MAB Growth Quarterly Review Q4 2025 - Flipbook - Page 13
Strategy summary:
The manager adopts what is known as a
growth-oriented investment style, focusing on the
highest growth companies within Asia ex-Japan.
Although Asian equity markets are inherently
volatile, the manager believes that over long time
periods, share prices ultimately track pro昀椀t growth.
As a result, they seek to identify Asian companies
where the market has underestimated how long
pro昀椀ts will keep growing, or how fast they will grow
or where they identify a potential near-term surprise
in growth (i.e. where a traditionally low-growth
company or sector suddenly becomes high growth).
Once they have identi昀椀ed these underappreciated
growth opportunities, they then seek to sit through
the share price volatility and own these companies
for the long term with average holding periods in
excess of 5 years. They believe that by identifying
these highest growth companies, they are investing
in companies that have the potential to double in
price over 5 years.
In a further attempt to control risk and volatility,
the manager constructs a relatively diversi昀椀ed
portfolio of 50-100 holdings. How much they invest in
each company depends on how strongly they believe
in it, how large and how likely the expected return is,
and how the holding 昀椀ts alongside everything else
they own. Positions are sold if a company no longer
meets their growth target, if the investment case
no longer stands up to scrutiny or if its shares no
longer have enough room to rise. We do like that,
out of all of Baillie Gifford’s equity strategies, this
one pays more attention to whether a share looks
expensive, a feature we think is particularly useful for
managing risk in Asian equity markets. In addition to
company-speci昀椀c considerations, the manager also
has a strong appreciation of the broader economic
risks in each country, important in a region where
country conditions, policy choices, currencies and
geopolitics can materially in昀氀uence returns.
We added the BG Paci昀椀c Fund to the Emerging
Markets component just after the investment style
had been through a highly challenging period.
Since this point, performance has signi昀椀cantly
surpassed the regional equity indices.
Baillie Gifford Paci昀椀c Fund:
10-Year Performance
Source: Re昀椀nitiv DataStream / YOU Analysis
Performance ran from 30/06/2016 to 30/06/2026
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