LONDON (Alliance News) - Baillie Gifford Japan Trust PLC on Thursday reported a "disappointing" double-digit fall in its interim net asset value per share compared to the prior year amid signs of a "global slowdown".
Furthermore, the company's Chair Nick Bannerman said he will step down from his role in December after five years in the role.
Keith Falconer, who has been a director since 2014, will take on the role of chair.
For the six months to February 28, the investment trust focused on on Japanese equities posted NAV per share of 702.2 pence, down 16% from last year's 835.8p.
Net assets reduced to GBP646.0 million from GBP756.1 million a year ago.
"This is disappointing. However, we continue to believe that it is more meaningful to consider performance over longer time horizons. Over the past three years the NAV of your company is up by 64.4% and the share price by 68.3%," Baillie Gifford Japan added.
It continued: "Herein we see one of the challenges of equity investing in action. Strategies can deliver good results over the long-term but that does not make them immune to short-term challenges. To achieve a good long-term outcome we need to be prepared to accept short-term volatility and focus on actual investing - holding a portfolio of good companies with attractive growth prospects for the long term."
Looking ahead, the trust said it continues to be excited about investment opportunities in Japan, as it remains optimistic about the future.
Furthermore, the limited exposure to the UK market leaves the company with no concerns about the impact of Brexit on its portfolio.
Baillie Gifford Japan Trust shares were trading 0.9% lower at 742.48 pence each early Thursday morning in London.
Baillie Gifford Japan Trust PLC (BGFD)