Annual Report and Accounts an

RNS Number : 3304P

Schroders PLC

23 March 2009

Schroders plc
('the Company')

Annual Report and Accounts and Annual General Meeting

The Company announces that two copies of its 2008 Annual Report and Accounts, which includes the Notice of Annual General Meeting to be held on Thursday 23 April 2009, and two copies of the Form of Proxy have been submitted to the UK Listing Authority. Copies of all the above documents will be available for inspection at the UK Listing Authority's Document Viewing Facility which is situated at:

The Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS

Telephone: 020 7066 1000

The above documents can also be downloaded from the Company's website at

http://ir.schroders.com.

The unaudited 2008 preliminary results for the year ended 31 December 2008, released on 12 February 2009, were prepared in accordance with IAS 34. Included in this announcement is additional information, for the purposes of compliance with the Disclosure and Transparency Rules, which includes a description of key risks and mitigations and a responsibility statement, all as extracted from the 2008 Annual Report and Accounts dated 9 March 2009.

Key Risks and Mitigations

Managing risk

The management of risk is embedded in our corporate culture. The senior management team, supported by a number of risk management functions, takes the lead role in ensuring that proper controls are in place across the business to maintain the quality standards expected by our clients and regulators. It is the responsibility of all employees to ensure that the control culture of Schroders is embedded within our working practices.

Like any asset management business we are exposed to a range of risks. These risks, if not managed properly, increase the possibility of the Group not being able to meet its objectives. Some of them, like the risks inherent in taking active investment decisions on behalf of clients, are the risks we are in business to take.

Risks are managed in a variety of different ways depending on the nature of the risk and the areas potentially affected to ensure that, where appropriate, the consequences are mitigated. We reviewed our risk management framework in 2008 in light of increased risk arising from less liquid and more volatile markets. We continuously upgrade our risk control processes and technological support tools.

Market risk

Market risk is the risk that market conditions will lead to a reduction in revenues through a decline in funds under management, a net reduction in investment flows, or a decline in the value of principal investments. To mitigate these risks:

• We have a broad product range enabling us to provide clients with solutions tailored to a variety of market conditions; and

• We hedge our principal investments to reduce market risk where appropriate.

Investment performance risk

Investment performance risk is the risk that portfolios do not meet their investment objectives. We adhere to a clearly defined investment process which is combined with a programme of continuous review and improvement.

• Individual portfolio performance, valuations and risk profiles are monitored on a regular basis, allowing issues to be identified and mitigated; and

• Recognising that not all products will outperform all of the time, we offer a diversified product set which reduces the concentration of risk on the performance of any one fund or asset class.

Liquidity risk

Liquidity risk includes the risk that investments cannot be realised to meet redemptions as they arise. This can occur either because of liquidity constraints due to the nature of the underlying assets or from normally liquid assets being illiquid as a result of market dislocation.

• We seek to match, where possible, the liquidity of a portfolio's underlying investments with its liquidity requirements. We actively monitor the market for indicators of illiquidity to enable pre-emptive actions to be taken.

Counterparty risk

Counterparty risk is the risk that a counterparty is unable to meet its obligations.

• We monitor counterparty credit worthiness and operate within approved counterparty limits; and

• Where possible, we diversify our investments across multiple counterparties.

Product risk

Product risk arises from product complexity across multiple asset classes and the need to develop new products to meet changes in client demands.

• We have an established product review process designed to manage our product range, including the continual assessment of capacity constraints; and

• We also have a dedicated product development team with clear product approval procedures with representation from Investment, Distribution and Infrastructure.

Human resource risk

Human resource risk is the risk that we are unable to attract or retain specialist skills as the range of our product offering deepens and our investment and distribution strategies develop into more complex areas.

• We have competitive remuneration plans, with appropriate deferred benefits, targeted at key staff; and

• Clear objectives are set for each employee and we measure success in the annual review process. This allows us to identify employee development initiatives which are a motivational force in retaining talented executives.

Business continuity risk

Business continuity risk is the risk that, for a number of reasons, we are unable to continue to operate. We have a number of outsourced supplier relationships that are an important part of our business model, particularly in respect of fund administration services.

• Continuity planning is in place across the business with clear identification of key staff and their involvement in business resumption plans;

• While the increase in the concentration of global systems presents further risks, additional resilience and contingency arrangements are in place;

• Group-wide insurance is held against a loss resulting from interruption to the business consequent upon loss or damage to our property; and

• We work closely with our outsourced suppliers to maintain the quality and continuity of service.

Project risk

Project risk is the risk that ineffective project implementation could lead to sub-optimal solutions being delivered on our key projects.

• We have a dedicated Change Management Team overseeing all major projects, ensuring that consistent, Group-wide rigour is brought to the initiation, approval and monitoring of projects; and

• We do not implement live projects before they have been fully tested.

Directors' responsibility statement

The Annual Report contains the following responsibility statement. The names of the Directors listed on pages 28 and 29 of the Annual Report are set out below.

'To the best of their knowledge, each of the Directors listed on pages 28 and 29 confirm that:

• The Group financial statements, which have been prepared in accordance with IFRS as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit of the Group; and

• The Directors' report, including the information incorporated from elsewhere in the Annual Report, includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that it faces.'

Michael Miles Chairman

Michael Dobson Chief Executive

Alan Brown Chief Investment Officer

Philip Mallinckrodt Head of Private Banking

Kevin Parry Chief Financial Officer

Massimo Tosato Vice Chairman and Head of Distribution

Andrew Beeson Independent non-executive Director

Luc Bertrand Independent non-executive Director

Lord Howard of Penrith Independent non-executive Director

Sir Peter Job Senior Independent Director

Merlyn Lowther Independent non-executive Director

Bruno Schroder Non-executive Director

This announcement and the Annual Report referred to in it contain certain forward-looking statements with respect to the financial condition, results of operations and businesses of the Group. Such statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances 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 such forward-looking statements and forecasts. Forward-looking statements and forecasts are based on the Directors' then current view and information known to them at the date of the Annual Report. 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 the Annual Report or this announcement should be construed as a profit forecast.