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 2015-2017. Looking to the next generation of company entrepreneurs

Shin Nippon, which means New Japan, invests in small companies that are thought too small, or trading in the shares too illiquid, for its sister trust, Baillie Gifford Japan. Shin Nippon has been managed by Praveen Kumar since December 2015.

Kumar has been a member of Baillie Gifford's Japan equities team since 2011 and worked closely with the previous manager, the muchrespected John MacDougall, under whom this trust was a regular winner of Money Observer's Best Japan Trust award in recent years. As Baillie Gifford's investment style is team-based, we believe the trust is still being run much as before.

Kumar defines his investment universe as companies with either market capitalisations or revenues of less than ¥150 billion (around £1 billion) at the time of investment.

The types of business he favours are those that he believes have above-average growth prospects and strong, entrepreneurial management teams. The focus is on investing in 'the most dynamic and innovative smaller businesses' that are emerging in Japan.

He points out that the majority of Shin Nippon's holdings are managed by younger, more progressive management than is typical in Japan. Among the strongest performers in the portfolio during 2016 were several of its long-term, internet-related holdings that focus on rapidly expanding domestic niche markets.

Kumar is optimistic that the range of investment opportunities for the trust is continuing to broaden out, that the environment for new company listings continues to be healthy and government policy remains supportive.

3 Year Performance
Fund Performance128.4%
Average of Rated Funds Group92%
Sector Performance75.8%
Fund information
Fund name
Baillie Gifford Shin Nippon PLC
Fund manager company
Baillie Gifford & Company
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
30.3%
1 Year rank in sector
2/4
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.
1.53%
Fund size
£316m
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.
196
Mid price
736
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.
695.79
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.
+5.78
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.
111
Top in this sector
Fund name1 Year
Atlantis Japan Growth32.5%
Baillie Giff Shin Nippon PLC30.3%
Fidelity Jap Val Plc29.1%
JPM Jap SmCos Tr23%
...more in IT Japanese Smaller Companies

Performance snapshot

Holdings snapshot

  • Japan98.7%
    Money Market1.3%
  • Information Technology27%
    Consumer Discretionary26.2%
    Industrials24.1%
    Health Care12.3%
    Consumer Staples5.3%
  • Others98.7%
    Money Market1.3%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund0.5%4.3%14.5%30.3%128.4%286.4%
Sector1.3%3%11.9%30.1%75.8%167.2%
Rank within sector3 / 42 / 43 / 42 / 41 / 41 / 4
Quartile3rd2nd3rd2nd1st1st
Calendar performance
 YTD - 20172016201520142013
Fund27.2%24.5%49.9%-0.1%55.5%
Sector29%11.2%27%0.2%38%
Rank within sector2 / 41 / 41 / 44 / 41 / 4
Quartile2nd1st1st4th1st
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.
9.12
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.
1.06
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.
1.44
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%.
20.27
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.
13.09
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.
0.71
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.
0.57
Price movement
52 week high762
52 week low545
Current bid price732
Current offer price740
Current mid price736
Region
1Japan98.7%
2Money Market1.3%
Industry sector
1Information Technology27%
2Consumer Discretionary26.2%
3Industrials24.1%
4Health Care12.3%
5Consumer Staples5.3%
6Real Estate1.9%
7Financials1.5%
8Money Market1.3%
9Telecommunications Utilities0.4%
Asset type
1Others98.7%
2Money Market1.3%
Individual holdings
1YUME NO MACHI SOUZOU IINKAI3.4%
2START TODAY CO LTD3.1%
3NIHON M&A CENTER INC2.8%
4OUTSOURCING INC2.8%
5SERIA CO2.7%
6MONOTARO CO.LTD2.6%
7ASAHI INTECC CO LTD2.5%
8CYBERAGENT INC2.4%
9GMO PAYMENT GATEWAY INC2.4%
Management
Fund manager group
Baillie Gifford
Fund manager company
Baillie Gifford & Company
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 price696.4
CurrencyGBX
Price updated20/09/2017
Type-
Institutional or retail classRetail
Domicile-
Citi codeNJDO
Data provided by

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