Baillie Gifford Japan Trust PLC

Japanese Equities

Rated Fund 2015-2018. Run by renowned Japanese equities team

This trust won Money Observer's Best Japan Trust award in 2015 and was highly commended in 2016 and 2017. Sarah Whitley, Baillie Gifford's longest-serving partner, has helped manage the trust since 1991. She will retire in April 2018.

She has led the trust during a period in which the country struggled with the collapse of a property bubble and enduring deflation, and has massively outperformed Japan's Topix stock market index. Her long-term performance is also streets ahead of rivals.

On the basis that Whitley has successfully mentored new talent within her team over the years, we are keeping faith with this trust. Matthew Brett, her deputy on the trust, will become its lead manager, with Praveen Kumar, manager of the smaller company Baillie Gifford Shin Nippon, supporting him as the second manager.

The trust invests in 40 to 70 companies, predominantly medium and smaller-sized, and holdings are purchased on a three- to five-year time horizon. The team is based in Edinburgh but visits Japan regularly and conducts around 500 company meetings a year. The managers' confidence in the Japanese stock market at the end of 2017 was highlighted in their full use of a 12 per cent gearing facility.

In Baillie Gifford Japan, investors can get access to Baillie Gifford's Japan desk, recognised as one of the best in the business. However, shares in the trust traded at a premium to net asset value for most of 2017. The board can issue shares to help reduce the premium and the shares have traded close to par at times, so investors should time their entry carefully.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
Baillie Gifford Japan Trust PLC
Manager
Baillie Gifford & Co Limited.
Type
Closed Ended Investment Company
ISIN
GB0000485838
Sector
Japan
Launched
01/12/1981
OCF
0.78 %
Risk Rating
4
3 Year Sharpe
1.44
3 Year Alpha
8.00
Yield
0 %
Benchmark
TOPIX TR JPY
Fund Size
£ 764.37 million
NAV
825
Gearing
112
Discount Premium
3
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, although it invests in larger companies when considered appropriate. The Company’s holdings are generally listed in Japan although the portfolio can also include companies listed elsewhere whose business is predominantly in Japan as well as unlisted companies. Fixed interest holdings, or non-equity investments, may be held. The portfolio is constructed through the identification of individual companies which offer long term growth potential, typically over a three to five-year horizon. The portfolio is actively managed and does not seek to track the benchmark; hence a degree of volatility against the index is inevitable.
Holding %
SoftBank Group Corp 3.68 %
YASKAWA Electric Corp 3.24 %
OUTSOURCING Inc 3.04 %
SBI Holdings Inc 2.91 %
Iriso Electronics Co Ltd 2.62 %
Persol Holdings Co Ltd 2.42 %
MISUMI Group Inc 2.34 %
Sysmex Corp 2.33 %
Nidec Corp 2.21 %
Fanuc Corp 2.16 %
Region %
Japan 100.00 %
Sector %
Technology 26.26 %
Industrials 21.52 %
Consumer Cyclical 17.24 %
Financial Services 8.30 %
Communication Services 6.25 %
Healthcare 5.75 %
Real Estate 5.69 %
Name
Baillie Gifford & Co Limited.
Address
EH1 3AN, Edinburgh, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Matthew Brett
Joined 04/30/2018

Matthew graduated BA (Hons) in Natural Sciences (Psychology) from the University of Cambridge in 2000 and holds a PhD in Psychology from Bristol University. He joined Baillie Gifford in 2003 and is an Investment Manager in the Japanese Equity Team. Matthew is a co-manager of the Japanese All cap strategy and is a CFA Charterholder.

Matthew Brett
Joined 04/30/2018

Matthew graduated BA (Hons) in Natural Sciences (Psychology) from the University of Cambridge in 2000 and holds a PhD in Psychology from Bristol University. He joined Baillie Gifford in 2003 and is an Investment Manager in the Japanese Equity Team. Matthew is a co-manager of the Japanese All cap strategy and is a CFA Charterholder.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.