Evelyn Partners Cuts Stake in Schroder Asian Total Return Investment Company Below 10% Threshold

Evelyn Partners Drops Below the 10% Voting Rights Level in ATR

The notification, completed on 24 June 2026 at 45 Gresham Street, London, confirms that Evelyn Partners Limited crossed below the 10% voting rights threshold in Schroder Asian Total Return Investment Company PLC on 23 June 2026. Under the DTR5 regime, UK-listed issuers must be notified promptly when a major Shareholder's position moves through a prescribed threshold, and holders are similarly obligated to file a TR-1 form. The 10% level is one of the key notifiable thresholds under UK disclosure rules, meaning the breach of this boundary — even by a fraction — demands formal regulatory disclosure.

The total number of voting rights now held by Evelyn Partners stands at 9,282,188, equating to 9.9955% of voting rights in the issuer. This compares with the previous notification, which recorded a position of 10.9898% — a difference of approximately one percentage point. The announcement does not specify the precise number of shares sold or the dates over which any disposal occurred prior to the threshold being crossed on 23 June 2026. The company did not disclose this figure in the announcement.

All Voting Rights Held Indirectly Through Controlled Undertakings

A notable feature of this notification is that Evelyn Partners holds its entire ATR position indirectly, with zero voting rights held directly under DTR5.1. The 9,282,188 voting rights are recorded exclusively as indirect holdings under DTR5.2.1, reflecting the group structure through which the shares are beneficially held on behalf of clients or subsidiaries rather than on Evelyn Partners' own Balance Sheet. This is a common arrangement for wealth management firms, where client Assets are held through regulated subsidiaries and managed discretionarily.

The chain of controlled undertakings detailed in section 9 of the TR-1 form shows that the voting rights are effectively distributed between two group entities. Smith & Williamson Holdings Limited, a controlled undertaking of Evelyn Partners Limited, accounts for the larger portion of the stake at 9.5522%. A further 0.4434% is attributed directly to Evelyn Partners Limited itself. Together, these two legs sum to the reported total of 9.9955%. The announcement provides no further breakdown of the number of shares held by each entity individually beyond these percentage figures.

Smith & Williamson Holdings Limited's Role Within the Evelyn Partners Group Structure

Smith & Williamson Holdings Limited is a well-established constituent of the Evelyn Partners Group, which was formed following the Merger of Tilney and Smith & Williamson in 2020. The group is one of the UK's largest integrated wealth management and professional services businesses. The presence of Smith & Williamson Holdings Limited as the vehicle holding the majority of the ATR position — at 9.5522% — underlines the structural complexity that is characteristic of large wealth managers when holding positions across multiple client portfolios or internal funds.

For regulatory purposes, Evelyn Partners Limited is identified as the ultimate controlling entity and therefore the person subject to the notification obligation. This means that even though Smith & Williamson Holdings Limited accounts for the bulk of the shares, it is Evelyn Partners Limited that bears responsibility for filing the TR-1 and for monitoring aggregate holdings across all controlled undertakings. The announcement states that the registered office of the notifying party is in London, United Kingdom, consistent with the group's UK-domiciled corporate structure.

No Financial Instruments or Derivatives Reported Alongside the Equity Stake

The TR-1 form distinguishes between voting rights attached to shares (section 8A) and voting rights accessible through financial instruments such as contracts for difference, Options, or other derivative instruments (sections 8B1 and 8B2). In this notification, the sub-totals for both 8B1 and 8B2 are nil, confirming that Evelyn Partners holds no financial instruments in respect of ATR that would give rise to additional or contingent voting rights. The entire exposure is therefore straightforward equity, without any leveraged or synthetic overlay that might complicate the true economic interest calculation.

The absence of financial instruments also means that the total reported position of 9.9955% reflects both the economic and voting interest in the company in an uncomplicated manner. There is no divergence between economic exposure and voting power, which can sometimes occur where derivative positions are involved. This simplicity is broadly typical for discretionary wealth managers holding shares on behalf of clients across pooled or segregated mandates.

Significance of Crossing Below 10% for Schroder Asian Total Return Investment Company

Schroder Asian Total Return Investment Company PLC is a UK-listed closed-end investment company that invests primarily in Asian equities, aiming to provide total returns for shareholders through a combination of Capital growth and income. As a relatively modest-sized investment trust, the movement of a single large shareholder's stake across a notifiable threshold is likely to attract attention from the investment trust community, retail investors, and institutional observers alike. The total number of voting rights in the issuer can be inferred from the disclosed data: if 9,282,188 shares equate to 9.9955%, the total issued share count would be approximately 92,862,000 shares, though the announcement does not explicitly state the total voting rights figure.

The shift from above 10% to below 10% is more than a cosmetic change. Some institutional mandates, index inclusion criteria, and corporate governance frameworks treat the 10% level as a meaningful threshold in terms of influence or classification of a holding as a substantial interest. A reduction below this mark may therefore have practical implications for how Evelyn Partners engages with the company at general meetings or interacts with the board, though the announcement itself makes no reference to any change in the nature of the relationship between the two parties.

Regulatory Context: DTR5 Major Shareholding Notifications Explained

Under Chapter 5 of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, any person who acquires or disposes of shares in a UK-listed company in a manner that causes their aggregate holding to cross above or below a prescribed percentage threshold must notify both the issuer and the FCA without delay, and in any event no later than four trading days after the triggering event. The prescribed thresholds are 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10%, and then each subsequent 1% increment up to 100%.

In the case of this notification, the threshold crossed was 10%. The triggering event occurred on 23 June 2026, and the issuer was notified on 24 June 2026, suggesting that the notification was delivered within the required timeframe. TR-1 forms filed in this manner are publicly disclosed via the Regulatory News Service and made available through the National Storage Mechanism, ensuring that all Market Participants have simultaneous access to information about changes in significant shareholdings. The publication of this form is a routine but important part of the UK's market transparency infrastructure.

Comparison With Evelyn Partners' Previous Notified Position in ATR

The previous notification on record showed Evelyn Partners holding 10.9898% of voting rights in Schroder Asian Total Return Investment Company, with no financial instruments reported at that time either. The current notification records a position of 9.9955%, representing a reduction of approximately 0.9943 percentage points. In terms of absolute share numbers, the current disclosure states 9,282,188 voting rights; however, the announcement does not disclose the number of shares held at the time of the previous notification, making it impossible to calculate the precise number of shares disposed of from the TR-1 form alone.

It is worth noting that in wealth management contexts, changes in aggregate discretionary holdings across multiple client accounts can occur gradually as clients make withdrawals, switch mandates, or as portfolio managers rebalance. The reduction may therefore not represent a single Block Trade or a deliberate strategic exit from ATR, but rather an accumulation of smaller client-driven changes that eventually tipped the aggregate position below the regulatory threshold. The announcement provides no commentary on the motivation behind the change, as TR-1 forms are not required to include such explanations.

What the Remaining 9.9955% Stake Tells Investors About Institutional Support for ATR

Even after the reduction, Evelyn Partners remains a significant shareholder in Schroder Asian Total Return Investment Company, holding just under 10% of the company's voting rights. A holding of this magnitude in a UK investment trust implies a substantial, ongoing commitment to the fund's strategy, whether on behalf of clients or through internal mandates. Investment trusts often benefit from having large, stable institutional shareholders, as they can provide a degree of price support in the Secondary Market and reduce share price Volatility relative to net asset value.

The fact that the stake remains close to the 10% level — rather than being reduced to, say, 5% or below — may suggest that the disposal was driven by client redemptions or Rebalancing rather than a fundamental reassessment of ATR's investment merits. That said, the announcement contains no guidance, commentary, or forward-looking statements that would allow a definitive conclusion to be drawn about Evelyn Partners' intentions regarding its remaining stake. Investors may be watching future TR-1 filings to determine whether the position stabilises or continues to decline.

Immediate Share Price Impact and Market Context for ATR

The immediate share price impact was not clear from available public information. TR-1 major shareholding notifications are required to be published promptly following a threshold crossing, meaning market participants will have been aware of the change shortly after the 24 June 2026 filing date. Whether the disclosure prompted any notable trading activity in ATR shares in the days following publication would require reference to market data not contained within the announcement itself.

Schroder Asian Total Return Investment Company operates in the competitive Asian equity investment trust space, where sentiment is influenced not only by company-specific factors but also by broader macroeconomic developments in Asia, currency movements, and global risk appetite. The reduction in a major shareholder's stake, while newsworthy from a regulatory perspective, is one of many variables that investors in the trust will be monitoring alongside net asset value performance, discount or premium movements, and the broader geopolitical backdrop affecting Asian markets.

Next Steps: Monitoring Future TR-1 Filings and the ATR Shareholder Register

Following this notification, market observers will be alert to whether Evelyn Partners files further TR-1 forms in relation to its ATR holding. Under DTR5, any future crossing of the 9% threshold downwards — or a recovery above 10% — would require a new notification. If the group's aggregate position across its controlled undertakings were to fluctuate near the 9.9955% level due to ongoing client activity, further disclosures could follow in relatively short order.

For investors in Schroder Asian Total Return Investment Company, the overall composition of the shareholder register remains relevant to questions of governance, Liquidity, and long-term price stability. The announcement does not indicate whether any other major shareholders have changed their positions concurrently, nor does it provide information about the total number of TR-1 notifications ATR has received in the current year. Interested parties would need to consult the full regulatory announcements history for ATR to build a comprehensive picture of the trust's institutional shareholder landscape as it stands following this disclosure.