Schroders hits retail high but expects '08 downturn

The FTSE 100 asset manager this morning revealed 2007 was a record year for its retail business, with £8.8bn net sales. However, the firm says the recent setback in equity markets will persist throughout 2008 and expects “a less favourable environment” for the business this year. “The impact of the sub-prime crisis in America has spread to world financial markets and the real economy," Schroders says. "This in turn has affected investors’ risk appetite and retail flows across the industry have fallen back sharply. “Our cost base has a significant variable component linked to revenues whi...