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It has been a difficult year for Japan. After some initial success managing the pandemic, its vaccine rollout has lagged and now the capital Tokyo is in its fourth state of emergency, just as the Olympics is due to start.
UK investors have largely neglected Japanese equities. Data from the Investment Association reveals investors hold £25.4billion in Japanese equity funds, including £1.3billion in Japanese Smaller Companies funds. This is equivalent to just 2.8 per cent of all equity funds from IA member firms.
While the Olympics may not provide a much-needed boost to the economy, the emergence of a new generation of companies may offer some compelling opportunities for investors.
Home / News / Baillie Gifford yo-yos back to top of performance charts after bumper month for tech
Baillie Gifford yo-yos back to top of performance charts after bumper month for tech
Baillie Gifford American Fund came out on top in June, returning 16.7%
Baillie Gifford rebounded to the top of the performance charts in June buoyed by a bumper month for tech and growth stocks.
Three out of the five best performing funds in June were from the Edinburgh manager, according to data from FE Fundinfo.
Its £7.6bn American fund, run by Tom Slater (pictured) and Gary Robinson claimed the top spot last month, returning 16.7%, while Health Innovation and Long Term Global Growth recorded gains of 15.7% and 13.4% respectively, putting them in third and fifth place. In May all three funds had been among some of the biggest losers, falling between 7-9%.
The trust in the portfolio to see the most significant narrowing of its discount was Downing Strategic Micro-Cap, which traded on a 21.1% discount to NAV at the start of the year and now trades on an 11.2% discount.
The trust is still trading on the sixth-widest discount within the 24-strong IT UK Smaller Companies sector, according to data from the AIC. Between the start of the year and the beginning of April, it achieved a share price return and NAV return of 21.6% and 9.4% respectively.
Second on Kepler s list for its rapidly narrowing discount is River & Mercantile UK Micro-Cap, which resides in the same sector and is 14 out of 24 for the size of its discount.