Schroder Income

Growth Fund plc Income strategies using investment

companies – Adviser Seminar 2016

December 2016 | For professional advisers only. This material is not suitable for retail clients

Overview

Schroder Income Growth Fund plc Seeking attractive income opportunities in UK equities

The Company’s objectives are to provide real growth of

income and capital growth as a consequence of the rising

income

Fundamental research at the heart of investment

approach

Targets outperformance by constructing a portfolio of

shares containing companies that should grow dividends

faster than the rate of inflation, together with companies

that can sustain dividend payouts but trade on attractive

yields

The Company has raised its dividend consistently for the

last 21 years and is included in the AIC’s list of ‘Dividend

Heroes’*

Source: Schroders. *Source: AIC, 17 June 2016

Source for logo: Schroders as at 2016.

1

+

Annualised dividend growth of 4.6% 1996 – 2016, versus inflation of 1.9%

Annual total dividends** (pence per share)

Schroder Income Growth Fund plc Unbroken 21 year record of annual distribution increases for shareholders

Source: Schroders. *Part year, fund launched March 1995. **To 31 August. CPI August 1995 to August 2016.

Past performance is not a guide to future performance and may not be repeated.

2

0

1

2

3

4

5

6

7

8

9

10

11

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

1.17 1.21 1.09 1.06 1.20 0.97 1.01 0.93 0.99 1.02 1.10 1.08 1.00 1.13 0.94 0.85 0.95 1.05 1.04 1.07 1.10 1.14

Dividend cover

The fund’s 2016 dividend is 66% greater than if it had just kept pace with

consumer price inflation since launch

Dividends per share versus the rate of inflation

Schroder Income Growth Fund plc Meeting fund’s objective of providing investors with real growth of income

100

120

140

160

180

200

220

240

260

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CPI* Dividends per share

Source: Schroders, Morningstar, Thomson Reuters Datastream. To each year end of 31 August

*Prior to 1 September 2013 the fund was measured against RPI. Past performance is not a guide to future performance and may not be repeated.

3

66%

6.4p

10.6p

Realising the benefits of an investment trust

Schroder Income Growth Fund plc The benefits of our investment trust – what are they?

5

Source: Schroders. Past performance is not a guide to future performance and may not be repeated.

• Allows us to make the most of opportunities in the market with the aim of boosting returns Gearing

• Allows us to raise dividend year-on-year irrespective of market environment to our shareholders’ benefit Revenue reserves

• Able to conduct share buy-backs

• Discount regularly reviewed by the Board Discount/premium

• Performance is unaffected by asset flows and this aids us in our long-term investment approach Long-term view

• Ability to overwrite stocks held in portfolio using short dated options to generate additional portfolio income Covered call writing

• For added diversification, access to a wider dividend opportunity set and sectors underrepresented in the UK market Overseas exposure

Schroder Income Growth Fund plc The benefits of our investment trust – how we currently apply them

6

Source: Schroders. Past performance is not a guide to future performance and may not be repeated. *As at 23 November 2016

• 8.5% as at 31 August 2016

• £20m facility fully drawn, £10m facility available Gearing

• Rebuilding reserves whilst dividend environment robust

• Reserves equal to 7.7p/share as at 31 August 2016 Revenue reserves

• Currently at a -7.2%, 12 month range of -12.9 to -3.4%*

• Regularly reviewed by the Board Discount/premium

• Turnover of the trust is low (c.20% p.a.) and the average holding period is approximately 5 years Long-term view

• Utilised in 2010-2013, generated modest incremental income

• Not currently used due to low market volatility Covered call writing

• 5.6 % of fund was invested in overseas holdings as at 31 August 2016 Overseas exposure

Investment strategy

The Prime UK Equity Team

8

Source: Schroders, as at 30 September 2016

Experienced, stable team

– Over 70 years combined investment

experience together at Schroders

– Average tenure of client relationships

>10 years

Proven investment process

– Research-based approach to identify

best ideas

– Build portfolio within a risk-controlled

framework

Long-term outperformance record

– Our process is aligned with client

objectives for consistent performance

– Track record of strong risk-adjusted

returns

Team well supported by Pan European research analysts, trading, risk and product

specialists

Jessica

Ground

Matt Bennison – dedicated UK

Analyst for Prime UK equity team

Andy

Simpson

Sue

Noffke

** Remove from final presentation **

Long term, disciplined, fundamental investors

Schroder Income Growth Fund plc Belief in active management

Look to exploit market inefficiencies

Fundamental research at heart of

investment process – collaborative

approach with in-house analysts

Bottom up stock pickers

Focus on out of favour companies at

time of purchase

Disciplined portfolio construction with

close attention to risk

Take a long term view (3 – 5 years)

9

Key current themes Key examples

Sustainable real dividend growth

Free cash flow generation

Increased payout ratio

Sustainable and attractive yield

Schroder Income Growth Fund plc Portfolio strategy as at November 2016

Stock examples are for illustrative purposes only and are not a recommendation to buy or sell shares

Source: Schroders, as at November 2016

10

Portfolio weight (%) FTSE All Share weight (%)

Large cap 74.0 80.4

Mid cap 18.0 16.1

Small cap 0.0 3.5

Cash 2.4 -

Overseas 5.6 -

Total 100.0 100.0

Schroder Income Growth Fund plc Portfolio positioning as at 31 August 2016

Source: Schroders, as at 31 August 2016

11

** Remove from final presentation **

Stocks underlined and in bold are new holdings or exited positions

Stock examples are for illustrative purposes only and are not a recommendation to buy or sell shares

Source: Schroders, 31 October 2015 to 31 October 2016

12

Schroder Income Growth Fund plc 12 months' portfolio activity

Sold

Aviva

Carnival

Centrica

Direct Line

GlaxoSmithKline

Imperial Brands

Intermediate Capital

Pearson

Société Générale

Swedbank

Synthomer

Unite

Bought

Assura

BAE

BP

Burberry

ENI

Galp

Lloyds

LSE

Roche

Shell

Smurfit Kappa

Market outlook;

2016 political shock implications

UK: Brexit

USA: Trump election victory

UK stock market revenue by geography

14

Source: Schroders, FTSE, as at 29 February 2016. For FTSE All-Share Index

28%

21%

18%

24%

9%

Our view of Brexit winners and losers by sector prior to vote

We were generally comfortable with portfolio positioning prior to the referendum

15

For illustrative purposes only and not to be considered a recommendation to buy or sell

Source: Schroders

FX winners: Risks negatively skewed:

Real estate London’s status as financial centre

uncertain. London real estate vulnerable

to lower rent + funding issues. Market

started pricing in risk

Domestic banks

Cyclical + sentiment headwinds but

capital base strong enough to weather

storm + valuations low.

House builders

100% domestic, cyclical and cost

pressures.

Food retail

Non-discretionary consumer

purchase and food price

inflation. Upside valuation risk

Software

Global and GBP weakness

Capital Goods &

Resources

Global & GBP weakness

Consumer staples and

Pharmaceuticals

Defensive, global & GBP weakness

Airlines

Cyclical, regulatory

uncertainty and cost

pressures. Valuation

risk

General retailers

Domestic revenue, $ cost

base and cyclical. Some

valuation risk but stock

specific

80

90

100

110

120

Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16

FTSE 100 FTSE 250

FTSE 100 vs FTSE 250; divergence since Brexit Total returns: 13.5% for FTSE 100 vs. 4.0% for FTSE 250

16

Source: Thomson DataStream, 1 January 2016 to 22 November 2016. Rebased to 100 on 1 January 2016. Total returns for year to date 1 January to 22 November

2016

Total return (rebased to 100)

9.5%

100

120

140

160

180

200

220

Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16

UK large cap has lagged Mid cap performance over many years due to

superior EPS growth from mid caps (particularly from 2010-2015)

17

Mid cap area is both more focused on UK economy and more cyclical sectors

FTSE 250 EPS relative to FTSE 100** FTSE 250 price relative to FTSE 100*

Source: Datastream. *1 Jan 2009 – 16 November 2016. Rebased to 100 = 1 Jan 2009 **12m forward EPS from 1 January 199 to 16 November 2016

Mid caps outperform

Large caps outperform

90

110

130

150

170

190

210

230

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

President Trump’s policy proposals Markets focused on infrastructure spending and trade policies

18

Source: Schroders Economics Group, Trump Campaigns, 9 November 2016

Personal tax

Reduce personal tax rates to 12%, 25% and 33%

Repeal the Alternative Minimum Tax (AMT)

Tax capital gains and dividends at 20%

Tax carried interest as ordinary income

Allow deduction of childcare expenses

Repeal estate tax

Trade

Renegotiate NAFTA

Withdraw from TPP

Label China as a currency manipulator

Impose duties on China and Mexico

Initiate unfair trade actions against China at the

WTO

Corporate

tax

10% tax on accumulated untaxed foreign profits

Reduce corporation tax and pass through income

to 15%

Repeal most business tax preferences

Spending

Cut overall government spending

Substantial infrastructure package and spending

on veterans, military and police

Immigration

Build a wall on southern border

Increase enforcement of immigration laws and

deportation

Nationwide e-verify

Healthcare

Allow health insurance to be purchased across

state lines

Negotiate lower drug prices for Medicare

Repeal Affordable Health Care Act

Allow imports of prescribed drugs

Central banks retreat. 2017 likely first time since 2006 that markets will not

benefit from a big monetary easing

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

50 55 60 65 70 75 80 85 90 95 00 05 10 15 20

Federal Reserve monetary base (M1), US$bn

Federal Reserve monetary base

Peak liquidity Era of excess central bank liquidity is peaking

19

Source: BofA Merrill Lynch Global Investment Strategy, Federal Reserve Bank of St Louis, January 1950 to October 2016.

Forecast risk warning: Please refer to the important information slide at the end of this presentation.

QE1

QE2

QE3

Bond yields have risen from the multi-year lows seen

in July 2016

20

Source: Thomson DataStream, 31 October 2011 to 22 November 2016

Government bond yields (%)

Yield %

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2011 2012 2013 2014 2015 2016

US 10 year UK 10 Year

US

UK

Banks and Staples valuations and performance are correlated and inversely correlated

Valuation; US bond yields a major factor in sector

performance

21

Source: Morgan Stanley, Bloomberg, Thomson Reuters Datastream, lhs 1 January to 21 November 2016, rhs 10 January 2000 to 18 November 2016

European banks relative and US 10Y bond yield Staples price relative and US 10Y bond yield

1.2

1.4

1.6

1.8

2.0

2.2

2.4

75

80

85

90

95

100

105

Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

MSCI Europe Banks Relative Performance

US 10Y Bond Yield (%) - RHS

1

2

3

4

5

6

770

100

130

160

190

220

250

280

310

340

Jan-00 Jan-04 Jan-08 Jan-12 Jan-16

MSCI Europe Consumer Staples RelativePerformance

Dividend outlook

UK market dividends boosted by sterling

devaluation but, at the same time, sterling weakness

raises inflation outlook

Long-term dividend payout ratio (%)

UK equity market considerations FTSE All Share dividend payout

23

Source: Lazarus, data shown from 3 January 1996 to 4 November 2016

Dividend payout ratio 1996 to 4 November 2016

Dividend payout ratio at

historic highs but looks to be

stabilising

40% of UK market dividends

from companies that report in

US dollars and Euros

36

40

44

48

52

56

60

64

68

1996 1999 2002 2005 2008 2011 2014

The weak pound boosted oil, beverages, pharma, banks and mining earnings and dividends in 2016, further gains in 2017

Headline dividends set to hit £84.7bn this year, up 6.6% reflecting huge exchange rate gains and strong specials

Specials will top £6bn in 2016; more than double the 2015 level

Underlying dividends will be £78.6bn, an increase of 2.7% year on year

However, dividend growth at company level is disappointing and without the devaluation of the pound underlying

dividends would have fallen

UK dividends

UK equity market dividends Brexit sterling devaluation is supercharging UK dividends

40

50

60

70

80

90

100

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e

Regular dividends Special dividends

Source: Capita Registrars, UK Dividend Monitor, October 2016. 2016 is an estimate and is not guaranteed.

For illustrative purposes only and should not be viewed as a recommendation to buy or sell

Forecast risk warning: Please see the information slide at the end of this presentation

GBP bn

24

Fall in sterling to exacerbate the rise in UK inflation

25

Source: Thomson Reuters Datastream, ONS, UN, Schroder Economics Group, 25 October 2016

UK food price inflation vs. wholesale prices

-20%

-10%

0%

10%

20%

30%

40%

50%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

05 06 07 08 09 10 11 12 13 14 15 16 17

All food (ONS), lhs UN food price index in £ (6m lead), rhs

Y/Y Y/Y Following years of food price

deflation, the fall in sterling is

expected to lead to a

reversal of this trend

The fall in the pound will

raise energy, food and import

prices for goods generally

About a third of CPI is made

up of imported goods. The

pass through from currency

devaluation tends to be a

third, spread over 2-3 years

Looking at a 6 month lead of

the UN food price index, food

price inflation could

potentially rise to over 6%

y/y - similar to 2011 highs

Performance

Schroder Income Growth Fund plc Performance - NAV

27

Source: Table Schroders, bid to bid price with net income reinvested, net of the ongoing charges and portfolio costs and, where applicable, performance fees, in

GBP. Chart – Thomson Datastream, 1 January 2010 to 31 October 2016, Fund NAV = total return of theoretical diluted net asset value, with dividends re-invested on

a net basis, benchmark NAV – total return. *In November 2010 as maternity cover prior to formal takeover in July 2011. Past performance is not a guide to future

performance and may not be repeated.

Periods to 31 October 2016 3 months % 1 year % 3 years % (p.a.) 5 years % (p.a.)

NAV 3.5 8.8 6.3 11.4

FTSE All Share index 4.2 12.2 5.3 9.5

Difference -0.7 -3.4 +1.0 +1.9

Schroder Income Growth Fund plc NAV relative to FTSE All Share Index

Rebased to 100 at 1 January 2010

90

100

110

120

130

Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16

Sue Noffke took over as

portfolio manager of the fund*

Schroder Income Growth Fund plc Performance – share price

28

Source: Table – Schroders, bid to bid price with net income reinvested, net of the ongoing charges and portfolio costs and, where applicable, performance fees, in

GBP. Chart – Thomson Datastream, 1 January 2010 to 31 October 2014, share price return. *In November 2010 as maternity cover prior to formal takeover in July

2011. Past performance is not a guide to future performance and may not be repeated

Periods to 31 October 2016 3 months % 1 year % 3 years % (p.a.) 5 years % (p.a.)

Share Price 1.0 0.8 2.2 9.6

FTSE All Share index 4.2 12.2 5.3 9.5

Difference -3.2 -11.4 -3.1 +0.1

Schroder Income Growth Fund plc share price relative to FTSE All Share Index

Rebased to 100 at 1 January 2010

90

100

110

120

130

Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16

Sue Noffke took over as

portfolio manager of the fund*

Oil & Gas 13.2 1.7 0.1 0.1 +0.2

Health Care 10.5 0.8 0.1 0.1 +0.2

Industrials 1.1 -9.5 0.0 0.3 0.0

Technology 4.2 2.7 0.5 -0.6 -0.1

Utilities 2.6 -1.3 0.0 -0.3 -0.3

Consumer Services 10.9 -0.8 0.0 -0.4 -0.3

Telecommunications 8.2 3.5 -0.5 -0.1 -0.6

Basic Materials 3.1 -2.5 -0.5 -0.2 -0.7

Consumer Goods 19.4 2.3 -0.1 -0.7 -0.8

Financials 26.7 3.2 -0.2 -1.0 -1.2

Sector

Portfolio

weight

(%)

Active

weight

(%)

Sector

allocation

(%)

Impact

(%)

Stock

selection

(%)

6 months to 31 October 2016

Schroder Income Growth Fund plc Portfolio attribution – sector

For illustrative purposes only and not a recommendation to buy or sell shares.

Source: Schroders, FactSet, to 31 October 2016

Portfolio weight and active weight are average weights excluding cash

Active weight is the average stock weight relative to the FTSE All-Share

Impact is the contribution to performance relative to the FTSE All-Share

Past performance is not a guide to future performance and may not be repeated.

29

12 months to 31 October 2016

Technology 3.9 2.4 0.4 0.2 +0.5

Health Care 10.2 1.1 0.0 0.3 +0.3

Consumer Services 11.5 -0.8 0.1 0.0 0.1

Oil & Gas 11.0 0.0 0.0 0.1 0.1

Financials 29.3 4.9 -0.9 0.7 -0.2

Utilities 2.7 -1.3 0.4 -0.3 -0.3

Consumer Goods 19.1 2.0 0.0 -0.4 -0.4

Industrials 0.6 -9.9 -0.4 -0.1 -0.5

Telecommunications 8.5 3.5 -0.5 -0.2 -0.6

Basic Materials 3.1 -2.0 -1.1 -0.2 -1.3

Sector

Portfolio

weight

(%)

Active

weight

(%)

Sector

allocation

(%)

Impact

(%)

Stock

selection

(%)

12 months to 31 October 2016

Schroder Income Growth Fund plc Portfolio attribution - stocks

For illustrative purposes only and not a recommendation to buy or sell shares. Source: Schroders, FactSet, periods to 31 October 2016

Portfolio weight and active weight are average weights. Active weight is the average stock weight relative to the FTSE All-Share

Relative return is the share price return relative to the FTSE All-Share. Impact is the contribution to performance relative to the FTSE All-Share

Past performance is not a guide to future performance and may not be repeated.

30

6 months to 31 October 2016

Micro Focus International 2.5 2.3 30.5 +0.5

John Laing Group 1.8 1.8 15.9 +0.2

Rio Tinto 3.1 1.7 12.9 +0.2

Nordea Bank 1.3 1.3 17.8 +0.2

Burberry Group 1.5 1.3 14.8 +0.2

ITV 2.2 1.9 -35.4 -0.7

BT Group 3.7 2.1 -25.3 -0.6

Taylor Wimpey 1.7 1.5 -31.3 -0.5

ARM Holdings 0.0 -0.6 69.1 -0.4

Halfords Group 1.3 1.2 -29.2 -0.4

Top 5 detractors

Portfolio

weight

(%)

Active

weight

(%)

Relative

performance

(%)

Impact

(%)

Top 5 contributors

Portfolio

weight

(%)

Active

weight

(%)

Relative

performance

(%)

Impact

(%)

Micro Focus International 2.3 2.2 62.7 +1.0

Barclays 0.0 -1.5 -27.6 +0.5

John Laing Group 1.7 1.7 33.8 +0.4

Shire 0.0 -1.6 -17.3 +0.3

RELX 2.6 1.9 16.8 +0.3

ITV 2.5 2.1 -39.3 -0.9

Legal & General Group 3.3 2.6 -27.1 -0.7

Glencore 0.0 -0.8 110.0 -0.7

BT Group 4.0 2.2 -28.6 -0.7

Taylor Wimpey 1.8 1.5 -36.5 -0.6

Top 5 contributors

Portfolio

weight

(%)

Active

weight

(%)

Relative

performance

(%)

Impact

(%)

Top 5 detractors

Portfolio

weight

(%)

Active

weight

(%)

Relative

performance

(%)

Impact

(%)

Schroder Income Growth Fund plc

31

A ‘dividend hero’

1Source: Schroders, up to 31 August 2016. Fund launched in March 1995. CPI inflation calculated from August 1995 to August 2016 2Source: Schroders, 1996-2016. 3Source: Schroders, Morningstar, as at 31 October 2016. Fund launch date was 09 March 1995. NAV ex income total return

Past performance is not a guide to future performance and may not be repeated.

Source for logo: Schroders as at March 2016.

Aim of fund:

Provide investors with growing income (ahead of inflation) and

capital growth as a consequence of the rising income

Outcome:

Dividend has grown in each year since launch, with average

growth of 4.6% per annum – over double the consumer price index

rate of inflation (1.9% per annum)1

2016 dividend was 66% greater than if it had just kept pace with

inflation since launch2

Net asset value total return of 581.8% since launch.3

+

Appendix

Schroder Income Growth Fund plc Sector positions relative to FTSE All-Share Index as at 31 October 2016

33

Sector examples are for illustrative purposes only and are not a recommendation to buy or sell shares

Source: Schroders, FactSet, as at 31 October 2016

Length of bars is illustrative and not a true representation of the underweight or overweight position

Underweight vs. Index Overweight vs. Index Fund weight

8.6% Life Insurance 4.5%

7.5% Media 3.7%

4.4% Software & Computer Services 3.6%

5.9% Financial Services 3.2%

8.3% Tobacco 2.5%

3.4% Fixed Line Telecommunications 1.8%

4.0% Personal Goods 1.7%

4.2% Mobile Telecommunications 1.3%

13.3% Oil & Gas Producers 1.2%

0

Support Services -5.1% 0.0%

Travel & Leisure -4.4% 0.0%

Equity Investment Instruments -4.1% 0.0%

Beverages -2.8% 0.0%

Mining -2.0% 3.7%

Food & Drug Retailers -1.4% 0.0%

Construction & Materials -1.3% 3.7%

Gas, Water & Multiutilities -1.2% 0.0%

Nonlife Insurance -1.1% 0.0%

General Retailers -0.9% 0.0%

Health Care Equipment & Services -0.9% 0.0%

Schroder Income Growth Fund plc Top fifteen active stock positions relative to FTSE All-Share Index

34

Stock examples are for illustrative purposes only and are not a recommendation to buy or sell shares

Source: Schroders, FactSet, as at 31 October 2016

Length of bars is illustrative and not a true representation of the underweight or overweight position

Underweighting Market Overweighting

Diageo -2.5% Aviva 2.6%

Reckitt Benckiser -2.1% Micro Focus 2.6%

Shire -1.9% Legal & General 2.2%

National Grid -1.8% Roche 2.1%

Barclays -1.5% Rio Tinto 2.1%

Glencore -1.3% ICAP 2.1%

BHP Billiton -1.2% John Laing Group 2.0%

HSBC -1.2% BT Group 1.9%

Compass Group -1.1% ITV 1.9%

WPP -1.1% Nordea Bank 1.9%

CRH -1.0% Lloyds Banking 1.8%

Standard Chartered -0.9% RELX 1.8%

Tesco -0.8% Bellway 1.6%

SSE -0.7% Vodafone Group 1.5%

Experian -0.7% British American Tobacco 1.4%

Largest 15 holdings

Schroder Income Growth Fund plc Portfolio positioning at 31 October 2016

Portfolio weight % Index weight % Active weight %*

Royal Dutch Shell 7.0 7.7 -0.7

British American Tobacco 5.5 4.0 1.4

HSBC Holdings 4.4 5.6 -1.2

Vodafone Group 4.2 2.7 1.5

BP 4.0 4.2 -0.1

Rio Tinto 3.7 1.6 2.1

AstraZeneca 3.6 2.7 0.9

GlaxoSmithKline 3.6 3.6 0.0

Lloyds Banking 3.5 1.7 1.8

Aviva 3.4 0.8 2.6

BT 3.4 1.4 1.9

Imperial Brands 2.8 1.8 1.0

Micro Focus 2.8 0.2 2.6

Legal & General 2.8 0.6 2.2

RELX 2.6 0.7 1.8

57.3 39.4

Stock examples are for illustrative purposes only and are not a recommendation to buy or sell shares. *Numbers may not equate due to rounding

Source: Schroders, FactSet, as at 31 October 2016

35

Next 16 – 30 holdings

Schroder Income Growth Fund plc Portfolio positioning at 31 October 2016

Stock examples are for illustrative purposes only and not a recommendation to buy or sell shares.*Numbers may not equate due to rounding

Source: Schroders, FactSet, as at 31 October 2016

Portfolio weight % Index weight % Active weight %*

Prudential 2.4 1.6 0.9

Unilever 2.3 1.9 0.4

ICAP 2.2 0.1 2.1

ITV 2.2 0.3 1.9

Roche 2.1 -- 2.1

John Laing 2.0 0.0 2.0

Nordea Bank 1.9 -- 1.9

Centrica 1.9 0.5 1.3

Bellway 1.8 0.1 1.6

Burberry Group 1.7 0.3 1.4

Sage Group 1.6 0.4 1.3

BAE Systems 1.6 0.8 0.8

Pearson 1.5 0.3 1.2

Taylor Wimpey 1.5 0.2 1.3

IMI 1.4 0.1 1.3

Total 28.2 6.7

36

For professional advisers only. This material is not suitable for retail clients

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 amount originally invested.

The views and opinions contained herein are those of Sue Noffke, UK Equities Fund Manager, and may not necessarily represent views expressed or reflected in

other Schroders communications, strategies or funds. Securities and sectors mentioned are for illustrative purposes only and not a recommendation to buy or sell.

Schroders has expressed its own views and these may change. The data contained in this document has been sourced by Schroders and should be independently

verified before further publication or use

This presentation is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an

offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or

tax advice, or investment recommendations. Information herein is believed to be reliable but Schroder Unit Trusts Limited (Schroders) does not warrant its

completeness or accuracy. The data has been sourced by Schroders and should be independently verified before further publicat ion or use. No responsibility can be

accepted for error of fact or opinion. This does not exclude or restrict any duty or liability that Schroders has to its customers under the Financial Services and

Markets Act 2000 (as amended from time to time) or any other regulatory system. Reliance should not be placed on the views and information in the document when

taking individual investment and/or strategic decisions.

Portfolios which invest in a smaller number of stocks carry more risk than funds spread across a larger number of companies. The Company will invest solely in the

companies of one country or region. This can carry more risk than investments spread over a number of countries or regions. As a result of the fees being charged

partially to capital, the distributable income of the fund may be higher, but the capital value of the fund may be eroded. 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.

Forecast risk warning: The forecasts included in this document 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. We accept no responsibility for any errors of fact or opinion and assume no obligation to provide

you with any changes to our assumptions or forecasts. Forecasts and assumptions may be affected by external economic or other factors.

Source for rating: Morningstar as at 31 October 2016

Issued in November 2016 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: 4191730 England. Authorised and regulated by

the Financial Conduct Authority.

Important information

37