Capital at risk
Investment strategy
International Alpha
We believe the best way to navigate an uncertain world is to build a diversified portfolio of outstanding companies with deep competitive advantages and excellent stewardship.
An emphasis on quality
We invest across four types of growth: quality compounders, rapid growth, through-cycle winners and capital allocators. Our aim is to build a portfolio which can withstand economic cycles and take advantage of unpredictable events.
View transcript
<p class="MsoNormal"><strong>Your capital is at risk. Past performance is not a guide to future returns. </strong></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"><strong>Beatrice Faleri</strong>: The first quarter of 2026 was one of the most volatile in recent memory, and the portfolio underperformed the benchmark. We know that this extends a period that has tested your patience, and we don’t take that lightly. But we’re looking at the future with real conviction and optimism, and I want to explain why. In the first two months of the year, a handful of themes continued to drive markets. Growth continued to lag value, with banks, defence and commodity producers leading. In March, war in the Middle East intensified this trend and led to a broad market sell-off.</p>
<p class="MsoNormal">Software and consumer platforms fell further amidst AI disruption fears. The derating of software and consumer internet platforms was the most significant drag on performance for the strategy. Any hint of softer guidance in this environment is punished disproportionately. Tencent Music Entertainment is an example of this. It fell sharply after subscriber growth slowed despite revenues and margins continuing to expand. The Middle East conflict also weighed on Ryanair through rising fuel prices and pressure on discretionary spending, but it didn’t dent our confidence in the company’s ability to navigate geopolitical and macro crises better than competitors.</p>
<p class="MsoNormal">On the other hand, your semiconductor holdings were bright spots, driven by continued AI CAPEX and supply constraints in chip manufacturing. Samsung reported record revenues and operating profits on historically high memory prices, while TSMC exceeded expectations with strong N2 yields and progress in advanced packaging. Your energy and material holdings also benefited as the closure of the Strait of Hormuz stoked fears of energy shortages. Petrobras and B3 were among the strongest contributors, as Brazil’s role as a major oil exporter moved to the fore. But beyond all this quarterly noise, the investment landscape is changing in deeper, more enduring ways, and we’ve been positioning the portfolio accordingly. We see three structural forces at work.</p>
<p class="MsoNormal">The first is higher interest rates, driven by global uncertainty and macroeconomic frictions. In this environment, providers of capital earn structurally higher returns, which is why we’ve been adding exposure to financials. Credicorp, the dominant bank in Peru, is one example. Financial penetration remains low in the country, and the success of its super app, Yape, now reaching 70 percent of the adult population, is accelerating growth. KBC, a leading Belgian bank-insurer, is another recent purchase, combining a resilient deposit franchise with exciting growth opportunities in Eastern Europe. Both offer durable growth, strong management and a price that does not reflect the opportunity, in our view.</p>
<p class="MsoNormal">The second force is the reversal of globalisation. Every reshoring decision, every duplicated supply chain creates demand for physical inputs, energy and infrastructure. We have added copper exposure through Lundin Mining and Zijin Mining to high-quality miners in Latin America and Asia. We also bolstered energy holdings with Petrobras in Brazil and Total Energies in France, and added exposure along the energy transmission and storage value chain through CATL, the Chinese global leader in battery technology. The third and final force is AI, whose transformative potential is only matched by the market dislocation and uncertainty it is creating. We seek balanced exposure across the AI value chain.</p>
<p class="MsoNormal">We took profits from semiconductor holdings that have run, and recycled that capital into names like SoftBank, which offers exposure to the AI build-out beyond semis. We’re also carefully assessing the threat AI poses to software holdings. We believe the market has been too quick to separate winners and losers. We’ve exited the names most vulnerable to disruption while retaining, and in some cases adding to, higher-conviction businesses like Shopify, Scout24 and Experian. The breadth of these changes means turnover this quarter has been higher than you’re accustomed to seeing for our strategy, and we want to be upfront about that. But it’s not unprecedented.</p>
<p class="MsoNormal">This strategy has navigated regime change before. For example, repositioning into financials, industrials and energy after the dot-com crash, and into rapid-growth companies in the early 2010s, as low rates and the digital transformation took shape. In both these cases, elevated portfolio activity reflected the breadth of the opportunity, and the strategy delivered some of its strongest returns. Our philosophy is what gives us the room to adapt when the landscape demands it. The result today is a portfolio whose fundamentals have rarely looked stronger, relative to both the index and its own history. Earnings growth, delivered and forecast, is meaningfully higher than the market.</p>
<p class="MsoNormal">Your holdings are growing faster than the index, while being more resilient and profitable. The valuation premium to the benchmark has fallen to its lowest level since 2010, with a third of holdings at or below the market multiple. This combination, intact quality, compressed valuation and a broader base of growth drivers, puts the portfolio in a strong position to deliver outperformance. Our philosophy, our team and the quality of the companies that you own are the foundation that allow us to be nimble. Over two decades, International Alpha has outperformed in over 80 percent of rolling five-year periods through cycles that were, at the time, as severe as this one. We remain disciplined, we remain confident, and I look forward to updating you on progress from here.</p>
<p class="MsoNormal">Thank you for watching.</p>
<p class="MsoNormal"> </p>
<h3 class="TABLEHEADER1212pt">International Alpha </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: 92.9923px;">
<tbody>
<tr style="height: 18.6641px;">
<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: 18.6641px;"> </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: 18.6641px; text-align: center;"><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: 18.6641px; text-align: center;"><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: 18.6641px; text-align: center;"><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: 18.6641px; text-align: center;"><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: 18.6641px; text-align: center;"><strong>2026</strong></td>
</tr>
<tr style="height: 37px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px;">International Alpha Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">-15.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">-5.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">9.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">5.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">7.9</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">International Alpha Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-16.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-5.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">9.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">5.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">7.2</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">MSCI ACWI ex US Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-1.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-4.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">13.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">6.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">25.6</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: 93.0001px;">
<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%; text-align: center;"><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%; text-align: center;"><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%; text-align: center;"><strong>10 years</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">International Alpha Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">7.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">0.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">7.5</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">International Alpha Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">7.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">-0.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">6.9</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">MSCI ACWI ex US Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">25.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">7.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">8.9</td>
</tr>
</tbody>
</table>
<p><strong>Source:</strong> Revolution, MSCI. 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></p>
<p><strong>Past performance is not a guide to future returns.</strong></p>
<p>Legal notice: MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.</p>
<h3>Risk factors </h3>
<p>This communication was produced and approved in April 2026 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.</p>
<p>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.</p>
<p>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.</p>
<p>All information is sourced from Baillie Gifford & Co and is current unless otherwise stated. </p>
<p>The images used in this communication are for illustrative purposes only.</p>
<p><strong>Important information<br></strong>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.</p>
<p>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. </p>
<p>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.</p>
<p><strong>Financial intermediaries</strong><br>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.</p>
International Alpha Q1 update
Investment specialist Beatrice Faleri reflects on recent performance, portfolio changes and market developments.
Embracing every shade of growth
International Alpha is distinctly long term. We aim to outperform the MSCI ACWI ex-US benchmark by 2-3 per cent per annum over rolling five-year periods.
Our portfolio contains 60-90 holdings. We seek to take advantage of market inefficiencies by investing across different types of growth company, which given our time horizon allows us to take advantage of their idiosyncratic growth opportunities.
We find these companies through bottom-up research, holding on for the long term to capture the potential benefits of compounded growth.
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 promising process
The International Alpha portfolio has a high active share, a genuinely long-term approach and a blend of high-quality growth companies that looks to exploit market inefficiencies by investing across all shades of growth. To do this we:
- Take a long-term perspective, resulting in low portfolio turnover
- Invest from the bottom up, supported by in-depth fundamental analysis
- Have a quality-growth orientation
- Follow a patient, repeatable process, drawing on the best ideas from firm-wide research
To invest in growth is to say that society will achieve more tomorrow than it does today… Curiosity should be at the heart of all good investment research.
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Strategy portfolio holdings
A list of the top 10 holdings that the representative portfolio invests in.
All figures up to: 30 April 2026
| # | Company | Fund % |
|---|---|---|
| 1 | TSMC | 7.3% |
| 2 | Samsung Electronics | 4.7% |
| 3 | Rio Tinto | 2.9% |
| 4 | Tencent | 2.9% |
| 5 | Deutsche Boerse | 2.7% |
| 6 | B3 S.A. | 2.3% |
| 7 | Roche Holding AG | 2.2% |
| 8 | MercadoLibre | 2.1% |
| 9 | DSV | 2.1% |
| 10 | ASML | 2.1% |
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.
Invest in this strategy
You can invest in this strategy through the following fund(s).
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:
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Insights
Viewing 52 of 52
International opportunities: creative destruction
Paulina McPadden explores how creative destruction can reshape international markets and create long-term investment opportunities.
International viewpoints: China’s innovation economy
Katie Muir explains how China’s innovation economy is reshaping industries far beyond its own market.
Sea surge
Gaming, ecommerce, fintech: why Singapore’s Sea Ltd is a success story.
International Alpha Q1 investor letter
The International Alpha Team reflects on recent performance, portfolio changes and market developments.
International viewpoints: a regime shift
Tia Chen explores the new opportunities emerging from a shifting market regime.
International viewpoints: biotech's next chapter
How ADCs and bispecifics are remaking antibody medicine.
AI and software: beyond the binary
Why lower software valuations may not tell the full story.
International Alpha Q4 investor letter
The International Alpha Team reflects on recent performance, portfolio changes and market developments.
International viewpoints: from bits to atoms
Discover what rising robot density means for global manufacturing, and the tools that make automation reliable.
International viewpoints: the quality derating
Why overlooked quality businesses with competitive moats compound returns through any cycle.
International Alpha: why we do what we do
Why international diversification outperforms: the investing lessons from banana monocultures and resilient portfolios that weather any market.
SMC: Stock Story
Sarah Clark explores how SMC powers automation with precision pneumatics with engineering excellence.
Adyen: Stock Story
Beatrice Faleri explores Adyen, the one-platform engine for unified commerce.
TSMC: Stock Story
Qian Zhang unwraps TSMC, the company powering modern life.
Tencent: Stock Story
Fernanda Lai explores how Tencent became the super-app pioneer connecting over one billion users.
International viewpoints: bubble or boom, trouble is brewing
Is AI in a bubble or a boom? Explore how market concentration, leverage, and global strategies shape the next phase of artificial intelligence.
International Alpha Q3 investor letter
The International Alpha Team reflects on recent performance, portfolio changes and market developments.
International viewpoints: the Asian century
The Asian century is now a structural reality. Explore manufacturing dominance, innovation in chips/EVs/ecommerce, key companies, and risks.
Our best international ideas
Andrew Brown travels the globe through Sweden’s MIPS, Kazakhstan’s Kaspi.kz and Japan’s Keyence.
The power of exceptional companies
Lawrence Burns and Paul Taylor reveal how they identify exceptional companies that drive market returns.
International viewpoints: the case for global supply chain champions
Learn about companies like ASML, TSMC, Adyen and SAP and their irreplaceable positions in enabling digital innovation.
Skin in the game: the power of persistence
Why ‘inside ownership’ makes companies more likely to focus on efforts that will pay off in the future.
Nibblers and gobblers: the art of acquisitive growth
Companies like Constellation Software and DSV have defied the odds to create substantial shareholder value through disciplined acquisition strategies.
International viewpoints: enduring value – investing in brands built to last
Can businesses that blend heritage, stewardship and steady reinvention outperform their flashier, short-term-focused rivals?
International Alpha Q2 investor letter
The International Alpha Team reflects on recent performance, portfolio changes and market developments.
International viewpoints: digital disruptors
MercadoLibre and Sea Ltd are examples of underappreciated digital disruptors driving global growth.
Beyond the familiar: the case for international
Discover how venturing into unexplored investment territory is yielding hidden gems.
A new age of discovery: the case for international
Explore how international equities offer unique opportunities in transformative markets.
Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.
International viewpoints: the end of the road for range anxiety
Explore how electric vehicle innovations are ending range anxiety with faster charging and longer battery life.
International viewpoints: US vs international debate
Signs are pointing to a shift from US to international markets. When has this happened before, and what’s ahead?International Alpha Q1 investor letter
The International Alpha Team reflects on recent performance, portfolio changes and market developments.
Nexans: Stock Story
Lucy Haddow examines the sub-sea cable manufacturer crucial for the offshore wind and energy transition.
ASML: Stock Story
Paul Taylor explores the cutting-edge semiconductor technology advancing the digital revolution.
Moutai: Stock Story
Ben Buckler investigates the Chinese brand dominating the global luxury drinks market.
International viewpoints: Shifting tides toward international markets
The US stock market has outperformed international markets in recent years, but signs suggest a change in this trend.
International viewpoints: Europe's tech tailwinds
The European technology sector excels in niche markets, creating growth opportunities in global value chains.
International Alpha Q4 investor letter
The International Alpha Team reflects on recent performance, portfolio changes and market developments.
International viewpoints: demographic crisis
Meet the problem-solvers already active in healthcare, retirement funding and workforce productivity.
International viewpoints: power players
Companies rising to new energy challenges in diverse ways, and the economies driving demand.
Luxury brands show promise amid slump
How brands like Hermès, Gucci and Ferrari defy downturns with heritage and innovation.
Our best ideas in Asia
Qian Zhang covers Samsung, Delhivery and Bank Rakyat, three companies at the heart of global structural trends.
Our best ideas in Europe
Thomas Hodges uses Lonza, Topicus and Soitec to illustrate why Europe is more exciting than headlines suggest.
The importance of focus
Why focus and patience are crucial elements when investing and identifying growth companies.
MercadoLibre: Latin America’s unbanked
MercadoLibre offers hope to Latin America’s 178 million unbanked population.
International viewpoints: semi-cap resilience
Why our long-term conviction in ASML, Tokyo Electron and TSMC stands up to recent sector volatility.
International viewpoints: global EV trends
Analysing market dynamics, industry challenges and future trends of EVs’ global adoption.
International viewpoints: eastern promise
What market sentiment, recent valuations and policy changes mean for us as investors in Asian growth companies.
China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.
Tilting the odds in your favour
The Magnificent Seven’s reputation goes before them but that’s not enough to save them.
Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
Adapting to survive – and thrive
Using a fighter pilot’s business strategy can help a company orient itself amid change.
View transcript
<p class="MsoNormal"><strong>Your capital is at risk. Past performance is not a guide to future returns. </strong></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"><strong>Beatrice Faleri</strong>: The first quarter of 2026 was one of the most volatile in recent memory, and the portfolio underperformed the benchmark. We know that this extends a period that has tested your patience, and we don’t take that lightly. But we’re looking at the future with real conviction and optimism, and I want to explain why. In the first two months of the year, a handful of themes continued to drive markets. Growth continued to lag value, with banks, defence and commodity producers leading. In March, war in the Middle East intensified this trend and led to a broad market sell-off.</p>
<p class="MsoNormal">Software and consumer platforms fell further amidst AI disruption fears. The derating of software and consumer internet platforms was the most significant drag on performance for the strategy. Any hint of softer guidance in this environment is punished disproportionately. Tencent Music Entertainment is an example of this. It fell sharply after subscriber growth slowed despite revenues and margins continuing to expand. The Middle East conflict also weighed on Ryanair through rising fuel prices and pressure on discretionary spending, but it didn’t dent our confidence in the company’s ability to navigate geopolitical and macro crises better than competitors.</p>
<p class="MsoNormal">On the other hand, your semiconductor holdings were bright spots, driven by continued AI CAPEX and supply constraints in chip manufacturing. Samsung reported record revenues and operating profits on historically high memory prices, while TSMC exceeded expectations with strong N2 yields and progress in advanced packaging. Your energy and material holdings also benefited as the closure of the Strait of Hormuz stoked fears of energy shortages. Petrobras and B3 were among the strongest contributors, as Brazil’s role as a major oil exporter moved to the fore. But beyond all this quarterly noise, the investment landscape is changing in deeper, more enduring ways, and we’ve been positioning the portfolio accordingly. We see three structural forces at work.</p>
<p class="MsoNormal">The first is higher interest rates, driven by global uncertainty and macroeconomic frictions. In this environment, providers of capital earn structurally higher returns, which is why we’ve been adding exposure to financials. Credicorp, the dominant bank in Peru, is one example. Financial penetration remains low in the country, and the success of its super app, Yape, now reaching 70 percent of the adult population, is accelerating growth. KBC, a leading Belgian bank-insurer, is another recent purchase, combining a resilient deposit franchise with exciting growth opportunities in Eastern Europe. Both offer durable growth, strong management and a price that does not reflect the opportunity, in our view.</p>
<p class="MsoNormal">The second force is the reversal of globalisation. Every reshoring decision, every duplicated supply chain creates demand for physical inputs, energy and infrastructure. We have added copper exposure through Lundin Mining and Zijin Mining to high-quality miners in Latin America and Asia. We also bolstered energy holdings with Petrobras in Brazil and Total Energies in France, and added exposure along the energy transmission and storage value chain through CATL, the Chinese global leader in battery technology. The third and final force is AI, whose transformative potential is only matched by the market dislocation and uncertainty it is creating. We seek balanced exposure across the AI value chain.</p>
<p class="MsoNormal">We took profits from semiconductor holdings that have run, and recycled that capital into names like SoftBank, which offers exposure to the AI build-out beyond semis. We’re also carefully assessing the threat AI poses to software holdings. We believe the market has been too quick to separate winners and losers. We’ve exited the names most vulnerable to disruption while retaining, and in some cases adding to, higher-conviction businesses like Shopify, Scout24 and Experian. The breadth of these changes means turnover this quarter has been higher than you’re accustomed to seeing for our strategy, and we want to be upfront about that. But it’s not unprecedented.</p>
<p class="MsoNormal">This strategy has navigated regime change before. For example, repositioning into financials, industrials and energy after the dot-com crash, and into rapid-growth companies in the early 2010s, as low rates and the digital transformation took shape. In both these cases, elevated portfolio activity reflected the breadth of the opportunity, and the strategy delivered some of its strongest returns. Our philosophy is what gives us the room to adapt when the landscape demands it. The result today is a portfolio whose fundamentals have rarely looked stronger, relative to both the index and its own history. Earnings growth, delivered and forecast, is meaningfully higher than the market.</p>
<p class="MsoNormal">Your holdings are growing faster than the index, while being more resilient and profitable. The valuation premium to the benchmark has fallen to its lowest level since 2010, with a third of holdings at or below the market multiple. This combination, intact quality, compressed valuation and a broader base of growth drivers, puts the portfolio in a strong position to deliver outperformance. Our philosophy, our team and the quality of the companies that you own are the foundation that allow us to be nimble. Over two decades, International Alpha has outperformed in over 80 percent of rolling five-year periods through cycles that were, at the time, as severe as this one. We remain disciplined, we remain confident, and I look forward to updating you on progress from here.</p>
<p class="MsoNormal">Thank you for watching.</p>
<p class="MsoNormal"> </p>
<h3 class="TABLEHEADER1212pt">International Alpha </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: 92.9923px;">
<tbody>
<tr style="height: 18.6641px;">
<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: 18.6641px;"> </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: 18.6641px; text-align: center;"><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: 18.6641px; text-align: center;"><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: 18.6641px; text-align: center;"><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: 18.6641px; text-align: center;"><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: 18.6641px; text-align: center;"><strong>2026</strong></td>
</tr>
<tr style="height: 37px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px;">International Alpha Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">-15.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">-5.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">9.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">5.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">7.9</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">International Alpha Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-16.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-5.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">9.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">5.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">7.2</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">MSCI ACWI ex US Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-1.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-4.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">13.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">6.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">25.6</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: 93.0001px;">
<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%; text-align: center;"><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%; text-align: center;"><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%; text-align: center;"><strong>10 years</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">International Alpha Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">7.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">0.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">7.5</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">International Alpha Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">7.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">-0.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">6.9</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">MSCI ACWI ex US Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">25.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">7.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">8.9</td>
</tr>
</tbody>
</table>
<p><strong>Source:</strong> Revolution, MSCI. 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></p>
<p><strong>Past performance is not a guide to future returns.</strong></p>
<p>Legal notice: MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.</p>
<h3>Risk factors </h3>
<p>This communication was produced and approved in April 2026 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.</p>
<p>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.</p>
<p>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.</p>
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<p>The images used in this communication are for illustrative purposes only.</p>
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