UPDATE 2-Schroders sees 7 bln stg net inflows, shares rise

* Pretax profit falls 19.2 percent to 57.8 million pounds

* Funds under management rise 23 percent

* Shares rise 4 percent

(Adds comments by CEO, analyst; share price)

By Raji Menon

LONDON, Nov 10 (Reuters) - UK fund firm Schroders Plc (SDR.L) attracted net inflows of 7 billion pounds ($11.7 billion) in the third quarter, its strongest performance in years and underscoring a rush by investors out of less risky but low-yielding cash holdings.

"This is definitely a turnaround for us as we haven't had net flows of this magnitude for many, many years," Chief Executive Michael Dobson told Reuters.

At 0930 GMT, shares were up nearly 4 percent at 1,185 pence, not far from a year's high of 1,211p set last month.

Profit before tax and exceptional items fell to 57.8 million pounds from 71.5 million in the previous year, Schroders said, beating an average forecast of 48.5 million from two analysts.