Capital at risk
Japan Income Growth
Japan offers the unexpected. Global leading manufacturers, premium Asian brands and emerging digital disruptors. We search for opportunities with the potential to provide great shareholder returns.
Backing businesses, not the economy
By focusing on the fundamentals, we aim to uncover Japan’s mispriced and often under-appreciated opportunities in the hope of providing our clients with great returns.
Japanese Equities: our philosophy
Investment manager Donald Farquharson introduces Japanese Equities, reflecting on the exciting opportunities ahead.
Searching for Japan’s finest
Japan Income Growth embraces a distinctly long-term approach to deliver total return. We aim to outperform the Topix benchmark by 1.5 per cent per annum over rolling five-year periods with an above-market yield.
Our portfolio contains 45-65 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 with the aim of capturing the full benefits of compounded growth.
Patient pursuit of opportunities
Our high-conviction portfolio is constructed from the bottom up, based on long-term earnings growth potential.
We aim to capture growth in all forms – from secular opportunities in emerging digital disruptors to the enduring growth of stalwart franchises to special situations of corporate reform.
The patience and insight with which we pursue this broad base of potential is a product of our pedigree. Having launched specialist mandates in the 1980s, we’re one of the few who’ve been doing this for over 40 years.
A history of hoarding cash points to an exciting future, where cash-rich growth companies begin to return excess capital to investors – at no expense to their own growth prospects.
Meet the managers
Documents
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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Curious to learn more about our products and what we can offer you? Please get in touch.
Strategy portfolio holdings
A list of the top 10 holdings that the representative portfolio invests in.
All figures up to: 31 October 2024
| # | Holding | % of portfolio |
|---|---|---|
| 1 | GMO Internet | 4.4% |
| 2 | SoftBank Group | 4.4% |
| 3 | Tokio Marine Holdings Inc | 3.9% |
| 4 | MS&AD Insurance | 3.8% |
| 5 | Sumitomo Mitsui Trust | 3.7% |
| 6 | SBI Holdings | 3.6% |
| 7 | PARK24 | 2.7% |
| 8 | Calbee | 2.7% |
| 9 | DMG Mori | 2.5% |
| 10 | Nintendo | 2.5% |
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.
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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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Insights
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.
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.
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.
The fresh face of Japanese finance
New online services are transforming Japanese financial habits.
Japanese Equities Q4 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.
Stock story: SoftBank
Matthew Brett discusses SoftBank and considers Japan’s exciting technological future.
Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
Spotting the stars amid a surge
Rising Japanese markets are flattering old-style companies: better to look for long-term growth.
Japan’s new growth opportunities
Seeking the entrepreneurial firms that could sustain the country’s rally.
Japanese Equities Q3 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.
Japanese Equities
Investment manager, Donald Farquharson, discusses the Baillie Gifford approach to Japanese Equities.
Japan’s place in the chip market
The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.
Dominators vs disrupters - the future of industrial robotics
The big four incumbents in robotics are gearing up for a challenge. In a reshaping global industry, they are readying themselves for the march of the cobots.
Japanese changemakers shaping the future
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.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.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.The fresh face of Japanese finance
New online services are transforming Japanese financial habits.Japanese Equities Q4 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.Stock story: SoftBank
Matthew Brett discusses SoftBank and considers Japan’s exciting technological future.Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.Spotting the stars amid a surge
Rising Japanese markets are flattering old-style companies: better to look for long-term growth.Japan’s new growth opportunities
Seeking the entrepreneurial firms that could sustain the country’s rally.Japanese Equities Q3 update
The Japanese Equities Team reflects on recent performance, portfolio changes and market developments.Japanese Equities
Investment manager, Donald Farquharson, discusses the Baillie Gifford approach to Japanese Equities.Japan’s place in the chip market
The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.Dominators vs disrupters - the future of industrial robotics
The big four incumbents in robotics are gearing up for a challenge. In a reshaping global industry, they are readying themselves for the march of the cobots.
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
The information on this website is intended for institutional investors and accredited investors (as defined in the Securities and Futures Act, Chapter 289 of Singapore, as amended) and consultants in Singapore only. It is not intended for use by any other persons including members of the general public or investors from other jurisdictions.
The information contained in this website has been compiled with considerable care to ensure its accuracy at the date of publication. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Nothing in this information or elsewhere in this website shall exclude, limit or restrict our duties and liabilities to you the United Kingdom's Financial Services and Markets Act 2000 or any conduct of business rules which we are bound to comply with. These Terms and any non-contractual obligations arising from or connected with them shall be governed by, and these Terms shall be construed in accordance with, the laws of Singapore.
Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK clients. Both are authorised and regulated by the Financial Conduct Authority.
Baillie Gifford Asia (Singapore) Private Limited is wholly owned by Baillie Gifford Overseas Limited and holds a Capital Markets Services Licence from the Monetary Authority of Singapore to conduct fund management activities for institutional investors and accredited investors in Singapore. Baillie Gifford Asia (Singapore) Private Limited can be contacted at Singapore Land Tower, Level 46, Unit 4616-17, 50 Raffles Place, Singapore 048624.
This website is informative only and the information provided should not be considered as investment or other advice or a recommendation or offer to buy, sell or hold a particular investment. You can read details of our Legal and Important Information here.