REG - Baillie GiffordJapan - Half-year Report

Baillie Gifford Japan TrustAnnouncement

21/03/2019 07:05

RNS Number : 5047T
Baillie Gifford Japan Trust PLC
21 March 2019
 





RNS Announcement



 



The Baillie Gifford Japan Trust PLC



 



Results for the six months to 28 February 2019



 
Legal Entity Identifier: 54930037AGTKN765Y741
Regulated Information Classification: Interim Financial Report.
 
The following is the unaudited Interim Financial Report for the six months to 28 February 2019.
 
Chairman's Statement
 
Board Changes
Your Board is committed to high standards of corporate governance. In particular, it recognises the need to have a balance of skills, experience and length of service, all of which forms part of our succession planning discussions during Nomination Committee meetings. After serving 5 years as your Chairman, I will be stepping down from the Board at the conclusion of the Annual General Meeting of the Company to be held in December. The Board has agreed that I will be replaced as Chairman by Keith Falconer who has been a Director since 2014 and I am confident that the Company will benefit from his stewardship. In turn, Keith will relinquish his position as Chair of the Company's Audit Committee. A replacement Audit Chair will be appointed in due course.
 
Management Fee
During the period, the Company announced a reduction in the annual management fee payable to Baillie Gifford & Co Limited, the Company's Managers and Secretaries. With effect from 1 January 2019 the Company's annual management fee will be calculated at 0.75% (was 0.95%) on the first £50 million of net assets, 0.65% on the next £200 million of net assets and 0.55% on the remainder.
 
Brexit
As a UK listed company, the Board and Managers have considered the implications of Brexit.  Around half of the Company's investments are domestically focused within Japan and the remaining holdings have minimal exposure to the UK. The Board is therefore not concerned about the impact of Brexit on the portfolio.
 
 
Nick Bannerman
Chairman
20 March 2019
 
 
 
 
 
 
Interim Management Report
 
During the six months to the end of February 2019 the NAV of your Company, after deducting borrowings at fair value, decreased by 16.0% to 700.2p whilst the share price fell by 13.6%.  The TOPIX fell by 8.9% in sterling terms during the same period.  This is disappointing.  However, we continue to believe that it is more meaningful to consider performance over longer time horizons.  Over the past 3 years the NAV of your company is up by 64.4% and the share price by 68.3%.  The TOPIX rose by 40.4% in sterling terms during the same period.  This is encouraging.  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. 
During the last six months there have been various signs of a global slowdown.  At this stage both the depth and duration remain unclear.  When we have met with management in the manufacturing sector the general indication is that there has not yet been a rebound. 
The three largest individual stock detractors to performance were the holdings in Cyberagent (internet advertising and content), Outsourcing (employment placement service) and Zozo (internet fashion retail, formerly named Start Today). These had individual negative attributions of between -0.9% and -1.3% over the six-month period.  These are all dynamic businesses led by founders with large personal stakes in the businesses and that have managed to deliver good long term growth rates.  Interestingly, when we take a step back and look at how these shares have contributed to the portfolio over the longer term the outcomes are much more positive   Compared with acquisition cost the shares in Cyberagent are 76% higher, those in Outsourcing 181% higher, and those in Zozo are 247% higher in local currency terms.  We continue to hold the shares and have conviction that backing such opportunities will deliver good results over the longer-term.  During the six-month period no stock added more than +1.0% to performance.  The largest positive attributions were Pan-Pacific holdings (discount store chain, formerly named Don Quijote) at +0.7% and H.I.S. (discount travel agency and theme parks) at +0.5%.
The Company retains a prudent level of net gearing of around 12% at the time of writing.  This allows us to benefit from the long-term effects of investing in good quality businesses using low-cost debt but with little risk of feeling pressured to sell should share prices weaken in the short-term.  However, the gearing was unhelpful in the six-month period, contributing -1.7%, as is typical when the market is weaker in local currency terms.   
Over the period we bought three new holdings and sold five holdings.  Turnover remained low in line with our long-term time horizon.  Two of the new holdings, Gree and Mixi, create and operate games for mobile phones.  In each case the company has experienced a growth setback, but the market has, in our view, over-reacted with the result that at least two-thirds of the value of each company is covered by the net cash position on the balance sheet.  This seems very strange to us given that these are entrepreneurial companies operating with an increasing market opportunity.  DMG Mori is a machine tool manufacturer where the size of the business has been transformed by its acquisition of German machine tool manufacturer Gildermeister.  As the integration continues to progress we expect significant growth in profits.  Of the holdings sold, Pigeon and Iriso Electronics are both cases where the company has shown good growth in earnings and share price, but we think it will be difficult for margins to expand further and therefore it will be difficult for growth rates to match the past. Toyo Tire, Sanbio and Renesas are cases where we changed our view on the fundamental attraction of the business. Sanbio, a stem cell company, had a major trial failure and we believe the path to a successful future is now significantly more complicated, while the managements of both Toyo Tire and Renesas acted in ways that we do not believe are aligned to the interests of long-term shareholders. 
We continue to be excited about the opportunities for growth stock-picking in Japan and believe that a well-executed strategy delivers results. When we consider the strengths of the businesses held in the portfolio we remain optimistic about the future.
 
 
Past performance is not a guide to future performance
 
Total return information sourced from Refinitiv/Baillie Gifford. See disclaimer at end of this document.
 
See Glossary of Terms and Alternative Performance Measures in Note 13.
 




 



Responsibility statement



We confirm that to the best of our knowledge:
a)  the condensed set of Financial Statements has been prepared in accordance with FRS 104 'Interim Financial Reporting';
b)  the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (being an indication of important events that have occurred during the first six months of the financial year, their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the year); and
c)  the Interim Financial Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).
 
On behalf of the Board
Nick AC Bannerman
Chairman
20 March 2019
 

 




 
Equity Portfolio by Growth Category as at 28 February 2019
 



Secular
Growth


 
%*






Growth
Stalwarts


 
%*






Special
Situations


 
%*






 
Cyclical Growth


 
%*




Rakuten


3.2






Zenkoku Hosho


1.4






SoftBank


6.4






Itochu


2.0




SBI


3.0






Nitori


1.3






Sony


2.2






Sumitomo Mitsui Trust


1.8




Inpex


2.5






Park24


1.2






Tokyo Tatemono


1.3






Sumitomo Metal Mining


1.8




Misumi


2.4






Fukuoka Financial


0.8






Colopl


1.3






Nifco


1.5




Kubota


2.4






Mitsubishi UFJ Lease & Finance


0.7






JAFCO


0.8






Mitsubishi Electric


1.5




GMO Internet


2.4






Asics


0.6






Gree


0.7






Murata


1.5




Fanuc


2.3






Sawai Pharmaceutical


0.6






Mixi


0.6






Disco


1.3




Sysmex


2.2






Secom


0.6


















Advantest


1.2




H.I.S.


2.1






























Iida Group


1.2




Recruit Holdings


2.1






























Invincible Investment


1.0




M3


2.1






























Persol Holdings


1.0




Outsourcing


2.0






























DMG Mori


0.9




Yaskawa Electric


2.0






























Mazda Motor


0.7




Nidec


1.9






























Katitas


0.6




SMC


1.8






























Isuzu Motors


0.4




Shimadzu


1.8








































Pan Pacific
  International
  Holdings


 
 
1.7








































CyberAgent


1.7








































ZOZO


1.7








































Sato Holdings


1.6








































Topcon


1.3








































MonotaRO


1.2








































Toyota Tsusho


1.1








































Istyle


1.1








































Subaru


1.0








































Infomart


0.9








































Broadleaf


0.9








































Digital Garage


0.9








































Peptidream


0.9








































Lifull


0.7








































Keyence


0.7








































Mercari


0.6








































Nippon Ceramic


0.5








































Noritsu Koki


0.5








































Shimano


0.5








































Rizap


0.3








































Cyberdyne


0.3








































Healios K.K.


0.3








































Total


56.6






Total


7.2






Total


13.3






Total


18.4

















 
* Percentage of total assets†
 
A definition of growth categories can be found in the Managers' Report on page 10 of the Annual Report and Financial Statements at 31 December 2018.
 
† See Glossary of Terms and Alternatie Performance Measures in Note 13.
 
 
 
 



Twenty Largest Holdings at 28 February 2019 (unaudited)



 



Name


Business


Value
£'000


% of total

 assets*




SoftBank


Telecom operator and technology investor


48,287


6.4




Rakuten


Internet retail and financial services


24,015


3.2




SBI


Online financial services


23,041


3.0




Inpex


Oil and gas producer


18,995


2.5




Misumi


Online distributor of precision machinery parts


18,459


2.4




Kubota


Agricultural machinery


18,248


2.4




GMO Internet


Internet conglomerate


17,833


2.4




Fanuc


Robotics manufacturer


17,112


2.3




Sysmex


Medical testing equipment


16,550


2.2




Sony


Consumer electronics, films and finance


16,521


2.2




H.I.S.


Discount travel agency and theme parks


16,261


2.1




Reruit Holdings


Property, lifestyle and HR media


16,221


2.1




M3


Online medical services


15,834


2.1




Itochu


General trading firm


15,181


2.0




Outsourcing


Employment placement services


15,087


2.0




Yaskawa Electric


Specialist factory automation


14,884


2.0




Nidec


Specialist motors


14,579


1.9




Sumitomo Mitsui Trust


Japanese trust bank and investment manager


13,748


1.8




SMC


Producer of factory automation equipment


13,556


1.8




Shimadzu


Precision tools and equipment maker


13,533


1.8




Total






367,945


48.6



*See Glossary of Terms and Alternative Performance Measures in Note 13.




 



Income Statement (unaudited)



 







For the six months ended
28 February 2019


For the six months ended
28 February 2018








Revenue
£'000


Capital
£'000


Total
£'000


Revenue
£'000


Capital
£'000


Total
£'000




Gains on sales of investments


- 


31,470 


31,470 


- 


26,651


26,651 




Movement in investment holding gains


- 


(157,356)


(157,356)


- 


74,391


74,391 




Currency gains


- 


2,173 


2,173 


- 


2,046


2,046 




Income from investments and interest receivable


6,096 


- 


6,096 


4,908 


-


4,908 




Investment management fee


(2,035)


- 


(2,035)


(2,097)


-


(2,097)




Other administrative expenses


(309)


- 


(309)


(305)


-


(305)




Net return before finance costs and taxation


3,752 


(123,713)


(119,961)


2,506


103,088


105,594




Finance costs of borrowings


(1,190)


- 


(1,190)


(1,238)


-


(1,238)




Net return on ordinary activities before taxation


2,562 


(123,713)


(121,151)


1,268 


103,088


104,356 




Tax on ordinary activities


(610)


- 


(610)


(490)


-


(490)




Net return on ordinary activities after taxation


1,952 


(123,713)


(121,761)


778 


103,088


103,866 




Net return per ordinary share (note 5)


2.14p


(135.32p)


(133.18p)


0.90p


119.32p


120.22p













 
The total column of this statement is the profit and loss account of the Company. The supplementary revenue and capital columns are prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in this statement derive from continuing operations. 
A Statement of Comprehensive Income is not required as all gains and losses of the Company have been reflected in the above statement.
 




 



Balance Sheet (unaudited)



 







At 28 February 2019
£'000


At 31 August 2018
£'000




Fixed assets












Investments held at fair value through profit or loss (note 6)


723,155 


842,045 


















Current assets












Debtors


2,148 


4,700 




Cash and cash equivalents


34,077 


27,788 








36,225 


32,488 


















Creditors












Amounts falling due within one year


(1,951)


(3,943)




Net current assets


34,274 


28,545 




Total assets less current liabilities


757,429 


870,590 


















Creditors












Amounts falling due after more than one year:












Bank loans (note 7)


(111,436)


(114,486)




Net assets


645,993 


756,104 


















Capital and reserves












Share capital


4,600 


4,523 




Share premium


187,577 


175,455 




Capital redemption reserve


203 


203 




Capital reserve


451,735 


575,448 




Revenue reserve


1,878 


475 




Shareholders' funds


645,993 


756,104 




Net asset value per ordinary share*


702.2p


835.8p




Ordinary shares in issue (note 8)


91,999,925


90,459,925



*See Glossary of Terms and Alternative Performance Measures at the end of this document.




 



Statement of Changes in Equity (unaudited)



 
For the six months ended 28 February 2019







Share

capital
£'000


Share premium
£'000


Capital redemption reserve
£'000


Capital
reserve*
£'000


Revenue reserve
£'000


Shareholders'

funds
£'000




Shareholders' funds at 1 September 2018


4,523


175,455


203


575,448 


475 


756,104 




Shares Issued


77


12,122


-


- 


- 


12,199 




Net return on ordinary activities after taxation


-


-


-


(123,713)


1,952 


(121,761)




Dividends paid during the year (note 4)


-


-


-


- 


(549)


(549)




Shareholders' funds at 28 February 2019


4,600


187,577


203


451,735 


1,878 


645,993 



 
For the six months ended 28 February 2018







Share

capital
£'000


Share premium
£'000


Capital redemption reserve
£'000


Capital
reserve*
£'000


Revenue reserve
£'000


Shareholders'

funds
£'000




Shareholders' funds at 1 September 2017


4,194


122,698


203


449,885


(1,759)


575,221




Shares Issued


264


42,026


-


-


-


42,290




Net return on ordinary activities after taxation


-


-


-


103,088


778 


103,866




Shareholders' funds at 28 February 2018


4,458


164,724


203


552,973


(981)


721,377



*      The Capital Reserve balance as at 28 February 2019 includes investment holding gains on investments of £236,297,000 (28 February 2018 - gains of £409,233,000).




 



Condensed Cash Flow Statement (unaudited)



 







Six months to
28 February 2019
£'000


Six months to
28 February 2018
£'000




Cash flows from operating activities












Net return on ordinary activities before taxation


(121,151)


104,356 




Net losses/(gains) on investments


125,886 


(101,042)




Currency gains


(2,173)


(2,046)




Finance costs of borrowings


1,190 


1,238 




Overseas withholding tax


(563)


(427)




Changes in debtors and creditors


(737)


(2,178)




Cash from operations


2,452 


(99)




Interest paid


(1,220)


(1,027)




Net cash inflow/(outflow) from operating activities


1,232 


(1,126)




Cash flows from investing activities












Acquisitions of investments


(70,505)


(117,343)




Disposals of investments


64,789 


47,249 




Exchange differences


(209)


269 




Net cash outflow from investing activities


(5,925)


(69,825)




Shares issued


12,199 


42,290 




Equity dividends paid


(549)


- 




Bank loans drawn down


- 


62,873 




Bank loans repaid


- 


(20,045)




Net cash inflow from financing activities


11,650 


85,118 




Increase in cash and cash equivalents


6,957 


14,167 




Exchange movements


(668)


(1,122)




Cash and cash equivalents at 1 September


27,788 


10,585 




Cash and cash equivalents at 28 February*


34,077 


23,630 



* Cash and cash equivalents represent cash at bank and short term money market deposits repayable on demand.
 
 
 
 
 
 
 
 
 
 



Notes to the Condensed Financial Statements (unaudited)



 



1.
 


The condensed Financial Statements for the six months to 28 February 2019 comprise the statements set out on the previous pages together with the related notes below. They have been prepared in accordance with FRS 104 'Interim Financial Reporting' and the AIC's Statement of Recommended Practice issued in November 2014, updated in February 2018 with consequential amendments and have not been audited or reviewed by the Auditor pursuant to the Auditing Practices Board Guidance on 'Review of Interim Financial Information'. The Financial Statements for the six months to 28 February 2019 have been prepared on the basis of the same accounting policies as set out in the Company's Annual Report and Financial Statements at 31 August 2018.
Going Concern
Having considered the Company's principal risks and uncertainties, as set out in the inside front cover, together with its current position, investment objective and policy, its assets and liabilities, and projected income and expenditure, it is the Directors' opinion that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company's assets, the majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly. All borrowings require the prior approval of the Board. Gearing levels and compliance with borrowing covenants are reviewed by the Board on a regular basis. In accordance with the Company's Articles of Association, shareholders have the right to vote annually at the Annual General Meeting on whether to continue the Company. The next continuation vote will be in December 2019. The Directors have no reason to believe that the continuation resolution will not be passed at the Annual General Meeting. Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these Financial Statements and confirm that they are not aware of any material uncertainties which may affect the Company's ability to continue to do so over a period of at least twelve months from the date of approval of these Financial Statements.




2.


The financial information contained within this Interim Financial Report does not constitute statutory accounts as defined in sections 434 to 436 of the Companies Act 2006. The financial information for the year ended 31 August 2018 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The Auditor's Report on those accounts was not qualified, did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying its report and did not contain statements under sections 498(2) or (3) of the Companies Act 2006.




3.


Baillie Gifford & Co Limited, a wholly owned subsidiary of Baillie Gifford & Co, has been appointed by the Company as its Alternative Investment Fund Manager and Company Secretary. The investment management function has been delegated to Baillie Gifford & Co. The management agreement can be terminated on not less than 6 months' notice, or on shorter notice in certain circumstances. With effect from 1 January 2019, the annual management fee is 0.75% on the first £50 million of net assets, 0.65% on the next £200 million of net assets and 0.55% on the remaining net assets, calculated and payable quarterly. Prior to 1 January 2019, the annual management fee was 0.95% on the first £50 million of net assets, 0.65% on the next £200 million of net assets and 0.55% the remaining net assets, calculated and payable quarterly.
















Six months to
28 February 2019
£'000


Six months to
28 February 2018
 £'000




4.


Dividends




















Amounts recognised as distribution in the period:




















Previous year's final dividend of 0.60p (2018: nil), paid 14 December 2018






549


-
















549


-








No interim dividend will be declared.















 
 



Notes to the condensed financial statements (unaudited) (continued)



 



5.


Net return per ordinary share






Six months to
28 February 2019
£'000


Six months to
28 February 2018
 £'000








Revenue return on ordinary activities after taxation






1,952 


778




Capital return on ordinary activities after taxation






(123,713)


103,088








Net return per ordinary share is based on the above totals of revenue and capital and on 91,423,682 ordinary shares (28 February 2018 - 86,399,787), being the weighted average number of ordinary shares in issue during each period. There are no dilutive or potentially dilutive shares in issue.




6.


Fair Value
The fair value hierarchy used to analyse the basis on which the fair values of financial instruments held at fair value through the profit or loss account are measured is described below. Fair value measurements are categorised on the basis of the lowest level input that is significant to the fair value measurement.
Level 1 -  using unadjusted quoted prices for identical instruments in an active market;
Level 2 -  using inputs, other than quoted prices included within Level 1, that are directly or indirectly observable (based on market data); and
Level 3 -  using inputs that are unobservable (for which market data is unavailable).
The fair value of listed investments is the last traded price which is equivalent to the bid price on Japanese markets.
The financial assets designated as valued at fair value through profit or loss are all categorised as Level 1 in the above hierarchy. None of the financial liabilities are designated at fair value through profit or loss in the Financial Statements.
All of the Company's investments fall into Level 1 for the periods reported.




7.


Bank loans of £111.4million (¥16.5billion) have been drawn down under yen loan facilities which are repayable between August 2020 and November 2024 (31 August 2018 - £114.5million (¥16.5billion)).




8.


The Company has the authority to issue shares/sell treasury shares at a premium to net asset value as well as to buy back shares at a discount to net asset value. During the period, 1,540,000 shares (28 February 2018 - 5,275,000) were issued at a premium to net asset value raising net proceeds of £12,199,000 (28 February 2018 - £42,290,043).




9.
 
 


Transaction costs incurred on the purchase and sale of the investments are added to the purchase cost or deducted from the sales proceeds, as appropriate. During the period, transaction costs on purchases amounted to £35,000 (28 February 2018 - £54,000) and transaction costs on sales amounted to £37,000 (28 February 2018 - £29,000)




10.


Related Party Transactions




 
 
 
 


There have been no transactions with related parties during the first six months of the current financial year that have materially affected the financial position or the performance of the Company during that period and there have been no changes in the related party transactions described in the last Annual Report and Financial Statements that could have had such an effect on the Company during that period



 
 




 
Notes to the condensed financial statements (unaudited) (continued)
 



11.


Principal Risks and Uncertainties
The principal risks facing the Company are financial risk, investment strategy risk, discount risk, regulatory risk, custody and depositary risk, smaller company risk, operational risk, leverage risk and political risk. An explanation of these risks and how they are managed is set out on page 8 of the Company's Annual Report and Financial Statements for the year to 31 August 2018 and is available on the Company's website www.japantrustplc.co.uk†. The principal risks and uncertainties have not changed since the date of that report.




12.


The Interim Financial Report is available at www.japantrustplc.co.uk† and will be posted to shareholders on or around 5 April 2019.




13.


Glossary of Terms and Alternative Performance Measures (APM)




 


Total Assets
Total assets less current liabilities, before deduction of all borrowings.




 


Net Asset Value
Net Asset value (NAV) is the value of total assets less liabilities (including borrowings). The NAV per share is calculated by dividing this amount by the number of ordinary shares in issue.




 


Net Asset Value (Borrowings at Fair Value) (APM)
Borrowings are valued at an estimate of their market worth.




 


Net Asset Value (Borrowings at Par Value)
Borrowings are valued at their nominal par value. The Company's yen denominated loans are valued at its sterling equivalent. Par value approximates amortised cost.




 


Net Asset Value (Reconciliation of NAV at Par to NAV at Fair)




 





 


28 February 2019
£'000


31 August 2018
£'000




Shareholders' funds (borrowings at par value)


645,993


756,104




Add: par value of borrowings


111,436


114,486




Less: fair value of borrowings


(113,250)


(116,111)




Shareholders' funds (borrowings at fair value)


644,179


754,479




Shares in issue


91,999,925


90,459,925




Net Asset Value per ordinary share (borrowings at fair value)


700.2p


834.0p








 


Net Liquid Assets
Net liquid assets comprise current assets less current liabilities, excluding borrowings.




 


Discount/Premium/ (APM)
As stockmarkets and share prices vary, an investment trust's share price is rarely the same as its NAV. When the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount is calculated by subtracting the share price from the NAV per share and is usually expressed as a percentage of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium.




 


Total Return (APM)
The total return is the return to shareholders after reinvesting the net dividend on the date that the share price goes ex-dividend.




 


 




13.


Glossary of Terms and Alternative Performance Measures (APM) (Continued)
 
Ongoing Charges (APM)
The total expenses (excluding borrowing costs) incurred by the Company as a percentage of the average net asset value (with borrowings at fair value). The ongoing charges have been calculated on the basis prescribed by the Association of Investment Companies.




 


Gearing (APM)
At its simplest, gearing is borrowing. Just like any other public company, an investment trust can borrow money to invest in additional investments for its portfolio. The effect of the borrowing on the shareholders' assets is called 'gearing'. If the Company's assets grow, the shareholders' assets grow proportionately more because the debt remains the same. But if the value of the Company's assets falls, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets.
Gearing is the Company's borrowings at par less cash and cash equivalents expressed as a percentage of shareholders' funds.
Potential gearing is the Company's borrowings expressed as a percentage of shareholders' funds.
 




 


Leverage (APM)
 
For the purposes of the Alternative Investment Fund Managers (AIFM) Directive, leverage is any method which increases the Company's exposure, including the borrowing of cash and the use of derivatives. It is expressed as a ratio between the Company's exposure and its net asset value and can be calculated on a gross and a commitment method. Under the gross method, exposure represents the sum of the Company's positions after the deduction of sterling cash balances, without taking into account any hedging and netting arrangements. Under the commitment method, exposure is calculated without the deduction of sterling cash balances and after certain hedging and netting positions are offset against each other.




 


Active Share (APM)
Active share, a measure of how actively a portfolio is managed, is the percentage of the portfolio that differs from its comparative index. It is calculated by deducting from 100 the percentage of the portfolio that overlaps with the comparative index. An active share of 100 indicates no overlap with the index and an active share of zero indicates a portfolio that tracks the index.
 



 
The Baillie Gifford Japan Trust aims to achieve long term capital growth principally through investment in medium and smaller sized Japanese companies which are believed to have above average prospects for growth, although it invests in larger companies when considered appropriate. At 28 February 2019, the Company had total assets of £757.4m (before deduction of bank loans of £111.4m).
The Company is managed by Baillie Gifford, an Edinburgh based fund management group with around £190bn under management and advice as at 20 March 2019.
Past performance is not a guide to future performance. The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. This is because the share price is determined by the changing conditions in the relevant stock markets in which the Company invests and by the supply and demand for the Company's shares. You should view your investment as long term. You can find up to date performance information about The Baillie Gifford Japan Trust PLC on the Company website at www.japantrustplc.co.uk.†
 
 
 
20 March 2019
 
 
 
For further information please contact:
Alex Blake, Baillie Gifford & Co
Tel: 0131 275 2859
 
Roland Cross, Director
Four Broadgate
Tel: 0203 697 4200 or 07831 401 309
 
None of the views expressed in this document should be construed as advice to buy or sell a particular investment.
†      Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.
 
 
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