Final Results

SchroderJapan Growth Fund PLC
27 September 2000

     
PRELIMINARY RESULTS


The Directors of Schroder Japan Growth Fund plc announce the unaudited
preliminary results for the year ended 31 July 2000.

                               For the year ended      For the year ended
                                  31 July 2000            31 July 1999

Statement of Total Return  Revenue  Capital   Total  Revenue   Capital   Total
                             £'000    £'000   £'000    £'000     £'000   £'000

Realised gains on investments    -   22,135  22,135        -     8,191   8,191
Realised exchange gain           -      715     715        -       948     948
Unrealised (losses)/gains on 
investments                      -   (4,988) (4,988)       -    46,167  46,167
Unrealised exchange losses on 
the loan facility                -   (2,858) (2,858)       -    (3,126) (3,126)
Realised net loss on forward 
foreign exchange transactions    -        -       -        -       (16)    (16)
Dividend income              1,202        -   1,202      768         -     768
Income from bonds               56        -      56       85         -      85
Bank deposit interest           15        -      15       98         -      98
Investment management fee 
and administrative expenses (1,844)       -  (1,844)  (1,412)        -  (1,412)

(Deficit )/return before 
finance costs and taxation    (571)  15,004  14,433     (461)   52,164  51,703

Interest payable              (320)       -    (320)    (219)        -    (219)

(Deficit)/return on ordinary 
activities before taxation    (891)  15,004  14,113     (680)   52,164  51,484

Tax on ordinary activities    (188)       -    (188)    (119)        -    (119)

(Deficit)/return attributable 
to equity shareholders      (1,079)  15,004  13,925     (799)   52,164  51,365

Basic and diluted (deficit)/
return per ordinary 
share-pence                  (0.86)p  12.00p  11.14p   (0.64p)   41.73p  41.09p
 

         


                                                  Year ended      Year ended
                                                 31 July 2000     31 July 1999

Abridged Cash Flow Statement                        £'000            £'000
          
Net cash outflow from operating activities         (1,021)             (26)

Net cash outflow from returns on investments 
and servicing of finance                             (427)            (182)
          
Total tax recovered                                     -               61
          
Net cash inflow/(outflow) from financial 
investment                                          7,726          (13,770)
          
Net cash inflow from financing                        703            8,754
                                                   ------           ------
Net cash inflow/(outflow)                           6,981           (5,163)
                                                   ======           ======

                                       As at 31 July 2000    As at 31 July 1999
Assets                                        £'000                 £'000
          
Listed investments                           154,882               145,304
          
Net current liabilities                      (17,553)                 (355)
          
Creditors: amounts falling due £
after one year                                     -               (21,515)
                                             -------               -------
Net Assets                                   137,329               123,434
                                             =======               =======
          
Net asset value per share - 
undiluted pence                               109.86p                98.75p
                                             =======               =======

Net asset value per share - diluted 
(per SORP)- pence                             108.22p                     *
                                             =======               ========

Net asset value per share - diluted 
per FRS 14                                          *                     *
                                             ========              ========
Share price-pence                               89.00p                92.25p
                                             ========              ========

                                            * There is no dilution (see below) 

Notes

1. Net asset value per share 

Undiluted:-the undiluted net asset value per share is based on the net assets
attributable to ordinary shareholders of £137,329,000 (1999 : £123,434,000) and
on 125,000,400 shares in issue at 31 July 2000 (1999: 125,000,000).

Diluted (per SORP):-the diluted net asset value per share as disclosed above is
calculated in accordance with the SORP. It is based on the assumption that the
24,999,600 warrants in issue at 31 July 2000 (1999: 25,000,000) are converted
into ordinary shares. Dilution only occurs if the undiluted net asset value is
greater than the subscription price of £1.00. Consequently a diluted  net asset
value is not shown for the year ending 31 July 1999.

Diluted per FRS 14:- Under FRS 14 an alternative diluted net asset value per
ordinary share may be calculated by dividing the net assets of £137,329,000
(1999 : £123,434,000) by the number of shares effectively issued for no
consideration on exercise of the warrants outstanding at the year end. Dilution
will only apply when the exercise price is lower than the market price of the
ordinary shares at the end of the year, consequently a diluted net asset value
is not shown for either year.

2. Audit Status 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 1999 does not constitute the Company's statutory accounts for that
financial year.  Statutory accounts for the financial year ended 31 July 1999
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.

The statutory accounts for the year ended 30 June 2000 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.

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

OBJECTIVE

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


STATEMENT BY THE CHAIRMAN, MR JEREMY HILL:

Key Events

- Increase of 11.25% in undiluted net asset value per share during the year     
 ended 31 July 2000 compared with an increase in the Tokyo Stock Exchange       
('TSE') First Section Total Return Index of 11.79%.
- A share buy-back facility, to enable the Company to purchase up to 14.99% of  
 its share capital in issue for cancellation was established. 
- Following the purchase by Salomon Smith Barney of the merchant banking        
 business of Schroders plc, loan facilities were transferred from to J Henry    
Schroder and Co Ltd to Allied Irish Banks plc.
- No final dividend payment has been proposed for the year ended 31 July 2000.

Performance

During the year to 31st July 2000 the undiluted net asset value of the Company
increased by 11.25% as compared with the TSE First Section Total Return Index
increase of 11.79% (expressed in sterling terms).  The yen appreciated by 11.73%
against sterling in the year. 

In the first half of the year performance lagged as the Company adopted a
conservative approach while investors chased high technology shares to what
seemed unreasonable levels.  This underperformance was largely made up in the
second half when the situation reversed and the company outperformed both the
market and most of its peers.

The share price discount has been volatile and it is disappointing that at 31
July 2000 the discount to undiluted net asset value had increased to 18.99%
compared to 6.58% at the end of the previous year.  The discount to diluted net
asset value was 17.76% at the year end and since then has narrowed somewhat to
14.27% as at 26 September 2000 (Source: Datastream).

Corporate developments

Gearing
During the year the Company maintained loan facilities totalling Yen 4 billion.
The Yen 2.5 billion loan was repaid to J Henry Schroder and Co Ltd ('JHS') on 29
August 2000.  A new loan for Yen 2.5 billion was drawndown with Allied Irish
Banks plc ('AIB') and becomes repayable on 29 August 2004.  The other JHS loan
of Yen 1.5 billion due repayable on 29 April 2002, was transferred at no cost to
your Company to AIB on 15 August 2000 and remains on the same terms.

Share and Warrant Purchases

During the year, the Company sought, and subsequently received, approval to buy
back its own shares. To date, the Directors have not utilised the authority
given to them and no purchases have been made.  Your Board believes that the
share buy-back is just one of a number of tools which may be used to address the
discount of the Company's shares, and that other factors, in particular
sustained good performance compared to peer group companies, can have as much
effect.  Shares will only be purchased in circumstances which will enhance
shareholder value.

A resolution to renew the authority is included in the Notice of the Annual
General Meeting. 

The Directors will also purchase warrants whenever market conditions are such
that purchases may be made at a cost that will enhance the diluted net asset
value. Formal guidelines relating to the purchase of warrants have been adopted
by the Board.

AITC Marketing Campaign

Last year, I reported that The Association of Investment Trust Companies had
unveiled plans to introduce a generic marketing campaign for investment trusts,
to increase awareness of the investment trust as an investment vehicle for
private investors. Your Board agreed to participate in the campaign last year,
and present indications are that the campaign has increased awareness. The Board
has recently decided to continue its participation into the second year of the
campaign, which it is anticipated will build on the interest created by the
campaign in the first year. 

Outlook

Over the past year there has at last been clear evidence that restructuring by
Japanese companies is bearing fruit.  Profits recovered strongly in the Japanese
business year which ended in March 2000 and the indications for this year are
encouraging.  At present, it seems that profits growth is likely to accelerate
despite only modest rates of economic growth.

The key question looking forward is whether this can continue beyond the current
year.  There are two main reasons for being optimistic.  The most important of
these is that the improvement began from a very low base, or put more bluntly,
Japanese companies have generally been very poorly managed from the perspective
of shareholders.  It therefore seems highly unlikely that after only eighteen
months management cannot find further efficiencies and improvements.  In
addition, most individual companies' restructuring efforts have been formulated
as three to five year plans rather than one or two year objectives.  In part
this is because employment cuts are being effected primarily through natural
attrition and early retirement programmes which inevitably means that their
effect is gradual.

The main risk remains the economy.  Whilst private capital investment is
recovering strongly, the government's financial position remains weak and
restructuring implies a continuation of tough conditions in the labour market.

Warrantholders' Circular

On 30 November 2000 Warrantholders will have the fifth opportunity to exercise
their subscription rights.  I have written separately to Warrantholders
reminding them of this opportunity and setting out the steps they must take if
they wish to exercise their subscription rights.  Warrantholders are reminded,
however, that they will have further opportunities to exercise their
subscription rights in any of the years 2001 to 2004.

Annual General Meeting 

The Annual General Meeting will be held on Friday 17 November 2000 and
shareholders are invited to attend. The meeting will include a presentation by
the investment manager on the prospects for the Japanese economy and on
investment strategy.

Jeremy Hill
Chairman


ANNUAL REPORT AND ACCOUNTS
The Annual Report and Accounts will be mailed to registered shareholders at
their registered addresses in October 2000 and from that date copies of the
Annual Report and Accounts will be made available at the Company's registered
office, 31 Gresham Street, London, EC2V 7QA.



Enquiries:            Schroder Investment Management Limited

Christine Higgens     (020 7658 3496)