Baillie Gifford Shin Nippon PLC on Monday announced that it underperformed its benchmark in its recently-ended financial year.

The fund, which invests primarily in small Japanese companies, said its net asset value per share at its January 31 year end declined by 15% over the year to 147.8 pence from 173.6p.

Meanwhile, the comparative MSCI Japan Small Cap Index appreciated by 6.3%.

Shares in Baillie Gifford Shin Nippon were down 1.5% to 122.60 pence in London on Monday morning.

Baillie Gifford Shin Nippon recommended a final dividend of 0.80p per share, having not paid one a year prior.

‘The past couple of years have been very challenging for high growth investing and some of the headwinds (heightened macroeconomic and geopolitical concerns) over this period persist. However, there are some encouraging signs. Inflation in the US is showing signs of cooling which has led to expectations of an end to the current cycle of interest rate increases,’ the company said.

In light of these results, the board has committed to a one-off performance triggered tender offer for up to 15% of its shares if its NAV per share continues to underperform against the benchmark over the three years to January 31, 2027.

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