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<p><strong>Your capital is at risk. Past performance is not a guide to future returns. </strong></p>
<p> </p>
<p><strong>Katie Muir</strong>: A few weeks ago, we hosted Adam Tooze in our offices, the economic historian at Columbia University. One of our investors asked him whether today's more volatile environment feels unusual, or whether, in fact, this is simply the world we now need to get used to.</p>
<p class="MsoNormal">His answer was clear. This is the world we now live in. And that framing feels very relevant to today. We are operating in a more volatile world, in the economy and in markets. That can be uncomfortable in the short term, but it can also create opportunities for patient, selective investors.</p>
<p class="MsoNormal">In the first half of this year, markets have been driven by a narrow set of narratives, especially around artificial intelligence. That has created a sharp divide. Companies seen as direct AI beneficiaries, particularly in semiconductors and related hardware, have performed strongly. But on the other hand, many digital businesses have been hit hard, in our view, too hard.</p>
<p class="MsoNormal">But our response has been active. We have continued to trim semiconductor holdings where positions have become too large and too correlated, while still keeping meaningful exposure to an area where we have high conviction in long-term growth and upside potential.</p>
<p class="MsoNormal">At the same time, we have broadened the strategy's range of growth drivers by adding holdings such as Roche in pharmaceuticals, TotalEnergies, the French oil major, Sika in specialty chemicals and Unicharm in personal care. We have also taken positions in two high-quality banks in attractive regulatory markets. These actions are about building a more resilient portfolio by applying our philosophy across a wider opportunity set.</p>
<p class="MsoNormal">MercadoLibre is a useful example of why our long-term patient approach matters. It is the leading ecommerce and fintech platform in Latin America and has been held in the strategy for more than a decade.</p>
<p class="MsoNormal">This chart shows the company's revenue and operating income over time. The highlighted period marks an earlier phase when the company was investing heavily, particularly in Brazilian logistics. Margins fell, operating income turned negative, and in the short term, it looked as if business was going backwards.</p>
<p class="MsoNormal">But that investment improved delivery, it increased customer trust, and it helped MercadoLibre build a much stronger position in Brazil. And what happened afterwards is the key point. Revenue grew dramatically, operating income recovered, and the business became larger, stronger, and more valuable.</p>
<p class="MsoNormal">So why does this matter? This is a helpful reminder that we have seen this pattern before, as the company is going through a similar phase currently.</p>
<p class="MsoNormal">MercadoLibre is investing heavily behind what it describes as a once-in-a-generation opportunity to transform how hundreds of millions of Latin Americans shop, pay, and access financial services. In its most recent results, it demonstrated that past investments made are already delivering at the top line, with revenue growth accelerating to 46 percent year on year. That's the fastest rate since 2022. Yet despite that operational strength, the shares fell sharply when the heavier investments were announced, as those will compress near-term margins.</p>
<p class="MsoNormal">To us, that says more about today's market environment than it does about the company's long-term prospects. Markets are often reluctant to reward ambitious investment unless it fits the narrative of the moment. We take a different view. We believe MercadoLibre is doing exactly what a great growth company should do, reinvesting from a position of strength into a very large opportunity.</p>
<p class="MsoNormal">That same mindset shapes how we think about the wider portfolio. We remain ambitious in our search for great growth companies, but we are also adapting the portfolio to a changing environment. And over the last few months, we felt that the strategy was still too narrow in its expression of growth. So, we have accelerated the process of broadening it while staying disciplined about portfolio balance and correlation.</p>
<p class="MsoNormal">So while recent returns have been mixed, we believe the underlying picture is more encouraging than share prices alone would suggest. The strategy today remains differentiated and growth-focused, but with broader sources of return than it had a few years ago. In a world of greater change and greater dispersion, that breadth matters.</p>
<p class="MsoNormal">Our job is to stay patient, stay ambitious, and back exceptional companies through periods of noise and short-term doubt. And as we look ahead, we are genuinely excited by the range of opportunities we see today across international markets.</p>
<p class="MsoNormal"> </p>
<h3 class="TABLEHEADER1212pt">International Growth</h3>
<p><strong>Annual past performance to 30 June 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;"> </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; text-align: center;"><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; text-align: center;"><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; text-align: center;"><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; text-align: center;"><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; text-align: center;"><strong>2026</strong></td>
</tr>
<tr style="height: 37px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px;">International Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">-45.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">16.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 37px; text-align: center;">6.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 37px; text-align: center;">20.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 37px; text-align: center;">4.0</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">International Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-45.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">15.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">5.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">19.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px; text-align: center;">3.4</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">MSCI ACWI ex US Index*</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">-19.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">13.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">12.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">18.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px; text-align: center;">28.3</td>
</tr>
</tbody>
</table>
<p> </p>
<p><strong>Annualised returns to 30 June 2026 (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 93.0001px;">
<tbody>
<tr style="height: 37px;">
<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: 37px; 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: 37px; width: 13.1043%; text-align: center;"><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: 37px; width: 12.713%; text-align: center;"><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: 37px; width: 12.844%; text-align: center;"><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%;">International Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">4.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">-3.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">9.9</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.3387%;">International Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">
<p>3.4</p>
</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">-3.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">9.3</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 ex US Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.1043%; text-align: center;">28.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.713%; text-align: center;">9.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.844%; text-align: center;">10.5</td>
</tr>
</tbody>
</table>
<p><span class="source-text">*MSCI EAFE Index prior to 30 September 2018</span></p>
<p><span class="source-text">Source: 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><br><br></p>
<p><strong>Past performance is not a guide to future returns.</strong></p>
<p>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.</p>
<p> </p>
<h3>Risk factors </h3>
<p>This communication was produced and approved in July 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>
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