Capital at risk

Investment strategy

Europe ex UK

Europe has no shortage of fantastic businesses; it just takes a deeper look to find them. The Europe ex UK strategy does just that to construct high-conviction portfolios of 30 to 50 companies which we think have large growth opportunities. By investing in such companies, we hope to deliver long-term capital appreciation for our clients.

A view of three terraced houses by the canal side in Amsterdam.

Investing in the exceptional

We don’t want to own a collection of ‘slightly better than average’ companies. Instead, we aspire to own Europe’s ‘outliers’ – special companies which have the potential to return a multiple of our investment.

European Equities

Investment manager, Stephen Paice, discusses the Baillie Gifford approach to European Equities.

Aiming to outperform

Our objective is to outperform the MSCI Europe ex UK index by 2-3 per cent per annum over rolling five-year periods. We believe the best way to meet this target is to find companies with the common characteristics that usually go along with great growth potential. These include being managed by exceptional capital allocators as well as having the ability to grow revenues faster than peers, expand profit margins and possess sustainable competitive advantages.

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 chance to deliver with a difference

We do not construct our portfolios in relation to the benchmark, rather we construct our portfolios according to where we think the best opportunities are. As a result, we typically have a very high active share and look different to many of our peers. We also know that a small number of companies tend to drive market and portfolio returns, but patience is required to let compounding work its magic. We think this approach gives us the best chance to deliver on our performance objectives for clients.

For outstanding returns, you must invest in outstanding companies. Not all will work out. What’s important is not how often you are right, but how much you make when you are.
Stephen Paice

Meet the managers

Documents

Philosophy and process

Explore our investment philosophy and the processes around how the team constructs the portfolio.

Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

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You can invest in this strategy through the following fund(s).

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Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 31 January 2024

#Holding% of portfolio
1Ryanair5.4%
2Prosus5.2%
3Schibsted5.0%
4Topicus.com4.8%
5ASML4.7%
6Atlas Copco4.0%
7Kingspan Group3.4%
8IMCD3.3%
9Avanza Bank3.3%
10Spotify3.2%

Strategy holdings by region

All figures up to: 31 January 2024

1Netherlands23.10%
2Sweden19.20%
3France13.50%
4Switzerland9.70%
5Ireland8.90%
6Germany7.90%
7Norway5.90%
8Denmark3.80%
9Italy3.40%
10Poland3.00%
11Others0.70%
12Cash0.80%
Total 100%

Strategy holdings by region

All figures up to: 31 January 2024

Total: 100%

Please note

The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.

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.

How to 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.