This factsheet covers the Baillie Gifford Japan Investment Trust's latest monthly report. The fund has trailed Japan's stock market: over one year its net asset value rose 22.9% versus the benchmark's 29.3%, and it underperformed even more over five years. The manager gives no clear market view, only reaffirming a long-term approach of investing in Japanese small and mid-sized companies with above-average growth, holding them for 3-5 years. Top holdings include SoftBank Group (5.4% of assets), Sumitomo Mitsui Trust (4.5%), and Rakuten (3.9%). The report doesn't say whether these positions were bought or sold this month.
Baillie Gifford Japan Trust focuses on investing in 40-70 Japanese small and mid-cap companies with above-average growth potential, pursuing long-term capital appreciation with a 3-5 year horizon, benchmarked against the TOPIX. As of July 31, 2026, total assets were £843.23m, borrowings £105m, fee r
The report does not disclose the July single-month return; as of July 31, 2026, the one-year NAV return was 22.9% and the share price return 25.4%, trailing the TOPIX benchmark (29.3%) by approximately 6.4 and 3.9 percentage points, respectively. The fund underperformed the benchmark across all periods, with the widest gap over five years (NAV 21.4% vs 69.3%, a shortfall of 47.9 percentage points).
| Period returns (as of 2026/7/31) | 1Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|
| Share price | 25.4% | 37.2% | 9.2% | 119.3% |
| NAV | 22.9% | 43.7% | 21.4% | 128.7% |
| TOPIX benchmark | 29.3% | 57.8% | 69.3% | 143.0% |
| NAV excess | -6.4pp | -14.1pp | -47.9pp | -14.3pp |
| Rolling years (as of June 30 each year; quarterly update) | 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% | 20.2% |
| TOPIX benchmark | -8.4% | 12.9% | 13.5% | 6.9% | 31.5% |
Of the five rolling years, the fund beat the benchmark only in 2024/25 (NAV 10.2% vs 6.9%); in the most recent year (2025/26), NAV underperformed by 11.3 percentage points, though the fund itself notes the share price return for that year remained positive (23.2%).
The report is a fixed-format factsheet with no directional commentary from the manager on market trends; it merely reiterates the structural-growth investment thesis. The positioning data is consistent with the stated "3-5 year holding" approach — high active share (Active Share 85%), low turnover (annual turnover 18%), and moderate-to-low leverage (net leverage 9%).
Stance note: [Neutral / Not stated — the report takes no directional view on the market; the following is a statement of investment style]
Positioning structure clues (static levels; the original report provides no period-over-period data): gross leverage 14%, net leverage 9% (borrowings £105m, at par value); net current assets account for 4.2%. Leverage is not high and turnover is extremely low, consistent with its long-term holding style.
The original report does not disclose this month's individual stock buys/sells or sector increases/decreases, so capital flows cannot be determined; it can only be confirmed that the top ten holdings together account for 36.0% of total assets, with sector allocation concentrated in information & communication and utilities (17.0%) and electrical equipment & electronics (16.4%).
| Rank | Holding | % of Total Assets |
|---|---|---|
| 1 | SoftBank Group | 5.4% |
| 2 | Sumitomo Mitsui Trust | 4.5% |
| 3 | Rakuten | 3.9% |
| 4 | Sony | 3.8% |
| 5 | SBI Holdings | 3.7% |
| 6 | GMO Internet | 3.5% |
| 7 | FANUC | 3.2% |
| 8 | CyberAgent | 2.8% |
| 9 | MISUMI | 2.7% |
| 10 | Keyence | 2.4% |
| Total | 36.0% |
For the ten names above, the original report discloses only their weightings, without commenting on each individually; nor does it disclose adds, trims, new positions, or closures during the month, so the direction of buying or selling is entirely unstated.
Sector allocation (as % of total assets):
| Sector | Weight |
|---|---|
| Information & Communication and Utilities | 17.0% |
| Electrical Equipment & Electronics | 16.4% |
| Manufacturing & Machinery | 15.1% |
| Business & Services | 15.0% |
| Financials | 9.6% |
| Chemicals & Other Materials | 9.2% |
| Pharmaceuticals & Food | 5.3% |
| Retail | 5.3% |
| Real Estate & Construction | 1.8% |
| Consumer Staples | 1.1% |
| Net current assets | 4.2% |
Total assets £843.23m, borrowings £105m, ongoing charge 0.71%, dividend yield 1.0%; NAV 1139.13p, share price 1036.00p, discount 9.1%.