REG - Baillie GiffordJapan - Baillie Gifford Japan Trust Half Year Results
28/03/2025 07:00
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RNS Number : 5730C Baillie Gifford Japan Trust PLC 28 March 2025
RNS Announcement
The Baillie Gifford Japan Trust PLC
Legal Entity Identifier: 54930037AGTKN765Y741
Regulated Information Classification: Interim Financial Report
Results for the six months to 28 February 2025
The following is the unaudited Interim Financial Report for the six months to
28 February 2025 which was approved by the Board on 27 March 2025.
In the six months to 28 February 2025, The Baillie Gifford Japan Trust's net
asset value total return per share was +1.5% and the share price total return
was +2.9%. The TOPIX total return (in sterling terms) was +0.9%.
● The five largest positive contributors to performance were
SBI Holdings (+1.0%), Topcon (+0.9%), MIXI (+0.7%) and SWCC Showa (+0.5%) as
well as not owning Daiichi Sankyo (+0.6%). SBI Holdings (online financial
services) has been delivering solid operational performance against the
favourable backdrop of rising interest rates and Topcon (maker of positioning
and eyecare systems) is rumoured to have been approached by potential
acquirers.
● During the period the Company bought back 6,395,000 shares
representing 7.3% of the issued share capital as at 31 August 2024.
● Given the highly attractive investment opportunities
available and a low funding cost net gearing has been maintained at the
significant level of 20%.
Summary of unaudited results
Six months to Six months to
28 February 2025 29 February 2024
Total returns (%)(*†)
Net asset value per share 1.5 7.8
Share price 2.9 2.5
TOPIX total return (in sterling terms) 0.9 13.1
28 February 31 August 2024 % change
2025 (audited)
Shareholders' funds £695.3m £748.4m
Net asset value per share 856.9p 855.0p 0.2
Share price 767.0p 756.0p 1.5
Discount(*) (10.5%) (11.6%)
Active share(*) 84% 84%
Six months to Six months to
28 February 2025 29 February 2024
Revenue earnings per share 3.41p 4.31p
Six months to Year to
28 February 2025 31 August 2024
Period's high and low High Low High Low
Net asset value per share 905.1p 788.4p 879.7p 707.5p
Share price 790.0p 689.0p 766.0p 641.0p
Premium/(discount)(*) (10.5%) (16.5%) (6.1%) (14.8%)
(*) Alternative Performance Measure - see Glossary of Terms and
Alternative Performance Measures at the end of this announcement. The total
return is the return to shareholders after reinvesting the net dividend on the
date that the share price goes ex-dividend.
(†) Source: Baillie Gifford/London Stock Exchange Group ('LSEG') and
relevant underlying data providers. See disclaimer at the end of this
document.
Past performance is not a guide to future performance.
Interim Management Report
At first glance, the six month period to the end of February 2025 appears
subdued in investment terms. During the period the NAV total return of
your Company was +1.5% whilst the share price total return was +2.9% and the
TOPIX total return (in sterling terms) was +0.9%.
Beneath the surface, however, action has continued apace. Artificial
Intelligence ('AI') continues to advance at a rapid rate with developments in
the capabilities of the most advanced models, in the hardware used to run
them, and in lowering costs. Our view remains that this is a radically
disruptive technology that is re-shaping the competitive environment for many
businesses. On the political front, President Trump's re-election is already
resulting in geopolitical realignments and trade frictions, putting Japan at
risk of direct and indirect effects. Directly, efforts to impose tariffs on,
for example, imported cars are unhelpful to some of Japan's major companies.
Indirectly, Japan currently benefits from open trade with its major trade
partners, the USA and China, so to the extent that policies diminish global
trade they will reduce opportunity for Japan's export companies. Domestically,
the situation remains solid with modest inflation now embedded. Within the
last year, the Bank of Japan ('BoJ') ended its negative interest rate policy
and has incrementally increased rates to their current level of 0.5%. In
addition, it has been able to move away from yield curve control which
targeted a maximum yield of around 1% for the benchmark 10-year Japanese
Government Bond ('JGB'). Currently the 10-year JGB yields around 1.5%. This
normalisation of monetary policy has left 10-year yields at a similar order of
magnitude to various other countries, including China (1.8%), Sweden (2.6%)
and Switzerland (0.6%).
Turning to individual stocks, the five largest positive contributors to
relative performance were SBI Holdings (+1.0%), Topcon (+0.9%), MIXI (+0.7%)
and SWCC Showa (+0.5%) as well as not owning Daiichi Sankyo (+0.6%). The five
largest negative contributors to relative performance were Rakuten (-0.7%),
Unicharm (-0.6%), Eisai (-0.5%) and Calbee (-0.4%) as well as not owning
Mitsubishi UFJ Financial Group (-0.7%). Finally gearing impacted relative
performance by -0.4%.
SBI Holdings, which provides online financial services, has been delivering
solid operational performance against the favourable background of rising
rates. Topcon, which makes positioning and eyecare systems, is strongly
rumoured to have been approached by potential acquirers. MIXI, which develops
online games and other online businesses, has been growing profits again as a
result of successful innovation. Finally, SWCC Showa has achieved rapid profit
growth due to its ability to produce high voltage electricity cables that are
in high demand as Japan modernises its electricity grid.
With regard to detractors, Rakuten, an internet conglomerate pushing into
telecoms, is a large position that experienced a small pull-back after its
stand out performance as the top positive contributor to performance in the
previous fiscal year. We believe that the investment case of increasing
profits across its business remains intact. Unicharm's weakness may be due to
concerns around competitive intensity but we continue to regard its products
(nappies, adult incontinence products, and feminine hygiene products) as very
resilient and management as good stewards of the business. Eisai, which has
the exciting Alzheimer's treatment Leqembi, may be perceived as progressing
slightly slower than expected but we see huge potential on a longer-term view
as adoption expands. Finally, Calbee, which makes snacks, seems to be
progressing well from an operational perspective.
During the period we sold a single holding and reinvested the proceeds in
existing names where we have higher conviction. The sold holding was
long-standing position Tokyo Tatemono which has benefitted from multi-year
development of its interests in Yaesu, an area of Tokyo separated from the key
Marunouchi business district by Tokyo Station. Looking forward the company
will be shifting its business more towards condominium development, which we
believe to be less attractive.
With much changing in the world we believe that investors in Japan will be
well-served by sticking to the core investment principle of focusing on
companies with sound prospects for sales and earnings growth. Your company
maintains significant exposure to the long-term secular trends of
digitalisation, automation and AI. Furthermore, given that the portfolio
currently owns no car manufacturers and has a more domestic orientation than
the wider Japanese stock market we believe that it will be relatively
resilient to tariffs imposed by the USA. Given the highly attractive
investment opportunities available and a low funding cost we have maintained
net gearing at the significant level of 20%.
Baillie Gifford & Co
27 March 2025
See Glossary of Terms and Alternative Performance Measures at the end of this
document.
Total return information sourced from LSEG/Baillie Gifford. See disclaimer at
the end of this document.
Past performance is not a guide to future performance.
The principal risks and uncertainties facing the Company are set out in note
10 of this report.
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
David Kidd
Chairman
27 March 2025
List of Investments
as at 28 February 2025 (unaudited)
Name Business Value % of total
£'000 investments
Secular Growth(*)
Rakuten Commerce and services 43,140 5.2
SBI Holdings Financials 37,928 4.6
GMO Internet Information, communication and utilities 27,574 3.3
CyberAgent Commerce and services 24,819 3.0
FANUC Electricals and electronics 23,740 2.9
Kubota Manufacturing and machinery 17,243 2.1
Oisix Retail 17,024 2.0
Recruit Commerce and services 16,969 2.0
Sato Manufacturing and machinery 16,438 2.0
Misumi Commerce and services 16,338 2.0
Keyence Electricals and electronics 14,810 1.8
GA Technologies Information, communication and utilities 14,215 1.7
Eisai Pharmaceuticals and food 12,560 1.5
MonotaRO Retail 11,590 1.4
Sysmex Electricals and electronics 11,001 1.3
M3 Commerce and services 9,963 1.2
Seria Retail 9,130 1.1
Raksul Information, communication and utilities 8,863 1.1
TKP Real estate and construction 8,661 1.0
Topcon Manufacturing and machinery 8,544 1.0
SMC Manufacturing and machinery 7,826 0.9
Nidec Electricals and electronics 7,501 0.9
Broadleaf Information, communication and utilities 7,092 0.9
Lifenet Insurance Financials 7,090 0.9
LY Corp Communication services 7,088 0.9
Daikin Industries Manufacturing and machinery 6,578 0.8
freee K.K. Information, communication and utilities 6,378 0.8
Mercari Information, communication and utilities 5,435 0.7
Noritsu Koki Manufacturing and machinery 5,201 0.6
Vector Information, communication and utilities 4,442 0.5
PeptiDream Pharmaceuticals and food 4,312 0.5
Bengo4.com Commerce and services 4,147 0.5
Rizap Commerce and services 3,931 0.5
BASE Information, communication and utilities 3,793 0.5
Nakanishi Manufacturing and machinery 3,780 0.4
Infomart Commerce and services 3,710 0.4
Digital Garage Information, communication and utilities 3,679 0.4
Demae-can Information, communication and utilities 3,578 0.4
Nihon M&A Center Commerce and services 3,433 0.4
Istyle Information, communication and utilities 3,030 0.4
Nippon Ceramic Electricals and electronics 2,853 0.3
455,427 54.8
Growth Stalwarts(†)
Calbee Pharmaceuticals and food 22,852 2.7
Nintendo Manufacturing and machinery 20,468 2.5
Pola Orbis Chemicals and other materials 12,004 1.4
Unicharm Chemicals and other materials 11,469 1.4
Shiseido Consumer staples 10,116 1.2
Park24 Real estate and construction 9,814 1.2
Nippon Paint Chemicals and other materials 9,183 1.1
Kansai Paint Chemicals and other materials 8,647 1.0
Olympus Manufacturing and machinery 8,417 1.0
Sugi Retail 8,263 1.0
Kao Chemicals and other materials 7,457 0.9
Kose Consumer staples 6,077 0.7
Pigeon Manufacturing and machinery 4,651 0.6
Sawai Pharmaceutical Pharmaceuticals and food 2,798 0.3
142,216 17.0
Special Situations(#)
SoftBank Group Information, communication and utilities 53,371 6.4
Sony Electricals and electronics 33,542 4.0
MIXI Commerce and services 20,378 2.5
Colopl Information, communication and utilities 8,016 1.0
115,307 13.9
Cyclical Growth(‡)
Sumitomo Mitsui Trust Bank Financials 38,849 4.7
Bridgestone Manufacturing and machinery 13,811 1.7
Murata Electricals and electronics 12,023 1.4
Nifco Chemicals and other materials 11,420 1.4
Sumitomo Metal Mining Chemicals and other materials 11,348 1.4
Chugoku Marine Paints Chemicals and other materials 10,049 1.2
DMG Mori Manufacturing and machinery 8,226 1.0
Rohm Electricals and electronics 5,710 0.7
SWCC Showa Electricals and electronics 4,288 0.5
Shima Seiki Manufacturing and machinery 2,393 0.3
118,117 14.3
Total investments 831,067 100.0
Growth category
(*) Secular Growth - opportunity to grow rapidly but where there are a
number of potential outcomes.
(†) Growth Stalwarts - growth is less rapid but more predictable.
(#) Special Situations - performance has not been good but there is a
reason to believe improvements are underway.
(‡) Cyclical Growth - earnings do not rise every year but are expected
to be higher from one cycle to the next.
Stocks highlighted in bold are the 20 largest holdings.
Income Statement (unaudited)
For the six months ended 28 February 2025 For the six months ended 29 February 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 705 705 - 43,761 43,761
Currency (losses)/gains - (1,459) (1,459) - 3,470 3,470
Income 7,192 - 7,192 8,066 - 8,066
Investment management fee (2,042) - (2,042) (2,118) - (2,118)
Other administrative expenses (370) - (370) (345) - (345)
Net return before finance costs and taxation 4,780 (754) 4,026 5,603 47,231 52,834
Finance costs of borrowings (1,186) - (1,186) (861) - (861)
Net return before taxation 3,594 (754) 2,840 4,742 47,231 51,973
Tax (719) - (719) (806) - (806)
Net return after taxation 2,875 (754) 2,121 3,936 47,231 51,167
Net return per ordinary share (note 5) 3.41p (0.89p) 2.52p 4.31p 51.74p 56.05p
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.
The accompanying notes are an integral part of the Financial Statements.
Balance Sheet (unaudited)
Notes At 28 February 2025 At 31 August 2024
£'000 (audited) £'000
Fixed assets
Investments 6 831,067 886,335
Current assets
Debtors 3,482 2,871
Cash and cash equivalents 5,796 5,305
9,278 8,176
Creditors
Amounts falling due within one year (81,851) (146,132)
Net current liabilities (72,573) (137,956)
Total assets less current liabilities 758,494 748,379
Creditors
Amounts falling due after more than one year 7 (63,242) -
Net assets 695,252 748,379
Capital and reserves
Share capital 4,717 4,717
Share premium account 213,902 213,902
Capital redemption reserve 203 203
Capital reserve 466,601 514,122
Revenue reserve 9,829 15,435
Shareholders' funds 695,252 748,379
Net asset value per ordinary share(*) 856.9p 855.0p
Ordinary shares in issue 8 81,137,614 87,532,614
(*) 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 2025
Notes Share Share Capital Capital Revenue Shareholders'
capital premium redemption reserve (*) reserve funds
£'000 account reserve £'000 £'000 £'000
£'000 £'000
Shareholders' funds at 1 September 2024 4,717 213,902 203 514,122 15,435 748,379
Shares bought back - - - (46,767) - (46,767)
Net return - - - (754) 2,875 2,121
Dividends paid during the period 4 - - - - (8,481) (8,481)
Shareholders' funds at 28 February 2025 4,717 213,902 203 466,601 9,829 695,252
For the six months ended 29 February 2024
Notes Share Share Capital Capital Revenue Shareholders'
capital premium redemption reserve (*) reserve funds
£'000 account reserve £'000 £'000 £'000
£'000 £'000
Shareholders' funds at 1 September 2023 4,717 213,902 203 496,965 17,176 732,963
Shares bought back - - - (21,514) - (21,514)
Net return - - - 47,231 3,936 51,167
Dividends paid during the period 4 - - - - (9,157) (9,157)
Shareholders' funds at 29 February 2024 4,717 213,902 203 522,682 11,955 753,459
(*) The capital reserve balance at 28 February 2025 includes unrealised
investment holding gains of £14,780,000 (29 February 2024 - gains
of £59,740,000).
Condensed Cash Flow Statement (unaudited)
Notes Six months to Six months to
28 February 2025 29 February 2024
£'000 £'000
Cash flows from operating activities
Net return before taxation 2,840 51,973
Net gain on investments (705) (43,761)
Currency losses/(gains) 1,459 (3,470)
Finance costs of borrowings 1,186 861
Overseas withholding tax (702) (738)
Changes in debtors and creditors (317) (684)
Cash from operations 3,761 4,181
Interest paid (1,065) (866)
Net cash inflow from operating activities 2,696 3,315
Cash flows from investing activities
Acquisitions of investments (18,484) (39,296)
Disposals of investments 72,801 55,966
Net cash inflow from investing activities 54,317 16,670
Cash flows from financing activities
Shares bought back 8 (48,555) (21,288)
Dividends paid 4 (8,481) (9,157)
Bank loans drawn down 140,747 92,498
Bank loans repaid (140,036) (78,620)
Net cash outflow from financing activities (56,325) (16,567)
Increase in cash and cash equivalents 688 3,418
Exchange movements (197) (47)
Cash and cash equivalents at start of period(*) 5,305 6,030
Cash and cash equivalents at end of period(*) 5,796 9,401
(*) 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. Basis of Accounting
The condensed Financial Statements for the six months to 28
February 2025 comprise the statements set out and 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 and updated in July 2022 with consequential amendments. They 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 2025 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 2024.
Going concern
Having considered the Company's principal risks and
uncertainties, as set out in note 10, together with its current position,
investment objective and policy, its assets and liabilities, and projected
income and expenditure, together with the Company's dividend policy, it is the
Directors' opinion that the Company has adequate resources to continue in
operational existence for the foreseeable future. The Board has considered
severe but plausible downside scenarios, including the impact of heightened
market volatility and macroeconomic and geopolitical concerns, including
inflation and interest rates, but it does not believe the Company's going
concern status is affected. 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 2025. The Directors have no reason to believe that the
continuation resolution will not be passed at the Annual General Meeting. The
Company has continued to comply with the investment trust status requirements
of section 1158 of the Corporation Tax Act 2010 and the Investment Trust
(Approved Company) (Tax) Regulations 2011. 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. Financial Information
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 2024 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. Investment Manager
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 September 2024,
the annual management fee is 0.65% on the first £250 million of net assets
and 0.55% on the remaining net assets, calculated and payable quarterly.
4. Dividends
Six months to Six months to
28 February 29 February
2025 2024
£'000 £'000
Amounts recognised as a distribution in the period: 8,481 9,157
Previous year's final dividend of 10.00p paid 18 December 2024 (2024 - 10.00p
paid on 20 December 2023)
No interim dividend has been declared.
5. Net Return Per Ordinary Share
Six months to Six months to
28 February 29 February
2025 2024
£'000 £'000
Revenue return after taxation 2,875 3,936
Capital return after taxation (754) 47,231
Total net return 2,121 51,167
Weighted average number of ordinary shares in issue 84,364,962 91,294,290
Net return per ordinary share is based on the above totals
of revenue and capital and 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 Hierarchy
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
At 28 February 2025 At 31 August 2024
Due within one year:
2 year floating rate loan facility with Bank of New York Mellon for ¥15,000 ¥15,000 million (£79.0 million) ¥15,000 million (£78.4 million) at 1.585%
million, expiring August 2025
at 1.443%
Revolving credit facility with Mizuho Bank for ¥2.6 billion, expiring - ¥500 million (£2.6 million)at 1.216%
March 2025
¥1,000 million (£5.2 million) at 1.428%
¥1,100 million (£5.8 million) at 1.280%
7 year fixed rate loan facility with ING Bank N.V. for ¥9,300 million, - ¥9,300 million (£48.6 million) at 1.585%
expiring November 2024
Due after one year:
Fixed rate unsecured private notes with Canada Life:
- ¥4,000 million Series A Senior Notes due 20 November 2029 ¥4,000 million at 1.56% (£21.1 million) -
- ¥4,000 million Series B Senior Notes due 20 November 2034 ¥4,000 million at 2.05% (£21.1 million) -
- ¥4,000 million Series C Senior Notes due 20 November 2038 ¥4,000 million at 2.55% (£21.1 million) -
In the six month period ending 28 February 2025, the
Company repaid loans totaling ¥9.3 billion to ING and ¥2.6 billion to
Mizuho. On 20 November 2024 the Company issued ¥12 billion of long-term
secured privately placed senior notes with Canada Life.
8. Share Capital
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, no shares were issued and
6,395,000 shares were bought back into Treasury (29 February 2024 - nil
issued and 3,135,000 bought back). There were 13,190,595 shares held in
Treasury at 28 February 2025 (29 February 2024 - 4,415,595). Between 1 March
2025 and 26 March 2025, the Company bought back a further 940,000 shares into
Treasury. The Company has authority remaining to buy back 9,025,019 ordinary
shares.
9. 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.
10. Principal Risks and Uncertainties
The principal risks facing the Company are financial risk,
discount risk, investment strategy and smaller company risk, climate and
governance risk, leverage risk, custody, depositary and reliance on third
party service provider risk, cyber security risk, regulatory risk, political
and associated economic risk and emerging risks. An explanation of these risks
and how they are managed is set out on pages 30 to 33 of the Company's Annual
Report and Financial Statements for the year to 31 August 2024 and is
available on the Company's website: japantrustplc.co.uk.
The principal risks and uncertainties have not changed
since the date of the Annual Report.
Glossary of Terms and Alternative Performance Measures ('APM')
Net Asset Value
Also described as shareholders' funds, 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.
Borrowings are valued at their nominal par value. Par value approximates to
amortised cost. The Company's yen denominated loans are valued at their
sterling equivalent.
(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 NAV per share from the share price 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.
28 February 31 August
2025 2024
Net asset value per ordinary share (a) 856.9p 855.0p
Share price (b) 767.0p 756.0p
Discount (b - a) ÷ (a) expressed as a percentage (10.5%) (11.6%)
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.
28 February 28 February 29 February 29 February
2025 2025 2024 2024
NAV (par) Share price NAV (par) Share price
Closing NAV per ordinary share/share price (a) 856.9p 767.0p 838.0p 742.0p
Dividend adjustment factor(*) (b) 1.0127 1.0142 1.0135 1.0150
Adjusted closing NAV per ordinary share/share price (c) = (a) x (b) 867.8p 777.9p 849.3p 753.1p
Opening NAV per ordinary share/share price (d) 855.0p 756.0p 787.7p 735.0p
Total return ((c)÷(d))-1 1.5% 2.9% 7.8% 2.5%
(*) The dividend adjustment factor is calculated on the assumption that
the dividend of 10.00p (2024 - 10.00p) paid by the Company in the period under
review was invested into shares of the Company at the cum income NAV per
ordinary share/share price, as appropriate, at the ex-dividend date.
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. Th e 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. The level of gearing can be adjusted through the use of
derivatives which affect the sensitivity of the value of the portfolio to
changes in the level of markets.
Gearing is the Company's borrowings 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.
28 February 2025 31 August 2024
Gearing (*) Potential Gearing (*) Potential
£'000 gearing (†) £'000 gearing (†)
£'000 £'000
Borrowings (a) 142,294 142,294 140,572 140,572
Cash and cash equivalents (b) 3,481 - 5,305 -
Shareholders' funds (c) 695,252 695,252 748,379 748,379
Gearing 20.0% 20.5% 18.1% 18.8%
(*) Gearing: ((a) - (b)) divided by (c), expressed as a percentage.
(†) Potential gearing: (a) divided by (c), expressed as a percentage.
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers (AIFM)
Regulations, 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.
Further Shareholder Information
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 2025, the Company had total assets of £837.5m (before
deduction of bank loans of £142.2m).
The Company is managed by Baillie Gifford, an Edinburgh based fund management
group with around £204bn under management and advice as at 27 March 2025.
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 japantrustplc.co.uk (http://www.japantrustplc.co.uk)
.†
The Interim Financial Report will be available at japantrustplc.co.uk† and
will be posted to shareholders on or around 14 April 2025.
For further information please contact:
Naomi Cherry, Baillie Gifford & Co
Tel: 0131 474 5548
Jonathan Atkins, Director, Four Communications
Tel: 0203 920 0555 or 07872 495396
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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