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LONDON (Alliance News) - The Baillie Gifford Japan Trust PLC Wednesday said it outperformed its benchmark index in its last financial year by 5.7 percentage points.
In a statement, the trust said its net asset value per share, after deducting borrowings at fair value, rose 9.4% in the year to August 31, while the TOPIX total return (in sterling terms) gained 3.7%. The trust's NAV per share, after deducting borrowings at fair value, was 353.3 pence at the end of August.
In the period, the trust's share price rose by 10.8%.
According to the trust, its positive absolute and relative performance came from investment in a variety of sectors and stocks as a broad spectrum of stocks performed well.
"There were six individual stock contributors of more than 0.5% to outperformance, with Iriso Electronics the biggest contributor. Some of the internet related stocks were weak although no one holding detracted more than 0.4% from performance," the trust said.
It added that gearing, or borrowing, was beneficial to returns.
"After a strong performance from Japanese equities in 2012/2013 the latest year has been a more muted one. The changes being wrought in Japan should be beneficial for the corporate sector and the equity market. Our managers are still finding interesting companies in which to invest," Chairman Richard Barfield, who will be succeeded by Nick Bannerman at the end of the trust's annual general meeting scheduled for November 26, said in a statement.
The trust is managed by Edinburgh-based Baillie Gifford.
The Baillie Gifford Japan Trust shares were Wednesday quoted down 0.8% at 362.00 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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