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Baillie Gifford's Shin Nippon fashions stellar gains from Japan's ASOS
by Sarah Miloudi on Sep 20, 2013 at 12:57
Shin Nippon manager John MacDougall said that some retailers were now using Start Today exclusively for their online distribution, adding that the stock fits the trust's goal of finding strong companies in niche sectors which offer shelter from volatility.
'An obvious example is the growth of the internet market in Japan, something being driven by the rising use of smartphones,' he explained.
Also fitting this trend is Digital Garage, an internet holding company which performed strongly over the six months reviewed by MacDougall.
It supports small businesses' advertising strategies and invests in early stage web start ups. 'This is a particulary vibrant market at present and the prospects for realising gains on the portfolio of investments has risen as the IPO market in Japan has recovered,' MacDougall said.
Over the six months to the end of July Shin Nippon's net asset value (NAV) per share gained 35.8%, versus a 16.3% gain in the trust's comparator index, the MSCI Japan Small Cap Index. Its share price rose 31.9%, maintaining a strong track record which has seen its share price rise by 145.7% over the three years to the end of August and its NAV rise by by 98.5%.
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by Alex Steger on Dec 11, 2013 at 10:19