Capital at risk

Investment strategy

Japan Income Growth

Japan offers the unexpected. Global leading manufacturers, premium Asian brands and emerging digital disruptors. We search for opportunities with the potential to provide great shareholder returns. 

Asian female traveller photographing the spectacular nature scenics of Arashiyama Bamboo forest with smartphone while travelling in Kyoto, Japan.

Backing businesses, not the economy

By focusing on the fundamentals, we aim to uncover Japan’s mispriced and often under-appreciated opportunities in the hope of providing our clients with great returns. 

Japanese Equities: our philosophy

Investment manager Donald Farquharson introduces Japanese Equities, reflecting on the exciting opportunities ahead.

Searching for Japan’s finest

Japan Income Growth embraces a distinctly long-term approach to deliver total return. We aim to outperform the Topix benchmark by 1.5 per cent per annum over rolling five-year periods with an above market yield. 

Our portfolio contains 45-65 holdings. We seek to take advantage of market inefficiencies by investing across different types of growth company, which given our time horizon allows us to take advantage of their idiosyncratic growth opportunities.  

We find these companies through bottom-up research; holding on for the long term with the aim of capturing the full benefits of compounded growth. 

The performance target is aspirational and is not guaranteed. We don’t use it to compile the portfolio and returns will vary. A single performance target may not be appropriate across all vehicles and jurisdictions. We may not meet our investment objectives if, for example, our growth investment style is out of favour, or we misjudge the long-term earnings growth of our holdings.

Patient pursuit of opportunities

Our high-conviction portfolio is constructed from the bottom up, based on long-term earnings growth potential.  

We aim to capture growth in all forms – from secular opportunities in emerging digital disruptors; to the enduring growth of stalwart franchises; to special situations of corporate reform.  

The patience and insight with which we pursue this broad base of potential is a product of our pedigree. Having launched specialist mandates in the 1980s, we’re one of the few who’ve been doing this for over 40 years. 

A history of hoarding cash points to an exciting future, where cash-rich growth companies begin to return excess capital to investors – at no expense to their own growth prospects.
Karen See

Meet the managers

Documents

Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 31 March 2024

#Holding% of portfolio
1SBI Holdings4.5%
2DMG Mori4.4%
3SoftBank Group4.2%
4MS&AD Insurance4.0%
5Sumitomo Mitsui Trust3.9%
6GMO Internet3.9%
7Tokio Marine Holdings Inc3.6%
8Bridgestone3.0%
9Calbee2.8%
10Kubota2.8%

Strategy holdings by sector

All figures up to: 31 March 2024

1Manufacturing47.00%
2Finance & Insurance19.40%
3Transport And Communications11.50%
4Services9.20%
5Commerce7.70%
6Real Estate4.80%
7Cash0.40%
Total 100%

Strategy holdings by sector

All figures up to: 31 March 2024

Total: 100%

Please note

The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Insights

Key articles, videos and podcasts relating to the strategy:

Filters

Insights

Viewing 10 of 10
  1. The fresh face of Japanese finance

    New online services are transforming Japanese financial habits.
    March 2024
    Article4 minutes
  2. Japan Stewardship Report

    For the year ended September 2023.
    February 2024
    Document
  3. Japanese Equities Q4 update

    The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video12 minutes
  4. Stock story: SoftBank

    Matthew Brett discusses SoftBank and considers Japan’s exciting technological future.
    December 2023
    Video4 minutes
  5. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  6. Spotting the stars amid a surge

    Rising Japanese markets are flattering old-style companies: better to look for long-term growth.
    November 2023
    Document
  7. Japan’s new growth opportunities

    Seeking the entrepreneurial firms that could sustain the country’s rally.
    November 2023
    Article
  8. Japanese Equities Q3 update

    The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video12 minutes
  9. Japanese Equities

    Investment manager, Donald Farquharson, discusses the Baillie Gifford approach to Japanese Equities.
    September 2023
    Video4 minutes
  10. Japan’s place in the chip market

    The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.
    March 2023
    Article

Japanese Equities Q1 investment update

The Japanese Equities Team reflects on recent performance, portfolio changes and market developments over the last quarter.

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Important information

Please remember that all investment strategies have the potential for profit and loss and your or your clients’ capital may be at risk.
 
The information on this Website is issued by Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 (the “Company”) which is licensed by the Securities and Futures Commission of Hong Kong (the “SFC”) under the Securities and Futures Ordinance (“SFO”) for Type 1 (Dealing in Securities) and a Type 2 (Dealing in Futures Contracts) regulated activities with CE Number BGB803. It allows the Company to market and distribute the Baillie Gifford’s range of collective investment schemes to Professional Investors (as defined by the SFO) in Hong Kong.
 
The information contained in this website has been compiled with considerable care to ensure its accuracy at the date of publication. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Nothing in this information or elsewhere in this website shall exclude, limit or restrict our duties and liabilities to you under the SFO or any conduct of business rules which we are bound to comply with. The information on this website has not been reviewed by the SFC. These Terms and any non-contractual obligations arising from or connected with them shall be governed by, and these Terms shall be construed in accordance with, the laws of Hong Kong.
 
This website is informative only and the information provided should not be considered as investment or other advice or a recommendation or offer to buy, sell or hold a particular investment. You can read details of our Legal and Important Information here. Please remember that all investment strategies have the potential for profit and loss and your or your clients’ capital may be at risk.
 
This website does not collect personal information. "Cookies" may be stored on your computer for easy navigation. A "cookie" does not allow us to identify you, but stores information about navigation through our website (such as pages already visited, time and date of visit) which we can remember during the user's next visit to our website in order to improve your browsing experience. If you have any enquiries in relation to our data protection policies and procedures, this Website or the information on it, please click here to contact Baillie Gifford.
 
Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 is incorporated in Hong Kong.  The Company’s principal place of business is Suites 2713-2715 Two International Finance Centre, 8 Finance Street, Central, Hong Kong . Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 is a wholly owned subsidiary of Baillie Gifford Overseas Limited, which is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited and Baillie Gifford & Co are authorised and regulated in the UK by the Financial Conduct Authority.