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LONDON (Alliance News) - The Baillie Gifford Japan Trust PLC said on Tuesday its outlook remains positive following a rise in net asset value per share over its recently-ended financial year.
The trust, managed by Edinburgh-based fund management company Baillie Gifford, recorded a 22% rise in its net asset value per share over the year ended August 31, significantly outperforming its benchmark index, the Tokyo Stock Price Index total return, which gained 7.8% in the same period.
The main driver of returns was stock picking, the company said. The Baillie Gifford Japan Trust also said it borrows in yen to invest in stocks and this decision was helpful given the strong absolute performance in yen.
Baillie Gifford Japan Trust's NAV per share stood at 835.8 pence at August 31, up from 685.8p on the same date the year before. Net assets were up to GBP756.1 million from GBP575.2 million.
Share price during the period rose by 20%, breaking through 800.00p for the first time, the company said. As at the end of August, shares traded at a 2.7% premium to NAV.
Shares in Baillie Gifford Japan Trust were down 0.1% at 865.27p on Tuesday.
The company proposed 0.60p per share final dividend, compared to none paid the year prior.
"The economy has grown for six successive years and, despite some distressing and damaging natural disasters this year, the signs are encouraging for 2019," said Chairman Nick Bannerman.
"There also remain some political, tensions in the region, especially over US-China trade relations, however we remain positive on the outlook for investments in the Baillie Gifford Japan Trust portfolio," added Bannerman.
