Baillie Gifford Japanese
One of the oldest Japan funds in the sector, Baillie Gifford Japanese Fund has delivered outstanding returns in the most difficult market conditions. The fund is managed by a large team, based in Edinburgh, and invests in growing Japanese businesses that deliver consistently strong returns to shareholders.
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Matthew is an investment manager in the Japanese Equities Team at Baillie Gifford, where he has worked since 2003 and became a partner in 2018. He manages the Japanese Fund and related All Cap Strategy segregated accounts, the Baillie Gifford Japan Trust, and co-manages the Japanese Income Growth Fund. Matthew graduated with a BA (Hons) in Natural Sciences (Psychology) from the University of Cambridge in 2000 and holds a PhD in Psychology from the University of Bristol.
Matthew is an investment manager in the Japanese Equities Team at Baillie Gifford, where he has worked since 2003 and became a partner in 2018. He manages the Japanese Fund and related All Cap Strategy segregated accounts, the Baillie Gifford Japan Trust, and co-manages the Japanese Income Growth Fund. Matthew graduated with a BA (Hons) in Natural Sciences (Psychology) from the University of Cambridge in 2000 and holds a PhD in Psychology from the University of Bristol.
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Company Description
Founded in 1908 and employee-owned, Baillie Gifford is based in Edinburgh but has offices in London and New York. Awarded the Elite Provider for Equities Rating each year from 2015 to 2021, it specialises globally in equities, fixed income and multi-asset portfolios. The firm is owned by its senior executives and operates as a partnership.
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Quote from the Fund Manager
We are growth-orientated, stock-picking managers.
Matthew Brett
Lead Manager
Investment process
Baillie Gifford Japanese fund seeks to invest in well-managed businesses with a strong competitive advantage that are not overpriced. The research process is designed to ensure the best ideas of each individual team member are included in the portfolio. It is built around five specific factors: a company’s competitive advantage, industry, financial strength, how well it is run and its valuation. These are discussed amongst the team with Matthew having the final say on what is added to the portfolio. Being growth investors, the team have a natural bias towards medium-sized companies.
Risk
Investing in Japan can be volatile, although its stock market movements are often less correlated to developed equity markets, so can act as a diversifier. The emphasis on structural change within the portfolio should benefit from the government’s current economic strategy. The process seeks out growth-orientated companies, which can underperform should this style of investing fall out of favour.
ESG
ESG - Limited
With this fund, Matthew takes a long-term approach, looking for growth opportunities with firms that are likely to be future leaders. He believes that this long-term approach incorporates a natural bias towards sustainable business models, however this is not a formal policy of the philosophy or process. Material ESG issues that are identified in the analysis will be considered as possible reasons to not invest, but this will be on a case-by-case basis, rather than a systematic approach. There is a strong focus on governance though, with Matthew and the team having regular engagement with the management of companies already held in the fund and those of prospective holdings.
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