This report is a factsheet for the Baillie Gifford Japan investment trust. Over the year to June 2026, the fund’s net asset value (NAV, the value of its holdings per share) rose 20.1%, while Japan’s main stock index (TOPIX) gained 31.5% — a big shortfall. Over five years, the fund returned 10.3% versus 65.0% for the index. The manager buys small and mid-sized Japanese growth companies and holds them for years, but the report gives no reason for the underperformance and no details of stock trades. For ordinary investors, compare returns with a market index, and remember small-cap funds can swing sharply.
Baillie Gifford Japan Trust PLC aims to achieve long-term capital growth by investing in 40-70 Japanese small- and mid-cap growth stocks, with a typical holding period of 3-5 years. As of June 30, 2026, total assets stood at £817.87 million, with an ongoing charges ratio of 0.71%, a dividend yield o
In the 12 months ended June 30, 2026, the fund returned 20.1% on NAV, lagging the benchmark TOPIX (31.5%) by 11.4 percentage points; the report did not disclose monthly data, with the finest time granularity being the annual period ended June. Over a longer horizon, the fund's cumulative 5-year NAV return was 10.3%, sharply lagging the benchmark (65.0%), and the 10-year gap was similarly significant (127.0% vs. 157.8%).
| Measure | 1-Year | 3-Year | 5-Year | 10-Year |
|---|---|---|---|---|
| Share Price | 23.2% | 31.9% | 1.6% | 118.9% |
| NAV | 20.1% | 37.5% | 10.3% | 127.0% |
| Benchmark (TOPIX) | 31.5% | 59.5% | 65.0% | 157.8% |
Discrete annual performance (years ended June 30):
| Fiscal Year | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
|---|---|---|---|---|---|
| Share Price | -31.3% | 12.1% | -5.2% | 12.9% | 23.2% |
| NAV | -26.4% | 9.0% | 3.9% | 10.2% | 20.1% |
| Benchmark (TOPIX) | -8.4% | 12.9% | 13.5% | 6.9% | 31.5% |
The report did not disclose stock-level contribution/detraction attribution data, providing only static position weights and sector distribution. The top ten holdings collectively account for 35.4% of assets, with the largest single position, SoftBank Group, at 6.3%; the electrical & electronics and information & communications sectors together account for approximately one-third of assets.
| Holding | % of Assets |
|---|---|
| SoftBank Group | 6.3% |
| Sumitomo Mitsui Trust | 4.2% |
| Rakuten | 3.6% |
| Sony | 3.4% |
| FANUC | 3.4% |
| SBI Holdings | 3.3% |
| GMO Internet | 3.0% |
| CyberAgent | 2.9% |
| MISUMI | 2.8% |
| SMC | 2.5% |
| Total | 35.4% |
| Sector | % of Assets |
|---|---|
| Electrical & Electronics | 16.9% |
| Information & Communication / Utilities | 16.6% |
| Commerce & Services | 15.4% |
| Manufacturing & Machinery | 14.9% |
| Financials | 8.9% |
| Chemicals & Other Materials | 8.8% |
| Pharmaceuticals & Food | 5.4% |
| Retail | 5.2% |
| Net Current Assets | 5.2% |
| Real Estate & Construction | 1.8% |
| Consumer Staples | 1.0% |
The investment thesis section offered no directional market view, merely reiterating the strategy's positioning: focusing on 40–70 Japanese small/mid-cap companies with "above-average growth prospects." The stance is not explicitly long or short, but the strategy leans long small/mid-cap growth. The report made no comment on the 11.4-percentage-point underperformance versus the benchmark over the trailing 12 months—readers should note that this material contains no explanation from the position-holder regarding the performance gap.
1. Growth sources are summarized along three paths: innovative business models, disruption of conventional Japanese business practices, and overseas market growth opportunities.
2. The stated holding period is 3–5 years, with portfolio management referencing bottom-up company research rather than the benchmark; an active share of 84% and annual turnover of 17% corroborate this style.
3. The investment thesis carries promotional elements: it makes no mention of the significant gap versus the benchmark over the past year, nor does it review the short-term setbacks suffered by the small/mid-cap style.
Position structure: total leverage of 15% and net leverage of 9% (total borrowings of £104.31m) indicate moderate leverage usage; net current assets of 5.2% provide some buffer. The report did not disclose period-over-period changes in leverage.
The report disclosed no new positions, additions, reductions, or liquidations; the only confirmable portfolio-adjustment indicators are the 17% annual turnover and 5.2% net current assets. Sector weights show the portfolio is heavily positioned in electrical & electronics (16.9%) and information & communications (16.6%), but has very limited exposure to retail (5.2%) and consumer staples (1.0%); it is not possible to determine from this report whether these weights reflect increases or decreases.
As of June 30, 2026, total assets were £817.87m, the ongoing charge was 0.71%, and the dividend yield was 1.0%; NAV was 1,077.10p, the share price was 985.00p, a discount of 8.6%. The fund is managed by partner Matt Brett under a tiered management fee (0.75% on the first £50m of net assets, 0.65% on the next £200m, and 0.55% on the remainder). The fund holds ratings from three third-party institutions: Rayner Spencer Mills Research Rated Fund, Morningstar Medalist Rating™, and FundCalibre Rated Fund.
Key risk disclosures: single-country exposure to Japan and yen exchange-rate exposure; small/mid-cap stocks may have weaker liquidity and greater volatility; leverage can amplify losses; the share price may trade at a discount or premium to NAV. The fund is positioned for long-term capital appreciation, does not seek stable annual income, and offers no capital protection.