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<p><strong>Your capital is at risk. Past performance is not a guide to future returns. </strong></p>
<p> </p>
<p><strong>Katie Muir</strong>: In the short term, markets can be noisy. They tend to latch on to the dominant narrative of the moment and price accordingly. Over the long term, though, returns are driven by something more durable: owning exceptional businesses and giving them time to compound. This quarter was difficult. The portfolio declined in value, while broader international markets were comparatively more resilient. And that is frustrating, and we do not dismiss it.</p>
<p>But it is important to understand what drove that weakness and why our long-term conviction in the portfolio remains intact. The backdrop has clearly been unsettled. The conflict in the Middle East has revived concerns around energy prices and inflation. But that was not the main driver of underperformance this quarter. The bigger force was a sharp sell-off in companies that the market believes may be exposed to AI-driven disruption, especially across software and adjacent growth businesses. Markets have been asking a simple question, even if the answer is far from simple.</p>
<p>As AI becomes cheaper, more capable and more widespread, which businesses become stronger and which become more vulnerable? That distinction matters. Some companies, especially those that are less differentiated and have lower switching costs, may well face a tougher future. But others are more durable than the market is currently giving them credit for. Systems of record, embedded workflows, trust infrastructure, compliance, security and fraud prevention can remain deeply valuable, even as the technology stack evolves around them. That lens is useful in payments and money transfer, where businesses like our holdings in Adyen and Wise operate.</p>
<p>These are not optional layers: they are trust-critical infrastructure. Interfaces may change, automation will improve and fraud dynamics will evolve, but the need for secure, reliable payments infrastructure does not disappear. In fact, the companies that apply AI best may actually strengthen their positions further by reducing costs, improving risk controls and delivering better outcomes for their customers. Spotify is another useful example. Its shares were weak this quarter, but the deeper question is whether technological change weakens its position or reinforces it. And our view is that, handled well, it can reinforce it.</p>
<p>Spotify has become much more than a music streaming service. It is a global discovery platform and distribution platform connecting creators and audiences at enormous scale. And new interfaces, better personalisation and AI-enabled discovery may actually deepen that role rather than diminish it. Importantly, this was not a uniform sell-off across the portfolio. Several of our digital infrastructure holdings performed very strongly. TSMC, ASML, SK Hynix, Advantest and Disco: these companies all sit at the heart of semiconductor manufacturing and testing.</p>
<p>They are the picks and shovels of the AI build-out. These businesses are enabling compute capacity to become real, and that continues to be a highly intentional exposure in the portfolio. But periods like this also remind us that portfolio construction matters enormously. Successful growth portfolios are not static: they evolve. And over the past two years, we have been reshaping the portfolio with a clear purpose. Broadening the range of underlying growth drivers, reducing clustering in correlated ideas and putting more emphasis on what each business adds to the portfolio alongside its own return potential.</p>
<p>This has continued in recent months, with new investments including the industrial gases business Air Liquide and Lonza, a leading contract manufacturing company for biologic drugs. And this does not mean stepping away from transformative growth, far from it. Backing exceptional, high-upside companies remains central to what we do. But we also want to own high-quality businesses with different growth drivers, businesses that can contribute in their own right while also making the overall portfolio more resilient. So where does that leave us? Near-term market narratives may remain unsettled, and some of the debates driving share prices today, especially around AI, are real and worth taking seriously.</p>
<p>But we believe the portfolio remains anchored in exceptional businesses with strong competitive positions, long reinvestment runways and management teams capable of adapting to change. But our destination has not changed. We are still trying to deliver attractive compound returns over the long term by owning businesses on the right side of technological and societal change. But we also want the return journey to be smoother, with a portfolio that is broader, stronger and better balanced than before. Thank you, as always, for your continued trust and support.</p>
<p> </p>
<h3 class="TABLEHEADER1212pt">International Growth</h3>
<p><strong>Annual past performance to 31 March each year (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 92.9923px;">
<tbody>
<tr style="height: 18.6641px;">
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px;"> </td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px; text-align: center;"><strong>2022</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px; text-align: center;"><strong>2023</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px; text-align: center;"><strong>2024</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px; text-align: center;"><strong>2025</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px; text-align: center;"><strong>2026</strong></td>
</tr>
<tr style="height: 37px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px;">International Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">-26.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">-7.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">6.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">2.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">7.7</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">International Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-27.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-7.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">5.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">1.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">7.1</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">MSCI ACWI ex US Index*</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-1.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-4.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">13.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">6.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">25.6</td>
</tr>
</tbody>
</table>
<p> </p>
<p><strong>Annualised returns to 31 March 2026 (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 93.0001px;">
<tbody>
<tr style="height: 37px;">
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 61.3387%;"> </td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 13.1043%; text-align: center;"><strong>1 year</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 12.713%; text-align: center;"><strong>5 years</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 12.844%; text-align: center;"><strong>10 years</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">International Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">7.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">-4.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">8.6</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">International Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">7.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">-5.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">7.9</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">MSCI ACWI ex US Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">25.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">7.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">8.8</td>
</tr>
</tbody>
</table>
<p><span class="source-text">*MSCI EAFE Index prior to 30 September 2018</span></p>
<p><span class="source-text">Source: Revolution, MSCI. US dollars. Net returns have been calculated by reducing the gross return by the highest annual management fee for the composite. 1 year figures are not annualised.</span><br><br></p>
<p><strong>Past performance is not a guide to future returns.</strong></p>
<p>Legal notice: 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.</p>
<p> </p>
<h3>Risk factors </h3>
<p>This communication was produced and approved in April 2026 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.</p>
<p>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.</p>
<p>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.</p>
<p>All information is sourced from Baillie Gifford & Co and is current unless otherwise stated. </p>
<p>The images used in this communication are for illustrative purposes only.</p>
<p><strong>Important information<br></strong>Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). Baillie Gifford & Co Limited is an Authorised Corporate Director of OEICs.</p>
<p>Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK Professional/Institutional clients only. Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. Baillie Gifford & Co and Baillie Gifford Overseas Limited are authorised and regulated by the FCA in the UK. </p>
<p>Persons resident or domiciled outside the UK should consult with their professional advisers as to whether they require any governmental or other consents in order to enable them to invest, and with their tax advisers for advice relevant to their own particular circumstances.</p>
<p><strong>Financial intermediaries</strong><br>This communication is suitable for use of financial intermediaries. Financial intermediaries are solely responsible for any further distribution and Baillie Gifford takes no responsibility for the reliance on this document by any other person who did not receive this document directly from Baillie Gifford.</p>
