Interim Results

SchroderJapan Growth Fund PLC
2 April 2001


Press Release

2 April 2001


                          Unaudited Interim Results


The Directors of Schroder Japan Growth Fund plc announce the unaudited interim
results for the six months ended

31 January 2001:

                       Six months ended               Six months ended          

                       31 January 2001                31 January 2000           

                    Revenue  Capital    Total      Revenue  Capital   Total   
                      £'000      £'000      £'000    £'000     £'000     £'000
  Realised gains         -      8,362      8,362        -    16,855    16,855 
  on investments                                                              
  Unrealised             -   (28,998)   (28,998)        -       506       506 
  (losses)/gains                                                              
  on investments                                                              
  Realised               -      (222)      (222)        -       418       418 
  exchange rate                                                               
  (losses)/surplus                                                            
  Realised               -    (3,056)    (3,056)        -         -         - 
  exchange rate                                                               
  loss on the                                                                 
  loan facility                                                               
  Unrealised             -      3,887      3,887        -   (1,539)   (1,539) 
  exchange rate                                                               
  gain/ (losses)                                                              
  on the loan                                                                 
  facility                                                                    
  Dividend Income      592          -        592      439         -       439 
  Income from           11          -         11       35         -        35 
  bonds                                                                       
  Bank deposit          30          -         30        6         -         6 
  interest                                                                    
  Investment         (930)          -      (930)    (924)         -     (924) 
  management fee                                                              
  (Deficit)/Return   (297)   (20,027)   (20,324)    (444)    16,240    15,796 
  before finance                                                              
  costs and                                                                   
  taxation                                                                    
  Interest           (178)          -      (178)    (161)         -     (161) 
  payable                                                                     
  (Deficit)/Return   (475)   (20,027)   (20,502)    (605)    16,240    15,635 
  on ordinary                                                                 
  activities                                                                  
  before taxation                                                             
  Tax on ordinary     (86)          -       (86)     (70)         -      (70) 
  activities                                                                  
  (Deficit)/Return   (561)   (20,027)   (20,588)    (675)    16,240    15,565 
  attributable to                                                             
  equity                                                                      
  shareholders                                                                
  (Deficit)/Return  (0.45)    (16.02)    (16.47)   (0.54)     12.99     12.45 
  per ordinary                                                                
  share                                                                       
                     Pence      Pence      Pence    Pence     Pence     Pence 
                                                                              




                                    Six months ended 31   Six months ended 31
                                       January 2001          January 2000
Abridged Cash Flow Statement               £'000                 £'000

Net cash outflow from operating                    (391)                 (858)
activities

Net cash outflow from servicing of                 (178)                 (150)
finance

Tax paid                                            (57)                  (68)

Net Cash Inflow/(Outflow) from                   (1,733)                 9,458
financial investment

Net Cash (Outflow)/Inflow from                     (240)                   418
financing

Net cash Inflow/(Outflow)                        (2,599)                 8,800


                                           As at 31 January     As at 31 July
                                                 2001               2001
Abridged Balance Sheet                           £'000              £'000

Listed investments at market value                    135,842           154,882

Net current (liabilities)/assets                        4,445          (17,553)

Creditors: amounts falling due after one             (23,543)                 -
year

Net Assets                                           116,744           137,329
                                                      
Net asset value per share - undiluted                  93.39p           109.86p

Net asset value per share - diluted                      NA             108.22p
                                                           

Notes

1.     The above financial information is unaudited and does not amount to
statutory accounts under Section 240 of the Companies Act 1985 (as amended).
The information given as comparative figures for the financial year ended 31
July 2000 does not constitute the Company's statutory accounts for that
financial year. Statutory accounts for the financial year ended 31 July 2000
have been reported on by the Company's auditors and delivered to the Registrar
of Companies. The report of the auditors was unqualified and did not contain a
statement under Section 237(2) or (3) of the Companies Act 1985.

This announcement is prepared on the basis of the accounting policies as set
out in the most recent published set of annual financial statements.

The calculation of the returns per share is based upon the net return
attributable to shareholders and the issued share capital of each class.

2.     Calculation of the undiluted net asset value per share is based on
125,003,500 ordinary shares in issue (31 January 2000 and 31 July 2000 :
125,000,400). The diluted net asset value shown is calculated in accordance
with the SORP. It is based on the assumption that the 24,999,400 warrants in
issue at 31 January 2000 and 31 July 2000 are converted into ordinary shares.
Dilution occurs if the undiluted net asset value is greater than the warrant
exercise price of £1.00. Consequently, a diluted net asset value is not shown
for the period ended 31 January 2001.


The following is the text of the Chairman's Statement:


Performance


During the six-month period to 31 January 2001, conditions in the Japanese
market have been very difficult, and it is disappointing to report that the
economy has showed signs of decline. However, deflationary forces have
prompted the recent reduction of Japanese interest rates to close to zero per
cent and with Japanese company profits showing signs of improvement, there are
reasons at this time to believe that the worst is now behind us.


The company's net asset value declined by 15% during the six months to 31
January 2001, compared to a decline in the Tokyo Stock Exchange (TSE) First
Section Index in sterling terms of 13.2% over the same period. This
under-performance against the Index is disappointing, although the company's
performance compared with the AITC Japan Sector peer group was more
encouraging.


Under-performance against the benchmark Index stemmed primarily from the
portfolio's overweight position in the consumer electronics and machinery
sectors, and its lack of exposure to the banking sector, which performed
relatively strongly over the six-month period, as investors hoped that the
government might take action to help the banks tackle their non-performing
loans.


Investment Policy


At this time, there are two dominant themes to the portfolio's structure. The
portfolio has significant exposure to medium and smaller companies. At the end
of January 2001, approximately 29% of the total portfolio exposure was in
stocks outside the top 300 by market capitalisation. The reasons for this are
that the Investment Manager believes that valuations in parts of the smaller
company universe are exceptionally low and that restructuring is filtering
down from larger companies to smaller companies.


Within larger companies, the Investment Manager has shifted its policy to
ensure that the portfolio's exposure to larger companies is concentrated in
companies which are less sensitive to economic conditions. As a result, the
Investment Manager has reduced exposure to the electronics and machinery
sectors and increased weightings in pharmaceuticals and in railway companies.


Outlook


Japan is feeling the effects of the sharp slowdown in the US economy. Export
growth has fallen from around 10% year on year to close to zero and this is
leading to a slowdown in output growth.


Against this gloomy economic background however there are three reasons for
being more positive about market prospects. The most important is that
investors are already realistically pessimistic about prospects, and as a
result of market weakness valuation levels are the lowest they have been since
the mid 1980's, in respect of price earnings ratios, or valuations relative to
cashflow or assets. Secondly, although growth is slowing to scarcely
perceptible levels, the consumer savings ratio is high and the corporate
sector is generating substantial free cashflow. Both these factors should
limit the severity of the downturn. Thirdly, restructuring is continuing and
is likely to accelerate further as gloom about the economic background
intensifies.

Corporate Developments


Resignation of a Director


Mr Peter Wolton who will be leaving Schroders at the end of June has resigned
as a Director of the Company with effect from 28 March 2001. Mr Wolton had
been a Director of the Company since its launch, and his knowledge both of
Japan and the Investment Trust industry has been invaluable. He leaves with
the thanks of all the Board for his significant contribution over the life of
the company.

Interim Report


The Interim Report will be sent by mail to shareholders and warrantholders at
their registered addresses in April 2001 and from the date of release, copies
of the Interim Report will be made available to the public at the Company's
registered office: 31 Gresham Street, London, EC2V 7QA.




Enquiries:           Schroder Investment Management Limited

John Spedding

Tel : [phone]

E-mail : [e-mail]

2 April 2001