Trading Statement

Schroders PLC
03 June 2003

                                  Schroders plc

                                 Trading Update



3rd June 2003

Schroders plc today issued a trading update for the three months to 31st March
2003.

Business Flows

From an opening position of £86.2 billion, adjusted to exclude £2.1 billion on
the completion of the sales of Schroder Pensions and Schroder Hermes, funds
under management declined 2.3 per cent. in the quarter to £84.2 billion as a
result of falling equity markets.

Net new business amounted to £0.4 billion, with net inflows in the Retail
business of £1.2 billion exceeding net outflows in the Institutional business of
£0.5 billion and in Private Banking of £0.3 billion. Stronger markets in April
raised funds under management to £87.5 billion, despite a net outflow of £0.2
billion in the month.

Asset Management Results

Net revenues for the quarter were £97.1 million. Underlying asset management
costs were £84.7 million, including an increased pension charge of £4.4 million.
Underlying asset management profits were £12.4 million.

By mid April, three projects had been satisfactorily completed, namely
outsourcing of the UK retail transfer agency administration and the
implementation of new private banking administration platforms in both London
and Zurich. Project expenditure and redundancy costs in the quarter were £6.6
million and £0.6 million respectively, consistent with previously disclosed
expectations of £18.2 million and £2.3 million respectively for the year as a
whole.

An exceptional profit of £2.5 million arose on completion of the sales of
Schroder Pensions and Schroder Hermes, following receipt of regulatory approval.

Asset management profits after project expenditure, redundancy costs and the
exceptional profit totalled £7.7 million.

Group Results

Profits from Private Equity of £5.2 million benefited from the rise in value of
the Group's shareholding in Schroder Ventures International Investment Trust
which, following a partial disposal, now stands at 6.9 per cent., down from 12.8
per cent. at the end of 2002. Group net income/costs amounted to a loss of £3.9
million in the quarter, including an increase of £1.5 million in the provision
for surplus office space in New York.

Group profit before goodwill amortisation and tax amounted to £9.0 million in
the quarter.

Pension Costs

The preliminary triennial valuation of the defined benefits section of the UK
pension scheme, as at 1st January 2003, disclosed a deficit of approximately £40
million. Increased contributions will be made to the scheme to cover ongoing
benefits and to rectify the deficit over the future working lifetime of defined
benefits section members. The charge under SSAP 24 for this section is expected
to show an increase of £11.4 million in 2003, of which 25 per cent. has been
charged in arriving at the results for the quarter.

Outlook

Whilst net new business flows were marginally positive in the first four months,
we remain cautious about fund flows for the year as a whole. However, the
improving underlying trend in net new business reflects the Group's continuing
commitment to delivering strong investment performance for our clients.

Interim results for the six months to 30th June 2003 will be announced on 2nd
September.

For further information, please contact:

Julian Samways, Group Head of Corporate Communications          020 7658 6166

Schroders plc




Forward-looking statements

This trading update contains certain forward-looking statements with respect to
the financial condition, results of 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.



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