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Investment strategy

Responsible Global Alpha Paris Aligned

We identify companies with the potential to deliver superior earnings growth while keeping emissions consistent with the Paris Agreement on climate change.  

An aerial view of a sailing boat floating on still water with clouds reflected on the surface.

Recognising diversity

An ambitious approach to investing in responsible growth companies from across the spectrum of opportunity, consistent with addressing the climate crisis. We are flexible and open-minded, recognising the diverse ways in which growth can be achieved. 

Global Alpha: our philosophy

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

Patient, engaged ownership

We aim to identify companies which can grow their earnings at a superior rate to the market over sustained periods, where this potential is not reflected in the price. As share prices are ultimately driven by earnings growth, this approach underpins our objective to deliver returns 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 and excludes companies which fail to meet our responsible behaviour criteria. 

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.

A truly global portfolio

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 exploit different inefficiencies.  

Each holding is analysed to ensure consistency with the low-carbon transition. The resulting portfolio of about 90 holdings represents the most attractive opportunities from across the growth spectrum. 

The 2020s must be the decisive decade of action on the climate crisis, and there will unquestionably be greater discussion on the need to align funds with a 1.5C warming scenario.
Helen Xiong

Meet the managers

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Philosophy and process

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

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Strategy portfolio holdings

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

All figures up to: 30 November 2024

#Holding% of portfolio
1Amazon.com4.7%
2Microsoft4.7%
3Meta Platforms4.3%
4NVIDIA4.0%
5Prosus3.1%
6DoorDash3.1%
7Mastercard2.7%
8Elevance Health Inc.2.7%
9Service Corporation International2.7%
10The Trade Desk2.5%

Strategy holdings by region

As at: 30 November 2024

1North America67.60%
2Europe (ex UK)16.60%
3Emerging Markets10.00%
4Developed Asia Pacific4.50%
5UK0.40%
6Cash0.90%
Total 100%

Strategy holdings by region

All figures up to: 30 November 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.

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Insights

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Global Alpha: our philosophy

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

  1. A shepherd dog popping his head up from a sheep flock. Disguise, uniqueness and/or lost in the crowd concept

    Why the Global Alpha Team has a different view to the market on the future growth of Rakuten.

    Richie Vernon, investment specialist for Global Alpha, shares more about why Global Alpha has a different perspective to the market on the future growth of Rakuten.
    October 2024
    Article4 minutes
  2. Global Alpha Q3 investor letter

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments
    October 2024
    Article7 minutes
  3. 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
  4. Why growth investors can’t ignore China

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

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments.
    October 2024
    Video10 minutes
  6. 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
  7. 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
  8. Eric Beinhocker: evolutionary economist

    How successful companies harness the power of adaptation.
    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: back to growth

    The managers tell a London Investment Forum about new sources of opportunity and optimism.
    March 2024
    Article6 minutes
  14. How Microsoft got its mojo back

    By shifting the focus from Windows and embracing AI, the firm has revitalised its fortunes.
    November 2023
    Article

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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.