Interim Management Statement

RNS Number : 6405J

Baillie Gifford Japan Trust PLC

05 December 2008

THE BAILLIE GIFFORD JAPAN TRUST PLC

Interim Management Statement - 3 months to 30 November 2008

The Baillie Gifford Japan Trust aims to achieve long term capital growth principally through investment in medium to smaller sized Japanese companies which are believed to have above average prospects for growth, although it invests in larger companies when considered appropriate.

Review of the Period

	Over the three months to 30 November 2008, the Company's net asset value (at par) fell by 14.9% compared to a fall in the benchmark of 9.9% while the share price fell by 18.1%. All figures are in sterling terms.
	Canon, Modec and Rakuten fell out of the Top Ten Equity Holdings due to partial sales. Other changes in the Top Ten were due to market movements.
	During the period, the Company repaid two loans totalling ¥1.5bn, bringing its total loans outstanding to ¥3.8bn.

Sector Analysis of Total Assets			Top Ten Equity Holdings
Name	% of total assets at 30/11/08	% of total assets at 31/08/08	Name	% of total assets at 30/11/08	% of total assets at 31/08/08
Chemicals and other materials	5.9	8.8	KDDI	3.5	2.3
Commerce and services	26.6	25.9	East Japan Railway	3.5	2.8
Electricals and electronics	12.3	15.9	Kamigumi	3.1	2.3
Financials	8.1	10.0	Don Quijote	2.9	1.9
Information, communication			Tsmura	2.8	2.2
and utilities	4.2	3.1	Accordia Golf	2.5	2.8
Manufacturing and machinery	10.5	13.9	Hitachi High-
Pharmaceuticals and food	7.1	5.9	Technologies	2.5	1.8
Real estate and construction	2.0	3.0	Shimadzu	2.4	2.5
Retail	5.7	4.6	Inpex	2.4	3.0
Fixed Interest	1.3	1.4	Misumi Group	2.3	2.7
Net Liquid Assets	16.3	7.5	Takeda Pharmaceuticals	2.3	1.9
Total	100.0	100.0	Total	30.2	26.2

Performance

	3 Months	1 Year	3 Years	5 Years
Share Price	-18.1	-32.1	-48.0	-
NAV (Par)	-14.9	-27.6	-37.6	5.9
Benchmark	-9.9	-15.0	-23.0	7.6

Source: Datastream. Capital only.

Benchmark - TOPIX (in sterling terms)

Past performance is not a guide to future performance

General Information
	30/11/08	31/08/08
Annual management fee (based on net assets)	1.00%	1.00%
Share Price	131.0p	160.0p
Total assets (before deduction of bank loans)	£120.9m	£138.2m

Total borrowings (loans at par)	£26.0m	£26.8m
Net asset value per share (at par)	153.2p	179.9p
Discount of share price to net asset value (at par)	(14.5%)	(11.1%)
Potential Gearing (at par)	27.4%	24.1%
Actual Gearing (at par)	6.6%	12.9%

Total borrowings (loans at fair)	£26.4m	£27.0m
Net asset value per share (at fair)	152.6p	179.5p
Discount of share price to net asset value (at fair)	(14.2%)	(10.9%)
Potential Gearing (at fair)	27.9%	24.3%
Actual Gearing (at fair)	7.0%	13.1%