28th Oct 2026 12:06
(Alliance News) - Baillie Gifford Japan Trust PLC on Wednesday announced a conditional tender offer covering up to 25% of its shares if it fails to outperform its benchmark over the next three years, as the investment trust reported annual returns below the wider Japanese equity market.
The offer would be triggered if the trust's net asset value total return fails to exceed that of the Tokyo stock price index, Topix, over the three years to August 31, 2029.
The offer price would be set at a 2.0% discount to the formula asset value attributable to the shares, after costs, subject to shareholder approval.
The Edinburgh-based investment trust invests for long-term capital growth principally in medium-sized and smaller Japanese companies.
On Wednesday, it reported an NAV total return per share of 17.7% for the financial year that ended August 31, underperforming the Topix, which returned 26.7%. This compared with a NAV total return of 20.5% in financial 2025.
The trust's relative underperformance was concentrated in the first half, when its NAV total return was 4.4%, compared with TOPIX's 22.4%, before improving in the second half.
NAV per share increased 17% to 1,185.6p at August 31 from 1,017.1p a year earlier. The trust declared a final dividend of 10p per share, unchanged from a year before.
Primary contributors to the NAV rise included Murata Manufacturing Co Ltd, Sumitomo Metal Mining Co Ltd, SoftBank Group Corp and Sumitomo Mitsui Trust Group Inc.
Looking ahead, the trust highlighted opportunities from artificial intelligence developments and a "very cheap" yen offers scope for additional returns for sterling-based investors.
Baillie Gifford Japan shares were down 0.6% to 1,050.00p midday Wednesday in London.
By Niall Holden, Alliance News reporter
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