[ BAILLIE GIFFORD ] explosives and blasting technologies . Its business is set to pick up as the mining industry recovers , offering a potential opportunity for significant margin improvement .
4 . Latent Growth These are firms with often unspectacular recent operational records . The market expects them to either shrink or produce very low growth . However , analysis has identified a company-specific catalyst or series of catalysts , which will allow aboveaverage earnings and cash-flow growth to re-emerge . The Monks managers expect to make money in these stocks if the market ’ s expectations for earnings growth are upgraded and higher valuation multiples are attached to the profit stream . Fiat Chrysler Automobiles fits into this category . Through a series of bold purchases ( including Chrysler and Jeep ), the management of Fiat have set about rejuvenating tired brands and dispelling poor market perceptions about their products .
In essence , Monks offers a diverse and measured take on global growth . The managers like a flat portfolio with around 110 stocks sized according to enthusiasm . They invest with an eye to valuation levels . It is a trust that can sit comfortably at the centre of anyone ’ s portfolio .
James
Budden Director , Marketing and Distribution , Baillie Gifford
James graduated MA in Classics from the University of Cambridge in 1987 . He joined Baillie Gifford in 2008 having worked at Witan Investment Trust and Henderson Global Investors . James is a Director of Marketing and Distribution in the Clients Department .
Past performance is not a guide to future returns . The views expressed in this article should not be considered as advice or a recommendation to buy , sell or hold a particular investment . Some of the views expressed are not necessarily those of Baillie Gifford . Investment markets and conditions can change rapidly , therefore the views expressed should not be taken as statements of fact nor should reliance be placed on them when making investment decisions . This article contains information on investments which does not constitute independent investment research . Accordingly , it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned . Please remember that the value of a stock market investment and any income from it can fall as well as rise and investors may not get back the amount invested . Investments with exposure to overseas securities can be affected by changing stock market conditions and currency exchange rates . The trust invests in emerging markets where difficulties in dealing , settlement and custody could arise , resulting in a negative impact on the value of your investment . Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority ( FCA ). The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised and regulated by the Financial Conduct Authority . This article is issued by Baillie Gifford & Co Limited and does not in any way constitute investment advice . Information correct as at December 2017 and sourced from Baillie Gifford & Co unless otherwise stated . trustnet . com