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Investment strategy

Global Alpha Paris Aligned

We aim to own companies with the potential to deliver superior earnings growth in line with the Paris Agreement. The portfolio is global, and our research draws on the insights of the entire investment floor.

One man exploring beautiful Ice cave close to Jokulsarlon Glacier Lagoon.

Investing with a purpose

An ambitious approach to investing in exceptional growth companies from across the spectrum of opportunity, consistent with addressing the climate crisis. The portfolio is truly global, and our research draws on the insights of the investment floor.

Global Alpha: our philosophy

Investment manager Helen Xiong introduces Global Alpha, reflecting on the exciting opportunities ahead.

High growth, low emissions

We aim to identify companies which can grow their earnings at a superior rate to the market over a sustained period, with prices which don’t reflect their potential. As share prices are ultimately driven by earnings growth, this approach underpins our objective to deliver returns of 2 to 3 per cent per annum ahead of the benchmark over rolling five-year periods before the deduction of fees. The strategy also commits to maintaining a Weighted Average Greenhouse Gas Intensity lower than the MSCI ACWI EU Paris Aligned Requirements Index, attempting to limit the rise in global temperatures to 1.5 degrees.

The performance target is aspirational and is not guaranteed. We don’t use it to compile the portfolio and returns will vary. A single performance target may not be appropriate across all vehicles and jurisdictions. We may not meet our investment objectives if, for example, our growth investment style is out of favour or we misjudge the long-term earnings growth of our holdings.

Decarbonising with diversity

Our philosophy is to invest long-term in well-managed businesses with sustainable competitive advantages. We embrace diversity, splitting the portfolio across three growth profiles – compounders, disruptors and capital allocators – which seek to exploit different inefficiencies. Each holding is analysed to ensure consistency with the transition to a low-carbon economy. The resulting portfolio of about 90 holdings represents the most attractive opportunities aligned with ambitious decarbonisation goals.

For me, open-mindedness, imagination and the ability to embrace change are essential for long-term growth investors.
Malcolm MacColl

Meet the managers

Documents

Philosophy and process

Explore our investment philosophy and the processes around how the team constructs the portfolio.

Stewardship report

Find out about our conversations with portfolio companies, shareholder vote activity and consideration of environmental, social and governance matters.

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Curious to learn more about our products and what we can offer you? Please get in touch.

Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 30 September 2024

#Holding% of portfolio
1Microsoft4.7%
2Amazon.com4.2%
3Meta Platforms4.2%
4NVIDIA3.5%
5Elevance Health Inc.3.4%
6Prosus2.9%
7Mastercard2.5%
8DoorDash2.4%
9Moody's2.4%
10Service Corporation International2.3%

Strategy holdings by region

As at: 30 September 2024

1North America64.80%
2Europe (ex UK)18.40%
3Emerging Markets10.20%
4Developed Asia Pacific5.30%
5UK0.60%
6Cash0.60%
Total 100%

Strategy holdings by region

All figures up to: 30 September 2024

Total: 100%

Please note

The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Insights

Key articles, videos and podcasts relating to the strategy:

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Insights

Viewing 19 of 19
  1. Global Alpha Q3 investor letter

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments
    October 2024
    Article7 minutes
  2. Do elections matter for stock returns?

    What the past tells us about a new US president’s impact on growth companies.
    October 2024
    Article6 minutes
  3. Why growth investors can’t ignore China

    China’s electric car, battery and other advanced manufacturers are on the rise.
    October 2024
    Podcast3 minutes
  4. Global Alpha Q3 update

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments.
    October 2024
    Video10 minutes
  5. Global Alpha insights: unlocking the magic of Disney

    Why the Global Alpha Team believes there is a magical journey ahead for Disney.
    September 2024
    Article4 minutes
  6. Investment specialist Ben James

    Future Stocks: Our best ideas in the US

    Ben James explains why DoorDash, The Trade Desk and CoStar stand out as growth stocks.
    September 2024
    Video3 minutes
  7. Eric Beinhocker: evolutionary economist

    How successful companies harness the power of adaptation.
    September 2024
    Article7 minutes
  8. Illustrated flat lay, with a large Moutai bottle taking centre stage, larger than the other things around it. Other things include ice cream, old style jars and different types of Moutai bottles.

    Kweichow Moutai: spirit of China

    The fiery spirit that’s a profitable symbol of Chinese culture and luxury.
    September 2024
    Article7 minutes
  9. Illustration of semiconductors making up a DNA strand with products floating in background.

    Beyond NVIDIA: investing in semiconductors

    Why some of the leading computer chip makers and companies enabling them have room to grow.
    September 2024
    Article6 minutes
  10. China: the new shoots of growth

    Why advanced manufacturing and social context are key to investing in tomorrow’s Chinese giants.
    September 2024
    Article5 minutes
  11. Global Alpha Q2 update

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments.
    July 2024
    Video11 minutes
  12. The US building bonanza

    America’s infrastructure upgrade plan vastly exceeds its spending on rebuilding post-war Europe.
    March 2024
    Article4 minutes
  13. Global Alpha Research Agenda

    From AI to infrastructure – Global Alpha homes in on the growth areas and companies best placed to exploit opportunities.
    March 2024
    Article8 minutes
  14. Global Alpha: back to growth

    The managers tell a London Investment Forum about new sources of opportunity and optimism.
    March 2024
    Article6 minutes
  15. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  16. A net zero initiative update

    A reflection on Baillie Gifford’s commitment to the climate transition.
    November 2023
    Article
  17. How Microsoft got its mojo back

    By shifting the focus from Windows and embracing AI, the firm has revitalised its fortunes.
    November 2023
    Article
  18. Global Alpha: manager update

    The managers discuss the market environment, portfolio positioning and current opportunities.
    October 2023
    Video60 minutes
  19. Global Alpha Paris-Aligned

    The Global Alpha Paris-Aligned portfolio offers a pathway for clients to align their assets with the objectives of the Paris Agreement. Here, we provide some background to the Paris Accords and outline how we aim to implement its objectives.
    April 2021
    Document

Global Alpha: our philosophy

Investment manager Helen Xiong introduces Global Alpha, reflecting on the exciting opportunities ahead.

  1. Global Alpha Q3 investor letter

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments
    October 2024
    Article7 minutes
  2. Do elections matter for stock returns?

    What the past tells us about a new US president’s impact on growth companies.
    October 2024
    Article6 minutes
  3. Why growth investors can’t ignore China

    China’s electric car, battery and other advanced manufacturers are on the rise.
    October 2024
    Podcast3 minutes
  4. Global Alpha Q3 update

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments.
    October 2024
    Video10 minutes
  5. Global Alpha insights: unlocking the magic of Disney

    Why the Global Alpha Team believes there is a magical journey ahead for Disney.
    September 2024
    Article4 minutes
  6. Investment specialist Ben James

    Future Stocks: Our best ideas in the US

    Ben James explains why DoorDash, The Trade Desk and CoStar stand out as growth stocks.
    September 2024
    Video3 minutes
  7. Eric Beinhocker: evolutionary economist

    How successful companies harness the power of adaptation.
    September 2024
    Article7 minutes
  8. Illustrated flat lay, with a large Moutai bottle taking centre stage, larger than the other things around it. Other things include ice cream, old style jars and different types of Moutai bottles.

    Kweichow Moutai: spirit of China

    The fiery spirit that’s a profitable symbol of Chinese culture and luxury.
    September 2024
    Article7 minutes
  9. Illustration of semiconductors making up a DNA strand with products floating in background.

    Beyond NVIDIA: investing in semiconductors

    Why some of the leading computer chip makers and companies enabling them have room to grow.
    September 2024
    Article6 minutes
  10. China: the new shoots of growth

    Why advanced manufacturing and social context are key to investing in tomorrow’s Chinese giants.
    September 2024
    Article5 minutes
  11. Global Alpha Q2 update

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments.
    July 2024
    Video11 minutes
  12. The US building bonanza

    America’s infrastructure upgrade plan vastly exceeds its spending on rebuilding post-war Europe.
    March 2024
    Article4 minutes
  13. Global Alpha Research Agenda

    From AI to infrastructure – Global Alpha homes in on the growth areas and companies best placed to exploit opportunities.
    March 2024
    Article8 minutes
  14. Global Alpha: back to growth

    The managers tell a London Investment Forum about new sources of opportunity and optimism.
    March 2024
    Article6 minutes
  15. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  16. A net zero initiative update

    A reflection on Baillie Gifford’s commitment to the climate transition.
    November 2023
    Article
  17. How Microsoft got its mojo back

    By shifting the focus from Windows and embracing AI, the firm has revitalised its fortunes.
    November 2023
    Article
  18. Global Alpha: manager update

    The managers discuss the market environment, portfolio positioning and current opportunities.
    October 2023
    Video60 minutes
  19. Global Alpha Paris-Aligned

    The Global Alpha Paris-Aligned portfolio offers a pathway for clients to align their assets with the objectives of the Paris Agreement. Here, we provide some background to the Paris Accords and outline how we aim to implement its objectives.
    April 2021
    Document

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Important information

The information provided does not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. Baillie Gifford does not currently have any funds that offer securities under a simplified prospectus for general offer or sale within Canada. No securities regulatory authority in Canada has reviewed or in any way passed upon this website or the merits of any investment available, and any representation to the contrary is an offence.

Persons resident or domiciled in Canada should consult with their professional advisers as to whether they require any governmental or other consents in order to enable them to trade.

You can read details of our Legal and Important Information here.

 

Trade Matching Statement

This Trade-Matching Statement is being provided in accordance with National Instrument 24-101 -"Institutional Trade Matching and Settlement" and Companion Policy 24-101 CP (the "National
Instrument"). It applies to all trades that are subject to the National Instrument. View the whole statement.