Capital at risk

Investment strategy

International Growth

We aim to deliver attractive long-term returns to clients by being patient owners of exceptional growth companies. We believe disruptions are happening in many economic sectors at different speeds. We are interested in investing in two types of growth company: those able to grow very rapidly and those with durable growth prospects.

Silhouette of a man standing by a lake shore and looking at a beautiful aurora borealis on the sky with reflections on the calm lake.

Searching for outliers

International Growth seeks to invest in outstanding growth businesses that possess a strong competitive advantage and have a culture that allows them to maintain that advantage in a sustainable way.

International Growth Q1 update

The International Growth Team reflects on recent performance, portfolio changes and market developments.

Embracing the exceptional

Our objective is to outperform the benchmark by 3 per cent per annum (net of fees) over rolling five-year periods. To do so, we buy and hold shares in exceptional growth companies with a five-to-10-year investment horizon in mind.  

Our diversified portfolio contains more than 50 holdings. 

We embrace the concept of asymmetry of equity returns and adopt a thinking approach based on probability when building upside scenarios. 

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.

Patience in an impatient industry

Being long-term owners of companies on behalf of our clients is our main advantage in an impatient industry.  

As active stock pickers, our edge also comes from being willing to get things wrong in our search for outliers and seeking wisdom from outside the financial system.  

Our resulting portfolio usually displays a high active share and a low turnover.

Exceptional growth companies can thrive in even the most inhospitable macroeconomic environments by harnessing innovation.
Lawrence Burns

Meet the managers

Documents

Philosophy and process

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

Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

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Strategy portfolio holdings

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

All figures up to: 31 March 2024

#Holding% of portfolio
1ASML7.06
2MercadoLibre6.08
3Spotify5.71
4Adyen5.18
5Ferrari4.71
6TSMC4.53
7Atlas Copco3.74
8L'Oréal3.24
9Tencent2.97
10argenx2.92

Strategy holdings by sector

All figures up to: 31 May 2024

1Consumer Discretionary26.40%
2Information Technology23.32%
3Financials14.14%
4Industrials11.77%
5Communication Services9.51%
6Health Care8.50%
7Consumer Staples4.33%
8Materials1.05%
9Cash0.98%
Total 100%

Strategy holdings by sector

All figures up to: 31 May 2024

Total: 100%

Strategy holdings by region

All figures up to: 31 May 2024

1Europe (ex UK)55.76%
2Emerging Markets27.37%
3Developed Asia Pacific12.11%
4UK2.66%
5North America1.13%
6Cash0.98%
Total 100%

Strategy holdings by region

All figures up to: 31 May 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

Key articles, videos and podcasts relating to the strategy:

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Insights

Viewing 18 of 18
  1. Hundreds of lit lanterns are hanging together from a temple ceiling

    International viewpoints: eastern promise

    What market sentiment, recent valuations and policy changes mean for us as investors in Asian growth companies.
    June 2024
    Article2 minutes
  2. Stock story: MercadoLibre

    The company on a mission to democratise ecommerce and finance for 650 million people.
    May 2024
    Video3 minutes
  3. Tilting the odds in your favour

    The Magnificent Seven’s reputation goes before them but that’s not enough to save them.
    April 2024
    Article8 minutes
  4. A red Ferarri against a vibrant orange and yellow sunset sky

    Ferrari: racing through time

    How a car manufacturer turned luxury icon can continue to outpace the competition.
    April 2024
    Article5 minutes
  5. International Growth Q1 update

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video11 minutes
  6. AI: intelligence everywhere

    Why AI could be the printing press of intelligence.
    March 2024
    Article4 minutes
  7. Moderna: designing drugs on a computer

    Can scientists meet unmet health needs by writing code to help the body heal itself?
    January 2024
    Article4 minutes
  8. International Growth Q4 update

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video9 minutes
  9. A conversation with the International Growth Team

    International Growth's investment philosophy, portfolio positioning, and outlook for 2024.
    December 2023
    Video33 minutes
  10. HelloFresh: changing how people eat forever

    HelloFresh’s CEO explains the art and science of meal kit delivery at a global scale.
    December 2023
    Article
  11. 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
  12. argenx: innovative antibody therapies

    The future of treating autoimmune diseases.
    October 2023
    Article4 minutes
  13. International Growth Q3 update

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video9 minutes
  14. International Growth Stewardship Report

    Summary of stewardship activities and perspectives for 12 months to 31 March 2023.
    August 2023
    Document20 minutes
  15. International Growth Q2 update

    The International Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video13 minutes
  16. International Growth Q1 update

    International Growth Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video9 minutes
  17. 20 years of International Growth podcast

    Through two decades of change, our strategy has prospered by sticking to its philosophy of patience and optimism.
    March 2023
    Podcast23 minutes
  18. What Picasso can teach us about investing

    Investment Specialist Christel Brodie speaks to Tom Coutts, Investment Manager on Baillie Gifford’s International Growth Strategy, about his recent thought piece ‘What Picasso can teach us about investing’.
    July 2021
    Video11 minutes

International Growth Q1 update

The International Growth Team reflects on recent performance, portfolio changes and market developments.

  1. Hundreds of lit lanterns are hanging together from a temple ceiling

    International viewpoints: eastern promise

    What market sentiment, recent valuations and policy changes mean for us as investors in Asian growth companies.
    June 2024
    Article2 minutes
  2. Stock story: MercadoLibre

    The company on a mission to democratise ecommerce and finance for 650 million people.
    May 2024
    Video3 minutes
  3. Tilting the odds in your favour

    The Magnificent Seven’s reputation goes before them but that’s not enough to save them.
    April 2024
    Article8 minutes
  4. A red Ferarri against a vibrant orange and yellow sunset sky

    Ferrari: racing through time

    How a car manufacturer turned luxury icon can continue to outpace the competition.
    April 2024
    Article5 minutes
  5. International Growth Q1 update

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video11 minutes
  6. AI: intelligence everywhere

    Why AI could be the printing press of intelligence.
    March 2024
    Article4 minutes
  7. Moderna: designing drugs on a computer

    Can scientists meet unmet health needs by writing code to help the body heal itself?
    January 2024
    Article4 minutes
  8. International Growth Q4 update

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video9 minutes
  9. A conversation with the International Growth Team

    International Growth's investment philosophy, portfolio positioning, and outlook for 2024.
    December 2023
    Video33 minutes
  10. HelloFresh: changing how people eat forever

    HelloFresh’s CEO explains the art and science of meal kit delivery at a global scale.
    December 2023
    Article
  11. 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
  12. argenx: innovative antibody therapies

    The future of treating autoimmune diseases.
    October 2023
    Article4 minutes
  13. International Growth Q3 update

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video9 minutes
  14. International Growth Stewardship Report

    Summary of stewardship activities and perspectives for 12 months to 31 March 2023.
    August 2023
    Document20 minutes
  15. International Growth Q2 update

    The International Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video13 minutes
  16. International Growth Q1 update

    International Growth Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video9 minutes
  17. 20 years of International Growth podcast

    Through two decades of change, our strategy has prospered by sticking to its philosophy of patience and optimism.
    March 2023
    Podcast23 minutes
  18. What Picasso can teach us about investing

    Investment Specialist Christel Brodie speaks to Tom Coutts, Investment Manager on Baillie Gifford’s International Growth Strategy, about his recent thought piece ‘What Picasso can teach us about investing’.
    July 2021
    Video11 minutes

Explore further

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

Important information

The content of this website is intended exclusively for professional investors in accordance with MiFID legislation. ’Professional investors’ are potential investors who are deemed to have the status of “professional clients”, within the meaning of MiFID (2004/39/EC), as transposed in Ireland. It is not intended for retail investors.

Baillie Gifford Investment Management (Europe) Limited is authorised and regulated by the Central Bank of Ireland (Reference number C182354) as an Alternative Investment Fund Manager and UCITS Manager to Baillie Gifford Worldwide Funds plc. Its registered office is 4/5 School House Lane East, Dublin 2, D02 N279, Ireland.

This website is informative only and the information provided should not be considered as investment or other advice or a recommendation to buy, sell or hold a particular investment. Read our Legal and regulatory information for further details.