13th Apr 2016 13:41
LONDON (Alliance News) - Baillie Gifford Shin Nippon PLC on Wednesday said that over the year to January 31, its net asset value increased by 25.4% versus the comparative index return of 10.9%. The trust's share price showed an increase of 39.6% over the year.
The trust invests in small Japanese companies with the aim of generating capital growth, it did not pay a dividend.
The trust, which prefers to measure performance over rolling three year periods, reported that in the three years to January 31, its net asset value per share rose by 103.7% and its share price rose by 99.9%. That compared to the 47.4% return of the comparative index, MSCI Japan Small Cap Index, total return in sterling terms.
"Shin Nippon is very much a stock picking fund and our new portfolio manager, Praveen, continues to find new, innovative companies with disruptive technologies. Praveen spent six weeks in Japan in the early part of the year, visiting existing holdings and potential new investments. His view of the market is positive with new exciting opportunities to be found," Chairman Neil Donaldson said.
"Although the pace of economic change is modest there are encouraging signs that company boards are continuing to embrace improved corporate governance and that external non-executive input has now been recognised as a benefit to these businesses," Donaldson said.
"Inbound tourism has risen rapidly over the last few years most notably by visitors from China. Chinese tourists spend most of their money on shopping including rice cookers, personal care and luxury brand items and the company has some exposure to this theme in its portfolio," Donaldson said.
"In addition, Japan's ageing population and labour shortage are creating new opportunities for Japanese entrepreneurs to create new solutions which in time could benefit the patient investor," the chairman said.
Shares in Baillie Gifford Shin Nippon were up 1.4% at 527.38 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Baillie Gifford Shin Nippon PLC