Interim Management Statement

RNS Number : 6403D

Baillie Gifford Japan Trust PLC

04 December 2009

THE BAILLIE GIFFORD JAPAN TRUST PLC

Interim Management Statement - 3 months to 30 November 2009

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 2009, the Company's net asset value (at fair value) fell by 8.2% compared to a fall in the benchmark of 6.3%*. The share price fell by 8.8%. All figures are in sterling terms.
	On 1 September 2009, the benchmark was changed to TOPIX total return (in sterling terms) from TOPIX capital return (in sterling terms).
	Japan Tobacco moved into the Top Ten Equity Holdings following a purchase increasing the holding and Misumi dropped out due to a partial sale. Other changes in the Top Ten were due to market movements.

Sector Analysis of Total Assets			Top Ten Equity Holdings
Sector	% of total assets at 30/11/09	% of total assets at 31/08/09	Name	% of total assets at 30/11/09	% of total assets at 31/08/09
Commerce and services	22.9	22.7	Accordia Golf	3.2	3.0
Electricals and electronics	15.7	15.8	Don Quijote	2.9	2.6
Manufacturing and machinery	14.2	14.6	Japan Tobacco	2.6	2.0
Financials	12.7	11.3	KDDI	2.5	2.5
Chemicals and other materials	7.7	8.1	Itochu	2.5	2.4
Retail	8.4	8.1	Rakuten	2.5	1.7
Pharmaceuticals and food	5.3	6.1	Canon	2.4	2.3
Information, communication			Osaka Securities	2.4	2.1
and utilities	4.4	5.1	AIOI Insurance	2.3	2.1
Real estate and construction	1.6	2.2	East Japan Railway	2.2	2.0
Fixed interest	2.5	2.3
Net Liquid Assets	4.6	3.7
Total	100.0	100.0	Total	25.5	22.7

Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	(8.8)	6.7	(34.4)	(7.1)
NAV (par)	(8.2)	11.2	(25.0)	2.9
Benchmark *	(6.3)	4.8	(15.1)	7.1

Source: Thomson Financial Datastream/Baillie Gifford & Co

*Benchmark - On 1 September 2009, the Company changed its benchmark to TOPIX total return (in sterling terms) from TOPIX capital return (in sterling terms). For the purposes of the above table, the returns on both benchmarks for their respective periods have been linked to form a single benchmark.

Past performance is not a guide to future performance

General Information
	30/11/09	31/08/09
Annual management fee (based on net assets)	1.00%	1.00%
Share Price	139.8p	153.3p
Total assets (before deduction of bank loans)	£131.0m	£138.8m

Total borrowings (loans at par)	£25.1m	£23.5m
Net asset value per share (at par)*	171.0p	186.2p
Discount of share price to net asset value (at par)	18.2%	17.7%
Potential Gearing (at par)	23.7%	20.4%
Actual Gearing (at par)	18.0%	15.4%

Total borrowings (loans at fair)	£25.6m	£24.0m
Net asset value per share (at fair)*	170.1p	185.3p
Discount of share price to net asset value (at fair)	17.8%	17.3%
Potential Gearing (at fair)	24.3%	20.9%
Actual Gearing (at fair)	18.6%	15.9%