Baillie Gifford Japan beats the market

Ballie Gifford Japan Trust, which invests in medium to smaller sized companies in the far eastern country, said it picked stocks well as it achieved an increase in its net asset value (NAV) a share in the year to August 31, bucking a decline in the benchmark index.NAV rose by 0.8% during the year and the trust's share price rose by 0.3%. The benchmark TOPIX index declined by 0.7% in sterling terms during the period.Laboratory equipment maker Sysmex, conglomerate Itochu and shipping group Rakuten were among the stocks to help the trust beat the market.'The political environment and the strength of the yen are discouraging some international investors from increasing their Japanese exposure,' the company said. 'There are however companies in Japan which have more shareholder friendly policies and which are likely to show good growth in earnings. The board is confident that the managers can continue to seek out such companies.'