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<p data-start="16" data-end="100"><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 data-start="16" data-end="100"><strong>Philip Rae: </strong>There is a clear sense of unease and uncertainty driving market sentiment right now.</p>
<p data-start="102" data-end="312">The S&P 500, the leading index for America’s stock market, was down around 2.5 percent in sterling terms over this quarter. Beneath the headline number, two narratives have driven a large divergence in returns.</p>
<p data-start="314" data-end="497">First, geopolitics. The conflict in the Middle East drove energy prices sharply higher, and we have very little exposure to energy, so relative performance suffered in the short term.</p>
<p data-start="499" data-end="769">Second, and more significant for us, there was a broad sell-off in software and anything perceived as digital or AI-adjacent. To put this in perspective, software has suffered its worst sell-off in 30 years and now trades at the same valuation level as the wider market.</p>
<p data-start="771" data-end="1035">Against this backdrop, the portfolio underperformed, declining around 18 percent. We know our clients are disappointed with that short-run performance, and we share that disappointment. Unfortunately, the strong returns since the end of 2022 have been interrupted.</p>
<p data-start="1037" data-end="1306">Within the portfolio, two holdings stood out as detractors. Food delivery leader DoorDash executed well and growth was strong, but increased investment pushed profitability in newer areas like grocery and retail further out. The market treated that as a disappointment.</p>
<p data-start="1308" data-end="1621">Real estate business CoStar reflects another kind of impatience: the market’s focus on near-term margins as it reinvests for its next phase of growth. Homes.com has weighed on profitability. But with deep proprietary data, a proven playbook, and a strong financial position, we believe its edge is underestimated.</p>
<p data-start="1623" data-end="1708">What stands in sharp contrast to the delivered returns, I would highlight two things.</p>
<p data-start="1710" data-end="1903">First, strong fundamentals. Growth has remained robust, and profitability across the portfolio has improved. Companies have strong balance sheets and cash flows to reinvest in their businesses.</p>
<p data-start="1905" data-end="2454">Adding to that is what we are hearing from companies. Shopify’s founder, Tobi Lütke, is energised by the extraordinary benefits that generative AI is bringing to their business. Shopify has moved incredibly quickly to embed AI across its operations, from merchant tools to products like Sidekick, a digital co-founder that helps merchants run their businesses. They see agentic commerce as expanding their market, rather than disrupting it. On top of that, this is a company that is leaner, more efficient, and still growing 30 percent year on year.</p>
<p data-start="2456" data-end="2953">Looking more closely at our software exposure, we see evidence of competitive advantages being expanded. Cloudflare’s networking and security offering becomes more important in an AI world. As traffic on its network becomes increasingly autonomous through AI agents, Cloudflare sits at a critical control point, providing governance and building trust and reliability into the system. Early signs are positive: Cloudflare saw AI agent traffic on its network double over the month of January alone.</p>
<p data-start="2955" data-end="3139">Our view is that AI does not destroy value — it is actually redistributing it. Our job as long-term investors is to own the businesses where that value is likely to increase over time.</p>
<p data-start="3141" data-end="3415">The other thing to note is just how far valuations have compressed. On both a price-to-sales and price-to-earnings basis, the portfolio has not been this inexpensive relative to the S&P 500 since before 2015. That gap between narrative and fundamentals feels unusually wide.</p>
<p data-start="3417" data-end="3620">I hope that adds not only a degree of reassurance, but that you might share our excitement about a strong setup for future returns from this point: attractive growth now trading at much lower valuations.</p>
<p data-start="3622" data-end="4111">We used the current market dislocation to start a position in Axon Enterprises. Axon supports public safety agencies and law enforcement. Its body cameras capture video evidence to improve trust throughout the justice process. The company’s position is anchored in real-world hardware, enabling it to capture proprietary data at the source. As an example, its footage helps automate and cut the time spent by police on report writing by 50 percent, saving valuable and scarce officer time.</p>
<p data-start="4113" data-end="4613">It is important to note that the portfolio is much broader than tech and AI. We have increased the exposure to enduring growth names. We added a new holding in RBC Bearings. This is a highly specialised industrial business with deep customer relationships and niche products critical to the aerospace, defence, and industrial systems. The investment adds greater diversification, complementing other enduring holdings like skilled-nursing facility operator Ensign, or aggregates business Knife River.</p>
<p data-start="4615" data-end="4972">As we look across our holdings broadly, we see little reason to be concerned about their prospects. Companies are in good shape and growing strongly. Average 2026 revenue growth across the portfolio is around 20 percent. Valuations have compressed to levels we have not seen for some time, and we are genuinely excited about the opportunity ahead from here.</p>
<p data-start="4974" data-end="5133">Thanks for your time today and your patience with performance. I hope you found this update useful, and we look forward to talking with you again next quarter.</p>
<p data-start="4974" data-end="5133"> </p>
<h3 class="TABLEHEADER1212pt">US Equity 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: 74px;">
<tbody>
<tr style="height: 18.5px;">
<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: 18.5px;"> </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: 18.5px;"><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: 18.5px;"><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: 18.5px;"><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: 18.5px;"><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: 18.5px;"><strong>2026</strong></td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">US Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">-27.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">-29.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">35.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">9.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">3.7</td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">US Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">-28.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">-29.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">35.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">8.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">3.2</td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">S&P 500 Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">15.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">-7.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">29.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">8.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">17.8</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: 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%;"><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%;"><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%;"><strong>10 years</strong></td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 61.3387%;">US Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 13.1043%;">3.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 12.713%;">-4.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 12.844%;">14.3</td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 61.3387%;">US Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 13.1043%;">3.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 12.713%;">-5.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 12.844%;">13.7</td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 61.3387%;">S&P 500 Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 13.1043%;">17.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 12.713%;">12.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px; width: 12.844%;">14.2</td>
</tr>
</tbody>
</table>
<p><span class="source-text"><strong><br></strong></span>Source: Revolution, S&P. 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. <br> <br><strong>Past performance is not a guide to future returns.</strong><br> <br>Legal notice: The S&P 500 Index is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.<span class="source-text"><strong><br><br></strong></span></p>
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