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Welcome
Key Points
- The Developed International Strategy turns 30 this year
- To mark the anniversary, this anthology of articles and infographics explores its investment past and looks to growth companies of the future
- They explain our investment approach, how we seize on opportunities others miss and why consistency matters
Please remember that the value of an investment can fall and you may not get back the amount invested.
Our Developed EAFE All Cap Strategy has a long, proud history. Launched in the early 1990s, it now celebrates its 30th anniversary.
It’s been an eventful, exciting time. And we would like to enlighten you about our past and explain to you how we evolved and improved our investment approach.
Cast your mind back to...1992
Clinton became US President, Batman Returns and Sister Act filled cinemas, Rhythm is a Dancer topped the charts, and the Maastricht Treaty laid the foundation of the European Union.
We also made our first forays into dedicated ‘developed international’ investing. These built on the foundations of investments Baillie Gifford had made for clients in regional equities over earlier decades.
Our first purchases included:
- British Petroleum
- Berliner Handels und Frankfurter Bank
- Siemens
- Daimler-Benz
Our portfolio changed over time as we sought growth wherever it existed in developed markets – an activity that continues to this day.
We are long-term in our approach and focused on identifying the structural growth drivers that aim to deliver you strong returns over the coming decades.
To mark the occasion, we have created this anthology to share some reflections.
You will hear from one of the strategy’s fathers about how it took him time (and a lot of shoe leather) to expand the international equities business, to great effect.
You will see how the portfolio’s exposure to different stocks has changed.
And you will learn why we think the Japanese cycle parts maker Shimano epitomises what we look for in individual companies.
We will also explain how consistency matters – most of all in difficult times.
We won’t get everything right. But we recognise uncertainty is both a fact of life and an opportunity.
Finally, we will share with you what lies ahead.
Just as our portfolio has changed over time, so has our team of investment managers. Stephen Paice and Milena Mileva recently joined the construction group. And in our final article, Milena discusses how she spots opportunities driven by rapid technological change.
After all, as philosopher Søren Kierkegaard said:
“Life can only be understood backwards, but it must be lived forwards.”
Risk Factors
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.
This communication was produced and approved in September 2022 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.
Potential for Profit and Loss
All investment strategies have the potential for profit and loss, your or your clients’ capital may be at risk. Past performance is not a guide to future returns.
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.
All information is sourced from Baillie Gifford & Co and is current unless otherwise stated.
The images used in this communication are for illustrative purposes only.
Source: Baillie Gifford & Co and underlying index provider(s). USD.
Source: MSCI. 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.
Past performance is not a guide to future returns.
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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.
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Contributors
Andrew Daynes
Client Service Manager
Andrew joined Baillie Gifford in 2021 as a Client Service Manager. He previously worked at the UK Ministry of Defence. Andrew completed an MSc in Asian Politics at SOAS University of London and graduated with a BA(Hons) in History from the University of Cambridge.
