Capital at risk

Investment strategy

Japan Growth

Japan offers the unexpected. Global leading manufacturers, premium Asian brands and emerging digital disruptors.  

We look beneath the surface and beyond the headlines to capture these inimitable opportunities within a concentrated portfolio of 35-55 companies. Each one is selected on its own merits and on its attractive long-term earnings growth potential.  

Robotic arm welding the car in a futuristic assembly automotive manufacturing plant.

Searching for Japan’s finest

By focusing on the fundamentals, we aim to uncover Japan’s mispriced and often under-appreciated opportunities. 

Japanese Equities

Investment manager, Donald Farquharson, discusses the Baillie Gifford approach to Japanese Equities.

Giving companies time to grow

Japan Growth is long-term. We aim to outperform the TOPIX index by 2 per cent per annum over rolling five-year periods.  

Our high-conviction portfolio contains 35-55 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, aiming to capture 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.

A diversity of opportunities

What we’re looking to do is 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 are one of the few strategies which have been doing this for over 40 years.  

Our first-hand experience of Japan’s rich history offers us a strong insight into the significant structural changes at play. 

It is an error to confuse a country’s economic growth with the prospects for individual businesses. This is particularly true in Japan, which constitutes a major opportunity for the growth investor.
Donald Farquharson

Meet the managers

Documents

Philosophy and process

Explore our investment philosophy and the processes around how the team constructs the portfolio.

Quarterly update

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

Invest in this strategy

You can invest in this strategy through the following fund(s).

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 January 2024

#Holding% of portfolio
1Sony5.2%
2Keyence4.5%
3SoftBank Group4.3%
4SBI Holdings4.0%
5Recruit Holdings3.7%
6Sumitomo Mitsui Trust3.5%
7Murata Manufacturing3.5%
8Disco3.5%
9MS&AD Insurance3.2%
10SMC2.9%

Strategy holdings by sector

All figures up to: 31 January 2024

1Manufacturing55.00%
2Finance & Insurance12.70%
3Services11.60%
4Transport And Communications11.20%
5Commerce7.90%
6Real Estate0.90%
7Cash0.80%
Total 100%

Strategy holdings by sector

All figures up to: 31 January 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.

Invest in this strategy

You can invest in this strategy through the following fund(s).

Explore further

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

How to invest in this strategy

You can invest in this strategy through the following fund(s).

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 intended for institutional investors (as defined in the Securities and Futures Act, Chapter 289 of Singapore, as amended) and consultants in Singapore only. It is not intended for use by any other persons including members of the general public or investors from other jurisdictions.
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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. You can read details of our Legal and Important Information here.