Baillie Gifford trust buoyed by land of the rising yen

The fund manager also cited strong performance of several internet-related holdings in results that showed net asset value per share of its Japan Trust, managed by head of Japanese equities Sarah Whitley, rose by 26 per cent in the year to the end of August.

The performance compared very favourable to its benchmark index, the Tokyo Stock Price Index (TOPIX), which rose by 21.5 per cent in sterling terms.

Japan Trust’s net assets grew from £323 million to £425m and the trust received dividend income from its investments of just over £7m. This was up 64 per cent from £4.3m the previous year.

Trust chairman Nick Bannerman said the rise in investment income was “due in the main to increased dividends coupled with a strengthening yen over the year and sterling weakness post the Brexit vote”.

Ms Whitley added: “The main driver of the strong absolute return was the increase in the value of the yen, which was greater than the decline in the TOPIX.”

The yen rose 37.6 per cent to Y135.5 per £1, strengthening to levels against sterling last seen in 2012 before the advent of Abenomics.