Capital at risk
Investment strategy
Japan All Cap
Japan offers the unexpected. Global leading manufacturers, premium Asian brands and emerging digital disruptors.
The Japan All Cap Strategy looks beneath the surface and beyond the headlines to capture these opportunities. Each portfolio holding is selected on its own merits and long-term earnings growth potential.
Backing businesses, not the economy
By focusing on the fundamentals, we aim to uncover Japan’s mispriced and often underappreciated opportunities.
Japanese Equities: our philosophy
Investment manager Donald Farquharson introduces Japanese Equities, reflecting on the exciting opportunities ahead.
Aiming for outperformance
Japan All Cap is long-term focused. We aim to outperform the TOPIX Index by 2 per cent per annum over rolling five-year periods.
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 the opportunity to take advantage of their idiosyncratic growth opportunities.
We find these companies through bottom-up research, holding on for the long term and aiming to capture the 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.
Being patient with potential
We aim to capture growth in all its forms – from secular opportunities in emerging digital disruptors to the enduring growth of stalwart franchises to special situations of corporate reform.
The patience 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.
Our experience of Japan’s rich history offers us an insight into the significant structural changes at play here.
A classic analogy for competitive advantage is moats: we’re not interested in how deep the moat will be in the immediate future but in how deep it will be in five years’ time and beyond.
Meet the managers
Matthew Brett
Investment ManagerMatthew is an investment manager in the Japanese Equities Team. He is co-manager of the Japan All Cap Strategy, the Japanese Income Growth Strategy and manager of the Baillie Gifford Japan Trust. He joined Baillie Gifford in 2003 and became a partner of the firm in 2018. Matthew graduated BA (Hons) in Natural Sciences (Psychology) from the University of Cambridge in 2000 and holds a PhD in Psychology from the University of Bristol.
Jared Anderson
Jared Anderson is an investment manager in the Japanese Equities Team. He is co-manager of Japan All Cap Strategy and Japanese Smaller Companies Strategy, and deputy manager of the Shin Nippon Investment Trust. Jared joined Baillie Gifford in 2016. Prior to joining the firm he spent two years as an Assistant Economist at the Scottish Government. Jared graduated MA (Hons) in Economics from the University of Edinburgh in 2012.
Documents
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: 30 April 2026
| # | Holding | % of total assets |
|---|---|---|
| 1 | SoftBank Group | 8.3% |
| 2 | Sumitomo Mitsui Trust | 4.9% |
| 3 | SBI Holdings | 4.6% |
| 4 | Rakuten | 3.7% |
| 5 | FANUC | 3.6% |
| 6 | Sony | 3.4% |
| 7 | SMC | 3.4% |
| 8 | CyberAgent | 3.0% |
| 9 | Murata Manufacturing | 2.6% |
| 10 | GMO Internet | 2.6% |
Sector
As at: 30 April 2026
# | Sector | Fund % | Index % * | Difference % |
|---|---|---|---|---|
| 1 | Electric Appliances | 19.9 | 19.5 | 0.4 |
| 2 | Information & Communication | 14.2 | 6.4 | 7.8 |
| 3 | Services | 11.0 | 2.9 | 8.0 |
| 4 | Chemicals | 10.4 | 4.7 | 5.7 |
| 5 | Machinery | 9.7 | 6.7 | 3.0 |
| 6 | Banks | 6.3 | 10.8 | -4.6 |
| 7 | Securities & Commodity Futures | 4.6 | 0.9 | 3.7 |
| 8 | Pharmaceutical | 3.2 | 3.5 | -0.3 |
| 9 | Other Products | 2.7 | 2.0 | 0.7 |
| 10 | Wholesale Trade | 2.5 | 8.4 | -5.9 |
| 11 | Insurance | 2.5 | 3.3 | -0.8 |
| 12 | Real Estate | 2.0 | 1.9 | 0.1 |
| 13 | Rubber Products | 2.0 | 0.5 | 1.5 |
| 14 | Other Financing Business | 2.0 | 1.2 | 0.8 |
| 15 | Foods | 1.7 | 2.7 | -1.0 |
| 16 | Retail Trade | 1.6 | 4.0 | -2.3 |
| 17 | Transportation Equipment | 1.4 | 5.5 | -4.1 |
| 18 | Nonferrous Metals | 1.1 | 3.0 | -1.8 |
| 19 | Precision Instruments | 0.8 | 2.0 | -1.2 |
| 20 | Land Transportation | 0.6 | 1.9 | -1.3 |
| 21 | Cash | -0.3 | 0.0 | -0.3 |
Total | 100.0 | 91.9 |
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:
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Insights
Viewing 42 of 42
Sonrise again
SoftBank’s Masayoshi Son commands the new AI landscape, building for what comes next.
Japanese Equities Q1 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.
Japanese Equities Q4 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.
SMC: Stock Story
Sarah Clark explores how SMC powers automation with precision pneumatics with engineering excellence.
Humanoid: Japan and the rise of the machine
Humanoids have been a long time coming, allowing Japan to build a world-class edge in robotic components.
Japanese Equities Q3 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.
Engagement and activism in Japan
Japan’s governance has had its ups and downs, but accelerating corporate reform is unlocking real investor value.
Tour de France: the Japanese connection
Bicycle parts maker Shimano is primed for a gear shift in performance.
Japan All Cap Q2 update
Investment manager Jared Anderson reflects on recent performance, portfolio changes and market developments.
Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.
Japan All Cap Q1 update
The Japan All Cap Team reflects on recent performance, portfolio changes and market developments.
Healthy returns: Japan’s assault on old-age disease
Japanese medical firms are making advances that could help fight cancer and Alzheimer’s.
Japan All Cap Q4 update
The Japan All Cap Team reflects on recent performance, portfolio changes and market developments.
Rakuten: rewiring Japan’s digital economy
Conglomerates can be clunky, but not so Rakuten. Matthew Brett and Colossus on how it is connecting the dots. Capital at risk.
Our best ideas in Japan
Thomas Patchett unwraps Softbank, Rakuten and Eisai, three companies driving new opportunities in Japan.
Japan: opportunities in automation
Japan's automation revolution and its global leadership in robotics.
Japan: opportunities in healthcare
Japan’s innovation medical breakthroughs are combatting ageing.
Japan: opportunities in quality brands
Behind the success of Japan’s leading quality brands and what opportunities they present.
Japan: opportunities in entertainment
Japan's media giants: Sony and Nintendo's timeless influence.
Japanese changemakers shaping the future
The firms taking advantage of four transformational opportunities.
Japan: the next opportunity
Explore Japan's market evolution, digitalization, and investment opportunities in unique growth themes.
China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.
The fresh face of Japanese finance
New online services are transforming Japanese financial habits.
Stock story: SoftBank
Matthew Brett discusses SoftBank and considers Japan’s exciting technological future.
Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
Spotting the stars amid a surge
Rising Japanese markets are flattering old-style companies: better to look for long-term growth.
Japan’s new growth opportunities
Seeking the entrepreneurial firms that could sustain the country’s rally.
Japanese Equities
Investment manager, Donald Farquharson, discusses the Baillie Gifford approach to Japanese Equities.
Japan’s place in the chip market
The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.
Japanese Equities update
Fund manager Matthew Brett and investment specialist Thomas Patchett discuss growth investing in Japan.
Investing in Japan: the country’s underappreciated edge
Matthew Brett explains why inflation and a falling yen make Japan an exciting place for investors.
Success after succession
How can founder-defined companies – from Nidec to Nintendo – ensure success when it’s time for a new CEO?
The strengths of Japanese company culture
Companies such as Mercari that know that trying new things is the secret to growth.
Sysmex’s quest to diagnose disease
Kobe medical diagnostics company is well-placed to capitalise on therapy breakthroughs.
Four decades of lessons
Japan’s ability to anticipate technological change should see it through the ups and downs to come.
Investing in Japan: What’s changed and what’s next?
Over four decades Japan has seen 21 prime ministers come and go. Exporters such as Toyota and Toshiba have flourished but the country has also struggled with debt and deflation. Matthew Brett, investment manager, discusses what’s next.
The return of the durable winners
Japan’s big brands are back, thanks to Chinese consumers, digitisation and better governance.
How Japan weathered Covid
The resilience of the Japanese economy still managed to deliver dividends despite the pandemic.
Adapting to disrupt
In Japan as elsewhere, companies that can adapt quickly often have the most success.
SBI: Japan’s fintech frontrunner
How an entrepreneurial tech company disrupted the world of Japanese financial services.
Japan Smaller Companies: the winners
The effects of Covid-19 were felt very differently across the smaller companies landscape.
Interview with our Japanese researchers
Donald Farquharson, head of the Japanese Equity Team at Baillie Gifford, speaks to Japan-based strategy researchers Akiko Hirai and Satoko Ishino.
View transcript
<p><strong>Your capital is at risk. Past performance is not a guide to future returns. The following update is based on a representative portfolio. As such, stock examples may not be held in every client portfolio, and performance may differ.</strong></p>
<p><strong>Alison Henry:</strong> For many years, investing in Japan resembled a drought. Declining demographics, deflation, and a low-risk appetite created an environment where stock pickers had to look for businesses that could thrive on their own steam. Investors gravitated towards digital platforms, software-like models, consumer franchises, and other businesses able to compound largely on their own. That was the environment in which many of our holdings prospered. It favoured businesses with structural earnings growth and the ability to create demand rather than merely receive it. It was a fertile backdrop for active investing.</p>
<p>Then the weather changed. Inflation, nominal growth and currency weakness swept across Japan like a flood and allowed more economically sensitive businesses to thrive. Operating leverage and currency came to dominate, resulting in a broad macro rally over the last five years or so.</p>
<p>Exposure rather than selection did much of the work and our portfolio underperformed as a result. In recent months, market leadership has broadened, but not yet in the way we had hoped. The strongest winners have been companies closest to the pressure points in the economy. So the cable makers, shipping companies, and trading houses, the first order beneficiaries of the wetlands after the flood. The Iran war has pushed investors toward immediate beneficiaries of the energy and logistics strain, and the SaaS sell-off showed the other side of the same behaviour. When investors worry about AI disruption, they sell the names nearest to the code.</p>
<p>This helps to explain our relative underperformance over the quarter. We had less exposure to the boats and the bridges, if you like, and more to businesses whose payoff lies further downstream. Several of our weaker holdings, so that would be GMO Internet, SoftBank, SPI Holdings and Recruit. They’re focused on what customers do once bottlenecks become too costly to ignore, rather than monetising the bottleneck itself.</p>
<p>So this was a quarter in which the market preferred immediacy over duration. The key question is where do returns pool next? With the bottleneck owners, or with businesses helping customers build long-term solutions. So once the water rises, companies and consumers do not keep paying the crossing toll forever. They adapt and build drainage and canals. And the same applies in markets. Once labour becomes scarcer, businesses invest in automation. Once capital costs rise, they seek lower friction intermediation. And once digital infrastructure becomes strategic, businesses spend on compute, security and workflow. So Recruit, the owner of Indeed and Glassdoor, is a good example.</p>
<p>It sold off during the quarter on SaaS contagion fears, despite being critical in helping to address one of Japan’s biggest constraints, labour. Scarcity will first reward companies exposed to tighter conditions, but the more enduring opportunity will reward businesses that help the labour market function better. Recruit does exactly that by improving matching, hiring efficiency and throughput. A similar logic applies to SBI holdings and SBI Shinsei within finance. As capital is priced more carefully, the opportunity shifts towards better intermediation SBI is enabling digital distribution, lower friction intermediation, and a more efficient banking model, which is normalising the cost of capital. GMO Internet sits in a related position within digital infrastructure. As compute security and connectivity become more strategic, its role as owner and operator of Japan’s internet infrastructure is to help customers adapt. And lastly, Softbank. It’s perhaps the least neat fit, but the broad logic still holds. Through its 90 percent holding an arm and 13 percent holding an open AI, it sits closer to enabling the next layer of AI infrastructure than to owning today’s bottleneck.</p>
<p>So to conclude, we don’t think we’re positioned against the market’s direction of travel. We believe we’re positioned a step further along it. And that is made more compelling by today’s valuation. The portfolios now trade at a discount to the market, despite enjoying higher sales and earnings growth. We are being asked to pay less for businesses that we believe are better placed for what comes next.</p>
<p> </p>
<p> </p>
<p> </p>
<h3 class="TABLEHEADER1212pt">Japanese Equities</h3>
<p><strong>Annual past performance to 31 March each year (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 74.6668px;">
<tbody>
<tr style="height: 18.6667px;">
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px;"> </td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;"><strong>2022</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;"><strong>2023</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;"><strong>2024</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;"><strong>2025</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right;"><strong>2026</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px;">Japanese Equities All Cap Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-11.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-10.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">11.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-0.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">11.3</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px;">Japanese Equities All Cap Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-12.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-11.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">11.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-0.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">10.7</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px;">Japanese Equities Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-17.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-12.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">12.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-5.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">13.6</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px;">Japanese Equities Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-17.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-12.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">11.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">-5.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right;">12.9</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px;">TOPIX Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-7.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-3.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">24.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-0.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">26.6</td>
</tr>
</tbody>
</table>
<p> </p>
<p><strong>Annualised returns to 31 March 2026 (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 93.0001px;">
<tbody>
<tr style="height: 37px;">
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 61.3043%;"> </td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 13.0435%; text-align: right;"><strong>1 year</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 12.6522%; text-align: right;"><strong>5 years</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 12.7826%; text-align: right;"><strong>10 years</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3043%;">Japanese Equities All Cap Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.0435%; text-align: right;">11.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.6522%; text-align: right;">-0.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.7826%; text-align: right;">7.6</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3043%;">Japanese Equities All Cap Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.0435%; text-align: right;">10.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.6522%; text-align: right;">-1.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.7826%; text-align: right;">7.0</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 61.3043%;">Japanese Equities Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 13.0435%; text-align: right;">13.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 12.6522%; text-align: right;">-2.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 12.7826%; text-align: right;">6.5</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 61.3043%;">Japanese Equities Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 13.0435%; text-align: right;">12.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 12.6522%; text-align: right;">-3.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 12.7826%; text-align: right;">5.8</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3043%;">TOPIX Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.0435%; text-align: right;">26.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.6522%; text-align: right;">7.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.7826%; text-align: right;">8.8</td>
</tr>
</tbody>
</table>
<p><span style="font-size: 7.0pt; font-family: 'Helvetica Now Text',sans-serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB; mso-fareast-language: JA; mso-bidi-language: AR-SA;">Source: Revolution, Japan Exchange Group. US dollars. Net returns have been calculated by reducing the gross return by the highest annual management fee for the composite. 1 year figures are not annualised.</span><span style="font-size: 7.0pt; font-family: 'Helvetica Now Text',sans-serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB; mso-fareast-language: JA; mso-bidi-language: AR-SA;"></span></p>
<p><strong>Past performance is not a guide to future returns.</strong></p>
<p><span style="font-size: 7.0pt; font-family: 'Helvetica Now Text',sans-serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB; mso-fareast-language: JA; mso-bidi-language: AR-SA;">Legal notice: The TOPIX Index Value and the TOPIX Marks are subject to the proprietary rights owned by Tokyo Stock Exchange, Inc. and Tokyo Stock Exchange, Inc. owns all rights and know-how relating to the TOPIX such as calculation, publication and use of the TOPIX Index Value and relating to the TOPIX Marks. No Product is in any way sponsored, endorsed or promoted by Tokyo Stock Exchange, Inc.</span></p>
<p> </p>
<h3>Risk factors </h3>
<p>This communication was produced and approved in April 2026 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.</p>
<p>The views expressed should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.</p>
<p>This communication contains information on investments which does not constitute independent research. Accordingly, it is not subject to the protections afforded to independent research, but is classified as advertising under Art 68 of the Financial Services Act (‘FinSA’) and Baillie Gifford and its staff may have dealt in the investments concerned.</p>
<p>All information is sourced from Baillie Gifford & Co and is current unless otherwise stated. </p>
<p>The images used in this communication are for illustrative purposes only.</p>
<p> </p>
<p><strong>Important information<br></strong>Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). Baillie Gifford & Co Limited is an Authorised Corporate Director of OEICs.</p>
<p>Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK Professional/Institutional clients only. Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. Baillie Gifford & Co and Baillie Gifford Overseas Limited are authorised and regulated by the FCA in the UK. </p>
<p>Persons resident or domiciled outside the UK should consult with their professional advisers as to whether they require any governmental or other consents in order to enable them to invest, and with their tax advisers for advice relevant to their own particular circumstances.</p>
<p><strong>Financial intermediaries</strong><br>This communication is suitable for use of financial intermediaries. Financial intermediaries are solely responsible for any further distribution and Baillie Gifford takes no responsibility for the reliance on this document by any other person who did not receive this document directly from Baillie Gifford.</p>
Japanese Equities Q1 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.
Sonrise again
SoftBank’s Masayoshi Son commands the new AI landscape, building for what comes next.Japanese Equities Q1 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.Japanese Equities Q4 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.SMC: Stock Story
Sarah Clark explores how SMC powers automation with precision pneumatics with engineering excellence.Humanoid: Japan and the rise of the machine
Humanoids have been a long time coming, allowing Japan to build a world-class edge in robotic components.Japanese Equities Q3 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.Engagement and activism in Japan
Japan’s governance has had its ups and downs, but accelerating corporate reform is unlocking real investor value.Tour de France: the Japanese connection
Bicycle parts maker Shimano is primed for a gear shift in performance.Japan All Cap Q2 update
Investment manager Jared Anderson reflects on recent performance, portfolio changes and market developments.Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.Japan All Cap Q1 update
The Japan All Cap Team reflects on recent performance, portfolio changes and market developments.Healthy returns: Japan’s assault on old-age disease
Japanese medical firms are making advances that could help fight cancer and Alzheimer’s.Japan All Cap Q4 update
The Japan All Cap Team reflects on recent performance, portfolio changes and market developments.Rakuten: rewiring Japan’s digital economy
Conglomerates can be clunky, but not so Rakuten. Matthew Brett and Colossus on how it is connecting the dots. Capital at risk.Our best ideas in Japan
Thomas Patchett unwraps Softbank, Rakuten and Eisai, three companies driving new opportunities in Japan.Japan: opportunities in automation
Japan's automation revolution and its global leadership in robotics.Japan: opportunities in healthcare
Japan’s innovation medical breakthroughs are combatting ageing.Japan: opportunities in quality brands
Behind the success of Japan’s leading quality brands and what opportunities they present.Japan: opportunities in entertainment
Japan's media giants: Sony and Nintendo's timeless influence.Japanese changemakers shaping the future
The firms taking advantage of four transformational opportunities.Japan: the next opportunity
Explore Japan's market evolution, digitalization, and investment opportunities in unique growth themes.China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.The fresh face of Japanese finance
New online services are transforming Japanese financial habits.Stock story: SoftBank
Matthew Brett discusses SoftBank and considers Japan’s exciting technological future.Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.Spotting the stars amid a surge
Rising Japanese markets are flattering old-style companies: better to look for long-term growth.Japan’s new growth opportunities
Seeking the entrepreneurial firms that could sustain the country’s rally.Japanese Equities
Investment manager, Donald Farquharson, discusses the Baillie Gifford approach to Japanese Equities.Japan’s place in the chip market
The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.Japanese Equities update
Fund manager Matthew Brett and investment specialist Thomas Patchett discuss growth investing in Japan.Investing in Japan: the country’s underappreciated edge
Matthew Brett explains why inflation and a falling yen make Japan an exciting place for investors.Success after succession
How can founder-defined companies – from Nidec to Nintendo – ensure success when it’s time for a new CEO?The strengths of Japanese company culture
Companies such as Mercari that know that trying new things is the secret to growth.Sysmex’s quest to diagnose disease
Kobe medical diagnostics company is well-placed to capitalise on therapy breakthroughs.Four decades of lessons
Japan’s ability to anticipate technological change should see it through the ups and downs to come.Investing in Japan: What’s changed and what’s next?
Over four decades Japan has seen 21 prime ministers come and go. Exporters such as Toyota and Toshiba have flourished but the country has also struggled with debt and deflation. Matthew Brett, investment manager, discusses what’s next.The return of the durable winners
Japan’s big brands are back, thanks to Chinese consumers, digitisation and better governance.How Japan weathered Covid
The resilience of the Japanese economy still managed to deliver dividends despite the pandemic.Adapting to disrupt
In Japan as elsewhere, companies that can adapt quickly often have the most success.SBI: Japan’s fintech frontrunner
How an entrepreneurial tech company disrupted the world of Japanese financial services.Japan Smaller Companies: the winners
The effects of Covid-19 were felt very differently across the smaller companies landscape.Interview with our Japanese researchers
Donald Farquharson, head of the Japanese Equity Team at Baillie Gifford, speaks to Japan-based strategy researchers Akiko Hirai and Satoko Ishino.
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