Interim Results

Schroder Oriental Income Fund Ltd
11 May 2006



11 May 2006

                           UNAUDITED INTERIM RESULTS

The Directors of Schroder Oriental Income Fund Limited (the 'Company') announce
the unaudited interim results for the period ended 28 February 2006.


                         For the period from 28 July 2005
                              to 28 February 2006


Income Statement                                                             Revenue      Capital        Total
                                                                               £'000        £'000        £'000
Gains on investments                                                               -        9,304        9,304

Exchange losses                                                                    -        (535)        (535)
Income                                                                         5,831            -        5,831
Investment management fees                                                     (205)        (479)        (684)
Performance fees                                                                   -        (208)        (208)
Administrative expenses                                                        (139)            -        (139)
Net return before finance costs and taxation                                   5,487        8,082       13,569

Interest payable                                                               (208)        (461)        (669)
Net return on ordinary activities before taxation                              5,279        7,621       12,900

Tax on ordinary activities                                                     (479)            -        (479)
Return on ordinary activities after tax for the period                         4,800        7,621       12,421
attributable to equity shareholders
Return per ordinary share                                                      3.10p        4.93p        8.03p


The total column represents the profit and loss account of the Company. All
revenue and capital items in the above statement derive from continuing
operations.

The Company has no recognised gains or losses other than the result for the
period as set out above, accordingly, no Statement of Total Gains or Losses is
required.


Reconciliation of Movements in Shareholders' Funds (Unaudited)


                                                     Share          Share Premium        Capital   Revenue Reserve
                                                     Capital              Account        Reserve

                                                            £'000           £'000          £'000             £'000
Issue of ordinary shares                                    1,571         153,887              -                 -
Net realised gains during the period                            -               -          7,621                 -
Retained profit for the period                                  -               -              -             4,800
Balance at 28 February 2006                                 1,571         153,887          7,621             4,800






                                                                                          For the period to
                                                                                          28 February 2006
Abridged Cash Flow Statement (Unaudited)                                                                    £'000

Net cash inflow from operating activities                                                                   3,483

Net cash outflow from investing activities                                                              (183,053)

Net cash inflow from financing                                                                            185,321

Net cash inflow                                                                                             5,751




Abridged Balance Sheet (Unaudited)

                                                                                         At 28 February 2006
Assets                                                                                                      £'000

Investments at fair value through profit or loss                                                          193,033

Net current liabilities                                                                                  (25,154)

Net assets                                                                                                167,879

Net asset value per share (note 5)                                                                        106.90p




Notes to the financial statements

1 General Information

The Company was incorporated in Guernsey on 17 June 2005 and commenced trading
on 28 July 2005. The results reported here are for the period from 28 July 2005
to 28 February 2006. This is the first period of accounts, hence no comparatives
figures are available. These are not the statutory accounts. The first set of
statutory accounts will be for the period ending 31 August 2006.

Following the Placing and Offer for Subscription, 150,000,000 shares were issued
and three further issues of shares were made, bringing the total number of
shares in issue as at 28 February 2006 to 157,050,000.

2 Accounting Policies

a Basis of Accounting

The financial statements have been prepared in accordance with applicable
accounting standards in the United Kingdom and on the basis that all activities
are continuing.

The Directors consider it is appropriate to present the financial statements in
accordance with the Statement of Recommended Practice - Financial Statement of
Investment Trust Companies ('the SORP'), revised in December 2005, although the
SORP applies only to investment trust companies.

b Investments

Following the introduction of FRS26 - Financial Instruments: Recognition and
Measurement, listed investments are now designated as held at fair value through
profit and loss with fair value deemed to be bid market prices. Changes in fair
value of all investments held at fair value are recognised in the Income
Statement. On disposal, realised gains and losses are also recognised in the
Income Statement. Transaction costs, which include broker commissions,  have
been included within the capital account.

c Foreign Currencies

The currency of the primary economic environment in which the Company operates
is expressed in pound sterling which is the functional and presentational
currency of the Company.

Transactions in currencies other than sterling are recorded at the rates of
exchange prevailing on the dates of the transactions. At each balance sheet
date, monetary items and non-monetary assets and liabilities that are fair
valued and are denominated in foreign currencies are retranslated at the rates
prevailing on the balance sheet date.

Gains and losses arising on retranslation are included in net profit and loss
for the period where investments are classified as fair value through profit and
loss.

d Income

Dividend income from investments is recognised when the right to receive payment
has been established, normally the ex-dividend date. Where dividends are
received in the form of additional shares rather than cash, the amount of cash
dividend foregone is recognised as income. Any excess in the value of shares
received over the amount of cash dividend foregone is recognised as a gain in
the income statement. Interest from fixed income securities and bank interest
are accrued on a time basis.

e Expenses and interest payable

All expenses and interest payable are accounted for on an accruals basis.
Expenses are split and presented as capital items where a connection with the
maintenance or enhancement of the value of the investments held can be
demonstrated and accordingly the investment management fee and finance costs
have been allocated 30% to revenue and 70% to capital, as the directors believe
it reflects the long-term nature of the investment returns of the company.

The performance fee will be allocated 100% to capital, as the directors believe
it reflects capital performance.

Transaction costs are included in gains and loss on investments. Purchase
transaction costs amounted to £477,241 and sales transaction costs amounted to
£65,405 for the period to 28 February 2006.

3 Dividends

The directors have declared a first interim dividend for the period ending 31
August 2006 of 2.475 pence per ordinary share payable on 5 May 2006 to
shareholders registered on 18 April 2006. The shares were quoted ex-dividend on
12 April 2006.

4 Revenue return per share

Revenue return per share is based on the revenue attributable to shareholders of
£4,800,000 and on 154,702,778 shares, being the weighted average number of
shares in issue during the period.

5 Net asset value per share

Net asset value per share is based on the net assets attributable to the
shareholders of £167,879,000 and on 157,050,000 shares in issue at the end of
the period.


Chairman's Statement

This is my first opportunity to report to you since the successful launch of the
Company in July 2005, and I am pleased to welcome all shareholders. The net
proceeds of the launch were £148.15 million.

Performance

During the period from launch to 28 February 2006, the Company produced a net
asset value total return of 8.2%.

Since launch, the Company's share price has traded at a premium to net asset
value, reflecting strong market sentiment towards the Company and its asset
class. The Company's shares commenced trading at 107.25p per share, well above
the issue price of 100p per share, and produced a total return of 8.8% during
the period from launch to 28 February 2006.

Full details of investment performance, as well as portfolio activity, policy
and outlook, may be found in the Investment Manager's Review.

Dividends

I am pleased to report that the Directors of the Company have declared the
payment of a first interim dividend of 2.475 pence per share for the period
ending 31 August 2006. The dividend was paid on 5 May 2006 to shareholders on
the Register on 18 April 2006.

In accordance with the indications set out in the prospectus published in July
2005, the Company intends to pay two interim dividends for the financial year to
31 August 2006. This first interim dividend covers the seven-month period from
launch to 28 February 2006 and the second interim dividend, expected to be
declared in September 2006, will cover the six-month period from 1 March to 31
August 2006.

Total dividends for the 13-month period ending 31 August 2006 should enable the
Company to meet indications given in the prospectus, pro-rated for the
additional one month period.

Share Issuance

As indicated above, demand for the Company's shares remained strong during the
period under review, and our shares have traded at a premium to net asset value.
The Directors have issued an additional 7,050,000 shares to investors since
launch at a premium to net asset value to satisfy additional demand. Should
demand for the Company's shares remain strong, we will continue to issue shares
at a premium to net asset value in circumstances where we believe such issuance
to be in the interests of our shareholders.

Robert Sinclair
Chairman

11 May 2006


Investment Manager's Review

From the launch of the Company on 28th July 2005 until the end of the first
interim period, the net asset value recorded a total return of +8.2%. Income
generation has been well up to expectations, and a dividend of 2.475p is
proposed.

It has been a good period for equity returns, with the MSCI All Country Pacific
ex Japan Index (a broad market capitalization weighted proxy for the regional
equity markets in which the Company invests) giving a total return of +15.6%.

The global environment has been supportive to the region's markets. Economic
growth has remained robust and therefore supportive to the export performance of
the region, which is important for these generally open economies. US
consumption growth has been moderating in the face of continued high energy
prices and a softening in the housing market, but the impact of this is being
offset by the better than expected economic performances of Japan and Europe,
most notably Germany. Investors have also drawn comfort from evidence of a
recovery in corporate spending, supported by strong cash flows, and the prospect
of a multi-year upturn in areas such as energy and aerospace.

Good growth momentum has also been allied with muted evidence of inflationary
pressures outside the obvious areas of energy and industrial commodities.
Productivity growth remains strong, and unit labour costs under control,
providing comfort on both corporate profits and inflation. Although short-term
interest rates have continued to rise (with the long standing policy of the US
Federal Reserve being joined by initial rises in Euro rates), bond yields have
risen only moderately.

The buoyant external environment has been reflected in the regional markets. The
perceived sensitivity to external demand has supported Korea, up over 30% in
sterling terms, while among sectors, information technology stocks outperformed,
along with the material and energy stocks reflecting firm pricing for oil and
basic commodities.

Among the larger markets, Taiwan was the key disappointment. While the
technology companies fared well reflecting strong external demand, the financial
sector has weakened on rising credit costs in the consumer lending area. This
has, in turn, had a ripple effect into consumer spending. The political
background has not been helpful, with Taiwanese President Chen looking
increasingly isolated, but determined to maintain a hardline stance over
relations with mainland China.

Performance and Portfolio Activity

While the Company's portfolio has generated a positive total return of +8.2%
over the period, this has been somewhat short of the +15.6% returns generated by
the MSCI All Country Pacific ex Japan Index. However, it should be borne in mind
that this index does not reflect the income focus of the Company. More
specifically, the leading national market over the period (Korea) and the
leading major sector (Information Technology) both offer relatively low income
yields. By contrast, Taiwan and, in sector terms Telecommunications, performed
poorly, but have offered attractive income returns.

Revenue generation has been strong over the period, with income return per share
of 3.1p. The main equity exposures have been in Australia, Hong Kong and
Singapore, complemented with smaller positions in Taiwan, Korea and Indonesia.
The Company's position in bonds has enhanced what has been a strong dividend
flow across a well diversified portfolio.

In terms of policy over the period, we moved rapidly to establish a fully
invested position, and gearing has remained just below 20% throughout the
period, reflecting our confidence in the region's markets. In terms of
subsequent adjustments to policy, we reduced exposure to Taiwan reflecting
growing concern over the earnings outlook for domestic sectors, particularly the
banks.  Proceeds have been redeployed to raise weightings in Indonesia, Korea
and Thailand.

Outlook and Policy

We believe the external environment should remain supportive for the regional
markets in the second half of the financial year. Although there is growing
evidence of a slowdown in US consumption, which has been a longstanding motor
for global growth, this is arguably happening at a time when the global economy
is in relatively good shape to take up the slack. The corporate sector is in
excellent health as measured by returns and free cash flow generation, while
there are encouraging signs of recovery in both Japan and Germany. Meanwhile,
China and, increasingly, India are making themselves felt as growing end
markets.

The risks lie with liquidity and interest rates. Although Federal Funds interest
rates may be approaching their peak, the European Central Bank has started a
similar process of rate increases, likely to be followed by Japan later this
year. However, insofar as rising rates are a corollary of strong global growth,
this may not be such a bad combination for the regional markets, given that
valuations remain modest by global standards.

Consequently, we remain cautiously optimistic on the region's markets, and
continue to identify attractive stock opportunities which offer relatively high
income yields with prospects for growth. The Fund remains geared, with the major
exposures being Australia, Singapore and Hong Kong, complemented by smaller but
significant exposures to developing ASEAN markets (mainly Indonesia and
Thailand), Korea and Taiwan.

In sector terms, the focus remains upon primarily domestic sectors, which we
believe is the appropriate stance given the long-term adjustment required in the
region to shift from export to domestically generated growth.


Schroder Investment Management Limited
11 May 2006


The Interim Report will be mailed to registered shareholders in May 2006 and
from the date of release copies of the Interim Report will be made available to
the public at the Company's Registered Office and at 31 Gresham Street, London
EC2V 7QA.



Enquiries:

Schroder Investment Management Limited

John Spedding
                                                 (020 7658 3206)

11 May 2006


                      This information is provided by RNS
            The company news service from the London Stock Exchange                   BV