Baillie Gifford Japan Trust
The aim of this investment trust is long-term capital growth through investments in medium- to smaller-sized Japanese companies, which the manager believes have above average prospects.
Launched in 1981, the trust is currently managed by Sarah Whitley at Baillie Gifford.
The portfolio generally holds between 40 and 70 companies, with the managers taking a three- to five-year view and focusing on companies that offer good growth opportunities.
According to its factsheet: “Growth may come from innovative business models, disrupting traditional Japanese practices or market opportunities, such as growth from overseas.”
A further feature of the investment process is that no holding shall exceed 5 per cent of the portfolio at the time of purchase, and those that exceed this limit through strong performances are “subject to particular scrutiny”.
The performance of this trust has been fairly consistent over three, five and 10 years, with a 10-year share price total return of 108.14 per cent. It has outperformed the AIC IT Japan Equities sector, delivering a share price total return of 105.15 per cent over five years to October 15, against the sector’s 70.95 per cent. By comparison, its benchmark Topix generated a total return of 30.43 per cent over the same period.
What the judges say
In a difficult market, this is a reliable, stable fund that investors can depend on.
Club members
CF Morant Wright Nippon Yield
JPMorgan Japanese Investment Trust
M&G Japan
Schroder Japan Growth
In numbers
£294.96m
Total assets
149.9%
Five-year actual return
1.20%
Ongoing charges
