In this series of articles, we highlight companies in the Scottish Mortgage portfolio that are taking technological advances to the next level, a new generation of companies who will reshape our world and what is possible in the years to come.

In this series of articles, we highlight companies in the Scottish Mortgage portfolio that are taking technological advances to the next level, a new generation of companies who will reshape our world and what is possible in the years to come.

The out-of-date negative perceptions surrounding emerging market government bonds means that for genuinely active managers, the asset class can provide great opportunities to add value.

Cement accounts for 5 per cent of global carbon emissions and Cemex, a leading Mexico-based producer lacks governance and sustainability appeal. But we cannot ignore well-financed companies whose products contribute to economic growth, least of all when they promise to travel the road to redemption. Compromise is essential.

Weakening economic conditions are prompting governments in emerging markets to tighten up their policy framework. And that additional rigour is, in turn, creating attractive investment opportunities in some bonds, according to Yannis Lykouris.

Can China survive the massive upheaval it is undergoing and emerge unscathed as a leader in the digital economy globally? Dora Bucklucikova addresses this question in Postcards from China, illustrated by Mitch Blunt.

Danish government policies in favour of wind power generation have fostered the development of Ørsted over the last decade. The dual-track approach shows how clean energy can become financially resilient, as concerns over climate change increase.

It’s essential to be realistic and keep the risk of over-optimism in check. But there’s plenty to feel positive about in emerging markets, says Tim Erskine-Murray, who offers an insight into the reasons for his unwavering enthusiasm.

Two of Southeast Asia’s biggest nations are following China into rapid tech-led growth says Ewan Markson-Brown, manager of Pacific Horizon Investment Trust and co-manager of Baillie Gifford’s Pacific fund.

Managers Stephen Paice and Moritz Sitte on the Baillie Gifford European Growth Trust plc.

The opportunities in emerging markets and Asia are vast and varied. Andrew Stobart, portfolio manager of the Baillie Gifford Managed Fund, talks telecoms, semiconductors and ear implants.

Just because Trump says he might favour a trade deal with China, this doesn’t mean he will be supportive a few days on. Macro-noise is a risk to credit analysis and our approach is simple. Except in extremis, we take no view of it whatsoever.

With stable, inflation-linked cash flows, infrastructure may offer both a good source of return and diversification benefits within a multi-asset portfolio. Investment Manager James Squires takes a closer look at the asset class and its key characteristics.

Paul Dilworth explains why investing in European bank equities may be a better idea than many might think.

Splitting hairs or a useful risk indictor? Allen Farrington addresses sector classification and why our industry has got it wrong when it comes to comparing technology companies.

Toby Ross on how we engage on responsible taxation.

Long-Term Return Expectations sets out the Multi Asset Team’s views, as at 30 June 2019, on the prospective returns for asset classes over the next 10 years, and beyond.

Jenny Davis explores the Asian opportunity.

Disruptive forces are at play, and they are far more powerful and enduring than most would give credit for. Dave Bujnowski explores what the consequences are of this upheaval, and whether this is good or bad news for growth investors.

Torcail Stewart, investment manager in Baillie Gifford’s Credit team, wants those who are investing in bonds to slow down and take some tips from island living.

Investment Manager, Kate Fox explores how fashion might evolve from eco-culprit to eco-warrior, and where investment opportunities might arise along the way.

Three years ago, in the run-up to the Brexit vote, a single soundbite seemed to sum up the mood of one side of the debate, and indeed of a much broader, international populism that rejected received wisdom on many things, from immigration to immunisation. Michael Gove, one of the leading Brexiteers, was repeatedly quoted as having said, “I think the people of this country have had enough of experts...”.

Tom Slater, head of Baillie Gifford’s US Equities team reports on how visionary businesses are looking beyond current market events and thinking about the future.

Baillie Gifford’s over-arching ethos is that we are ‘actual’ investors. Our approach to stewardship favours a small number of simple principles which help shape our interactions with companies.

Governance and Sustainability analysts Michelle O’Keeffe and Laura Thomson answer some of the most common climate change questions they are asked in relation to climate change and Baillie Gifford’s position regarding it.

We wager that what you think you know about US equity investing is wrong. Investment Manager Helen Xiong lays her cards on the table as she busts the three most common misconceptions surrounding active investment in US equities.

With online companies currently dominating sales, it is widely expected that the need for tangible stores will continue to decrease, but Baillie Gifford has spotted a rise in forward-thinking companies who are utilising physical spaces to provide an innovative and interactive shopping experience.

In Baillie Gifford we have a very different perspective on 2018, and hence the future, than the one you will be used to reading about.

We chose to buy Australian bonds when they were unpopular – and it has paid off.

If you can’t see past the clichés, then investing in emerging market bonds is probably not for you. But for those prepared to strip away the labels and look to the future, there are positive stories out there waiting to be found.

Stephen Corr makes the case for the defence of international equities, arguing that while the US market has been shrinking, international markets continue to expand.

With their curiosity for learning undiminished, Global Alpha’s investment managers share where they think their quest for learning will take them in the year ahead.

The investment management industry is often accused of failing to put clients’ interests first. Tom Coutts investigates and considers what we should be doing differently.

Investment managers Lawrence Burns and Paulina Sliwinska share thoughts on future trends with Professor Brian Arthur.

The search for new investment ideas can be a demanding journey. Joe Faraday draws comparisons with some of history’s great explorers and explains why he is excited by opportunities that lie beyond the horizon.

The Baillie Gifford US Equities team believes extended research trips are a valuable way of gaining deeper insight into companies and disruptive industries. Kirsty Gibson recently spent time in the US finding out about Synthetic Biology.

Toby Ross shows how Baillie Gifford’s growth approach to income investing, starts from a very different philosophical position compared with our peers. Take a look from a different angle.

Investment manager Brian Lum explores how their radar framework helps Baillie Gifford’s International Smaller Companies team to uncover exciting small businesses around the world.

Stewardship is often little more than a buzzword in the investment industry. For our Global Stewardship team, however, a thoughtful, practical and long-term approach to stewardship is making a difference for clients.

We think ‘long-term investing’ and ‘ESG investing’ are synonymous. That’s why financially-relevant ESG considerations are integral to our investment process. Baillie Gifford’s International Equity Fund shares its approach to ESG matters, suggesting that it is a natural part of assessing the longer-term risks to a company’s growth opportunity or competitive advantage. And, something that is hard to replicate via a check-list or passive investing.

Our lives are increasingly cluttered by information overload. And, as Iain Campbell explains, having too much data can hamper rather than improve the process of investing. The key is to ignore irrelevant noise and focus on the drivers of long-term investment returns.

Our International Alpha team on why collaboration helps lead to wiser investment decisions.

The future of medicine is likely to be fundamentally different from what we know today. Investment Manager, Rose Nguyen, discusses the technological advances that are likely to transform life science in the coming decades.

Chris Davies explains how latent growth stocks can overcome stumbles, like Finnish runner Lasse Viren in the 1972 Olympics, and provide lucrative returns for the patient long-term investor.

Many things affect the ebb and flow of an economy, especially in these interesting times. Surely what our politicians do and say reflects on the financial markets? Gerald Smith considers how much politics might really matter.

Lucy Isles explains how the High Yield Bond team has incorporated ESG into its investment process, seeing it not just as a tool for managing risk, but for identifying investment opportunities too.

One ought to be an optimist to invest in Emerging Markets, but so very few analysts are. Baillie Gifford’s Emerging Markets team explain how they fly in the face of market inefficiencies in their search for excess returns.

Lee Qian discusses the recent evolution of impact investing and explains why the Positive Change strategy has both the ability and the responsibility to contribute to global progress.

Many patients with kidney failure face an agonising wait for a donor or a life on dialysis. However, as Julia Angeles writes, new technologies may offer a brighter future.

In 2017, the Emerging Markets team wrote a paper called ‘Morbid Symptoms’, explaining why they were optimistic despite the confusion of political events in the West. A year on, Will Sutcliffe provides five more reasons to be cheerful about emerging market equities.

Peter Singlehurst explains why LTGG have started investing in more unlisted companies, and describes his enthusiasm for some of the private companies currently in the portfolio.

Global Alpha's investors highlight their growth investing philosophy, with examples of how they incorporate growth stocks into the portfolio across the four growth categories.

The story of investing is really the story of the big winners, those exceptional companies that reshape our world and in the process reap the rewards. Lawrence Burns sets out how a long-term and patient approach to investment is necessary to identify those truly great companies that could drive extreme returns.

Historical precedence would indicate that technological progress doesn’t cause long-run unemployment. With the phenomenal progress now being made in artificial intelligence, investment manager Lawrence Burns looks at why the new challenges it presents won’t change that.

Active management in emerging markets - Claire Gillies and Andrew Keiller explain why it is important to be selective rather than follow the index and outline the potential rewards such an approach can bring.

The companies held within the LTGG portfolio are not just generating returns for shareholders, they are also reshaping the world. The LTGG team take a closer look at some of the companies within the portfolio that are making the world a better place for everyone, not just their shareholders.

Home to many of the world’s greatest companies, the United States should be the active investment manager’s dream. Not so for everyone, it seems. Swimming against the tide of passive and mediocre active investment strategies, Head of US equities Tom Slater endorses a genuinely active, long-term approach to investing in the American dream.

China may indeed be sitting at the bottom of an opportunity curve, but will its ‘new economy’ deliver, or will China go the same way as its neighbour, Japan? Andrew Keiller explains why China won’t be the next Japan.

Stuart Dunbar discusses the woes of what our industry has become alongside the potential opportunities presented by its somewhat over-evolved state.

Investment manager Julia Angeles strikes an optimistic note as she explores some of the recent developments in healthcare, which one day she hopes will bring an end to cancer.

Investing in equities is a long-term commitment. In this article, we explain why market movements are usually irrelevant and why shareholders should look past immediate events and focus on the long term.

Joe Faraday shares his enthusiasm for the importance of cities as growth drivers, explaining how access to world-leading academics and their research has shaped his thinking.

Julia Angeles, an investment manager in the EAFE Alpha team, considers how scientific developments have led to changes in the diagnosis and treatment of diseases, and why the current rate of progress is set to accelerate in the coming years. Angeles also explains why she opted to undergo genomic testing.

To build great businesses, company management should understand how a company’s culture can affect shareholder value. Gary Robinson looks at how having a distinctive culture can create great opportunities for those looking to invest in thoughtfully managed companies.

It is taken for granted that stocklending is a harmless activity that can produce a little extra return with limited risk. But is this really so? Scott Nisbet investigates.

Although Japan appears to be late to the unlisted party, there are promising signs of change. Andrew Brown considers how investors should approach unlisted opportunities in Japan to help clients gain access to the most exciting growth businesses.

Technological and societal advances are often predictable, at times, almost inevitable. Ultimately, they are exploitable for the benefit of our clients. Tom Slater explains why this is so when investing in US equities.

Japan often has a reputation for low dividend payments. Investment Manager, Karen See explains why this has not always been the case in the past and might not be in the future.

The ACWI Alpha team reflects on why markets continue to be enthralled with short-term performance, despite the evidence pointing to the importance of taking a long-term investment approach.

As the UK’s exit from the European Union looms, there is no shortage of doomsayers taking the view that investing in UK stocks might be a foolish thing to do. Milena Mileva has a more optimistic outlook and examines several exciting British businesses that have the potential for significant long-term growth.

Toby Ross discusses whether there is a relationship between a fund’s starting yield and the amount of income it actually delivers over time.

To build great businesses, company management should understand how a company’s culture can affect shareholder value. Gary Robinson looks at how having a distinctive culture can create great opportunities for those looking to invest in thoughtfully managed companies.

The investment environment in Japan is undergoing significant change. Labour remains in short supply, while productivity improvements and employee satisfaction are being prioritised. With wages rising, will the country finally escape deflation?

While equities offer the income-seeking investor scope for both income and growth, investing in the domestic equity market may not be the answer for UK investors. Instead, portfolio managers Toby Ross and James Dow cast their net globally, seeking out the resilient, growing businesses that they think will deliver a diversified, dependable income stream over time.

For those navigating the investment world to seek out sources of income, the ability to understand connections and build an accurate mental map, is critical. Sally Greig sets the record straight on an often overlooked asset class – local currency EM bonds – suggesting that, contrary to popular belief, they may have a place in actively managed investment strategies.

What does the word ‘culture’ mean to you? Mark Urquhart ponders the topic, focusing on why, for long-term investors, measuring and understanding corporate culture is such an important indicator of a company’s ability to succeed.

China has a vision. A vision to re-establish the network of land and sea corridors once known as the ‘Silk Road’. Linking East with West, Tim Gooding considers how this network will provide opportunities, not only to those countries who will host the new trade routes, but to long-term investors in the region.

At Baillie Gifford we don’t manufacture performance, our aim is to craft it. Kevin Fenelon notes that as important as a robust research framework is, if we are to find the right stocks, then our investors must be prepared to have an open mind, embrace risk and think creatively about the future.

While there is a move away from active management in the US, our US Equities team think it is misplaced. Technology-driven change is creating exciting companies in the US with exceptional prospects, thereby presenting opportunities for active, long-term investors to outperform passive investment strategies.

Technological evolution continues to occur at an ever-increasing pace. Douglas Brodie looks at some of the areas likely to see the greatest change in the coming years, and the investment opportunities that will open up as a result.

The active investment industry as a whole appears to have done a better job of enriching itself than adding value for clients. Is it worth defending? Stuart Dunbar thinks so. He believes there is value in employing good active fund managers. He sets out the approaches that he believes are most likely to deliver outperformance for clients, suggests why investors and investment managers have failed to implement them and what should be done regarding it.

Great minds and brilliant ideas change the world. Mark Urquhart looks at the similarities – and differences – between the Wright brothers over 100 years ago and today’s innovators, and considers the impact of innovation on investment opportunities.

With the power to transform every trade and every industry, artificial intelligence (AI) is the future that is here today. Investment manager Lawrence Burns reflects on some of the recent developments in the field and speculates on what the brave and wonderful new world of AI might mean for us all.

Political uncertainty in developed markets may be grabbing headlines, but it’s not the full story for emerging markets. Investment manager Will Sutcliffe explains his optimism for the future, as the old grudgingly gives way to the new in certain emerging market economies.

Investment Manager Iain Campbell does not claim that Baillie Gifford’s investors are cleverer, have better systems or information, or that they work harder, travel further or construct more complex spreadsheets. Rather, he elaborates on an identifiable market inefficiency that our unusual structure and long-term philosophy allows us to exploit.

Whereas manufacturing once provided developing countries with a clear economic development path, robotics has made the route more challenging. Lawrence Burns explores the dilemma India now faces and suggests a possible route for its future development.

With the lifespan of companies shrinking, pinpointing those companies that will endure matters. Investment Manager Mark Urquhart illustrates the power of compounding and the role special cultures and management play in increasing a company’s odds of longevity.

Kevin Fenelon illustrates that you don’t have to be an early riser to generate superior returns, but you must be prepared to hold stocks for multi-year periods if you are to capture the real benefits of growth.