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

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

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. 

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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
1SBI Holdings4.5%
2GMO Internet3.9%
3Sumitomo Mitsui Trust3.9%
4DMG Mori3.5%
5Tokio Marine Holdings Inc3.5%
6MS&AD Insurance3.4%
7Nintendo3.2%
8SoftBank Group3.2%
9Bridgestone3.1%
10FANUC3.0%

Strategy holdings by sector

All figures up to: 31 January 2024

1Manufacturing48.40%
2Finance & Insurance19.00%
3Transport And Communications11.00%
4Commerce8.70%
5Services8.40%
6Real Estate4.80%
7Cash-0.30%
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.

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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.
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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.