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Investment strategy

Global Alpha Paris Aligned

We aim to own companies with the potential to deliver superior earnings growth in line with the Paris Agreement. The portfolio is global, and our research draws on the insights of the entire investment floor.

One man exploring beautiful Ice cave close to Jokulsarlon Glacier Lagoon.

Investing with a purpose

An ambitious approach to investing in exceptional growth companies from across the spectrum of opportunity, consistent with addressing the climate crisis. The portfolio is truly global, and our research draws on the insights of the investment floor.

Global Alpha: our philosophy

Investment manager Helen Xiong introduces Global Alpha, reflecting on the exciting opportunities ahead.

High growth, low emissions

We aim to identify companies which can grow their earnings at a superior rate to the market over a sustained period, with prices which don’t reflect their potential. As share prices are ultimately driven by earnings growth, this approach underpins our objective to deliver returns of 2 to 3 per cent per annum ahead of the benchmark over rolling five-year periods before the deduction of fees. The strategy also commits to maintaining a Weighted Average Greenhouse Gas Intensity lower than the MSCI ACWI EU Paris Aligned Requirements Index, attempting to limit the rise in global temperatures to 1.5 degrees.

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.

Decarbonising with diversity

Our philosophy is to invest long-term in well-managed businesses with sustainable competitive advantages. We embrace diversity, splitting the portfolio across three growth profiles – compounders, disruptors and capital allocators – which seek to exploit different inefficiencies. Each holding is analysed to ensure consistency with the transition to a low-carbon economy. The resulting portfolio of around 90 holdings represents the most attractive opportunities aligned with ambitious decarbonisation goals.

For me, open-mindedness, imagination and the ability to embrace change are essential for long-term growth investors.
Malcolm MacColl

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
1Microsoft4.9%
2Meta Platforms4.4%
3Amazon.com4.3%
4Elevance Health Inc.3.6%
5Moody's3.1%
6Mastercard2.7%
7CRH2.4%
8Service Corporation International2.4%
9Alphabet2.2%
10Prosus2.2%

Strategy holdings by region

All figures up to: 31 March 2024

1North America64.80%
2Europe (ex UK)16.80%
3Emerging Markets10.00%
4Developed Asia Pacific6.40%
5UK0.50%
6Cash1.50%
Total 100%

Strategy holdings by region

All figures up to: 31 March 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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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:

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Insights

Viewing 8 of 8
  1. Global Alpha: back to growth

    The managers tell a London Investment Forum about new sources of opportunity and optimism.
    March 2024
    Article6 minutes
  2. 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
  3. 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
  4. A net zero initiative update

    A reflection on Baillie Gifford’s commitment to the climate transition.
    November 2023
    Article
  5. How Microsoft got its mojo back

    By shifting the focus from Windows and embracing AI, the firm has revitalised its fortunes.
    November 2023
    Article
  6. Global Alpha: manager update

    The managers discuss the market environment, portfolio positioning and current opportunities.
    October 2023
    Video60 minutes
  7. Global Alpha Paris-Aligned Stewardship Report

    2022 update including company engagements, audit, ESG metrics, and voting record.
    August 2023
    Document
  8. Global Alpha Stewardship Report 2021

    For the year to 30 September 2021.
    2021
    Document

Global Alpha: our philosophy

Investment manager Helen Xiong introduces Global Alpha, reflecting on the exciting opportunities ahead.

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.