Growth bias continues to weigh on performance at Baillie Gifford Japan

Fee structure overhaul

Baillie Gifford Japan (BGFD) continued to underperform its benchmark in the year ending August 2024, as growth stocks fell out of favour and its mid-cap bias negatively affected performance.

In its final results published today (29 October), BGFD reported its net asset value total return was up 10% over the year, compared to 14.7% total returns for the TOPIX index. The latest results for the trust, which divides its portfolio among four key themes — secular growth, growth stalwarts, special situations and cyclical growth — reflect a prolonged period of underperformance over the past five years. During this time, the strategy's NAV has consistently lagged behind its benchmark at 0.4% growth compared to TOPIX's 25.8% advance. However, with a period of controlled inflatio...