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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 update

The UK Core Team reflects on recent performance, portfolio changes and market developments.

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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Strategy portfolio holdings

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

All figures up to: 31 May 2024

#Holding% of portfolio
1AstraZeneca5.0%
2Rio Tinto4.2%
3Bunzl3.8%
4Marks and Spencer Group3.6%
5Legal & General3.5%
6Unilever3.5%
7RELX3.5%
8Auto Trader3.4%
9Inchcape3.3%
10Babcock International Group3.2%

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 11 of 11
  1. UK Core Q1 update

    The UK Core Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video11 minutes
  2. UK Core Q4 update

    The UK Core Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video11 minutes
  3. Ashtead: hiding in plain sight

    This little-known equipment rental company is one of the UK’s most exciting growth stories.
    December 2023
    Article5 minutes
  4. 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
  5. UK equities: growth on our doorstep

    Our specialist approach is well-placed to take advantage of early-stage British businesses.
    December 2023
    Article5 minutes
  6. A net zero initiative update

    A reflection on Baillie Gifford’s commitment to the climate transition.
    November 2023
    Article
  7. The case for UK equities

    Baillie Gifford’s Iain McCombie discusses UK equities on Hymans Robertson’s investment podcast.
    September 2023
    Podcast30 minutes
  8. UK Equities Stewardship Report

    Genus and Rio Tinto case studies provide examples of the UK Equities Team 2022 and 2023 engagements.
    September 2023
    Document15 minutes
  9. Joiners’ mate

    Iain McCombie on how Howdens’ kitchens won the building trade’s trust.
    September 2023
    Article
  10. UK Equity Core Q2 update

    The UK Equity Core team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video10 minutes
  11. UK equities: Home focus

    Companies solving big problems in healthcare, fintech and AI, are proving the UK is an exciting place to invest.
    December 2022
    Article

UK Core Q1 update

The UK Core Team reflects on recent performance, portfolio changes and market developments.

  1. UK Core Q1 update

    The UK Core Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video11 minutes
  2. UK Core Q4 update

    The UK Core Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video11 minutes
  3. Ashtead: hiding in plain sight

    This little-known equipment rental company is one of the UK’s most exciting growth stories.
    December 2023
    Article5 minutes
  4. 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
  5. UK equities: growth on our doorstep

    Our specialist approach is well-placed to take advantage of early-stage British businesses.
    December 2023
    Article5 minutes
  6. A net zero initiative update

    A reflection on Baillie Gifford’s commitment to the climate transition.
    November 2023
    Article
  7. The case for UK equities

    Baillie Gifford’s Iain McCombie discusses UK equities on Hymans Robertson’s investment podcast.
    September 2023
    Podcast30 minutes
  8. UK Equities Stewardship Report

    Genus and Rio Tinto case studies provide examples of the UK Equities Team 2022 and 2023 engagements.
    September 2023
    Document15 minutes
  9. Joiners’ mate

    Iain McCombie on how Howdens’ kitchens won the building trade’s trust.
    September 2023
    Article
  10. UK Equity Core Q2 update

    The UK Equity Core team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video10 minutes
  11. UK equities: Home focus

    Companies solving big problems in healthcare, fintech and AI, are proving the UK is an exciting place to invest.
    December 2022
    Article

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.