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<p><strong>Your capital is at risk. Past performance is not a guide to future returns.</strong></p>
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<p><strong>Cherry Reynard (CR):</strong> Good morning. I’m Cherry Reynard, your host for Upfront, where we bring you the latest insights on Baillie Gifford’s UK funds. Today I’m speaking with Baillie Gifford partner James Dow, who’ll be answering your questions live. So do send them in by clicking on the dropdown menu on your screen.</p>
<p>Before the audience questions, we have investment specialist Amy Leishman introducing Sea Limited, one of Southeast Asia’s leading digital ecosystems. But first, James Budden joins us to discuss Baillie Gifford’s investment trust range, and if it’s time to consider a truly active approach to investing. </p>
<p>Welcome to Upfront. </p>
<p>Welcome, James. Thanks for joining us today. Now, just to introduce you to the audience, you have been with Baillie Gifford since 2008, and you are currently Global Head of Marketing. </p>
<p>So tell me, what’s on your mind this quarter?</p>
<p><strong>James Budden (JB): </strong>Yes, that’s right, Cherry. And thanks very much for having me. I’m going to talk about three things, I think: the unintended consequences of passive investing, and then give a bit of an update on our investment trust business and how that’s going, and then finish with a couple of new developments that we’re excited about at BG. </p>
<p>So, to start with passive, passive is all the rage at the moment. If you look at flows for the last five years, it’s been dominated by passive and ETF funds, so much so that it now amounts to about 30 percent of all flows in the UK, and up to 50 percent in the US. And that’s very striking, obviously, and a big thing for us active managers. </p>
<p>Now, there’s nothing wrong with passive investment. It’s very cheap at the moment, and certainly for the last few years it’s outperformed. But one of the other benefits it’s meant to provide is a type of diversity across region, sector and stock. And I would contend that that’s not happening anymore, and that is a danger to those who are investing, and a risk that they perhaps are not wholly aware of. </p>
<p>And by this, I mean that the influence of the US tech companies, the hyperscalers, is now so extreme in indexes that it really does dominate. So, if you look at your average global index, you’re looking at 30 percent made up by those sort of companies. And closer to the US, the S&P, it’s 40 percent. Now, this actually amounts to a really big bet on AI, and the ability of those big AI companies to monetise the huge investments that they’re making. </p>
<p>And I think that’s something that advisors should take on board. And actually, recently I’ve seen a couple of examples of passive in practice. I went to a model portfolio service conference the other day, and ten of the 15 funds on show were passive. And I’m not sure how entertaining that was for the delegates. </p>
<p>And also, I’ve come across this concept called ‘evidence-based investing’, which is based on the premise that past performance is a guide to future performance. And that’s obviously contrary to what the FCA have us believe. </p>
<p>But my point is really that I think passive is a lot more risky. The index is not a safe place, and it’s not necessarily any safer than active investment. </p>
<p><strong>CR: </strong>Yes, you mentioned the performance differential there. And obviously, active management has struggled against some of the benchmark indices, particularly in 2025. </p>
<p>What do you see as the main drivers for that gap?</p>
<p><strong>JB:</strong> Yes, that’s very true. And obviously, that’s the root of the current popularity, anyway. </p>
<p>I think we come back here to the hyperscalers, the mega caps, and they’ve been driving this performance – call it the Mag Seven or whatever you want to call it – but they’ve been driving this, the performance of the index. </p>
<p>And it’s been very difficult for active managers to keep up. If you were going to beat the index in that sort of state, you’re going to have to have higher weightings to those sorts of companies as you’ve gone along, because the valuations have increased so quickly and robustly. And that’s an even bigger bet on AI for active managers. So, quite a difficult thing to swallow. </p>
<p>And also, I’d probably come back to the other complication for active managers in the current environment, which is that people are taking very short-term decisions. If you look at what’s driving investors’ opinions, a lot of it comes back to politics, and we’ve seen that with Trump, the Strait of Hormuz. And they’re not particularly looking at fundamentals and how companies are actually doing. </p>
<p>And we’re great believers that that’s what matters, and that company fundamentals drive share prices in the long term. Time is really important to us as investors. Our timescales are five to ten years. We need that time for this to play out. But at the moment, we’re seeing a lot of volatility, and we can be very out of step with that. But the good thing is that this kind of dislocation offers active managers some really good opportunities, and we’re seeing that in our investment trust range. </p>
<p><strong>CR: </strong>Yes. Are you seeing any sign that the investment priorities are starting to change of the market, that this concentration is diminishing at all?</p>
<div><strong>JB:</strong> I think we would like to see it broaden out, and it has been very focused down this channel. But there are other areas, certainly – around fintech, the digitalisation of commerce, the energy transition, pharma, biotech, that sort of thing. And we’re seeing lots of possibilities there, certainly. </div>
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<div><strong>CR: </strong>Yes. Now, back to talking about the trust range. A lot’s been happening recently. Obviously, the most high-profile has been the SpaceX IPO. </div>
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<div>I wonder if you could bring us up to speed on that and tell us what’s happening there?</div>
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<div><strong>JB: </strong>Yes, sure. Absolutely. This is a great advert for active management, isn’t it, because SpaceX was a private company up until ten days or so ago, and that can’t be indexed. But it has been a terrific result for us and our private companies teams. And just, in summary, we invested about £200m across five trusts, predominantly in Scottish Mortgage, or through Scottish Mortgage. </div>
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<div>And at IPO, that was worth some £4bn. So, a great result there, and something which has helped Scottish Mortgage reclaim previous highs up to around £15, and also very good for Edinburgh Worldwide. And this is a trust which people may remember has been under attack from SABA, the hedge fund in New York, who managed to remove the board at the recent AGM. The performance of that trust has been fantastic, it’s up about 70 percent in the last 12 months. </div>
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<div>And also, those sorts of numbers have been replicated elsewhere, as well. We’ve got Pacific Horizon up 100 percent in share price terms over 12 months. And that probably gives, or shines a light, on the idea that it’s not all about the US. You’ve got to look east as well. And there’s some very exciting numbers there. </div>
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<div>And a couple of other changes: Joe Faraday has taken over on the European Trust, and that follows a change that we made on Shin Nippon, our Japanese smaller companies trust, where Brian Lum took over last year, and he’s done very well since he took over. </div>
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<div>We’re working very closely with boards in shareholders’ interests. So, you’re seeing some issuance, share buybacks, continuation votes, tenders, so there’s a lot going on here. And it kind of give the lie to the fact that the sector is some kind of sleepy old place. </div>
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<div><strong>CR:</strong> Yes, absolutely. And just before we wrap up, James – outside of the trust world, is there anything else happening within Baillie Gifford that you should update us on?</div>
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<div><strong>JB: </strong>Yes, a couple of really interesting developments in the last week or so. </div>
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<div>First was the formal launch of our Global Islamic Equity Fund, and that’s been going for about four years. We seeded it. And the track record’s been very good. And now we’re looking to sell it more widely, and we think there’s a huge opportunity here. 25 percent of the world are Muslim. They own 10 percent of the world’s wealth, yet there’s less than one percent of funds which they can invest in through Sharia law. So this is a great opportunity, I think, for that community. </div>
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<div>And the other area is very modern: we launched a tokenised fund the other day, and this is an enhanced yield fund. It’s a UK-registered OEIC. It’s offering a 7 percent yield, and it’s fully on-chain. It’s digitally native, and it issues tokens directly to shareholders. So, this is really breaking new ground and using very new technology. </div>
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<div>So, to sum up, lots of exciting things happening here, and against a background, we think, of generally rising performance over one and three years, at least. </div>
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<div><strong>CR: </strong>Okay, great. Lots going on. Thank you so much for join us today, James. </div>
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<div>Now, for those of you watching live, if you have any questions, simply click on the Ask a Question tab. </div>
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<div>Now, as part of each programme, we feature an in-depth look at some of the transformational companies Baillie Gifford invests in. Today we’re learning about Sea Limited, the company shaping how millions of people shop, pay, play and do business online. </div>
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<div><strong>Amy Leishman (AL):</strong> At any given moment across Southeast Asia, merchants are propping up their phones and going live.</div>
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<div>Millions of customers are scrolling through streams of online sellers, asking questions in real time and watching as their order is shipped for delivery. Shopping looks less like browsing a catalogue and more like entertainment.</div>
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<div>And the company hosting much of this activity is Sea Limited.</div>
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<div>Sea began life in 2009 as a gaming business. Its entertainment arm, Garena, became successful by building games for the phones people actually owned in the region: modest Android handsets, often on limited bandwidth.</div>
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<div>But Garena did more than just generate cash flows. It gave Sea an early understanding of how consumers across Southeast Asia were beginning to use the internet. And what the company saw was a region coming online rapidly, yet one that remained incredibly fragmented.</div>
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<div>Sea understood early that building successfully in the region required localisation almost by default. </div>
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<div>And Shopee was designed with that in mind. The platform feels distinctly different from most Western ecommerce businesses: mobile-first, interactive and highly social. Shopee reflected how consumers in Southeast Asia already used the internet rather than trying to reshape behaviour entirely.</div>
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<div>Over time, that has made it one of the leading ecommerce platforms in the region. And as more consumers and merchants moved onto the platform, Sea began expanding into financial services through SeaMoney. </div>
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<div>What began as a payments tool inside the ecosystem has evolved into digital wallets, consumer lending and merchant finance. </div>
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<div>For many users, these are some of the first genuinely accessible financial products they have encountered.</div>
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<div>And for Sea, it opens another significant opportunity in a region where financial services are still out of reach for many.</div>
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<div>We first invested in Sea in 2017, shortly after it listed publicly. Since then, we have spent considerable time with founder Forrest Li and the wider leadership team, supporting the company through periods of rapid growth, heavy reinvestment and shifting profitability. </div>
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<div>For some companies, that volatility can be a warning sign. For others, it can be the cost of building something much larger. </div>
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<div>That is where patience matters. Our long-term investment horizon allows us the time to make that distinction.</div>
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<div>And after investing in Sea for almost a decade, we think the company has already demonstrated something quite distinct: an ability to evolve alongside the region it serves.</div>
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<div>In a part of the world that is still early in its digital development, that may prove more important than many investors currently appreciate.</div>
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<div><strong>CR:</strong> That was investment specialist Amy Leishman introducing Sea Limited, a company that understands the benefit of building around how people actually live, work and connect. Now, to move on, we’re joined by James Dow for a fund update. </div>
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<div>And a quick introduction. You’re a Baillie Gifford partner and an investment manager for the Scottish American Investment Company, better known as SAINTS. That’s what we’re going to be talking about today. </div>
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<div>Now, to kick off, these are clearly volatile times, big swings, lots of uncertainty. As an active stock-picking fund, how is SAINTS navigating that environment?</div>
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<div><strong>James Dow (JD): </strong>Well, like you say, I think these are exciting times for stock pickers. There’s a lot of fear in the market. There’s a lot of greed in the market. There’s a great deal of volatility. But for stock pickers like ourselves, it’s great. It creates opportunities to find compelling long-term investments at attractive prices. So, excitement is one of the things I feel in these kinds of markets. </div>
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<div>In terms of how SAINTS is positioned and how it’s navigating that, the bedrock, the foundation of the portfolio, is companies where we have conviction in really good long-term growth. </div>
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<div>Our north star here is 10 percent compounding. We’re looking for companies with high conviction in 10 percent earnings growth for a long time to come. And we want them to pay out resilient dividends along the way, which we can pay out to SAINTS shareholders and provide income as well as the growth that comes with that. </div>
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<div>So, that’s really the foundation of the portfolio, and we’re navigating that by making sure everything in the portfolio is doing that job on a fundamentals basis. </div>
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<div>The other way that we’re positioning around this is balance. It’s making sure that we don’t have too much exposure to any one concentration or theme in the market, because I think for underlying shareholders, with this huge volatility and fear and greed, it’s comforting. They want to feel that their portfolio isn’t a massive bet on one thing or the other. </div>
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<div>And so, as managers, we’re again very much making sure that we’ve got balance, we’ve got a range of different types of growth, and we’re not over-indexed or overexposed to one thing. </div>
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<div>And then the last piece of how we’re navigating is just a selectivity about finding those ideas that I mentioned at the start. So, where we see specific names or potential investments that perhaps have become unloved or thrown out of bed for the wrong reason, taking advantage of that and putting those great future investments into the portfolio to deliver growth and earnings and dividends for years to come. </div>
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<div><strong>CR:</strong> Absolutely. Now, there’s no shortage of global equity fund options out there, not least within the Baillie Gifford stable. </div>
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<div>What makes SAINTS different, and how do you see its natural place within a portfolio?</div>
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<div><strong>JD:</strong> I see it really as a core offering for investors’ portfolios if they’ve got a number of different investment trusts, or maybe they’ve got a number of different income-providing investments. Really that core role, which you know by the nature of the portfolio and what we’re doing is going to be more stable, more steady, more reliable, and allows you to take risk around that and take your selective bets elsewhere. So, it’s really playing that bedrock core role, I’d say. </div>
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<div>And it’s offering, I think, a few different things in playing that role. One is real diversification, this breadth of different ideas and drivers that is, I think, so important, particularly in volatile times when people are uncertain about the future and disruptions are happening. That breadth is really important. </div>
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<div>It offers a real cash return, cash-in-hand return. The dividend yield is somewhere around 3 percent at the moment, significantly higher than you’d get from investing in the broad equity market, which yields, I think, now down to about one and a half percent. So you’ve got that cash return and cash in hand as well.</div>
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<div>And then downside protection, I think, is an important part of what we’re offering as well. I think it’s the knowledge that shareholders can have, that who really knows what the next two, three, five years will bring? There’s always uncertainty and risk. </div>
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<div>But if we have an environment where there’s a sharp correction or a collapse, or things are going wrong, then I think that confidence that the nature of what SAINTS invests in, the downside protection from that should be better than your average tracker fund or market fund. It should hold up a lot better in a tough market. So all those different advantages I think SAINTS can offer to shareholders. </div>
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<div><strong>CR:</strong> Yes, absolutely. And obviously, a lot of the market has been focused on AI more recently. We’ve got these big blockbuster IPOs that show there’s still a lot of enthusiasm for the AI theme. </div>
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<div>How are you participating in that within SAINTS?</div>
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<div><strong>JD:</strong> Yes. Look, it’s a terrific new technology. I think we can talk a lot about the market and valuations and so forth, but fundamentally, it’s a fantastic thing. It’s a new technology that will change a lot of different businesses, and we’re already putting it into use, most of us, in our daily lives. It’s a great thing. </div>
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<div>The challenge with it, of course, is that from a market perspective, index perspective, it’s now, I would say, in excess of 30 percent. It depends how you count it. I can see it being as much as 50 percent of the market is really driven by AI. And some pretty punchy assumptions that are being made around some of those companies, and enormous sums of money being spent – I think 750 billion of capex going in, in the next year or two – and that’s an enormous concentration of confidence, if you like, that you’d have to have to have as an investor that it’s going to actually have a payoff. </div>
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<div>So, the way that we’re approaching that is we’re saying, look, this is a real thing. Where are the businesses we can find where we have deep conviction in the competitive advantage and the moat that’s going to endure? And there we will invest. </div>
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<div>So, if we take TSMC, if you look at the moat of that business, it’s very, very, very hard to replicate. It’s going to be a participant in buildout. If you look at Alphabet, which we’ve been buying recently, the full integrated stack from the customer all the way through to custom silicon, those kinds of things, we’ll invest. But we won’t have as much of a concentration as the broader market because it’s too much of an uncertain bet, too much risk in that.</div>
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<div>So alongside that, the way that we’re playing it is making sure we have lots of other different types of growth in the portfolio. </div>
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<div>If I look at, I’ll pick a random example, Fastenal, the US industrial distribution company, incredible growth story around building out into larger enterprises from its mid-size. Nothing really to do with AI. Fantastic growth investment. </div>
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<div>EOG we’ve been buying this year, which should be a real beneficiary of customers diversifying out of the Middle East to other sources of oil and LNG in the US, and they’ve got a great expansion runway there. </div>
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<div>So, balancing the participation in the high-conviction AI companies with other types of growth to give the breadth in the portfolio. </div>
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<div><strong>CR:</strong> Absolutely. Now, the portfolio’s valuation premium is near its lowest level that it’s been over the past decade. Why do you believe that the market is currently undervaluing many of the holdings within SAINTS?</div>
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<div><strong>JD:</strong> You’re right. The numbers are- The nature of SAINTS’ equity investments is that they are high-quality, good, strong companies, and typically those have traded at a premium to the market. That’s no longer the case. </div>
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<div>One metric I like to look at, the free cash flow yield – so not just the earnings but how much of that is actually for shareholders and available for return – I think the market free cash flow yield now is down to about 3.5 percent. For SAINTS, that number is 4.5 percent, so significantly higher yield. So you’re actually getting, if you like, a discount on this equity portfolio on a free cash flow yield basis. </div>
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<div>Why is that? It’s complex, but there’s a few different things. </div>
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<div>What I see and I hear a lot is, because a lot of market participants are sort of obliged to keep pumping money into AI and tech companies because of index weightings and so forth, they’re just selling indiscriminately things to fund that trade. And that’s leading to opportunities for SAINTS, but that’s also why multiples are depressed. </div>
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<div>I think another factor, if we’re honest, is fear. There are some companies, we have a few software companies in the portfolio, where we have high conviction for a variety of reasons. These are almost bullet-proof franchises, but there’s fear around there. What does this mean? What does AI mean? And so, that’s another reason why. </div>
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<div>So, there’s a few different factors in there, but generally, I personally see it as a great opportunity and a valuation discount for a fantastic long-term growth portfolio with resilience. </div>
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<div><strong>CR:</strong> Now, you mentioned the dividend yield there at 3 percent, but part of the great thing about SAINTS is that it’s actually grown its dividends 52 consecutive years now. What underpins that record, and why is that particularly important today, do you think?</div>
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<div><strong>JD:</strong> The real underpinning of it, remember, it’s a natural income stream. So, that dividend is generated by the dividends paid out of the equity portfolio and the other assets that SAINTS owns, and then paid out to shareholders.</div>
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<div>So, it’s underpinned by natural income, and the layer below that is we have this deep philosophical focus on these long-term 10 percent growers with resilient dividends that return cash to shareholders. And that focus is ultimately what’s growing the dividend through thick and thin. </div>
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<div>So, that’s where it comes from. Its relevance today, I think investors who are looking for growth but they don’t want to take as much risk as is required by just buying the market. If they want growth with lower risk, more sleep at night comfort, and particularly if they want an income stream or a cash return, an investor or shareholder who – maybe they’re in their 50s or 60s and they’re saying, look, I really value that income, I want to know that it’s resilient across the market cycle – then SAINTS is a perfect fit for them. Keep hold of your capital, get growth over time, and in the meantime, get this resilient growing income. So I think it’s very relevant to shareholders today. </div>
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<div><strong>CR:</strong> Great. And now just super quickly, just before we go to the Q&A, to bring the portfolio to life a little bit perhaps: which areas of the portfolio are you most excited about?</div>
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<div><strong>JD:</strong> Well, one thing that I’m really pleased with is that, despite the turbulence and the choppy markets, if we look at the underlying fundamental earnings growth of SAINTS’ portfolio, it’s actually right at that 10 percent mark. </div>
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<div>We can see that the companies are continuing, despite all the dislocations of politics and war and technology and so forth, they’re delivering that growth. So I find that very exciting. Not necessarily being rewarded in share price terms, but it is actually there and it’s coming through. </div>
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<div>And that, I think, is a key part of why the board was able to grow the dividend once again in the first quarter. There was a 6 percent year-on-year increase, double the rate of inflation, so that’s very exciting. </div>
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<div>And then I think just selectively picking around the different opportunities that are out there. I mentioned EOG and Alphabet, recent purchases. </div>
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<div>Cullen Frost is another purchase for us. That’s a bank based in the US, expanding its branch network. Fantastic reputation for service, growing its loan book, very prudently and conservatively managed. Totally different type of growth, not particularly flavour-of-the-month at the moment. That’s exciting to us. So, it’s those selective opportunities that make it an exciting time for stock pickers. </div>
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<div><strong>CR:</strong> Okay, great. Thank you, James. </div>
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<div>Now to answer the questions that have been coming in over the programme. </div>
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<div>Now, can you talk through the benefits of an investment trust structure for SAINTS? There’s been a lot of negative press recently about whether it’s fit for the modern era. </div>
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<div><strong>JD: </strong>Yes, absolutely. I’d say, here’s two big ones, not the only ones, but they’re two big ones. </div>
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<div>One is, particularly for that resilient income stream, the dividend that grows ahead of inflation, there’s a huge benefit of the investment trust structure that, alongside the natural income, if we see a drop in that, there’s the ability to top it up through capital sales and smooth the income over time. I think that’s incredibly reassuring to shareholders to know that it’s a 52-year record for a reason. So that’s a real benefit of the investment trust structure versus open-ended. </div>
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<div>And a second one would be the use of gearing – I would say, prudent use of gearing. You don’t want to gear too highly, but a little bit of gearing. SAINTS has borrowings within it, where the average cost is a touch under 3 percent. And that’s incredibly attractive, to be able to use that extra capital at low-cost and then invest that into a range of income-generating opportunities as well. Again, that’s specific to the investment trust structure. So, those would be two. </div>
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<div><strong>CR: </strong>Okay. That sounds great. Does the ballast and the dividend discipline protect SAINTS shareholders during periods of market stress?</div>
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<div><strong>JD: </strong>Yes. Again, that broad range of growth. So, we’re not afraid to own consumer staples or healthcare businesses, or some of the things that, again, they’re not always flavour-of-the-month, but they do provide great resilience, particularly when you have a market downturn. </div>
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<div>In a market downturn, the market is questioning two things. It’s questioning, are the earnings really going to hold up? And actually, is this P/E (price over earnings) multiple appropriate? And those two will give you your share price. </div>
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<div>And typically, in a downturn, those types of businesses, the earnings will be very resilient. You’ll get the cash return as well, by the way. And the P/Es will tend to hold up better, as well. </div>
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<div>So, yes, that’s my point about downside protection. We definitely expect that. </div>
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<div><strong>CR:</strong> Okay. And then I think we’ve got time for just one more. </div>
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<div>Which company would you tuck away and forget in the portfolio for the next decade? Perhaps all of them.</div>
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<div><strong>JD: </strong>Yes, this is always like, which is your favourite child? You must have one, really, mustn’t you, kind of thing. </div>
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<div>You could pick any number of them. I sometimes say Apple. Recreating that, or competing with that, is very, very hard, and there’s so much good growth left ahead of them. Coca-Cola. It’s an old joke – people have been dismissing it for 50 years. Most people still don’t get it, they still don’t understand why that keeps compounding away. </div>
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<div>But there are lots of those in the SAINTS portfolio. That’s the heart of what we do, those kinds of long-term compounders. </div>
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<div><strong>CR:</strong> Okay. Well, we’ll wrap up there. Thanks so much for joining us today, James. </div>
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<div>And thank you all for joining us today, as well. To find out more about the topics we’ve discussed on the programme, please go to the website, bailliegifford.com. </div>
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<div>The UK Intermediaries Team are here to help, so get in touch if you have any questions. Until next time, goodbye. </div>
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<h3 class="TABLEHEADER1212pt">Edinburgh Worldwide Investment Trust plc</h3>
<p class="TABLEHEADER1212pt"><strong>Annual past performance to 31 March each year</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 56.0001px;">
<tbody>
<tr style="height: 18.6667px;">
<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: 18.6667px; width: 33.4992%;"> </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: 18.6667px; width: 13.267%; text-align: right;"><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: 18.6667px; width: 13.267%; text-align: right;"><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: 18.6667px; width: 13.267%; text-align: right;"><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: 18.6667px; width: 13.267%; text-align: right;"><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: 18.6667px; width: 13.267%; text-align: right;"><strong>2026</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 33.4992%;">Share Price (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -32.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -30.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -4.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 5.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 38.2</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 33.4992%;">NAV (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -25.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -24.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -10.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -1.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 35.3</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 33.4992%;">S&P Global Small Cap Index (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> 4.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> -2.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> 13.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> -2.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> 21.0</td>
</tr>
</tbody>
</table>
<p><span style="font-size: 0.75em;">Source: Morningstar, S&P, MSCI, total return in sterling. </span></p>
<p> </p>
<h3 class="TABLEHEADER1212pt">Pacific Horizon Investment Trust PLC</h3>
<p class="TABLEHEADER1212pt"><strong>Annual past performance to 31 March each year</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 56.0001px;">
<tbody>
<tr style="height: 18.6667px;">
<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: 18.6667px; width: 33.4992%;"> </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: 18.6667px; width: 13.267%; text-align: right;"><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: 18.6667px; width: 13.267%; text-align: right;"><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: 18.6667px; width: 13.267%; text-align: right;"><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: 18.6667px; width: 13.267%; text-align: right;"><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: 18.6667px; width: 13.267%; text-align: right;"><strong>2026</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 33.4992%;">Share Price (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 1.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -22.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 1.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 2.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 46.9</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 33.4992%;">NAV (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 2.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -12.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 7.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> -1.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; width: 13.267%; text-align: right;"> 44.9</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 33.4992%;">MSCI All Country Asia ex Japan Index (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> -10.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> -2.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> 2.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> 9.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right;"> 26.4</td>
</tr>
</tbody>
</table>
<p><span style="font-size: 0.75em;">Source: Morningstar, MSCI, total return in sterling. </span><span class="source-text"></span></p>
<p> </p>
<h3 class="TABLEHEADER1212pt">The Scottish American Investment Company P.L.C. (SAINTS)</h3>
<p class="TABLEHEADER1212pt"><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; width: 33.4992%;"> </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; width: 13.267%; text-align: right;"><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; width: 13.267%; text-align: right;"><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; width: 13.267%; text-align: right;"><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; width: 13.267%; text-align: right;"><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; width: 13.267%; text-align: right;"><strong>2026</strong></td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; width: 33.4992%; text-align: left;">Share Price (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;"> 11.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;">3.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;">1.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;">0.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;">2.7</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; width: 33.4992%; text-align: left;">NAV (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;"> 14.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;">8.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;">9.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;">1.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 13.267%; text-align: right;">1.5</td>
</tr>
<tr style="height: 37px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 33.4992%; text-align: left; height: 37px;">FTSE All-World Index (%)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right; height: 37px;"> 12.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right; height: 37px;"> -0.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right; height: 37px;">21.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right; height: 37px;">5.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; width: 13.267%; text-align: right; height: 37px;">18.0</td>
</tr>
</tbody>
</table>
<p><span style="font-size: 0.75em;">Source: Morningstar, FTSE, total return in sterling.</span></p>
<p> </p>
<h3 class="TABLEHEADER1212pt">The Scottish American Investment Company P.L.C. (SAINTS)</h3>
<p class="TABLEHEADER1212pt"><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; width: 20.0663%; text-align: right;"><strong>2021</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; width: 20.0663%; text-align: right;"><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; width: 20.0663%; text-align: right;"><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; width: 20.0663%; text-align: right;"><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; width: 20.0663%; text-align: right;"><strong>2025</strong></td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 20.0663%; text-align: right;"> 12.68</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 20.0663%; text-align: right;">13.82</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 20.0663%; text-align: right;">14.10</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 20.0663%; text-align: right;">14.88</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; width: 20.0663%; text-align: right;">15.92</td>
</tr>
</tbody>
</table>
<p><span style="font-size: 0.75em;">Source: Baillie Gifford & Co. Total dividend per ordinary share. Pence per share. Year to December.</span></p>
<p>The index data referenced herein is the property of one or more third party index provider(s) and is used under license. Such index providers accept no liability in connection with this document. For full details, see <a rel="noopener" href="http://www.bailliegifford.com/legal" target="_blank" title="Legal">www.bailliegifford.com/legal</a> </p>
<p><strong>Past performance is not a guide to future returns.</strong></p>
<h3>Important information and risk factors</h3>
<p>This communication was produced and approved in June 2026, and the Stock Story was produced and approved in May 2026. Neither has been updated subsequently. They represent views held at the time of recording and may not reflect current thinking.</p>
<p>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.</p>
<p>The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies.</p>
<p>Baillie Gifford & Co and Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA).</p>
<p> </p>
<p>The specific risks associated with the Trust include:</p>
<ul>
<li>SAINTS invests in overseas securities. Changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up.</li>
<li>The Trust can borrow money to make further investments (sometimes known as “gearing” or “leverage”). The risk is that when this money is repaid by the Trust, the value of the investments may not be enough to cover the borrowing and interest costs, and the Trust will make a loss. If the Trust's investments fall in value, any invested borrowings will increase the amount of this loss.</li>
<li>SAINTS has some direct property investments, which may be difficult to sell. Valuations of property are only estimates based on the valuer's opinion. These estimates may not be achieved when the property is sold.</li>
<li>The Trust invests in emerging markets where difficulties in dealing, settlement and custody could arise, resulting in a negative impact on the value of your investment.</li>
<li>The Trust can buy back its own shares. The risks from borrowing, referred to above, are increased when a trust buys back its own shares.</li>
<li>Market values for securities which have become difficult to trade may not be readily available and there can be no assurance that any value assigned to such securities will accurately reflect the price the Trust might receive upon their sale.</li>
<li>The Trust can make use of derivatives which may impact on its performance.</li>
<li>Corporate bonds are generally perceived to carry a greater possibility of capital loss than investment in, for example, higher rated UK government bonds. Bonds issued by companies and governments may be adversely affected by changes in interest rates and expectations of inflation.</li>
<li>Share prices may either be below (at a discount) or above (at a premium) the net asset value (NAV). The Company may issue new shares when the price is at a premium which may reduce the share price. Shares bought at a premium may have a greater risk of loss than those bought at a discount.</li>
</ul>
<p>Further details of the risks associated with investing in the Trust, including a Key Information Document and how charges are applied, can be found in the Trust specific pages at <strong><a rel="noopener" href="http://www.bailliegifford.com" target="_blank" title="Baillie Gifford website">bailliegifford.com</a>,</strong> or by calling Baillie Gifford on <strong>0800 917 2113</strong>.<s><strong><br><br></strong></s><span class="source-text">199707 10064121</span><s><strong><br></strong></s></p>
