Disruptive businesses help Shin Nippon shine

Disruptive businesses help Shin Nippon shine

‘Disruptive’ online businesses in Japan have helped Baillie Gifford Shin Nippon raise its net asset value per share by 34 per cent in the year to 31 January.

The investment trust which invests in small Japanese businesses, said that food delivery business Yume No Machi, and fashion retailer Start Today had been particular successes for the business, while managers made new investments in DesignOne and Eguarantee.

The share price increased 33.5 per cent during the year, and the managers said there is “significant scope” for disruptive businesses to achieve high levels of growth in the future.

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“  The managers believe the operating environment for Japanese smaller companies continues to improve,” the company said in a statement.

Japanese smaller companies have endured a volatile twelve months, but the weak yen is currently having a positive effect on the Japanese stock market.

The trust, managed by Praveen Kumar, ranks top of all Investment Association - and Association of Investment Companies - listed vehicles for the five years to March 2017 with a return of 298 per cent in sterling terms, compared with the AIC Japanese Smaller Companies sector average of 141 per cent.