash equivalents at the end of the year 2,361 (3,031)
Dividends received during the year amounted to £11,276,000 (2024: £12,488,000), deposit interest and other income receipts
amounted to £104,000 (2024: £108,000). These amounts are shown within net cash in ow from operating activities.
The notes on pages 81 to 96 form an integral part of these nancial statements.
Cash Flow Statement
for the year ended 31 December 2025
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
80
Notes to the Financial Statements
for the year ended 31 December 2025
1. Accounting Policies
(a) Basis of accounting
Schroder Asian Total Return Investment Company plc (“the Company”) is registered in England and Wales as a public company limited
by shares. The Company’s registered o ce is 1 London Wall Place, London EC2Y 5AU.
The nancial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting
Practice (UK GAAP), in particular in accordance with Financial Reporting Standard (FRS) 102 “The Financial Reporting Standard
applicable in the UK and Republic of Ireland”, and with the Statement of Recommended Practice “Financial Statements of Investment
Trust Companies and Venture Capital Trusts” (the “SORP”) issued by The Association of Investment Companies in July 2022. All of the
Company’s operations are of a continuing nature.
The nancial statements have been prepared on a going concern basis under the historical cost convention, as modi ed by the
revaluation of investments and derivative nancial instruments held at fair value through pro t or loss. The Directors believe that the
Company has adequate resources to continue operating for the period to 31 March 2027, which is at least 12 months from the date of
approval of these nancial statements. In forming this opinion, the Directors have taken into consideration: the controls and
monitoring processes in place; the Company’s low level of debt and other payables; the low level of operating expenses, comprising
largely variable costs which would reduce pro rata in the event of a market downturn; and that the Company’s assets comprise cash
and readily realisable securities quoted in active markets. In forming this opinion, the Directors have also considered any potential
impact of climate change on the viability of the Company. Further details of Directors’ considerations regarding any potential impact of
climate change are given in the Chair’s Statement, Investment Managers’ Review, Going Concern Statement, Viability Statement and
under the Risk Report heading on page 46.
In preparing these nancial statements the Directors have also considered the impact of climate change on the value of the listed
investments that the Company holds. As the portfolio mainly consists of listed equities, which are valued using quoted bid prices for
investments in an active market, then fair value re ects market participants view of climate change risk.
The nancial statements are presented in sterling and amounts have been rounded to the nearest thousand.
The accounting policies applied to these nancial statements are consistent with those applied in the nancial statements for the year
ended 31 December 2024.
No signi cant judgements, estimates or assumptions have been required in the preparation of the nancial statements for the current
or prior nancial year.
(b) Valuation of investments
The Company’s business is investing in nancial assets with a view to pro ting from their total return in the form of income and capital
growth. This portfolio of nancial assets and derivative nancial instruments is managed, and its performance evaluated, on a fair value
basis, in accordance with a documented investment strategy and information is provided internally on that basis to the Company’s
Board of Directors. Accordingly, upon initial recognition the investments are classi ed by the Company as “held at fair value through
pro t or loss”. Investments are included initially at transaction price, excluding expenses incidental to purchase, which are written o to
capital at the time of acquisition. Subsequently, investments are valued at fair value, which are quoted bid prices at the close of each
market on the accounting date, for investments traded in active markets.
The contracts for di erence (“CFD”) held in the portfolio are valued based on the price of the underlying security or index which they are
purchased to re ect. The fair value of the CFDs is the di erence between the strike price and the underlying shares in the contract.
All purchases and sales are accounted for on a trade date basis.
(c) Accounting for reserves
Gains and losses on sales of investments are included in the Income Statement and in capital reserves within “gains on sales of
investments”. Increases and decreases in the valuation of investments held at the year end are included in the Income Statement and
in capital reserves within change in unrealised gains on investment at fair value through pro t or loss.
Gains and losses on sales of CFDs and increases and decreases in the valuation of CFDs are included in the Income Statement and in
capital reserves within “gains on derivatives”.
Foreign exchange gains and losses on cash and deposit balances and unrealised exchange gains and losses on foreign currency loans
are included in the Income Statement and in capital reserves.
The cost of repurchasing the Company’s own shares for cancellation or to hold in treasury, including the related stamp duty and
transactions costs is charged to a distributable capital reserve.
Section 5: Financials
81 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
for the year ended 31 December 2025
1. Accounting Policies
(a) Basis of accounting
Schroder Asian Total Return Investment Company plc (“the Company”) is registered in England and Wales as a public company limited
by shares. The Company’s registered o ce is 1 London Wall Place, London EC2Y 5AU.
The nancial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting
Practice (UK GAAP), in particular in accordance with Financial Reporting Standard (FRS) 102 “The Financial Reporting Standard
applicable in the UK and Republic of Ireland”, and with the Statement of Recommended Practice “Financial Statements of Investment
Trust Companies and Venture Capital Trusts” (the “SORP”) issued by The Association of Investment Companies in July 2022. All of the
Company’s operations are of a continuing nature.
The nancial statements have been prepared on a going concern basis under the historical cost convention, as modi ed by the
revaluation of investments and derivative nancial instruments held at fair value through pro t or loss. The Directors believe that the
Company has adequate resources to continue operating for the period to 31 March 2027, which is at least 12 months from the date of
approval of these nancial statements. In forming this opinion, the Directors have taken into consideration: the controls and
monitoring processes in place; the Company’s low level of debt and other payables; the low level of operating expenses, comprising
largely variable costs which would reduce pro rata in the event of a market downturn; and that the Company’s assets comprise cash
and readily realisable securities quoted in active markets. In forming this opinion, the Directors have also considered any potential
impact of climate change on the viability of the Company. Further details of Directors’ considerations regarding any potential impact of
climate change are given in the Chair’s Statement, Investment Managers’ Review, Going Concern Statement, Viability Statement and
under the Risk Report heading on page 46.
In preparing these nancial statements the Directors have also considered the impact of climate change on the value of the listed
investments that the Company holds. As the portfolio mainly consists of listed equities, which are valued using quoted bid prices for
investments in an active market, then fair value re ects market participants view of climate change risk.
The nancial statements are presented in sterling and amounts have been rounded to the nearest thousand.
The accounting policies applied to these nancial statements are consistent with those applied in the nancial statements for the year
ended 31 December 2024.
No signi cant judgements, estimates or assumptions have been required in the preparation of the nancial statements for the current
or prior nancial year.
(b) Valuation of investments
The Company’s business is investing in nancial assets with a view to pro ting from their total return in the form of income and capital
growth. This portfolio of nancial assets and derivative nancial instruments is managed, and its performance evaluated, on a fair value
basis, in accordance with a documented investment strategy and information is provided internally on that basis to the Company’s
Board of Directors. Accordingly, upon initial recognition the investments are classi ed by the Company as “held at fair value through
pro t or loss”. Investments are included initially at transaction price, excluding expenses incidental to purchase, which are written o to
capital at the time of acquisition. Subsequently, investments are valued at fair value, which are quoted bid prices at the close of each
market on the accounting date, for investments traded in active markets.
The contracts for di erence (“CFD”) held in the portfolio are valued based on the price of the underlying security or index which they are
purchased to re ect. The fair value of the CFDs is the di erence between the strike price and the underlying shares in the contract.
All purchases and sales are accounted for on a trade date basis.
(c) Accounting for reserves
Gains and losses on sales of investments are included in the Income Statement and in capital reserves within “gains on sales of
investments”. Increases and decreases in the valuation of investments held at the year end are included in the Income Statement and
in capital reserves within change in unrealised gains on investment at fair value through pro t or loss.
Gains and losses on sales of CFDs and increases and decreases in the valuation of CFDs are included in the Income Statement and in
capital reserves within “gains on derivatives”.
Foreign exchange gains and losses on cash and deposit balances and unrealised exchange gains and losses on foreign currency loans
are included in the Income Statement and in capital reserves.
The cost of repurchasing the Company’s own shares for cancellation or to hold in treasury, including the related stamp duty and
transactions costs is charged to a distributable capital reserve.
Section 5: Financials
81 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
(d) Income
Dividends receivable are included in revenue on an ex-dividend basis except where, in the opinion of the Board, the dividend is capital
in nature, in which case it is included in capital.
Dividends from overseas companies are included gross of any withholding tax.
Where the Company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the cash
dividend foregone is recognised in revenue. Any excess in the value of the shares received over the amount of the cash dividend is
recognised in capital.
Deposit interest outstanding at the year end is calculated and accrued on a time apportionment basis using market rates of interest.
(e) Expenses
All expenses are accounted for on an accruals basis. Expenses are allocated wholly to the revenue column of the Income Statement
with the following exceptions:
The management fee is allocated 25% to revenue and 75% to capital in line with the Board’s expected long-term split of revenue and • capital return from the Company’s investment portfolio. The board reviews this allocation on an annual basis.
Any performance fee is allocated 100% to capital. • Expenses incidental to the purchase or sale of an investment are charged to capital. These expenses are commonly referred to as • transaction costs and mainly comprise brokerage commission. Details of transaction costs are given in note 10 on page 86.
(f) Finance costs
Finance costs, including collateral and nance costs paid on CFDs, any premiums payable on settlement or redemption and direct issue
costs, are accounted for on an accruals basis using the e ective interest method in accordance with FRS 102.
Finance costs are allocated 25% to revenue and 75% to capital in line with the Board’s expected long-term split of revenue and capital
return from the Company’s investment portfolio. The board reviews this allocation on an annual basis.
(g) Other nancial instruments
Cash and cash equivalents may comprise cash, overdrafts, amounts held at derivative clearing houses and demand deposits which are
readily convertible to a known amount of cash and are subject to insigni cant risk of changes in value.
Other debtors and creditors do not carry any interest, are short-term in nature and are accordingly stated at nominal value, with
debtors reduced by appropriate allowances for estimated irrecoverable amounts.
Bank loans are classi ed as nancial liabilities at amortised cost. They are initially measured at the proceeds received, net of direct issue
costs, and subsequently measured at amortised cost using the e ective interest method
Forward foreign currency contracts are held at fair value through pro t or loss based on the gain or loss if the contracts had been
closed out at the accounting date, at prevailing market rates.
(h) Taxation
The tax charge for the year includes a provision for all amounts expected to be received or paid.
Deferred tax is provided on all timing di erences that have originated but not reversed by the balance sheet date.
Deferred tax liabilities are recognised for all taxable timing di erences but deferred tax assets are only recognised to the extent that it
is probable that taxable pro ts will be available against which those timing di erences can be utilised.
Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing di erences are expected to
reverse, based on tax rates that have been enacted or substantively enacted at the balance sheet date and is measured on an
undiscounted basis.
(i) Value added tax (VAT)
Expenses are disclosed inclusive of any related irrecoverable VAT.
(j) Foreign currency
In accordance with FRS 102, the Company is required to determine a functional currency, being the currency in which the Company
predominantly operates. The board, having regard to the currency of the Company’s share capital and the predominant currency in
which its shareholders operate, has determined that sterling is the functional currency and the currency in which the accounts are
presented.
Transactions denominated in foreign currencies are converted at actual exchange rates as at the date of the transaction. Monetary
assets, liabilities and equity investments, denominated in foreign currencies at the year end, are translated at the rates of exchange
prevailing at the year end.
(k) Dividends payable
In accordance with FRS 102, the nal dividend is included in the nancial statements in the year in which it is approved by shareholders.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
82
Dividends receivable are included in revenue on an ex-dividend basis except where, in the opinion of the Board, the dividend is capital
in nature, in which case it is included in capital.
Dividends from overseas companies are included gross of any withholding tax.
Where the Company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the cash
dividend foregone is recognised in revenue. Any excess in the value of the shares received over the amount of the cash dividend is
recognised in capital.
Deposit interest outstanding at the year end is calculated and accrued on a time apportionment basis using market rates of interest.
(e) Expenses
All expenses are accounted for on an accruals basis. Expenses are allocated wholly to the revenue column of the Income Statement
with the following exceptions:
The management fee is allocated 25% to revenue and 75% to capital in line with the Board’s expected long-term split of revenue and • capital return from the Company’s investment portfolio. The board reviews this allocation on an annual basis.
Any performance fee is allocated 100% to capital. • Expenses incidental to the purchase or sale of an investment are charged to capital. These expenses are commonly referred to as • transaction costs and mainly comprise brokerage commission. Details of transaction costs are given in note 10 on page 86.
(f) Finance costs
Finance costs, including collateral and nance costs paid on CFDs, any premiums payable on settlement or redemption and direct issue
costs, are accounted for on an accruals basis using the e ective interest method in accordance with FRS 102.
Finance costs are allocated 25% to revenue and 75% to capital in line with the Board’s expected long-term split of revenue and capital
return from the Company’s investment portfolio. The board reviews this allocation on an annual basis.
(g) Other nancial instruments
Cash and cash equivalents may comprise cash, overdrafts, amounts held at derivative clearing houses and demand deposits which are
readily convertible to a known amount of cash and are subject to insigni cant risk of changes in value.
Other debtors and creditors do not carry any interest, are short-term in nature and are accordingly stated at nominal value, with
debtors reduced by appropriate allowances for estimated irrecoverable amounts.
Bank loans are classi ed as nancial liabilities at amortised cost. They are initially measured at the proceeds received, net of direct issue
costs, and subsequently measured at amortised cost using the e ective interest method
Forward foreign currency contracts are held at fair value through pro t or loss based on the gain or loss if the contracts had been
closed out at the accounting date, at prevailing market rates.
(h) Taxation
The tax charge for the year includes a provision for all amounts expected to be received or paid.
Deferred tax is provided on all timing di erences that have originated but not reversed by the balance sheet date.
Deferred tax liabilities are recognised for all taxable timing di erences but deferred tax assets are only recognised to the extent that it
is probable that taxable pro ts will be available against which those timing di erences can be utilised.
Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing di erences are expected to
reverse, based on tax rates that have been enacted or substantively enacted at the balance sheet date and is measured on an
undiscounted basis.
(i) Value added tax (VAT)
Expenses are disclosed inclusive of any related irrecoverable VAT.
(j) Foreign currency
In accordance with FRS 102, the Company is required to determine a functional currency, being the currency in which the Company
predominantly operates. The board, having regard to the currency of the Company’s share capital and the predominant currency in
which its shareholders operate, has determined that sterling is the functional currency and the currency in which the accounts are
presented.
Transactions denominated in foreign currencies are converted at actual exchange rates as at the date of the transaction. Monetary
assets, liabilities and equity investments, denominated in foreign currencies at the year end, are translated at the rates of exchange
prevailing at the year end.
(k) Dividends payable
In accordance with FRS 102, the nal dividend is included in the nancial statements in the year in which it is approved by shareholders.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
82
(l) Repurchases of shares into treasury and subsequent reissues
The cost of repurchasing the Company’s shares into treasury, including the related stamp duty and transaction costs is dealt with in the
Statement of Changes in Equity and is charged to capital reserves. Share repurchase transactions are accounted for on a trade date
basis.
The sales proceeds of treasury shares reissued are treated as a realised pro t up to the amount of the purchase price of those shares
and is transferred to capital reserves. The excess of the sales proceeds over the purchase price is transferred to “share premium”.
2. Gains on investments held at fair value through profit or loss 2025 2024
£’000 £’000
Realised gains on sales of investments 11,327 19,679
Change in unrealised gains on Investments at fair value through pro t or loss 44,302 33,500
Gains on investments held at fair value through pro t or loss 55,629 53,179
3. Income 2025 2024
£’000 £’000
Income from investments
Overseas dividends 10,761 11,922
Overseas special dividends 546 359
Stock dividend 39 –
CFD dividend income 457 –
11,803 12,281
Other interest receivable and similar income
Deposit interest 94 27
Other income 9 79
103 106
11,906 12,387
Capital
Overseas special dividend allocated to capital – 128
4. Management and performance fees 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Management fee 781 2,343 3,124 794 2,382 3,176
Performance fee – – – – 2,767 2,767
781 2,343 3,124 794 5,149 5,943
Under the terms of the AIFM agreement, the Manager is entitled to a fee at a rate of 0.65% of gross assets less cash and cash
equivalents, which is calculated and payable quarterly.
A performance fee is payable amounting to 10% of any outperformance of the NAV over an annual hurdle of 7%, provided that the
closing NAV per share exceeds the “high water mark” NAV at the date the last performance fee was paid. The sum of the base fee and
any performance fee payable is capped at 1.25% of the closing net assets. In addition, the Manager may only be paid a performance
fee when the Company’s NAV total return is equal or greater to the total return of the Reference Index. If the Company invests in funds
managed or advised by the Manager, any fees earned by the Manager from those investments are rebated to the Company. The
management fee chargeable in respect of the year ended 31 December 2025 amounted to £3,124,000 (2024: £3,176,000). No
performance fee is payable for the year (2024: £2,767,000).
The Manager is also entitled to a fee for providing administrative, accounting and company secretarial services to the Company. For
these services in the year ended 31 December 2025, the Manager received a fee of £75,000 (2024: £75,000). Details of all amounts
payable to the Manager are given in note 19 on page 90.
Section 5: Financials
83 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
The cost of repurchasing the Company’s shares into treasury, including the related stamp duty and transaction costs is dealt with in the
Statement of Changes in Equity and is charged to capital reserves. Share repurchase transactions are accounted for on a trade date
basis.
The sales proceeds of treasury shares reissued are treated as a realised pro t up to the amount of the purchase price of those shares
and is transferred to capital reserves. The excess of the sales proceeds over the purchase price is transferred to “share premium”.
2. Gains on investments held at fair value through profit or loss 2025 2024
£’000 £’000
Realised gains on sales of investments 11,327 19,679
Change in unrealised gains on Investments at fair value through pro t or loss 44,302 33,500
Gains on investments held at fair value through pro t or loss 55,629 53,179
3. Income 2025 2024
£’000 £’000
Income from investments
Overseas dividends 10,761 11,922
Overseas special dividends 546 359
Stock dividend 39 –
CFD dividend income 457 –
11,803 12,281
Other interest receivable and similar income
Deposit interest 94 27
Other income 9 79
103 106
11,906 12,387
Capital
Overseas special dividend allocated to capital – 128
4. Management and performance fees 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Management fee 781 2,343 3,124 794 2,382 3,176
Performance fee – – – – 2,767 2,767
781 2,343 3,124 794 5,149 5,943
Under the terms of the AIFM agreement, the Manager is entitled to a fee at a rate of 0.65% of gross assets less cash and cash
equivalents, which is calculated and payable quarterly.
A performance fee is payable amounting to 10% of any outperformance of the NAV over an annual hurdle of 7%, provided that the
closing NAV per share exceeds the “high water mark” NAV at the date the last performance fee was paid. The sum of the base fee and
any performance fee payable is capped at 1.25% of the closing net assets. In addition, the Manager may only be paid a performance
fee when the Company’s NAV total return is equal or greater to the total return of the Reference Index. If the Company invests in funds
managed or advised by the Manager, any fees earned by the Manager from those investments are rebated to the Company. The
management fee chargeable in respect of the year ended 31 December 2025 amounted to £3,124,000 (2024: £3,176,000). No
performance fee is payable for the year (2024: £2,767,000).
The Manager is also entitled to a fee for providing administrative, accounting and company secretarial services to the Company. For
these services in the year ended 31 December 2025, the Manager received a fee of £75,000 (2024: £75,000). Details of all amounts
payable to the Manager are given in note 19 on page 90.
Section 5: Financials
83 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
5. Administrative expenses
2025
2024
£’000 £’000
Custody fees 156 243
Administration expenses 265 491
Directors’ fees 1 171 165
Secretarial fee 75 75
Auditor’s remuneration 2 56 51
725 1,025
1 Details of all amounts payable to Directors are given in the Directors’ Remuneration Report on page 67.
2 No amounts are payable to the auditor for non-audit services.
6. Finance costs 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest on bank loans and overdrafts 238 713 951 494 1,482 1,976
CFD interest expenses 159 477 636 – – –
397 1,190 1,587 494 1,482 1,976
7. Taxation
(a) Analysis of tax charge for the year 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Irrecoverable overseas tax 825 – 825 910 – 910
Overseas capital gains tax – 930 930 – 961 961
Taxation for the year 825 930 1,755 910 961 1,871
The Company has no corporation tax liability for the year (2024: nil).
The overseas capital gains tax relates to the deferred tax liability on unrealised gains on Indian investments held at the year end.
Further details can be found in note 13.
(b) Factors affecting tax charge for the year
The standard rate of corporation tax in the UK is 25%, e ective from 1 April 2023. Accordingly, the Company’s pro ts for this accounting
year would be taxed at a rate of 25% (2024: 25%). However the corporation tax charge for the year is nil (2024: nil), as dividends and
capital gains are not subject to corporation tax. The tax charge comprises irrecoverable withholding tax deducted at source from
dividends receivable and overseas capital gains tax.
The table below shows how taxable income is reduced to zero by reconciling the expected corporation tax due on the net return before
tax based on current tax rates, to the actual tax charge for the year.
2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Net return on ordinary activities before taxation 10,003 55,883 65,886 10,074 47,418 57,492
Net return on ordinary activities before taxation multiplied by the
Company’s applicable rate of corporation tax for the year of 25%
(2024: 25%) 2,501 13,971 16,472 2,519 11,855 14,374
E ects of:
Capital gains on investments not subject to taxation – (14,854) (14,854) – (13,480) (13,480)
Income not subject to taxation (2,827) – (2,827) (3,049) (32) (3,081)
Overseas capital gains tax – 930 930 – 961 961
Irrecoverable overseas tax 825 – 825 910 – 910
Unrelieved expenses 326 883 1,209 530 1,657 2,187
Tax on ordinary activities 825 930 1,755 910 961 1,871
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
84
£’000 £’000
Custody fees 156 243
Administration expenses 265 491
Directors’ fees 1 171 165
Secretarial fee 75 75
Auditor’s remuneration 2 56 51
725 1,025
1 Details of all amounts payable to Directors are given in the Directors’ Remuneration Report on page 67.
2 No amounts are payable to the auditor for non-audit services.
6. Finance costs 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest on bank loans and overdrafts 238 713 951 494 1,482 1,976
CFD interest expenses 159 477 636 – – –
397 1,190 1,587 494 1,482 1,976
7. Taxation
(a) Analysis of tax charge for the year 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Irrecoverable overseas tax 825 – 825 910 – 910
Overseas capital gains tax – 930 930 – 961 961
Taxation for the year 825 930 1,755 910 961 1,871
The Company has no corporation tax liability for the year (2024: nil).
The overseas capital gains tax relates to the deferred tax liability on unrealised gains on Indian investments held at the year end.
Further details can be found in note 13.
(b) Factors affecting tax charge for the year
The standard rate of corporation tax in the UK is 25%, e ective from 1 April 2023. Accordingly, the Company’s pro ts for this accounting
year would be taxed at a rate of 25% (2024: 25%). However the corporation tax charge for the year is nil (2024: nil), as dividends and
capital gains are not subject to corporation tax. The tax charge comprises irrecoverable withholding tax deducted at source from
dividends receivable and overseas capital gains tax.
The table below shows how taxable income is reduced to zero by reconciling the expected corporation tax due on the net return before
tax based on current tax rates, to the actual tax charge for the year.
2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Net return on ordinary activities before taxation 10,003 55,883 65,886 10,074 47,418 57,492
Net return on ordinary activities before taxation multiplied by the
Company’s applicable rate of corporation tax for the year of 25%
(2024: 25%) 2,501 13,971 16,472 2,519 11,855 14,374
E ects of:
Capital gains on investments not subject to taxation – (14,854) (14,854) – (13,480) (13,480)
Income not subject to taxation (2,827) – (2,827) (3,049) (32) (3,081)
Overseas capital gains tax – 930 930 – 961 961
Irrecoverable overseas tax 825 – 825 910 – 910
Unrelieved expenses 326 883 1,209 530 1,657 2,187
Tax on ordinary activities 825 930 1,755 910 961 1,871
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
84
(c) Deferred taxation
The Company has an unrecognised deferred tax asset of £21,134,000 (2024: £19,925,000) based on a prospective corporation tax rate
of 25% (2024: 25%).
This deferred tax asset has arisen due to the cumulative excess of deductible expenses over taxable income. Given the composition of
the Company’s portfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been
recognised in the nancial statements.
Given the Company’s intention to meet the conditions required to retain its status as an investment trust company, no provision has
been made for UK capital gains tax on any capital gains or losses arising on the revaluation or disposal of investments. Please refer to
note 13 for details of the deferred taxation in relation to overseas capital gains tax.
8. Return per share 2025 2024
£’000 £’000
Revenue return 9,178 9,164
Capital return 54,953 46,457
Total return 64,131 55,621
Weighted average number of shares in issue during the year 93,524,454 95,376,796
Revenue return per share (pence) 9.81 9.61
Capital return per share (pence) 58.76 48.71
Total return per share (pence) 68.57 58.32
9. Dividends
(a) Dividends paid and declared
2024 2023
£’000 £’000
2024 nal dividend of 11.5p (2023: 11.5p), paid out of revenue pro ts 10,755 11,036
2025 2024
£’000 £’000
2025 nal dividend proposed of 11.5p (2024: 11.5p), to be paid out of revenue pro ts 10,755 10,755
(b) Dividends for the purposes of Section 1158 of the Corporation Tax Act 2010 (“Section 1158”)
The requirements of Section 1158 are considered on the basis of dividends declared in respect of the nancial year as shown below.
The revenue available for distribution by way of dividend for the year is £9,178,000 (2024: £9,164,000).
2025 2024
£’000 £’000
Final dividend of 11.5p (2024: 11.5p) 10,755 10,755
Section 5: Financials
85 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
The Company has an unrecognised deferred tax asset of £21,134,000 (2024: £19,925,000) based on a prospective corporation tax rate
of 25% (2024: 25%).
This deferred tax asset has arisen due to the cumulative excess of deductible expenses over taxable income. Given the composition of
the Company’s portfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been
recognised in the nancial statements.
Given the Company’s intention to meet the conditions required to retain its status as an investment trust company, no provision has
been made for UK capital gains tax on any capital gains or losses arising on the revaluation or disposal of investments. Please refer to
note 13 for details of the deferred taxation in relation to overseas capital gains tax.
8. Return per share 2025 2024
£’000 £’000
Revenue return 9,178 9,164
Capital return 54,953 46,457
Total return 64,131 55,621
Weighted average number of shares in issue during the year 93,524,454 95,376,796
Revenue return per share (pence) 9.81 9.61
Capital return per share (pence) 58.76 48.71
Total return per share (pence) 68.57 58.32
9. Dividends
(a) Dividends paid and declared
2024 2023
£’000 £’000
2024 nal dividend of 11.5p (2023: 11.5p), paid out of revenue pro ts 10,755 11,036
2025 2024
£’000 £’000
2025 nal dividend proposed of 11.5p (2024: 11.5p), to be paid out of revenue pro ts 10,755 10,755
(b) Dividends for the purposes of Section 1158 of the Corporation Tax Act 2010 (“Section 1158”)
The requirements of Section 1158 are considered on the basis of dividends declared in respect of the nancial year as shown below.
The revenue available for distribution by way of dividend for the year is £9,178,000 (2024: £9,164,000).
2025 2024
£’000 £’000
Final dividend of 11.5p (2024: 11.5p) 10,755 10,755
Section 5: Financials
85 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
10. Investments held at fair value through profit or loss
(a) Movement in investments 2025 2024
£’000 £’000
Opening book cost 359,679 370,259
Opening investment holding gains 147,253 113,753
Opening fair value 506,932 484,012
Analysis of transactions made during the year
Purchases at cost 171,808 106,370
Sales proceeds (204,328) (136,629)
Gains on investments held at fair value 55,629 53,179
Closing fair value 530,041 506,932
Closing book cost 338,486 359,679
Closing investment holding gains 191,555 147,253
Closing fair value 530,041 506,932
Sales proceeds amounting to £204,328,000 (2024: £136,629,000) were receivable from disposals of investments in the year. The book
cost of these investments when they were purchased was £193,001,000 (2024: £116,950,000). These investments have been revalued
over time and until they were sold any unrealised gains and losses were included in the fair value of the investments.
(b) Transaction costs
The following transaction costs, mainly comprising brokerage commissions, were incurred during the year:
2025 2024
£’000 £’000
On acquisitions 198 123
On disposals 433 248
631 371
(c) Contracts for Difference 2025 2024
Fair Asset Fair Asset
value exposure value exposure
CFDs held at 31 December: £’000 £’000 £’000 £’000
CFD assets 353 15,123 30 4,013
CFD liabilities (513) 16,590 (254) 11,294
(160) 31,713 (224) 15,307
The CFDs are held as a cost e ective and exible form of borrowing. The total market exposure on the CFDs held at the year end is
£31,713,000 (2024: £15,307,000) and the notional value attached to these CFDs is £31,873,000 (2024: £15,531,000). This resulted in an
unrealised loss of £160,000 (2024: £224,000).
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
86
(a) Movement in investments 2025 2024
£’000 £’000
Opening book cost 359,679 370,259
Opening investment holding gains 147,253 113,753
Opening fair value 506,932 484,012
Analysis of transactions made during the year
Purchases at cost 171,808 106,370
Sales proceeds (204,328) (136,629)
Gains on investments held at fair value 55,629 53,179
Closing fair value 530,041 506,932
Closing book cost 338,486 359,679
Closing investment holding gains 191,555 147,253
Closing fair value 530,041 506,932
Sales proceeds amounting to £204,328,000 (2024: £136,629,000) were receivable from disposals of investments in the year. The book
cost of these investments when they were purchased was £193,001,000 (2024: £116,950,000). These investments have been revalued
over time and until they were sold any unrealised gains and losses were included in the fair value of the investments.
(b) Transaction costs
The following transaction costs, mainly comprising brokerage commissions, were incurred during the year:
2025 2024
£’000 £’000
On acquisitions 198 123
On disposals 433 248
631 371
(c) Contracts for Difference 2025 2024
Fair Asset Fair Asset
value exposure value exposure
CFDs held at 31 December: £’000 £’000 £’000 £’000
CFD assets 353 15,123 30 4,013
CFD liabilities (513) 16,590 (254) 11,294
(160) 31,713 (224) 15,307
The CFDs are held as a cost e ective and exible form of borrowing. The total market exposure on the CFDs held at the year end is
£31,713,000 (2024: £15,307,000) and the notional value attached to these CFDs is £31,873,000 (2024: £15,531,000). This resulted in an
unrealised loss of £160,000 (2024: £224,000).
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
86
11. Current assets
Debtors 2025 2024
£’000 £’000
Dividends and interest receivable 327 275
Taxation recoverable 8 2
Other debtors – 26
335 303
The Directors consider that the carrying amount of debtors approximates to their fair value.
Cash and cash equivalents 2025 2024
£’000 £’000
Cash at bank 2,361 627
Amounts held at derivative clearing houses and brokers – 1,116
2,361 1,743
The carrying amount of cash represents its fair value. No cash equivalents were held at the year end (2024: none).
Derivative nancial instruments held at fair value through pro t or loss 2025 2024
£’000 £’000
CFD assets 353 30
Forward currency contracts – 458
Index put options 137 505
490 993
Details of the CFDs and index put options held at the year end are given on pages 28 to 30
12. Current liabilities 2025 2024
Creditors: amounts falling due within one year £’000 £’000
Bank loan – 22,357
Bank overdraft – 4,534
Amounts held at derivative clearing houses and brokers – 240
Derivative nancial instruments held at fair value through pro t or loss – CFD liabilities 513 254
Amounts payable on settlement of derivatives – 743
Repurchase of ordinary shares into treasury awaiting settlement – 255
Other creditors and accruals 1,318 3,961
1,831 32,344
The Directors consider that the carrying amount of creditors falling due within one year approximates to their fair value.
During the year the Company held a 364 day multicurrency credit facility with The Bank of Nova Scotia, London Branch, expiring in July
2026. On 20 October 2025 the loan was repaid in full to The Bank of Nova Scotia. The bank overdraft at 31 December 2025 was repaid
during the year. There is no longer an overdraft facility in place.
13. Deferred taxation
Deferred taxation comprises the deferred tax liability on the unrealised gains on Indian investments. Indian capital gains tax crystallises
on disposal of the underlying asset and is charged based on a 12 month holding period of the asset. The current rate of tax is 12.5%
(plus applicable surcharge and cess) for holdings over 12 months and 20% (plus applicable surcharge and cess) for holdings under
12 months.
The provision for deferred taxation at the year end was £1,944,000 (2024: £1,551,000).
Section 5: Financials
87 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Debtors 2025 2024
£’000 £’000
Dividends and interest receivable 327 275
Taxation recoverable 8 2
Other debtors – 26
335 303
The Directors consider that the carrying amount of debtors approximates to their fair value.
Cash and cash equivalents 2025 2024
£’000 £’000
Cash at bank 2,361 627
Amounts held at derivative clearing houses and brokers – 1,116
2,361 1,743
The carrying amount of cash represents its fair value. No cash equivalents were held at the year end (2024: none).
Derivative nancial instruments held at fair value through pro t or loss 2025 2024
£’000 £’000
CFD assets 353 30
Forward currency contracts – 458
Index put options 137 505
490 993
Details of the CFDs and index put options held at the year end are given on pages 28 to 30
12. Current liabilities 2025 2024
Creditors: amounts falling due within one year £’000 £’000
Bank loan – 22,357
Bank overdraft – 4,534
Amounts held at derivative clearing houses and brokers – 240
Derivative nancial instruments held at fair value through pro t or loss – CFD liabilities 513 254
Amounts payable on settlement of derivatives – 743
Repurchase of ordinary shares into treasury awaiting settlement – 255
Other creditors and accruals 1,318 3,961
1,831 32,344
The Directors consider that the carrying amount of creditors falling due within one year approximates to their fair value.
During the year the Company held a 364 day multicurrency credit facility with The Bank of Nova Scotia, London Branch, expiring in July
2026. On 20 October 2025 the loan was repaid in full to The Bank of Nova Scotia. The bank overdraft at 31 December 2025 was repaid
during the year. There is no longer an overdraft facility in place.
13. Deferred taxation
Deferred taxation comprises the deferred tax liability on the unrealised gains on Indian investments. Indian capital gains tax crystallises
on disposal of the underlying asset and is charged based on a 12 month holding period of the asset. The current rate of tax is 12.5%
(plus applicable surcharge and cess) for holdings over 12 months and 20% (plus applicable surcharge and cess) for holdings under
12 months.
The provision for deferred taxation at the year end was £1,944,000 (2024: £1,551,000).
Section 5: Financials
87 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
14. Called-up share capital
2025
2024
£’000 £’000
Ordinary shares allotted, called up and fully paid:
Opening balance of 93,524,454 (2024: 97,234,120) shares 4,676 4,862
Repurchase of nil (2024: 3,709,666) shares into treasury – (186)
Subtotal of 93,524,454 (2024: 93,524,454) shares 4,676 4,676
15,590,197 (2024: 15,590,197) shares held in treasury 780 780
Closing balance 1 5,456 5,456
1 Represents 109,114,651 (2024: 109,114,651) shares of 5p each, including 15,590,197 (2024: 15,590,197) held in treasury.
15. Reserves Capital reserves
Capital
Share redemption Special Capital Revenue
premium 1 reserve 2 reserve 3 reserve 4 reserve 5
Year ended 31 December 2025 £’000 £’000 £’000 £’000 £’000
At 31 December 2024 114,656 11,646 29,182 292,247 22,889
Gains on sales of investments – – – 11,327 –
Change in unrealised gains on Investments at fair value
through pro t or loss – – – 44,302 –
Gains on derivatives – – – 2,024 –
Exchange losses on cash and short-term deposits – – – (154) –
Exchange gains on foreign currency loans – – – 1,917 –
Management fee and nance costs allocated to capital – – – (3,533) –
Overseas capital gains tax – – – (930) –
Dividend paid – – – – (10,755)
Retained revenue for the year – – – – 9,178
At 31 December 2025 114,656 11,646 29,182 347,200 21,312
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
88
£’000 £’000
Ordinary shares allotted, called up and fully paid:
Opening balance of 93,524,454 (2024: 97,234,120) shares 4,676 4,862
Repurchase of nil (2024: 3,709,666) shares into treasury – (186)
Subtotal of 93,524,454 (2024: 93,524,454) shares 4,676 4,676
15,590,197 (2024: 15,590,197) shares held in treasury 780 780
Closing balance 1 5,456 5,456
1 Represents 109,114,651 (2024: 109,114,651) shares of 5p each, including 15,590,197 (2024: 15,590,197) held in treasury.
15. Reserves Capital reserves
Capital
Share redemption Special Capital Revenue
premium 1 reserve 2 reserve 3 reserve 4 reserve 5
Year ended 31 December 2025 £’000 £’000 £’000 £’000 £’000
At 31 December 2024 114,656 11,646 29,182 292,247 22,889
Gains on sales of investments – – – 11,327 –
Change in unrealised gains on Investments at fair value
through pro t or loss – – – 44,302 –
Gains on derivatives – – – 2,024 –
Exchange losses on cash and short-term deposits – – – (154) –
Exchange gains on foreign currency loans – – – 1,917 –
Management fee and nance costs allocated to capital – – – (3,533) –
Overseas capital gains tax – – – (930) –
Dividend paid – – – – (10,755)
Retained revenue for the year – – – – 9,178
At 31 December 2025 114,656 11,646 29,182 347,200 21,312
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
88
Capital reserves
Capital
Share redemption Special Capital Revenue
premium 1 reserve 2 reserve 3 reserve 4 reserve 5
Year ended 31 December 2024 £’000 £’000 £’000 £’000 £’000
At 31 December 2023 114,656 11,646 29,182 262,783 24,761
Gains on sales of investments – – – 19,679 –
Change in unrealised gains on Investments at fair value through
pro t or loss – – – 33,500 –
Gains on derivatives – – – 1,338 –
Exchange losses on cash and short-term deposits – – – (94) –
Exchange losses on foreign currency loans – – – (502) –
Special dividend allocated to capital – – – 128 –
Repurchase of shares into treasury – – – (16,993) –
Performance fee allocated to capital – – – (2,767) –
Management fee and nance costs allocated to capital – – – (3,864) –
Overseas capital gains tax – – – (961) –
Dividend paid – – – – (11,036)
Retained revenue for the year – – – – 9,164
At 31 December 2024 114,656 11,646 29,182 292,247 22,889
1 The share premium is a non distributable reserve and represents the amount by which the fair value of the consideration received from shares issued exceeds the
nominal value of shares issued.
2 The capital redemption reserve represents the accumulated nominal value of shares repurchased for cancellation. This reserve is not distributable.
3 This is a distributable capital reserve arising from the cancellation of the share premium, and may be distributed as dividends or used to repurchase the Company’s
own shares.
4 Capital Reserves represent a realised and unrealised net amount and a positive balance may be used to purchase the companys own shares. This reserve may
include some holding gains on liquid investments (which may be deemed to be realised) and other amounts which are unrealised. An analysis has not been made
between those amounts that are realised (and may be distributed as dividends or used to repurchase the Company’s own shares) and those that are unrealised.
5 A positive balance on the revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares.
1 6. Net asset value per share 2025 2024
£’000 £’000
Total equity shareholders’ funds (£’000) 529,452 476,076
Shares in issue at the year end 93,524,454 93,524,454
Net asset value per share (pence) 566.11 509.04
Section 5: Financials
89 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Capital
Share redemption Special Capital Revenue
premium 1 reserve 2 reserve 3 reserve 4 reserve 5
Year ended 31 December 2024 £’000 £’000 £’000 £’000 £’000
At 31 December 2023 114,656 11,646 29,182 262,783 24,761
Gains on sales of investments – – – 19,679 –
Change in unrealised gains on Investments at fair value through
pro t or loss – – – 33,500 –
Gains on derivatives – – – 1,338 –
Exchange losses on cash and short-term deposits – – – (94) –
Exchange losses on foreign currency loans – – – (502) –
Special dividend allocated to capital – – – 128 –
Repurchase of shares into treasury – – – (16,993) –
Performance fee allocated to capital – – – (2,767) –
Management fee and nance costs allocated to capital – – – (3,864) –
Overseas capital gains tax – – – (961) –
Dividend paid – – – – (11,036)
Retained revenue for the year – – – – 9,164
At 31 December 2024 114,656 11,646 29,182 292,247 22,889
1 The share premium is a non distributable reserve and represents the amount by which the fair value of the consideration received from shares issued exceeds the
nominal value of shares issued.
2 The capital redemption reserve represents the accumulated nominal value of shares repurchased for cancellation. This reserve is not distributable.
3 This is a distributable capital reserve arising from the cancellation of the share premium, and may be distributed as dividends or used to repurchase the Company’s
own shares.
4 Capital Reserves represent a realised and unrealised net amount and a positive balance may be used to purchase the companys own shares. This reserve may
include some holding gains on liquid investments (which may be deemed to be realised) and other amounts which are unrealised. An analysis has not been made
between those amounts that are realised (and may be distributed as dividends or used to repurchase the Company’s own shares) and those that are unrealised.
5 A positive balance on the revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares.
1 6. Net asset value per share 2025 2024
£’000 £’000
Total equity shareholders’ funds (£’000) 529,452 476,076
Shares in issue at the year end 93,524,454 93,524,454
Net asset value per share (pence) 566.11 509.04
Section 5: Financials
89 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
17. Reconciliation of net return before finance costs and taxation to net cash inflow from
operating activities 2025 2024
£’000 £’000
Total return on ordinary activities before nance costs and taxation 67,473 59,468
Less capital returns on ordinary activities before nance costs and taxation (57,073) (48,900)
(Increase)/decrease in prepayments and accrued income (69) 82
Decrease in other debtors 20 4
(Decrease)/increase in other creditors (2,622) 2,694
Special dividends allocated to capital – 128
Management fee allocated to capital (2,343) (2,382)
Performance fee allocated to capital – (2,767)
Overseas withholding tax deducted at source (1,345) (918)
Net cash in ow from operating activities 4,041 7,409
18. Analysis of changes in net debt Exchange
2024 Cash ow movements 2025
£’000 £’000 £’000 £’000
Cash and cash equivalents 1,743 772 (154) 2,361
Bank loan (22,357) 20,440 1,917 –
Overdraft at bank and derivative clearing houses (4,774) 4,774 – –
Net debt (25,388) 25,986 1,763 2,361
19. Transactions with the Manager
Under the terms of the Alternative Investment Fund Manager Agreement, the Manager is entitled to receive management, secretarial
and performance fees. Details of the basis of these calculations are given in the Directors’ Report on page 57. If the Company invests in
funds managed or advised by the Manager, any fees earned by the Manager are rebated to the Company. The management fee
payable in respect of the year ended 31 December 2025 amounted to £3,124,000 (2024: £3,176,000) of which £830,000 (2024:
£799,000) was outstanding at the year end.
The performance fee payable in respect of the year amounted to £nil.(2024: £2,767,000).
The secretarial fee payable for the year amounted to £75,000 (2024: £75,000) of which £19,000 (2024: £19,000) was outstanding at the
year end.
No Director of the Company served as a Director of any company within the Schroder Group at any time during the year.
20. Related party transactions
Details of the remuneration payable to Directors are given in both note 5 and in the Directors’ Remuneration Report on page 67.
Details of Directors’ shareholdings are given in the Directors’ Remuneration Report on page 68. Details of transactions with the
Manager are given in note 19 above. There have been no other transactions with related parties during the year (2024: nil).
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
90
operating activities 2025 2024
£’000 £’000
Total return on ordinary activities before nance costs and taxation 67,473 59,468
Less capital returns on ordinary activities before nance costs and taxation (57,073) (48,900)
(Increase)/decrease in prepayments and accrued income (69) 82
Decrease in other debtors 20 4
(Decrease)/increase in other creditors (2,622) 2,694
Special dividends allocated to capital – 128
Management fee allocated to capital (2,343) (2,382)
Performance fee allocated to capital – (2,767)
Overseas withholding tax deducted at source (1,345) (918)
Net cash in ow from operating activities 4,041 7,409
18. Analysis of changes in net debt Exchange
2024 Cash ow movements 2025
£’000 £’000 £’000 £’000
Cash and cash equivalents 1,743 772 (154) 2,361
Bank loan (22,357) 20,440 1,917 –
Overdraft at bank and derivative clearing houses (4,774) 4,774 – –
Net debt (25,388) 25,986 1,763 2,361
19. Transactions with the Manager
Under the terms of the Alternative Investment Fund Manager Agreement, the Manager is entitled to receive management, secretarial
and performance fees. Details of the basis of these calculations are given in the Directors’ Report on page 57. If the Company invests in
funds managed or advised by the Manager, any fees earned by the Manager are rebated to the Company. The management fee
payable in respect of the year ended 31 December 2025 amounted to £3,124,000 (2024: £3,176,000) of which £830,000 (2024:
£799,000) was outstanding at the year end.
The performance fee payable in respect of the year amounted to £nil.(2024: £2,767,000).
The secretarial fee payable for the year amounted to £75,000 (2024: £75,000) of which £19,000 (2024: £19,000) was outstanding at the
year end.
No Director of the Company served as a Director of any company within the Schroder Group at any time during the year.
20. Related party transactions
Details of the remuneration payable to Directors are given in both note 5 and in the Directors’ Remuneration Report on page 67.
Details of Directors’ shareholdings are given in the Directors’ Remuneration Report on page 68. Details of transactions with the
Manager are given in note 19 above. There have been no other transactions with related parties during the year (2024: nil).
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
90
21. Disclosures regarding financial instruments measured at fair value
The Company’s nancial instruments within the scope of FRS 102 that are held at fair value include its investment portfolio and
derivative nancial instruments.
FRS 102 requires nancial instruments to be categorised into a hierarchy consisting of the three levels below.
Level 1 – valued using unadjusted quoted prices in active markets for identical assets.
Level 2 – valued using inputs, other than quoted prices included within Level 1, that are directly or indirectly observable (based on
market data such as quoted prices for similar instruments in active markets, broker quoted prices, or yield curves).
Level 3 – valued using inputs that are unobservable.
Details of the Company’s policy for valuing investments and derivative instruments are given in note 1(b) on page 81.
The following table sets out the fair value measurements using the FRS 102 hierarchy at 31 December:
2025
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Financial instruments held at fair value through pro t or loss
Equity investments 530,041 – – 530,041
Derivative nancial instruments – index put options 137 – – 137
Derivative nancial instruments - contracts for di erence - CFD assets – 353 – 353
Derivative nancial instruments - contracts for di erence - CFD liabilities – (513) – (513)
Total 530,178 (160) – 530,018
2024
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Financial instruments held at fair value through pro t or loss
Equity investments 506,932 – – 506,932
Derivative nancial instruments – index put options 505 – – 505
Derivative nancial instruments - forward currency contracts – 458 – 458
Derivative nancial instruments - contracts for di erence - CFD assets – 30 – 30
Derivative nancial instruments - contracts for di erence - CFD liabilities – (254) – (254)
Total 507,437 234 – 507,671
22. Financial instruments’ exposure to risk and risk management policies
In pursuing its objective, the Company is exposed to a variety of nancial risks including market risk (comprising currency risk, interest
rate risk and market price risk), liquidity risk and credit risk. The Directors’ policy for managing these risks is set out below.
The process for managing risk is unchanged from the previous year. The Company’s nancial instruments may comprise:
investments in equities and equity related securities which are held in accordance with the Company’s investment objective; • short-term debtors, creditors and cash arising directly from its operations; • a multicurrency credit facility with The Bank of Nova Scotia, the purpose of which is to assist in nancing the Company’s operations; • index put options, which are used to protect the capital value of the portfolio; • forward currency contracts, the purpose of which is to manage the currency risk arising from the Company’s investment activities; and • contract for di erences, which are used for the purpose to gain further exposure to Asian markets. •
(a) Market risk
Market risk comprises three elements – foreign currency risk, interest rate risk and market price risk. Information to enable an
evaluation of the nature and extent of these three elements of market risk is given in parts (i) to (iii) of this note, together with sensitivity
analyses where appropriate.
(i) Foreign currency risk
The majority of the Company’s assets, liabilities and income are denominated in currencies other than sterling, which is the Company’s
functional currency and the presentational currency of the nancial statements. As a result, movements in exchange rates will a ect the
sterling value of those items.
Section 5: Financials
91 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
The Company’s nancial instruments within the scope of FRS 102 that are held at fair value include its investment portfolio and
derivative nancial instruments.
FRS 102 requires nancial instruments to be categorised into a hierarchy consisting of the three levels below.
Level 1 – valued using unadjusted quoted prices in active markets for identical assets.
Level 2 – valued using inputs, other than quoted prices included within Level 1, that are directly or indirectly observable (based on
market data such as quoted prices for similar instruments in active markets, broker quoted prices, or yield curves).
Level 3 – valued using inputs that are unobservable.
Details of the Company’s policy for valuing investments and derivative instruments are given in note 1(b) on page 81.
The following table sets out the fair value measurements using the FRS 102 hierarchy at 31 December:
2025
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Financial instruments held at fair value through pro t or loss
Equity investments 530,041 – – 530,041
Derivative nancial instruments – index put options 137 – – 137
Derivative nancial instruments - contracts for di erence - CFD assets – 353 – 353
Derivative nancial instruments - contracts for di erence - CFD liabilities – (513) – (513)
Total 530,178 (160) – 530,018
2024
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Financial instruments held at fair value through pro t or loss
Equity investments 506,932 – – 506,932
Derivative nancial instruments – index put options 505 – – 505
Derivative nancial instruments - forward currency contracts – 458 – 458
Derivative nancial instruments - contracts for di erence - CFD assets – 30 – 30
Derivative nancial instruments - contracts for di erence - CFD liabilities – (254) – (254)
Total 507,437 234 – 507,671
22. Financial instruments’ exposure to risk and risk management policies
In pursuing its objective, the Company is exposed to a variety of nancial risks including market risk (comprising currency risk, interest
rate risk and market price risk), liquidity risk and credit risk. The Directors’ policy for managing these risks is set out below.
The process for managing risk is unchanged from the previous year. The Company’s nancial instruments may comprise:
investments in equities and equity related securities which are held in accordance with the Company’s investment objective; • short-term debtors, creditors and cash arising directly from its operations; • a multicurrency credit facility with The Bank of Nova Scotia, the purpose of which is to assist in nancing the Company’s operations; • index put options, which are used to protect the capital value of the portfolio; • forward currency contracts, the purpose of which is to manage the currency risk arising from the Company’s investment activities; and • contract for di erences, which are used for the purpose to gain further exposure to Asian markets. •
(a) Market risk
Market risk comprises three elements – foreign currency risk, interest rate risk and market price risk. Information to enable an
evaluation of the nature and extent of these three elements of market risk is given in parts (i) to (iii) of this note, together with sensitivity
analyses where appropriate.
(i) Foreign currency risk
The majority of the Company’s assets, liabilities and income are denominated in currencies other than sterling, which is the Company’s
functional currency and the presentational currency of the nancial statements. As a result, movements in exchange rates will a ect the
sterling value of those items.
Section 5: Financials
91 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Management of foreign currency risk
The Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board. The Board has
authorised the use of derivative instruments to hedge currency exposure as part of the investment strategy to protect the capital value
of the portfolio, or for e cient portfolio management.
Foreign currency exposure
The fair value of the Company’s monetary items that have foreign currency exposure at 31 December are shown below. The Company’s
investments, CFDs and index put options (which are not monetary items) have been included separately in the analysis so as to show
the overall level of exposure.
South
Hong Kong US Taiwan Korean Indian Singapore Chinese Australian Vietnam
Dollars Dollars Dollars Won Rupees Dollars Yuan Dollars Dong Other Total
2025 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Current assets 1 148 233 99 5 1 – 236 28 29 780
Current liabilities (8) (25) – – – – – – – – (33)
Foreign currency exposure on
net monetary items (7) 123 233 99 5 1 – 236 28 29 747
Investments held at fair value
through pro t or loss 1 112,770 17,909 140,078 41,214 49,731 50,376 17,553 70,029 4,549 25,832 530,041
Derivative instruments held at
fair value through pro t or loss
– index put options and CFDs 1 111 (376) – – – – – – – – (265)
Total net foreign currency
exposure 112,874 17,656 140,311 41,313 49,736 50,377 17,553 70,265 4,577 25,861 530,523
South
Hong Kong US Taiwan Korean Indian Singapore Chinese Australian Vietnam
Dollars Dollars Dollars Won Rupees Dollars Yuan Dollars Dong Other Total
2024 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Current assets 11 1,495 207 69 2 1 – 8 224 1 2,018
Derivative instruments held at
fair value through pro t or loss
– forward currency contracts – 22,216 – – – – (21,758) – – – 458
Current liabilities – (23,107) – – – – – – – – (23,107)
Foreign currency exposure on
net monetary items 11 604 207 69 2 1 (21,758) 8 224 1 (20,631)
Investments held at fair value
through pro t or loss 1 96,283 15,860 122,237 16,603 53,292 38,670 8,136 79,614 13,376 62,861 506,932
Derivative instruments held at
fair value through pro t or loss
– index put options and CFDs 1 – 322 – – – – – – – 322
Total net foreign currency
exposure 96,294 16,786 122,444 16,672 53,294 38,671 (13,622) 79,622 13,600 62,862 486,623
1 Excluding any stocks or CFDs priced in sterling.
The above year end amounts are broadly representative of the exposure to foreign currency risk during the current and prior year.
Foreign currency sensitivity
The following tables illustrate the sensitivity of net pro t for the year and net assets with regard to the Company’s monetary nancial
assets and nancial liabilities and exchange rates. The sensitivity analysis is based on the Company’s monetary currency nancial
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 Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
92
The Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board. The Board has
authorised the use of derivative instruments to hedge currency exposure as part of the investment strategy to protect the capital value
of the portfolio, or for e cient portfolio management.
Foreign currency exposure
The fair value of the Company’s monetary items that have foreign currency exposure at 31 December are shown below. The Company’s
investments, CFDs and index put options (which are not monetary items) have been included separately in the analysis so as to show
the overall level of exposure.
South
Hong Kong US Taiwan Korean Indian Singapore Chinese Australian Vietnam
Dollars Dollars Dollars Won Rupees Dollars Yuan Dollars Dong Other Total
2025 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Current assets 1 148 233 99 5 1 – 236 28 29 780
Current liabilities (8) (25) – – – – – – – – (33)
Foreign currency exposure on
net monetary items (7) 123 233 99 5 1 – 236 28 29 747
Investments held at fair value
through pro t or loss 1 112,770 17,909 140,078 41,214 49,731 50,376 17,553 70,029 4,549 25,832 530,041
Derivative instruments held at
fair value through pro t or loss
– index put options and CFDs 1 111 (376) – – – – – – – – (265)
Total net foreign currency
exposure 112,874 17,656 140,311 41,313 49,736 50,377 17,553 70,265 4,577 25,861 530,523
South
Hong Kong US Taiwan Korean Indian Singapore Chinese Australian Vietnam
Dollars Dollars Dollars Won Rupees Dollars Yuan Dollars Dong Other Total
2024 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Current assets 11 1,495 207 69 2 1 – 8 224 1 2,018
Derivative instruments held at
fair value through pro t or loss
– forward currency contracts – 22,216 – – – – (21,758) – – – 458
Current liabilities – (23,107) – – – – – – – – (23,107)
Foreign currency exposure on
net monetary items 11 604 207 69 2 1 (21,758) 8 224 1 (20,631)
Investments held at fair value
through pro t or loss 1 96,283 15,860 122,237 16,603 53,292 38,670 8,136 79,614 13,376 62,861 506,932
Derivative instruments held at
fair value through pro t or loss
– index put options and CFDs 1 – 322 – – – – – – – 322
Total net foreign currency
exposure 96,294 16,786 122,444 16,672 53,294 38,671 (13,622) 79,622 13,600 62,862 486,623
1 Excluding any stocks or CFDs priced in sterling.
The above year end amounts are broadly representative of the exposure to foreign currency risk during the current and prior year.
Foreign currency sensitivity
The following tables illustrate the sensitivity of net pro t for the year and net assets with regard to the Company’s monetary nancial
assets and nancial liabilities and exchange rates. The sensitivity analysis is based on the Company’s monetary currency nancial
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 Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
92
If sterling had weakened by 10% this would have had the following e ect:
2025 2024
Income Statement – return after taxation £’000 £’000
Revenue return 1,068 1,090
Capital return (44) (2,199)
Total return after taxation 1,024 (1,109)
Net assets 1,024 (1,109)
Conversely if sterling had strengthened by 10% this would have had the following e ect:
2025 2024
Income Statement – return after taxation £’000 £’000
Revenue return (1,068) (1,090)
Capital return 44 2,199
Total return after taxation (1,024) 1,109
Net assets (1,024) 1,109
In the opinion of the Directors, the above sensitivity analysis with respect to monetary nancial assets and liabilities is broadly
representative of the whole of the current and comparative year. The sensitivity with regard to the Company’s investments, and any
derivative instruments held, to changes in foreign currency exchange rates is subsumed into market price risk sensitivity below.
(ii) Interest rate risk
Interest rate movements may a ect the level of income receivable on cash deposits and the interest payable on variable rate
borrowings when rates are re-set.
Management of interest rate risk
Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The Company may use gearing to enhance
performance (including the use of CFDs). The Board would not expect net gearing to exceed 30% where gearing is de ned as
borrowings including CFDs used for investment purposes, less cash, expressed as a percentage of net assets.
Interest rate exposure
The possible e ects on cash ows that could arise as a result of changes in interest rates are taken into account when the Company
draws on its overdraft facility or its credit facility.
The exposure of nancial assets and nancial liabilities to oating interest rates, giving cash ow interest rate risk when rates are re-set,
is shown below:
2025 2024
Exposure to oating interest rates £’000 £’000
Cash and cash equivalents 2,361 1,743
Bank overdraft – (4,534)
Amounts held at derivative clearing houses and brokers – (240)
Creditors: amounts falling due within one year:
Bank loan – (22,357)
Total exposure 2,361 (25,388)
Interest receivable on cash balances, or paid on overdrafts, is at a margin below or above the applicable risk free reference rates,
respectively (2024: same).
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 uctuated. The maximum and minimum net debt balances during the year are as follows:
2025 2024
£’000 £’000
Maximum debit interest rate exposure during the year – net debt (22,015) (40,790)
Minimum debit interest rate exposure during the year – net debt 3,982 (21,641)
Section 5: Financials
93 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
2025 2024
Income Statement – return after taxation £’000 £’000
Revenue return 1,068 1,090
Capital return (44) (2,199)
Total return after taxation 1,024 (1,109)
Net assets 1,024 (1,109)
Conversely if sterling had strengthened by 10% this would have had the following e ect:
2025 2024
Income Statement – return after taxation £’000 £’000
Revenue return (1,068) (1,090)
Capital return 44 2,199
Total return after taxation (1,024) 1,109
Net assets (1,024) 1,109
In the opinion of the Directors, the above sensitivity analysis with respect to monetary nancial assets and liabilities is broadly
representative of the whole of the current and comparative year. The sensitivity with regard to the Company’s investments, and any
derivative instruments held, to changes in foreign currency exchange rates is subsumed into market price risk sensitivity below.
(ii) Interest rate risk
Interest rate movements may a ect the level of income receivable on cash deposits and the interest payable on variable rate
borrowings when rates are re-set.
Management of interest rate risk
Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The Company may use gearing to enhance
performance (including the use of CFDs). The Board would not expect net gearing to exceed 30% where gearing is de ned as
borrowings including CFDs used for investment purposes, less cash, expressed as a percentage of net assets.
Interest rate exposure
The possible e ects on cash ows that could arise as a result of changes in interest rates are taken into account when the Company
draws on its overdraft facility or its credit facility.
The exposure of nancial assets and nancial liabilities to oating interest rates, giving cash ow interest rate risk when rates are re-set,
is shown below:
2025 2024
Exposure to oating interest rates £’000 £’000
Cash and cash equivalents 2,361 1,743
Bank overdraft – (4,534)
Amounts held at derivative clearing houses and brokers – (240)
Creditors: amounts falling due within one year:
Bank loan – (22,357)
Total exposure 2,361 (25,388)
Interest receivable on cash balances, or paid on overdrafts, is at a margin below or above the applicable risk free reference rates,
respectively (2024: same).
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 uctuated. The maximum and minimum net debt balances during the year are as follows:
2025 2024
£’000 £’000
Maximum debit interest rate exposure during the year – net debt (22,015) (40,790)
Minimum debit interest rate exposure during the year – net debt 3,982 (21,641)
Section 5: Financials
93 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Interest rate sensitivity
The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 1.5% (2024: 1.5%) increase or
decrease in interest rates in regards to the Company’s monetary nancial assets and nancial liabilities. This level of change is
considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the
Company’s monetary nancial instruments held at the balance sheet date with all other variables held constant.
2025 2025 2024 2024
1.5% 1.5% 1.5% 1.5%
increase decrease increase decrease
in rate in rate in rate in rate
Income Statement – return after taxation £’000 £’000 £’000 £’000
Revenue return 35 (35) (76) 76
Capital return – – (305) 305
Total return after taxation 35 (35) (381) 381
Net assets 35 (35) (381) 381
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 uctuations in the level of cash balances and drawings on the credit facility.
(iii) Market price risk
Market price risk includes changes in market prices, other than those arising from interest rate risk, which may a ect the value of
equity investments.
Management of market price risk
The Board meets on at least four occasions each year to consider the asset allocation of the portfolio and the risk associated with
particular countries and industry sectors. The Board has authorised the Manager to enter derivative transactions as a means of seeking
capital preservation, subject to limits on the percentage of the portfolio hedged and the duration of derivatives used.
Market price risk exposure
The Company’s total exposure to changes in market prices at 31 December comprises the following investments:
2025 2024
£’000 £’000
Investments held at fair value through pro t or loss 530,041 506,932
Derivative nancial instruments held at fair value through pro t or loss:
Index put options 137 505
CFD (160) (224)
530,018 507,213
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 28 to 30. This shows that the portfolio mainly comprises investments
quoted on Asian stock markets, index put options and CFDs. Accordingly there is a concentration of exposure to that region.
However it should be noted that an investment may not be entirely exposed to the economic conditions in its country of classi cation.
Market price risk sensitivity
The following table illustrates the sensitivity of net return after taxation for the year and net assets to an increase or decrease of 10%
(2024: 10%) in the fair values of the Company’s investments. This level of change is considered to be a reasonable illustration based on
observation of current market conditions. The sensitivity analysis is based on the Company’s investments, adjusting for the hedging
e ect of the index put options and including the resulting e ect on the management fee, but with all other variables held constant. For
the purposes of the calculation, any performance fee is excluded.
The sensitivity analysis also takes account of the “beta coe cient” of the portfolio. This is a measure of the volatility of the portfolio
compared with the systemic risk of the entire market. As a result, the percentages in the table below represent a 7.40% (2024: 8.67%)
increase in fair value and a 7.40% (2024: 8.67%) decrease in fair value.
2025 2025 2024 2024
10% 10% 10% 10%
increase decrease increase decrease
in fair value in fair value in fair value in fair value
Income Statement – return after taxation £’000 £’000 £’000 £’000
Revenue return (64) 64 (71) 71
Capital return 39,019 (39,019) 43,719 (43,719)
38,955 (38,955) 43,648 (43,648)
Percentage change in net asset value 7.40 (7.40) 8.67 (8.67)
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
94
The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 1.5% (2024: 1.5%) increase or
decrease in interest rates in regards to the Company’s monetary nancial assets and nancial liabilities. This level of change is
considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the
Company’s monetary nancial instruments held at the balance sheet date with all other variables held constant.
2025 2025 2024 2024
1.5% 1.5% 1.5% 1.5%
increase decrease increase decrease
in rate in rate in rate in rate
Income Statement – return after taxation £’000 £’000 £’000 £’000
Revenue return 35 (35) (76) 76
Capital return – – (305) 305
Total return after taxation 35 (35) (381) 381
Net assets 35 (35) (381) 381
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 uctuations in the level of cash balances and drawings on the credit facility.
(iii) Market price risk
Market price risk includes changes in market prices, other than those arising from interest rate risk, which may a ect the value of
equity investments.
Management of market price risk
The Board meets on at least four occasions each year to consider the asset allocation of the portfolio and the risk associated with
particular countries and industry sectors. The Board has authorised the Manager to enter derivative transactions as a means of seeking
capital preservation, subject to limits on the percentage of the portfolio hedged and the duration of derivatives used.
Market price risk exposure
The Company’s total exposure to changes in market prices at 31 December comprises the following investments:
2025 2024
£’000 £’000
Investments held at fair value through pro t or loss 530,041 506,932
Derivative nancial instruments held at fair value through pro t or loss:
Index put options 137 505
CFD (160) (224)
530,018 507,213
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 28 to 30. This shows that the portfolio mainly comprises investments
quoted on Asian stock markets, index put options and CFDs. Accordingly there is a concentration of exposure to that region.
However it should be noted that an investment may not be entirely exposed to the economic conditions in its country of classi cation.
Market price risk sensitivity
The following table illustrates the sensitivity of net return after taxation for the year and net assets to an increase or decrease of 10%
(2024: 10%) in the fair values of the Company’s investments. This level of change is considered to be a reasonable illustration based on
observation of current market conditions. The sensitivity analysis is based on the Company’s investments, adjusting for the hedging
e ect of the index put options and including the resulting e ect on the management fee, but with all other variables held constant. For
the purposes of the calculation, any performance fee is excluded.
The sensitivity analysis also takes account of the “beta coe cient” of the portfolio. This is a measure of the volatility of the portfolio
compared with the systemic risk of the entire market. As a result, the percentages in the table below represent a 7.40% (2024: 8.67%)
increase in fair value and a 7.40% (2024: 8.67%) decrease in fair value.
2025 2025 2024 2024
10% 10% 10% 10%
increase decrease increase decrease
in fair value in fair value in fair value in fair value
Income Statement – return after taxation £’000 £’000 £’000 £’000
Revenue return (64) 64 (71) 71
Capital return 39,019 (39,019) 43,719 (43,719)
38,955 (38,955) 43,648 (43,648)
Percentage change in net asset value 7.40 (7.40) 8.67 (8.67)
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
94
(b) Liquidity risk
This is the risk that the Company will encounter di culty in meeting its obligations associated with nancial liabilities that are settled by
delivering cash or another nancial asset.
Management of the risk
Liquidity risk is not signi cant as the Company’s assets comprise mainly readily realisable securities, which can be sold to meet funding
requirements if necessary. Short-term exibility is achieved through the use of overdraft and credit facilities.
Liquidity risk exposure
Contractual maturities of nancial liabilities, based on the earliest date on which payment can be required are as follows:
2025 2024
Three Three
months months
or less or less
£’000 £’000
Creditors: amounts falling due within one year
Bank loan – including interest – 22,459
Bank overdraft – 4,534
Amounts held at derivative clearing houses and brokers – 240
Derivative nancial instruments held at fair value through pro t or loss – CFD liabilities 513 254
Amounts payable on settlement of derivatives – 743
Repurchase of ordinary shares into treasury awaiting settlement – 255
Other creditors and accruals 1,318 3,961
1,831 32,446
(c) Credit risk
Credit risk is the risk that the failure of the counterparty to a transaction to discharge its obligations under that transaction could result
in loss to the Company.
Management of credit risk
This risk is not signi cant and is managed as follows:
Portfolio dealing
The Company invests almost entirely in markets that operate a “Delivery Versus Payment” settlement process which mitigates the risk
of losing the principal of a trade during settlement. This approach extends to various investment instruments, while CFDs are settled
through cash payments based on the di erence between the opening and closing prices, rather than physical delivery of the
underlying assets. The Manager continuously monitors dealing activity to ensure best execution, which involves measuring various
indicators including the quality of trade settlement and incidence of failed trades. Counterparties must be pre-approved by the
Manager’s credit committee.
In relation to CFDs, counterparty risk is limited to the pro t on a contract, not the notional value.
Exposure to the custodian
The custodian of the Company’s assets is J.P. Morgan Securities LLC which has long-term credit ratings of AA- with Fitch and Aa3 with
Moody’s.
The Company’s investments are held in accounts which are segregated from the custodian’s own trading assets. If the custodian were
to become insolvent, the Company’s right of ownership of its investments is clear and they are therefore protected. However the
Company’s cash balances are all deposited with the custodian as banker and held on the custodian’s balance sheet. Accordingly, in
accordance with usual banking practice, the Company will rank as a general creditor to the custodian in respect of cash balances.
Credit risk exposure
The amounts shown in the balance sheet under debtors, derivative nancial instruments held at fair value through pro t or loss and
cash and cash equivalents represent the maximum exposure to credit risk at the current and comparative year ends. No debtors are
past their due date and none have been provided for. There has been no stock lending during the year, or prior year.
(d) Fair values of nancial assets and nancial liabilities
All nancial assets and liabilities are either carried in the balance sheet at fair value, or the balance sheet amount is a reasonable
approximation of fair value.
Section 5: Financials
95 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
This is the risk that the Company will encounter di culty in meeting its obligations associated with nancial liabilities that are settled by
delivering cash or another nancial asset.
Management of the risk
Liquidity risk is not signi cant as the Company’s assets comprise mainly readily realisable securities, which can be sold to meet funding
requirements if necessary. Short-term exibility is achieved through the use of overdraft and credit facilities.
Liquidity risk exposure
Contractual maturities of nancial liabilities, based on the earliest date on which payment can be required are as follows:
2025 2024
Three Three
months months
or less or less
£’000 £’000
Creditors: amounts falling due within one year
Bank loan – including interest – 22,459
Bank overdraft – 4,534
Amounts held at derivative clearing houses and brokers – 240
Derivative nancial instruments held at fair value through pro t or loss – CFD liabilities 513 254
Amounts payable on settlement of derivatives – 743
Repurchase of ordinary shares into treasury awaiting settlement – 255
Other creditors and accruals 1,318 3,961
1,831 32,446
(c) Credit risk
Credit risk is the risk that the failure of the counterparty to a transaction to discharge its obligations under that transaction could result
in loss to the Company.
Management of credit risk
This risk is not signi cant and is managed as follows:
Portfolio dealing
The Company invests almost entirely in markets that operate a “Delivery Versus Payment” settlement process which mitigates the risk
of losing the principal of a trade during settlement. This approach extends to various investment instruments, while CFDs are settled
through cash payments based on the di erence between the opening and closing prices, rather than physical delivery of the
underlying assets. The Manager continuously monitors dealing activity to ensure best execution, which involves measuring various
indicators including the quality of trade settlement and incidence of failed trades. Counterparties must be pre-approved by the
Manager’s credit committee.
In relation to CFDs, counterparty risk is limited to the pro t on a contract, not the notional value.
Exposure to the custodian
The custodian of the Company’s assets is J.P. Morgan Securities LLC which has long-term credit ratings of AA- with Fitch and Aa3 with
Moody’s.
The Company’s investments are held in accounts which are segregated from the custodian’s own trading assets. If the custodian were
to become insolvent, the Company’s right of ownership of its investments is clear and they are therefore protected. However the
Company’s cash balances are all deposited with the custodian as banker and held on the custodian’s balance sheet. Accordingly, in
accordance with usual banking practice, the Company will rank as a general creditor to the custodian in respect of cash balances.
Credit risk exposure
The amounts shown in the balance sheet under debtors, derivative nancial instruments held at fair value through pro t or loss and
cash and cash equivalents represent the maximum exposure to credit risk at the current and comparative year ends. No debtors are
past their due date and none have been provided for. There has been no stock lending during the year, or prior year.
(d) Fair values of nancial assets and nancial liabilities
All nancial assets and liabilities are either carried in the balance sheet at fair value, or the balance sheet amount is a reasonable
approximation of fair value.
Section 5: Financials
95 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
23. Capital management policies and procedures
The Company’s capital is represented by its net assets and borrowings, which are managed to achieve the Company’s investment
objective, as set out on page 39.
The Company’s capital management objectives are to ensure that it will continue as a going concern and to maximise the capital return
to shareholders through an appropriate level of gearing. The Company has credit facilities in place which may be used to maximise the
return to shareholders through an appropriate level of gearing. The Company uses CFDs as a cost e ective and exible form of
borrowing.
The Board’s policy is to limit the level of net gearing to 30%, where net gearing is de ned as borrowings including CFDs used for
investment purposes, less cash, expressed as a percentage of net assets.
2025 2024
£’000 £’000
Borrowings used for investment purposes, less cash (£,000) 1 29,352 40,695
Net assets (£,000) 529,452 476,076
Net gearing (%) 5.5 8.5
1 Included within borrowings for 2025 is an amount of £31,713,000 being the total market exposure on the CFDs held at the year end (2024: £15,307,000).
The Board, with the assistance of the Manager, monitors and reviews the broad structure of the Company’s capital on an ongoing basis.
This review includes:
the planned level of gearing, which takes into account the Manager’s views on the market; • the need to buy back the Company’s own shares for cancellation or to hold in treasury, which takes into account the share price • discount;
the opportunities for issues of new shares or to reissue shares out of treasury; and • the amount of dividend to be paid, in excess of that which is required to be distributed. •
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
96
The Company’s capital is represented by its net assets and borrowings, which are managed to achieve the Company’s investment
objective, as set out on page 39.
The Company’s capital management objectives are to ensure that it will continue as a going concern and to maximise the capital return
to shareholders through an appropriate level of gearing. The Company has credit facilities in place which may be used to maximise the
return to shareholders through an appropriate level of gearing. The Company uses CFDs as a cost e ective and exible form of
borrowing.
The Board’s policy is to limit the level of net gearing to 30%, where net gearing is de ned as borrowings including CFDs used for
investment purposes, less cash, expressed as a percentage of net assets.
2025 2024
£’000 £’000
Borrowings used for investment purposes, less cash (£,000) 1 29,352 40,695
Net assets (£,000) 529,452 476,076
Net gearing (%) 5.5 8.5
1 Included within borrowings for 2025 is an amount of £31,713,000 being the total market exposure on the CFDs held at the year end (2024: £15,307,000).
The Board, with the assistance of the Manager, monitors and reviews the broad structure of the Company’s capital on an ongoing basis.
This review includes:
the planned level of gearing, which takes into account the Manager’s views on the market; • the need to buy back the Company’s own shares for cancellation or to hold in treasury, which takes into account the share price • discount;
the opportunities for issues of new shares or to reissue shares out of treasury; and • the amount of dividend to be paid, in excess of that which is required to be distributed. •
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 5: Financials
96
Section 5: Financials
97 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Gadi Sagar Temple, Rajasthan, India
97 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Gadi Sagar Temple, Rajasthan, India
View from Victoria Peak, Hong Kong
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
98
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
98
Section 6: Other Information (Unaudited)
Annual General Meeting – Recommendations 100
Notice of Annual General Meeting 101
Explanatory Notes to the Notice of Meeting 103
Alternative Performance Measures and Glossary 105
Information about the Company 107
Risk Disclosures 109
99 99 99 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
99
Annual General Meeting – Recommendations 100
Notice of Annual General Meeting 101
Explanatory Notes to the Notice of Meeting 103
Alternative Performance Measures and Glossary 105
Information about the Company 107
Risk Disclosures 109
99 99 99 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
99
Annual General Meeting – Recommendations
The Annual General Meeting (“AGM”) of the Company will be held
on Thursday, 23 April 2026 at 12.00 p.m. The formal Notice of
Meeting is set out on page 101.
The following information is important and requires your
immediate attention. If you are in any doubt about the action you
should take, you should consult an independent nancial adviser,
authorised under the Financial Services and Markets Act 2000.
If you have sold or transferred all of your ordinary shares in the
Company, please forward this document with its accompanying
form of proxy at once to the purchaser or transferee, or to the
stockbroker, bank, or other agent through whom the sale or
transfer was e ected, for onward transmission to the purchaser
or transferee.
Ordinary business
Resolutions 1 to 11 are all ordinary resolutions. Resolution 1 is
a required resolution. Resolution 2 invites shareholders to
approve the nal dividend. Resolution 3 concerns the Director’s
Remuneration Policy, which, in accordance with legislation in
relation to remuneration, is required to be put to shareholders for
approval every three years. Shareholders are asked to approve
the policy as set out in the Directors Remuneration report on
page 66 of the Annual Report. The vote on this resolution is
binding. Resolution 4 concerns the Directors’ Remuneration
Report, on pages 66 to 68.
Resolutions 5 to 8 invite shareholders to elect, or re-elect, each of
the Directors for another year, following the recommendations of
the Nomination Committee, set out on page 65 (the Directors’
biographies are set out on pages 54 and 55). Resolutions 9 and
10 concern the re-appointment and remuneration of the
Company’s auditor, discussed in the Audit and Risk Committee
Report on pages 60 to 62.
Special business
Resolution 11: Directors’ authority to allot shares (ordinary
resolution) and resolution 12: power to disapply
pre-emption rights (special resolution)
The Directors are seeking authority to allot a limited number of
unissued ordinary shares for cash without rst o ering them to
existing shareholders in accordance with statutory pre-emption
procedures.
Appropriate resolutions will be proposed at the forthcoming AGM
and are set out in full in the Notice of AGM. An ordinary resolution
will be proposed to authorise the Directors to allot shares up to
a maximum aggregate nominal amount of £467,622 (being 10%
of the issued share capital (excluding any shares held in treasury)
as at 18 March 2026).
A special resolution will be proposed to authorise the Directors to
allot shares up to a maximum aggregate nominal amount of
£467,622 (being 10% of the issued share capital as at 18 March
2026 on a non pre-emptive basis. This authority includes shares
that the Company sells or transfers that have been held in
treasury. The Directors do not intend to allot ordinary shares or
sell treasury shares, on a non-pre-emptive basis, pursuant to this
authority other than to take advantage of opportunities in the
market as they arise and only if they believe it to be advantageous
to the Company as a whole. Shares issued or treasury shares
reissued, under this authority, will be at a price that is equal to or
greater than the Company’s NAV per share, plus any applicable
costs, as at the latest practicable date before the allotment of
such shares.
If approved, both of these authorities will expire at the conclusion
of the AGM in 2027 unless renewed, varied, or revoked earlier.
Resolution 13: authority to make market purchases of the
Company’s own shares (special resolution)
At the AGM held on 24 April 2025, the Company was granted
authority to make market purchases of up to 14,019,315 ordinary
shares of 5p each for cancellation or holding in treasury. No
shares have been bought back under this authority and the
Company therefore has remaining authority to purchase up to
14,019,315 ordinary shares. This authority will expire at the
forthcoming AGM.
The Directors believe it is in the best interests of the Company
and its shareholders to have a general authority for the Company
to buy back its ordinary shares in the market as they keep under
review the share price discount to NAV. A special resolution will be
proposed at the forthcoming AGM to give the Company authority
to make market purchases of up to 14.99% of the ordinary shares
in issue as at 18 March 2026 (excluding treasury shares). The
Directors will exercise this authority to buy back shares only when
the share price is at a discount to the Company’s NAV and only if
the Directors consider that any purchase would be for the bene t
of the Company and its shareholders, taking into account relevant
factors and circumstances at the time. Any shares so purchased
would be cancelled or held in treasury for potential reissue.
If renewed, this authority will lapse at the conclusion of the AGM
in 2027 unless renewed, varied or revoked earlier.
Resolution 14: notice period for general meetings (special
resolution)
Resolution 14 set out in the Notice of AGM is a special resolution
and will, if passed, allow the Company to hold general meetings
(other than annual general meetings) on a minimum notice
period of 14 clear days, rather than 21 clear days as required by
the Companies Act 2006. The approval will be e ective until the
Company’s next AGM to be held in 2027. The Directors will only
call general meetings on 14 clear days’ notice when they consider
it to be in the best interests of the Company’s shareholders and
will only do so if the Company o ers facilities for all shareholders
to vote by electronic means and when the matter needs to be
dealt with expediently.
Recommendations
The Board considers that the resolutions relating to the above
items of business are in the best interests of shareholders as
a whole. Accordingly, the Board unanimously recommends to
shareholders that they vote in favour of the resolutions to be
proposed at the forthcoming AGM, as they intend to do in respect
of their own bene cial holdings.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
100
The Annual General Meeting (“AGM”) of the Company will be held
on Thursday, 23 April 2026 at 12.00 p.m. The formal Notice of
Meeting is set out on page 101.
The following information is important and requires your
immediate attention. If you are in any doubt about the action you
should take, you should consult an independent nancial adviser,
authorised under the Financial Services and Markets Act 2000.
If you have sold or transferred all of your ordinary shares in the
Company, please forward this document with its accompanying
form of proxy at once to the purchaser or transferee, or to the
stockbroker, bank, or other agent through whom the sale or
transfer was e ected, for onward transmission to the purchaser
or transferee.
Ordinary business
Resolutions 1 to 11 are all ordinary resolutions. Resolution 1 is
a required resolution. Resolution 2 invites shareholders to
approve the nal dividend. Resolution 3 concerns the Director’s
Remuneration Policy, which, in accordance with legislation in
relation to remuneration, is required to be put to shareholders for
approval every three years. Shareholders are asked to approve
the policy as set out in the Directors Remuneration report on
page 66 of the Annual Report. The vote on this resolution is
binding. Resolution 4 concerns the Directors’ Remuneration
Report, on pages 66 to 68.
Resolutions 5 to 8 invite shareholders to elect, or re-elect, each of
the Directors for another year, following the recommendations of
the Nomination Committee, set out on page 65 (the Directors’
biographies are set out on pages 54 and 55). Resolutions 9 and
10 concern the re-appointment and remuneration of the
Company’s auditor, discussed in the Audit and Risk Committee
Report on pages 60 to 62.
Special business
Resolution 11: Directors’ authority to allot shares (ordinary
resolution) and resolution 12: power to disapply
pre-emption rights (special resolution)
The Directors are seeking authority to allot a limited number of
unissued ordinary shares for cash without rst o ering them to
existing shareholders in accordance with statutory pre-emption
procedures.
Appropriate resolutions will be proposed at the forthcoming AGM
and are set out in full in the Notice of AGM. An ordinary resolution
will be proposed to authorise the Directors to allot shares up to
a maximum aggregate nominal amount of £467,622 (being 10%
of the issued share capital (excluding any shares held in treasury)
as at 18 March 2026).
A special resolution will be proposed to authorise the Directors to
allot shares up to a maximum aggregate nominal amount of
£467,622 (being 10% of the issued share capital as at 18 March
2026 on a non pre-emptive basis. This authority includes shares
that the Company sells or transfers that have been held in
treasury. The Directors do not intend to allot ordinary shares or
sell treasury shares, on a non-pre-emptive basis, pursuant to this
authority other than to take advantage of opportunities in the
market as they arise and only if they believe it to be advantageous
to the Company as a whole. Shares issued or treasury shares
reissued, under this authority, will be at a price that is equal to or
greater than the Company’s NAV per share, plus any applicable
costs, as at the latest practicable date before the allotment of
such shares.
If approved, both of these authorities will expire at the conclusion
of the AGM in 2027 unless renewed, varied, or revoked earlier.
Resolution 13: authority to make market purchases of the
Company’s own shares (special resolution)
At the AGM held on 24 April 2025, the Company was granted
authority to make market purchases of up to 14,019,315 ordinary
shares of 5p each for cancellation or holding in treasury. No
shares have been bought back under this authority and the
Company therefore has remaining authority to purchase up to
14,019,315 ordinary shares. This authority will expire at the
forthcoming AGM.
The Directors believe it is in the best interests of the Company
and its shareholders to have a general authority for the Company
to buy back its ordinary shares in the market as they keep under
review the share price discount to NAV. A special resolution will be
proposed at the forthcoming AGM to give the Company authority
to make market purchases of up to 14.99% of the ordinary shares
in issue as at 18 March 2026 (excluding treasury shares). The
Directors will exercise this authority to buy back shares only when
the share price is at a discount to the Company’s NAV and only if
the Directors consider that any purchase would be for the bene t
of the Company and its shareholders, taking into account relevant
factors and circumstances at the time. Any shares so purchased
would be cancelled or held in treasury for potential reissue.
If renewed, this authority will lapse at the conclusion of the AGM
in 2027 unless renewed, varied or revoked earlier.
Resolution 14: notice period for general meetings (special
resolution)
Resolution 14 set out in the Notice of AGM is a special resolution
and will, if passed, allow the Company to hold general meetings
(other than annual general meetings) on a minimum notice
period of 14 clear days, rather than 21 clear days as required by
the Companies Act 2006. The approval will be e ective until the
Company’s next AGM to be held in 2027. The Directors will only
call general meetings on 14 clear days’ notice when they consider
it to be in the best interests of the Company’s shareholders and
will only do so if the Company o ers facilities for all shareholders
to vote by electronic means and when the matter needs to be
dealt with expediently.
Recommendations
The Board considers that the resolutions relating to the above
items of business are in the best interests of shareholders as
a whole. Accordingly, the Board unanimously recommends to
shareholders that they vote in favour of the resolutions to be
proposed at the forthcoming AGM, as they intend to do in respect
of their own bene cial holdings.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
100
Notice of Annual General Meeting
Notice is hereby given that the thirty-eighth Annual General
Meeting of Schroder Asian Total Return Investment Company
plc will be held on Thursday, 23 April 2026 at 12.00 p.m. at
1 London Wall Place, London EC2Y 5AU to consider the
following resolutions, of which resolutions 1 to 11 will be
proposed as ordinary resolutions, and resolutions 12, 13 and
14 will be proposed as special resolutions:
Ordinary Business
1. To receive the Directors’ Report and the audited nancial
statements for the year ended 31 December 2025.
2. To approve a nal dividend of 11.50 pence per share for the
year ended 31 December 2025.
3. To approve the Directors’ Remuneration Policy.
4. To Approve the Director’s Remuneration Report for the year
ended 31 December 2025.
5. To approve the re-election of Sarah MacAulay as a Director of
the Company.
6. To approve the re-election of Andrew Cainey as a Director of
the Company.
7. To approve the re-election of Jasper Judd as a Director of the
Company.
8. To approve the re-election of Marion Sears as a Director of the
Company.
9. To re appoint Ernst & Young LLP as auditor of the Company.
10. To authorise the Directors to determine the remuneration of
Ernst & Young LLP as auditor of the Company.
Special Business
11. To consider, and if thought t, pass the following resolution as
an ordinary resolution:
“THAT in substitution for all existing authorities the Directors
be generally and unconditionally authorised pursuant to
section 551 of the Companies Act 2006 (the “Act”) to exercise
all the powers of the Company to allot relevant securities
(within the meaning of section 551 of the Act) up to an
aggregate nominal amount of £467,622 (being 10% of the
issued ordinary share capital at 18 March 2026) for a period
expiring (unless previously renewed, varied or revoked by the
Company in general meeting) at the conclusion of the Annual
General Meeting of the Company in 2027, but that the
Company may make an o er or agreement which would or
might require relevant securities to be allotted after expiry of
this authority and the Board may allot relevant securities in
pursuance of that o er or agreement.”
12. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT, subject to the passing of Resolution 11 set out above,
the Directors be and are hereby empowered, pursuant to
Section 571 of the Act, to allot equity securities (including any
shares held in treasury) (as de ned in section 560(1) of the
Act) pursuant to the authority given in accordance with
section 551 of the Act by the said Resolution 11 and/or where
such allotment constitutes an allotment of equity securities by
virtue of section 560(2) of the Act as if Section 561(1) of the
Act did not apply to any such allotment, provided that this
power shall be limited to the allotment of equity securities up
to an aggregate nominal amount of £467,622 (representing
10% of the aggregate nominal amount of the share capital in
issue at 18 March 2026); and where equity securities are
issued pursuant to this power they will only be issued at a
price which is equal or greater than the Company’s NAV per
share as at the latest practicable date before the allotment;
and provided that this power shall expire at the conclusion of
the next Annual General Meeting of the Company but so that
this power shall enable the Company to make o ers or
agreements before such expiry which would or might require
equity securities to be allotted after such expiry.”
13. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT the Company be and is hereby generally and
unconditionally authorised in accordance with Section 701 of
the Companies Act 2006 (the “Act”) to make market purchases
(within the meaning of Section 693 of the Act) of ordinary
shares of 5p each in the capital of the Company (“Share”) at
whatever discount the prevailing market price represents to
the prevailing net asset value per Share provided that:
(a) the maximum number of Shares which may be purchased
is 14,019,315, representing 14.99% of the Company’s
issued ordinary share capital as at 18 March 2026
(excluding treasury shares);
(b) the maximum price (exclusive of expenses) which may be
paid for a Share shall not exceed the higher of;
i) 105% of the average of the middle market quotations
for the Shares as taken from the London Stock
Exchange Daily O cial List for the ve business days
preceding the date of purchase; and
ii) the higher of the last independent bid and the
highest current independent bid on the London
Stock Exchange;
(c) the minimum price (exclusive of expenses) which may be
paid for a Share shall be 5p, being the nominal value per
Share;
(d) this authority hereby conferred shall expire at the
conclusion of the next Annual General Meeting of the
Company in 2027 (unless previously renewed, varied or
revoked by the Company prior to such date);
Section 6: Other Information (Unaudited)
101 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Notice is hereby given that the thirty-eighth Annual General
Meeting of Schroder Asian Total Return Investment Company
plc will be held on Thursday, 23 April 2026 at 12.00 p.m. at
1 London Wall Place, London EC2Y 5AU to consider the
following resolutions, of which resolutions 1 to 11 will be
proposed as ordinary resolutions, and resolutions 12, 13 and
14 will be proposed as special resolutions:
Ordinary Business
1. To receive the Directors’ Report and the audited nancial
statements for the year ended 31 December 2025.
2. To approve a nal dividend of 11.50 pence per share for the
year ended 31 December 2025.
3. To approve the Directors’ Remuneration Policy.
4. To Approve the Director’s Remuneration Report for the year
ended 31 December 2025.
5. To approve the re-election of Sarah MacAulay as a Director of
the Company.
6. To approve the re-election of Andrew Cainey as a Director of
the Company.
7. To approve the re-election of Jasper Judd as a Director of the
Company.
8. To approve the re-election of Marion Sears as a Director of the
Company.
9. To re appoint Ernst & Young LLP as auditor of the Company.
10. To authorise the Directors to determine the remuneration of
Ernst & Young LLP as auditor of the Company.
Special Business
11. To consider, and if thought t, pass the following resolution as
an ordinary resolution:
“THAT in substitution for all existing authorities the Directors
be generally and unconditionally authorised pursuant to
section 551 of the Companies Act 2006 (the “Act”) to exercise
all the powers of the Company to allot relevant securities
(within the meaning of section 551 of the Act) up to an
aggregate nominal amount of £467,622 (being 10% of the
issued ordinary share capital at 18 March 2026) for a period
expiring (unless previously renewed, varied or revoked by the
Company in general meeting) at the conclusion of the Annual
General Meeting of the Company in 2027, but that the
Company may make an o er or agreement which would or
might require relevant securities to be allotted after expiry of
this authority and the Board may allot relevant securities in
pursuance of that o er or agreement.”
12. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT, subject to the passing of Resolution 11 set out above,
the Directors be and are hereby empowered, pursuant to
Section 571 of the Act, to allot equity securities (including any
shares held in treasury) (as de ned in section 560(1) of the
Act) pursuant to the authority given in accordance with
section 551 of the Act by the said Resolution 11 and/or where
such allotment constitutes an allotment of equity securities by
virtue of section 560(2) of the Act as if Section 561(1) of the
Act did not apply to any such allotment, provided that this
power shall be limited to the allotment of equity securities up
to an aggregate nominal amount of £467,622 (representing
10% of the aggregate nominal amount of the share capital in
issue at 18 March 2026); and where equity securities are
issued pursuant to this power they will only be issued at a
price which is equal or greater than the Company’s NAV per
share as at the latest practicable date before the allotment;
and provided that this power shall expire at the conclusion of
the next Annual General Meeting of the Company but so that
this power shall enable the Company to make o ers or
agreements before such expiry which would or might require
equity securities to be allotted after such expiry.”
13. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT the Company be and is hereby generally and
unconditionally authorised in accordance with Section 701 of
the Companies Act 2006 (the “Act”) to make market purchases
(within the meaning of Section 693 of the Act) of ordinary
shares of 5p each in the capital of the Company (“Share”) at
whatever discount the prevailing market price represents to
the prevailing net asset value per Share provided that:
(a) the maximum number of Shares which may be purchased
is 14,019,315, representing 14.99% of the Company’s
issued ordinary share capital as at 18 March 2026
(excluding treasury shares);
(b) the maximum price (exclusive of expenses) which may be
paid for a Share shall not exceed the higher of;
i) 105% of the average of the middle market quotations
for the Shares as taken from the London Stock
Exchange Daily O cial List for the ve business days
preceding the date of purchase; and
ii) the higher of the last independent bid and the
highest current independent bid on the London
Stock Exchange;
(c) the minimum price (exclusive of expenses) which may be
paid for a Share shall be 5p, being the nominal value per
Share;
(d) this authority hereby conferred shall expire at the
conclusion of the next Annual General Meeting of the
Company in 2027 (unless previously renewed, varied or
revoked by the Company prior to such date);
Section 6: Other Information (Unaudited)
101 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
(e)
the Company may make a contract to purchase Shares
under the authority hereby conferred which will or may be
executed wholly or partly after the expiration of such
authority and may make a purchase of Shares pursuant to
any such contract; and
(f) any Shares so purchased will be cancelled or held in
treasury.”
14. To consider and, if thought t, to pass the following resolution
as a special resolution:
“That a general meeting, other than an Annual General
Meeting, may be called on not less than 14 clear days; notice.”
By order of the Board
For and on behalf of
Schroder Investment Management Limited
Company Secretary
18 March 2026
Registered O ce:
1 London Wall Place,
London EC2Y 5AU
Registered Number: 02153093
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
102
under the authority hereby conferred which will or may be
executed wholly or partly after the expiration of such
authority and may make a purchase of Shares pursuant to
any such contract; and
(f) any Shares so purchased will be cancelled or held in
treasury.”
14. To consider and, if thought t, to pass the following resolution
as a special resolution:
“That a general meeting, other than an Annual General
Meeting, may be called on not less than 14 clear days; notice.”
By order of the Board
For and on behalf of
Schroder Investment Management Limited
Company Secretary
18 March 2026
Registered O ce:
1 London Wall Place,
London EC2Y 5AU
Registered Number: 02153093
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
102
Explanatory Notes to the Notice of Meeting
1. Ordinary shareholders are entitled to attend, ask questions
and vote at the meeting and to appoint one or more proxies,
who need not be a shareholder, as their proxy to exercise all or
any of their rights to attend, speak and vote on their behalf at
the meeting.
A proxy form is attached. If you wish to appoint a person other
than the Chair as your proxy, please insert the name of your
chosen proxy holder in the space provided at the top of the
form. If the proxy is being appointed in relation to less than
your full voting entitlement, please enter in the box next to the
proxy holder’s name the number of shares in relation to which
they are authorised to act as your proxy. If left blank your
proxy will be deemed to be authorised in respect of your full
voting entitlement (or if this proxy form has been issued in
respect of a designated account for a shareholder, the full
voting entitlement for that designated account).
Additional proxy forms can be obtained by contacting the
Company’s registrars, Equiniti Limited, on 0800-032-0641.
If calling from outside the UK, please ensure the country code
is used, or you may photocopy the attached proxy form. Please
indicate in the box next to the proxy holder’s name the
number of shares in relation to which they are authorised to
act as your proxy. Please also indicate by ticking the box
provided if the proxy instruction is one of multiple instructions
being given.
Completion and return of a form of proxy will not preclude
a member from attending the Annual General Meeting and
voting in person.
On a vote by show of hands, every ordinary shareholder who is
present in person has one vote and every duly appointed
proxy who is present has one vote. On a poll vote, every
ordinary shareholder who is present in person or by way of
a proxy has one vote for every share of which he/she is
a holder. Voting will be by poll.
The “Vote Withheld” option on the proxy form is provided to
enable you to abstain on any particular resolution. However it
should be noted that a “Vote Withheld” is not a vote in law and
will not be counted in the calculation of the proportion of the
votes ‘For’ and ‘Against’ a resolution.
A proxy form must be signed and dated by the shareholder or
his or her attorney duly authorised in writing. In the case of
joint holdings, any one holder may sign this form. The vote of
the senior joint holder who tenders a vote, whether in person
or by proxy, will be accepted to the exclusion of the votes of
the other joint holder and for this purpose seniority will be
determined by the order in which the names appear on the
Register of Members in respect of the joint holding. To be
valid, proxy form(s) must be completed and returned to the
Company’s registrars, Equiniti Limited, Aspect House, Spencer
Road, Lancing, West Sussex BN99 6DA, in the enclosed
envelope together with any power of attorney or other
authority under which it is signed or a copy of such authority
certi ed notarially, to arrive no later than 48 hours before the
time xed for the meeting, or an adjourned meeting.
It is possible for you to submit your proxy votes online by
going to Equiniti’s Shareview website, www.shareview.co.uk,
and logging in to your Shareview Portfolio. Once you have
logged in, simply click ‘View’ on the ‘My Investments’ page and
then click on the link to vote and follow the on-screen
instructions. If you have not yet registered for a Shareview
Portfolio, go to www.shareview.co.uk and enter the requested
information. It is important that you register for a Shareview
Portfolio with enough time to complete the registration and
authentication processes. Please note that to be valid, your
proxy instructions must be received by Equiniti no later than
12.00 p.m on 21 April 2026. If you have any di culties with the
online voting, you should contact the shareholder helpline on
0800-032-0641.
If an ordinary shareholder submits more than one valid proxy
appointment, the appointment received last before the latest
time for receipt of proxies will take precedence.
Shareholders may not use any electronic address provided
either in this Notice of Annual General Meeting or any related
documents to communicate with the Company for any
purposes other than expressly stated.
Representatives of shareholders that are corporations will
have to produce evidence of their proper appointment when
attending the AGM.
2. Any person to whom this notice is sent who is a person
nominated under section 146 of the Companies Act 2006 to
enjoy information rights (a “Nominated Person”) may, under an
agreement between him or her and the shareholder by whom
he or she was nominated, have a right to be appointed (or to
have someone else appointed) as a proxy for the Annual
General Meeting. If a Nominated Person has no such proxy
appointment right or does not wish to exercise it, he or she
may, under any such agreement, have a right to give
instructions to the shareholder as to the exercise of voting
rights.
The statement of the rights of ordinary shareholders in
relation to the appointment of proxies in note 1 above does
not apply to Nominated Persons. The rights described in that
note can only be exercised by ordinary shareholders of the
Company.
3. Pursuant to Regulation 41 of the Uncerti cated Securities
Regulations 2001, the Company has speci ed that only those
shareholders registered in the Register of Members of the
Company at 6.30 p.m. on 21 April 2026, or 6.30 p.m. two days
prior to the date of an adjourned meeting, shall be entitled to
attend and vote at the meeting in respect of the number of
shares registered in their name at that time. Changes to the
Register of Members after 6.30 p.m. on 21 April 2026 shall be
disregarded in determining the right of any person to attend
and vote at the meeting.
4. CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service may
do so by using the procedures described in the CREST manual.
The CREST manual can be viewed at www.euroclear.com.
A CREST message appointing a proxy (a “CREST proxy
instruction”) regardless of whether it constitutes the
appointment of a proxy or an amendment to the instruction
previously given to a previously appointed proxy must, in order
to be valid, be transmitted so as to be received by the issuer’s
agent (ID RA19) by the latest time for receipt of proxy
appointments. If you are an institutional investor, you may be
able to appoint a proxy electronically via the Proxymity
platform, a process which has been agreed by the Company
and approved by the registrar. For further information
regarding Proxymity, please go to www.proxymity.io. Your
proxy must be lodged by 12.00 pm on 21 April 2026 in order
to be considered valid. Before you can appoint a proxy via this
process you will need to have agreed to Proxymity’s associated
Section 6: Other Information (Unaudited)
103 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
1. Ordinary shareholders are entitled to attend, ask questions
and vote at the meeting and to appoint one or more proxies,
who need not be a shareholder, as their proxy to exercise all or
any of their rights to attend, speak and vote on their behalf at
the meeting.
A proxy form is attached. If you wish to appoint a person other
than the Chair as your proxy, please insert the name of your
chosen proxy holder in the space provided at the top of the
form. If the proxy is being appointed in relation to less than
your full voting entitlement, please enter in the box next to the
proxy holder’s name the number of shares in relation to which
they are authorised to act as your proxy. If left blank your
proxy will be deemed to be authorised in respect of your full
voting entitlement (or if this proxy form has been issued in
respect of a designated account for a shareholder, the full
voting entitlement for that designated account).
Additional proxy forms can be obtained by contacting the
Company’s registrars, Equiniti Limited, on 0800-032-0641.
If calling from outside the UK, please ensure the country code
is used, or you may photocopy the attached proxy form. Please
indicate in the box next to the proxy holder’s name the
number of shares in relation to which they are authorised to
act as your proxy. Please also indicate by ticking the box
provided if the proxy instruction is one of multiple instructions
being given.
Completion and return of a form of proxy will not preclude
a member from attending the Annual General Meeting and
voting in person.
On a vote by show of hands, every ordinary shareholder who is
present in person has one vote and every duly appointed
proxy who is present has one vote. On a poll vote, every
ordinary shareholder who is present in person or by way of
a proxy has one vote for every share of which he/she is
a holder. Voting will be by poll.
The “Vote Withheld” option on the proxy form is provided to
enable you to abstain on any particular resolution. However it
should be noted that a “Vote Withheld” is not a vote in law and
will not be counted in the calculation of the proportion of the
votes ‘For’ and ‘Against’ a resolution.
A proxy form must be signed and dated by the shareholder or
his or her attorney duly authorised in writing. In the case of
joint holdings, any one holder may sign this form. The vote of
the senior joint holder who tenders a vote, whether in person
or by proxy, will be accepted to the exclusion of the votes of
the other joint holder and for this purpose seniority will be
determined by the order in which the names appear on the
Register of Members in respect of the joint holding. To be
valid, proxy form(s) must be completed and returned to the
Company’s registrars, Equiniti Limited, Aspect House, Spencer
Road, Lancing, West Sussex BN99 6DA, in the enclosed
envelope together with any power of attorney or other
authority under which it is signed or a copy of such authority
certi ed notarially, to arrive no later than 48 hours before the
time xed for the meeting, or an adjourned meeting.
It is possible for you to submit your proxy votes online by
going to Equiniti’s Shareview website, www.shareview.co.uk,
and logging in to your Shareview Portfolio. Once you have
logged in, simply click ‘View’ on the ‘My Investments’ page and
then click on the link to vote and follow the on-screen
instructions. If you have not yet registered for a Shareview
Portfolio, go to www.shareview.co.uk and enter the requested
information. It is important that you register for a Shareview
Portfolio with enough time to complete the registration and
authentication processes. Please note that to be valid, your
proxy instructions must be received by Equiniti no later than
12.00 p.m on 21 April 2026. If you have any di culties with the
online voting, you should contact the shareholder helpline on
0800-032-0641.
If an ordinary shareholder submits more than one valid proxy
appointment, the appointment received last before the latest
time for receipt of proxies will take precedence.
Shareholders may not use any electronic address provided
either in this Notice of Annual General Meeting or any related
documents to communicate with the Company for any
purposes other than expressly stated.
Representatives of shareholders that are corporations will
have to produce evidence of their proper appointment when
attending the AGM.
2. Any person to whom this notice is sent who is a person
nominated under section 146 of the Companies Act 2006 to
enjoy information rights (a “Nominated Person”) may, under an
agreement between him or her and the shareholder by whom
he or she was nominated, have a right to be appointed (or to
have someone else appointed) as a proxy for the Annual
General Meeting. If a Nominated Person has no such proxy
appointment right or does not wish to exercise it, he or she
may, under any such agreement, have a right to give
instructions to the shareholder as to the exercise of voting
rights.
The statement of the rights of ordinary shareholders in
relation to the appointment of proxies in note 1 above does
not apply to Nominated Persons. The rights described in that
note can only be exercised by ordinary shareholders of the
Company.
3. Pursuant to Regulation 41 of the Uncerti cated Securities
Regulations 2001, the Company has speci ed that only those
shareholders registered in the Register of Members of the
Company at 6.30 p.m. on 21 April 2026, or 6.30 p.m. two days
prior to the date of an adjourned meeting, shall be entitled to
attend and vote at the meeting in respect of the number of
shares registered in their name at that time. Changes to the
Register of Members after 6.30 p.m. on 21 April 2026 shall be
disregarded in determining the right of any person to attend
and vote at the meeting.
4. CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service may
do so by using the procedures described in the CREST manual.
The CREST manual can be viewed at www.euroclear.com.
A CREST message appointing a proxy (a “CREST proxy
instruction”) regardless of whether it constitutes the
appointment of a proxy or an amendment to the instruction
previously given to a previously appointed proxy must, in order
to be valid, be transmitted so as to be received by the issuer’s
agent (ID RA19) by the latest time for receipt of proxy
appointments. If you are an institutional investor, you may be
able to appoint a proxy electronically via the Proxymity
platform, a process which has been agreed by the Company
and approved by the registrar. For further information
regarding Proxymity, please go to www.proxymity.io. Your
proxy must be lodged by 12.00 pm on 21 April 2026 in order
to be considered valid. Before you can appoint a proxy via this
process you will need to have agreed to Proxymity’s associated
Section 6: Other Information (Unaudited)
103 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
terms and conditions. It is important that you read these
carefully as you will be bound by them, and they will govern
the electronic appointment of your proxy.
5. Copies of the terms of appointment of the non-executive
Directors and a statement of all transactions of each Director
and of their family interests in the shares of the Company, will
be available for inspection by any member of the Company at
the registered o ce of the Company during normal business
hours on any weekday (English public holidays excepted) and
at the Annual General Meeting by any attendee, for at least
15 minutes prior to, and during, the Annual General Meeting.
None of the Directors has a contract of service with the
Company.
6. The biographies of the Directors o ering themselves for
election are set out on pages 54 and 55 of the Company’s
Annual Report and Financial Statements for the year ended
31 December 2025.
7. As at 18 March 2026, 109,114,651 ordinary shares of 5 pence
each were in issue (of which 15,590,197 ordinary shares were
held in treasury). Therefore the total number of voting rights of
the Company as at 18 March 2026 was 93,524,454.
8. A copy of this Notice of Meeting, which includes details of
shareholder voting rights, together with any other information
as required under Section 311A of the Companies Act 2006,
is available on the Company’s web pages,
www.schroders.co.uk/satric.
9. Pursuant to Section 319A of the Companies Act 2006, the
Company must cause to be answered at the Annual General
Meeting any question relating to the business being dealt with
at the Annual General Meeting which is put by a member
attending the meeting, except in certain circumstances,
including if it is undesirable in the interests of the Company or
the good order of the meeting that the question be answered
or if to do so would involve the disclosure of con dential
information.
10.Members satisfying the thresholds in section 527 of the
Companies Act 2006 can require the Company to publish
a statement on its web pages setting out any matter relating to:
(a) the audit of the Company’s nancial statements (including
the auditor’s report and the conduct of the audit) that are
to be laid before the Meeting; or
(b) any circumstance connected with an auditor of the
Company ceasing to hold o ce since the last AGM, that
the members propose to raise at the Meeting. The
Company cannot require the members requesting the
publication to pay its expenses. Any statement placed on
the web pages must also be sent to the Company’s
auditors no later than the time it makes its statement
available on the website. The business which may be dealt
with at the meeting includes any statement that the
Company has been required to publish on its web pages.
11.The Company’s privacy policy is available on its web pages:
www.schroders.co.uk/satric. Shareholders can contact Equiniti
for details of how Equiniti processes their personal information
as part of the Annual General Meeting.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
104
carefully as you will be bound by them, and they will govern
the electronic appointment of your proxy.
5. Copies of the terms of appointment of the non-executive
Directors and a statement of all transactions of each Director
and of their family interests in the shares of the Company, will
be available for inspection by any member of the Company at
the registered o ce of the Company during normal business
hours on any weekday (English public holidays excepted) and
at the Annual General Meeting by any attendee, for at least
15 minutes prior to, and during, the Annual General Meeting.
None of the Directors has a contract of service with the
Company.
6. The biographies of the Directors o ering themselves for
election are set out on pages 54 and 55 of the Company’s
Annual Report and Financial Statements for the year ended
31 December 2025.
7. As at 18 March 2026, 109,114,651 ordinary shares of 5 pence
each were in issue (of which 15,590,197 ordinary shares were
held in treasury). Therefore the total number of voting rights of
the Company as at 18 March 2026 was 93,524,454.
8. A copy of this Notice of Meeting, which includes details of
shareholder voting rights, together with any other information
as required under Section 311A of the Companies Act 2006,
is available on the Company’s web pages,
www.schroders.co.uk/satric.
9. Pursuant to Section 319A of the Companies Act 2006, the
Company must cause to be answered at the Annual General
Meeting any question relating to the business being dealt with
at the Annual General Meeting which is put by a member
attending the meeting, except in certain circumstances,
including if it is undesirable in the interests of the Company or
the good order of the meeting that the question be answered
or if to do so would involve the disclosure of con dential
information.
10.Members satisfying the thresholds in section 527 of the
Companies Act 2006 can require the Company to publish
a statement on its web pages setting out any matter relating to:
(a) the audit of the Company’s nancial statements (including
the auditor’s report and the conduct of the audit) that are
to be laid before the Meeting; or
(b) any circumstance connected with an auditor of the
Company ceasing to hold o ce since the last AGM, that
the members propose to raise at the Meeting. The
Company cannot require the members requesting the
publication to pay its expenses. Any statement placed on
the web pages must also be sent to the Company’s
auditors no later than the time it makes its statement
available on the website. The business which may be dealt
with at the meeting includes any statement that the
Company has been required to publish on its web pages.
11.The Company’s privacy policy is available on its web pages:
www.schroders.co.uk/satric. Shareholders can contact Equiniti
for details of how Equiniti processes their personal information
as part of the Annual General Meeting.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
104
Alternative Performance Measures and Glossary
Net asset value (“NAV”) per share
The NAV per share of 566.11p (2024: 509.04p) represents the net assets attributable to equity shareholders of £529,452,000 (2024:
£476,076,000) divided by the number of shares in issue of 93,524,454 (2024: 93,524,454).
The change in the NAV amounted to +11.2% (2024: +10.4%) over the year. However, this performance measure excludes the positive
impact of dividends paid out by the Company during the year. When the dividend is factored into the calculation, the resulting
performance measure is termed the “total return”. Total return calculations and de nitions are given below.
Total return*
The combined e ect of any dividends paid, together with the rise or fall in the share price or NAV per share. Total return statistics
enable the investor to make performance comparisons between investment companies with di erent dividend policies. Any dividends
received by a shareholder are assumed to have been reinvested in either the assets of the Company at its NAV per share at the time
the shares were quoted ex-dividend (to calculate the NAV per share total return) or in additional shares of the Company (to calculate
the share price total return).
The NAV total return for the year ended 31 December 2025 is
calculated as follows:
Opening NAV at 31/12/24 509.04p
Closing NAV at 31/12/25 566.11p
NAV on
Dividend received XD date XD date Factor
11.50p 10/4/25 427.44p 1.0269
NAV total return, being the closing NAV,
multiplied by the factor, expressed as a
percentage increase in the opening NAV: +14.2%
The NAV total return for the year ended 31 December 2024 is
calculated as follows:
Opening NAV at 31/12/23 461.24p
Closing NAV at 31/12/24 509.04p
NAV on
Dividend received XD date XD date Factor
11.50p 11/4/24 482.24p 1.0238
NAV total return, being the closing NAV,
multiplied by the factor, expressed as a
percentage increase in the opening NAV: +13.0%
The share price total return for the year ended 31 December
2025 is calculated as follows:
Opening Share price at 31/12/24 483.00p
Opening Share price at 31/12/25 560.00p
Share
price on
Dividend received XD date XD date Factor
11.50p 10/4/25 402.00p 1.0286
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage
change in the opening share price: +19.3%
The share price total return for the year ended 31 December 2024
is calculated as follows:
Opening Share price at 31/12/23 440.00p
Opening Share price at 31/12/24 483.00p
Share
price on
Dividend received XD date XD date Factor
11.50p 11/4/24 444.00p 1.0259
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage
change in the opening share price: +12.6%
The terms and performance measures below are those commonly used by investment
companies to assess values, investment performance and operating costs. Numerical
calculations are given where relevant. Some of the financial measures below are classified
Alternative performance measures as defined by the European Securities and Markets
Authority. Under this definition, alternative performance measures include a financial measure
of historical financial performance or financial position, other than a financial measure defined
or specified in the applicable financial reporting framework. Alternative performance measures
have been marked with an *.
Section 6: Other Information (Unaudited)
105 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Net asset value (“NAV”) per share
The NAV per share of 566.11p (2024: 509.04p) represents the net assets attributable to equity shareholders of £529,452,000 (2024:
£476,076,000) divided by the number of shares in issue of 93,524,454 (2024: 93,524,454).
The change in the NAV amounted to +11.2% (2024: +10.4%) over the year. However, this performance measure excludes the positive
impact of dividends paid out by the Company during the year. When the dividend is factored into the calculation, the resulting
performance measure is termed the “total return”. Total return calculations and de nitions are given below.
Total return*
The combined e ect of any dividends paid, together with the rise or fall in the share price or NAV per share. Total return statistics
enable the investor to make performance comparisons between investment companies with di erent dividend policies. Any dividends
received by a shareholder are assumed to have been reinvested in either the assets of the Company at its NAV per share at the time
the shares were quoted ex-dividend (to calculate the NAV per share total return) or in additional shares of the Company (to calculate
the share price total return).
The NAV total return for the year ended 31 December 2025 is
calculated as follows:
Opening NAV at 31/12/24 509.04p
Closing NAV at 31/12/25 566.11p
NAV on
Dividend received XD date XD date Factor
11.50p 10/4/25 427.44p 1.0269
NAV total return, being the closing NAV,
multiplied by the factor, expressed as a
percentage increase in the opening NAV: +14.2%
The NAV total return for the year ended 31 December 2024 is
calculated as follows:
Opening NAV at 31/12/23 461.24p
Closing NAV at 31/12/24 509.04p
NAV on
Dividend received XD date XD date Factor
11.50p 11/4/24 482.24p 1.0238
NAV total return, being the closing NAV,
multiplied by the factor, expressed as a
percentage increase in the opening NAV: +13.0%
The share price total return for the year ended 31 December
2025 is calculated as follows:
Opening Share price at 31/12/24 483.00p
Opening Share price at 31/12/25 560.00p
Share
price on
Dividend received XD date XD date Factor
11.50p 10/4/25 402.00p 1.0286
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage
change in the opening share price: +19.3%
The share price total return for the year ended 31 December 2024
is calculated as follows:
Opening Share price at 31/12/23 440.00p
Opening Share price at 31/12/24 483.00p
Share
price on
Dividend received XD date XD date Factor
11.50p 11/4/24 444.00p 1.0259
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage
change in the opening share price: +12.6%
The terms and performance measures below are those commonly used by investment
companies to assess values, investment performance and operating costs. Numerical
calculations are given where relevant. Some of the financial measures below are classified
Alternative performance measures as defined by the European Securities and Markets
Authority. Under this definition, alternative performance measures include a financial measure
of historical financial performance or financial position, other than a financial measure defined
or specified in the applicable financial reporting framework. Alternative performance measures
have been marked with an *.
Section 6: Other Information (Unaudited)
105 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Reference Index
This is the measure against which the Company compares its
performance. With e ect from 15 March 2013, “the Reference
Index” has been the MSCI Asia Paci c ex-Japan Index (with net
income reinvested), sterling adjusted. Prior to that date it was the
MSCI AC Asia Paci c ex-Japan Index (with gross income
reinvested), sterling adjusted.
31 December
2025 2024
MSCI AC Asia Paci c Ex-Japan Index (with net
income reinvested), sterling adjusted. (the
“Reference Index”): 20.6% 12.1%
Source: Morningstar.
Discount/Premium*
The amount by which the share price of an investment trust is
lower (discount) or higher (premium) than the NAV per share.
If the shares are trading at a discount, investors would be paying
less than the value attributable to the shares by reference to the
underlying assets. A premium or discount is generally the
consequence of supply and demand for the shares on the stock
market. The discount or premium is expressed as a percentage of
the NAV per share. The discount at the year end amounted to
1.1% (2024: 5.1%), as the closing share price at 560.00p
(2024:483.00p) was 1.1% (2024: 5.1%) lower than the closing NAV
of 566.11p (2024: 509.04p).
Contract for Difference (CFD)
A nancial derivative between a buyer and a seller, which speci es
that the buyer is required to pay the seller the di erence between
the asset’s current value and its value at the time the contract was
initiated. CFDs enable the Company to bene t from price
uctuations without actually owning the underlying assets and is
an alternative to borrowing.
Gearing*
The net gearing percentage re ects the amount of borrowings
which the Company has drawn down and invested in the market.
This gure is indicative of the extra amount by which
shareholders’ funds would move if the Company’s investments
were to rise or fall. This represents borrowings including CFDs
used for investment purposes, less cash, expressed as a
percentage of net assets. If the gure so calculated is negative,
this is shown as a “Net cash” position. The net gearing gure at
the year end is calculated as follows:
2025 2024
Bank Loan – 22,357
CFD Portfolio Exposure 31,713 15,307
Less: Cash and Cash Equivalents (2,361) 3,031
Borrowings used for investment
purposes, less cash (£’000) 29,352 40,695
Net assets (£’000) 529,452 476,076
Net gearing (%) 5.5 8.5
Ongoing charges*
Ongoing charges is a measure of the ongoing operating costs of
the Company. It is calculated in accordance with the AIC’s
recommended methodology and represents the management fee
and all other operating expenses excluding nance costs,
transactions costs and any performance fee payable, expressed
as a percentage of the average daily net asset values during the
year, as follows:
2025 2024
Management fee and all other operating
expenses excluding nance costs, transaction
costs and any performance fee payable
(£’000) 3,849 4,201
Average daily net asset values during the year
(£’000) 481,198 464,355
Ongoing Charges Ratio (%) 0.80 0.90
Leverage*
For the purpose of the UK AIFM Directive, leverage is any method
which increases the Company’s exposure to nancial risk,
including the borrowing of cash and the use of derivatives. It is
expressed as the ratio of the Company’s exposure to its NAV and
is required to be calculated both on a “Gross” and a
“Commitment” method. Under the Gross method, exposure
represents the sum of the absolute values of all positions, so as to
give an indication of overall exposure. Under the Commitment
method, exposure is calculated in a similar way, but after netting
o hedges which satisfy certain strict criteria.
The Company’s leverage policy and details of its leverage ratio
calculation and exposure limits as required by the AIFMD are
published on the Company’s web pages and within this report.
The Company is also required to periodically publish its actual
leverage exposures. As at 31 December 2025 these were:
% of net asset value
Maximum Actual
Gross method 250.00 104.40
Commitment method 200.00 104.50
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
106
This is the measure against which the Company compares its
performance. With e ect from 15 March 2013, “the Reference
Index” has been the MSCI Asia Paci c ex-Japan Index (with net
income reinvested), sterling adjusted. Prior to that date it was the
MSCI AC Asia Paci c ex-Japan Index (with gross income
reinvested), sterling adjusted.
31 December
2025 2024
MSCI AC Asia Paci c Ex-Japan Index (with net
income reinvested), sterling adjusted. (the
“Reference Index”): 20.6% 12.1%
Source: Morningstar.
Discount/Premium*
The amount by which the share price of an investment trust is
lower (discount) or higher (premium) than the NAV per share.
If the shares are trading at a discount, investors would be paying
less than the value attributable to the shares by reference to the
underlying assets. A premium or discount is generally the
consequence of supply and demand for the shares on the stock
market. The discount or premium is expressed as a percentage of
the NAV per share. The discount at the year end amounted to
1.1% (2024: 5.1%), as the closing share price at 560.00p
(2024:483.00p) was 1.1% (2024: 5.1%) lower than the closing NAV
of 566.11p (2024: 509.04p).
Contract for Difference (CFD)
A nancial derivative between a buyer and a seller, which speci es
that the buyer is required to pay the seller the di erence between
the asset’s current value and its value at the time the contract was
initiated. CFDs enable the Company to bene t from price
uctuations without actually owning the underlying assets and is
an alternative to borrowing.
Gearing*
The net gearing percentage re ects the amount of borrowings
which the Company has drawn down and invested in the market.
This gure is indicative of the extra amount by which
shareholders’ funds would move if the Company’s investments
were to rise or fall. This represents borrowings including CFDs
used for investment purposes, less cash, expressed as a
percentage of net assets. If the gure so calculated is negative,
this is shown as a “Net cash” position. The net gearing gure at
the year end is calculated as follows:
2025 2024
Bank Loan – 22,357
CFD Portfolio Exposure 31,713 15,307
Less: Cash and Cash Equivalents (2,361) 3,031
Borrowings used for investment
purposes, less cash (£’000) 29,352 40,695
Net assets (£’000) 529,452 476,076
Net gearing (%) 5.5 8.5
Ongoing charges*
Ongoing charges is a measure of the ongoing operating costs of
the Company. It is calculated in accordance with the AIC’s
recommended methodology and represents the management fee
and all other operating expenses excluding nance costs,
transactions costs and any performance fee payable, expressed
as a percentage of the average daily net asset values during the
year, as follows:
2025 2024
Management fee and all other operating
expenses excluding nance costs, transaction
costs and any performance fee payable
(£’000) 3,849 4,201
Average daily net asset values during the year
(£’000) 481,198 464,355
Ongoing Charges Ratio (%) 0.80 0.90
Leverage*
For the purpose of the UK AIFM Directive, leverage is any method
which increases the Company’s exposure to nancial risk,
including the borrowing of cash and the use of derivatives. It is
expressed as the ratio of the Company’s exposure to its NAV and
is required to be calculated both on a “Gross” and a
“Commitment” method. Under the Gross method, exposure
represents the sum of the absolute values of all positions, so as to
give an indication of overall exposure. Under the Commitment
method, exposure is calculated in a similar way, but after netting
o hedges which satisfy certain strict criteria.
The Company’s leverage policy and details of its leverage ratio
calculation and exposure limits as required by the AIFMD are
published on the Company’s web pages and within this report.
The Company is also required to periodically publish its actual
leverage exposures. As at 31 December 2025 these were:
% of net asset value
Maximum Actual
Gross method 250.00 104.40
Commitment method 200.00 104.50
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
106
Information about the Company
Web pages and share price information
The Company has dedicated web pages, which may be found at
www.schroders.co.uk/satric. The web pages are the Company’s
primary method of electronic communication with shareholders.
They contain details of the Company’s ordinary share price and
copies of the Annual Report and Financial Statements and other
documents published by the Company as well as information on
the Directors, terms of reference of Committees and other
governance arrangements. In addition, the web pages contain
links to announcements made by the Company to the market and
Schroders’ website.
The Company releases its NAV per share on both a cum and
ex-income basis to the market on a daily basis.
Share price information may also be found in the Financial Times
and on the Company’s web pages.
The Association of Investment Companies
The Company is a member of The Association of Investment
Companies. Further information on the Association can be found
on its website, www.theaic.co.uk.
Individual Savings Account (ISA) status
The Company’s shares are eligible for stocks and shares ISAs.
Non-Mainstream Pooled Investments status
The Company currently conducts its a airs so that its shares can
be recommended by independent nancial advisers (IFAs) to
ordinary retail investors in accordance with the FCA’s rules in
relation to non-mainstream investment products and intends to
continue to do so for the foreseeable future. The Company’s
shares are excluded from the FCA’s restrictions which apply to
non-mainstream investment products because they are shares in
an investment trust.
Financial calendar
Annual General Meeting April
Final dividend paid May
Half year results announced September
Financial year end 31 December
Annual results announced March
Alternative Investment Fund Managers
Directive (AIFMD) disclosures
The AIFM Directive, as transposed into the FCA Handbook in the
UK, requires that certain pre-investment information be made
available to investors in Alternative Investment Funds (such as the
Company) and also that certain regular and periodic disclosures
are made. This information and these disclosures may be found
either below, elsewhere in this Annual Report, or in the Company’s
AIFM Directive information disclosure document published on the
Company’s web pages.
Illiquid assets
As at the date of this report, none of the Company’s assets are
subject to special arrangements arising from their illiquid nature.
Remuneration disclosures
Quantitative remuneration disclosures to be made in this annual
report in accordance with FCA Handbook rule FUND3.3.5 may be
found in the Company’s AIFMD information disclosure document
published on the Company’s web pages.
Publication of Key Information Document
(KID) by the AIFM
Pursuant to the Packaged Retail and Insurance Based Investment
Products Regulation, the Manager, as the Company’s AIFM, is
required to publish a short KID on the Company. KIDs are
designed to provide certain prescribed information to retail
investors, including details of potential returns under di erent
performance scenarios and a risk/reward indicator. The
Company’s KID is available on its web pages.
Dividends
Paying dividends into a bank or building society account helps
reduce the risk of fraud and will provide you with quicker access
to your funds than payment by cheque.
Applications for an electronic mandate can be made by contacting
the registrar, Equiniti.
This is the most secure and e cient method of payment and
ensures that you receive any dividends promptly.
If you do not have a UK bank or building society account, please
contact Equiniti for details of their overseas payment service.
Further information can be found at www.shareview.co.uk,
including how to register with shareview Portfolio and manage
your shareholding online.
How to invest
There are a number of ways to easily invest in the Company. The
Manager has set these out at www.schroders.com/invest-in-a-
trust/.
Complaints
The Company has adopted a policy on complaints and other
shareholder communications which ensures that shareholder
complaints and communications addressed to the Company
Secretary, the Chair or the Board are, in each case, considered by
the Chair and the Board.
Section 6: Other Information (Unaudited)
107 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Web pages and share price information
The Company has dedicated web pages, which may be found at
www.schroders.co.uk/satric. The web pages are the Company’s
primary method of electronic communication with shareholders.
They contain details of the Company’s ordinary share price and
copies of the Annual Report and Financial Statements and other
documents published by the Company as well as information on
the Directors, terms of reference of Committees and other
governance arrangements. In addition, the web pages contain
links to announcements made by the Company to the market and
Schroders’ website.
The Company releases its NAV per share on both a cum and
ex-income basis to the market on a daily basis.
Share price information may also be found in the Financial Times
and on the Company’s web pages.
The Association of Investment Companies
The Company is a member of The Association of Investment
Companies. Further information on the Association can be found
on its website, www.theaic.co.uk.
Individual Savings Account (ISA) status
The Company’s shares are eligible for stocks and shares ISAs.
Non-Mainstream Pooled Investments status
The Company currently conducts its a airs so that its shares can
be recommended by independent nancial advisers (IFAs) to
ordinary retail investors in accordance with the FCA’s rules in
relation to non-mainstream investment products and intends to
continue to do so for the foreseeable future. The Company’s
shares are excluded from the FCA’s restrictions which apply to
non-mainstream investment products because they are shares in
an investment trust.
Financial calendar
Annual General Meeting April
Final dividend paid May
Half year results announced September
Financial year end 31 December
Annual results announced March
Alternative Investment Fund Managers
Directive (AIFMD) disclosures
The AIFM Directive, as transposed into the FCA Handbook in the
UK, requires that certain pre-investment information be made
available to investors in Alternative Investment Funds (such as the
Company) and also that certain regular and periodic disclosures
are made. This information and these disclosures may be found
either below, elsewhere in this Annual Report, or in the Company’s
AIFM Directive information disclosure document published on the
Company’s web pages.
Illiquid assets
As at the date of this report, none of the Company’s assets are
subject to special arrangements arising from their illiquid nature.
Remuneration disclosures
Quantitative remuneration disclosures to be made in this annual
report in accordance with FCA Handbook rule FUND3.3.5 may be
found in the Company’s AIFMD information disclosure document
published on the Company’s web pages.
Publication of Key Information Document
(KID) by the AIFM
Pursuant to the Packaged Retail and Insurance Based Investment
Products Regulation, the Manager, as the Company’s AIFM, is
required to publish a short KID on the Company. KIDs are
designed to provide certain prescribed information to retail
investors, including details of potential returns under di erent
performance scenarios and a risk/reward indicator. The
Company’s KID is available on its web pages.
Dividends
Paying dividends into a bank or building society account helps
reduce the risk of fraud and will provide you with quicker access
to your funds than payment by cheque.
Applications for an electronic mandate can be made by contacting
the registrar, Equiniti.
This is the most secure and e cient method of payment and
ensures that you receive any dividends promptly.
If you do not have a UK bank or building society account, please
contact Equiniti for details of their overseas payment service.
Further information can be found at www.shareview.co.uk,
including how to register with shareview Portfolio and manage
your shareholding online.
How to invest
There are a number of ways to easily invest in the Company. The
Manager has set these out at www.schroders.com/invest-in-a-
trust/.
Complaints
The Company has adopted a policy on complaints and other
shareholder communications which ensures that shareholder
complaints and communications addressed to the Company
Secretary, the Chair or the Board are, in each case, considered by
the Chair and the Board.
Section 6: Other Information (Unaudited)
107 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Directors
Sarah MacAulay (Chair)
Andrew Cainey
Jasper Judd
Marion Sears
Registered O ce
1 London Wall Place
London EC2Y 5AU
Advisers
Alternative Investment Fund Manager (the “Manager” or
“AIFM”)
Schroder Unit Trusts Limited
1 London Wall Place
London EC2Y 5AU
Investment Manager and Company Secretary
Schroder Investment Management Limited
1 London Wall Place
London EC2Y 5AU
Telephone: 020 7658 6000
AMCompanySecretary@Schroders.com
Depositary and custodian
J.P. Morgan Europe Limited
25 Bank Street
London E14 5JP
Lending bank
The Bank of Nova Scotia, London Branch
201 Bishopsgate
6th Floor
London EC2M 3NS
Corporate broker
Winter ood Securities Limited
Riverbank House
2 Swan Lane
London EC4R 3GA
Independent auditor
Ernst & Young LLP
3rd Floor
144 Morrison Street
Edinburgh EH3 8EB
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Shareholder Helpline: 0800-032-0641*
Website: www.shareview.co.uk
*Calls to this number are free of charge from UK landlines.
Communications with shareholders are mailed to the address
held on the register. Any noti cations and enquiries relating to
shareholdings, including a change of address or other
amendment should be directed to Equiniti Limited at the above
address and telephone number above.
Other information
Company number 02153093.
Shareholder enquiries
General enquiries about the Company should be addressed to
the Company Secretary at the address set out above.
Dealing Codes
ISIN: GB0008710799
SEDOL 0871079
Ticker: ATR
Global Intermediary Identi cation Number (GIIN)
TRPJG6.99999.SL.826
Legal Entity Identi er (LEI)
549300TQNNGZ0JHO2L78
Privacy notice
The Company’s privacy notice is available on its web pages.
Warning to shareholders
Companies are aware that their shareholders have received unsolicited telephone calls or correspondence concerning
investment matters. These are typically from overseas-based ‘brokers’ who target UK shareholders, o ering to sell them what
often turn out to be worthless or high risk shares or investments. These operations are commonly known as ‘boiler rooms’.
These ‘brokers’ can be very persistent and extremely persuasive. Shareholders are advised to be wary of any unsolicited advice,
o ers to buy shares at a discount or o ers of free company reports.
If you receive any unsolicited investment advice:
Make sure you get the correct name of the person and organisation •
Check that they are properly authorised by the FCA before getting involved by visiting register.fca.org.uk •
Report the matter to the FCA by calling 0800 111 6768 or visiting fca.org.uk/consumers/report-scam-unauthorised- rm •
Do not deal with any rm that you are unsure about •
If you deal with an unauthorised rm, you will not be eligible to receive payment under the Financial Services Compensation
Scheme.
The FCA provides a list of unauthorised rms of which it is aware, which can be accessed at
fca.org.uk/consumers/unauthorised rmsindividualslist.
More detailed information on this or similar activity can be found on the FCA website at fca.org.uk/consumers/
protect-yourself-scams.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
108
Sarah MacAulay (Chair)
Andrew Cainey
Jasper Judd
Marion Sears
Registered O ce
1 London Wall Place
London EC2Y 5AU
Advisers
Alternative Investment Fund Manager (the “Manager” or
“AIFM”)
Schroder Unit Trusts Limited
1 London Wall Place
London EC2Y 5AU
Investment Manager and Company Secretary
Schroder Investment Management Limited
1 London Wall Place
London EC2Y 5AU
Telephone: 020 7658 6000
AMCompanySecretary@Schroders.com
Depositary and custodian
J.P. Morgan Europe Limited
25 Bank Street
London E14 5JP
Lending bank
The Bank of Nova Scotia, London Branch
201 Bishopsgate
6th Floor
London EC2M 3NS
Corporate broker
Winter ood Securities Limited
Riverbank House
2 Swan Lane
London EC4R 3GA
Independent auditor
Ernst & Young LLP
3rd Floor
144 Morrison Street
Edinburgh EH3 8EB
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Shareholder Helpline: 0800-032-0641*
Website: www.shareview.co.uk
*Calls to this number are free of charge from UK landlines.
Communications with shareholders are mailed to the address
held on the register. Any noti cations and enquiries relating to
shareholdings, including a change of address or other
amendment should be directed to Equiniti Limited at the above
address and telephone number above.
Other information
Company number 02153093.
Shareholder enquiries
General enquiries about the Company should be addressed to
the Company Secretary at the address set out above.
Dealing Codes
ISIN: GB0008710799
SEDOL 0871079
Ticker: ATR
Global Intermediary Identi cation Number (GIIN)
TRPJG6.99999.SL.826
Legal Entity Identi er (LEI)
549300TQNNGZ0JHO2L78
Privacy notice
The Company’s privacy notice is available on its web pages.
Warning to shareholders
Companies are aware that their shareholders have received unsolicited telephone calls or correspondence concerning
investment matters. These are typically from overseas-based ‘brokers’ who target UK shareholders, o ering to sell them what
often turn out to be worthless or high risk shares or investments. These operations are commonly known as ‘boiler rooms’.
These ‘brokers’ can be very persistent and extremely persuasive. Shareholders are advised to be wary of any unsolicited advice,
o ers to buy shares at a discount or o ers of free company reports.
If you receive any unsolicited investment advice:
Make sure you get the correct name of the person and organisation •
Check that they are properly authorised by the FCA before getting involved by visiting register.fca.org.uk •
Report the matter to the FCA by calling 0800 111 6768 or visiting fca.org.uk/consumers/report-scam-unauthorised- rm •
Do not deal with any rm that you are unsure about •
If you deal with an unauthorised rm, you will not be eligible to receive payment under the Financial Services Compensation
Scheme.
The FCA provides a list of unauthorised rms of which it is aware, which can be accessed at
fca.org.uk/consumers/unauthorised rmsindividualslist.
More detailed information on this or similar activity can be found on the FCA website at fca.org.uk/consumers/
protect-yourself-scams.
Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Section 6: Other Information (Unaudited)
108
Risk Disclosures
Concentration risk The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or
individual positions. This may result in large changes in the value of the Company, both up or down.
Counterparty risk The Company may have contractual agreements with counterparties. If a counterparty is unable to ful l their
obligations, the sum that they owe to the Company may be lost in part or in whole.
Currency risk If the Company’s investments are denominated in currencies di erent to the currency of the Company’s shares,
the Company may lose value as a result of movements in foreign exchange rates, otherwise known as currency
rates.
Derivatives risk Derivatives, which are nancial instruments deriving their value from an underlying asset, may be used to manage
the portfolio e ciently. A derivative may not perform as expected, may create losses greater than the cost of the
derivative and may result in losses to the Company.
Emerging markets Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty,
& frontier risk operational and liquidity risk than developed markets.
Gearing risk The Company may borrow money to make further investments, this is known as gearing. Gearing will increase
returns if the value of the investments purchased increase by more than the cost of borrowing, or reduce returns
if they fail to do so. In falling markets, the whole of the value in such investments could be lost, which would result
in losses to the Company.
Liquidity risk The price of shares in the Company is determined by market supply and demand, and this may be di erent to the
net asset value of the Company. In di cult market conditions, investors may not be able to nd a buyer for their
shares or may not get back the amount that they originally invested. Certain investments of the Company, in
particular the unquoted investments, may be less liquid and more di cult to value. In di cult market conditions,
the Company may not be able to sell an investment for full value or at all and this could a ect performance of the
Company.
Market risk The value of investments can go up and down and an investor may not get back the amount initially invested.
Operational risk Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to
the Company.
Performance risk Investment objectives express an intended result but there is no guarantee that such a result will be achieved.
Depending on market conditions and the macro economic environment, investment objectives may become more
di cult to achieve.
Share price risk The price of shares in the Company is determined by market supply and demand, and this may be di erent to the
net asset value of the Company. This means the price may be volatile, meaning the price may go up and down to
a greater extent in response to changes in demand.
Smaller companies Smaller companies generally carry greater liquidity risk than larger companies, meaning they are harder to buy
risk and sell, and they may also uctuate in value to a greater extent.
Section 6: Other Information (Unaudited)
109 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Concentration risk The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or
individual positions. This may result in large changes in the value of the Company, both up or down.
Counterparty risk The Company may have contractual agreements with counterparties. If a counterparty is unable to ful l their
obligations, the sum that they owe to the Company may be lost in part or in whole.
Currency risk If the Company’s investments are denominated in currencies di erent to the currency of the Company’s shares,
the Company may lose value as a result of movements in foreign exchange rates, otherwise known as currency
rates.
Derivatives risk Derivatives, which are nancial instruments deriving their value from an underlying asset, may be used to manage
the portfolio e ciently. A derivative may not perform as expected, may create losses greater than the cost of the
derivative and may result in losses to the Company.
Emerging markets Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty,
& frontier risk operational and liquidity risk than developed markets.
Gearing risk The Company may borrow money to make further investments, this is known as gearing. Gearing will increase
returns if the value of the investments purchased increase by more than the cost of borrowing, or reduce returns
if they fail to do so. In falling markets, the whole of the value in such investments could be lost, which would result
in losses to the Company.
Liquidity risk The price of shares in the Company is determined by market supply and demand, and this may be di erent to the
net asset value of the Company. In di cult market conditions, investors may not be able to nd a buyer for their
shares or may not get back the amount that they originally invested. Certain investments of the Company, in
particular the unquoted investments, may be less liquid and more di cult to value. In di cult market conditions,
the Company may not be able to sell an investment for full value or at all and this could a ect performance of the
Company.
Market risk The value of investments can go up and down and an investor may not get back the amount initially invested.
Operational risk Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to
the Company.
Performance risk Investment objectives express an intended result but there is no guarantee that such a result will be achieved.
Depending on market conditions and the macro economic environment, investment objectives may become more
di cult to achieve.
Share price risk The price of shares in the Company is determined by market supply and demand, and this may be di erent to the
net asset value of the Company. This means the price may be volatile, meaning the price may go up and down to
a greater extent in response to changes in demand.
Smaller companies Smaller companies generally carry greater liquidity risk than larger companies, meaning they are harder to buy
risk and sell, and they may also uctuate in value to a greater extent.
Section 6: Other Information (Unaudited)
109 Schroder Asian Total Return Investment Company plc Annual Report and Financial Statements 2025
Important information: This document is intended to be for information purposes only
and it is not intended as promotional material in any respect. The material is not
intended as an offer or solicitation for the purchase or sale of any nancial instrument.
The material is not intended to provide, and should not be relied on for, accounting,
legal or tax advice, or investment recommendations. Information herein is believed to
be reliable but Schroders does not warrant its completeness or accuracy. No
responsibility can be accepted for errors of fact or opinion. Reliance should not be
placed on the views and information in the document when taking individual
investment and/or strategic decisions. Past performance is not a reliable indicator of
future results, prices of shares and the income from them may fall as well as rise and
investors may not get back the amount originally invested. Schroders has expressed its
own views in this document and these may change. Issued by Schroder Investment
Management Limited, 1 London Wall Place, London EC2Y 5AU, which is authorised and
regulated by the Financial Conduct Authority. For your security, communications may
be taped or monitored.
Schroder Investment Management Limited
1 London Wall Place, London EC2Y 5AU, United Kingdom
T +44 (0) 20 7658 6000
@schroders
schroders.com
and it is not intended as promotional material in any respect. The material is not
intended as an offer or solicitation for the purchase or sale of any nancial instrument.
The material is not intended to provide, and should not be relied on for, accounting,
legal or tax advice, or investment recommendations. Information herein is believed to
be reliable but Schroders does not warrant its completeness or accuracy. No
responsibility can be accepted for errors of fact or opinion. Reliance should not be
placed on the views and information in the document when taking individual
investment and/or strategic decisions. Past performance is not a reliable indicator of
future results, prices of shares and the income from them may fall as well as rise and
investors may not get back the amount originally invested. Schroders has expressed its
own views in this document and these may change. Issued by Schroder Investment
Management Limited, 1 London Wall Place, London EC2Y 5AU, which is authorised and
regulated by the Financial Conduct Authority. For your security, communications may
be taped or monitored.
Schroder Investment Management Limited
1 London Wall Place, London EC2Y 5AU, United Kingdom
T +44 (0) 20 7658 6000
@schroders
schroders.com