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Schroders UK institutional survey reveals economic concerns for 2013

At the recently held Schroders annual UK institutional conference* in London, attendees were asked to share their views on the UK economy including expected inflation figures for 2013 and which, if any, investment strategies are being considered in light of the current environment.

12/11/2012

At the recently held Schroders annual UK institutional conference* in London, attendees were asked to share their views on the UK economy including expected inflation figures for 2013 and which, if any, investment strategies are being considered in light of the current environment.

The UK Economy

Attendees were asked to complete the following ‘The UK is now officially out of recession. Do you think there is a risk that the UK could fall back into recession in 2013?’. An overwhelming 83% of participants said yes with only 17% saying that they thought the UK would remain out of recession over the next 12 months.

On inflation attendees were asked ‘UK inflation is currently between 2-2.5%. What are your expectations for UK inflation in 2013?

- 60% responded saying they expected inflation to remain the same

- 33% responded saying they expected inflation to rise above 3%

- 7% responded saying they could see inflation falling below 1.5%

Global Fixed Income

In the current environment attendees were asked if they ‘would consider looking to global and more unconstrained fixed income investing in the future’. Almost 60% of respondents said that they would consider this.

Neil Walton, Head of Schroders UK Business Development Group commented:

“The low yield environment continues to challenge traditional fixed income approaches. The views highlight a wider trend towards global and less benchmark driven fixed income strategies by UK pension schemes.

“Another interesting result from our survey has been the attendees’ attitude to the UK economy with over 83% of participants recognising the risk of a return to recession in 2013 - 33% said they could see inflation rising above 3% over the next 12 months.”

* attended predominantly by corporate and local authority pension scheme managers, trustees and consultants

For further information, please contact:

Estelle Bibby, Institutional PR Tel: +44 (0)20 7658 3431/ estelle.bibby@schroders.com

Caroline Smith, Broadcast PR Tel: +44 (0)20 7658 3365 / caroline.smith@schroders.com

Beth Saint, International PR Tel: +44 (0)20 7658 6168 / beth.saint@schroders.com

Notes to Editors

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Schroders plc

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