Robin Parbrook – Co-head of Asia Equity Alternative Investments

Performance and strategy review

Schroder Asian Total Return Investment Company plc

May 2018

Marketing Material

Product overview – Schroder Asian Total Return Investment Company plc

1

Source: Schroders, as at 31 March 2017

Fund manager Robin Parbrook/Lee King Fuei

Industry experience (Yrs) Robin (28), King Fuei (19)

Schroders’ experience (Yrs) 47 years (combined)

Investment objective Fund aims

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. The Company will invest principally in a diversified 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.

Schroder Asian Total Return Investment Company plc Taking a different approach to investing in Asia

2

Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

– Where a stock is listed (e.g. Rusal in HK) is unimportant. It is what the company does that drives returns

– It is NOT about taking large country positions based on a discussion of widely available pieces of economic data. With little information advantage we believe the top down part of an Asian investment process is best left to quantitative models

– Only buy stocks that have upside to consistently calculated fair values made by experienced analysts, rather than worrying about overweight or underweight positions. In our view the primary goal for investors in Asia is to make money, whilst avoiding large losses, not relative performance

Ignore the index

Focus solely on absolute returns

Top Down is about understanding market risks, taking out volatility and aiming to provide capital preservation

Schroder Asian Total Return Investment Company plc Investment process and portfolio as at 31st Mar 2018

3

Source: Schroders. The above is for illustrative purposes only and does not constitute a recommendation to invest in the country.

Fund holding a moderate level of cash (103% invested), holding 55 stocks

Portfolio – Generally

negative on most of the Asian markets

Portfolio – Short term

tactical indicator model neutral

Final portfolio – Net Asian market

notional exposure of around 83% (88% adjusted for current prices of derivatives)

Stock Selection Country view Tactical view

Provide downside protection in event of tail risk by buying out of money put options

Additional protection via Australian and Korean index put options

Market risk removed to provide downside protection

Step 1 Step 2 Step 3

Hedge Taiwan country risk via short index futures

Schroder Asian Total Return Investment Company plc 2017 and YTD 31st March 2018 Performance

Source: Schroders, Morningstar. All fund/trust data is after fees. The reference index is the MSCI AC Asia Pacific ex Japan.

4

Performance Summary – in % GBP Total Returns

2017 %

Year to Date %

Net Asset Value total return 34.8 -2.8

Share price total return 43.9 -2.2

Peer group average NAV total return 31.7 -2.7

MSCI AC Asia Pacific ex Japan Index 25.1 -4.1

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 any overseas investments to rise or fall.

Schroder Asian Total Return Investment Company plc Long Term Performance – Financial Year End

1The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return. Based on ex income NAV pricing data.

12 month ending 31 Dec 2013

31 Dec 2014

31 Dec 2015

31 Dec 2016

31 Dec 2017

March 2013 to Dec 2017

Sharpe Ratio1

31 March 2013 to 31 Dec 2017

% % % % % % p.a. % p.a.

Net Asset Value total return

-8.3 16.5 3.0 28.5 34.9 13.7 1.19

Share Price total return -3.4 12.3 -0.6 37.0 43.9 14.9 -

MSCI AC Asia Pacific ex Japan Index -0.1 9.2 -4.1 27.3 25.1 9.7 -

5

Performance Summary – in % GBP

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. Source: Schroders, Morningstar. All data is after fees. Some performance differences between the fund and the reference index may arise because the fund performance is calculated at a different valuation point from the reference index.

Schroder Asian Total Return Investment Company plc Long Term Performance

Source: Schroders, Morningstar. All data is after fees. Some performance differences between the fund and the reference index may arise because the fund performance is calculated at a different valuation point from the reference index. 1The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return.

12 month ending

31 March 2014

31 March 2015

31 March 2016

31 March 2017

31 March 2018

March 2013 to March 2018

Sharpe Ratio1

Since 31 March 2013

% % % % % % p.a. % p.a.

Net Asset Value total return

-8.6 26.1 -2.1 35.0 17.7 12.4 1.12

Share Price total return -13.6 26.5 -4.2 43.0 26.2 13.6 -

MSCI AC Asia Pacific ex Japan Index -6.7 19.4 -8.7 35.9 7.6 8.3 -

6

Performance Summary – in % GBP

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.

Fund Risk Factors

7

Schroder Asian Total Return Investment Company plc:

Investors in the emerging markets and Asia should be aware that this involves a high degree of risk and should be seen as long term in nature. Less developed markets are generally less well regulated than the UK, they may be less liquid and may have less reliable arrangements for trading and settlement of the underlying holdings.

The Company holds investments denominated in currencies other than sterling, investors should note that exchange rates may cause the value of these investments, and the income from them, to rise or fall.

The Company invests in smaller companies that may be less liquid than in larger companies and price swings may therefore be greater than investment companies that invest in larger companies.

The Company may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.

Investments such as warrants, participation certificates, guaranteed bonds, etc. will expose the fund to the risk of the issuer of these instruments defaulting on paying the capital back to the fund.

The Company can use derivatives to protect the capital value of the portfolio and reduce volatility, or for efficient portfolio management.

Absolute contribution to returns in GBP (%) Top and bottom 5 stock contributors

Schroder Asian Total Return Investment Company plc Performance attribution – Financial Year 31 December 2017

8

Source: FactSet, 31 December, Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Stock Country Returns (%)

Absolute Contribution (%)

Brambles Australia -17.3 -0.58

RFM Corp. Philippines -20.3 -0.23 Pt Waskita Beton Precast Indonesia -10.2 -0.18

Ifast Singapore -29.8 -0.13 Pt Sumber Alfaria Trijaya Indonesia -10.8 -0.09

Stock Country Returns (%)

Absolute Contribution (%)

Tencent China 94.3 3.43

Alibaba China 79.4 2.92

China Lodging China 156.0 2.40

Samsung Electronics Korea 47.0 1.76

HDFC Bank India 53.9 1.73 2.1

21.6

5.5 4.4

-0.3

2.6

0.0 0.0 0.0

0.0

0.8

4.2

0.6 0.8

-4.2

-0.4

Aust

ralia

Chin

a

Hon

g Ko

ng

Indi

a

Indo

nesi

a

Kore

a

Mal

aysi

a

New

Zea

land

Paki

stan

Phili

ppin

es

Sing

apor

e

Taiw

an

Thai

land

Cash

Der

ivat

ives

FX F

orw

ards

Absolute contribution to returns in GBP (%) Top and bottom 5 stock contributors

Schroder Asian Total Return Investment Company plc Performance attribution – for YTD 31st March 2018

9

Source: FactSet, 31 March 2018 Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Stock Country Returns (%)

Absolute Contribution

(%)

Nexteer Automotive China -39.0 -0.73

Hutchison China Meditech China -28.6 -0.59

Techtronic Industries HK -13.8 -0.33

Largan Precision Taiwan -18.5 -0.26

Incitec Pivot Australia -14.9 -0.24

Stock Country Returns (%)

Absolute Contribution (%)

Aeon Thana Sinsap Thailand 73.3 0.98

Wuxi Biologics China 65.8 0.96

Venture Corp Singapore 35.0 0.46 Taiwan Semiconductor Taiwan 5.5 0.19

Cognizant Tech India 9.6 0.15 -0.6 -0.7

-1.5

-0.3

0.0

-0.4

0.0 0.0 0.0 0.0

0.4

-0.3

0.8

0.1

-0.2

Aust

ralia

Chin

a

Hon

g Ko

ng

Indi

a

Indo

nesi

a

Kore

a

Mal

aysi

a

New

Zea

land

Paki

stan

Phili

ppin

es

Sing

apor

e

Taiw

an

Thai

land

Cash

Der

ivat

ives

Schroder Asian Total Return Investment Company plc Portfolio Positioning as at 31st March 2018

10

Source: Schroders, 31 March 2018. Sectors shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell

Country Positioning Sector Positioning

12.8%

27.9%

24.2%

8.6%

0.0%

5.3%

0.0%

5.7%

13.2%

3.6%

1.5%

-2.9%

-14.9%

Australia

China

Hong Kong

India

Indonesia

Korea

Malaysia

New Zealand

Philippines

Singapore

Taiwan

Thailand

United States

Hedges - delta-adjusted

Cash

16.4%

0.9%

0.9%

20.5%

7.0%

8.5%

32.1%

3.7%

9.9%

0.0%

1.8%

0.9%

-14.9%

-2.9%

Consumer Disc.

Consumer Staples

Energy

Financials

Health Care

Industrials

Info Technology

Materials

Real Estate

Telecom Services

Utilities

Unit Trust

Hedges - delta-adjusted

Cash

Schroder Asian Total Return Investment Company plc Top 10 Holdings as at 31st March 2018

11

Source: Schroders. Data is for information only and it does not constitute any recommendation to invest or disinvest in the above-mentioned securities. Past performance is not indicative of future returns.

Security Country Sector Fund (%)

Samsung Electronics Korea Info Tech 5.3%

Tencent China Info Tech 4.5%

Taiwan Semiconductor Manufacturing Taiwan Info Tech 4.3%

HDFC Bank India Financials 3.7%

Alibaba China Info Tech 3.4%

Swire Properties Hong Kong Real Estate 3.1%

AIA Group Hong Kong Financials 2.9%

Jardine Strategic Hong Kong Industrials 2.9%

Midea China Consumer Discretionary 2.8%

Wuxi Biologics China Healthcare 2.6%

Total 35.5%

Market Outlook

MSCI Asia ex-Japan Forward PE: Median vs weighted (x)

MSCI Asia ex-Japan: Forward PE peak-to-trough (sorted by current PE) 12M fwd PE (x)

13

13.1

Avg,12.1

+SD,13.6

-SD,10.6

14.6

9

10

11

12

13

14

15

16

17

Dec

-02

Oct

-03

Aug-

04

Jun-

05

Apr-

06

Feb-

07

Dec

-07

Oct

-08

Aug-

09

Jun-

10

Apr-

11

Feb-

12

Dec

-12

Oct

-13

Aug-

14

Jun-

15

Apr-

16

Feb-

17

Dec

-17

Weighted 12MF PE (x) Median 12MF PE

0

5

10

15

20

25

30

35

40

45

Tech

HW

Bank

sAu

tos

Sem

isEn

ergy

Cap

gds

Mat

eria

lsPr

oper

tyU

tiliti

esD

iv fi

nCo

mm

l svc

Insu

ranc

eTe

leco

mCo

ns d

urTr

ansp

ort

FBT

H'c

are

Fd &

dru

gM

edia

Cons

svc

sRe

tail

Soft

war

ePh

arm

aH

PC

Noted: PE as of 29 December 2017.

Source: Datastream, Factset, CLSA January 2018.

The sectors shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell

Asian valuations less attractive than headline numbers Tech hardware and banks still look relatively attractive versus historical trading ranges

Current Avg since 04

Peak

Trough

39 36

43

36

Assets of the Chinese financial system in 20081 Estimated shadow banking stock reaches RMB 42 trillion2 RMB bn % of GDP

Assets of the Chinese financial system in 20161

14

96%

100%

3% 11%

8% 14%

3% 4%

9% Big four banks Other banks

Trust Insurance

Securities Asset/ WMP

Pension Other finance

"Other" (informal)

109%

185%

24% 20% 26%

46%

8% 14%

11% Big four banks Other banks

Trust Insurance

Securities Asset/ WMP

Pension Other finance

"Other" (informal)

1Source: Emerging Advisors Group. 2Source: CEIC, Macquarie Research, March 2017.

China – financial sector transparency down, fragility up Rampant credit growth driven by shadow banking sector and smaller, marginal banks

0%

10%

20%

30%

40%

50%

60%

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Shadow Banking % of GDP

Total assets: 248% of GDP

Total assets: 441% of GDP

0

500

1,000

1,500

2,000

2,500

3,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

E

2018

E

2019

E

2020

E

Est. cement demand WITH stimulus Est. cement demand WITHOUT stimulus

15

Source: WIND, CEIC, National Bureau of Statistics (NBS), China Cement Association (CCA), Digital Cement (DC), UBS estimates, October 2016.

Source: JP Morgan as at March 2017. Regions shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

China - repeated stimulus has pulled forward demand Rebalancing means inevitable slowdown/fall in demand for key commodities

Actual demand driven by stimulus

Organic demand estimate

WITHOUT stimulus

Driven by organic demand

Stimulus distorted cement demand over the last 8 years mt

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

0 6,000 12,000 18,000 24,000 30,000 36,000 42,000 48,000 54,000 60,000

Russia (1991-2015)

Brazil (1985-2015)

India (1985-2016)

China (1985-2016)

US (1930-2015)

UK (1985-2015)

Germany (1985-2015)

Japan (1985-2015)

Taiwan (1985-2015)

South Korea (1985-2015)

Mexico (1985-2015)

Spain (1985-2015)

Indonesia (1985-2015)

GDP per capita (USD)

US 2015

Russia 2015

Brazil 2015

Mexico 2015

S. Korea 2015

Taiwan 2015

UK 2015

Germany 2015

Japan 2015

India 2016E

1993: per capita cement consumption peaked in Taiwan

1997: per capita cement consumption peaked in Korea

Spain 2015 Indonesia 2015

16

Source: WIND, CEIC, National Bureau of Statistics (NBS), China Cement Association (CCA), Digital Cement (DC), UBS estimates, October 2016.

Source: JP Morgan as at March 2017. Regions shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

China - repeated stimulus has pulled forward demand Rebalancing means inevitable slowdown/fall in demand for key commodities

China 2015

China 2016E

Peak for Spain in 2006

Cement consumption per capita (tonnes)

Chinese Sales – Market Share by Brand R&D expenses CAGR in 2012–2015

17

25% 31%

7% 11% 14% 22%

2007 2016 2007 2016 2007 2016

Midea Haier Gree Foreign brands Other local brands

Washing machine Refrigerator Air conditioner 15.8% 15.6% 14.7%

11.8% 11.1%

1.5%

Mid

ea

BSH

Elec

trol

ux

Qin

gdao

Hai

er

Dai

kin

Whi

rlpo

ol

Source: Euromonitor, Goldman Sachs.

Source: Euromonitor, company data.

Leading brands taking market share Midea – gaining share primarily from low-tier local brands

18

Source: Schroders, images taken at Shanghai Auto Show 2017.

In many areas the best Chinese companies are improving product quality quicker than expected The latest new models from Great Wall, Geely, GAC and SAIC (clockwise from top left)

19

1Source: World Bank Ease of Doing Business 2014. 2Source: Fraser Institute 2012. 3Source: Transparency International 2014. 4Source: United Nations Development Programme 2014. Countries shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Regional challenges – structural issues facing Asia Do Asian countries have the right “soft skills” for the New Economy? Country Ease of Doing Business1

(189 Countries) Economic Freedom2

(152 Countries) Corruption Perception3

(174 Countries) Human Development4

(187 Countries) Singapore 1 1 7 9 New Zealand 2 3 2 7 Australia 10 8 11 2 Hong Kong 3 2 17 15 Taiwan 19 18 35 – South Korea 5 33 43 15 Malaysia 18 74 50 62 Thailand 26 102 85 89 China 90 115 100 91 Philippines 95 51 85 117 Indonesia 114 80 107 108 India 142 110 85 135 Japan 29 23 15 17 US 7 12 17 5 United Kingdom 8 12 14 14 France 31 58 26 20 Germany 14 28 12 6

Household debt to GDP (%) has gone up in Asia

20

Source: Haver, Morgan Stanley Research. E=Morgan Stanley Research estimates.

Countries shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Regional challenges – Household Debt high after years of rapid growth The great Asian consumption “story” may prove to be just that…

0

20

40

60

80

100

120

US UK Malaysia Singapore South Korea Taiwan Thailand China India

2002 2007 2016E

Household debt in Malaysia, Singapore, Korea, Taiwan and Thailand now close to or higher than in the US

A global leader in sleep apnea management with a full spectrum of respiratory care products

21

0

50

100

150

200

250

300

350

400

450

500

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

24.4% CAGR

Source: Resmed, FactSet, Schroders. As of 30 June 2016.

The companies shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Healthcare Resmed

Net income (US$ millions)

Prod

uct fe

ature

s

Patient requirements

Tencent revenue growth profile

22

Source: Company & Kleiner Perkins Internet Trends 2017, May 2017.

The companies shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Tencent Dominant platform with 1 billion users. Value lies in the ubiquity and stickiness of the platform

China mobile internet daily hours by app, 11/14–4/17

Long term drivers of semis and tech: – Artificial Intelligence – Cloud and servers – 5G – Robotics and automation – Internet of Things – Connected cars and autonomous driving – Virtual Reality/Gaming

Price (local)

PE (X) PB (X) EPS Gr (%) Yield (%) ROE

17E 18E 17E 18E 18E 17E

Taiwan Semiconductor Manf. 255.0 19.6 17.6 4.4 11.3 3.2 23.6

Hon Hai 92.2 12.7 9.7 1.4 30.5 4.4 11.4

Largan Precision 4005 21.1 17.4 4.8 21.2 2.1 30.3

Samsung Electronics 2,495,000 7.9 7.0 1.5 11.1 2.8 20.5

23

Source: BoAML, CISCO.

Source: Bloomberg, 31 Jan 2018 . Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Technology Reasonable valuations and good long-term growth – we are “paid to wait”

72.5 88.7 108.5

132.1 160.6

194.4

0

50

100

150

200

250

2015 2016 2017E 2018E 2019E 2020EGlobal data traffic

22% CAGR

Exabytes per month

Divergence between public and private banks1 Private banks’ share of advances and deposits is steadily increasing2

Source: 1Credit Suisse estimates, November 2017. 2Company data, Credit Suisse estimates, October 2017.

Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Indian private sector banks Healthy asset quality and rapidly rising market share

Net interest margin (%) As at Q1 2018

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Current loanmarket share

Last 9 months Last 12 months

Advances Deposits

2.2

2.4

2.6

2.8

3.0

3.2

3.4

3.6

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Public Sector Private Sector Banks

24

Key investment themes Tech leadership and innovation, Chinese upgrading, Indian finance

25

Source: Schroders. The companies shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Value and Quality

– HK Land, Swire Properties, Sun Hung Kai Properties

– CNOOC – Jardine Matheson, Jardine

Cycle and Carriage – Kbank – Fareastone

Chinese Consumption and Services – China Lodging – Brilliance China – China Intl Travel Service – Midea – China Pacific Insurance – Ping An – New Oriental – AIA – LVMH

Indian Domestic Demand – HDFC Bank – Zee Entertainment – Apollo Hospitals

World Class Exporters – Techtronic Industries – Giant – Johnson Electric – Shenzhou – Haitian – Zhejiang Sanhua

Tech ‘Super Cycle’ – Samsung – TSMC – Largan – Hon Hai – ASM Pacific – Hikvision

The ‘New’ Economy

– Alibaba – Tencent – Netease – Naver – CTrip

Developed market banks – HSBC – OCBC – BOC(HK)

Risk Factors

26

Schroder Asian Total Return Investment Company plc:

Investors in the emerging markets and Asia should be aware that this involves a high degree of risk and should be seen as long term in nature. Less developed markets are generally less well regulated than the UK, they may be less liquid and may have less reliable arrangements for trading and settlement of the underlying holdings.

The Company holds investments denominated in currencies other than sterling, investors should note that exchange rates may cause the value of these investments, and the income from them, to rise or fall.

The Company invests in smaller companies that may be less liquid than in larger companies and price swings may therefore be greater than investment companies that invest in larger companies.

The Company may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.

Investments such as warrants, participation certificates, guaranteed bonds, etc. will expose the fund to the risk of the issuer of these instruments defaulting on paying the capital back to the fund.

The Company can use derivatives to protect the capital value of the portfolio and reduce volatility, or for efficient portfolio management.

Important Information

27

The views and opinions contained herein are those of Robin Parbrook, Fund Manager. They do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds and are subject to change.

This presentation is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided is not intended to constitute investment advice, an investment recommendation or investment research and does not take into account specific circumstances of any recipient. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Information herein is believed to be reliable but Schroder Investment Management Ltd (Schroders) does not warrant its completeness or accuracy. The data has been sourced by Schroders and should be independently verified before further publication or use. No responsibility can be accepted for error 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 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 any overseas investments to rise or fall.

The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. Forecasts and assumptions may be affected by external economic or other factors.

Schroder Asian Total Return Investment Company plc:

Use of MSCI IPD data and indices: © and database right MSCI and its Licensors 2018. All rights reserved. MSCI has no liability to any person for any losses, damages, costs or expenses suffered as a result of any use of or reliance on any of the information which may be attributed to it.

The sectors, securities, regions and countries shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell.

Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority

28

Contact Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. schroders.com