Interim Management Statement

RNS Number : 9681L

Baillie Gifford Shin Nippon PLC

14 May 2010

BAILLIE GIFFORD SHIN NIPPON PLC

Interim Management Statement - 3 months to 30 April 2010

Baillie Gifford Shin Nippon PLC aims to pursue long term capital growth through investment principally in small Japanese companies which are believed to have above average prospects for growth.

Review of the Period

·	Over the period, the Company's net asset value (at fair value) increased by 18.0% compared to a rise in the comparative index of 14.6%. The share price rose by 27.8%.
·	Changes in the Top 10 Equity Holdings were due to an addition to the holding in Start Today and a partial sale of Nabtesco, with other changes attributable to market movements.

Sector Analysis of Total Assets			Top Ten Equity Holdings
Name	% of total assets at 30/04/10	% of total assets at 31/01/10	Name	% of total assets at 30/04/10	% of total assets at 31/01/10
Consumer discretionary	30.8	29.9	Message	3.4	3.9
Consumer staples	8.1	8.6	EPS	3.3	2.8
Energy	3.3	4.0	Start Today	3.2	1.9
Financials	7.1	7.1	Don Quijote	3.2	2.9
Health care	12.1	12.3	Daikokutenbussan	3.0	3.4
Industrials	22.7	23.8	Hamakyorex	2.9	2.7
Information technology	13.1	12.0	Nabtesco	2.7	3.8
Materials	1.1	1.1	Nakanishi	2.4	2.7
Net liquid assets	1.7	1.2	Cocokara Fine	2.3	2.2
			Pronexus	2.3	2.5
Total	100.0	100.0	Total	28.7	28.8

Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	27.8	57.1	-23.2	0.5
NAV (at par)	17.8	58.0	-17.3	-5.3
Comparative Index	14.6	29.5	9.8	11.2

Source: Thomson Financial Datastream/HSBC/Baillie Gifford & Co.

Comparative Index - The comparative index is the MSCI Japan Small Cap Index in sterling terms and total return. Prior to 1 February 2010, the comparative index was a composite index of the Tokyo Second Section Index, the TOPIX Small Index and the JASDAQ Index, weighted by market capitalisation, in sterling terms and excluding income. For the purpose of the performance table above, the returns on both indices for their respective periods have been linked together to form a single comparative index.

Past performance is not a guide to future performance

General Information
	30/04/10	31/01/10
Annual management fee (based on net assets)	1.00%	1.00%
Share Price	147.3p	115.3p
Total assets (before deduction of bank loans)	£59.3m	£51.5m

Total borrowings (loans at par)	£8.0m	£7.9m
Net asset value per share (at par)*	165.1p	140.1p
Discount of share price to net asset value (at par)	10.8%	17.7%
Potential Gearing (at par)	15.6%	18.2%
Actual Gearing (at par)	14.1%	16.7%

Total borrowings (loans at fair)	£8.1m	£8.1m
Net asset value per share (at fair)*	164.7p	139.6p
Discount of share price to net asset value (at fair)	10.6%	17.4%
Potential Gearing (at fair)	15.8%	18.6%
Actual Gearing (at fair)	14.4%	17.1%