Interim Management Statement

Schroders PLC
24 April 2008





Schroders plc

Interim management statement


24 April 2008


Schroders plc is today issuing an interim management statement for the three
months to 31 March 2008.


  • Asset Management and Private Banking profit before tax increased 9 per
    cent. to £76.5 million (Q1 2007: £70.0 million)
  • Positive net sales in Retail despite difficult market conditions; reduced
    net outflows in Institutional
  • Total profit before tax was £42.2 million (Q1 2007: £93.2 million)
    reflecting lower Private Equity realisations and unrealised fair value write
    downs on investments within Group capital


Asset Management

Asset Management income for the quarter was £197.1 million (Q1 2007: £177.3
million), costs were £131.5 million (Q1 2007: £114.8 million) and profit before
tax was up 5 per cent. to £65.6 million (Q1 2007: £62.5 million).

In March we announced that we had reached agreement to acquire Swiss Re Asset
Management Funds (Switzerland) AG, the Swiss third party institutional fund
management business of Swiss Re, which is expected to complete in the second
quarter.  The business, which had assets under management of £0.9 billion split
between European equities and Swiss property, will broaden our offering to Swiss
institutional clients.

Private Banking

Private Banking income for the quarter was £27.4 million (Q1 2007: £23.1
million), costs were £16.5 million (Q1 2007: £15.6 million) and profit before
tax was up 45 per cent. to £10.9 million (Q1 2007: £7.5 million).





Private Equity and Group

As anticipated at the time of the 2007 preliminary results announcement, more
challenging market conditions have reduced the level of Private Equity
realisations.  Profit from Private Equity for the quarter was £2.4 million (Q1
2007: £19.9 million) with unrealised gains in our Private Equity portfolio
unchanged on the quarter at £74.5 million.

The loss in Group for the quarter was £36.7 million (Q1 2007: profit £3.3
million).  Lower equity markets and the dislocation in fixed income markets in
the first quarter, particularly in March, led to reduced valuations for certain
assets held within Group capital and we took unrealised fair value write downs
of £7.7 million on seed capital investments and £25.8 million on fixed income
securities.  Although further write downs cannot be ruled out if current market
uncertainties persist, detailed review of our holdings leads us to expect a
recovery in valuations over time. Further details of the deployment of Group
capital are set out in the appendix.

Group capital at 31 March 2008 was £1,704 million (31 December 2007: £1,696
million) after spending £58.8 million during the quarter on the repurchase and
cancellation of 7 million non-voting ordinary shares.

Funds under management

Funds under management at 31 March 2008 were £130.6 billion (31 December 2007:
£139.1 billion) with net inflows in the quarter of £0.5 billion in Retail and
£0.3 billion in Private Banking.  Net outflows in Institutional amounted to £1.7
billion.

Outlook

As we indicated at the time of our 2007 preliminary results, the setback in
equity markets and high levels of volatility in financial markets have led to a
less favourable environment for our business.  Despite this, the performance of
our Asset Management and Private Banking businesses is proving resilient,
benefiting from our strategy of geographic, product and channel diversification.
 We have seen positive inflows into our Retail business and a reduced level of
Institutional outflows in the first quarter of 2008.   We continue to see this
more challenging period as an opportunity to position Schroders for further
growth in the longer-term.




    
Michael Dobson, Chief Executive, and Stephen Brooks, Chief Financial Officer,
will host a conference call for the investment community, to discuss the first
quarter interim management statement at 9 am BST on Thursday, 24 April 2008. The
conference call telephone number is 0800 694 1503 (International: +44 (0)1452
586 513), conference ID 44479692.   For individuals unable to participate in the
conference call, a telephone replay will be available until Wednesday 30 April
2008.   Please telephone [phone] (International: [phone]),
conference ID 44479692#.


For further information please contact:

Schroders
Emma Tovey - Head of Corporate Communications        [phone]
                                                     [e-mail]

Maitland
William Clutterbuck                                  [phone]
                                                     [e-mail]

Forward-looking statements

This interim management statement may contain forward-looking statements with
respect to the financial condition, results, operations and businesses of
Schroders plc.  Such statements and forecasts involve risk and uncertainty
because they relate to events and depend upon circumstances that will occur in
the future. There are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied by
forward-looking statements and forecasts.  Forward-looking statements and
forecasts are based on the Directors' current view and information known to them
at the date of this statement.  The Directors do not make any undertaking to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.  Nothing in this interim management
statement should be construed as a profit forecast.





Appendix - Group capital as at 31 March 2008

The following table summarises the deployment of Group capital:


£ million                                                                  31 December        31 March 
                                                                                  2007            2008

Cash and cash equivalents                                                          582             492
Fixed income: mortgage and asset backed securities                                 249             209
Third party hedge funds                                                            208             208
Seed capital                                                                       191             182
Private Banking net assets                                                         213             218
Private Equity                                                                     138             139
Pension fund surplus                                                                43              44
Other net assets                                                                    72             212
Total Group capital                                                              1,696           1,704


Within Group capital, we hold US mortgage and asset backed securities, with the
objective of delivering a LIBOR+ return, as part of a diversified portfolio
which includes investments in seed capital, private equity and hedge funds.
Financial market conditions in the first quarter have resulted in an unrealised
fair value write down on these fixed income securities of £25.8 million, 80 per
cent. of which occurred in March.  Of these investments, 90 per cent. are rated
AAA and two-thirds were originated before 2006.  An analysis of these mortgage
and asset backed securities is provided below:

                                     Origination date
                               Pre 2006         2006         2007                   Total         % of total
Credit rating                       £mn          £mn          £mn                     £mn
AAA                                 120           51           18                     189                 90