Trading Statement

Schroders PLC
04 December 2002


                                 Schroders plc

                                 Trading Update

4th December 2002

Schroders plc today issued a trading update. In future, the Group will announce
trading updates semi-annually. Full year results for 2002 will be announced on
4th March 2003.

Business Flows

Funds under management declined by 15 per cent. during the third quarter from
£102.7 billion to £87.2 billion. This reflects a fall of approximately 20 per
cent. in major equity markets. There was no net outflow of funds during the
third quarter or in October. With markets up marginally in October, funds under
management totalled £89.5 billion at the end of the month.

Asset Management Revenues

Revenues for the quarter were £99.2 million compared to £238.5 million in the
first six months. In the interim report the Group stated that, with 75 per cent.
of its funds under management in equities, revenues would be lower in the second
half if markets remained at current levels. The timing of the sharp fall in
markets at the end of September had a significant impact on revenues, as fees on
approximately half of the Group's funds under management are calculated on the
level of funds at the end of each calendar quarter. The reverse effect was
experienced in the first quarter when the rise in markets at the end of March
lifted revenues.

Asset Management Costs

Underlying asset management costs, before project expenditure and redundancy
costs, were £87.8 million in the third quarter compared to £191.7 million in the
first six months. Current estimates are that project expenditure for the second
half will exceed the previous indication of £22.5 million by approximately £2
million. Redundancy costs for the second half are now expected to be
approximately £7 million, the same level as the first half, and year-end
headcount will be below previous estimates.

Asset Management & Group Results

Underlying asset management profits were £11.4 million during the quarter
compared to £46.8 million in the first six months. Private Equity and Group
income/costs accounted for a loss of £8.4 million, against a profit of £1.1
million in the first half, largely due to the effect of marking to market the
Group's 12.8 per cent. shareholding in Schroder Ventures International
Investment Trust. This led to a Group loss before goodwill amortisation and tax
of £9.4 million in the quarter, compared to a profit of £25.9 million in the
first six months.

Sale of Businesses

The sales of Schroder Pensions and Schroder Hermes were announced in September,
conditional upon the approval of the Financial Services Authority. On approval,
the costs relating to these sales will be reflected in the fourth quarter's
results; they have been incorporated in the project expenditure estimates above.

The sale of the private banking business in Miami was announced in October. This
will not have a material impact on reported results.

Leasing

In September the Group disposed of a significant proportion of its leasing
assets for £100 million. The proceeds were retained in liquid assets which now
account for £490 million out of the Group's total surplus capital of £700
million. The disposal will have a negligible impact on pre-tax profits.

Outlook

The outlook for markets remains uncertain but, looking forward, the Group is on
target in significantly reducing costs, strengthening management, delivering
stronger investment performance and bringing a sharper focus to the business.



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For further information, please contact:

Julian Samways

Group Head of Corporate Communications

Schroders plc

020 7658 6166


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