Fact sheet: Baillie Gifford Japan 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 Japan Equities
Fund type
Investment Trust
Primary aim
GROWTH
Why Money Observer Rates Baillie Gifford Japan IT

Rated Fund 2015-2017. Finding growth with a safe pair of hands

This trust won Money Observer's Best Japan Trust award in 2015 and was highly commended in 2016. Launched in 1981, it is the longest-established Japanese investment trust in the UK. It is managed by the very experienced Sarah Whitley, who heads Baillie Gifford's Japanese team.

The team visits the country regularly and conducts around 500 company meetings a year. The trust invests predominantly in small and medium-sized Japanese companies and holdings are purchased on a three-to-five-year time horizon. A spread of risk is achieved by diversifying the portfolio through investment in 40 to 70 holdings.

Whitley groups the portfolio's holdings into four different styles of growth, each of which she believes offers different risks and opportunities. Secular growth, the largest part of the portfolio, includes companies that she feels have an opportunity to grow rapidly but where there are a number of potential outcomes.

Growth stalwarts are companies where growth is less rapid but more predictable, whilst those categorised as special situations are companies whose recent performance has not been good but where she sees a reason to believe that improvements are underway. The cyclical growth stocks are those whose earnings do not rise every year but where she expects the earnings to be higher from one cycle to the next.

While many commentators are disappointed that so-called Abenomics has not achieved its target of stimulating rapid growth in the Japanese economy, Whitley is more confident. She believes there is a more positive investment environment for many of the growth companies in her portfolio.

3 Year Performance
Fund Performance121.9%
Average of Rated Funds Group121.3%
Sector Performance88.6%
Fund information
Fund name
Baillie Gifford Japan Trust PLC
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund managers
  • Sarah Whitleysince 01/01/1991
Accolades
Highly commended - Best Large Trust 
Winner - Regular savings Developed Markets
Fund objective
This trust aims to pursue long-term capital growth principally through investment in medium to smaller sized Japanese companies which are believed to have above average prospects for growth.
Benchmark
  • Topix
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
44%
1 Year rank in sector
1/5
Sector
IT Japan Equities
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.
0.8%
Fund size
£708m
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.
157
Mid price
812
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.
762.51
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.
+6.49
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
Baillie Gifford Jap Tst PLC44%
CC JpnIncGthTsPLC33.8%
JP Morgan Japanese IT plc33.6%
Aberdeen Japan IT PLC25.1%
Schroder Japan Growth plc21.7%
...more in IT Japan Equities

Performance snapshot

Holdings snapshot

  • Japan99.1%
    Money Market0.9%
  • Services23.7%
    Electronic & Electrical Equipment20.8%
    Manufacturing17.1%
    Telecommunications Utilities10.8%
    Financials7.9%
  • Japanese Equities93.7%
    Property Shares5.4%
    Money Market0.9%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund0.7%16.1%17.8%44%121.9%304.2%
Sector1.2%13.8%13.7%32.2%88.6%216.9%
Rank within sector3 / 52 / 51 / 51 / 51 / 41 / 4
Quartile3rd2nd1st1st1st1st
Calendar performance
 YTD - 20172016201520142013
Fund45%18.4%25.5%0.8%78.3%
Sector29.8%16.2%19.3%7.7%56.4%
Rank within sector1 / 52 / 52 / 43 / 41 / 4
Quartile1st2nd2nd3rd1st
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.
7.93
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.
0.94
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.
1.85
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%.
14.58
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.
6.26
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.
1.03
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.
0.81
Price movement
52 week high840
52 week low560
Current bid price807.5
Current offer price812
Current mid price812
Region
1Japan99.1%
2Money Market0.9%
Industry sector
1Services23.7%
2Electronic & Electrical Equipment20.8%
3Manufacturing17.1%
4Telecommunications Utilities10.8%
5Financials7.9%
6Retail6.2%
7Real Estate & Construction5.4%
8Chemicals5.3%
9Pharmaceuticals1.9%
Asset type
1Japanese Equities93.7%
2Property Shares5.4%
3Money Market0.9%
Individual holdings
1SOFTBANK GROUP CORP4.2%
2YASKAWA ELECTRIC CORP3.4%
3TEMP HOLDINGS CO LTD2.9%
4IRISO ELECTRONICS CO2.7%
5MISUMI GROUP INC2.7%
6OUTSOURCING INC2.5%
7FANUC CORP2.4%
8START TODAY CO LTD2.4%
9SYSMEX CORP2.4%
Management
Fund manager group
Baillie Gifford
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund objective
This trust aims to pursue long-term capital growth principally through investment in medium to smaller sized Japanese companies which are believed to have above average prospects for growth.
Benchmark
  • Topix
Investment style
No data available.
Investment method
No data available.
Fund managers
NameSinceBiography
Sarah Whitley01/01/1991Sarah graduated BA in Experimental Psychology from Oxford University in 1980. She joined Baillie Gifford in the same year, became a member of the Japanese team in 1982 and head of the department in 2001. Sarah is the longest standing partner within the firm, having been appointed in 1986. She is the co-manager for the Japanese All Cap and Japan Growth strategies, and is also the lead manager for the Japan Investment Trust. Sarah is also a member of the EAFE Alpha Portfolio Construction Group.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
Baillie Gifford Japan Trust 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 price760.95
CurrencyGBX
Price updated13/12/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJEW
Data provided by

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