Baillie Gifford Japan, the trust that invests in Japanese small and mid-caps, saw a strong rise in net asset value (NAV) last year, with portfolio performance outstripping that of the benchmark index.

NAV per share rose by 21.2% in the six months to end-February to 226.3p (with borrowings deducted at fair value) versus a 15.6% increase in sterling terms in the value of Japan's TOPIX total return index.

Understandably, in a month that saw Japan devastated by an earthquake and subsequent tsunami, the NAV per share fell back in March, sliding 7.2% in the period to 29 March, but even then, that was an outperformance of the TOPIX, which fell 8.5% in sterling terms over the same period.

"At the time of writing there is a lot of confusion about the short term issues arising from the natural disaster," the company said.

"Whilst not wanting to underestimate the human tragedy and cost of rebuilding Tohoku, we believe that the effects on the vast majority of companies will be transitory. Any complacency that stalked the Japanese establishment may well have been shaken with positive long term results," the company added.

No interim dividend has been declared.

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