Baillie Gifford Japan is an all cap trust which buys quality growth Japanese companies for the long term, with exceptionally low turnover. The trust has led the sector consistently since the financial crisis, thanks to a bias to small and mid caps, a tily to quality growth companies and good stock picking. The trust has also been consistently geared in recent years which has helped it in a bull market. The management team, led by Matthew Brett, looks for companies taking advantage of secular changes in Japan’s economy and society, and has long had a preference for technology, high-end engineering and internet sectors. However, the process is bottom-up, and ideas come from a wide variety of industries, always chosen for stock specific reasons. Strong performance has seen the trust trade on a premium for most of the past five years.
