Trustnet Magazine Issue 44 October 2018 | Page 12

Advertorial feature easily derailed. Their strengths and adaptability should enable them to drive their vision, even amid evidently seismic political and economic events. And, by continuing to be sizeable, highly committed and patient shareholders of these businesses, while acting on our clients’ behalf, we have put ourselves in the privileged position of taking a disproportionate share of any future success. We are unashamedly bottom- up investors. You will not hear us muse on, or attempt to predict, the daily twists and turns of economic data, stock market sentiment, or government policy. We do not think we can add much on those issues. Our enthusiasm for some of the exceptional UK growth businesses spans a wide variety of different industries. Long-term winners and the need for a strong corporate culture At Baillie Gifford, we have learnt a lot by owning great businesses and hope we can use some of those lessons to spot other big winners in the future. One of the key things we have observed is just how crucial unusual corporate cultures have been to their excellence. This manifests itself in a number of ways. First, they are all united by an unwavering focus on the long FE TRUSTNET [ BAILLIE GIFFORD ] 10 / 11 term. Whilst most companies tend to pay lip service to long-termism, it seems to us that precious few have the courage to consistently follow this belief. For most, a quarter or two of weak demand or missed earnings expectations is sufficient to result in ad hoc cost cutting and various forms of financial engineering to shore up the numbers. Second, great UK growth businesses all have strong identities and a vision which extends far beyond the imperative to generate profit for shareholders. This in turn tends to result in them having a strong alignment with their customers and employees. Conclusion We are not arguing that conquering these new horizons will be an easy task for the companies in our portfolios. Setbacks along the way are inevitable, just as they have been in the past. However, the scale of the opportunity truly excites us. It is only through our continued patience and commitment as shareholders that we and our clients will be able to fully benefit from this great potential. The value of your investment and any income from it is not guaranteed and may go down as well as up and as a result your capital may be at risk. Milena Mileva – co-manager Baillie Gifford UK Growth Fund plc Milena completed her MPhil in Politics at Oxford University in 2009, having graduated with a BA in Social & Political Science from the University of Cambridge in 2007. She joined Baillie Gifford in the same year and is an Investment Manager in the UK Equity Team. Milena became a member of the Pan-European Portfolio Construction Group in 2014. The trust’s exposure to a single market may increase risk. For more details on the Baillie Gifford UK Growth Fund plc, including the Key Information Document, please see our website at www.bailliegifford.com This article does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are those of Milena Mileva, are not statements of fact, and should not be considered as advice or a recommendation to buy, sell or hold a particular investment. If you are unsure whether an investment is right for you, please contact an authorised intermediary for advice. Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA). The Trust (Baillie Gifford UK Growth Fund) is listed on the London Stock Exchange and is not authorised or regulated by the Financial Conduct Authority. trustnet.com