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: our philosophy

Investment manager Tom Coutts introduces International Growth, reflecting on the exciting opportunities ahead.

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

Quarterly update

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

Philosophy and process

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

Stewardship report

Find out about our conversations with portfolio companies, shareholder vote activity and consideration of environmental, social and governance matters.

Explore further

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

Strategy portfolio holdings

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

All figures up to: 30 June 2024

#Holding% of portfolio
1ASML7.05
2MercadoLibre6.19
3Spotify5.62
4TSMC5.34
5Ferrari4.39
6Atlas Copco4.15
7Adyen3.84
8argenx3.22
9L'Oréal2.99
10Wix.com2.91

Strategy holdings by sector

As at: 31 August 2024

1Consumer Discretionary26.01%
2Information Technology24.79%
3Financials14.50%
4Industrials10.88%
5Communication Services9.80%
6Health Care9.19%
7Consumer Staples3.61%
8Materials0.68%
9Cash0.55%
Total 100%

Strategy holdings by sector

All figures up to: 31 August 2024

Total: 100%

Strategy holdings by region

As at: 31 August 2024

1Europe (ex UK)53.97%
2Emerging Markets29.09%
3Developed Asia Pacific12.06%
4UK2.27%
5North America2.07%
6Cash0.55%
Total 100%

Strategy holdings by region

All figures up to: 31 August 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.

Explore further

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

Insights

Key articles, videos and podcasts relating to the strategy:

Filters

Insights

Viewing 31 of 31
  1. Illustration showing a skyline of Seoul, South Korea. Includes the Lotte World Tower skyscraper.

    Trip Notes: Seoul and Mumbai

    Lawrence Burns sees great growth firms in action in South Korea and India.
    September 2024
    Article4 minutes
  2. International Growth Stewardship Report

    Summary of stewardship activities and perspectives for 12 months to 31 March 2023.
    August 2024
    Document20 minutes
  3. MercadoLibre: Latin America’s unbanked

    MercadoLibre offers hope to Latin America’s 178 million unbanked population.
    September 2024
    Article5 minutes
  4. An employee wearing PPE carefully examines the microchips on a wafer

    International viewpoints: semi-cap resilience

    Why our long-term conviction in ASML, Tokyo Electron and TSMC stands up to recent sector volatility.
    August 2024
    Article3 minutes
  5. International Growth: our philosophy

    Investment manager Tom Coutts introduces International Growth, reflecting on the exciting opportunities ahead.
    July 2024
    Video4 minutes
  6. International Growth Q2 update

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    July 2024
    Video12 minutes
  7. International viewpoints: global EV trends

    Analysing market dynamics, industry challenges and future trends of EVs’ global adoption.
    July 2024
    Article2 minutes
  8. 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
  9. Stock story: MercadoLibre

    The company on a mission to democratise ecommerce and finance for 650 million people.
    May 2024
    Video3 minutes
  10. 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
  11. 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
  12. International Growth Q1 update

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

    Why AI could be the printing press of intelligence.
    March 2024
    Article4 minutes
  14. 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
  15. International Growth Q4 update

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

    International Growth's investment philosophy, portfolio positioning, and outlook for 2024.
    December 2023
    Video33 minutes
  17. 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
  18. 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
  19. China revisited

    Lawrence Burns explores the new landscape of opportunity.
    November 2023
    Article
  20. argenx: innovative antibody therapies

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

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video9 minutes
  22. International Growth Q2 update

    The International Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video13 minutes
  23. Moderna’s new challenge

    The mRNA technology behind the Covid vaccine is being directed against other diseases.
    June 2023
    Article
  24. Adyen: pioneer of payments

    The Dutch firm making everyday payments fast and friction-free.
    April 2023
    Article
  25. International Growth Q1 update

    International Growth Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video9 minutes
  26. Japan’s place in the chip market

    The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.
    March 2023
    Article
  27. 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
  28. Ocado’s robot revolution

    The UK firm partnering with leading grocers to deploy its automated warehouses worldwide.
    March 2023
    Article
  29. MercadoLibre: a lesson in innovation

    Investment manager Lawrence Burns talks to MercadoLibre’s CFO Pedro Arnt.
    February 2023
    Article
  30. ASML: advancing chips to new limits

    The Dutch firm driving progress by making it possible to create more intricate computer chips.
    December 2022
    Article
  31. 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: our philosophy

Investment manager Tom Coutts introduces International Growth, reflecting on the exciting opportunities ahead.

  1. Illustration showing a skyline of Seoul, South Korea. Includes the Lotte World Tower skyscraper.

    Trip Notes: Seoul and Mumbai

    Lawrence Burns sees great growth firms in action in South Korea and India.
    September 2024
    Article4 minutes
  2. International Growth Stewardship Report

    Summary of stewardship activities and perspectives for 12 months to 31 March 2023.
    August 2024
    Document20 minutes
  3. MercadoLibre: Latin America’s unbanked

    MercadoLibre offers hope to Latin America’s 178 million unbanked population.
    September 2024
    Article5 minutes
  4. An employee wearing PPE carefully examines the microchips on a wafer

    International viewpoints: semi-cap resilience

    Why our long-term conviction in ASML, Tokyo Electron and TSMC stands up to recent sector volatility.
    August 2024
    Article3 minutes
  5. International Growth: our philosophy

    Investment manager Tom Coutts introduces International Growth, reflecting on the exciting opportunities ahead.
    July 2024
    Video4 minutes
  6. International Growth Q2 update

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    July 2024
    Video12 minutes
  7. International viewpoints: global EV trends

    Analysing market dynamics, industry challenges and future trends of EVs’ global adoption.
    July 2024
    Article2 minutes
  8. 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
  9. Stock story: MercadoLibre

    The company on a mission to democratise ecommerce and finance for 650 million people.
    May 2024
    Video3 minutes
  10. 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
  11. 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
  12. International Growth Q1 update

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

    Why AI could be the printing press of intelligence.
    March 2024
    Article4 minutes
  14. 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
  15. International Growth Q4 update

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

    International Growth's investment philosophy, portfolio positioning, and outlook for 2024.
    December 2023
    Video33 minutes
  17. 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
  18. 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
  19. China revisited

    Lawrence Burns explores the new landscape of opportunity.
    November 2023
    Article
  20. argenx: innovative antibody therapies

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

    The International Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video9 minutes
  22. International Growth Q2 update

    The International Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video13 minutes
  23. Moderna’s new challenge

    The mRNA technology behind the Covid vaccine is being directed against other diseases.
    June 2023
    Article
  24. Adyen: pioneer of payments

    The Dutch firm making everyday payments fast and friction-free.
    April 2023
    Article
  25. International Growth Q1 update

    International Growth Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video9 minutes
  26. Japan’s place in the chip market

    The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.
    March 2023
    Article
  27. 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
  28. Ocado’s robot revolution

    The UK firm partnering with leading grocers to deploy its automated warehouses worldwide.
    March 2023
    Article
  29. MercadoLibre: a lesson in innovation

    Investment manager Lawrence Burns talks to MercadoLibre’s CFO Pedro Arnt.
    February 2023
    Article
  30. ASML: advancing chips to new limits

    The Dutch firm driving progress by making it possible to create more intricate computer chips.
    December 2022
    Article
  31. 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.