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The flow of growth: tracking how we pursue opportunity

Joe Faraday, Investment Manager

Key Points

  • The sectors that Baillie Gifford Developed EAFE All Cap Strategy's holdings come from have shifted in prominence over time
  • Healthcare and industrial technologies, for example, account for more of today’s investments than they did in 1989
  • But utilities, real estate and energy are the source of fewer pickings

Please remember that the value of an investment can fall and you may not get back the amount invested.

Over 30 years, we have sought growth wherever it exists.

We do not restrict ourselves to following a house view, buy list or chief investment officer's commands. And the holdings we select on behalf of our clients are an eclectic mix of exceptional companies.

The following graph shows how our pursuit of growth has evolved. It reveals dynamic shifts in our research as we homed in on outstanding businesses in sectors we anticipated would rise in prominence.

Industrials and telecommunications were a focus in the 1990s. Energy and miners in the mid-2000s. Consumer stocks and internet platforms in the 2010s. Today, healthcare and industrial technologies, including factory and warehouse automation, are fertile ground.

These interests reflect successive waves of growth in the global economy. But our purpose remains to identify outliers capable of delivering outperformance, not to buy into a trend.

Developed EAFE All Cap through the decades

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Risk Factors

The views expressed should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.

This communication was produced and approved in September 2022 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.

Potential for Profit and Loss

All investment strategies have the potential for profit and loss, your or your clients’ capital may be at risk. Past performance is not a guide to future returns.

Stock Examples

Any stock examples and images used in this communication are not intended to represent recommendations to buy or sell, neither is it implied that they will prove profitable in the future. It is not known whether they will feature in any future portfolio produced by us. Any individual examples will represent only a small part of the overall portfolio and are inserted purely to help illustrate our investment style.

This communication contains information on investments which does not constitute independent research. Accordingly, it is not subject to the protections afforded to independent research, but is classified as advertising under Art 68 of the Financial Services Act (‘FinSA’) and Baillie Gifford and its staff may have dealt in the investments concerned.

All information is sourced from Baillie Gifford & Co and is current unless otherwise stated.

The images used in this communication are for illustrative purposes only.

Annual Past Performance to 30 June Each Year (Net %)
Annualised returns to 30 June 2022 (%)

Source: Baillie Gifford & Co and underlying index provider(s). USD.

Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

Past performance is not a guide to future results.

Important information

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Author

Joe Faraday

Investment Manager

Joe is a Director responsible for leading our International Specialist Team, and has been a member of the International All Cap Portfolio Construction Group since 2007. Joe joined Baillie Gifford’s Graduate Scheme in 2002 and worked in our European, North America, Developed Asian and Emerging Markets Equity Teams before transferring to the Clients Department in 2013. Following an engineering scholarship with the Smallpeice Trust in his gap year, Joe graduated MEng in Chemical Engineering from the University of Cambridge in 2002 and gained an MBA from the University of Edinburgh in 2009. He is also a CFA Charterholder.

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