Schroders (SDR) is an asset management company which operates in 25 countries with £205bn (June 30 2010) in assets under management (AUM) invested across many different asset classes and strategies. 46% of Schroders’ AUM is invested in Equities with Fixed Income and Multi-Asset accounting for 18% and 17% respectively, with strong global diversification in its product mix. Schroders’ revenues and earnings greatly depend on AUM and are therefore extremely sensitive to the performance of the capital markets. In 2010 SDR outperformed 81% of its benchmarks which should attract above market inflows. 2011 has seen investors be more risk aware which should reduce the performance of SDR as investors shift to safer cash-like, lower fee investments. In the near term, Institutional clients are likely to retain their dominant position in AUM contribution (55% of AUM in H1 2011), with Intermediaries (financial advisors, 37% of AUM) and private banking (8%) thereby lessening the variability of net inflows.