Gearing rise signals Japan optimism

Red Alert

Baillie Gifford manager believes 2006 will see money move out of deposits and into real assets, cementing a recovery that finally looks sustainable

With 15 years at the helm of the Baillie Gifford Japan Trust, Sarah Whitley has been a long-term witness to the country's stop-start approach to economic recovery and is optimistic the current recovery is sustainable. She said that while the 1990s was a period of attempts to stabilise the country's economy, the recovery has been under way for a considerable period of time and she expects good growth throughout 2006 and 2007. In anticipation, Whitley has increased the gearing on the trust over the past few months and expects to see dividends rise as the borrowing rate is low. She maintains...