Interim Results

SchroderJapan Growth Fund PLC
26 March 2002


Press Release

26 March 2002

                                Interim Results

The Directors of Schroder Japan Growth Fund plc announce the unaudited interim
results for the six months ended 31 January 2002

                                               Six months ended                         Six months ended
                                               31 January 2002                           31 January 2001
                                        Revenue       Capital         Total       Revenue       Capital         Total
                                          £'000         £'000         £'000         £'000         £'000         £'000

Realised (losses)/ gains on                   -         (521)         (521)             -         8,362         8,362
investments
Unrealised losses on investments              -      (21,386)      (21,386)             -      (28,998)      (28,998)
Realised exchange rate losses                 -         (435)         (435)             -         (222)         (222)
Realised exchange rate loss on the            -             -             -             -       (3,056)       (3,056)
loan facility
Unrealised exchange rate gain on              -         1,318         1,318             -         3,887         3,887
the loan facility
Investment Income                           551             -           551           603             -           603
Bank deposit interest                         8             -             8            30             -            30
Investment management fee                 (579)             -         (579)         (724)             -         (724)
Administration expenses                   (179)             -         (179)         (206)             -         (206)
Deficit before finance costs and          (199)      (21,024)      (21,223)         (297)      (20,027)      (20,324)
taxation
Interest payable                          (156)             -         (156)         (178)             -         (178)
Deficit on ordinary activities            (355)      (21,024)      (21,379)         (475)      (20,027)      (20,502)
before taxation
Tax on ordinary activities                 (83)             -          (83)          (86)             -          (86)
Deficit attributable to equity            (438)      (21,024)      (21,462)         (561)      (20,027)      (20,588)
shareholders
Deficit per ordinary share               (0.35)       (16.82)       (17.17)        (0.45)       (16.02)       (16.47)
                                          Pence         Pence         Pence         Pence         Pence         Pence



                                                             Six months ended 31       Six months ended 31
                                                                 January 2002              January 2001
Abridged Cash Flow Statement                                        £'000                     £'000

Net cash outflow from operating activities                                     (199)                    (391)

Net cash outflow from servicing of finance                                      (164                    (178)

Tax paid                                                                        (83)                     (57)

Net Cash Inflow/(Outflow) from financial investment                            2,723                  (1,731)

Net Cash (Outflow)/Inflow from financing                                       (435)                    (240)

Net cash Inflow/(Outflow)                                                      1,842                  (2,597)
                                                                               


                                                            As at 31 January 2002       As at 31 July 2001
Assets                                                              £'000                     £'000

Listed investments at market value                                           107,927                  132,536

Other current (liabilities)/assets                                           (3,101)                  (5,424)

Creditors: amounts falling due after one year                               (13,223)                 (14,047)

Net Assets                                                                    91,603                  113,065
                                                                              
Net asset value per share - undiluted                                         73.28p                   90.45p
                                                                             
Net asset value per share - diluted                                                -                        -
                                                                                   


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
2001 does not constitute the Company's statutory accounts for that financial
year. Statutory accounts for the financial year ended 31 July 2001 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 2001 and 31 July 2001 : the
same). The diluted net asset value shown is calculated in accordance with the
SORP. It is based on the assumption that the 24,996,500 warrants in issue at 31
January 2002, (31 January 2001 and 31 July 2001: the same) 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 any period.


Investment Manager's Review

Performance

The Company's net asset value per share fell by 19.0% during the six months to
31 January 2002 compared to a fall in the Tokyo Stock Exchange First Section
Total Return Index in sterling terms of 22.8%.

Unlike most stockmarkets Japan failed to rally significantly after September
11th. The combination of continuing bad news about the economy, the lack of
progress with reform and downgrades of the country's credit rating weighed on
investors' minds. The impact was seen most clearly in the foreign currency
markets where the Yen declined by approximately 7% versus sterling.

Economic news over the period was negative as Japan officially entered a
recession, its third in ten years, and the unemployment rate hit a record of
5.6%. With several prominent bankruptcies, including Taisei Fire and Marine, the
financial system remains deeply troubled but the government has still to
announce plans to reform it. Indeed, the Koizumi administration has made little
progress in its attempts to reform the economy and there are signs that the
Prime Minister is struggling in his efforts to overcome opposition from the more
traditionalist elements of his party.

October and November saw companies release their results for the first half of
the financial year and they clearly showed the impact of the slowing economy.
Pre-tax profits fell 36.9% and many companies, particularly in the manufacturing
and financial sectors, reduced their forecasts for the full year.

Relative to the market, performance benefited from the zero exposure to banks
and the overweight position in smaller companies. Stock selection also benefited
more broadly from the emphasis on companies with strong balance sheets and
cashflow.

Stockmarket Outlook

The economic background is expected to improve over the next six months. A
combination of improving demand overseas, especially capital investment in the
US, the weaker Yen and the reduction in Japanese inventory levels, all point to
some cyclical improvement. This should enable profits to recover somewhat
following the steep decline this fiscal year. In addition valuation levels
relative to Japan's own history and versus other international stockmarkets look
favourable.

Unfortunately progress on restructuring has been slower than we had expected,
and the weakening in Prime Minister Koizumi's popularity suggests it is now less
likely in the future. Efforts by companies, whilst they are moving in the right
direction, are in most cases still too slow and insufficiently radical.

Investment policy

As a result of the above we continue to concentrate on two main areas in the
investment portfolio.

The majority of the portfolio is invested in companies which can deliver
earnings growth despite the weak domestic economy, which include domestic growth
and restructuring names such as Pharmaceuticals and Railways as well as global
cyclicals including Electronic Components. We also have about one third of the
portfolio invested in high quality medium and smaller sized companies which have
strong balance sheets and cashflow and very low valuations.

Overall there is a strong bias to quality both in terms of better than average
profitability and balance sheet strength.

Since the end of the period the Company's Net Asset Value has increased from
73.36p to 82.48p representing an increase of 12.4% (as at close of business on
21 March 2002).




Interim Report


The Interim Report will be sent by mail to shareholders and warrantholders at
their registered addresses in April 2002 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:


Neil Olofsson           Schroder Investment Management Limited

26 March 2002           (020 7658 3206)



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