19th Sep 2014 11:29
LONDON (Alliance News) - Baillie Gifford Shin Nippon PLC Friday said its net asset value per share, after deducting borrowings at fair value, rose by 1.2% in the first-half of the financial year, weaker than the 4.3% rise in the company's comparative index.
In a statement for the six months ended July 31, the company said its share price declined by 1.0% over the period.
"The performance of Japanese markets generally lagged other global indices over the period as market participants tried to ascertain the impact that the April increase in consumption tax was having on the broader recovery in the Japanese economy," according to the company's statement.
"It is not clear yet whether recent signs that the domestic recovery may be losing a little momentum are anything other than seasonal noise. However, the external environment has not been particularly supportive for Japanese exporters," the statement read.
"That said, we believe that the success or failure of smaller businesses is ultimately driven by the actions of the companies', rather than by the vacillations of the macro-economy. Many of our holdings are leaders in niche markets that are capable of expanding irrespective of what is happening in the broader economy. Others are gaining share from sleepy, larger incumbents by adopting new, disruptive business models that present end customers with a more compelling value proposition," the statement added.
The company's comparative index is the MSCI Japan Small Cap Index (total return and in sterling terms). It is managed by Edinburgh-based Baillie Gifford.
Baillie Gifford Shin Nippon shares were Friday quoted down 0.8% at 326.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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