View transcript
<p><strong>Your capital is at risk. Past performance is not a guide to future returns.</strong></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"><strong>Kristen Ross (KR):</strong> Welcome, everyone. We are prepared to talk about the Long Term Global Growth Q1 webinar today. My name is Kristen Ross. I'm a member of the US Financial Institutions Group and I'm based in South Florida. We're joined today by one of the investment specialists with the Long Term Global Growth Strategy, Diana Philip.</p>
<p class="MsoNormal">Diana, welcome. How are you?</p>
<p class="MsoNormal"><strong>Diana Philip (DP):</strong> Very well, thank you. Good morning, everybody.</p>
<p class="MsoNormal"><strong>KR:</strong> Excellent. Diana joins us from our headquarters in Edinburgh. So, we recognize that the only thing standing between you and your weekend is us. So we'll keep these comments to 20 minutes or so.</p>
<p class="MsoNormal">Before we get going here, I thought I would lay out the agenda for our prepared remarks. We'll begin today's conversation with a review of our quarterly performance and zoom the lens out more broadly. We'll then turn the discussion over to volatility, and what this means to the underlying investment managers and how compounding returns actually present themselves over the long term.</p>
<p class="MsoNormal">And then we'll shift the conversation to some of the recent trends that we're seeing within the passive and active markets and how it's creating opportunities for the underlying managers. And finally, we're prepared to talk about the SaaSpocalypse.</p>
<p class="MsoNormal">So, Long Term Global Growth: a refresher on the strategy. This is a concentrated global portfolio of 30 to 40 names of some of the most innovative growth companies with an eye over the next 10 years.</p>
<p class="MsoNormal">The process embraces asymmetry, and as such, you'll find that many of the position sizes are rather skewed, letting our winners run. In some cases, position sizes upwards of 10 percent.</p>
<p class="MsoNormal">So let me put a pin on it there. Diana, why don't I turn the reins over to you? Why don't you kick us off with a review of performance for the quarter and more broadly?</p>
<p class="MsoNormal"><strong>DP:</strong> Yes, absolutely. And thank you so much for dialling in. I really hope that this 20 minutes will give you a good insight into the recent quarter, our longer-term track record, and what we've been doing in this environment.</p>
<p class="MsoNormal">You know, it's been a really challenging start to the year for Long Term Global Growth. We've had a market backdrop of a significant rotation to value, which began at the tail end of 2025, the so-called SaaSpocalypse, which we'll come on to later, and the onset of war in the Middle East.</p>
<p class="MsoNormal">And against this backdrop, the portfolio underperformed over the quarter, delivering a negative absolute and relative performance over that period. But I think during periods like this, it's particularly helpful to reflect on the experience that we have over the last 22 years of managing Long Term Global Growth. Because we have been here before, we have managed the portfolio through several periods of heightened volatility and uncertainty.</p>
<p class="MsoNormal">And we've got two charts on the page on the slide here, and I think this is helpful just to zoom out and look at the long-term history of the Strategy.</p>
<p class="MsoNormal">On the left-hand side, you see what you would have made if you had invested $10,000 at the Strategy's inception in 2004 and that compound growth that we have experienced and the smooth trajectory of that. If you'd invested $10,000, you'd have about $130,000 today, which is about double that of the index, if you'd invested the same amount there.</p>
<p class="MsoNormal">But this smoothness that you see really masks the reality behind delivering this exceptional outperformance. And it's that which we're trying to depict in the chart on the right-hand side, which shows the relative quarterly returns of the Strategy over the same period, so over that same 22-year period. You can see that it is a much, much more volatile picture.</p>
<p class="MsoNormal">Now, this is something that we are comfortable with. And as Kristen said, we are seeking to outperform by investing in a really concentrated portfolio of companies that we believe are going to drive disproportionate share of long-term growth for our clients.</p>
<p class="MsoNormal">By doing that, we have to accept that the companies that go on to generate that exceptional long-term performance typically do so with a degree of volatility. They suffer sharp drawdowns and periods of doubt before their fundamentals are really reflected in share prices.</p>
<p class="MsoNormal">Now, the period that we're in today is our eighth absolute drawdown in excess of 10 percent, which you can see on the chart here. And I think that it's really worth noting that the average five-year performance of the Strategy that has followed these periods of discomfort is greater than 200 percent. The lesson here from these periods of drawdown is that it's really the fundamentals that are so important, and we're not trying to predict where we are in such a cycle - it is much more important for us to be looking at the fundamentals of the businesses that we invest in and to reassure ourselves that these are still performing well.</p>
<p class="MsoNormal">The reason that we do this is backed up by data. Now, a few years ago, our Risk Team looked at data which showed the analysis of companies that had experienced drawdowns of over 50 percent, going back to 1999. And it looked at the rebound of those companies, and which ones went on to rebound past their previous peak over the next five years, which is, of course, our investment horizon in Long Term Global Growth.</p>
<p class="MsoNormal">Now, what was interesting to us was that of those 3,000 companies that experienced a drawdown in excess of 50 percent, 2,000 didn't recover within that five-year period. But 1,000 did, so a third of those companies did. And what we looked at was what those 1,000 companies had in common. And it was positive earnings and revenue growth. The companies that didn't recover had negative rates in both earnings and revenue growth.</p>
<p class="MsoNormal">So, when we look at our portfolio and think about how it stacks up today, we're incredibly reassured because today about 80 percent of the portfolio is sitting in the top two quintiles of forecast earnings growth.</p>
<p class="MsoNormal">At the same time, the valuation premium of the portfolio relative to the market is [at] about a 10-year low. And such dislocations between share prices and fundamentals are really rich sources of opportunity for Long Term Global Growth. So, that gives us not only great reassurance, but tremendous optimism for the outlook of the portfolio.</p>
<p class="MsoNormal"><strong>KR:</strong> Thanks, Diana. Just a reminder to everyone, we like to keep the conversation interactive. If you have any thoughts or comments throughout, I will be monitoring that Q&A box, so do feel free.</p>
<p class="MsoNormal">We'll save time at the end for Q&A, but if there's anything you'd like to talk in the moment, please feel free to enter that there.</p>
<p class="MsoNormal">Diana, let's keep it moving. So, if fundamentals are so important for long-term returns, could you talk through some industry dynamics which we're currently seeing and possibly mean that they're increasingly being overlooked by much of the market?</p>
<p class="MsoNormal"><strong>DP:</strong> Yes, absolutely. And again, we've got another slide, which I hope will depict why we have a degree of excitement and optimism, given the changing backdrop against which we're investing.</p>
<p class="MsoNormal">Now, we are seeing that the majority of market participants today are increasingly having less and less regard for those fundamentals – which, as I say, are so important for the long-term success of the companies that we invest in.</p>
<p class="MsoNormal">Now, the chart on the left-hand side shows that, since 2021, an increasing share of market activity is being driven by passive funds, which now hold a greater share of equities than active strategies like us in Long Term Global Growth. But why does this matter? Why are we interested in this dynamic?</p>
<p class="MsoNormal">Well, it means that the flows in the market are increasingly going to the large index constituents, and those passive funds are very much being driven by what is in the index.</p>
<p class="MsoNormal">Now, in Long Term Global Growth, as Kristen mentioned at the outset, we are totally unconstrained by the index. And being free of the shackles of the index and having the ability to hunt wherever we like in the world, and in whichever sector, for the best and most exciting growth opportunities gives us a great degree of optimism, given the majority of the market is being increasingly constrained by the shackles of the index.</p>
<p class="MsoNormal">Another interesting phenomenon is taking place in the market, and you can see it on the chart on the right hand side, which is that an increasing share of the trading volumes that are taking place in the market are now being dominated by quant fund managers, as opposed to long-only fundamental investors like us in Long Term Global Growth. Now, again, why is this important? Why does this matter to us in Long Term Global Growth?</p>
<p class="MsoNormal">Well, the holding periods for such quant strategies can be as short as fractions of seconds. This is really an attempt to monetize headlines, events, sentiment, momentum, with no regard [to] the underlying fundamentals of the companies. Now, for us in Long Term Global Growth, our average holding period is eight years today, and it's over those periods of time that fundamentals are really able to reassert themselves in share prices.</p>
<p class="MsoNormal">We're particularly excited by the companies that we're investing in today. They've got strong competitive advantages. They are investing in their businesses, they're future-proofing themselves at a rate that is double that of the index. And so, these two dynamics are giving us a real degree of optimism and I think increasing our edge as long-term patient investors.</p>
<p class="MsoNormal"><strong>KR:</strong> Thanks, Diana. You mentioned some of the headlines, so let's turn the conversation to the SaaSpocalypse. We saw headlines from OpenAI that came out, and then shortly after, how much in market value was then destroyed among some of these software companies. We have to assume that we're at the beginning days of AI, so the headlines will only grow from here, and so will the gyrations in the market.</p>
<p class="MsoNormal">So specific to this SaaSpocalypse, can you take us through how it's affected the Long Term Global Growth Strategy?</p>
<p class="MsoNormal"><strong>DP:</strong> Yes, I absolutely can, but maybe just to give you a little bit of context.</p>
<p class="MsoNormal">This is something that we have been thinking about very carefully in Long Term Global Growth for a long time now. And I think that one area where we have a great deal of insight that is benefiting the team, particularly at the moment, is our Private Companies Team at Baillie Gifford, where, as you know, we've been increasingly building out the resource and the capability that we have within private companies.</p>
<p class="MsoNormal">And it's through holdings in the likes of Anthropic that we get a real insight into the pace and the sheer scale of disruption that is likely to come. So, this is an area that we've been thinking very carefully about in terms of the potential consequences and implications, but also the opportunities for the portfolio.</p>
<p class="MsoNormal">Now, SaaSpocalypse, and for those that aren't aware, the prevailing narrative here is that AI risks destroying software companies. And this has been responsible for some fairly indiscriminate declines in some of the share prices of companies that we invest in, in Long Term Global Growth</p>
<p class="MsoNormal">Now, there will certainly be winners and losers from artificial intelligence. Some business models are going to weaken, some will remain resilient, and some may even harness artificial intelligence to improve their competitive advantages.</p>
<p class="MsoNormal">We have identified a number of areas in the portfolio where we believe that companies benefit from a really strong competitive edge or moat that is being overlooked by the market in this SaaSpocalypse narrative. And we show them on the slide here and I'll take each of them in turn.</p>
<p class="MsoNormal">But the first is companies that benefit from a moat that comes from hardware-enabled software. Now, this is where companies have a really strong defensible edge that's rooted in proprietary data that is generated from large installed bases of hardware – which is not replicable by artificial intelligence systems, and in many cases gives companies access to really valuable proprietary data.</p>
<p class="MsoNormal">The company that we use as an example is a holding in the portfolio Samsara, which is essentially digitising physical assets. It now has 25 trillion data points and last year it tracked over 80 billion miles that were driven across its fleet of network. AI might make it easier to build comparable software features, but it cannot replicate the large installed base of hardware that is spread across thousands of vehicles and machines, and that's what Samsara is doing. And it's valuable hardware footprint, and proprietary and operational data and workflows that come with it, make this really hard, we think, for artificial intelligence to displace it, than it could a pure software business. And we've used the recent sell-off to build our position and to add to the position in the portfolio.</p>
<p class="MsoNormal">The second area which we think the market is overlooking is the edge that companies have from regulation and trust. Now, these are typically businesses that have really strong relationships with customers, and they're built on deep bonds of trust. They might be companies that are handling very sensitive data. They might be companies that are dealing with very challenging regulatory parameters. The key is that they're deeply embedded in their customers’ workflows, and they're not easily replaced or vibe-coded away.</p>
<p class="MsoNormal">The example that we use is another portfolio holding Axon. This business is now used by 95 percent of US law enforcement agencies, and it sits really at the heart of highly, highly sensitive public safety workflows. They provide evidence, they provide evidence management and software. And it's used in situations where that reliability and that legal integrity are absolutely vital to its customers.</p>
<p class="MsoNormal">And again, it's going to be an area which is incredibly difficult for its customers to switch out of. And again, it's a company that we've built our position up in over the course of this quarter, as we've seen that share price being indiscriminately sold off by the market.</p>
<p class="MsoNormal">The third area is companies that benefit from network effects. These are businesses whose value really lies in the network dynamics that become more useful and valuable as a company scales.</p>
<p class="MsoNormal">The example that we use is Reddit, and I hope that a lot of the people dialling into the call today are active users of Reddit. It is essentially known as the most human place on the internet, and it's really difficult for artificial intelligence to recreate that living network of very deeply engaged communities. The people that use Reddit will know just how valuable being part of those communities can be. It's got over a billion monthly active users now and over 100,000 active communities. And again, it's a position that we added to in this sell-off that we've seen in the first quarter.</p>
<p class="MsoNormal">The final area which we think the market is overlooking are businesses who are using artificial intelligence to go on the offense. These are businesses that are using AI to their advantage, either to drive efficiency or to improve their product that they offer their customers.</p>
<p class="MsoNormal">And the business that we cite here is AppLovin. It's a digital advertising company, and we really think that it sets the bar of what a generation of AI-first companies should look like. It's now processing around 15 billion ad decisions a day, and improves as it does so. It improves targeting, and therefore improves the outcomes that its ad customers, who are advertisers, have, and therefore they spend more on the platform. That in turn will generate more data, which further strengthens the system. And again, it's a business that we added to over this quarter.</p>
<p class="MsoNormal">So, to wrap up on this page, we think that this environment is providing some really interesting and very compelling opportunities to take a different view of the market and to use these dislocations to add to certain names in the portfolio, which we believe have been indiscriminately caught up in this recent sell-off.</p>
<p class="MsoNormal"><strong>KR:</strong> Thanks, Diana.</p>
<p class="MsoNormal">I'll use this opportunity just to plug- The team put out two recent thought-leadership pieces. One of them is around AI. It's actually quite a thought-provoking title where it's AI isn't changing how we do it, it's changing your mind, a really interesting read. It draws the parallels to how literacy changed how our mind works. And AI is to that scale, if not more.</p>
<p class="MsoNormal">And then to our earlier topic on risk, the team recently just put out a piece that focuses more on volatility. So I'll flag those two there.</p>
<p class="MsoNormal">I do see two questions that have come in. While I dig through these, Diane, maybe you could share if there's been any ads to the portfolio?</p>
<p class="MsoNormal"><strong>DP:</strong> Yeah, in addition to the companies which we just discussed, we recently took a new position in a business called Make My Trip. This is India's largest online travel agency, and it's a business that we have followed for a number of years now in Long Term Global Growth. We know it well, it's held within our Emerging Markets portfolios.</p>
<p class="MsoNormal">Since we discussed the business in our stock discussion in October, the shares declined about 30 percent by the time we took a position, with the market really casting it as one of these AI victims. We see things quite differently. This is a business that has really benefited, it stands to benefit from the very strong tailwind of a rapidly expanding middle class in India, which is expected to double by 2030. Which will mean that lots of people, lots more people will have more disposable income to spend on travel.</p>
<p class="MsoNormal">It's interesting, because it's a business that is really ingrained in a highly fragmented ecosystem of suppliers, most of which are very tech-light hotels, and it benefits from this very strong proprietary motion. It's also one of those businesses which is using AI to go on the offense, and it's a business which has developed its own AI assistant called Myra. You can use Myra in almost all of India's 22 languages to plan your travel.</p>
<p class="MsoNormal">And I think it's a really interesting example of a business which we have long admired and where we have taken advantage of the recent dislocation in its share price to build a position for Long Term Global Growth.</p>
<p class="MsoNormal"><strong>KR:</strong> Great. I'm looking at one question that's come in here too, off the back of AI. Have there been any learning lessons over the more recent stock selection in the AI space, particularly any that we might've missed, something we might've been wrong on? Any early-day lessons or, as we've said, long-term time horizon and a newer area for the portfolio? Just curious if the team has any takeaways.</p>
<p class="MsoNormal"><strong>DP:</strong> Yeah, absolutely. I think that one of the areas that we have been increasingly questioning within the portfolio are the pure software businesses.</p>
<p class="MsoNormal">Last year, we already took action in the likes of Workday at the beginning of the year and Datadog at the tail end of the year, whereby we sold completely our positions in those two businesses, where we felt actually that the threat of artificial intelligence was actually far greater for those two businesses, and we took the decision to sell out of those.</p>
<p class="MsoNormal">The other company that we hold which is a pure SaaS business is Atlassian, and it's one that we're actively reviewing at the moment because of precisely those questions about how artificial intelligence could potentially destroy or erode that business's competitive advantage. So, that's one area which we've been thinking about very carefully within the portfolio and already taking action on.</p>
<p class="MsoNormal">Elsewhere, I think it's, you know- We're really excited about the opportunity, both within the portfolio, how these businesses are harnessing artificial intelligence to improve their product and drive efficiencies, and I think that we've used this environment to build up positions in the portfolio where we feel they've been unfairly punished by this recent market narrative.</p>
<p class="MsoNormal"><strong>KR:</strong> Thanks, Diana. Another question that was pre-submitted: Will any market normalise in 2026?</p>
<p class="MsoNormal"><strong>DP: </strong>That's a great question.</p>
<p class="MsoNormal">I think the perspective of our 22 years of investing in this strategy is incredibly valuable, and increasingly so at times like this.</p>
<p class="MsoNormal">We launched LTGG not long after the TMT [Technology, Media, and Telecommunications] bubble burst. In the first few years of our Strategy, we entered the global financial crisis. We then had the European sovereign debt crisis, Trump 1, coronavirus, Trump 2, to name but a few things where conditions have not been normal.</p>
<p class="MsoNormal">I think that, in the moment, when you're living through such periods of uncertainty, it can feel deeply uncomfortable. But I think that perspective that we have of investing across multiple different cycles and times of uncertainty, and really heightened disruption, is very valuable for us as long-term investors.</p>
<p class="MsoNormal">And again, I go back to the fundamentals of the portfolio. That is always what we keep re-examining to ensure that our businesses, and the companies that we're investing in on our clients’ behalf, are poised and able to deliver that long-term outperformance that we seek for our clients.</p>
<p class="MsoNormal">And again, if I go back to the portfolio's exposure to the top two quintiles of forecast earnings score, it's 80 percent today. These are businesses that are reinvesting in their future at a rate that's double that of the index. They're growing their earnings and revenues at a rate that's materially faster than that of the index. And all of this when the portfolio's valuation premium is at a decade low.</p>
<p class="MsoNormal">So, we don't know when conditions will normalise, and I'm sure that when they normalise, we'll be living in a new ‘un-normal’. But for us, we get great confidence from the fundamentals of the portfolio.</p>
<p class="MsoNormal">And then finally, I think a really important point to highlight is the adaptability of the companies that we invest in. As change is accelerating, that ability to be able to adapt and to be run by visionary founders, we think is going to become ever more important in this environment.</p>
<p class="MsoNormal"><strong>KR:</strong> Thanks, Diana. I do not see any other questions that have come in, so if we don't have any others, I think we'll end it there.</p>
<p class="MsoNormal">Just a reminder that next week we have a continuation of the webinar series for a handful of our other strategies.</p>
<p class="MsoNormal">We thank you guys for dialling in today for Long Term Global Growth and for the partnership. And we're looking forward to talking with you all next quarter. Have a great weekend.</p>
<p> </p>
<h3 class="TABLEHEADER1212pt">Long Term Global Growth</h3>
<p><strong>Annual past performance to 31 March each year (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 74.6668px;">
<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;"> </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; 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: 18.6667px; 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; 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; 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; text-align: right;"><strong>2025</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px;">LTGG Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-17.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-17.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">27.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">8.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">5.0</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px;">LTGG Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-18.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-18.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">26.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">7.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">4.3</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px;">MSCI ACWI Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">7.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">-7.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">23.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">7.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right;">20.5</td>
</tr>
</tbody>
</table>
<p><strong>Annualised returns to 31 March 2026 (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 93.3334px;">
<tbody>
<tr style="height: 37.3333px;">
<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: 37.3333px; width: 61.3387%;"> </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: 37.3333px; width: 13.1043%; text-align: right;"><strong>1 year</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: 37.3333px; width: 12.713%; text-align: right;"><strong>5 years</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: 37.3333px; width: 12.844%; text-align: right;"><strong>10 years</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">LTGG Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: right;">5.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: right;">-0.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: right;">15.4</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">LTGG Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: right;">4.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: right;">-1.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: right;">14.6</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">MSCI ACWI Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: right;">20.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: right;">10.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: right;">11.9</td>
</tr>
</tbody>
</table>
<p><span class="source-text"><strong>Source:</strong> Revolution, MSCI. US dollars. Net returns have been calculated by reducing the gross return by the highest annual management fee for the composite. 1 year figures are not annualised.</span></p>
<p><strong>Past performance is not a guide to future returns.</strong></p>
<p><span class="source-text">Legal notice: MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.</span></p>
<h3>Risk factors</h3>
<p>This communication was produced and approved in April 2026 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.</p>
<p>The views expressed should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.</p>
<p>This communication contains information on investments which does not constitute independent research. Accordingly, it is not subject to the protections afforded to independent research, but is classified as advertising under Art 68 of the Financial Services Act (‘FinSA’) and Baillie Gifford and its staff may have dealt in the investments concerned.</p>
<p>All information is sourced from Baillie Gifford & Co and is current unless otherwise stated. </p>
<p>The images used in this communication are for illustrative purposes only.</p>
<h3>Important information</h3>
<p>Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). Baillie Gifford & Co Limited is an Authorised Corporate Director of OEICs.</p>
<p>Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK Professional/Institutional clients only. Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. Baillie Gifford & Co and Baillie Gifford Overseas Limited are authorised and regulated by the FCA in the UK. </p>
<p>Persons resident or domiciled outside the UK should consult with their professional advisers as to whether they require any governmental or other consents in order to enable them to invest, and with their tax advisers for advice relevant to their own particular circumstances.</p>
<p><strong>Financial intermediaries</strong></p>
<p>This communication is suitable for use of financial intermediaries. Financial intermediaries are solely responsible for any further distribution and Baillie Gifford takes no responsibility for the reliance on this document by any other person who did not receive this document directly from Baillie Gifford.</p>
<p> </p>
<p><span class="source-text">194420 10062465</span></p>
