Managed by Matthew Brett, Baillie Gifford Japanese Income will seek out quality Japanese businesses that promise dividend increases alongside long-term share price growth.

Brett, who also co-manages the £937 million Baillie Gifford Japanese fund, aims to tap into on an ongoing shift in the attitudes of Japanese corporates towards shareholder returns.

The fund, which currently has a yield of 2.5 per cent, will carry a management fee of 65 basis points on its ‘B’ share class.

However, Baillie Gifford is offering an ‘early bird’ deal in which investments made during the three months into the ‘Y’ share class following the fund’s inception will qualify for an ongoing charge of 25 bps over the subsequent 12 months, reverting back to 0.65 per cent thereafter.

Mr Brett said: “We believe that our focus on companies with good growth prospects and strong balance sheets gives the best opportunity for dividend growth over the medium term. Our new fund aims to generate strong long-term total returns as well as provide investors with a higher yield than the Japanese market.”