Baillie Gifford Shin Nippon PLC

Baillie Gifford Shin Nippon PLC is an investment trust launched in 1985 that seeks long-term capital growth by investing primarily in small Japanese companies with above-average growth prospects. Managed by Baillie Gifford, it targets 40-80 attractively valued smaller firms offering strong opportunities through innovative models, disruption of traditional practices, or overseas expansion, benchmarked against the MSCI Japan Small Cap Index. The portfolio emphasizes high-conviction picks in sectors like industrials (25.8%), information technology (17.9%), and consumer discretionary (15.6%), with up to 10% in unlisted investments and notable gearing at around 20% gross to amplify returns. Actively managed with 97% active share and low 23% annual turnover, it maintains an ongoing charge of 0.80% and focuses on a five-year horizon rather than short-term index tracking. As the dedicated UK-listed trust for Japanese small-cap growth, it plays a unique role in providing niche exposure amid market cycles favoring or challenging small caps and growth styles.