Interim Management Statement

RNS Number : 2952X

Baillie Gifford Japan Trust PLC

02 December 2010

THE BAILLIE GIFFORD JAPAN TRUST PLC

Interim Management Statement - 3 months to 30 November 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 30 November 2010, the Company's net asset value (at fair value) rose by 9.4% compared to a rise in the benchmark of 6.7%*. The share price rose by 16.4%. All figures are in sterling terms.
·	Accordia Golf dropped out of the Top Ten Equity Holdings due to a partial sale. 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 30/11/10	% of total assets at 31/08/10	Name	% of total assets at 30/11/10	% of total assets at 31/08/10
Commerce and services	23.4	24.1	Itochu	3.8	3.6
Electricals and electronics	17.4	15.4	Don Quijote	3.0	2.7
Manufacturing and machinery	13.3	13.2	Japan Tobacco	2.6	2.6
Financials	8.5	9.0	Canon	2.6	2.5
Retail	9.7	9.7	Mitsubishi Electric	2.5	2.2
Chemicals and other materials	9.0	8.8	Asahi Glass	2.4	2.3
Information, communication			KDDI	2.4	2.2
and utilities	7.6	7.0	Keihin	2.4	2.3
Pharmaceuticals and food	5.1	5.5	Misumi Group	2.3	2.2
Real estate and construction	3.1	3.2	Otsuka	2.2	2.4
Net Liquid Assets	2.9	4.1
Total	100.0	100.0	Total	26.2	25.0

Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	16.4	28.1	(7.3)	(29.0)
NAV (at fair)	9.4	20.0	(3.3)	(16.7)
Benchmark *	6.7	13.1	0.8	(8.7)

Source: Thomson Reuters 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
	30/11/10	31/08/10
Share Price	179.0p	153.8p
Total assets (before deduction of bank loans)	£154.1m	£143.6m

Total borrowings (loans at fair)	£27.6m	£28.0m
Net asset value per share (at fair)*	204.2p	186.7p
Discount of share price to net asset value (at fair)	12.3%	17.6%
Potential Gearing (at fair)	21.9%	24.2%
Actual Gearing (at fair)	18.4%	19.0%

Total borrowings (loans at par)	£27.2m	£27.5m
Net asset value per share (at par)*	204.9p	187.5p
Discount of share price to net asset value (at par)	12.6%	18.0%
Potential Gearing (at par)	21.4%	23.7%
Actual Gearing (at par)	18.0%	18.4%