Skip to main content

In order to access the website of Winterflood Securities Limited you must first read and accept the following terms:

This website is not directed at, or intended for distribution to or use by, any U.S. citizen, person, or entity that resides in or is located in the United States of America or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation which would subject Winterflood to any registration or licensing requirements with such jurisdiction. Services are not available to U.S. persons except where such services are permitted under SEC rule 15a6 or other relevant exemptions from SEC Broker/Dealer registration requirements.

Please note that Winterflood Securities Limited is not registered as a broker-dealer with the Securities and Exchange Commission and is not a member of Financial Industry Regulatory Authority Inc. (“FINRA”). All research reports provided on this website are being distributed directly by Winterflood Securities Limited to persons in the U.S. that qualify as “major U.S. institutional investors” in compliance with Rule 15a-6(a)(2) of the Securities Exchange Act of 1934. Accordingly, these research reports have not been prepared in compliance with FINRA requirements. Please refer to our Full Disclaimer here.

Research on this Website

Research on this website has been issued for the information of Professional Clients and Eligible Counterparties (as defined in the FCA handbook) of Winterflood Securities Ltd (“Winterflood”). The terminology used within the research reports is intended for professional investors. Research reports are not intended to provide the sole basis for any evaluation of an investment decision.

Each research report on this website must be read in conjunction with any disclaimer which forms part of it. Your attention is drawn to the date of issue of the information provided and of the opinions expressed therein. Any opinions are those of the Winterflood Investment Trust research team and are subject to change without notice and Winterflood is not under any obligation to update or keep current the information contained herein. The material on this website is based on information obtained from sources believed to be reliable but which have not been independently verified and are not guaranteed as being accurate.

Use of Cookies

For information on the cookies used on our websites, please refer to our Cookies Policy which can be accessed here.


For information on how we treat your personal data, please refer to our Privacy Notice which can be accessed here.

More information can be found in our Legal Disclaimer

If you have read and accepted the terms and conditions for use of this website please click continue
27 Mar 2024

Baillie Gifford Shin Nippon

Company Notes

Staying the Course Despite Size and Style Headwinds

Background: Baillie Gifford Shin Nippon* has been managed by Praveen Kumar since November 2015 and aims to achieve long-term capital growth from a portfolio of high-growth, small-cap Japanese companies. The Board recently introduced a performance-related tender offer for up to 15% of share capital if the fund underperforms the MSCI Japan Small Cap Index over the three years to 31 January 2027. On 25 March we met with Praveen Kumar following the publication of the fund’s annual results to 31 January 2024.

Portfolio: The portfolio contained 76 holdings at the end of January, of which four were unquoted (4% of assets vs 10% limit), while the top ten holdings accounted for 24% of the portfolio as at 29 February. The manager’s long-term approach is reflected in the fact that 55% of holdings have been in the portfolio for more than five years, and the active share is high at 95%.

Performance: Since the appointment of Praveen Kumar as manager, Baillie Gifford Shin Nippon has generated a NAV total return of +72%, underperforming the MSCI Japan Small Cap Index (+83%). This is primarily as a result of underwhelming absolute and relative returns since the end of 2021, with the fund’s high growth and small cap bias facing style headwinds.

*Denotes a corporate broking client of Winterflood Securities