Baillie Gifford Japan 'substantially' outpaces benchmark thanks to SoftBank investment

Investment trust Baillie Gifford Japan said on Wednesday that it had "substantially outpaced" its performance benchmark in the financial year ended 31 August, with its stake in SoftBank being the largest positive contributor throughout the period.

Baillie Gifford stated its net asset value total return, deducting borrowings at fair value, had increased by 6.8%, ahead of the TOPIX index total return's 0.1% negative return for the period.

SoftBank delivered a total return of 26%, while the FTSE 250-listed investor added that it also received "good contributions" from internet holdings - including long-standing investments such as GMO Internet and M3, as well as more recent purchases such as Bengo4.com and Demae-Can.

Net asset value per share hit 840.8p at the end of the year, up from 792.1p a year earlier, leading the firm to increase its final dividend from 3.50p to 4.50p.

Baillie Gifford said: "The outlook for the global and Japanese economies remains, as ever, uncertain. The good news for shareholders is that it seems highly unlikely that the current coronavirus pandemic will be the main concern in five years' time.

"We believe that a selected portfolio of growing businesses is capable of increasing shareholders' wealth over time. When we consider the quality of the companies in your portfolio we look to the future with optimism and confidence."

As of 1125 BST, Baillie Gifford shares were up 0.88% at 905.86p.