Capital at risk

Investment strategy

Global Alpha Paris Aligned Ethically Restricted

We identify companies with the potential to deliver superior earnings growth while keeping emissions consistent with the Paris Agreement on climate change.  

An aerial view of a sailing boat floating on still water with clouds reflected on the surface.

Recognising diversity

An ambitious approach to investing in responsible growth companies from across the spectrum of opportunity, consistent with addressing the climate crisis. We are flexible and open-minded, recognising the diverse ways in which growth can be achieved. 

Global Alpha: our philosophy

Investment manager Helen Xiong introduces Global Alpha, reflecting on the exciting opportunities ahead.

Patient, engaged ownership

We aim to identify companies which can grow their earnings at a superior rate to the market over sustained periods, where this potential is not reflected in the price. As share prices are ultimately driven by earnings growth, this approach underpins our objective to deliver returns 2 to 3 per cent per annum ahead of the benchmark over rolling five-year periods before the deduction of fees.  

The strategy also commits to maintaining a Weighted Average Greenhouse Gas Intensity lower than the MSCI ACWI EU Paris Aligned Requirements Index and excludes companies which fail to meet our responsible behaviour criteria. 

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.

A truly global portfolio

Our philosophy is to invest long-term in well-managed businesses with sustainable competitive advantages. We embrace diversity, splitting the portfolio across three growth profiles – compounders, disruptors and capital allocators – which exploit different inefficiencies.  

Each holding is analysed to ensure consistency with the low-carbon transition. The resulting portfolio of about 90 holdings represents the most attractive opportunities from across the growth spectrum. 

The 2020s must be the decisive decade of action on the climate crisis, and there will unquestionably be greater discussion on the need to align funds with a 1.5C warming scenario.
Helen Xiong

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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Strategy portfolio holdings

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

30 April 2024

3Meta Platforms4.2%
4Elevance Health Inc.4.0%
9Service Corporation International2.4%

Strategy holdings by region

30 April 2024

1North America65.30%
2Europe (ex UK)16.40%
3Emerging Markets10.80%
4Developed Asia Pacific6.20%

Strategy holdings by region

30 April 2024

: 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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