Overview
The Japanese Smaller Companies Fund aims to outperform (after deduction of costs) the MSCI Japan Small Cap Index, as stated in sterling, by at least 1.5% per annum over rolling five-year periods.
The manager believes this is an appropriate target given the investment policy of the Fund and the approach taken by the manager when investing. In addition, the manager believes an appropriate performance comparison for this Fund is the Investment Association Japan Sector.
There is no guarantee that this objective will be achieved over any time period and actual investment returns may differ from this objective, particularly over shorter time periods.
We add value through the use of proprietary, fundamental research which prioritises the selection of individually attractive companies rather than the taking of top-down industry bets.
Performance & Portfolio
Periodic Performance
All figures to 31/10/2023 6 Months
1 Year
3 Years
5 Years
Class B-Acc -16.3% -16.5% -17.3% -5.3% Index* 0.2% 8.0% 1.3% 2.2% Target Benchmark** 0.9% 9.6% 2.8% 3.7%
Annual Discrete Performance to 30 September each year
Annual percentage return (Updated Quarterly) 30/09/2018
30/09/201930/09/2019
30/09/202030/09/2020
30/09/202130/09/2021
30/09/202230/09/2022
30/09/2023Class B-Acc -6.8% 24.2% 0.4% -30.1% -12.7% Index* -0.3% 2.0% 10.1% -12.1% 8.5% Target Benchmark** 1.2% 3.5% 11.8% -10.8% 10.1% Sector Average*** -1.1% 5.6% 16.7% -15.4% 11.3% Please bear in mind that past performance is not a guide to future performance.
The value of your investment may go down as well as up, and you may not get back the amount you invested.
Source: FE, Revolution, MSCI. Total return in sterling.
Share class and Sector returns calculated using 10am prices, while the Index is calculated close-to-close.
*MSCI Japan Small Cap Index.
**MSCI Japan Small Cap Index (in sterling) plus at least 1.5% per annum over rolling five-year periods.
***IA Japan Sector.Figures for 3 and 5 years show the annual rate of return.
Top Ten Holdings - 31/10/2023
Fund % 1 Cosmos Pharmaceutical 3.9% 2 Nakanishi 3.2% 3 Asahi Intecc 2.8% 4 MatsukiyoCocokara 2.5% 5 Yonex 2.5% 6 Descente 2.4% 7 Nifco 2.4% 8 Toyo Tanso 2.4% 9 GMO Financial Gate 2.4% 10 Sho-Bond Holdings 2.3% Total 26.7% SECTOR ANALYSIS OF TOTAL ASSETS - 31/10/2023Fund %
- 1 Industrials 27.59
- 2 Consumer Discretionary 15.43
- 3 Information Technology 14.85
- 4 Financials 10.31
- 5 Health Care 8.97
- 6 Consumer Staples 8.57
- 7 Communication Services 7.99
- 8 Materials 4.12
- 9 Real Estate 2.01
- 10 Cash 0.15
- Total 100.00
As the Fund invests in overseas securities, changes in the rates of exchange may cause the value of your investment (and any income it may pay) to go down or up.
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.Meet the Manager
Praveen Kumar
Praveen is an Investment Manager in the Japanese Equities Team. He is the Manager of the Japanese Smaller Companies fund (and related Japan Small Cap strategy segregated accounts), Manager of the Shin Nippon Investment Trust, and Deputy Manager of the Baillie Gifford Japan Trust Plc. He is also a member of the International Smaller Companies Portfolio Construction Group (PCG). Praveen graduated BEng in Computer Science from Bangalore University in 2001, and an MBA from the University of Cambridge in 2008. He previously worked for FKI Logistex before joining Baillie Gifford in 2008. After completing the investment graduate trainee programme Praveen joined the Japanese Equities Team as an Investment Manager in 2011.
Paul Schwerda
Paul is an Investment Manager in the Japanese Equities Team, and co-manager of the Japanese Smaller Companies Fund. Paul joined Baillie Gifford in 2018 after he graduated PhD in South Asian Studies from Harvard University in 2017. Prior to this he gained an AM in South Asian Studies from Harvard University in 2015 and an MA in Indian Studies from the University of Tübingen in 2011. Reflecting his long-standing fascination with Japan and his experience of living there, Paul is particularly interested in identifying those companies that will shape Japan’s economic future. Furthermore, he is intrigued by questions of impact and ESG and keen to explore them in a Japanese context.
Documents
You can access any literature about the Fund here, either by downloading or requesting a copy by post (where available).
To download any document you will need Adobe Reader. Please note that we can now provide you with Braille and audio transcriptions of our literature on request. It may take up to 10 days for the transcription to be completed dependent on the size of the document.
Application Forms
Bulletins and Factsheets
Enhanced Disclosure Document
Key Investor Information Documents
Sustainability-related Disclosures
Risks
General Investment Risk
Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested.
Custody
Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.
Smaller Companies
Investment in smaller companies is generally considered higher risk as the market for their shares may be less liquid and more difficult to trade than that for larger companies. As a result, share price fluctuations may be greater. In addition smaller companies may not do so well in periods of adverse economic conditions. Where such companies have business models and competitive positions which are less well established, this could result in an increased likelihood of loss for investors.
Market Conditions
Any value assigned to illiquid securities which are difficult to trade, such as those in smaller companies, may not accurately reflect the price the Fund might receive upon their sale.
Single Country
The Fund’s exposure to a single market and currency may increase share price movements.
Foreign Currency
The Fund has exposure to foreign currencies and changes in the rates of exchange will cause the value of any investment, and income from it, to fall as well as rise and you may not get back the amount invested.
Volatility
The Fund’s share price can be volatile due to movements in the prices of the underlying holdings and the basis on which the Fund is priced.
Dilution
A dilution adjustment may apply when you buy or sell shares in the Fund. This is applied to the share price and may reduce the return on your investment.
Fees from Revenue
Where possible, charges are taken from the Fund's revenue. Where there is insufficient revenue, the remainder will be taken from capital. This will reduce the capital value of your investment.
Tax Rates
Tax rates and the tax treatment of OEICs can change at any time.
