(Alliance News) - Baillie Gifford Japan Trust PLC on Wednesday fell short of its benchmark in the first half of its financial year, noting a decline in investor interest in smaller and higher growth businesses as the market was focused on post-pandemic economic recovery.
The investor in small and medium sized Japanese companies said its net asset value total return was negative 15% for the six months ended February 28, while the TOPIX total return in sterling terms was negative 4.9%.
Baillie Gifford Japan's net asset value per share fell 15% over the six month period to 858.3 pence as at the end of February from 1,012.8p at the end of August.
The trust noted that among its main detractors to performance was GA Technologies Co Ltd and Sysmex Corp. Real estate services platform provider GA Technologies reported near-term operating losses, as a result of heavy investment into software development.
Blood analysis equipment firm Sysmex suffered from share price weakness due to concerns relating to China.
"Although there has been a set-back to the NAV of your company, we remain optimistic about the future. Japan is an advanced democratic nation that adheres to the rule of law. Technological change creates opportunities for smaller growth companies. Your company contains a blend of growth businesses ranging from high growth internet and automation businesses through to consumer brands and eclectic long-duration growth businesses," the trust said.
Shares in Baillie Gifford Japan Trust were up 1.5% at 822.99 pence on Wednesday in London. The wider FTSE 250 index was down 0.25.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Baillie Gifford Japan Trust PLC (BGFD)