Capital at risk

Investment strategy

International Growth

We aim to deliver attractive long-term returns to clients by being patient owners of exceptional growth companies. We believe disruptions are happening in many economic sectors at different speeds. We are interested in investing in two types of growth company: those able to grow very rapidly and those with durable growth prospects.

Silhouette of a man standing by a lake shore and looking at a beautiful aurora borealis on the sky with reflections on the calm lake.

Searching for outliers

International Growth seeks to invest in outstanding growth businesses, that possess a strong competitive advantage and have a culture that allows them to maintain that advantage in a sustainable way.

International Growth Q4 investment update

Client relationship director Nick Thomas and investment specialist Hamish Maxwell give an update on the International Growth Strategy covering Q4 2023.

Embracing the exceptional

Our objective is to outperform the benchmark by 3 per cent per annum (net of fees) over rolling five-year periods. To do so, we buy and hold shares in exceptional growth companies with a five-to-ten-year investment horizon in mind.  

Our diversified portfolio contains more than 50 holdings. 

We embrace the concept of asymmetry of equity returns and adopt a thinking approach based on probability when building upside scenarios. 

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.

Patience in an impatient industry

Being long-term owners of companies on behalf of our clients is our main advantage in an impatient industry.  

As active stock pickers, our edge also comes from being willing to get things wrong in our search for outliers and seeking wisdom from outside the financial system.  

Our resulting portfolio usually displays a high active share and a low turnover.

Exceptional growth companies can thrive in even the most inhospitable macroeconomic environments by harnessing innovation.
Lawrence Burns

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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Strategy portfolio holdings

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

All figures up to: 31 December 2023

#Holding% of portfolio
1MercadoLibre7.01
2ASML6.50
3Ferrari4.90
4Spotify4.47
5Adyen4.13
6Atlas Copco3.96
7TSMC3.62
8L'Oréal3.55
9argenx3.42
10Genmab3.12

Strategy holdings by sector

All figures up to: 31 January 2024

1Information Technology23.96%
2Consumer Discretionary23.40%
3Financials14.29%
4Health Care10.98%
5Industrials10.96%
6Communication Services9.02%
7Consumer Staples5.37%
8Materials1.30%
9Cash0.72%
Total 100%

Strategy holdings by sector

All figures up to: 31 January 2024

Total: 100%

Strategy holdings by region

All figures up to: 31 January 2024

1Europe (ex UK)59.82%
2Emerging Markets23.24%
3Developed Asia Pacific12.91%
4UK2.60%
5Cash0.72%
6North America0.72%
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.

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Curious to learn more about our products and what we can offer you? Please get in touch.