Investing in Innovation
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.
First imagine how the future could look. Then take the right steps at the right time to make that vision reality. The formula works as well for long-term savers as it does for entrepreneurs building great businesses.
Baillie Gifford offers its clients the chance to invest in innovation via companies with a clear idea of their role in the future. It’s often their own innovations – products, services and business models – that are leading us there.
Through our investment trusts and other funds, we give our investors a stake in these exceptional companies. They could be healthcare innovators improving therapies by tailoring them to our genetic makeup, such as vaccine maker Moderna, or gene sequencers such as Illumina, helping to decode disease.
They could be advanced battery cell makers, such as Sweden’s Northvolt. They could be Spotify, streaming music for millions, or Shopify, helping small traders set up stall in cyberspace.
These are the companies finding shortcuts to a better future – the healthier, more efficient, more equitable and sustainable world we want our children to inherit.
Over the decades, Baillie Gifford has amassed specialised skills, insights and networks. We put all these to work to construct carefully balanced portfolios. These trusts and funds contain what we think are the world’s best companies: the ones that see most clearly the dynamics of global change.
We’re getting better and better at identifying these companies, and at partnering with them at each stage of their development. We call this Actual Investing. Continual exchange of expertise and experience with visionary business leaders works to our mutual advantage. The goodwill generated by our support in good times and bad helps us identify new opportunities, often with companies yet to list on the stock exchange.
We like businesses that adapt, evolve and innovate to achieve their vision, and which aren’t just focused on quarterly earnings targets. That includes well-established companies that have reinvented themselves, sorted out problems, or exploited openings into adjacent markets. What they all have in common is a knack for providing – sometimes anticipating – what customers want.
When their progress is recognised more widely, we want our clients to stay with us and reap the benefits, helping them achieve their long-term financial goals. When they come to retire, the transformations accelerated by the companies we spotted, maybe decades previously, will be widely taken for granted. Hindsight after all, is a wonderful thing.
Baillie Gifford favours foresight which is far rarer and much more rewarding. Achieving it takes decades of experience, great sources of academic and commercial intelligence, and the ability to ask ‘what if?’.
What happens if gene sequencing for newborn babies becomes possible? What happens if low Earth orbit satellites slash the cost of internet access? What if solar cells on the ground become worth more than the oil under it?
The truth is, we don’t yet know. But long-term client benefit comes from our knowing what questions to ask, and knowing the businesses providing answers in years to come.
Investments in private companies may be more difficult to sell, so changes in their prices may be greater.
This communication should not be considered as advice or a recommendation to buy, sell or hold a particular investment. This communication contains information on investments which does not constitute independent investment research. Accordingly, it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned.
Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions.
Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority. Baillie Gifford & Co Limited is an Authorised Corporate Director of OEICs.
All data is source Baillie Gifford & Co unless otherwise stated.
Past performance is not a guide to future returns.
51866 IND WE 1968
YOU MAY ALSO LIKEInsights.Visit Baillie Gifford's Insights page.Why this crisis favours growth stocks.Growth stocks have generally fared better than value stocks during the coronavirus downturn. Tom Slater, partner and head of Baillie Gifford’s US Equities Team explains why.Baillie Gifford European Growth Trust AGM.Stephen Paice, investment manager of the Baillie Gifford European Growth Trust plc, gives an update on investment philosophy, performance, portfolio positioning and outlook.The Monks Investment Trust PLC Webinar.Spencer Adair, newly appointed co-manager of the Monks Investment Trust, explains why the investment approach will not change. He sheds light on the past and current positioning of the portfolio, the fundamental strategy of the team involved, and the core philosophy of Monks that has been largely unchanged throughout the trust’s history.