Interim Management Statement

RNS Number : 9058H

Baillie Gifford Japan Trust PLC

06 June 2011

THE BAILLIE GIFFORD JAPAN TRUST PLC

Interim Management Statement - 3 months to 31 May 2011

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 2011, the Company's net asset value (at fair value) fell by 6.0% compared to a fall in the benchmark of 11.3%*. The share price fell by 9.5%. All figures are in sterling terms.
·	The ¥1.8bn loan facility with ING Bank N.V. matured on 25 May 2011 and was replaced with a fixed rate loan facility of ¥1.8bn with Scotiabank Europe PLC, maturing 24 May 2014.
·	Changes in the Top Ten were attributable to market movements.

Sector Analysis of Total Assets			Top Ten Equity Holdings
Sector	% of total assets at 31/05/11	% of total assets at 28/02/11	Name	% of total assets at 31/05/11	% of total assets at 28/02/11
Commerce and services	23.2	23.8	Itochu	3.8	3.7
Electricals and electronics	16.2	16.0	Don Quijote	3.3	3.1
Manufacturing and machinery	11.4	12.9	Japan Tobacco	2.8	2.8
Retail	10.7	10.2	KDDI	2.7	2.4
Information, communication			Mitsubishi Electric	2.6	2.7
and utilities	10.4	8.7	Rakuten	2.5	2.1
Chemicals and other materials	9.0	9.2	Canon	2.5	2.4
Financials	7.0	8.6	Asahi Glass	2.4	2.7
Pharmaceuticals and food	6.8	6.7	Yamada Denki	2.3	2.2
Real estate and construction	3.6	3.3	Inpex	2.3	2.1
Net Liquid Assets	1.7	0.6
Total	100.0	100.0	Total	27.2	26.2

Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	(9.5)	6.9	0.1	(25.8)
NAV (at fair)	(6.0)	1.7	3.8	(17.1)
Benchmark *	(11.3)	(3.8)	(3.5)	(13.5)

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
	31/05/11	28/02/11
Share Price	186.9p	206.5p
Total assets (before deduction of bank loans)	£158.7m	£167.1m

Total borrowings (loans at fair)	£26.9m	£27.0m
Net asset value per share (at fair)*	212.7p	226.3p
Discount of share price to net asset value (at fair)	12.1%	8.7%
Potential Gearing (at fair)	20.4%	19.3%
Actual Gearing (at fair)	19.0%	18.5%

Total borrowings (loans at par)	£26.5m	£26.6m
Net asset value per share (at par)*	213.3p	226.9p
Discount of share price to net asset value (at par)	12.4%	9.0%
Potential Gearing (at par)	20.1%	19.0%
Actual Gearing (at par)	18.7%	18.2%