This is a monthly update for a Baillie Gifford fund that invests in small Japanese companies. Its long-term record is weak: over the past decade the fund returned about 63%, while its benchmark index climbed about 120%; the latest one-year gain was roughly 25%, similar to the index. The manager made no market call, only reiterating a five-year horizon and stock-picking based on research, not index tracking. The top three holdings are JEOL (electron microscopes, 4.1%), Tsugami (precision machine tools, 4.1%), and Nikkiso (industrial equipment, 3.3%).
Baillie Gifford Shin Nippon PLC is an actively managed trust investing in Japanese small-cap equities. It targets long-term capital growth through a portfolio of 40–80 companies with attractive valuations, innovative business models, or overseas growth opportunities, with up to 10% permitted in unli
Rolling 1-year: NAV 25.5%, share price 26.7%, underperforming the MSCI Japan Small Cap Index (27.6%) by roughly 1–2 percentage points; however, over the 3-year, 5-year and 10-year horizons the fund still lags materially, with 10-year NAV of 62.9% versus the Index's 119.9%.
| Measure | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Fund (share price) | 26.7% | 18.1% | -29.8% | 39.3% |
| Fund (NAV) | 25.5% | 15.9% | -20.4% | 62.9% |
| MSCI Japan Small Cap Index | 27.6% | 57.6% | 58.6% | 119.9% |
| Fiscal year period (ending June) | 2021/22 | 2022/23 | 2023/24 | 2024/25 | 2025/26 |
|---|---|---|---|---|---|
| Fund (share price) | -38.3% | -0.8% | -18.0% | 9.2% | 31.2% |
| Fund (NAV) | -34.3% | 2.3% | -15.1% | 4.1% | 30.2% |
| MSCI Japan Small Cap Index | -10.4% | 8.0% | 7.5% | 13.9% | 33.2% |
All performance figures are total returns in GBP with dividends reinvested; the 5-year indexed chart starts at 100.
[No Stance Taken] This report offers no directional market view; the manager reaffirms the portfolio positioning of a five-year investment horizon and research-driven stock selection, emphasising that the trust does not track the index and focuses only on underlying holdings.
The report discloses no new positions, additions, reductions, closures or fund flows; sector exposure is concentrated in Industrials and Information Technology, with the top ten holdings accounting for 30.9% of total assets.
| Sector | Weight |
|---|---|
| Industrials | 26.4% |
| Information Technology | 20.5% |
| Consumer Discretionary | 17.5% |
| Communication Services | 9.2% |
| Financials | 8.6% |
| Health Care | 7.6% |
| Real Estate | 3.5% |
| Consumer Staples | 3.2% |
| Materials | 1.9% |
| Net current assets (cash-like) | 1.6% |
| Rank | Holding | % of Total Assets |
|---|---|---|
| 1 | JEOL | 4.1% |
| 2 | Tsugami | 4.1% |
| 3 | Nikkiso | 3.3% |
| 4 | Kohoku Kogyo | 2.9% |
| 5 | Yonex | 2.9% |
| 6 | Harmonic Drive Systems | 2.8% |
| 7 | GA Technologies | 2.8% |
| 8 | DMG Mori | 2.7% |
| 9 | Toyo Tanso | 2.7% |
| 10 | Gift Holdings Inc | 2.6% |
The report discloses only position weights; attribution contributions and buy/sell directions for individual holdings are not indicated.
Total assets £401.26m, total borrowings £51.83m (nominal basis), NAV per share 179.19 pence, share price 161.40 pence, a 9.9% discount to NAV; gross leverage 15% and net leverage 13% (AIC basis).