Long Dated Corporate Bond Fund

Schroder Long Dated Corporate Bond Fund Interim Report and Accounts October 2017

Contents Schroder Long Dated Corporate Bond Fund Fund Information 1...............................................3 Investment objective and policy......................................3 Financial highlights................................................3 Fund information..................................................3 Ongoing charges figure.............................................3 Total purchases and sales...........................................3 Review of Investment Activities 1...................................4 Risk Profile 1....................................................5 Risk and reward indicator...........................................5 Specific risks.....................................................5 Net Asset Value and Comparative Tables 1...........................6 Unit price range..................................................6 Net revenue.....................................................6 Net asset value...................................................6 Fund performance................................................7 Portfolio Statement 1.............................................8 Summary of Portfolio Transactions 1...............................18 Largest purchases...............................................18 Largest sales...................................................18 Statement of the Manager s Responsibilities........................19 Statement of Total Return (unaudited)..............................20 Statement of Change in Net Assets Attributable to Unitholders (unaudited).............................20 Balance Sheet (unaudited).......................................21 Notes to the Accounts (unaudited)................................22 Basis of preparation..............................................22 Accounting policies...............................................22 General Information 1............................................23 Authorisation....................................................23 1 Collectively these comprise the Manager s report.

Fund Information Investment objective and policy The Schroder Long Dated Corporate Bond Fund s (the fund ) investment objective is to provide capital growth and income primarily through investment in long dated non-government debt securities. The fund may also invest in a wide range of investments including transferable securities, derivatives, cash, deposits, collective investment schemes and money market instruments. Financial highlights Dealing price 10.10.17 10.4.17 % change I Accumulation units 311.40p 309.70p 0.55 X Accumulation units 158.80p 157.80p 0.63 Fund information Launch date 24 March 2005 Launch price 132.00p per I Accumulation unit 65.23p per X Accumulation unit Interim Final Accounting dates 10 October 10 April Revenue allocation date 10 June Ongoing charges figure For the period For the year to 10.10.17 to 10.4.17 I Accumulation units 0.27% 1 0.27% X Accumulation units 2 0.02% 1 0.02% 1 The Ongoing charges figure is annualised based on the fees incurred during the accounting period. 2 The Annual management charge for X Accumulation units is invoiced directly to unitholders and is therefore not included in the Ongoing charges figure for that unit class. Total purchases and sales For the period For the year to 10.10.17 to 10.4.17 000 s 000 s Total purchases 108,202 93,135 Total sales 30,820 102,194 3

Review of Investment Activities From 10 April 2017 to 10 October 2017, the price of I Accumulation units on a dealing price to dealing price basis rose 0.55%. In comparison, the Bank America Merrill Lynch Sterling Non-Gilts All Stocks Over 15 Years Index generated a negative total return of 0.14% 1. From 1 July 2017 the benchmark changed to the Bank of America Merrill Lynch Non-Gilts Over 15 Years Index. Prior to this date the benchmark was the Bank of America Merrill Lynch Sterling Non-Gilts All Stocks Over 15 Years Index. The full track record for the previous index has been kept and chain linked to the new one. Fund Manager: Alix Stewart 1 Source : Thomson Reuters Datastream. Sterling corporate bonds were little changed over the period following a rally in the preceding months. They suffered two significant setbacks. In late June, bonds saw a sharp sell off as comments from central banks, in the US, Europe and UK, were taken as suggestive of a hawkish shift. In September, amid well above target inflation, the Bank of England gave a firmer indication it was preparing to raise rates. The portfolio outperformed over the period. Positioning in subordinated insurance was positive, predominantly the relative sector overweight, but also security selection. The sector has benefited from a moderately rising rate environment as well as positive fundamental improvements at the individual company level. Overweight exposure to consumer cyclical, mainly through holdings in supermarkets, was positive. Credit valuations are elevated against a constructive backdrop in terms of economic and corporate fundamentals. With a focus on security selection we continue to find selective opportunities. The UK faces economic headwinds, with Brexit negotiations likely to erode consumer and business confidence. The UK remains a flexible economy with good quality companies and banks, and investors can benefit from any additional risk premia from solid business models. Many UK businesses generate a large part of their revenue internationally and are not reliant on domestic economic conditions. Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. Investment career started in 1994 Joined Schroders in August 2012 as a Credit Portfolio Manager Prior to joining Schroders Alix worked for the following companies: 2011 UBS Global AM, Head of UK Fixed Interest 2009 UBS Global AM, Fund Manager UK Corporate Bonds 2008 UBS Global AM, Fund Manager Global Corporate Bonds 2006 SWIP, Fund Manager High Alpha UK Retail Corporate Bonds 2003 Gartmore, Fund Manager High Alpha UK Retail Corporate Bonds 1999 Standard Life Investments, Fund Manager Corporate Bonds 1994 Scottish Mutual (ANFIS), Fund Manager Corporate Bonds 1991 Scottish Mutual (ANFIS), Actuarial Trainee BSc (Hons) in Economic and Mathematics from University of Leeds 4

Risk Profile Risk and reward indicator The risk category was calculated using historical performance data and may not be a reliable indicator of the fund s future risk profile. The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly. The fund s risk category is not guaranteed to remain fixed and may change over time. A fund in the lowest category does not mean a risk free investment. Specific risks The fund invests in assets which are exposed to currencies other than sterling. Exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. The fund invests in higher yielding bonds (non-investment grade). The risk of default is higher with non-investment grade bonds than with investment grade bonds. Higher yielding bonds may also have an increased potential to erode your capital sum than lower yielding bonds. The fund invests in a wide range of derivatives in order to meet its investment objectives and for leverage. The use of leverage can increase gains as well as losses and expose the fund to increased risk. The fund uses derivatives for specific investment purposes. This involves a higher degree of risk and may lead to a higher volatility in the unit prices of the fund. The Manager employs a risk management process to allow the Manager to measure derivative and forward positions and their contribution to the overall risk profile of the fund. As part of this risk management process, the Manager conducts daily value at risk analysis of the fund and performs both stress and back testing of the fund. As a result of the Annual management charge for I Accumulation units being charged wholly to capital, the distributable revenue of the fund may be higher, but the capital value of the fund may be eroded which may affect future performance. For these reasons, the purchase of units should not normally be regarded as a short term investment. 5

Net Asset Value and Comparative Tables Financial year to 10 April I Accumulation units X Accumulation units Unit price range Highest Lowest Highest Lowest dealing dealing dealing dealing p p p p 2015 276.10 224.00 139.90 113.20 2016 268.90 246.50 136.70 125.00 2017 327.30 264.70 166.40 134.50 Financial period to 10 October 2017 325.50 308.60 166.00 157.30 Net revenue I Accumulation units X Accumulation units Financial year to 10 April pence per unit pence per unit 2015 11.4001 5.7711 2016 11.6149 5.8947 2017 12.7159 6.4695 Financial period to 10 October 2017 Nil Nil Net asset value Net asset Net asset value value per unit Number of As at 10 October 000 s p units in issue 2015 I Accumulation units 277,057 265.42 104,385,318 X Accumulation units 27,898 134.53 20,736,791 2016 I Accumulation units 228,901 266.59 85,861,905 X Accumulation units 65,658 135.47 48,468,446 2017 I Accumulation units 266,721 308.64 86,417,625 X Accumulation units 48,776 157.23 31,022,458 2017 at 10 October I Accumulation units 273,666 310.39 88,169,043 X Accumulation units 118,789 158.31 75,033,884 6

Net Asset Value and Comparative Tables (continued) Fund performance Net asset Net asset value per unit value per unit p p as at 10.10.17 as at 10.4.17 % change I Accumulation units 310.39 308.64 0.57 X Accumulation units 158.31 157.23 0.69 Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. 7

Portfolio Statement Euro Denominated Medium Term Bonds 0.75% (10.4.17 1.38%) Holding at Market Value % of net 10.10.17 000 s assets LHC3 4.125% Bonds 2024 804,000 735 0.19 Petroleos Mexicanos 3.75% Notes 2024 1,090,000 1,042 0.27 Petroleos Mexicanos 4.875% Notes 2028 1,200,000 1,157 0.29 2,934 0.75 Euro Denominated Long Term Bonds 1.09% (10.4.17 1.68%) Republic of Argentine 7.82% Bonds 2033 529,800 539 0.14 UNIQA Insurance Group 6% Bonds 2046 800,000 868 0.22 Repsol International Finance 4.5% Bonds 2075 1,100,000 1,065 0.27 Centrica 3% Notes 2076 236,000 216 0.05 Groupama 6.375% Perpetual Bonds 700,000 731 0.19 Telefonica Europe 3.75% Perpetual Bonds 900,000 849 0.22 4,268 1.09 Euro Denominated Derivatives (0.41)% (10.4.17 (0.08)%) Forward to sell 6,138,447 for 5,408,284 (6,138,447) (77) (0.02) Euro BOBL Futures December 2017 (524) 131 0.03 Euro BTP Futures December 2017 8 (4) 0.00 Euro Bund Futures December 2017 (146) (53) (0.01) Adecco Group 2017 Credit Default Swap Buy Protection ¹ 1,500,000 (3) 0.00 Compagnie Financiere Michelin 2019 Credit Default Swap Buy Protection ¹ 300,000 (5) 0.00 BP 2021 Credit Default Swap Buy Protection ¹ 1,180,000 (30) (0.01) Carrefour 2021 Credit Default Swap Buy Protection ¹ 1,880,000 (37) (0.01) ENI 2021 Credit Default Swap Buy Protection ¹ 1,540,000 (36) (0.01) Royal Dutch Shell 2021 Credit Default Swap Buy Protection ¹ 1,180,000 (34) (0.01) Standard Chartered Bank 2021 Credit Default Swap Buy Protection ¹ 1,930,000 (36) (0.01) 8

Portfolio Statement (continued) Euro Denominated Derivatives (continued) Holding at Market Value % of net 10.10.17 000 s assets Total 2021 Credit Default Swap Buy Protection 1 1,180,000 (37) (0.01) Citigroup Standard Chartered Bank 2022 Credit Default Swap Buy Protection 1 152,201 (3) 0.00 itraxx Europe Crossover Series 28 Version 1 2022 Credit Default Index Swap Buy Protection 1 12,600,000 (1,394) (0.36) JPMorgan Standard Chartered Bank 2022 Credit Default Swap Buy Protection 1 1,850,000 (34) (0.01) Morgan Stanley Standard Chartered Bank 2022 Credit Default Swap Buy Protection 1 166,128 (2) 0.00 Heathrow Funding 2018 Credit Default Swap Sell Protection 1 2,375,000 17 0.01 SSE 2018 Credit Default Swap Sell Protection 1 335,000 3 0.00 Iberdrola 2021 Credit Default Swap Sell Protection 1 613,252 14 0.01 (1,620) (0.41) Sterling Denominated Short Term Bonds 2.19% (10.4.17 0.72%) J Sainsbury 1.25% Bonds 2019 1,500,000 1,521 0.39 Investec 4.5% Notes 2022 4,317,000 4,628 1.18 Investec Bank 9.625% Notes 2022 1,072,000 1,352 0.34 Mclaren Finance 5% Bonds 2022 1,081,000 1,090 0.28 8,591 2.19 Sterling Denominated Medium Term Bonds 5.80% (10.4.17 6.33%) Anglian Water Osprey Financing 5% Notes 2023 600,000 650 0.17 Ladbrokes Group Finance 5.125% Bonds 2023 2,050,000 2,123 0.54 William Hill 4.875% Bonds 2023 1,366,000 1,427 0.36 Gazprom OAO Via Gaz Capital 4.25% Bonds 2024 1,600,000 1,665 0.42 Unique Pub Finance 7.395% Notes 2024 679,000 774 0.20 Virgin Media Finance 6.375% Notes 2024 800,000 865 0.22 CYBG 3.125% Notes 2025 1,416,000 1,418 0.36 9

Portfolio Statement (continued) Sterling Denominated Medium Term Bonds (continued) Holding at Market Value % of net 10.10.17 000 s assets BUPA Finance 5% Notes 2026 600,000 679 0.17 Morgan Stanley 2.625% Notes 2027 1,900,000 1,905 0.49 Shaftesbury Chinatown 2.348% Bonds 2027 2,366,000 2,307 0.59 Petrobras Global Finance 5.375% Notes 2029 1,080,000 1,064 0.27 Virgin Media Secured Finance 6.25% Notes 2029 374,000 406 0.10 GKN Holdings 3.375% Notes 2032 3,330,000 3,300 0.84 LafargeHolcim Sterling Finance Netherlands 3% Notes 2032 3,580,000 3,495 0.89 Mitchells & Butlers Finance 6.469% Bonds 2032 568,000 696 0.18 22,774 5.80 Sterling Denominated Long Term Bonds 82.71% (10.4.17 82.13%) Arqiva Financing 4.882% Notes 2032 1,300,000 1,463 0.37 Canary Wharf Finance II 6.455% Bonds 2033 632,826 806 0.21 Canary Wharf Finance II 6.8% Bonds 2033 505,404 661 0.17 East Japan Railway 5.25% Notes 2033 450,000 609 0.15 Northumbrian Water Finance 5.625% Bonds 2033 1,130,000 1,553 0.40 Telereal Securitisation 4.0902% Bonds 2033 4,300,000 4,498 1.15 Telereal Securitisation 5.5534% Bonds 2033 249,039 299 0.08 Telereal Securitisation 6.1645% Bonds 2033 126,616 153 0.04 Annington Funding 3.685% Notes 2034 2,421,000 2,496 0.64 East Japan Railway 4.875% Notes 2034 450,000 589 0.15 Electricite de France 6.125% Notes 2034 1,000,000 1,352 0.34 Greene King Finance 5.106% Bonds 2034 908,000 1,066 0.27 innogy Finance 4.75% Notes 2034 800,000 974 0.25 Italy 5.25% Notes 2034 1,220,000 1,427 0.36 John Lewis 4.25% Bonds 2034 1,000,000 1,043 0.27 10

Portfolio Statement (continued) Sterling Denominated Long Term Bonds (continued) Holding at Market Value % of net 10.10.17 000 s assets Orange 5.625% Notes 2034 1,500,000 1,998 0.51 Petrobras Global Finance 6.625% Notes 2034 900,000 932 0.24 Scotland Gas Network 4.875% Notes 2034 300,000 385 0.10 Thames Water Utilities Cayman Finance 4.375% Notes 2034 300,000 352 0.09 Verizon Communications 4.75% Notes 2034 1,600,000 1,862 0.47 Wal-Mart Stores 5.625% Notes 2034 958,000 1,351 0.34 British Land 5.264% Bonds 2035 474,000 589 0.15 Greene King Finance 4.0643% Bonds 2035 663,019 724 0.18 Northern Electric Finance 5.125% Bonds 2035 200,000 266 0.07 Northern Powergrid Yorkshire 5.125% Bonds 2035 300,000 399 0.10 SNCF Reseau 5.25% Notes 2035 1,140,000 1,571 0.40 Wal-Mart Stores 5.25% Notes 2035 1,486,000 2,061 0.52 East Japan Railway 4.5% Notes 2036 450,000 570 0.14 Eastern Power Networks 6.25% Notes 2036 500,000 745 0.19 Wellcome Trust Finance 4.625% Bonds 2036 900,000 1,222 0.31 Anheuser-Busch InBev 2.85% Notes 2037 7,662,000 7,478 1.91 Arqiva Financing 5.34% Notes 2037 1,951,000 2,287 0.58 AT&T 3.55% Bonds 2037 1,092,000 1,049 0.27 Canary Wharf Finance II 5.952% Bonds 2037 645,000 902 0.23 E.ON International Finance 5.875% Notes 2037 1,150,000 1,624 0.41 Electricite de France 5.5% Notes 2037 2,800,000 3,593 0.92 Enel 5.75% Notes 2037 1,282,000 1,710 0.44 Southern Electric Power Distribution 4.625% Bonds 2037 2,205,000 2,771 0.71 Thames Water Utilities Finance 5.125% Notes 2037 2,284,000 2,971 0.76 Cadent Finance 2.625% Notes 2038 5,370,000 5,041 1.28 Goldman Sachs Group 6.875% Notes 2038 3,205,000 4,630 1.18 High Speed Rail Finance 1 4.375% Notes 2038 5,012,000 6,200 1.58 11

Portfolio Statement (continued) Sterling Denominated Long Term Bonds (continued) Holding at Market Value % of net 10.10.17 000 s assets HSBC Holdings 7% Notes 2038 3,000,000 4,392 1.12 Southern Water Services Finance 4.5% Notes 2038 800,000 876 0.22 SSE 6.25% Notes 2038 1,180,000 1,755 0.45 Citigroup 7.375% Notes 2039 4,128,000 6,939 1.77 E.ON International Finance 6.75% Notes 2039 3,200,000 4,931 1.26 European Investment Bank 5% Bonds 2039 5,236,000 7,761 1.98 Gatwick Funding 5.75% Notes 2039 2,830,000 3,947 1.01 GlaxoSmithKline Capital 6.375% Notes 2039 1,785,000 2,804 0.71 innogy Finance 6.125% Notes 2039 4,900,000 7,129 1.82 Vattenfall 6.875% Notes 2039 3,800,000 5,990 1.53 Wal-Mart Stores 4.875% Bonds 2039 1,922,000 2,595 0.66 Yorkshire Water Services Bradford Finance 6.375% Notes 2039 1,596,000 2,506 0.64 Aspire Defence Finance A 4.674% Bonds 2040 4,234,160 5,223 1.33 AT&T 7% Notes 2040 3,350,000 4,848 1.24 DONG Energy 5.75% Notes 2040 3,962,000 5,660 1.44 Enel Finance International 5.75% Notes 2040 4,640,000 6,256 1.59 Lloyds Bank 6.5% Notes 2040 2,890,000 4,630 1.18 Northern Gas Networks Finance 5.625% Notes 2040 1,642,000 2,377 0.61 Southern Gas Networks 6.375% Notes 2040 1,231,000 1,924 0.49 Western Power Distribution (East Midlands) 6.25% Notes 2040 500,000 765 0.19 Western Power Distribution (South Wales) 5.75% Notes 2040 600,000 864 0.22 Western Power Distribution (South West) 5.75% Notes 2040 300,000 432 0.11 Electricite de France 5.5% Notes 2041 5,200,000 6,795 1.73 HSBC Bank 6.25% Notes 2041 359,000 526 0.13 Southern Water Services Finance 5% Notes 2041 960,000 1,311 0.33 Thames Water Utilities Cayman Finance 5.5% Notes 2041 1,566,000 2,161 0.55 Apple 3.6% Notes 2042 1,990,000 2,309 0.59 12

Portfolio Statement (continued) Sterling Denominated Long Term Bonds (continued) Holding at Market Value % of net 10.10.17 000 s assets BHP Billiton Finance 4.3% Notes 2042 1,400,000 1,718 0.44 Northumbrian Water Finance 5.125% Notes 2042 600,000 827 0.21 Severn Trent Utilities Finance 4.875% Notes 2042 1,933,000 2,577 0.66 Siemens Financieringsmaatschappij 3.75% Notes 2042 2,100,000 2,517 0.64 Tesco 4.875% Notes 2042 3,891,000 3,935 1.00 Transport for London 3.875% Notes 2042 3,000,000 3,724 0.95 Allianz Finance II 4.5% Notes 2043 1,300,000 1,705 0.43 AT&T 4.25% Bonds 2043 1,340,000 1,398 0.36 Gatwick Funding 6.5% Notes 2043 600,000 934 0.24 Heathrow Funding 5.875% Notes 2043 2,200,000 3,196 0.81 RL Finance Bonds No. 2 6.125% Bonds 2043 2,069,000 2,325 0.59 AT&T 4.875% Bonds 2044 2,780,000 3,175 0.81 Centrica 4.25% Notes 2044 2,910,000 3,364 0.86 European Investment Bank 4.5% Bonds 2044 5,799,000 8,428 2.15 GlaxoSmithKline Capital 4.25% Notes 2045 1,389,000 1,767 0.45 Hiscox 6.125% Bonds 2045 1,200,000 1,371 0.35 Cadent Finance 2.75% Notes 2046 4,669,000 4,377 1.12 Heathrow Funding 4.625% Notes 2046 4,552,000 5,827 1.48 Thames Water Utilities Cayman Finance 4.625% Notes 2046 2,180,000 2,759 0.70 Annington Funding 3.935% Notes 2047 4,365,000 4,626 1.18 Notting Hill Housing Trust 3.25% Bonds 2048 1,673,000 1,670 0.43 Aviva 4.374% Notes 2049 700,000 720 0.18 Channel Link Enterprises Finance 3.848% Bonds 2050 2,458,000 2,590 0.66 Orange 5.375% Notes 2050 4,000,000 5,690 1.45 LCR Finance 5.1% Bonds 2051 3,790,000 6,392 1.63 Southern Water Services Finance 4.5% Bonds 2052 300,000 415 0.11 AXA 5.625% Notes 2054 4,993,000 5,772 1.47 European Investment Bank 4.625% Bonds 2054 7,481,000 12,259 3.12 13

Portfolio Statement (continued) Sterling Denominated Long Term Bonds (continued) Holding at Market Value % of net 10.10.17 000 s assets Prudential 5% Notes 2055 4,166,000 4,440 1.13 Dwr Cymru Financing 4.473% Notes 2057 200,000 285 0.07 Tesco 5.2% Notes 2057 3,900,000 4,049 1.03 Aviva 6.875% Notes 2058 3,507,000 4,628 1.18 Thames Water Utilities Cayman Finance 7.738% Notes 2058 1,955,000 3,992 1.02 Treasury 4% Stock 2060 3,366,289 5,590 1.42 Treasury 3.5% Stock 2068 2,981,762 4,743 1.21 NGG Finance 5.625% Bonds 2073 2,074,000 2,354 0.60 Enel 7.75% Bonds 2075 920,000 1,052 0.27 SSE 3.625% Bonds 2077 1,000,000 1,019 0.26 Electricite de France 6% Notes 2114 1,300,000 1,843 0.47 Mexico 5.625% Notes 2114 2,141,000 2,301 0.59 Assicurazioni Generali 6.416% Perpetual Bonds 3,800,000 4,130 1.05 Aviva 5.9021% Perpetual Notes 2,001,000 2,165 0.55 AXA 5.453% Perpetual Notes 841,000 948 0.24 Bank of Scotland Capital Funding 7.754% Perpetual Bonds 1,403,000 1,653 0.42 Barclays Bank 5.33% Perpetual Bonds 2,090,000 2,089 0.53 Electricite de France 6% Perpetual Notes 1,900,000 2,050 0.52 J Sainsbury 6.5% Perpetual Bonds 900,000 981 0.25 Orange 5.75% Perpetual Notes 1,112,000 1,236 0.31 SSE 3.875% Perpetual Bonds 2,617,000 2,709 0.69 Telefonica Europe 6.75% Perpetual Bonds 2,100,000 2,322 0.59 324,615 82.71 Sterling Denominated Derivatives 0.11% (10.4.17 1.43%) Long Gilt Futures December 2017 968 (2,319) (0.59) Citigroup Interest Rate Swap 16.10.34 receive 2.472% pay 0.48494% 1 8,770,000 1,162 0.30 Royal Bank of Scotland Interest Rate Swap 10.6.35 receive 2.443% pay 0.41588% 1 10,810,000 1,415 0.36 Citigroup Interest Rate Swap 21.6.43 receive 0.42238% pay 3.2375% 1 9,000,000 (3,112) (0.79) 14

Portfolio Statement (continued) Sterling Denominated Derivatives (continued) Holding at Market Value % of net 10.10.17 000 s assets Goldman Sachs Interest Rate Swap 4.12.43 receive 3.355% pay 0.4245% 1 1,300,000 490 0.12 Morgan Stanley Interest Rate Swap 17.2.44 receive 3.3375% pay 0.40513% 1 8,250,000 3,098 0.79 BNP Paribas Interest Rate Swap 22.5.44 receive 3.229% pay 0.45044% 1 2,325,000 823 0.21 Morgan Stanley Interest Rate Swap 19.5.50 receive 0.45056% pay 1.397% 1 1,533,840 89 0.02 Royal Bank of Scotland Interest Rate Swap 13.2.54 receive 0.40525% pay 3.2925% 1 2,500,000 (1,210) (0.31) 436 0.11 US Dollar Denominated Short Term Bonds 0.59% (10.4.17 0.22%) Atento Luxco 1 6.125% Notes 2022 US$2,059,000 1,634 0.42 Petrobras Global Finance 6.125% Notes 2022 US$818,000 665 0.17 2,299 0.59 US Dollar Denominated Medium Term Bonds 0.63% (10.4.17 0.55%) SFR Group 7.375% Notes 2026 US$1,855,000 1,512 0.38 Koninklijke KPN 8.375% Bonds 2030 US$919,000 964 0.25 2,476 0.63 US Dollar Denominated Long Term Bonds 1.76% (10.4.17 1.77%) Freeport-McMoRan 5.4% Notes 2034 US$160,000 115 0.03 Centrica 5.375% Notes 2043 US$1,000,000 853 0.22 Bank of America 5% Notes 2044 US$530,000 465 0.12 Petrobras Global Finance 7.25% Notes 2044 US$1,572,000 1,239 0.31 Mexico City Airport Trust 5.5% Bonds 2046 US$3,200,000 2,457 0.63 Republic of Argentine 7.625% Bonds 2046 US$300,000 252 0.06 15

Portfolio Statement (continued) US Dollar Denominated Long Term Bonds (continued) Holding at Market Value % of net 10.10.17 000 s assets Petroleos del Peru 5.625% Bonds 2047 US$318,000 251 0.06 Enel 8.75% Bonds 2073 US$331,000 303 0.08 Friends Life Holdings 7.875% Perpetual Notes US$1,218,000 975 0.25 6,910 1.76 US Dollar Denominated Derivatives (0.09)% (10.4.17 (0.29)%) Forward to sell US$14,678,053 for 10,808,780 US$(14,678,053) (315) (0.08) US Long Bond Futures December 2017 (41) 73 0.02 US 10 Year Ultra Bond Futures December 2017 225 (16) (0.01) Citigroup Japan 2017 Credit Default Swap Buy Protection 1 US$3,300,000 (6) 0.00 Credit Suisse Japan 2017 Credit Default Swap Buy Protection 1 US$1,500,000 (3) 0.00 BNP Paribas Lowe s Companies 2018 Credit Default Swap Buy Protection 1 US$1,078,000 (4) 0.00 Johnson Controls 2018 Credit Default Swap Buy Protection 1 US$3,615,000 (26) (0.01) JPMorgan Lowe s Companies 2018 Credit Default Swap Buy Protection 1 US$1,122,000 (4) 0.00 BNP Paribas Mondelez International 2020 Credit Default Swap Buy Protection 1 US$755,000 (13) 0.00 JPMorgan Mondelez International 2020 Credit Default Swap Buy Protection 1 US$770,000 (14) 0.00 JPMorgan Inflation Linked Swap 10.10.27 receive 0% pay 2.1775% 1 US$26,380,000 (21) (0.01) (349) (0.09) Portfolio of investments 2 373,334 95.13 Net other assets 19,121 4.87 Net assets attributable to unitholders 392,455 100.00 16

Portfolio Statement (continued) Market Value % of net 000 s assets Investment grade securities 314,898 80.25 Below Investment grade securities 40,449 10.29 Unrated securities 19,520 4.98 Total debt securities 374,867 95.52 Unless otherwise stated the above securities are admitted to official stock exchange listings or traded on a regulated market. 1 Over the counter derivative instruments not listed on recognised exchanges. 2 Including derivative liabilities. 17

Summary of Portfolio Transactions Largest purchases Largest sales Cost For the six months ended 10 October 2017 000 s European Investment Bank 4.625% Bonds 2054 10,411 Anheuser-Busch InBev 2.85% Notes 2037 7,629 European Investment Bank 4.5% Bonds 2044 6,469 Annington Funding 3.935% Notes 2047 4,413 Heathrow Funding 4.625% Notes 2046 4,040 LafargeHolcim Sterling Finance Netherlands 3% Notes 2032 3,516 Treasury 3.25% Stock 2044 3,474 Centrica 4.25% Notes 2044 3,445 GKN Holdings 3.375% Notes 2032 3,319 High Speed Rail Finance 1 4.375% Notes 2038 3,049 Proceeds For the six months ended 10 October 2017 000 s European Investment Bank 5.625% Bonds 2032 4,113 Treasury 0.5% Stock 2022 3,719 Treasury 3.25% Stock 2044 3,611 E.ON International Finance 6.375% Notes 2032 2,198 Western Power Distribution West Midlands 5.75% Notes 2032 2,081 Ziggo Secured Finance 4.25% Bonds 2027 1,676 Imperial Brands Finance 4.875% Notes 2032 1,629 Telefonica Emisiones 5.375% Notes 2026 1,584 Treasury 4.5% Stock 2042 1,506 Tesco 5.125% Notes 2047 1,041 18

Statement of the Manager s Responsibilities The Financial Conduct Authority s Collective Investment Schemes sourcebook (COLL) requires the Manager to prepare accounts for each annual and half yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true and fair view of the financial position of the fund and of its net revenue and the net capital losses on the property of the fund for the period. In preparing the accounts the Manager is required to: select suitable accounting policies and then apply them consistently; comply with the disclosure requirements of the Statement of Recommended Practice (SORP) for UK Authorised Funds issued by the Investment Management Association (IMA (now the Investment Association (IA))) in May 2014; follow generally accepted accounting principles and applicable accounting standards; prepare the accounts on the basis that the fund will continue in operation unless it is inappropriate to do so; keep proper accounting records which enable it to demonstrate that the accounts as prepared comply with the above requirements; make judgements and estimates that are prudent and reasonable. The Manager is responsible for the management of the fund in accordance with its Trust Deed, the Prospectus and the COLL, and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. The Manager s report and accounts for the period ended 10 October 2017 were signed on 24 November 2017 on behalf of the Manager by: J.A. Walker-Hazell Directors R.E. Stoakley 19

Statement of Total Return (unaudited) For the six months ended 10 October 2017 10.10.17 10.10.16 000 s 000 s 000 s 000 s Income Net capital (losses)/gains (5,504) 32,709 Revenue 7,456 6,687 Expenses (386) (365) Net revenue before taxation 7,070 6,322 Taxation 0 0 Net revenue after taxation 7,070 6,322 Total return before distributions 1,566 39,031 Distributions 772 (12) Change in net assets attributable to unitholders from investment activities 2,338 39,019 Statement of Change in Net Assets Attributable to Unitholders (unaudited) For the six months ended 10 October 2017 10.10.17 10.10.16 000 s 000 s 000 s 000 s Opening net assets attributable to unitholders 315,497 1 294,559 Amounts receivable on issue of units 81,415 9,383 Amounts payable on cancellation of units (7,140) (17,523) 74,275 (8,140) Dilution adjustment 345 102 Change in net assets attributable to unitholders from investment activities 2,338 39,019 Closing net assets attributable to unitholders 392,455 325,540 1 1 The Opening net assets attributable to unitholders for the current period do not equal the Closing net assets attributable to unitholders for the comparative period as they are not consecutive periods. 20

Balance Sheet (unaudited) As at 10 October 2017 10.10.17 10.4.17 000 s 000 s Assets Investments 382,182 309,140 Current assets Debtors 9,843 5,359 Cash and bank balances 11,760 8,082 Total assets 403,785 322,581 Liabilities Investment liabilities (8,848) (6,761) Creditors Bank overdrafts (610) (221) Other creditors (1,872) (102) Total liabilities (11,330) (7,084) Net assets attributable to unitholders 392,455 315,497 21

Notes to the Accounts (unaudited) Basis of preparation The accounts have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the SORP for UK Authorised Funds issued by the IMA in May 2014 and in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)). Accounting policies The accounting policies applied are consistent with those of the annual accounts for the year ended 10 April 2017 and are described in those annual accounts. 22

General Information Manager Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Registrar Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Investment Adviser Schroder Investment Management Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Trustee J.P. Morgan Europe Limited Chaseside Bournemouth BH7 7DA Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority Administration Details Schroders FREEPOST RLTZ-CHSY-HBUT PO Box 1102 Chelmsford Essex CM99 2XX Investor Services 0800 718 777 investorservices@schroders.com Dealing 0800 718 788 Fax 0870 043 4080 Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX Authorisation The fund is an authorised unit trust and is constituted pursuant to the COLL and is structured as a trust. The fund is a UCITS scheme for the purpose of the categorisation of the COLL. 23

For further literature please contact Schroder Investor Services on 0800 718 777 or at investorservices@schroders.com, or visit our website at www.schroders.co.uk. Issued in November 2017 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: 04191730 England. Authorised and regulated by the Financial Conduct Authority. w35641