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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You can invest in this strategy through the following fund(s).
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Strategy portfolio holdings
A list of the top 10 holdings that the representative portfolio invests in.
All figures up to: 28 February 2025
| # | Holding | % of portfolio |
|---|---|---|
| 1 | Sony | 6.7% |
| 2 | SoftBank Group | 5.4% |
| 3 | SBI Holdings | 4.5% |
| 4 | Sumitomo Mitsui Trust | 4.2% |
| 5 | Recruit Holdings | 3.9% |
| 6 | Keyence | 3.8% |
| 7 | MS&AD Insurance | 3.5% |
| 8 | Rakuten | 3.2% |
| 9 | Nintendo | 3.1% |
| 10 | Murata Manufacturing | 2.9% |
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.
Invest in this strategy
You can invest in this strategy through the following fund(s).
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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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Japanese changemakers shaping the future
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.
Japan Growth Q3 update
The Japan Growth Team reflects on recent performance, portfolio changes and market developments.
Future Stocks: Our best ideas in Japan
Thomas Patchett uncovers 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.
Japanese Equities Q2 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.
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.
Japanese Equities Q1 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.
Invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
How to invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
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The information provided does not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. Any general enquiries regarding Baillie Gifford should be directed to the relevant individual as noted in the Contact Us section.
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