Interim Management Statement

RNS Number : 4407Z

Schroder Income Growth Fund PLC

18 July 2008

SCHRODER INCOME GROWTH FUND PLC

Interim Management Statement for the Quarter ended 31 May 2008

The Board of Schroder Income 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 March 2008 to 31 May 2008.

Investment Objective

The Company's principal investment objectives are to provide real growth of income, being growth of income in excess of the rate of inflation, and capital growth as a consequence of the rising income.

Third Interim Dividend for the year ending 31 August 2008

On 18 June 2008, the Board declared a third interim dividend of 1.60p net per share for the year ending 31 August 2008, which is payable on 31 July 2008 to shareholders on the register on 27 June 2008.

Company Statistics as at 31 May 2008

Net Assets	£139.9 million
Net Asset Value per Ordinary Share (excluding current year undistributed revenue)	203.61p
Share Price	183.50p
Discount	(9.9%)
Number of Portfolio Holdings	34

Cumulative Performance to 31 May 2008 (Total Return in percentage terms)

Performance over	3mnths	6mnths	1yr	5yr
Share Price (Total Return)	2.3%	(3.8)%	(15.4)%	50.6%
Net Asset Value (Total Return)	3.5%	(7.4)%	(14.5)%	66.8%
FTSE All-Share Index Total Return	3.9%	(4.2)%	(7.1)%	84.6%

All Performance Data Source: Fundamental Data.

Portfolio Information as at 31 May 2008

Ten Largest Holdings

Stock Name	Sector Classification	Market Value (£)	Percentage of NAV (%)
Royal Dutch Shell 'B'	Oil & Gas	11,981,892	9.01
BP	Oil & Gas	9,087,905	6.84
GlaxoSmithKline	Healthcare	7,265,910	5.47
Astrazeneca	Healthcare	6,589,025	4.96
HSBC	Financials	6,517,940	4.90
Vodafone	Telecommunications	6,051,317	4.55
Rexam	Industrials	5,326,868	4.01
Aviva	Life Insurance	4,935,138	3.71
BT Group	Telecommunications	4,757,607	3.58
National Grid	Utilities	4,698,469	3.53

Sector Allocation

Sector

Percentage of NAV (%)

Financials	20.78
Oil & Gas	14.92
Consumer Goods	11.51
Consumer Services	11.27
Industrials	10.44
Healthcare	9.81
Utilities	7.75
Telecommunications	7.65
Net current assets	5.87

Changes to Share Capital during the quarter ended 31 May 2008

	Issued Ordinary shares of 10p each
As at 1 March 2008	68,688,343
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	N/A
Shares remaining in issue as at 31 May 2008	68,688,343

Material Events or Transactions

There have been no other material events or transactions that have taken place between 1 March 2008 and the date of publication of this Statement.

Recovery of VAT on Management Fees

As indicated in the Chairman's Statement in the Company's Half-Yearly Report, the Board has been actively pursuing the potential reclaim of VAT on management fees previously paid to the Investment Manager. While the overall position remains extremely complex, the Board can conservatively estimate at this stage that, following an audit of the Company's records undertaken by the Manager and HM Revenue & Customs, the Company will be able to recover at least £1.1 million (excluding any simple interest) paid on management fees for the period April 2001 to October 2007. As a consequence, an amount of £1.1 million will be incorporated into the net asset value of the Company from Monday, 21 July 2008 and reflected in the Company's net asset value announcements with effect from 22 July 2008.

There are two further periods, 1994-1996 and 1996-2001, for which further recovery may be achieved but the extent of any potential VAT reclaim for those periods remains uncertain. The Board will continue to the monitor the situation to achieve a successful outcome.

Company Information as at 31 May 2008