(Alliance News) - Baillie Gifford Japan Trust PLC on Wednesday said it recommended a significantly higher dividend than a year ago despite net asset value falling and NAV total return swinging to a negative.
The investment management company proposed a dividend of 9.00 pence per share for the financial year that ended August 31, up 50% from 6.00p a year earlier.
Income from overseas dividends rose 17% to GBP20.1 million from GBP17.2 million year-on-year.
"Given the difficulties globally and sharp share price falls it reflects very well on your underlying investments that in aggregate they have continued to grow their dividends. Consequently, your company will pay an increased dividend of 9p compared with 6p in the previous year, entirely covered by increased dividend income from the portfolio," Baillie Gifford Japan explained.
The company said NAV per share fell 17% to 842.4 pence from 1,012.8p. NAV total return swung to negative 16% from positive 21% a year prior. Further, it swung to an annual pretax loss of GBP153.5 million from a profit of GBP162.4 million.
Looking ahead, Chair David Kidd noted a "great deal of uncertainty facing investors at present", citing inflation, interest rates and bond yields. However, he added that "the board is optimistic that the long-term stock-picking skills of the managers will return to the fore."
Baillie Gifford Japan shares were down 0.4% at 705.00p each in London on Wednesday afternoon.
By Tom Budszus; tombudszus@alliancenews.com
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Baillie Gifford Japan Trust PLC (BGFD)