In QuotedData’s morning briefing 28 March 2025:
- Baillie Gifford Japan Trust (BGFD) has reported its unaudited interim results for the six months to 28 February 2025. During the period, the trust delivered a net asset value (NAV) total return of 1.5%, while the share price total return came in at 2.9%, both comfortably ahead of the TOPIX index return of 0.9% (all in sterling terms). BGFD’s manager highlights accelerating AI innovation as a structural force reshaping global business dynamics, while geopolitics – particularly President Trump’s re-election and renewed US trade friction – adds layers of complexity to Japan’s economic outlook. Domestically, the Bank of Japan’s policy normalisation is now well underway, with the 10-year JGB yield at 1.5% following the end of yield curve control and the shift away from negative rates. The manager says that this puts Japan’s bond yields more in line with international peers and marks a quiet turning point for monetary policy. Key stock contributors included SBI Holdings (+1.0%), Topcon (+0.9%), MIXI (+0.7%), SWCC Showa (+0.5%), and the absence of exposure to Daiichi Sankyo (+0.6%). On the flip side, Rakuten (-0.7%) and Unicharm (-0.6%) were the largest detractors, alongside Eisai, Calbee, and the decision not to hold Mitsubishi UFJ Financial Group. SBI continues to benefit from a rising rate environment, while Topcon has been buoyed by M&A rumours. MIXI’s rebound in profit growth and SWCC Showa’s niche in high-voltage cables also proved timely. Among detractors, Rakuten saw a modest pullback after a strong prior year, though the investment thesis remains intact. The trust repurchased 6.4m shares, or 7.3% of its capital, and maintains net gearing at a punchy 20%, reflecting confidence in ongoing opportunities. Portfolio changes were minimal, with just one disposal – Tokyo Tatemono – redirected into higher-conviction holdings.
- Gabelli Merger Plus+ Trust (GMP) has published its interim results for the six months ended 31 December 2024, during which it provided an NAV total return of 2.65% and has now achieved a total return of 39.51% since inception in 2017. GMP acquired its affiliated investment manager, GSIL UK, in October 2024, which was funded via the issuance of 96,493 shares at a premium to NAV. The company [QD comment MR: it is no longer an investment trust having lost its UK investment trust status under S1158. GMP’s board says that this has had no material impact on shareholders but we can’t see how this is in the interests of shareholders other than those associated with the manager] also announced plans to rebrand as Gabelli Merchant Partners Plc, which it says reflects its expanding operational footprint and investment philosophy. GMP’s deferred tax asset continues to enhance the NAV, raising it from $9.79 to $10.14 per share, and is expected to preserve tax advantages in the medium term. An interim dividend of $0.02 per share was paid in March 2025, marking the 24th distribution since listing. GMP has a Loyalty Programme in place, which it says rewards long-term shareholders with special voting loyalty shares. Major shareholder Associated Capital Group, Inc. currently holds the maximum eligible allocation [QD comment MR: We think that, from a corporate governance perspective, this is wholly inappropriate and only seems to serve the manager and its affiliates]. Looking ahead, GMP’s manager is optimistic. It says that, with Trump in the White House and a shift in antitrust sentiment, the outlook for merger arbitrage activity is improving, potentially unlocking a new wave of deal flow. Meanwhile, GMP’s manager has increased exposure to US Treasury bills, citing the yields on offer, their liquidity and reinvestment potential.
- Marwyn Value Investors’ (MVI’s) portfolio company InvestAcc Group has agreed to acquire AJ Bell’s Platinum SIPP and SSAS business for up to £25m. The deal, which includes the client books from AJ Bell’s non-platform business, is expected to complete in the second half of 2025, subject to client migration and platform integration. InvestAcc’s executive chairman Mark Hodges described the acquisition as a “perfect strategic fit”, citing the high-net-worth client base, strong financial performance, and alignment with InvestAcc’s full SIPP focus. He added that this deal is the second in a broader acquisition pipeline currently under review. In support of the transaction, Marwyn Investment Management, manager of the Marwyn Funds, has entered into a three-year lock-up on its 12.4m InvestAcc shares (25% of current share capital) and the sole Sponsor Share, signalling long-term commitment to the business and its growth strategy.
We also have:
BBGI Global Infrastructure delivers resilient results amid recommended cash offer
Schroders Capital Global Innovation begins wind-down as NAV falls 21.2%
JPMorgan US Smaller Companies benefits from financials but lagged in industrials and tech
BH Macro benefits as political volatility returns to markets
LMS Capital reports another weak year as it kicks off managed realisation
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