Capital at risk

Investment strategy

Sustainable Growth

We believe that investors don’t need to choose between making a profit and making a difference for society. In fact, the two are often mutually reinforcing. We call this a virtuous circle. Our team seek rare firms that can grow earnings at a double-digit rate for over a decade, enhancing their ability to contribute positively to people, planet and prosperity.

Aurora Borealis. as viewed from space.

A broad view of sustainability

We observe sustainability through a wide-angle lens. We believe companies can make a difference to society through what they do or how they do it. This gives us a broader opportunity set and enables us to build a more diversified and resilient portfolio. A portfolio that is sustainable in both senses of the word, seeking enduring growth that delivers enduring good.

Sustainable Growth Q4 investment update

Investment manager Katherine Davidson and investment specialist Alasdair McHugh give an update on the Sustainable Growth Strategy covering Q4 2023.

Seeking out rare firms

Sustainable Growth has a single financial objective: to add material value for our clients over the long term. We believe the best way to achieve this is by investing in a diverse portfolio of sustainable companies and holding them for the long term (by which we mean a decade, ideally longer).  

Doing so lets the power of compounding work its magic and allows time for the all-important intangibles to be reflected adequately in share prices. Ultimately, we aim to deliver a portfolio our clients can be proud of, both for its sustainability credentials and its financial returns. 

Investing to make a difference

We seek to invest in companies that make a difference in one of two ways: with what they do – products or services which have a clear positive impact; or how they do it – business practices that help to shape industry standards and inspire wider change. 

Our framework lays out how companies are contributing to one of three broad themes: people, planet or prosperity.  

For full transparency we present our portfolio according to these classifications in all communications with our clients. 

We want to invest in businesses that are resilient and in control of their own destiny financially – those that make their own weather.
Toby Ross

Meet the managers

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
1Workday4.2%
2MercadoLibre3.9%
3TSMC3.1%
4Beijer, G & L AB3.0%
5Atlas Copco3.0%
6Shopify3.0%
7NVIDIA3.0%
8UnitedHealth Group2.7%
9Mastercard2.7%
10Alphabet2.6%

Strategy holdings by region

All figures up to: 31 January 2024

1North America47.30%
2Europe (ex UK)25.20%
3Developed Asia Pacific10.50%
4Emerging Markets9.70%
5UK6.60%
6Cash0.70%
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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You can invest in this strategy through the following fund(s).

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Making a difference

Our clients want a portfolio they can be proud of, both for its investment returns and for the benefit it delivers for society. We believe companies can make a difference in one of two ways, either through what they do or how they do it. We invest in firms with products or services that have a clear benefit to society, or where leadership in business practices helps shape industry standards and inspire wider change.

Illustration of blue and gold fractal pattern of spheres on a black background.

Sustainability report

Sustainability means different things to different people. We commit to full transparency so that our clients can assess how their values align with ours. In our 2023 Sustainability Report we show how portfolio holdings are helping tackle the biggest challenges facing society today; challenges of people, planet and prosperity. We also include case studies of the year’s most notable engagement activity, analysis of company alignment with the UN’s Sustainable Development Goals and the results of our annual climate audit. 

People, planet, prosperity

For every prospective holding we try to understand which of the world’s biggest problems the company is addressing, this could relate to people's welfare, the planet’s condition or broadening prosperity. Within each of these, a diverse set of sustainability themes gives our clients a clearer picture of how the companies they invest in are making a difference. Learn more about this in our Sustainable Growth hypotheses.

Sustainable Growth hypotheses

Explore why we invest in some of our largest holdings.

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.