Trading Statement

Schroders PLC
16 May 2006





                                  Schroders plc


                                  Trading Update





16 May 2006


Schroders plc is today issuing a trading update for the three months to
31 March 2006.


The Group made a good start to the year with pre-tax profit of £71.4 million for
the first quarter compared to £50.4 million for the same period in 2005.


Asset Management Results

Asset Management revenues for the quarter were £152.8 million (Q1 2005: £123.5
million). Costs were £102.9 million (Q1 2005: £89.2 million) and profit was
£49.9 million (Q1 2005: £34.3 million).


Private Banking Results

Private Banking revenues for the quarter were £20.4 million (Q1 2005: £17.4
million), costs were £16.7 million (Q1 2005: £15.7 million) and profit was £3.7
million (Q1 2005: £1.7 million).


Private Equity and Group Results

Profit from Private Equity was £7.2 million (Q1 2005: £10.5 million). Group net
income was £10.6 million (Q1 2005: £3.9 million).


Funds under Management

From an opening position of £122.5 billion at 1 January 2006, funds under
management rose 4.8 per cent in the quarter to £128.4 billion. Net business
outflows were £0.2 billion in the quarter, with net inflows of £1.9 billion in
the Retail business and £0.2 billion in Private Banking offset by net outflows
in the Institutional business of £2.3 billion.


Schroders completes acquisition of NewFinance Capital

The acquisition of NewFinance Capital, the London-based manager of funds of
hedge funds, was completed on 3 May 2006 following receipt of regulatory
approval from the Financial Services Authority.

Results from this business will be included for the first time in the Group's
2006 Interim results.


Summary

Profitability was strong in the quarter on the back of higher equity markets, a
further improvement in margins, increased profits in Private Banking and gains
on Group investments.


Net new business saw a return to strong inflows in Retail during the quarter,
broadly balanced by outflows in Institutional. Net inflows in emerging market
and European equities were offset by net reductions in Japanese and Pan-Pacific
equity mandates.


Interim results for 2006 will be announced on 11 August.



For further information, please contact:
Henrietta Jowitt
Head of Marketing and Communications                    Tel: [phone]





Forward-looking statements


This trading update contains certain forward-looking statements with respect to
the financial condition, results, operations and businesses of Schroders plc.
These 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 these forward-looking statements
and forecasts. Nothing in this trading update should be construed as a profit
forecast.






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