Capital at risk

Investment strategy

UK Core

The UK Equity Core Strategy invests in a collection of tremendously exciting UK businesses. Many may not be household names, but they are typically leaders in their fields with attractive competitive positions.  

We pride ourselves on the strength of our relationships with companies and the level of corporate access and insight this affords us. 

Rodel Saltmarsh on Isle of Harris, Outer Hebrides, Scotland, United Kingdom, Europe.

Investing in Britain’s best

The UK Equity Core Strategy invests for at least five years in a range of carefully selected, high-quality British businesses which we believe have the potential to deliver superior earnings growth. 

UK Core Q1 investment update

The UK Core Team reflects on recent performance, portfolio changes and market developments over the last quarter.

Seeking out superior potential

We aim to outperform the FTSE All-Share index by at least 1 per cent per annum over rolling five-year periods. 

To achieve this, we aim to identify well-managed, high-quality growth companies which enjoy sustainable competitive advantages. We seek out businesses that have the potential to deliver superior earnings growth over many years and hold onto them long enough for their strengths to emerge as the dominant influence on share prices.  

We also take stewardship seriously, meeting with management and boards regularly, voting thoughtfully at general meetings and advocating for change where needed. 

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 diverse blend of growth companies

The portfolio has between 45-65 holdings. Therefore, it looks different to the broader UK equity index and has a high active share.  

This is because we believe that to add value over the long term, we need to take a differentiated approach.  

Given this is a core portfolio, it has a diverse blend of exposure to different types of growth companies – some will grow very rapidly, others will compound over time. Though we can group our holdings into several exciting themes, we aim to have a broad exposure to all. 

Meet the manager

Iain McCombie

Iain McCombie

Iain is the head of our UK Equity Team and lead manager of the UK Core Strategy. He is also the joint manager on our flagship Managed Strategy, which he has been involved in since 2000, and became a partner of the firm in 2005. Since joining Baillie Gifford in 1994, Iain has spent time on the US Equities Team. Iain graduated with a MA in Accountancy from the University of Aberdeen and subsequently qualified as a Chartered Accountant.

Documents

Philosophy and process

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

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