Interim Management Statement

RNS Number : 1594W

Baillie Gifford Japan Trust PLC

06 June 2008

THE BAILLIE GIFFORD JAPAN TRUST PLC

Interim Management Statement - 3 months to 31 May 2008

Baillie Gifford Japan Trust PLC aims to achieve capital growth principally through investment in medium and 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 2008, the Company's net asset value (at par) rose by 8.6% compared to a rise in the benchmark of 4.9% while the share price rose by 12.2%.
	After an addition to the holding, Sumitomo Mitsui Financial Group is now one of the Top Ten Equity Holdings. Other changes in the Top Ten Equity Holdings were due to market movements.

Sector Analysis of Total Assets			Top Ten Equity Holdings
Name	% of total assets at 31/05/08	% of total assets at 29/02/08	Name	% of total assets at 31/05/08	% of total assets at 29/02/08
Chemicals and other materials	8.7	10.4	Itochu	2.9	2.8
Commerce and services	23.7	24.3	Canon	2.8	2.5
Electricals and electronics	15.2	15.6	Inpex	2.8	2.6
Financials	10.8	8.4	Misumi Group	2.6	2.3
Information, communication			Modec	2.6	2.7
and utilities	3.1	2.1	Asahi Glass	2.6	2.4
Manufacturing and machinery	18.0	16.1	Shinko Plantech	2.4	2.1
Pharmaceuticals and food	5.6	5.6	Mitsubishi UFJ Lease &
Real estate and construction	3.8	3.9	Finance	2.4	2.0
Retail	4.3	4.4	Sumitomo Mitsui
Fixed Interest	1.2	-	Financial Group	2.4	1.7
Net Liquid Assets	5.6	9.2	Accordia Golf	2.4	2.1
Total	100.0	100.0	Total	25.9	23.2

Performance

	3 Months	1 Year	3 Years	5 Years
Share Price	12.2	(16.0)	17.8	111.6
NAV (Par)	8.6	(12.6)	15.2	95.0
Benchmark	4.9	(7.6)	15.6	58.0

Source: Fundamental Data Ltd and Datastream. Capital only.

Benchmark - On 1 September 2003 the Company changed its benchmark from 75% TOPIX/25% Tokyo Stock Exchange Second Section Index to 100% TOPIX. 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
	31/05/08	29/02/08
Annual management fee (based on net assets)	1.00%	1.00%
Share Price	186.8p	166.5p
Total assets (before deduction of bank loans)	£156.8m	£147.0m

Total borrowings (loans at par)	£30.2m	£30.4m
Net asset value per share (at par)	204.4p	188.2p
Discount of share price to net asset value (at par)	(8.6)%	(11.5%)
Potential Gearing (at par)	23.9%	26.0%
Actual Gearing (at par)	16.9%	14.6%

Total borrowings (loans at fair)	£30.2m	£30.7m
Net asset value per share (at fair)	204.5p	187.7p
Discount of share price to net asset value (at fair)	(8.7)%	(11.3%)
Potential Gearing (at fair)	23.8%	26.4%
Actual Gearing (at fair)	16.9%	14.9%