Interim Management Statement

RNS Number : 0871N

Baillie Gifford Japan Trust PLC

04 June 2010

THE BAILLIE GIFFORD JAPAN TRUST PLC

Interim Management Statement - 3 months to 31 May 2010

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 31 May 2010, the Company's net asset value (at fair value) rose by 4.9% compared to a rise in the benchmark of 1.6%*. The share price rose by 5.9%. All figures are in sterling terms.
·	Otsuka moved into the Top Ten Equity Holdings following an addition to the holding. Other changes in the Top Ten were attributable to market movements.

Sector Analysis of Total Assets			Top Ten Equity Holdings
Sector	% of total assets at 31/05/10	% of total assets at 28/02/10	Name	% of total assets at 31/05/10	% of total assets at 28/02/10
Commerce and services	25.0	25.2	Itochu	3.5	3.4
Electricals and electronics	15.2	15.9	Accordia Golf	3.1	3.1
Manufacturing and machinery	14.0	14.6	Don Quijote	2.8	2.7
Financials	11.0	11.5	Keihin	2.6	2.4
Retail	10.0	8.3	Japan Tobacco	2.6	3.0
Chemicals and other materials	8.9	8.2	Asahi Glass	2.4	2.3
Pharmaceuticals and food	5.1	5.5	Canon	2.4	2.4
Information, communication			Yamada Denki	2.3	2.4
and utilities	4.7	4.4	Otsuka	2.3	1.7
Real estate and construction	3.0	2.8	Osaka Securities Exchange	2.2	2.4
Fixed interest	-	2.3
Net Liquid Assets	3.1	1.3
Total	100.0	100.0	Total	26.2	25.8

Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	5.9	29.4	(21.4)	10.3
NAV (par)	4.8	30.0	(10.8)	17.6
Benchmark *	1.6	16.1	(7.1)	16.1

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
	31/05/10	28/02/10
Annual management fee (based on net assets)	1.00%	1.00%
Share Price	174.8p	165.0p
Total assets (before deduction of bank loans)	£156.7m	£150.3m

Total borrowings (loans at par)	£26.8m	£26.2m
Net asset value per share (at par)*	209.8p	200.3p
Discount of share price to net asset value (at par)	16.7%	17.6%
Potential Gearing (at par)	20.7%	21.2%
Actual Gearing (at par)	17.3%	19.7%

Total borrowings (loans at fair)	£27.3m	£26.8m
Net asset value per share (at fair)*	209.1p	199.4p
Discount of share price to net asset value (at fair)	16.4%	17.3%
Potential Gearing (at fair)	21.1%	21.7%
Actual Gearing (at fair)	17.7%	20.2%