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(Alliance News) - Baillie Gifford Japan Trust PLC on Friday reported lower interim performance for the second year running as its net asset value fell.
For the six months to the end of February, the investment trust focused on Japanese equities posted net asset value per share of 729.9 pence, down from 792.1p posted at the end of August. Net assets reduced to 673.3 million from GBP732.1 million.
The stock closed 1.6% lower at 601.00p each on Friday in London, recording a further fall from 675.0p recorded at the end of February. At the end of August, the shares were trading at 791.0p each.
No interim dividend was declared.
Baillie Gifford said its investments in cosmetics website iStyle and smartphone gaming company Mixi hurt its performance, returning negative 0.5% and negative 0.4% respectively.
Over the period it bought three new holdings and sold four holdings. the company said new investments included online legal-advice platform Bengo4.com and online advertiser Raksul, adding that both businesses are growing rapidly. Another new holding Denso - which is a Toyota group company with a focus on electronics - is expected to benefit from the rise in the trend for hybrid and electric cars.
Real estate company Invincible Investment Corporation and travel operator H.I.S were sold on the belief that the Covid-19 outbreak will have a " deep impact" on the travel and hospitality industries. The holdings in Advantest and Shimadzu were sold as Baillie Gifford said it no longer sees "sufficient upside potential relative to the new ideas."
The trust said that it ended the interim period with a net gearing of 8.9%.
Looking ahead, it said: "This prudent starting position has given us the opportunity to buy more of businesses in which we have conviction during recent sharp falls as the market has been gripped by coronavirus fears. Regardless of how bad the coronavirus impact is in the shorter-term our view is that your company has a portfolio of solid growth companies with strong long-term prospects and attractive valuations."
By Ife Taiwo; ifetaiwo@alliancenews.com
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