Unconventional research: profile of a returning industry veteran

As with any investment, your capital is at risk. 

Ross Mathieson (RM): Why does someone who’s led global equity teams and had a successful career managing large mandates come back to Baillie Gifford after more than a decade away? That’s the question we’re going to explore today.

This video is part of our series where we introduce members of our team and the unique perspectives they bring to our investment approach. In the first episode we heard from Hattie Oliver about her investigative research and why she sometimes ends up calling Australian used car dealers in the middle of the night.

Today I’m joined by someone whose talents I know very well, having worked alongside him before, Alistair Way. Alistair is rejoining Baillie Gifford after 18 years away, during which time he built an impressive career managing portfolios, leading teams, and holding head of equities roles. He first began his career here, and we’re delighted to welcome him back as a senior member of the Global Income Growth Team. In this conversation I want to understand what drew him back, what he’s learned along the way, and how his experiences and strengths will help our ability to find the uncommon compounders that deliver durable dividend growth for our clients.

Welcome Alistair. Let’s begin with Why did you come back to Baillie Gifford after 18 years away?

Alistair Way (AW): Thanks, Ross. It’s really good to be back. Having had a variety of experience in the investment industry for the last few years, then it feels like coming home. And there are probably three things that stand out about Baillie Gifford. And having an external perspective really reinforces that.

So firstly, the incredibly in-depth, long-term nature of the research we do here. The time, patience, and resources to look at companies from a multi-year perspective rather than a short-term perspective and to uncover all the information we can, making the right judgment. 

Secondly, the very collaborative culture and client-focused nature of everything we do within the company.

And thirdly, the stability of the structure at Baillie Gifford. As we both know, when you’re working in places where senior management changes, where there’s new CIOs, where there’s maybe a merger. It is really hard to maintain a consistent investment philosophy and very hard to keep investors focused on the day job of forming long-term investment views.

RM: And you’ve worked on a range of different strategies throughout your career. What was it that drew you in about the team as a team you chose to join?

AW: Well, aside from the pleasure of working with you personally again, Ross, the main thing is the very distinctive process and the sort of companies we’re looking for here in the team. 

Looking for high-quality companies with strong franchises who can compound their earnings, cash flow and dividends for decades rather than quarters. The big range of inputs we use into that, you mentioned our investigative reporter, equally the sources we use from academia and industry sources for helping us make the right judgment and the diversity of things we look at. I think the way global markets are at the moment, very short-term focused, incredibly concentrated in a small number of stocks. I believe it’s genuinely in the best interest of clients to look more broadly for opportunities, get off the beaten track, look at companies that aren’t hitting the headlines at the moment, but have probably stronger longer-term prospects in compounding cash flows.

RM: And these special companies, like you say, they’re hard to uncover. From your perspective, what is the best way to go about identifying these companies?

AW: Certainly looking in a range of places over my career, I’ve had the privilege of looking at European equities, Japanese small caps, many years covering global emerging markets, awarding once you do. 

Secondly, the process of finding them is tough. There’s no easy way about them. It involves a lot of hard work, a lot of investigating, lots of looking off the beaten track, lots of cross-checking sources.

Thirdly, the importance of focus. So spending your time as an investor, as an investment team, looking in the right places, staying focused on company research, not getting too distracted by macro or short-term or market events.

I think certainly these views are very complementary with the team and equally over the course of my career I’ve looked at many of the stocks which are key holdings or key areas of focus for us on the team now. So companies like TSMC, Nintendo I’ve looked at over decades through a variety of economic product cycles. Companies like Anta, USS I know really well. So hopefully these will all be complementary to the team’s skill set.

RM: We hold a very strong belief that to help identify these durable growth companies, looking through a dividend growth lens is a fantastic signal. How applicable do you think that signal of dividend growth and the commitment to dividend growth is in many of the different markets or sectors that you looked at previously?

AW: I think it is really generally applicable. It’s fair to say that payout rates do vary by geography. Look at the difference between, say, Korea and Taiwan. They vary by sector. But normalising fees variances is still a really important indicator of, firstly, management discipline, management capital allocation over the cycle, and secondly, the durability of a company’s growth prospects and competitive advantage. 

I feel over my career, I’ve invested through many cycles. So we had the Asian financial crisis in 1997, global financial crisis in 2008. And it’s through periods like that when the resilience of companies is tested and the huge variety of outcomes between companies with strong fundamentals and balance sheets and those that don’t become really apparent, both in terms of operational performance and in terms of share price performance. So it can take a crisis to really show the true measure of a company.

I think the last decade or decade plus has been quite unusual in that we’ve not really had any sharp contractions aside from the coronavirus 2020 lockdown episodes. So it feels that many market participants these days have not really invested through tough economic times. And even those who have, have got quite short-term memories and that translates into how we’ll stop markets, a few things at the moment. But it’s in our clients’ interests to take the longer view and look at resilience.

RM: Yeah, absolutely. And as you open this next chapter on your career, what most excites you for what lies ahead?

AW: The main thing, Ross, I mean, I’ve had a huge variety of roles within asset management, but the key thing that still excites me and interests me is looking at companies, forming views on stocks, meeting management, discussing it with a talented, committed team. So, I truly believe the uniquely resourced, diverse team we have here is very well positioned to deliver good client outcomes for a long time to come. 

On a personal level, I’m looking forward to learning a lot from yourself and other investors on the team and more broadly at Baillie Gifford and hopefully some of my experience over the years will come in useful for the team and I can equally help some of the younger investors to develop.

RM: Brilliant. Well, welcome on board. We are very excited to have you, to learn from your experience, to see the stocks that you find from off the beaten track. So very excited and grateful to have you on the team.

I hope this conversation gives you a sense of how we think about building a well-resourced team with complementary skills, a clear, consistent philosophy, and a commitment to in-depth research that goes far beyond the numbers.

As Alistair has highlighted, our goal remains the same, to deliver strong long-term returns in as smooth a fashion as possible, with resilience when markets get tougher. This is possible because of the diverse strengths of the people we have on the team. We’ll continue this series by introducing you to more colleagues, each with their own way of contributing to our investment process. For now, thank you, Alistair, and thank you for watching.

Risk factors

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.

This communication was produced and approved in October 2025 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.

Potential for Profit and Loss

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.

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.

All information is sourced from Baillie Gifford & Co and is current unless otherwise stated.

The images used in this communication are for illustrative purposes only.

Important Information

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.

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.

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.

Financial Intermediaries

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.

Europe

Baillie Gifford Investment Management (Europe) Ltd (BGE) is authorised by the Central Bank of Ireland as an AIFM under the AIFM Regulations and as a UCITS management company under the UCITS Regulation. BGE also has regulatory permissions to perform Individual Portfolio Management activities. BGE provides investment management and advisory services to European (excluding UK) segregated clients. BGE has been appointed as UCITS management company to the following UCITS umbrella company; Baillie Gifford Worldwide Funds plc. BGE is a wholly owned subsidiary of Baillie Gifford Overseas Limited, which is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited and Baillie Gifford & Co are authorised and regulated in the UK by the Financial Conduct Authority.

Hong Kong

Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 is wholly owned by Baillie Gifford Overseas Limited and holds a Type 1 license from the Securities & Futures Commission of Hong Kong to market and distribute Baillie Gifford’s range of collective investment schemes to professional investors in Hong Kong. Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 can be contacted at Suites 2713-2715, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. Telephone +852 3756 5700.

South Korea

Baillie Gifford Overseas Limited is licensed with the Financial Services Commission in South Korea as a cross border Discretionary Investment Manager and Non-discretionary Investment Adviser.

Japan

Mitsubishi UFJ Baillie Gifford Asset Management Limited (‘MUBGAM’) is a joint venture company between Mitsubishi UFJ Trust & Banking Corporation and Baillie Gifford Overseas Limited. MUBGAM is authorised and regulated by the Financial Conduct Authority.

Australia

Baillie Gifford Overseas Limited (ARBN 118 567 178) is registered as a foreign company under the Corporations Act 2001 (Cth) and holds Foreign Australian Financial Services Licence No 528911. This material is provided to you on the basis that you are a “wholesale client” within the meaning of section 761G of the Corporations Act 2001 (Cth) (“Corporations Act”).  Please advise Baillie Gifford Overseas Limited immediately if you are not a wholesale client.  In no circumstances may this material be made available to a “retail client” within the meaning of section 761G of the Corporations Act.

This material contains general information only.  It does not take into account any person’s objectives, financial situation or needs.

South Africa

Baillie Gifford Overseas Limited is registered as a Foreign Financial Services Provider with the Financial Sector Conduct Authority in South Africa.

North America 

Baillie Gifford International LLC is wholly owned by Baillie Gifford Overseas Limited; it was formed in Delaware in 2005 and is registered with the SEC. It is the legal entity through which Baillie Gifford Overseas Limited provides client service and marketing functions in North America. Baillie Gifford Overseas Limited is registered with the SEC in the United States of America.

The Manager is not resident in Canada, its head office and principal place of business is in Edinburgh, Scotland. Baillie Gifford Overseas Limited is regulated in Canada as a portfolio manager and exempt market dealer with the Ontario Securities Commission ('OSC'). Its portfolio manager licence is currently passported into Alberta, Quebec, Saskatchewan, Manitoba and Newfoundland & Labrador whereas the exempt market dealer licence is passported across all Canadian provinces and territories.

Israel

Baillie Gifford Overseas Limited is not licensed under Israel’s Regulation of Investment Advising, Investment Marketing and Portfolio Management Law, 5755-1995 (the Advice Law) and does not carry insurance pursuant to the Advice Law. This material is only intended for those categories of Israeli residents who are qualified clients listed on the First Addendum to the Advice Law.

Singapore

Baillie Gifford Asia (Singapore) Private Limited is wholly owned by Baillie Gifford Overseas Limited and is regulated by the Monetary Authority of Singapore as a holder of a capital markets services licence to conduct fund management activities for institutional investors and accredited investors in Singapore. Baillie Gifford Overseas Limited, as a foreign related corporation of Baillie Gifford Asia (Singapore) Private Limited, has entered into a cross-border business arrangement with Baillie Gifford Asia (Singapore) Private Limited, and shall be relying upon the exemption under regulation 4 of the Securities and Futures (Exemption for Cross-Border Arrangements) (Foreign Related Corporations) Regulations 2021 which enables both Baillie Gifford Overseas Limited and Baillie Gifford Asia (Singapore) Private Limited to market the full range of segregated mandate services to institutional investors and accredited investors in Singapore.