1. Overview

    The Japanese Income Growth Fund aims to outperform (after deduction of costs) the TOPIX, as stated in Sterling, by at least 1% per annum over rolling five-year periods through a combination of income and capital growth whilst maintaining a portfolio yield higher than the TOPIX. 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.

    The manager believes this is an appropriate benchmark 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.

    Our fund aims to generate strong long-term total returns as well as provide investors with a higher yield than the Japanese market.

    Performance & Portfolio

    Periodic Performance

    All figures to 31/03/2021

    6 Months

    1 Year

    3 Years

    Since Inception

    Class B-Inc 0.6%11.7%4.5%10.6%
    Index* -0.8%7.6%3.2%8.5%
    Target Benchmark** -0.3%8.7%4.2%9.6%
    Sector Average*** -0.4%11.2%4.5%9.5%

    Annual Discrete Performance to 31 March each year

    Annual percentage return (Updated Quarterly)






    Class B-Inc n/a12.4%2.0%-9.0%35.4%
    Index* n/a8.2%-1.8%-2.5%24.8%
    Target Benchmark** n/a9.3%-0.8%-1.5%26.0%
    Sector Average*** n/a9.2%-3.6%-3.4%31.8%

    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.
    Performance source: FE and relevant underlying index provider, single pricing basis, total return.
    Returns reflect the annual charges but exclude any initial charge paid.
    **TOPIX +1%.
    ***IA Japan Sector.

    Performance - 31/05/2021

    The value of your investment may go down as well as up, and you may not get back the amount you invested.
    Source: FE and relevant underlying index provider, single pricing basis, total return.
    Please bear in mind that past performance is not a guide to future performance.
    The graph is rebased to 100.

    Top Ten Holdings - 31/05/2021

    Fund %
    1 DENSO 4.5%
    2 Pola Orbis 4.1%
    3 SoftBank Group 3.6%
    4 FANUC 3.5%
    5 Kubota 3.2%
    6 GMO Internet 3.2%
    7 SBI Holdings 3.0%
    8 MS&AD Insurance 2.9%
    9 Sumitomo Mitsui Trust 2.9%
    10 Bridgestone 2.9%
    Total 33.8%

    Fund %

    • 1 Man & Machinery 26.64
    • 2 Financials 16.37
    • 3 Commerce & Services 15.94
    • 4 Chemicals & Other Materials 10.88
    • 5 Electricals & Electronics 10.85
    • 6 Info, Comm And Utilities 9.44
    • 7 Real Estate & Construction 4.42
    • 8 Pharmaceuticals & Foods 2.93
    • 9 Retail 1.43
    • 10 Cash 1.10
    • Total 100.0

    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 Managers

    Matthew Brett

    Matthew is an Investment Manager in the Japanese Equities Team. He is manager of the Japanese All Cap Strategy and Lead Manager of the Japanese Income Growth Strategy. He is also a member of the Global Stewardship Portfolio Construction Group. Matthew joined Baillie Gifford in 2003 and became a Partner in 2018. He is a CFA Charterholder. 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.

    Karen See

    Karen joined Baillie Gifford in 2012 and is an Investment Manager in the Japanese Equities Team. She is a CFA Charterholder and graduated BSc (Hons) in Economics with Japanese from the University of Birmingham in 2011.

    How to Buy

    You can invest in a range of our funds via a number of fund platforms and supermarkets, please see the links opposite. Further information on the funds can be found in the relevant Key Investor Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request. Information on the range of funds available through platforms can be found in our Platform Matrix.

    Baillie Gifford does not sponsor, maintain or have any control over the content of any other websites. Therefore, we are not responsible for the adequacy or accuracy of any of the information you may view, nor do we undertake to ensure successful transmission to any linked website.

    How to Buy

    OEIC Terms of Business

    To buy and sell our funds, you must complete and return a copy of the document below, if you don't already have an agreement with us. In order for us to accept your business for our range of OEICs, please complete and return the Terms of Business Acceptance Form.


    You can access any literature about the Fund here, either by downloading or requesting a copy by post (where available). Please note that, due to current government restrictions, we have a limited number of staff in our office. As a result, if posting instructions to us, there may be a delay in processing these due to these current restrictions.

    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.

    Philosophy and Process Documents


    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 of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.

    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.


    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.


    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 to capital

    For distribution purposes the ACD has the facility to allocate part or all of the Authorised Corporate Director’s (ACD) fee to capital. This will reduce the capital value of the Fund. For the year to 30 June 2020 100% of expenses were allocated to capital. The figure for the current financial period has not yet been determined however this number may vary from year to year.

    Tax Rates

    Tax rates and the tax treatment of OEICs can change at any time.