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<p class="MsoNormal"><strong>Your capital is at risk. Past performance is not a guide to future returns. The following update is based on a representative portfolio. As such, stock examples may not be held in every client portfolio, and performance may differ.</strong></p>
<p class="MsoNormal"><strong>Catherine Flockhart:</strong> Positive Change invests for the long term in companies tackling major sustainable development challenges, and we do that with an ambitious growth mindset.</p>
<p class="MsoNormal">This quarter, the businesses we own continued to deliver strong operational results and impact, but share prices were shaped by a very noisy market backdrop. Conflict in the Middle East, concerns around software following the release of a more sophisticated AI model, and a broader rotation into value stocks all weighed on near-term sentiment.</p>
<p class="MsoNormal">As long-term growth investors, that’s not the kind of short-term market environment where we would expect to outperform, and we have lagged the global index by around 3 percent this quarter, but overall we think the portfolio has held up well given what markets have been dealing with so far this year.</p>
<p class="MsoNormal">Most importantly, the resilience we have been deliberately building into the portfolio is coming through. Fundamentals remain very strong. Over five years, our companies have delivered earnings growth around 30 percent faster than the index, and sales growth is nearly double, yet the valuation premium today is fairly modest.</p>
<p class="MsoNormal">Among the strongest contributors were longstanding holdings in semiconductor hardware, so TSMC and ASML. But also The New York Times, which is defending the concept of truth and also performing well as it continues to execute its transition from print to digital subscriptions.</p>
<p class="MsoNormal">Elsewhere, Remitly, which does global remittances, and Sandoz, who make generic biologic drugs, have been resilient too, which speaks to the breadth of growth drivers across the portfolio.</p>
<p class="MsoNormal">The main detractors were ecommerce and software businesses, where markets have become concerned about AI disruption, particularly around agentic commerce.</p>
<p class="MsoNormal">Holdings such as Shopify, MercadoLibre and Sea were caught up in that selloff. These are all businesses helping small/medium enterprises, with MercadoLibre and Sea focusing in emerging markets.</p>
<p class="MsoNormal">But it is important to keep recent moves in perspective. Shopify and MercadoLibre, in particular, have been very strong long-term contributors to performance, and our base case remains that these are high-quality businesses with attractive long-term prospects. Though over recent months, as we have spoken to you about before, we have moderated our overall exposure to these businesses.</p>
<p class="MsoNormal">We have also used recent volatility to our advantage. We initiated positions in Veeva, which provides software to life sciences companies, and Beijer Ref, whose energy-efficient cooling and heat pump solutions support climate adaptation and decarbonisation. They again add different growth drivers and strengthen portfolio resilience.</p>
<p class="MsoNormal">Stepping back, the events of this quarter also reinforce two structural trends we’ve been focused on talking to you about for some time: the energy transition and innovation, now supercharged by AI.</p>
<p class="MsoNormal">On energy, conflict in the Middle East is once again highlighting the fragility of fossil fuel supply chains. Combined with rising electricity demand from AI data centres, we think that further supports the shift towards electrification and, ultimately, renewable power. We’re being disciplined, especially where capital intensity and the cost of capital matter, but we do see opportunity and we’re working hard to identify new ideas as well as considering whether we now have increased conviction in existing holdings such as CATL, the world’s leading battery manufacturer, who will clearly be beneficiaries of this structural change.</p>
<p class="MsoNormal">On AI, the pace of change remains extraordinary. We are cautious of anyone claiming certainty about exactly how it all plays out. Our focus remains on companies with durable competitive advantages, adaptability, and the potential to be the disruptors or the winners rather than the disrupted. </p>
<p class="MsoNormal">Our broad range of information sources, and insights from private companies such as Anthropic, held by our private equity colleagues at Baillie Gifford, are a tremendous sources of insight as we think about this area.</p>
<p class="MsoNormal">And of course, as an impact strategy, even if short-term share price moves dominate headlines, we never lose our focus on impact. This quarter we published the latest edition of Positive Conversations, setting out how we have engaged with portfolio companies to support their delivery of impact – so our investor contribution – and we’d encourage you to check it out on our website.</p>
<p class="MsoNormal">Just to finish off, we’d remind you that uncertainty is always part of investing, and of course it’s elevated today, but we remain resilient and optimistic. We know the businesses we own are continuing to drive positive change.</p>
<p class="MsoNormal"> </p>
<h3>Past performance</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: 75.1248px;">
<tbody>
<tr style="height: 18.7812px;">
<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: 18.7812px; width: 25.4964%;"> </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: 18.7812px; width: 14.9824%; text-align: right;"><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: 18.7812px; width: 14.9824%; text-align: right;"><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: 18.7812px; width: 14.9824%; text-align: right;"><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: 18.7812px; width: 14.9824%; text-align: right;"><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: 18.7812px; width: 14.9824%; text-align: right;"><strong>2026</strong></td>
</tr>
<tr style="height: 18.7812px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.7812px; width: 25.4964%;">Positive Change Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> -5.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> -11.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> 6.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> -2.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> 13.7</td>
</tr>
<tr style="height: 18.7812px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.7812px; width: 25.4964%;">Positive Change Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> -5.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> -12.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> 6.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> -2.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> 13.1</td>
</tr>
<tr style="height: 18.7812px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.7812px; width: 25.4964%;">MSCI ACWI Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> 7.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> -7.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> 23.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> 7.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.7812px; width: 14.9824%; text-align: right;"> 20.5</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: 92.5px;">
<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: 44.8549%;"> </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: 14.248%; text-align: right;"><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: 16.6227%; text-align: right;"><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: 24.2744%; text-align: right;"><strong>Since inception</strong></td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 44.8549%;">Positive Change Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 14.248%; text-align: right;"> 13.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 16.6227%; text-align: right;"> -0.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 24.2744%; text-align: right;"> 15.4</td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 44.8549%;">Positive Change Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 14.248%; text-align: right;"> 13.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 16.6227%; text-align: right;"> -0.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 24.2744%; text-align: right;"> 14.8</td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 44.8549%;">MSCI ACWI Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 14.248%; text-align: right;"> 20.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 16.6227%; text-align: right;"> 10.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px; width: 24.2744%; text-align: right;"> 11.7</td>
</tr>
</tbody>
</table>
<p><span class="source-text" lang="EN-US">Source: Revolution, MSCI. USD. Net returns have been calculated by reducing the gross return by the highest annual management fee for the composite. Since Inception: 3 January 2017. 1 year figures are not annualised.</span></p>
<p><span class="source-text" lang="EN-US">Positive Change composite is more concentrated than MSCI ACWI Index. </span></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>
<h3>Risk factors and important information</h3>
<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 was produced and approved in April 2026 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.</p>
<h3>Potential for Profit and Loss</h3>
<p>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.</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>
<h3>Important Information</h3>
<p>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>
<h3>Financial Intermediaries</h3>
<p>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>
