Baillie Gifford, the Edinburgh based investment management partnership, has added to its Japanese product range with the launch of the Baillie Gifford Japanese Income Growth Fund.
For decades the Baillie Gifford Japanese Equities team has invested successfully in a range of good quality businesses with strong prospects for earnings growth, holding onto them in the expectation that over time their share prices will reflect their positive fundamentals. The same proven process is being applied to the new Baillie Gifford Japanese Income Growth Fund, which identifies attractive investments and constructs a portfolio from these names with a bias towards income. The Fund is managed by Matthew Brett, a member of Baillie Gifford’s highly experienced Japanese Equities team.
The Japanese Income Growth Fund provides investors with an opportunity to benefit from a widespread secular change in corporate attitudes to shareholder returns in the Japanese market. The Fund has a portfolio currently yielding 2.5%, with significant long-term growth potential.
Matthew Brett, manager, says: “We believe that our focus on companies with good growth prospects and strong balance sheets gives the best opportunity for dividend growth over the medium term. We are seeing improving attitudes to corporate governance in Japan. Shareholder pay outs are increasing and there is scope for this trend to continue for many years. Our new fund aims to generate strong long-term total returns as well as provide investors with a higher yield than the Japanese market.”
Early investors to the Fund during the first three months of inception will have access to a Y share class with a management fee of 25 basis points for the first 12 months*.