Capital at risk
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.
Searching for Japan’s finest
By focusing on the fundamentals, we aim to uncover Japan’s mispriced and often underappreciated opportunities.
Japanese Equities: our philosophy
Investment manager Donald Farquharson introduces Japanese Equities, reflecting on the exciting opportunities ahead.
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.
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.
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.
Stewardship report
Find out about our conversations with portfolio companies, shareholder vote activity and consideration of environmental, social and governance matters.
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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 October 2025
| # | Holding | % of total assets |
|---|---|---|
| 1 | SoftBank Group | 9.1% |
| 2 | SBI Holdings | 5.9% |
| 3 | Sony | 5.0% |
| 4 | Sumitomo Mitsui Trust | 4.3% |
| 5 | Murata Manufacturing | 3.1% |
| 6 | Rakuten | 3.1% |
| 7 | Keyence | 3.0% |
| 8 | MS&AD Insurance | 2.9% |
| 9 | Recruit Holdings | 2.9% |
| 10 | CyberAgent | 2.6% |
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:
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Insights
SMC: Stock Story
Sarah Clark explores how SMC powers automation with precision pneumatics with engineering excellence.
Humanoid: Japan and the rise of the machine
Humanoids have been a long time coming, allowing Japan to build a world-class edge in robotic components.
Japanese Equities Q3 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.
Engagement and activism in Japan
Japan’s governance has had its ups and downs, but accelerating corporate reform is unlocking real investor value.
Tour de France: the Japanese connection
Bicycle parts maker Shimano is primed for a gear shift in performance.
Japan Growth Q2 update
Investment manager Donald Farquharson reflects on recent performance, portfolio changes and market developments.
Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.
Japan Growth Q1 update
The Japan Growth Team reflects on recent performance, portfolio changes and market developments.
Healthy returns: Japan’s assault on old-age disease
Japanese medical firms are making advances that could help fight cancer and Alzheimer’s.
Japan Growth Q4 update
The Japan Growth Team reflects on recent performance, portfolio changes and market developments.
Rakuten: rewiring Japan’s digital economy
Conglomerates can be clunky, but not so Rakuten. Matthew Brett and Colossus on how it is connecting the dots. Capital at risk.
Our best ideas in Japan
Thomas Patchett unwraps Softbank, Rakuten and Eisai, three companies driving new opportunities in Japan.
Japan: opportunities in automation
Japan's automation revolution and its global leadership in robotics.
Japan: opportunities in healthcare
Japan’s innovation medical breakthroughs are combatting ageing.
Japan: opportunities in quality brands
Behind the success of Japan’s leading quality brands and what opportunities they present.
Japan: opportunities in entertainment
Japan's media giants: Sony and Nintendo's timeless influence.
Japanese changemakers shaping the future
The firms taking advantage of four transformational opportunities.
Japan: the next opportunity
Explore Japan's market evolution, digitalization, and investment opportunities in unique growth themes.
China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.
The fresh face of Japanese finance
New online services are transforming Japanese financial habits.
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
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.
Japan Growth: Asia’s resurgence
Despite the turbulence of last year there are reasons to be optimistic about Japanese companies.
Japan trip reflections
Less foreign visitors, more cashless payments. Donald Farquharson reflects on post-Covid Japan
Investing in Japan: the country’s underappreciated edge
Matthew Brett explains why inflation and a falling yen make Japan an exciting place for investors.
The strengths of Japanese company culture
Companies such as Mercari that know that trying new things is the secret to growth.
Sysmex’s quest to diagnose disease
Kobe medical diagnostics company is well-placed to capitalise on therapy breakthroughs.
Four decades of lessons
Japan’s ability to anticipate technological change should see it through the ups and downs to come.
The return of the durable winners
Japan’s big brands are back, thanks to Chinese consumers, digitisation and better governance.
How Japan weathered Covid
The resilience of the Japanese economy still managed to deliver dividends despite the pandemic.
Adapting to disrupt
In Japan as elsewhere, companies that can adapt quickly often have the most success.
SBI: Japan’s fintech frontrunner
How an entrepreneurial tech company disrupted the world of Japanese financial services.
Japan Smaller Companies: the winners
The effects of Covid-19 were felt very differently across the smaller companies landscape.
Interview with our Japanese researchers
Donald Farquharson, head of the Japanese Equity Team at Baillie Gifford, speaks to Japan-based strategy researchers Akiko Hirai and Satoko Ishino.
Japanese changemakers shaping the future
SMC: Stock Story
Sarah Clark explores how SMC powers automation with precision pneumatics with engineering excellence.Humanoid: Japan and the rise of the machine
Humanoids have been a long time coming, allowing Japan to build a world-class edge in robotic components.Japanese Equities Q3 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.Engagement and activism in Japan
Japan’s governance has had its ups and downs, but accelerating corporate reform is unlocking real investor value.Tour de France: the Japanese connection
Bicycle parts maker Shimano is primed for a gear shift in performance.Japan Growth Q2 update
Investment manager Donald Farquharson reflects on recent performance, portfolio changes and market developments.Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.Japan Growth Q1 update
The Japan Growth Team reflects on recent performance, portfolio changes and market developments.Healthy returns: Japan’s assault on old-age disease
Japanese medical firms are making advances that could help fight cancer and Alzheimer’s.Japan Growth Q4 update
The Japan Growth Team reflects on recent performance, portfolio changes and market developments.Rakuten: rewiring Japan’s digital economy
Conglomerates can be clunky, but not so Rakuten. Matthew Brett and Colossus on how it is connecting the dots. Capital at risk.Our best ideas in Japan
Thomas Patchett unwraps Softbank, Rakuten and Eisai, three companies driving new opportunities in Japan.Japan: opportunities in automation
Japan's automation revolution and its global leadership in robotics.Japan: opportunities in healthcare
Japan’s innovation medical breakthroughs are combatting ageing.Japan: opportunities in quality brands
Behind the success of Japan’s leading quality brands and what opportunities they present.Japan: opportunities in entertainment
Japan's media giants: Sony and Nintendo's timeless influence.Japanese changemakers shaping the future
The firms taking advantage of four transformational opportunities.Japan: the next opportunity
Explore Japan's market evolution, digitalization, and investment opportunities in unique growth themes.China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.The fresh face of Japanese finance
New online services are transforming Japanese financial habits.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
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.Japan Growth: Asia’s resurgence
Despite the turbulence of last year there are reasons to be optimistic about Japanese companies.Japan trip reflections
Less foreign visitors, more cashless payments. Donald Farquharson reflects on post-Covid JapanInvesting in Japan: the country’s underappreciated edge
Matthew Brett explains why inflation and a falling yen make Japan an exciting place for investors.The strengths of Japanese company culture
Companies such as Mercari that know that trying new things is the secret to growth.Sysmex’s quest to diagnose disease
Kobe medical diagnostics company is well-placed to capitalise on therapy breakthroughs.Four decades of lessons
Japan’s ability to anticipate technological change should see it through the ups and downs to come.The return of the durable winners
Japan’s big brands are back, thanks to Chinese consumers, digitisation and better governance.How Japan weathered Covid
The resilience of the Japanese economy still managed to deliver dividends despite the pandemic.Adapting to disrupt
In Japan as elsewhere, companies that can adapt quickly often have the most success.SBI: Japan’s fintech frontrunner
How an entrepreneurial tech company disrupted the world of Japanese financial services.Japan Smaller Companies: the winners
The effects of Covid-19 were felt very differently across the smaller companies landscape.Interview with our Japanese researchers
Donald Farquharson, head of the Japanese Equity Team at Baillie Gifford, speaks to Japan-based strategy researchers Akiko Hirai and Satoko Ishino.
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.