Baillie Gifford Japanese Fund ClassB Inc

Why we like the fund: Baillie Gifford is an experienced 'growth' investor, but with a key differentiator. Like other growth investors, it invests in companies with higher-than-average growth rates, but it is more aggressive in pursuing this goal. The manager looks for a handful of mould-breaking companies that will disrupt an industry and eventually become long-term winners. This fund is run by an experienced manager, who is backed by a strong team. We believe this is important, as it can be a difficult investment approach to get right. As a firm, Baillie Gifford takes a very long-term view and the employee-owned business structure is supportive of this style of investing. How to use the fund: This fund invests in companies with excellent promise and potential for high future earnings. The market tends to value such companies quite highly. By contrast, 'value' investors, like the Schroder Japan Trust, seek companies with a depressed share price reflecting the market's belief that their prospects are less attractive. This fund should blend well with the Schroder Japan Trust and could form part of the riskier allocations in a diversified portfolio.