Overview
Fund objective
The Japanese Smaller Companies Fund aims to outperform (after deduction of costs) the MSCI Japan Small Cap Index, as stated in sterling, over rolling five-year periods.
The manager believes this is an appropriate target given the investment policy of the Fund and the approach taken by the manager when investing. In addition, the manager believes an appropriate performance comparison for this Fund is the Investment Association Japan Sector.
There is no guarantee that this objective will be achieved over any time period and actual investment returns may differ from this objective, particularly over shorter time periods.
Investment proposition
Share price and charges
Share class
B, IncPrice
3359.00p% change
-1.67%Yield
0.8%Ex-dividend (XD)
NOngoing charges*
0.66%Initial charge
0%Minimum investment
£100,000Minimum top up
£1,000Fund facts
Fund launch date
1 April 1983
Fund size
£124.70m
The Investment Association sector
Japan
Comparative Index
MSCI Japan Small Cap Index (in sterling)
Active share
97%**
Annual turnover
17%
Guideline number of holdings
40-80
Current number of holdings
60
Style
Growth
XD Date
Last day of April each year
Distribution
Last day of June each year
Pricing
Valuation point 10am daily, swinging single price
Fund settlement cycle
Trade date plus three business days (T+3)
For information on the benchmark index, including the market capitalisation of the largest company in the index, please see here.
**Relative to MSCI Japan Small Cap Index (in sterling). Source: Baillie Gifford & Co, MSCI.
Meet the managers
Risk Warnings
Risk Introduction
Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested. The specific risks associated with the Fund include:
Market Conditions/Liquidity
Any value assigned to illiquid securities which are difficult to trade, such as those in smaller companies, may not accurately reflect the price the Fund might receive upon their sale.
Custody
Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.
Smaller Companies
Investment in smaller companies is generally considered higher risk as the market for their shares may be less liquid and more difficult to trade than that for larger companies. As a result, share price fluctuations may be greater. In addition, smaller companies may not do so well in periods of adverse economic conditions. Where such companies have business models and competitive positions which are less well established, this could result in an increased likelihood of loss for investors.
Single Country
The Fund's exposure to a single market and currency may increase share price movements.
Foreign Currency
The Fund has exposure to a foreign currency and changes in the rate of exchange will cause the value of any investment, and income from it, to fall as well as rise and you may not get back the amount invested.
Volatility
The Fund's share price can be volatile due to movements in the prices of the underlying holdings and the basis on which the Fund is priced.
Further Information
Further details of the risks associated with investing in the Fund can be found in the Key Investor Information Document or the Prospectus, copies of which are available at bailliegifford.com.
Index disclaimer
Fund performance
Periodic performance
As at: 28 February 2026
1 Month | 3 Months | 6 Months | 1 Year | 3 Years | 5 Years | |
|---|---|---|---|---|---|---|
Class B-Acc | 12.3% | 12.6% | 8.7% | 20.3% | -1.0% | -7.2% |
Index* | 13.3% | 16.2% | 21.4% | 40.2% | 17.4% | 10.3% |
Sector Average** | 11.5% | 14.2% | 21.6% | 34.8% | 17.3% | 9.4% |
Sector Ranking | 27/106 | 83/105 | 102/105 | 98/105 | 97/97 | 94/94 |
Figures for 3 and 5 years are shown as the annualised rate of return. This is the average yearly return over the specified period.
Annual discrete performance
As at: 31 December 2025
31/12/2020 – 31/12/2021 | 31/12/2021 – 31/12/2022 | 31/12/2022 – 31/12/2023 | 31/12/2023 – 31/12/2024 | 31/12/2024 – 31/12/2025 | |
|---|---|---|---|---|---|
Class B-Acc | -14.9% | -20.3% | -11.3% | -9.9% | 5.6% |
Index* | -1.0% | -0.6% | 7.4% | 6.7% | 20.4% |
Sector Average** | 1.8% | -8.1% | 11.6% | 8.7% | 17.4% |
Fund portfolio holdings
The list of top 10 holdings that this fund invests in.
As at: 28 February 2026
| # | Holding | % of total assets |
|---|---|---|
| 1 | Tsugami | 4.6% |
| 2 | RakSul | 3.7% |
| 3 | JEOL | 3.7% |
| 4 | Kohoku Kogyo | 3.4% |
| 5 | SWCC Corporation | 3.3% |
| 6 | Harmonic Drive Systems | 3.3% |
| 7 | GA Technologies | 3.1% |
| 8 | Yonex | 3.0% |
| 9 | Gift Holdings Inc | 2.8% |
| 10 | KATITAS | 2.7% |
Sector
As at: 28 February 2026
# | Sector | Fund % | Index % * | Difference % |
|---|---|---|---|---|
| 1 | Industrials | 29.4 | 25.7 | 3.7 |
| 2 | Information Technology | 18.8 | 11.9 | 6.9 |
| 3 | Consumer Discretionary | 18.4 | 14.7 | 3.7 |
| 4 | Communication Services | 9.1 | 2.5 | 6.6 |
| 5 | Health Care | 8.5 | 3.9 | 4.5 |
| 6 | Financials | 8.2 | 9.9 | -1.7 |
| 7 | Real Estate | 4.0 | 8.2 | -4.2 |
| 8 | Consumer Staples | 3.6 | 7.6 | -4.0 |
| 9 | Materials | 2.4 | 12.4 | -10.0 |
| 10 | Cash | -2.3 | 0.0 | -2.3 |
Total | 100.0 | 96.7 |
Quarterly transactions
Transactions for the three-month period ending 31 March 2026
New purchases
- Seiko Holdings Corp
Complete sales
- Inforich Inc
Insights
Key articles, videos and podcasts relating to the fund:
Filters
Insights
Japan small caps: obsession meets opportunity
From AI-augmented weather forecasts to helping people with disabilities get hired, meet Japan’s growth companies.
Healthy returns: Japan’s assault on old-age disease
Japanese medical firms are making advances that could help fight cancer and Alzheimer’s.
SWCC Showa: rewiring Japan
How an ultra-traditional Japanese engineering firm became key to Japan’s power overhaul.
Japan Smaller Companies: manager update
Japanese Smaller Companies and Shin Nippon’s performance, portfolio positioning and the region’s attractions for growth investors.
China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.
The fresh face of Japanese finance
New online services are transforming Japanese financial habits.
Spotting the stars amid a surge
Rising Japanese markets are flattering old-style companies: better to look for long-term growth.
Japan’s new growth opportunities
Seeking the entrepreneurial firms that could sustain the country’s rally.
Japanese Smaller Companies Fund and Shin Nippon PLC – Manager Insights.
Praveen Kumar, investment manager of Japanese Smaller Companies Fund and Baillie Gifford Shin Nippon PLC, explains how Covid-19 will accelerate changes in the behaviour and working practices of corporate Japan and why this should result in numerous growth opportunities for fast-growing, nimble and disruptive smaller business.
Dominators vs disrupters - the future of industrial robotics
The big four incumbents in robotics are gearing up for a challenge. In a reshaping global industry, they are readying themselves for the march of the cobots.
Japan small caps: obsession meets opportunity
From AI-augmented weather forecasts to helping people with disabilities get hired, meet Japan’s growth companies.Healthy returns: Japan’s assault on old-age disease
Japanese medical firms are making advances that could help fight cancer and Alzheimer’s.SWCC Showa: rewiring Japan
How an ultra-traditional Japanese engineering firm became key to Japan’s power overhaul.Japan Smaller Companies: manager update
Japanese Smaller Companies and Shin Nippon’s performance, portfolio positioning and the region’s attractions for growth investors.China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.The fresh face of Japanese finance
New online services are transforming Japanese financial habits.Spotting the stars amid a surge
Rising Japanese markets are flattering old-style companies: better to look for long-term growth.Japan’s new growth opportunities
Seeking the entrepreneurial firms that could sustain the country’s rally.Japanese Smaller Companies Fund and Shin Nippon PLC – Manager Insights.
Praveen Kumar, investment manager of Japanese Smaller Companies Fund and Baillie Gifford Shin Nippon PLC, explains how Covid-19 will accelerate changes in the behaviour and working practices of corporate Japan and why this should result in numerous growth opportunities for fast-growing, nimble and disruptive smaller business.Dominators vs disrupters - the future of industrial robotics
The big four incumbents in robotics are gearing up for a challenge. In a reshaping global industry, they are readying themselves for the march of the cobots.
How to invest
You can invest in our funds via a number of fund platforms.
Please note that we do not have the facility for you to invest directly with us in our Investment Trusts and we do not offer ISAs, SIPPS or Share Plans.
Please also note that we do not have an online service for individual investors.
Further information on our funds can be found in the relevant Key Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request.
Baillie Gifford does not sponsor, maintain or have any control over the content of any other websites. Therefore, we are not responsible for the adequacy or accuracy of any of the information you may view, nor do we undertake to ensure successful transmission to any linked website.
Investment platforms
Getting financial advice
At Baillie Gifford we don’t provide financial advice, but we do try our best to provide you with all the information we think you might need to make investment decisions. Of course, we realise there are occasions when you may want the advice of an expert.
Using professional financial advice
An authorised intermediary can give you advice and help on how best to manage your financial affairs based on your circumstances and investment aspirations. They can also help keep track of all your different investment interests, saving you a lot of time and bookkeeping.
Finding a financial adviser near you
If you want to use an authorised intermediary, Unbiased is a website that allows you to search for authorised intermediaries in your area. You can visit their site on www.unbiased.co.uk
Documents
You can access any literature about the Fund here.
To download any document you will need Adobe Reader. Please note that we can now provide you with Braille and audio transcriptions of our literature on request. It may take up to 10 days for the transcription to be completed dependent on the size of the document.