Interim Management Statement

RNS Number : 2088G

SchroderJapan Growth Fund PLC

26 June 2012

 



SCHRODER JAPAN GROWTH FUND PLC

Interim Management Statement for the Quarter ended 30 April 2012

The Board of Schroder Japan Growth Fund plc ("the Company") is pleased to announce its Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rules. This Statement is in respect of the period from 1 February 2012 to 30 April 2012.

Investment Objective

The Company's principal investment objective is to achieve capital growth from an actively managed portfolio principally comprising securities listed on the Japanese stock markets, with the aim of achieving growth in excess of the TSE First Section Total Return Index over the longer term.

Material Events or Transactions

Dividend Policy

As set out in the Chairman's Statement in the Half-Yearly Report, the Directors feel that future income received by the portfolio should be paid out to investors in the form of dividends. Therefore, they are seeking shareholder approval to proposals to extinguish the accumulated brought forward loss on revenue reserve of £5.7 million so that this will not inhibit the company from paying dividends going forward.

In order better to reflect the increasing significance of income as part of total return, the Directors will, with effect from 1 August 2012, also adopt a revised allocation policy whereby management fees and finance costs will be charged 70% to the capital account and 30% to the revenue account.

Following these changes, the Directors intend to be paid out as dividends at least 85% of the income received for the year ending 31 July 2013 and for subsequent years, in line with HMRC regulations for investment trusts. Shareholders should not expect future dividends to increase year on year as dividend income received from Japanese companies is expected to continue to be volatile.

There will be no change in investment policy or strategy to generate additional income.

There have been no other material events or transactions that have taken place between 1 February 2012 and the date of publication of this Statement.

Company Statistics as at 30 April 2012

Gross Assets	£152.42 million
Net Asset Value per Ordinary Share	103.41p
Share Price	92.13p
Discount	10.9%
Number of Holdings	81
Net Effective Gearing	11.1%

Cumulative Performance to 30 April 2012 (Total Return in percentage terms)

Performance over	3m	6m	1yr
Share Price	7.1	11.3	10.8
Net Asset Value	(0.1)	8.7	6.9
Japan TSE First Section	(0.1)	3.4	0.9

All Performance Data Source: Morningstar.

Portfolio Information as at 30 April 2012

Ten Largest Holdings

Stock Name	Sector Classification	Market Value (£)	Percentage of NAV
Toyota Motor	Consumer Goods	7,494,193	5.80
Mitsui & Co	Industrials	5,628,940	4.35
SK Kaken	Industrials	4,718,626	3.65
Hi Lex	Industrials	4,530,621	3.50
East Japan Railway	Consumer Services	4,301,832	3.33
Bridgestone	Consumer Goods	4,216,800	3.26
Sumitomo Mitsui Seven & I Holdings	Financials Consumer Services	3,487,680 3,419,878	2.70 2.65
KDDI	Telecommunications	3,077,365	2.38
T&D Holdings	Financials	2,848,622	2.20

Sector Allocation

Sector

Percentage of NAV

Industrials	31.98
Consumer Services	19.08
Consumer Goods	18.52
Financials	16.53
Basic Materials	8.15
Telecommunications	4.59
Healthcare	4.53
Technology	4.29
Oil & Gas	2.14
Other net liabilities	(9.81)

Changes to Share Capital during the quarter ended at 30 April 2012

	Issued Ordinary shares of 25p each
As at 1 February 2012	125,008,200
Shares bought back and cancelled during the period	Nil
Shares bought for holding in treasury during the quarter	Nil
Shares already held in treasury	Nil
Shares cancelled from treasury	Nil
Shares remaining in issue as at 30 April 2012	125,008,200

Company Information as at 30 April 2012

SEDOL Code	0802284
Sector	Equity Investment Instruments
Launch Date	July 1994
Financial Year End	31 July
Next AGM Date	November 2012

Enquiries:

John Spedding                                                                                               

25 June 2012

Schroder Investment Management Limited

Company Secretary

Tel: [phone] 

 

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