Baillie Gifford launches Japanese income fund

Baillie Gifford launches Japanese income fund

Baillie Gifford has launched an income version of its Japanese equity strategy, to be managed by Matthew Brett and team.

The Baillie Gifford Japanese Income Growth fund will follow the same process as the fund house’s Japanese and Japanese Smaller Companies funds, but with an income tilt. The new fund’s current portfolio yields 2.5 per cent.

Mr Brett is currently co-manager on the £937m Japanese fund alongside Sarah Whitley.

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Baillie Gifford said there is no minimum investment for the portfolio, which has an annual management charge of 0.65 per cent. Further expenses will not exceed 0.1 per cent, the firm said.

Investors who buy within the next three months will gain access to the Y share class which will charge 0.25 per cent for the first 12 months of its existence, the fund house added.

Mr Brett said: “We believe that our focus on companies with good growth prospects and strong balance sheets gives the best opportunity for dividend growth over the medium term. Our new fund aims to generate strong long-term total returns as well as provide investors with a higher yield than the Japanese market.”