Fact sheet: Baillie Gifford Shin Nippon IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
JAPANESE EQUITIES
Sector
IT Japanese Smaller Companies
Fund type
Investment Trust
Primary aim
GROWTH
Why Money Observer Rates Baillie Gifford Shin Nippon IT

Rated Fund 2015-2018. Backs the next generation of company entrepreneurs

Winner of Money Observer's Best Japan Trust award in 2017, this is the stablemate to Baillie Gifford Japan investment trust, but it differs in that it focuses exclusively on high-growth smaller companies.

FundCalibre, the fund ratings and research provider, points to its pedigree as the best-performing Japanese fund across both the closed-ended and the open-ended universe since Shinzo Abe became prime minister.

Shin Nippon means New Japan, and Praveen Kumar, the trust's manager since the end of 2015, focuses on emerging and disrupted sectors where he sees innovative growth opportunities. He is a bottom-up stock-picker and pays little attention to the benchmark, as demonstrated by an ムactive share' of 93 per cent.

Kumar has been a member of Baillie Gifford's Japan equities team since 2011 and worked closely with the previous manager, the much-respected John MacDougall, under whom this trust had been a regular winner of Money Observer's Best Japan Trust award.

The types of business Kumar favours are those that he believes have above-average growth prospects and strong, entrepreneurial management teams. He points out that the majority of Shin Nippon's holdings are managed by younger, more progressive management teams than is typical in Japan.

At the end of 2017, the trust had 9 per cent of an 11 per cent gearing facility invested. It was also trading at a premium that crept into double digits, making this trust suitable for those who are very optimistic on the outlook for Japanese equities.

Such an investor is East Sussex-based Skerritts Wealth Management. Investment manager Charlie Lloyd says: ムJapan remains one of our conviction calls in portfolios ヨ we're big holders of Baillie Gifford Shin Nippon.'

3 Year Performance
Fund Performance136.9%
Average of Rated Funds Group76.4%
Sector Performance82%
Fund information
Fund name
Baillie Gifford Shin Nippon PLC
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund managers
  • Praveen Kumarsince 01/12/2015
Accolades
Winner - Regular savings Overseas Smaller Companies
Fund objective
The Trust aims to achieve long-term capital growth principally through investment in small Japanese companies which are believed to have above average prospects for capital growth.
Benchmark
  • MSCI Japan Small Cap
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
49.1%
1 Year rank in sector
1/4
Sector
IT Japanese Smaller Companies
Yield
-
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.89%
Fund size
£459m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
163
Mid price
938
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
859.38
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+9.15
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
110
Top in this sector
Fund name1 Year
Baillie Giff Shin Nippon PLC49.1%
Atlantis Japan Growth41.9%
Fidelity Jap Val Plc41%
JPM Jap SmCos Tr32%
...more in IT Japanese Smaller Companies

Performance snapshot

Holdings snapshot

  • Japan99%
    Money Market1%
  • Information Technology30%
    Industrials22.7%
    Consumer Discretionary20.8%
    Health Care15.8%
    Consumer Staples4.7%
  • Others98.3%
    Money Market1.7%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-3.1%1.5%22.5%49.1%136.9%226%
Sector-1.8%-2.8%14.4%41.4%82%131.2%
Rank within sector3 / 41 / 41 / 41 / 41 / 41 / 4
Quartile3rd1st1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund5.4%53.8%24.5%49.9%-0.1%
Sector1.4%53.2%11.2%27%0.2%
Rank within sector1 / 41 / 41 / 41 / 44 / 4
Quartile1st1st1st1st4th
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
10.67
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.11
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.69
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
20.33
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
12.73
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.94
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.6
Price movement
52 week high984
52 week low629
Current bid price936
Current offer price940
Current mid price938
Region
1Japan99%
2Money Market1%
Industry sector
1Information Technology30%
2Industrials22.7%
3Consumer Discretionary20.8%
4Health Care15.8%
5Consumer Staples4.7%
6Real Estate3.6%
7Financials1.4%
8Money Market1%
Asset type
1Others98.3%
2Money Market1.7%
Individual holdings
1ISTYLE INC3.6%
2OUTSOURCING INC3%
3MONOTARO CO.LTD2.9%
4NIHON M&A CENTER INC2.9%
5PEPTIDREAM INC2.7%
6ASAHI INTECC CO LTD2.6%
7YUME NO MACHI SOUZOU IINKAI2.5%
8CYBERAGENT INC2.4%
9MEGACHIPS CORP2.4%
Management
Fund manager group
Baillie Gifford
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund objective
The Trust aims to achieve long-term capital growth principally through investment in small Japanese companies which are believed to have above average prospects for capital growth.
Benchmark
  • MSCI Japan Small Cap
Investment style
No data available.
Investment method
No data available.
Fund managers
NameSinceBiography
Praveen Kumar01/12/2015Praveen graduated BEng in Computer Science from Bangalore University in 2001, and an MBA in Finance from the University of Cambridge in 2008. He previously worked for FKI Logistex before joining Baillie Gifford in 2008. After completing the investment graduate trainee programme Praveen joined the Japanese Equity Team as an Investment Manager in 2011.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
Baillie Gifford Shin Nippon PLC
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price858.2
CurrencyGBX
Price updated18/04/2018
Type-
Institutional or retail classRetail
Domicile-
Citi codeNJDO
Data provided by

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