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Schroder Asian Growth Fund Inc – ‘N-30D’ for 10/31/96

As of: Monday, 1/6/97 · For: 10/31/96 · Accession #: 912057-97-233 · File #: 811-08150

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 1/06/97  Schroder Asian Growth Fund Inc    N-30D      10/31/96    1:76K                                    Merrill Corp/FA

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Annual or Semi-Annual Report Mailed to                29    133K 
                          Shareholders

Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Investment Adviser
1	1st Page - Filing Submission
28	Investment Adviser

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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787 Seventh Avenue, New York, New York 10019                                    
(800) 730-2932                                                                  

INVESTMENT OBJECTIVE                                                            

Long-term capital appreciation through investment primarily in equity   
securities of Asian companies.                                                  

INVESTMENT MANAGER                                                              

    Schroder Capital Management International Inc. (the "Investment Adviser") is
a wholly-owned indirect subsidiary of Schroders plc, the London Stock Exchange  
listed holding company parent of an investment banking and investment management
group of companies (the "Schroder Group") that dates its origins to 1804. The   
investment management operations of the Schroder Group are located in 18        
countries worldwide, including ten in Asia. The Schroder Investment Management  
Group has been managing international investment portfolios since the early     
years of this century. At October 31, 1996 the Schroder Investment Management   
Group had over $130 billion in assets under management. At that date, the       
Investment Adviser, together with its U.K. affiliate, Schroder Capital          
Management International Ltd., had over $20 billion under management, of which  
approximately $9.8 billion was invested in the Asian region.                    

                                                                December 2, 1996
Dear Shareholder,                                                               

   On October 31, 1996 the Fund's net asset value per share was $13.15 and the
closing price on the New York Stock Exchange was $12.00. Over the fiscal year,  
the Fund's total return was 4.2% while the share price was up by 7.9%.          

On October 14, 1996, the Fund announced that, consistent with the Fund's
Prospectus, the Board of Directors had fixed the 12 consecutive calendar weeks  
beginning on November 11, 1996 and ending on January 31, 1997 as the measurement
period for the purpose of determining the average trading price of the Fund's   
shares. If the average of the Fund's closing price per share on the Fund's      
valuation day in each week during the measurement period represents a discount  
of three percent or more from the Fund's average net asset value as determined  
on the same days, a tender offer for shares of the Fund will be conducted during
the first calendar quarter of 1997. Once the measurement period has expired, the
Board of Directors will be in a position to take appropriate action, if         
required, such as establishing the extent of any tender offer.                  

Three years ago, management of your Fund was preparing to invest the    
proceeds of the Fund's initial public offering upon the Fund's commencement of  
operations on December 30, 1993. The proceeds had been raised during a time of  
extraordinary investor euphoria about emerging markets in general and Asia in   
particular. At that time, management cautioned that the Fund should be          
considered a long-term investment vehicle, not as a complete investment program,
and that the heady returns of 1993 should not be projected into the future.     
However, a series of unforeseeable and independent external events, taken       
together, drained liquidity from Asian markets and undermined investor          
confidence towards foreign stock investment. A number of factors potentially    
impacted investor appetite for overseas investment, namely (i) the hike in U.S. 
interest rates in February 1994 which fed through immediately to a number of    
Asian markets, (ii) the Mexican crisis in December 1994, which reminded         
investors that the greater potential for returns in emerging markets is         
accompanied by a higher degree of risk, and (iii) the slowdown in U.S. import   
growth in the first half of 1996, which resulted in a sharp slowdown in the     
growth of exports from Asia and greater pressure on a number of countries'      
deteriorating current account deficits.                                         

Today, however, as much as three years ago, management believes that all
investors should have a portion of their investments diversified                
internationally. Because markets do not move in lockstep, but react to local    
cyclical factors, such diversification spreads investment risk and provides the 
potential for downturns in one geographic market to be offset by the growth in  
another. Although the U.S. market, represented by the S&P 500                   
Index-Registered Trademark-, has outperformed international markets represented 
by the MSCI EAFE Index, by 16% over the past three years over the past twenty   
years, the roles were reversed with the EAFE Index up 1,009% versus the S&P 500 
Index up 585%. (See Table I)                                                    

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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TABLE I 
S&P 500 VS. MSCI EAFE 
1976 - 1996 

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

  DATE       EAFE        S&P                  DATE        EAFE        S&P   
                                                                            
12/75        117.235      90.19                 12/75                       
03/76        119.289     102.77                 03/76                       
06/76        116.354     104.28                 06/76                       
09/76        111.958     105.24                 09/76                       
10/76        104.441      102.9                 10/76       0.00%      0.00%
12/76        116.809     107.46                 12/76      11.84%      4.43%
03/77        117.883      98.42                 03/77      12.87%     -4.35%
06/77        122.314     100.48                 06/77      17.11%     -2.35%
09/77        128.266      96.53                 09/77      22.81%     -6.19%
12/77        133.879       95.1                 12/77      28.19%     -7.58%
03/78        145.718      89.21                 03/78      39.52%    -13.30%
06/78        152.821      95.53                 06/78      46.32%     -7.16%
09/78        173.008     102.54                 09/78      65.65%     -0.35%
12/78         172.59      96.11                 12/78      65.25%     -6.60%
03/79        175.089     101.59                 03/79      67.64%     -1.27%
06/79        172.174     102.91                 06/79      64.85%      0.01%
09/79        184.391     109.32                 09/79      76.55%      6.24%
12/79        175.723     107.94                 12/79      68.25%      4.90%
03/80        162.171     102.09                 03/80      55.28%     -0.79%
06/80        195.379     114.24                 06/80      87.07%     11.02%
09/80        205.885     125.46                 09/80      97.13%     21.92%
12/80        209.132     135.76                 12/80     100.24%     31.93%
03/81        208.775        136                 03/81      99.90%     32.17%
06/81        204.948     131.25                 06/81      96.23%     27.55%
09/81        179.568     116.18                 09/81      71.93%     12.91%
12/81        198.987     122.55                 12/81      90.53%     19.10%
03/82        174.436     111.91                 03/82      67.02%      8.76%
06/82        167.972     109.61                 06/82      60.83%      6.52%
09/82        163.468     120.42                 09/82      56.52%     17.03%
12/82        189.778     140.64                 12/82      81.71%     36.68%
03/83        199.335     152.96                 03/83      90.86%     48.65%
06/83        212.964     168.11                 06/83     103.91%     63.37%
09/83        216.755     166.07                 09/83     107.54%     61.39%
12/83        229.467     164.93                 12/83     119.71%     60.28%
03/84        263.088     159.18                 03/84     151.90%     54.69%
06/84        230.793     153.18                 06/84     120.98%     48.86%
09/84         230.86      166.1                 09/84     121.04%     61.42%
12/84        240.985     167.24                 12/84     130.74%     62.53%
03/85        262.577     180.66                 03/85     151.41%     75.57%
06/85        278.328     191.85                 06/85     166.49%     86.44%
09/85        318.107     182.08                 09/85     204.58%     76.95%
12/85        368.643     211.28                 12/85     252.97%    105.33%
03/86        476.653      238.9                 03/86     356.38%    132.17%
06/86        516.248     250.84                 06/86     394.30%    143.77%
09/86        593.676     231.32                 09/86     468.43%    124.80%
12/86        614.894     242.17                 12/86     488.75%    135.34%
03/87        755.779      291.7                 03/87     623.64%    183.48%
06/87        806.924        304                 06/87     672.61%    195.43%
09/87        850.018     321.83                 09/87     713.87%    212.76%
12/87        757.452     247.08                 12/87     625.24%    140.12%
03/88        870.168     258.89                 03/88     733.17%    151.59%
06/88        829.333      273.5                 06/88     694.07%    165.79%
09/88        832.021     271.91                 09/88     696.64%    164.25%
12/88        959.398     277.72                 12/88     818.60%    169.89%
03/89        959.226     294.87                 03/89     818.44%    186.56%
06/89        897.302     317.98                 06/89     759.15%    209.02%
09/89       1005.498     349.15                 09/89     862.74%    239.31%
12/89       1047.862      353.4                 12/89     903.31%    243.44%
03/90        837.736     339.94                 03/90     702.11%    230.36%
06/90        914.295     358.02                 06/90     775.42%    247.93%
09/90        717.243     306.05                 09/90     586.74%    197.42%
12/90        788.981     330.22                 12/90     655.43%    220.91%
03/91        843.884     375.22                 03/91     708.00%    264.65%
06/91        794.462     371.16                 06/91     660.68%    260.70%
09/91        858.847     387.86                 09/91     722.33%    276.93%
12/91        869.354     417.09                 12/91     732.39%    305.34%
03/92        762.615     403.69                 03/92     630.19%    292.31%
06/92        774.892     408.14                 06/92     641.94%    296.64%
09/92        782.444      417.8                 09/92     649.17%    306.03%
12/92        748.613     435.71                 12/92     616.78%    323.43%
03/93        834.605     451.67                 03/93     699.12%    338.94%
06/93        914.939     450.53                 06/93     776.03%    337.83%
09/93        972.073     458.93                 09/93     830.74%    346.00%
12/93        976.896     466.45                 12/93     835.36%    353.30%
03/94       1007.545     445.76                 03/94     864.70%    333.20%
06/94       1055.281     444.27                 06/94     910.41%    331.75%
09/94       1052.513     462.71                 09/94     907.76%    349.67%
12/94       1037.861     459.27                 12/94     893.73%    346.33%
03/95       1052.885     500.71                 03/95     908.11%    386.60%
06/95       1056.166     544.75                 06/95     911.26%    429.40%
09/95         1095.8     584.41                 09/95     949.20%    467.94%
12/95       1135.634     615.93                 12/95     987.35%    498.57%
03/96       1163.955      645.5                 03/96    1014.46%    527.31%
06/96       1177.854     670.63                 06/96    1027.77%    551.73%
09/96       1171.647     687.31                 09/96    1021.83%    567.94%
10/96       1158.107     705.27                 10/96    1008.86%    585.39%

The Morgan Stanley Capital International ("MSCI") EAFE Index is a market        
capitalization index composed of companies representative of the market         
structure of 20 developed market countries in Europe, Australasia and the Far   
East.                                                                           

Outside the U.S., Asia represents approximately 43% of total market     
capitalization. Asia ex-Japan in particular has been a rapidly expanding portion
of the universe. In 1986 the total market capitalization (in US$) of Malaysia,  
the Philippines and Singapore grew from $15.1, $2.0 and $16.6 billion           
respectively, to $222.7, $58.8 and $148.0 billion, respectively in 1995.        

 The Asian region, as shown in Table II is diverse, containing developing,
newly industrialized and mature economies, providing a wide spectrum of         
investment choice and opportunity.                                              

TABLE II
DIVERSE ASIAN ECONOMIES 

[CHART] 

Source: World Development Report 1996                                           

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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   We believe a portion of investments within an international diversification
program should be dedicated to Asia. Its economic fundamentals, as shown in     
Table III, are strong: consistently high rates of economic growth have been     
achieved over a prolonged time period, along with the maintenance of            
macroeconomic stability. This growth has been supported by a shift from         
employment in agriculture into industry and services, with the result that the  
industrialization of Asia is now well under way as detailed in Table IV. This   
shift into higher paying forms of employment, and the relentless relocation of  
the population into metropolises, has underpinned the creation of an emerging   
urban middle class with increasing taste, sophistication and spending power.    
Income gains, as reflected in the GNP per capita statistics shown in Table V,   
are outstanding in the case of Malaysia, Thailand and Singapore.                

TABLE III 
COMPOUND GDP GROWTH 
%, 1988-1997

[CHART] 

Source: Jardine Fleming                                                         

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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TABLE IV
THE PERCENTAGE WORKING IN INDUSTRY AND SERVICES INCREASES 

[CHART] 

Source: World Development Report 1996                                           

TABLE V 
GNP PER CAPITA - RELATIVE TO THE U.S. 
PURCHASING POWER PARITY BASIS 

[CHART] 

Source: World Bank                                                              

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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The Fund's investments reflect management's view that Asian domestic    
marketplaces are poised to offer sustainable growth. Thus the Fund's portfolio  
emphasizes companies providing goods and services reflective of aspirations to  
the good life - better housing, convenience food, modern retailing, affordable  
pharmaceuticals, modern roadways and bridges, reliable electrical supply and a  
reasonably priced, working telephone system. Over the past three years, many of 
these companies have seen Earnings Per Share ("EPS") growth on average of 20%.  
P.T. GUDANG GARAM, a cigarette manufacturer in Indonesia has seen average EPS   
growth of 33.8% for the past 3 years; ISLAND & PENINSULAR BERHAD, a real estate 
developer in Malaysia, 29.5%; UNITED OVERSEAS BANK LTD, a commercial bank in    
Singapore, 24.1%; and THAI FARMERS BANK LTD., a commercial bank in Thailand,    
25.7%. Yet, despite this growth in corporate profits, market returns have been  
disappointing.                                                                  

Management believes the downturn in Asian markets' performance is       
predominantly cyclical. Since 1994, a majority of countries in the regions have 
tightened economic policy in order to check incipient inflationary pressures and
rising external deficits. The rising interest rates made investors cautious and 
produced softer economic activity, resulting in weak Asian stock market         
performance. External factors previously mentioned have also played a part. In  
management's view, the economic backdrop for the region's stock markets is now  
gradually improving. Softness in economic activity, alongside much lower        
inflation, is expected to pave the way for easier monetary policy and lower     
interest rates. External deficits appear to have peaked. The Schroder Group's   
economics team believes that U.S. economic activity will stay robust in 1997,   
which would improve the outlook for exports from the Asia-Pacific region.       
Management anticipates that barring any unforeseen events, stronger overall     
economic growth in the Asia-Pacific region ought to resume from mid-1997        
onwards. Stock valuations are at the lower end of their ten year range and,     
except in Hong Kong, there is little euphoria in the markets now - in some only 
acute pessimism. Management believes these are the conditions in which a few    
sparks of positive news can lead to a reappraisal.                              

    We thank our investors for their patience and continued support of the Fund.
Management will continue to adhere to its philosophy of building from the bottom
up a portfolio of high quality, fast growing Asian companies which we believe   
should form part of an investor's global portfolio.                             

    Please note that the views expressed in this report were those of the Fund's
portfolio managers as of the dates specified, and may not reflect the views of  
the portfolio managers on the date this report is first published or any time   
thereafter. These views are intended to assist shareholders of the Fund in      
understanding their investments in the Fund and do not constitute investment    
advice; investors should consult their own investment professionals as to their 
individual investment programs.                                                 

Respectfully,                                                                   

[SIGNATURE]           [SIGNATURE]                       

Laura E. Luckyn-Malone            I. Peter Sedgwick                             
President                         Chairman                                      

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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INVESTMENT REVIEW (FOR THE 12 MONTHS ENDED OCTOBER 31, 1996)                    

JAPAN                                                                           

    - Dull performance as stock market fell 0.8% over the fiscal year, including
a fall of 7.8% over the 4th fiscal quarter.                         

  - Yen weakened 10.6% against U.S.$ over the fiscal year ending October 31,
1996, closing at 114.07 Y/$.                                        

- Economic expectations raised for 4th quarter 1996; consensus still    
cautious on growth for 1997.                                        

    Notwithstanding a series of downgrades to earnings estimates for the current
year in the basic materials, semiconductor-related and securities sectors,      
Japanese companies, in aggregate, have so far surpassed their mid-year          
projections for calendar 1996. Over the next few years, management believes the 
benefits of restructuring, an improvement in cashflow and a greater emphasis by 
companies on profitability should ensure a prolonged profits upswing. Market    
average return on equity was a mere 2% for the last fiscal year against a long  
term average of around 9%, demonstrating the scope for improvement over coming  
years. Also, with bond yields back below 3% and prospective earnings improving, 
management believes the Japanese market has returned to levels of undervaluation
lower than those of last summer, when it rebounded sharply. This view is the    
basis for the amount of assets allocated to Japan which has the second highest  
country weighting in the Fund.                                                  

HONG KONG/CHINA                                                                 

 - Stock market, +28.0% over last fiscal year including +15.0% in the last
fiscal quarter, continues to outperform other markets in the region.

- Recovery in real estate market and relaxation of austerity measures in
China boosted profitability.                                        

- President Jiang Zemin consolidated his political position.            

The Hong Kong economy and real estate market bottomed in late 1995 and  
throughout 1996 have provided a positive background for the stock market. In    
addition, a slowing Chinese economy (GDP growth is forecast to be 10.0% for 1996
and inflation has fallen to 4.7%) has allowed the austerity measures put in     
place in 1993 to be relaxed, thus substantially improving the profitability     
outlook for Chinese companies. This, in combination with the mainland's more    
conciliatory tone towards Hong Kong, has encouraged the management of the Fund  
to increase the weighting in Hong Kong by 2.8% over the last quarter. Hong      
Kong/China is the largest country weighting in the Fund and the more positive   
outlook for China is reflected in the Fund's exposure to stocks such as CITIC   
PACIFIC LTD. - a diversified Chinese conglomerate, which was the largest stock  
position in the Fund as of October 31, 1996.                                    

MALAYSIA                                                                        

   - Strong market performance, climbing 26.8% over the fiscal year, 9.4% over
the 4th fiscal quarter.                                             

 - Economic outlook encouraging as tight monetary policy takes effect with
money supply and loan growth slowing.                               

- Attractive long term stock opportunities as government promotes       
infrastructure development and income per capita continues to rise. 

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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    Throughout the fiscal year, the slowing of the Malaysian economy has removed
fears of a continued deterioration in the Current Account deficit and has       
relieved upward pressure on interest rates. Against this background, the        
government has continued to emphasize infrastructure as a priority and          
Malaysia's manufacturing sector has benefitted from the rising per capita       
income. The Fund's management believes there are attractive long term           
opportunities in consumer related companies. The Fund is focused in these areas 
of strong growth through companies such as UNITED ENGINEERS (MALAYSIA) LTD., a  
well-managed construction and engineering company; and ISLAND AND PENINSULAR    
BERHAD, a property company specializing in the development of houses for        
first-time buyers.                                                              

SINGAPORE                                                                       

   - Lackluster performance as the stock market fell 3.1% for the fiscal year,
1.4% over the last fiscal quarter.                                  

- Decline in competitiveness an ongoing concern.                        

 - Portfolio emphasis reflects high spending power of Singapore consumers.

 Weak exports due to a combination of both cyclical and structural factors
were behind the weakening Singapore economy this year. The continued decline in 
competitiveness of large sectors such as ship repair has kept corporate profits 
growth subdued and the outlook dull. The Fund has allocated its holdings        
primarily in the financial services and real estate sectors through companies   
such as OVERSEAS UNION BANK LTD. and CITY DEVELOPMENTS LTD., as management      
believes these companies will continue to benefit from the powerful spending    
capacity of Singapore's consumers and Singapore's status as a safe financial hub
for Asia.                                                                       

THAILAND                                                                        

- Slower growth has depressed corporate profits and caused the market to
 decline 29.5% over the fiscal year, 17.9% in the last fiscal quarter.

- Further loss of confidence in government led Prime Minister Banharn   
Silpa-archa to resign. General election was held on November 17 and 
   General Chavalit, the leader of the New Aspiration Party, now heads the
coalition government.                                               

- Slow recovery expected in 1997.                                       

Thailand's economy continued to slow down throughout the year as export 
growth plunged to 2.4% in the first nine months of 1996, producing a current    
account deficit in excess of 8% of GDP. The prolonged downturn in the economy   
caused further problems for property developers which, in turn, adversely       
affected the banking and finance sectors as non-performing loans rose. The      
dissolution of parliament in October upon the fall of Prime Minister Banharn    
Silpa-archa's coalition government further weakened market sentiment. With      
earnings growth expectations for the market downgraded to -4.0% in 1996 after   
only 4.0% growth in 1995, the stock market reacted by falling sharply. Much of  
the bad news is now reflected in the market and the outlook for 1997 should     
improve with interest rates expected to ease and exports to recover. However,   
Fund management believes a slump in the property sector and rising bad debts in 
the finance and banking companies still encourage a cautious stance over the    
coming months.                                                                  

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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INDONESIA                                                                       

- Stock market rose 19.3% over the fiscal year, 9.7% over the 4th fiscal
quarter, led by the property and banking sectors.                   

    - Political uncertainty grew as a President Suharto's succession is still an
issue and "first family" influence grows.                           

- Firm oil prices aid trade position.                                   

  Despite relatively strong macroeconomic and stockmarket data, the Fund has
reduced its exposure to Indonesia throughout this period as political issues    
dominated the headlines and called into question, yet again, the chances of a   
smooth succession to President Suharto.                                         

   Inflation rates are expected to remain at current levels; as a consequence,
interest rates are likely to remain high, dampening expectations for the stock  
market in 1997. However, the Fund continues to believe that the long-term       
outlook is positive, supported by favorable demographics and the rising         
affluence of the population. Consequently, the portfolio emphasizes companies   
such as P.T. GUDANG GARAM, the kretek cigarette producer, and P.T. TELKOMUNIDASI
INDONESIA, the local fixed-line telephone operator, which are expected to       
benefit from these long-term trends.                                            

INDIA                                                                           

 - Stock market fell 9.6% over the fiscal year, 11.9% over the last fiscal
quarter, as earnings were downgraded.                               

- Program of deregulation continues under new government.               

   - Further liberalization and privatization of equity ownership anticipated.

   A downgrade in earnings expectations for fiscal year 1997 due to increasing
interest and depreciation charges caused a volatile market this fiscal year.    
However, the Fund used market weakness to build up its position to the current  
10% of the Fund's portfolio, as the management of the Fund continues to believe 
in the long-term development of the Indian stockmarket and economy. The Fund has
added to its holdings of MAHANAGAR TELEPHONE NIGAM LTD., the domestic provider  
of telephone services for the Bombay and Delhi areas, with a three year earnings
growth forecast of 20% per annum; and continues to hold companies such as       
RANBAXY LABORATORIES LTD., a pharmaceutical company, and HINDUSTAN LEVER LTD., a
health and household products company, which are expected to benefit from the   
wealth created by the industrialization of India.                               

KOREA                                                                           

- Worst performing market in Asia for fiscal 1996: down 36.2% over the  
fiscal year, 12.3% over the last fiscal quarter.                    

- Weak exports, particularly in electronics sector, lead stock market   
downward.                                                           

- Earnings per share decline of -30% forecast by Schroders for 1996.    

Rising real interest rates combined with a sharp fall-off in exports,   
exacerbated by a weaker yen, led the Korean economy into a decline in the last  
year. This was reflected in the stockmarket as earnings growth                  

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SCHRODER ASIAN GROWTH FUND, INC.                                                
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expectations were revised substantially downward. The Fund reduced its exposure 
earlier this year to 5.4% as of October 31, 1996. However, the emerging         
expectation of falling rates and an anticipated revival in the export sector has
brightened the outlook for the market in the coming year.                       

THE PHILIPPINES                                                                 

    - Market rose 16.9% over the fiscal year, but fell 4.4% over the last fiscal
quarter.                                                            

   - Economy enjoyed higher growth prospects as reforms put the Philippines on
sustainable growth path comparable to its Asian neighbors.          

The strong performance from the Filipino stock market was tied to robust
corporate earnings this year. The economy continued to accelerate with the GDP  
forecast to grow at 5.5% for 1996 and further acceleration expected in 1997.    

 The Fund increased its weighting in stocks such as AYALA LAND, INC 'B', a
property investor and developer which is geared to the rising standards of      
living in the Philippines, and added a new holding, METROPOLITAN BANK & TRUST   
CO., which provides the Fund with general exposure to the accelerating economic 
growth.                                                                         

DIVIDEND REINVESTMENT PLAN                                                      

The Fund offers you a plan for the reinvestment of your dividends and   
capital gains distributions in shares of the Fund. We have included a detailed  
description of the plan at the end of this report. If you wish to participate   
please contact the plan agent, State Street Bank and Trust Company, at          
1-800-426-5523.                                                                 

OTHER INFORMATION                                                               

The Fund's net asset value is published every Monday in THE WALL STREET 
JOURNAL under the heading "Closed End Funds". The Fund's net asset value is also
published in THE NEW YORK TIMES and BARRON'S.                                   

 In addition, the Fund publishes a newsletter in the middle of each month,
detailing country weightings and providing a market update. You can request a   
copy of this by calling toll-free 1-800-730-2932.                               

During the fiscal year ended October 31, 1996, there have been (i) no   
material changes in the Fund's investment objectives or policies that have not  
been approved by the shareholders; (ii) no changes in the Fund's Articles or    
Bylaws, (iii) no changes in the principal risk factors associated with          
investment in the Fund, and (iv) Laura Luckyn-Malone, the President of the Fund,
and Heather F. Crighton, a Vice President of the Fund, were the persons         
primarily responsible for the day-to-day management of the Fund.                

--------------------------------------------------------------------------------

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

PORTFOLIO CHARACTERISTICS AS OF OCTOBER 31, 1996                                

INVESTMENT BY INDUSTRY                                  

                                                                [Download Table]

INDUSTRY                         % OF NET ASSETS 
                                                 
-------------------------------------------------

Services                                  24.8%  

Real Estate                               14.1%  

Capital Equipment                         12.6%  

Finance                                   12.3%  

Multi-Industry                            11.2%  

Energy                                     9.7%  

Consumer Goods                             9.3%  

Insurance                                  2.5%  

Materials                                  1.3%  

Cash                                       2.2%  
-------------------------------------------------
Total                                    100.0%  

TOP TEN HOLDINGS                                    

                                                                [Download Table]

SECURITY                           % OF NET ASSETS 
                                                   
---------------------------------------------------

Citic Pacific Ltd. (HK)                     4.2%   

Sun Hung Kai Properties Ltd.                       
(HK)                                        3.5%   

Hutchison Whampoa (HK)                      2.9%   

Ayala Land Inc. 'B' (Phil)                  2.8%   

Island & Peninsular Berhad (Mal)            2.7%   

DCB Holdings Berhad (Mal)                   2.6%   

Mahanagar Telephone Nigam Ltd.                     
(Ind)                                       2.5%   

Swire Pacific Ltd. 'A' (HK)                 2.3%   

Glory Ltd. (Jpn)                            2.2%   

Malayan Banking Berhad (Mal)                2.2%   
---------------------------------------------------
Total                                      27.9%   

--------------------------------------------------------------------------------
SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

COUNTRY WEIGHTINGS                                      

                                                                [Download Table]

COUNTRY                           % OF NET ASSETS
                                                 
-------------------------------------------------

Hong Kong & China                         23.0%  

Japan                                     16.9%  

Malaysia                                  15.5%  

India                                     10.0%  

Singapore                                  9.5%  

Philippines                                7.0%  

Korea                                      5.4%  

Indonesia                                  5.3%  

Thailand                                   5.2%  

Cash                                       2.2%  
-------------------------------------------------
Total                                    100.0%  

--------------------------------------------------------------------------------

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

SCHEDULE OF INVESTMENTS                                                         
OCTOBER 31, 1996                                                                

                                                                [Download Table]

           COMMON STOCKS - 97.2%                       
           CHINA - 2.7%                                
   SHARES                                     VALUE US$
---------                                  ------------
2,832,000  SERVICES - 0.5%                             
           Chiwan Wharf Holdings Ltd. 'B'              
             (1)                                       
                                              1,234,410
                                           ------------
  375,000  UTILITIES ELECTRICAL & GAS - 2.2%           
           Huaneng Power International,                
             Ltd.(a)*                                  
           TOTAL CHINA                                 
           (COST $7,969,618)                           
           HONG KONG - 20.3%                           
                                              5,718,750
                                           ------------
                                              6,953,160
                                           ------------
3,160,000  CHEMICALS - 0.7%                            
           Chen Hsong Holdings Ltd.                    
                                              1,818,793
                                           ------------
7,000,000  HOLDING COMPANY - 2.0%                      
           Guangdong Investments                       
                                              5,024,898
                                           ------------
3,240,000  LEISURE & TOURISM - 2.5%                    
2,000,000  Cathay Pacific Airways                      
           Shun Tak Holdings Ltd.                      
                                              5,070,685
                                              1,319,278
                                           ------------
                                              6,389,963
                                           ------------
4,600,000  MULTI-INDUSTRY - 8.5%                       
2,234,000  China Resources Development                 
  672,000    Enterpirses                               
           Citic Pacific Ltd.                          
           Swire Pacific Ltd. 'A'                      
                                              5,176,227
                                             10,864,438
                                              5,932,096
                                           ------------
                                             21,972,761
                                           ------------
  800,000  REAL ESTATE - 3.5%                          
           Sun Hung Kai Properties Ltd.                
                                              9,105,607
                                           ------------
1,070,000  SERVICES - 2.9%                             
           Hutchison Whampoa                           
                                              7,473,324
                                           ------------
1,250,000  TRANSPORTATION - RAIL - 0.2%                
           Guangshen Railway Co. Ltd.,                 
             'H'*                                      
           TOTAL HONG KONG                             
           (COST $36,331,419)                          
           INDIA - 10.0%                               
                                                464,819
                                           ------------
                                             52,250,165
                                           ------------
  130,000  AUTOMOBILE - 1.4%                           
           Bajaj Auto Ltd.                             
                                              3,497,183
                                           ------------
  222,000  ENERGY - 0.7%                               
           Bharat Petroleum Corporation                
             Ltd.                                      
                                              1,791,947
                                           ------------
  148,000  HEALTH & PERSONAL CARE - 1.0%               
           Ranbaxy Laboratories Ltd.                   
                                              2,605,634
                                           ------------
           HOUSEHOLD PRODUCTS - 1.1%                   
           Hindustan Lever Ltd.                        
           COMMON STOCKS                               
                                              2,922,963
  132,000                                  ------------
   SHARES                                     VALUE US$
---------                                  ------------
                                                       
           INDIA (CONCLUDED)                           
           LEISURE & TOURISM - 1.0%                    
  136,650  Indian Hotels Co., Ltd.            2,540,535
                                           ------------
           MACHINERY & ENGINEERING - 1.0%              
  207,200  Tata Engineering & Locomotive               
             Company Ltd.                     2,428,326
                                           ------------
           TELECOMMUNICATIONS - 3.8%                   
  993,000  Mahanagar Telephone Nigam Ltd.     6,380,375
  110,000  Videsh Sanchar Nigam Ltd.          3,501,408
                                           ------------
                                              9,881,783
                                           ------------
           TOTAL INDIA                                 
           (COST $23,369,046)                25,668,371
                                           ------------
           INDONESIA - 5.3%                            
           BEVERAGES & TOBACCO - 1.3%                  
  874,000  P.T. Gudang Garam                  3,489,996
                                           ------------
           BUILDING MATERIALS & COMPONENTS - 0.6%      
1,018,000  P.T. Indocement Tunggal            1,540,769
                                           ------------
           FOOD & HOUSEHOLD PRODUCTS - 1.5%            
1,273,900  P.T. Indofoods Sukses Makmur       2,680,167
   82,500  P.T. Unilever Indonesia            1,239,802
                                           ------------
                                              3,919,969
                                           ------------
           TELECOMMUNICATIONS - 1.9%                   
   74,000  P.T. Indonesian Satellite                   
             Corp. 'B'(a)                     2,229,250
1,720,000  P.T. Telekomunikasi Indonesia      2,566,337
                                           ------------
                                              4,795,587
                                           ------------
           TOTAL INDONESIA                             
           (COST $12,148,844)                13,746,321
                                           ------------
           JAPAN - 16.3%                               
           BUILDING & CONSTRUCTION - 1.1%              
  188,000  Higashi Nihon House                2,710,506
                                           ------------
           ELECTRICAL EQUIPMENT - 1.0%                 
  117,000  Inaba Denkisangyo Co.              2,478,857
                                           ------------
           INDUSTRIAL COMPONENTS - 4.3%                
  225,000  Glory Ltd.                         5,795,604
  104,000  Mabuchi Motors Co., Ltd.           5,302,857
                                           ------------
                                             11,098,461
                                           ------------
           INSURANCE - 1.5%                            
  656,000  Koa Fire & Marine Insurance                 
             Co., Ltd.                        3,846,611
                                           ------------

See accompanying notes to financial statements. 
--------------------------------------------------------------------------------

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

SCHEDULE OF INVESTMENTS (CONTINUED)                                             
OCTOBER 31, 1996                                                                

                                                                [Download Table]

           COMMON STOCKS                               
   SHARES                                     VALUE US$
---------                                  ------------
           JAPAN (CONCLUDED)                           
                                                       
           LEISURE & TOURISM - 0.6%                    
  205,000  Airport Facilities Co., Ltd.       1,629,187
                                           ------------
           MACHINERY & ENGINEERING - 1.0%              
  223,000  Amada Sonoike Co., Ltd.            2,646,593
                                           ------------
           MERCHANDISING - 0.6%                        
  109,000  Kahma Co., Ltd.                    1,581,099
                                           ------------
           METAL PRODUCTS - 1.3%                       
1,365,000  Kobe Steel Ltd.*                   3,240,000
                                           ------------
           MULTI-INDUSTRY - 1.1%                       
  703,000  Hanshin Electric Railway*          2,855,262
                                           ------------
           REAL ESTATE - 0.7%                          
  144,000  Mitsui Home Co., Ltd.              1,924,220
                                           ------------
           RETAIL SALES - 1.0%                         
  110,000  Credit Saison Co., Ltd.            2,543,297
                                           ------------
           RETAIL TRADE - 0.5%                         
   60,000  Doshisha Co., Ltd.                 1,202,637
                                           ------------
           UTILITIES ELECTRICAL & GAS - 1.6%           
   70,700  Hirose Electric                    4,201,600
                                           ------------
           TOTAL JAPAN                                 
           (COST $49,419,595)                41,958,330
                                           ------------
           KOREA - 5.4%                                
           BANKING - 1.2%                              
  151,479  Shinhan Bank (1)                   3,019,561
                                           ------------
           ELECTRONICS - 0.7%                          
   17,859  Samsung Electronics Co. (1)        1,271,825
   10,204  Samsung Electronics Co. (New)               
             (1)                                706,664
                                           ------------
                                              1,978,489
                                           ------------
           MANUFACTURING - MISC. - 0.3%                
   72,000  Hyundai Motor Co., Ltd.(b)           810,000
                                           ------------
           METALS - STEEL - 0.2%                       
    8,000  Pohang Iron & Steel Co., Ltd.               
             (1)                                520,995
                                           ------------
           TELECOMMUNICATIONS - 1.8%                   
    4,450  Korea Mobile                                
             Telecommunications Corp. (1)     4,580,962
                                           ------------
           TRANSPORTATION - AIR - 0.3%                 
   40,000  Korean Air Lines (1)                 814,854
                                           ------------
           UTILITIES ELECTRICAL & GAS - 0.9%           
   77,000  Korea Electric & Power Corp.       2,270,753
                                           ------------
           TOTAL KOREA                                 
           (COST $16,595,095)                13,995,614
                                           ------------

           COMMON STOCKS                               
   SHARES                                     VALUE US$
---------                                  ------------
                                                       
           MALAYSIA - 15.5%                            
           BANKING - 4.9%                              
1,988,000  DCB Holdings Berhad (1)            6,807,680
  584,000  Malayan Banking Berhad (1)         5,779,889
                                           ------------
                                             12,587,569
                                           ------------
           CONSUMER NON-DURABLE - 1.0%                 
  920,000  R.J. Reynolds Berhad               2,676,960
                                           ------------
           DIVERSIFIED INDUSTRIALS - 1.5%              
  500,000  United Engineers (Malaysia)                 
             Ltd.                             3,958,828
                                           ------------
           ENERGY - 1.5%                               
  978,000  Tenaga Nasional Berhad             3,910,451
                                           ------------
           FOOD & HOUSEHOLD - 0.7%                     
  236,000  Nestle (Malaysia) Berhad           1,849,881
                                           ------------
           INSURANCE - 1.0%                            
  540,625  Malaysian Assurance Alliance                
             Berhad                           2,653,900
                                           ------------
           LEISURE & TOURISM - 2.2%                    
  741,500  Genting Berhad                     5,548,040
                                           ------------
           REAL ESTATE - 2.7%                          
2,069,000  Island & Peninsular Berhad         6,839,331
                                           ------------
           TOTAL MALAYSIA                              
           (COST $34,191,463)                40,024,960
                                           ------------
           PHILIPPINES - 7.0%                          
           BANKING - 1.3%                              
  145,000  Metropolitan Bank & Trust Co.      3,205,030
                                           ------------
           REAL ESTATE - 3.6%                          
6,684,375  Ayala Land, Inc. 'B'               7,132,717
3,526,500  C&P Homes Inc.                     1,612,729
3,044,060  SM Prime Holdings Inc.               649,647
                                           ------------
                                              9,395,093
                                           ------------
           TELECOMMUNICATIONS - 0.6%                   
   25,170  Philippine Long Distance                    
             Telephone                        1,510,776
                                           ------------
           UTILITIES ELECTRICAL & GAS - 1.5%           
  537,550  Manila Electric Co. 'B'            3,953,779
                                           ------------
           TOTAL PHILIPPINES                           
           (COST $14,690,691)                18,064,678
                                           ------------

See accompanying notes to financial statements. 
--------------------------------------------------------------------------------

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

SCHEDULE OF INVESTMENTS (CONCLUDED)                                             
OCTOBER 31, 1996                                                                

                                                                [Download Table]

           COMMON STOCKS                               
   SHARES                                     VALUE US$
---------                                   -----------
                                                       
           SINGAPORE - 9.5%                            
           BANKING - 3.5%                              
  740,000  Overseas Union Bank Ltd.           5,044,380
  407,880  United Overseas Bank Ltd.          3,967,873
                                            -----------
                                              9,012,253
                                            -----------
           BROADCASTING & PUBLISHING - 1.6%            
  253,200  Singapore Press Holdings Ltd.      4,207,115
                                            -----------
           MACHINERY & ENGINEERING - 1.8%              
  608,000  Keppel Corp., Ltd.                 4,533,125
                                            -----------
           REAL ESTATE - 2.6%                          
  480,000  City Development Ltd.              3,783,285
  956,000  DBS Land Ltd.                      3,014,017
                                            -----------
                                              6,797,302
                                            -----------
           TOTAL SINGAPORE                             
           (COST $21,160,936)                24,549,795
                                            -----------
           THAILAND - 5.2%                             
           BANKING - 1.5%                              
  159,000  Krung Thai Bank Public Co.,                 
             Ltd.                               430,438
  441,700  Thai Farmers Bank Ltd.             3,379,296
   48,337  Thai Farmers Bank Ltd., wts.                
             (1)*                                47,412
                                            -----------
                                              3,857,146
                                            -----------
           REAL ESTATE - 0.9%                          
  275,000  Land & House Corp., Ltd.           2,287,351
                                            -----------
           TELECOMMUNICATIONS - 1.5%                   
  188,000  Total Access Communication Co.,             
             Ltd.                             1,297,200
  330,000  United Communications                       
             Industries                       2,744,821
                                            -----------
                                              4,042,021
                                            -----------
           UTILITIES ELECTRICAL & GAS - 1.3%           
1,148,000  Electricity Generating Public               
             Co., Ltd.                        3,333,019
                                            -----------
           TOTAL THAILAND                              
           (COST $18,605,826)                13,519,537
                                            -----------
           TOTAL COMMON STOCKS                         
           (COST $234,482,533)              250,730,931
                                            -----------

                                                                [Download Table]

            CONVERTIBLE BOND - 0.6%                    
PRINCIPAL                                              
  AMOUNT                                               
  (000)                                       VALUE US$
----------                                 ------------
                                                       
            JAPAN - 0.6%                               
            MERCHANDISING - 0.6%                       
 CHF 1,900  Arcland Sakamoto                           
            .125% 2/20/98                              
            (Cost $1,386,916)                 1,606,717
                                           ------------
            SHORT-TERM INVESTMENT - 1.2%               
            REPURCHASE AGREEMENT - 1.2%                
US$  3,000  With Chase Securities                      
            Incorporated dated 10/31/96,               
            5.47%, due 11/01/96                        
            (repurchase proceeds                       
            $3,000,456); collateralized                
            by: $3,000,000 U.S. Treasury               
            Note, 7.50%, due 1/31/97                   
            (value $3,071,250) (cost                   
            $3,000,000)                       3,000,000
                                           ------------
            TOTAL INVESTMENTS                          
            (COST $238,869,449) - 99.0%     255,337,648
            Other assets less                          
            liabilities - 1.0%                2,507,064
                                           ------------
            Net Assets - 100%              $257,844,712
                                           ------------
                                           ------------

* Non-income producing security                                                 
(a) American Depositary Receipt.                                                
(b) Global Depositary Receipt.                                                  
(1) Priced at fair value as determined by the Adviser and approved by the Board 
of Directors.                                                           
Percentages are based on net assets                                             
CHF - Swiss Franc                                                               

See accompanying notes to financial statements. 
--------------------------------------------------------------------------------

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

STATEMENT OF ASSETS AND LIABILITIES                                             
OCTOBER 31, 1996                                                                

                                                                [Download Table]
                                                                               
ASSETS:                                                                        
      Investments in securities, at value (cost $238,869,449)    $ 255,337,648 
      Cash                                                           3,897,107 
      Receivable for dividends                                         333,120 
      Receivable for securities sold                                    99,493 
      Receivable for interest                                           22,331 
      Deferred organization expenses                                    73,549 
      Prepaid expenses                                                  16,653 
                                                                 ------------- 

                  Total Assets                                     259,779,901 
                                                                 ------------- 

LIABILITIES:                                                                   
      Payable for securities purchased                               1,084,326 
      Estimated tax liability on Indian investments (Note 5)           266,350 
      Investment advisory fee payable                                  220,087 
      Professional fees payable                                         84,804 
      Administration fee payable                                        55,022 
      Directors' fees payable                                           53,852 
      Unrealized depreciation on forward foreign currency                      
        contracts                                                          142 
      Accrued expenses payable and other liabilities                   170,606 
                                                                 ------------- 

                  Total Liabilities                                  1,935,189 
                                                                 ------------- 
                  Net Assets                                     $ 257,844,712 
                                                                 ------------- 
                                                                 ------------- 

 NET ASSETS WERE COMPOSED OF:                                                  
      Capital Stock, par value ($.01 per share, applicable to                  
        19,607,100 shares issued: authorized 100,000,000                       
        shares)                                                  $     196,071 
      Paid-in-capital in excess of par                             271,665,298 
      Undistributed net investment income                            1,826,585 
      Accumulated net realized losses from investments             (32,042,638)
      Net unrealized appreciation of investments (net of                       
        estimated tax liability on Indian investments of                       
        $266,350 - See Note 5)                                      16,201,849 
      Net unrealized depreciation on translation of assets and                 
        liabilities in foreign currencies and forward foreign                  
        currency contracts                                              (2,453)
                                                                 ------------- 

                  Net Assets                                     $ 257,844,712 
                                                                 ------------- 
                                                                 ------------- 
                  Net asset value per share ($257,844,712                      
                    divided by 19,607,100 shares outstanding)    $       13.15 
                                                                 ------------- 
                                                                 ------------- 

See accompanying notes to financial statements. 
--------------------------------------------------------------------------------

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

STATEMENT OF OPERATIONS                                                         
FOR THE YEAR ENDED OCTOBER 31, 1996                                             

                                                                [Download Table]
                                                                              
INVESTMENT INCOME:                                                            
      Dividends (net of foreign withholding taxes of $464,895)    $ 3,163,002 
      Interest and discount earned                                    547,282 
                                                                  ----------- 

                  Total Investment Income                           3,710,284 
                                                                  ----------- 

EXPENSES:                                                                     
      Investment advisory fee                                       2,681,822 
      Administration fee                                              670,455 
      Custodian's fees and expenses                                   298,744 
      Legal fees and expenses                                         128,639 
      Transfer agent's fees and expenses                              103,922 
      Insurance expense                                                98,315 
      Directors' fees and expenses                                     88,716 
      Reports to shareholders                                          53,675 
      Amortization of deferred organization expenses                   34,074 
      Independent accountants' fees and expenses                       26,155 
      Registration fees                                                24,260 
      Miscellaneous expenses                                           10,050 
                                                                  ----------- 
                  Total Expenses                                    4,218,827 
                                                                  ----------- 

NET INVESTMENT LOSS                                                  (508,543)
                                                                  ----------- 

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN                
  CURRENCY TRANSACTIONS:                                                      
    Net realized gain from:                                                   
      Investments                                                      21,946 
      Foreign currency transactions and forward foreign currency              
        contracts                                                   2,568,860 
    Net change in unrealized appreciation (depreciation) on:                  
      Investments (net of estimated tax liability on Indian                   
        investments of $266,350 - Note 5)                           8,574,019 
      Translation of assets and liabilities in foreign                        
        currencies and forward foreign currency contracts            (245,390)
                                                                  ----------- 
NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS AND FOREIGN                 
  CURRENCY TRANSACTIONS                                            10,919,435 
                                                                  ----------- 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS              $10,410,892 
                                                                  ----------- 
                                                                  ----------- 

See accompanying notes to financial statements. 
--------------------------------------------------------------------------------

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

STATEMENTS OF CHANGES IN NET ASSETS                                             

                                                                [Download Table]

                                              FOR THE YEAR       FOR THE YEAR   
                                                  ENDED              ENDED      
                                            OCTOBER 31, 1996   OCTOBER 31, 1995 
                                                                                
--------------------------------------------------------------------------------

INCREASE (DECREASE) IN NET ASSETS:                                              

OPERATIONS:                                                                     
      Net investment income (loss)            $    (508,543)     $     295,938  
      Net realized gain (loss) from                                             
        investment transactions                      21,946        (26,048,489) 
      Net realized gain (loss) from                                             
        foreign currency transactions and                                       
        forward foreign currency contracts        2,568,860         (3,181,314) 
      Net change in unrealized                                                  
        appreciation on investments (net                                        
        of estimated tax liability on                                           
        Indian investments of $266,350 and                                      
        $0, respectively - Note 5)                8,574,019          2,267,623  
      Net change in unrealized                                                  
        appreciation (depreciation) on                                          
        translation of assets and                                               
        liabilities in foreign currencies                                       
        and forward foreign currency                                            
        contracts                                  (245,390)         2,734,038  
                                            -----------------  -----------------
NET INCREASE (DECREASE) IN NET ASSETS                                           
  RESULTING FROM OPERATIONS                      10,410,892        (23,932,204) 
                                            -----------------  -----------------
CAPITAL STOCK TRANSACTIONS:                                                     
      Tender offer costs charged to paid-                                       
        in-capital in excess of par                 (53,304)           -        
                                            -----------------  -----------------

TOTAL INCREASE (DECREASE) IN NET ASSETS          10,357,588        (23,932,204) 
                                            -----------------  -----------------

NET ASSETS:                                                                     
      Beginning of year                         247,487,124        271,419,328  
                                            -----------------  -----------------
      End of year (including undistributed                                      
        net investment income of                                                
        $1,826,585 and $0 for 1996 and                                          
        1995, respectively)                   $ 257,844,712      $ 247,487,124  
                                            -----------------  -----------------
                                            -----------------  -----------------

See accompanying notes to financial statements. 
--------------------------------------------------------------------------------

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

FINANCIAL HIGHLIGHTS                                                      

Selected Per Share Data and Ratios:                                     

                                                                [Download Table]

                                      FOR THE      FOR THE     DECEMBER 30,  
                                    YEAR ENDED   YEAR ENDED      1993* TO    
                                    OCTOBER 31,  OCTOBER 31,    OCTOBER 31,  
                                       1996         1995           1994      
                                                                             
-----------------------------------------------------------------------------
Net asset value, beginning of                                                
  period                             $   12.62    $   13.84    $   14.01**   
Investment Operations:                                                       
Net investment income (loss)             (0.03)        0.02        (0.01)    
Net realized and unrealized gain                                             
  (loss) on investments (net of                                              
  estimated tax liability on                                                 
  Indian investments) and foreign                                            
  currencies and forward currency                                            
  contracts                               0.56        (1.24)       (0.16)    
                                    -----------  -----------     -------     
Total from investment operations          0.53        (1.22)       (0.17)    
                                    -----------  -----------     -------     
Net asset value, end of period       $   13.15    $   12.62    $   13.84     
                                    -----------  -----------     -------     
                                    -----------  -----------     -------     
Market value, end of period          $   12.00    $   11.125   $   12.00     
                                    -----------  -----------     -------     
                                    -----------  -----------     -------     
Total investment return based on                                             
  (1):                                                                       
Market value                              7.87%       -7.29%      -20.00%    
                                    -----------  -----------     -------     
                                    -----------  -----------     -------     
Net asset value                           4.20%       -8.82%       -1.21%    
                                    -----------  -----------     -------     
                                    -----------  -----------     -------     
Ratio/Supplementary Data:                                                    
Net assets, end of period                                                    
  (Millions)                         $  257.84    $  247.49    $  271.42     
Ratio of expenses to average net                                             
  assets                                  1.57%        1.65%        1.59%*** 
Ratio of net investment income                                               
  (loss) to average net assets           (0.19)%       0.12%       (0.10)%***
Portfolio turnover rate                  34.71%       66.79%       19.76%    
Average commission rate per                                                  
  share****                          $    0.02           N/A         N/A     

* Commencement of investment operations.                          

** Net of $.09 offering expenses.                                   

*** Annualized.                                                       

**** For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which a commission is charged.                                          

 (1) Total investment return is calculated assuming a purchase of common
   stock on the opening of the first day and a sale on the closing of the last
day of each period reported. Dividends and distributions, if any, are   
assumed for the purposes of this calculation, to be reinvested at prices
obtained under the Fund's dividend reinvestment plan. Total investment  
  return does not reflect brokerage commissions. Generally, total investment
   return based on net asset value will be higher than total investment return
   based on market value in periods where there is an increase in the discount
    or a decrease in the premium of the market value to the net asset value from
the beginning to the end of such periods. Conversely, total investment  
  return based on net asset value will be lower than total investment return
  based on market value in periods where there is a decrease in the discount
or an increase in the premium of the market value to the net asset value
   from the beginning to the end of such periods. Total investment returns for
periods of less than one full year are not annualized.                  

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

NOTES TO FINANCIAL STATEMENTS                                                   

OCTOBER 31, 1996                                                                

1.  SIGNIFICANT ACCOUNTING POLICIES:                                            

     Schroder Asian Growth Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 (the "Act"), as amended, as a            
non-diversified, closed-end management investment company. The Fund was 
incorporated in Maryland on November 5, 1993 and investment operations  
 commenced on December 30, 1993. The following is a summary of significant
   accounting policies consistently followed by the Fund in the preparation of
its financial statements.                                               

SECURITY VALUATION                                                      

       Portfolio securities listed or traded on a recognized stock exchange or
    NASDAQ National Market System are valued at the last reported sales price on
the exchange on which the securities are principally traded. Other      
  securities for which market quotations are readily available are valued at
the last sales price prior to the time of determination. If there is no 
sales price on such date, and if bid and asked quotations are available,
such securities are valued at the mean between the last current bid and 
   asked prices. The value of a foreign security is determined in its national
 currency as of 9:00 a.m., New York time, and that value is then converted
 into its U.S. dollar equivalent on the day of valuation as of 11:30 a.m.,
New York time. Securities for which market quotations are not readily   
 available, and securities for which, in the judgement of the Adviser, the
prices or values available do not represent the fair value of the       
instrument, are valued at fair value, pursuant to the Fund's pricing    
 procedures as determined by the Adviser and approved in good faith by the
 Board of Directors. In determining the fair value of such securities, the
  Adviser and the Board consider all relevant information, including but not
    limited to types of securities, current financial and market information and
    restrictions on dispositions. The values assigned to the securities holdings
    do not necessarily represent amounts which might ultimately be realized upon
their sale or other disposition, since such amounts depend on future    
circumstances and cannot reasonably be determined until the actual      
disposition occurs. However, because of the inherent uncertainty of such
   valuations, those estimated values may differ significantly from the values
 that would have been used had a ready market for the investments existed,
 and the differences could be material. At October 31, 1996, the portfolio
contained ten securities for which market quotations were not readily   
available and which were fair valued pursuant to the Fund's procedures. 
  These securities had a total value of $24,784,252 representing 9.6% of the
Fund's net assets.                                                      

       The Fund may enter into repurchase agreements whereby the Fund, through
its custodian, receives delivery of the underlying securities. The      
   underlying collateral is valued daily on a marked-to-market basis to assure
that the value, including accrued interest, is at least equal to the    
repurchase price.                                                       

       In the event of a default of the obligation to repurchase, the Fund has
    the right to liquidate the collateral and apply the proceeds in satisfaction
 of the obligation. If the seller defaults and the value of the collateral
declines, realization of the collateral by the Fund may be delayed or   
limited.                                                                

SECURITY TRANSACTIONS AND INVESTMENT INCOME                             

    Security transactions are recorded on trade date. Dividend income is
  recorded on the ex-dividend date except for certain dividends from foreign
securities which are recorded as soon as the Fund is informed of the    
ex-dividend date. Interest income (including accretion of discount) is  
recorded on the accrual basis. Realized gains and losses from security  
transactions are determined on the identified cost basis.               

FOREIGN CURRENCY TRANSLATION                                            

        Foreign currency amounts denominated in or expected to settle in foreign
  currencies ("FC") are translated into U.S. dollars on the following basis:
 market value of investment securities and other assets and liabilities at

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

NOTES TO FINANCIAL STATEMENTS (CONTINUED)                                       
the rate of exchange at the end of the respective period, purchases and 
sales of investment securities and income and expenses at the rate of   
exchange prevailing on the respective dates of such transactions.       

   The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
   fluctuations arising from changes in market prices of securities held. Such
   fluctuations are included with the net realized and unrealized gain or loss
from the investment.                                                    

       Reported net realized foreign exchange gains or losses arise from sales
of portfolio securities, sales and maturities of short-term securities, 
sales of FCs, currency gains or losses realized between the trade and   
settlement dates on securities transactions, the difference between the 
 amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise
  from changes in the value of assets and liabilities other than investments
in securities at fiscal year end, resulting from changes in the exchange
rate.                                                                   

DIVIDENDS AND DISTRIBUTIONS                                             

       Dividends and distributions payable by the Fund, if any, are accrued on
   the ex-dividend date. Dividends from net investment income and capital gain
distributions are determined in accordance with U.S. Federal income tax 
    regulations, which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign 
currency transactions. At October 31, 1996, the Fund increased          
  paid-in-capital by $233,732, increased net investment income by $2,335,128
   and decreased accumulated realized gains from foreign currency transactions
 and forward foreign currency contracts by $2,568,860. Net assets were not
affected by the reclassification.                                       

FORWARD FOREIGN CURRENCY CONTRACTS                                      

    The Fund may enter into forward contracts to purchase or sell FCs to
    protect against the effect of possible adverse movements in foreign exchange
    rates on the U.S. dollar value of the underlying portfolio. Risks associated
   with such contracts include the movement in value of the FC relative to the
    U.S. dollar and the ability of the counterparty to perform. Forward currency
 contracts are valued at the forward rate and are marked-to-market weekly.
    Fluctuations in the value of such contracts are recorded as unrealized gains
    or losses; realized gains or losses include net gains or losses on contracts
which have terminated by settlement.                                    

ORGANIZATIONAL COSTS                                                    

  Costs incurred by the Fund in connection with its organization and
initial registration are being amortized on a straight line basis over a
five-year period from the commencement of investment operations.        

USE OF ESTIMATES                                                        

    The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
  assumptions that affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenue and expenses during the 
reporting period. Actual results could differ from those estimates.     

2.  PURCHASES AND SALES OF SECURITIES:                                          

      The aggregate cost of securities purchased and the proceeds from sales
   of securities, excluding short-term investments, for the year ended October
31, 1996 were $91,751,957 and $88,968,172, respectively.                

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

NOTES TO FINANCIAL STATEMENTS (CONTINUED)                                       

3.  FORWARD FOREIGN CURRENCY CONTRACTS AS OF OCTOBER 31, 1996:                  

                                                        [Enlarge/Download Table]

                        CURRENCY TO   SETTLEMENT   IN EXCHANGE                  UNREALIZED    
                          DELIVER        DATE          FOR       VALUE ($)   DEPRECIATION ($) 
                                                                                              
----------------------------------------------------------------------------------------------
OPEN CURRENCY TRANSACTIONS:                                                                   
Thai Baht               THB2,023,460   11/01/96     $  79,258    $  79,388            (130)   
Thai Baht               THB  512,414   11/04/96     $  20,092    $  20,104             (12)   
                                                                                    ------    
                                                                     Total           ($142)   
                                                                                    ------    
                                                                                    ------    

4.  INVESTMENT ADVISORY AND ADMINISTRATIVE AGREEMENTS AND OTHER TRANSACTIONS    
WITH AFFILIATES:                                                        

   The Fund retains Schroder Capital Management International, Inc. as
   Investment Adviser. During the period from January 1, 1996 to May 15, 1996,
  the Investment Advisory Agreement provided for a monthly fee at the annual
rate of 1% on the Fund's average weekly net assets.                     

       At the Annual Meeting of Shareholders of the Fund held on May 15, 1996,
    the shareholders of the Fund voted to approve an amendment to the Investment
   Advisory Agreement in order to provide for a reduction in the advisory fees
 paid to the Investment Adviser. Pursuant to that amendment, effective May
16, 1996, the Investment Adviser is paid a fee at an annual rate of (i) 
1.00% of the Fund's average weekly net assets up to and including $300  
    million, and (ii) 0.85% of the Fund's average weekly net assets in excess of
$300 million.                                                           

   The Fund retains Princeton Administrators, L.P. (formerly Middlesex
Administrators L.P.) as the Administrator. For its services during the  
 period from January 1, 1996 to May 15, 1996, the Administrator received a
   monthly fee equal to the greater of $150,000 per annum or an annual rate of
0.25% of the Fund's average weekly net assets.                          

The Fund and the Administrator have entered into an amended     
Administration Agreement, effective upon the approval of the amended    
Investment Advisory Agreement on May 15, 1996. Pursuant to the amended  
    Administration Agreement, effective May 16, 1996, the Administrator receives
a monthly fee equal to the greater of (a) $150,000 per annum or (b) an  
  annual rate of (i) 0.25% of the Fund's average weekly net assets up to and
including $300 million, and (ii) 0.22% of the Fund's average weekly net 
assets in excess of $300 million.                                       

       Several individuals who are directors or officers (or both) of the Fund
   are also directors or officers of the Investment Adviser or its affiliates.

5.  FEDERAL INCOME TAXES:                                                       

    Since it is the Fund's policy to comply with the requirements of the
 Internal Revenue Code applicable to regulated investment companies and to
  distribute substantially all of its taxable income to its stockholders, no
Federal income tax provision is required.                               

       For Federal income tax purposes, the tax basis of investment securities
  owned is $238,869,449. At October 31, 1996, net unrealized appreciation on
 investments was $16,468,199. This consisted of aggregate gross unrealized
    appreciation for all securities in which there was an excess of market value
 over tax cost was $38,452,473 and aggregate gross unrealized depreciation
for all securities in which there was an excess of tax cost over market 
value was $21,984,274.                                                  

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

NOTES TO FINANCIAL STATEMENTS (CONTINUED)                                       

  For Federal income tax purposes, the Fund had a capital loss carry
  forward as of October 31, 1996 of $32,042,638 ($5,994,149 expiring in 2002
and $26,048,489 expiring in 2003) which is available to offset future   
capital gains, subject to limitations imposed under the Internal Revenue
Code.                                                                   

      Under the applicable foreign tax law, a withholding tax may be imposed
on interest, dividends, and capital gains at various rates. Indian tax  
regulations require that taxes be paid on capital gains realized by the 
    Fund. At October 31, 1996, the Fund decreased net unrealized appreciation by
   the estimated tax liability attributable to Indian investments of $266,350.

6.  CAPITAL STOCK:                                                              

       There are 100,000,000 shares of $.01 par value common stock authorized.
  There are 19,607,100 shares outstanding as of October 31, 1996. During the
year ended October 31, 1996, the Fund offered no additional shares.     

7.  TENDER OFFER PROVISION                                                      

    In accordance with provisions of the Fund's prospectus, the Board of
 Directors (the "Board") has fixed a period of twelve consecutive calendar
   weeks beginning on November 11, 1996 and ending on January 31, 1997, as the
    measurement period for the purposes of calculating the average trading price
   of the Fund's shares. In the event the average of the closing prices of the
  shares of the Fund on the Fund's valuation day in each week during such 12
  week period represents a discount of 3% or more from the average net asset
  value of the Fund as determined on the same days in the same period, it is
currently anticipated that a tender offer for shares of the Fund will be
conducted during the first calendar quarter of 1997.                    

    As of October 31, 1996, costs incurred in connection with the tender
offer in the amount of $53,304 have been charged to paid-in-capital in  
excess of par.                                                          

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

SPECIAL 1996 TAX INFORMATION (UNAUDITED)                                        

On November 26, 1996, the Fund declared an ordinary income dividend of  
$1,826,585 or $0.093159 per share to shareholders of record on December 6, 1996,
payable on December 18, 1996.                                                   

The Fund intends to elect to make an election under the Internal Revenue
Code that will allow shareholders to treat their proportionate share of income  
taxes paid by the Fund in foreign countries during its fiscal year ended October
31, 1996 as having been directly paid by the shareholders. In accordance with   
current tax laws, the foreign income and foreign tax per share (for a share     
outstanding on October 31, 1996) is as follows:                                 

                                                                [Download Table]

                          GROSS FOREIGN    FOREIGN  
                          SOURCE INCOME   TAXES PAID
COUNTRY                     PER SHARE     PER SHARE 
------------------------  --------------  ----------
                                                    
China                          0.001192           --
Hong Kong                      0.023735           --
Indonesia                      0.003395     0.001271
India                          0.004086     0.002178
Japan                          0.004826     0.002306
Korea                          0.003324     0.001589
Malaysia                       0.010689     0.009111


                          GROSS FOREIGN    FOREIGN  
                          SOURCE INCOME   TAXES PAID
COUNTRY                     PER SHARE     PER SHARE 
------------------------  --------------  ----------
                                                    
Philippines                    0.001747     0.001241
Singapore                      0.005469     0.004112
Thailand                       0.006698     0.001903
United Kingdom                 0.009528           --
                          --------------  ----------
Total                          0.074689     0.023711
                          --------------  ----------
                          --------------  ----------

    The pass-through of foreign taxes will affect only those shareholders of the
Fund who are holders on the dividend record date in December 1996. Accordingly, 
shareholders will receive more detailed information along with their Form       
1099-DIV in January 1997.                                                       

PROXY RESULTS (UNAUDITED)                                                       

During the year ended October 31, 1996, Schroder Asian Growth Fund, Inc.
shareholders voted on the following proposals. The proposals were approved at   
the annual meeting of shareholders on May 15, 1996. The description of the      
proposals and number of shares voted are as follows:                            

                                                        [Enlarge/Download Table]

--------------------------------------------------------------------------------------------------------
                                                                                  SHARES                
                                                                                 VOTED FOR   ABSTENTIONS
--------------------------------------------------------------------------------------------------------
                                                                                                        
1.         To elect certain Directors:          Peter E.                        15,667,122      468,767 
                                                Guernsey(1)                                             
                                                                                15,671,747      464,142 
                                                I. Peter                                                
                                                Sedgwick(1)                                             

(1) Nominee for Class I director to serve until 1999 annual meeting of shareholders.                    
--------------------------------------------------------------------------------------------------------


                                                                                  SHARES                
                                                                     SHARES        VOTED                
                                                                    VOTED FOR     AGAINST    ABSTENTIONS
                                                                                                        
--------------------------------------------------------------------------------------------------------
2.         To ratify the selection of Coopers & Lybrand L.L.P. as                                       
            the Fund's independent accountants.                    15,691,876      218,030      225,983 

3.         To approve an amendment to the Investment Advisory                                           
            Agreement between the Fund and the Investment                                               
            Adviser.                                               15,341,422      365,564      428,903 
--------------------------------------------------------------------------------------------------------

  There were no broker non-votes returned with respect to any matter subject
to a vote of the shareholders. There were no votes cast against either of the   
nominees for director.                                                          

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

DIVIDEND DISTRIBUTION (UNAUDITED)                                               

    On November 26, 1996, the Board of Directors of the Fund declared a dividend
of $1,826,585, or $0.093159 per share, payable on December 18, 1996 to          
shareholders of record on December 6, 1996. Through the dividend, the Fund is   
distributing its net investment income for the fiscal year ended October 31,    
1996, derived from gains realized on foreign currency contracts.                

    In addition, the Fund intends to make an election under the Internal Revenue
Code that will allow shareholders to treat their proportionate share of income  
taxes paid by the Fund in foreign countries as having been paid directly by the 
shareholders. For U.S. federal income tax purposes, therefore, the net          
investment income, foreign tax pass-through and total ordinary income per share 
for the fiscal year are as follows:                                             

                                                                [Download Table]

                   *FOREIGN TAXES                  
       NET             PAID OR      TOTAL ORDINARY 
INVESTMENT INCOME     WITHHELD          INCOME     
-----------------  ---------------  ---------------
                                                   
   $  0.093159        $0.023711        $0.116870   

* The foreign taxes paid or withheld per share represent taxes incurred by the  
Fund on interest and dividends received by the Fund from foreign sources.   
Foreign taxes paid or withheld should be included in gross income for U.S.  
 federal income tax purposes with an offsetting deduction from gross income OR
a credit for taxes paid to foreign governments. Shareholders should consult 
  their tax counsel or other tax advisors regarding the appropriate treatment of
foreign taxes paid. The per share allocation of foreign taxes will be       
reflected on shareholders' 1996 Form 1099-Div.                              

DIVIDEND REINVESTMENT PLAN                                                      

   Shareholders whose shares are registered in their own names may elect to be
participants in the Dividend Reinvestment Plan (the "Plan"), pursuant to which  
dividends and capital gain distributions to shareholders will be paid in or     
reinvested in additional shares of the Fund (the "Dividend Shares"). State      
Street Bank and Trust Company (the "Plan Agent") will act as agent for          
participants under the Plan. Shareholders whose shares are held in the name of a
brokerage firm, bank, or other nominee should contact such nominee to see if it 
will participate in the Plan on the shareholders' behalf. If the nominee is     
unable to do so, the shareholder may wish to request that their shares be       
reregistered in the shareholder's own name.                                     

A shareholder may elect to withdraw from the Plan without penalty at any
time upon written notice to the Plan Agent. When a participant withdraws from   
the Plan, or upon termination of the Plan, certificates for whole Dividend      
Shares credited to the shareholder's account under the Plan will be issued and  
cash payment will be made for any fractional Dividend Shares credited to such   
account. An election to withdraw from the Plan will, until such election is     
changed, be deemed to be an election by a shareholder to take all subsequent    
dividends and distributions in cash. Elections will be effective immediately if 
notice is received by the Plan Agent not less than ten days prior to any        
dividend or distribution record date; otherwise, such termination will be       
effective after the investment of the then current dividend or distribution. If 
a withdrawing shareholder requests the Plan Agent to sell the shareholder's     
Dividend Shares upon withdrawal from participation in the Plan, the withdrawing 
shareholder will be required to pay a $2.50 fee plus a brokerage commission.    

 Whenever the Fund declares a distribution from capital gains or an income
dividend payable either in cash or in shares of the Fund, participants in the   
Plan will receive shares of the Fund. Whenever the market price per share is    
equal to or exceeds the net asset value of the valuation date, participants will
be issued shares of the Fund at a price per share equal to the greater of (a)   
the net asset value per share on the date or (b) 95% of the market price of the 
Fund's shares on the date. The valuation date will be the dividend or           
distribution payment date or, if that date is not a trading day on the New York 
Stock Exchange, the immediately preceding trading day. The Fund will not issue  
Dividend Shares under the Plan at a price below net asset value. If net asset   
value exceeds the market price of Fund shares as of the valuation date, or if   
the Fund should declare a dividend or capital gains                             

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    
distribution payable only in cash, the Plan Agent will, as agent for the        
participants, buy Fund shares in the open market, on the New York Stock Exchange
or elsewhere, for the participants' accounts on or shortly after the payment    
date. If, before the Plan Agent has completed its purchase, the market price    
exceeds the net asset value of a Fund share, the average per share purchase     
price paid by the Plan Agent may exceed the net asset value of the Fund's       
shares, resulting in the acquisition of fewer Dividend Shares than if the       
dividend or capital gains distribution had been paid in shares issued by the    
Fund.                                                                           

   The Plan Agent maintains all shareholder accounts in the Plan and furnishes
written confirmation of all transactions in the accounts, including information 
needed by shareholders for personal and tax records. Shares in the account of   
each Plan participant will be held by the Plan Agent in noncertificated form in 
the name of the participant, and each shareholder's proxy will include those    
Dividend Shares purchased pursuant to the Plan.                                 

There is no charge to participants for reinvesting dividends or capital 
gains distributions. The Plan Agent's fee for the handling of reinvestment of   
dividends and distributions will be paid by the Fund. There will be no brokerage
charges with respect to Dividend Shares issued directly by the Fund as a result 
of dividends or capital gains distributions payable either in shares or in cash.
However, each participant will pay a pro rata share of brokerage commissions    
incurred with respect to the Plan Agent's open market purchases in connection   
with the reinvestment of dividends or capital gains distributions.              

  The automatic reinvestment of dividends and distributions will not relieve
participants of any U.S. Federal income tax that may be payable on such         
dividends or distributions. To the extent dividends and distributions are       
reinvested in additional Dividend Shares issued by the Fund, participants should
be treated for U.S. Federal income tax purposes as receiving a distribution in  
an amount equal to the fair market value, determined as of the valuation date,  
of the shares received (regardless of the net asset value of the shares on the  
valuation date), and should have a cost basis in such shares equal to such fair 
market value.                                                                   

Experience under the plan may indicate that changes are desirable.      
Accordingly, the Fund reserves the right to amend or terminate the Plan as      
applied to any dividend or distribution paid subsequent to notice of the change 
sent to participants in the plan at least 90 days before the record date for    
such dividend or distribution. The Plan may also be amended or terminated by the
Plan Agent at least 90 days prior written notice to participants in the Plan.   
All correspondence concerning the Plan should be directed to the Plan Agent at  
State Street Bank and Trust Company, P.O. Box 8200, Boston, Massachusetts       
02266-8200.                                                                     

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SCHRODER ASIAN GROWTH FUND, INC.                                                
------------------------------------------------------------                    

REPORT OF INDEPENDENT ACCOUNTANTS                                               

To the Shareholders and Board of Directors of                                   
Schroder Asian Growth Fund, Inc.:                                               

We have audited the accompanying statement of assets and liabilities of 
Schroder Asian Growth Fund, Inc., including the schedule of investments, as of  
October 31, 1996, and the related statement of operations for the year then     
ended, the statements of changes in net assets for each of the two years in the 
period then ended, and the financial highlights for each of the two years in the
period then ended, and for the period December 30, 1993 (commencement of        
operations) to October 31, 1994. These financial statements and financial       
highlights are the responsibility of the Fund's management. Our responsibility  
is to express an opinion on these financial statements and financial highlights 
based on our audits.                                                            

We conducted our audits in accordance with generally accepted auditing  
standards. Those standards require that we plan and perform the audit to obtain 
reasonable assurance about whether the financial statements and financial       
highlights are free of material misstatement. An audit includes examining, on a 
test basis, evidence supporting the amounts and disclosures in the financial    
statements. Our procedures included confirmation of securities owned as of      
October 31, 1996, by correspondence with the custodian and brokers. An audit    
also includes assessing the accounting principles used and significant estimates
made by management as well as evaluating the overall financial statement        
presentation. We believe that our audits provide a reasonable basis for our     
opinion.                                                                        

  In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of    
Schroder Asian Growth Fund, Inc. as of October 31, 1996, the results of its     
operations for the year then ended, and the changes in its net assets for each  
of the two years in the period then ended, and the financial highlights for each
of the two years in the period then ended and for the period December 30, 1993  
(commencement of operations) to October 31, 1994, in conformity with generally  
accepted accounting principles.                                                 

                            Coopers & Lybrand L.L.P.

New York, New York                                                              
December 4, 1996                                                                

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DIRECTORS                                                                       

Madelon DeVoe Talley                                                            
Peter E. Guernsey                                                               
John I. Howell                                                                  
Laura E. Luckyn-Malone, President                                               
William L. Means                                                                
David Salisbury                                                                 
I. Peter Sedgwick, Chairman                                                     

OFFICERS                                                                        

Laura E. Luckyn-Malone                                                          
President                                                         
Heather F. Crighton                                                             
Vice President                                                    
Catherine A. Mazza                                                              
Vice President and Assistant Secretary                            
Mark J. Smith                                                                   
Vice President                                                    
Margaret H. Douglas-Hamilton                                                    
Secretary                                                         
Robert Jackowitz                                                                
Treasurer                                                         

INVESTMENT ADVISER                                                              

Schroder Capital Management International Inc.                                  
787 Seventh Avenue                                                              
New York, NY 10019                                                              

ADMINISTRATOR                                                                   

Princeton Administrators, L.P.                                                  
P.O. Box 9095                                                                   
Princeton, NJ 08543-9095                                                        

INDEPENDENT ACCOUNTANTS                                                         

Coopers & Lybrand L.L.P.                                                        
1301 Avenue of the Americas                                                     
New York, NY 10019                                                              

NYSE Symbol: SHF                                                                

Notice is hereby given in accordance with Section 23(c) of the Investment       
Company Act of 1940 that the Fund may purchase at market prices from time to    
time shares of its common stock in the open market.                             

This report is sent to the shareholders of the Fund for their information. It is
not a prospectus, circular or representation intended for use in the purchase or
sale of shares of the Fund or of any securities mentioned in the report.        

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SCHRODER  
ASIAN GROWTH FUND, INC. 

[PHOTO]                                                                  [PHOTO]

                                   [PHOTO]

[PHOTO]                                               ANNUAL REPORT             
                                            OCTOBER 31, 1996

                                   [PHOTO]

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘N-30D’ Filing	Date	First	Last	Other Filings

	1/31/97	1	21	RW
Filed on:	1/6/97
	12/18/96	22	23
	12/6/96	22	23
	12/4/96	25
	12/2/96	1
	11/26/96	22	23
	11/11/96	1	21
For Period End:	10/31/96	1	29	NSAR-B
	10/14/96	1
	5/16/96	20
	5/15/96	20	22	DEF 14A, PRE 14A
	1/1/96	20
	10/31/95	16		N-30D, NSAR-B, NSAR-B/A
	9/1/95	17
	10/31/94	25		NSAR-B
	12/30/93	1	25
	11/5/93	18
				List all Filings

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Filing Submission 0000912057-97-000233 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Schroder Asian Growth Fund Inc – ‘N-30D’ for 10/31/96

As of: Monday, 1/6/97 · For: 10/31/96 · Accession #: 912057-97-233 · File #: 811-08150

Previous ‘N-30D’: ‘N-30D/A’ on 9/5/96 for 4/30/96 · Next: ‘N-30D’ on 7/9/97 for 4/30/97 · Latest: ‘N-30D’ on 3/18/98 for 1/31/98

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1Filing Table of Contents

Document Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1
Filing Table of Contents