Capital at risk
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.
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.
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.
Meet the managers
Documents
Quarterly update
Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting.
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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 |
|---|---|---|
| 1 | SBI Holdings | 4.5% |
| 2 | DMG Mori | 4.4% |
| 3 | SoftBank Group | 4.2% |
| 4 | MS&AD Insurance | 4.0% |
| 5 | Sumitomo Mitsui Trust | 3.9% |
| 6 | GMO Internet | 3.9% |
| 7 | Tokio Marine Holdings Inc | 3.6% |
| 8 | Bridgestone | 3.0% |
| 9 | Calbee | 2.8% |
| 10 | Kubota | 2.8% |
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.
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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
The fresh face of Japanese finance
New online services are transforming Japanese financial habits.
Japan Stewardship Report
For the year ended September 2023.
Japanese Equities Q4 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.
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 Q3 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.
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 Q1 investment update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments over the last quarter.
Related insights
The fresh face of Japanese finance
New online services are transforming Japanese financial habits.Japan Stewardship Report
For the year ended September 2023.Japanese Equities Q4 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.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 Q3 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.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.
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
The content of this website is intended exclusively for professional investors in accordance with MiFID legislation. ’Professional investors’ are potential investors who are deemed to have the status of “professional clients”, within the meaning of MiFID (2004/39/EC), as transposed in Ireland. It is not intended for retail investors.
Baillie Gifford Investment Management (Europe) Limited is authorised and regulated by the Central Bank of Ireland (Reference number C182354) as an Alternative Investment Fund Manager and UCITS Manager to Baillie Gifford Worldwide Funds plc. Its registered office is 4/5 School House Lane East, Dublin 2, D02 N279, Ireland.
This website is informative only and the information provided should not be considered as investment or other advice or a recommendation to buy, sell or hold a particular investment. Read our Legal and regulatory information for further details.