AUS
NZ
UK
CA
USA
IND
Highlights
BGS' NAV per share increased 3.4% over the half-year period, while the share price rose 8.2%.
Management transition saw Brian Lum appointed lead portfolio manager and Jared Anderson named deputy.
23.1 million shares were repurchased into treasury, equivalent to 8.3% of issued share capital.
Baillie Gifford Shin Nippon PLC (LSE:BGS), the investment trust focused on smaller Japanese companies, has released its half-yearly financial report for the six months ended 31 July 2025. The update covers portfolio performance, changes to the management team, and capital management measures.
Performance
Over the reporting period, the Company’s net asset value (NAV) per share rose by 3.4% on a total return basis, compared to a 7.9% increase in the MSCI Japan Small Cap Index, its comparative benchmark. The share price recorded an 8.2% total return over the same period.
Among portfolio holdings, GA Technologies, Yonex, and Cybozu were the leading positive contributors, supported by operational performance. The main detractors included Harmonic Drive Systems, where investor sentiment towards humanoid robotics cooled, as well as Inforich and JEOL, both of which reported weaker results.
Portfolio Activity
During the six months, five new positions were initiated, and seven holdings were sold outright. The new positions included DMG Mori and Money Forward, each with market capitalisations or turnover above ¥150 billion, consistent with the Company’s revised investment policy. The strategy continues to focus on smaller Japanese companies with significant growth prospects.
Management Changes
Baillie Gifford implemented portfolio management changes during the period. Brian Lum was promoted from deputy to lead portfolio manager, taking over from Praveen Kumar. Jared Anderson was appointed as deputy portfolio manager. These changes followed an internal review by Baillie Gifford and were made to support the company’s investment strategy over the long term.
Capital Management
Approximately 23.1 million shares, representing 8.3% of the Company’s issued share capital at 31 January 2025, were repurchased into treasury during the period. The company has also obtained the required approvals to cancel the amount standing to the credit of the share premium account and to create an equivalent distributable reserve, enhancing flexibility in managing shareholder returns.
Outlook
The company noted that macroeconomic conditions in Japan are showing signs of improvement, with US-Japan trade negotiations concluded, inflation re-emerging, and expectations building for further monetary policy normalisation. These developments are expected to provide a supportive backdrop for Japanese growth equities. In particular, reduced uncertainty and a recovery in investor risk appetite are anticipated to benefit well-managed Japanese smaller companies, consistent with Shin Nippon’s investment focus.
At 31 July 2025, the Company’s total assets stood at GBP 442.3 million before deducting bank loans of GBP 74.5 million. Baillie Gifford, the Edinburgh-based manager of the trust, oversaw assets under management and advice of approximately GBP 206.8 billion as at 4 September 2025.
