Baillie Gifford Shin Nippon is continuing to repurchase shares after a notable first half, yet its discount to Net Asset Value (NAV) was about 10.3% at the start of November. The Japanese smaller companies trust announced its latest purchase on 30 October.

What happened

According to an AI-generated summary on, the trust bought 625,000 shares on 30 October at 168.21p, to be held in treasury. A total voting rights notice on 2 November confirmed the outcome: 314,252,485 shares in issue, of which 128,860,841, or 41.01%, are in treasury, leaving 185,391,644 voting rights.

lists further purchase notices on 15, 19, 21, 22, 23 and 29 October, as well as daily NAV announcements. No results or portfolio announcement has been issued since the half-year figures reported in September.

Why it matters for investors

Baillie Gifford Shin Nippon (LSE:BGS) is a constituent of the FTSE All-Share index and an Investment trust specialising in small Japanese companies with above-average growth prospects. Its results have recently improved after a long period of weakness.

QuotedData reported on 18 September that the underlying investment return for the six months to 31 July was 22.9%, against 13.3% for the MSCI Japan Small Cap index in sterling. Share price total return was lower at 19.8%, as the discount widened from 7.5% to 9.9%. Gains came largely from AI infrastructure, robotics and advanced semiconductor holdings.

Tsugami, Harmonic Drive Systems, Kohoku Kogyo, JEOL and Nikkiso were top contributors, while Yonex and PeptiDream detracted. James Carthew of QuotedData said: "It's a long time since BGS (LSE:BGS) shareholders had anything to celebrate." He also noted that the discount remains wide despite buybacks.

How the shares have performed

AJ Bell's page shows a last trade at 168.2p on 2 November, a 12-month range of 123.052p to 182p and a Market Value of £313.35m. It gives a latest actual NAV of 188.93p at 29 October, an estimated NAV of 187.24p and a discount of 10.27% against that estimate, wider than the 12-month average of 9.01%. (LSE:BGS)

QuotedData put the one-year share price gain at 32.5% in September, but noted a fall of more than 30% over five years. In the year to 31 January 2026, NAV total return was just 5.4%, against 21.5% for the index, while share price total return was 14.4% because the discount had narrowed sharply from 14.6% to 7.5%.

Income is minor. The final Dividend for that year was 0.69p, paid on 26 May, and AJ Bell shows a 0.37% yield.

What to watch next

Repurchases have been substantial. The Annual Report recorded about 34.2 million shares bought during the last financial year, and a 15% tender offer in March attracted applications for 49.8% of issued capital. QuotedData reported another 13.5 million shares, or 5.5%, bought in the half year.

The board has also committed to future tests of Shareholder support. There will be a one-off continuation vote in 2028 and a tender for up to 100% of Issued Capital if NAV total return fails to match the index between 31 December 2025 and 31 December 2030. QuotedData says that tender would apply in 2031.

Analysis note: this makes five-year performance against the index an unusually direct issue for lead manager Brian Lum and deputy Jared Anderson, who took on those roles in 2025. A narrower discount may depend on the first half's returns being sustained.

Borrowing is a further factor. Net gearing was 14.9% at 31 January, and the ¥16.1bn revolving Credit Facility matures in November 2027. Analysis note: with that level of borrowing, a Reversal in AI-related stocks would be amplified in NAV. The next full-year results cover the year to 31 January 2027.