FUNDS
| SHARES | 22 August 2019
I
t has nothing to do with
home loans and invests
across the globe, ^ĐŽƫƐŚ
DŽƌƚŐĂŐĞ/ŶǀĞƐƚŵĞŶƚdƌƵƐƚ
;^DdͿ is not one of those ‘does
ǁŚĂƚŝƚƐĂLJƐŽŶƚŚĞƟŶ͛ĨƵŶĚƐ͘
zĞƚƚŚĞ&d^ ϭϬϬƚƌƵƐƚŝƐǁŝĚĞůLJ
ƚŚŽƵŐŚƚŽĨĂƐŵĂŶĂŐĞƌĂŝůůŝĞ
'ŝīŽƌĚ͛ƐŇĂŐƐŚŝƉĂŶĚŝƚŚĂƐ
grown to become one of the
ŵŽƐƚƉŽƉƵůĂƌŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐ
ǁŝƚŚĚŽͲŝƚͲLJŽƵƌƐĞůĨŝŶǀĞƐƚŽƌƐƵƉ
ĂŶĚĚŽǁŶƚŚĞh<͘
&ŝƌƐƚ͕ůĞƚ͛ƐƉƵƚĂƉŽƉƵůĂƌ
ŵŝƐĐŽŶĐĞƉƟŽŶƚŽďĞĚ͘^ĐŽƫƐŚ
DŽƌƚŐĂŐĞŝƐEKdĂ&E'ĨƵŶĚ
ŽƌƚĞĐŚŶŽůŽŐLJƚƌƵƐƚ͕&E'ďĞŝŶŐ
an acronym for Facebook,
ŵĂnjŽŶ͕EĞƞůŝdžĂŶĚ'ŽŽŐůĞͲ
ƉĂƌĞŶƚůƉŚĂďĞƚ͘dŚĞƵŶĚĞƌůLJŝŶŐ
ĞƚŚŽƐŽĨƚŚĞƚƌƵƐƚŝƐƚŽŝĚĞŶƟĨLJ
and invest in the best growth
ĐŽŵƉĂŶŝĞƐƚŚĞǁŽƌůĚŚĂƐƚŽŽīĞƌ͕
ĂŶĚŚŽůĚŽŶƚŽƚŚĞŵ͕ĂƚĮǀĞ
LJĞĂƌƐĂŶĚŽŌĞŶĨĂƌůŽŶŐĞƌ͘
tĞĂƌĞƚĂůŬŝŶŐĂďŽƵƚ
ĐŽŵƉĂŶŝĞƐĐĂƉĂďůĞŽĨŽƵƚͲƐŝnjĞĚ
ƌĞƚƵƌŶƐŽǀĞƌƚŚĞůŽŶŐͲƚĞƌŵ
ƚŚƌŽƵŐŚŝŶĚƵƐƚƌLJĚŝƐƌƵƉƟŽŶ
or socio-economic and
ĚĞŵŽŐƌĂƉŚŝĐĚĞǀĞůŽƉŵĞŶƚ͘
dŚĞƐƉĞĞĚŽĨǁŝĚĞƐƉƌĞĂĚ
technological change and
ŚŝŶĂ͛ƐĞŵĞƌŐĞŶĐĞĂƐĂǁŽƌůĚ
ĞĐŽŶŽŵŝĐƐƵƉĞƌƉŽǁĞƌĂƌĞ
two of its core themes, while
ƚƌĂŶƐĨŽƌŵŝŶŐŝŶĚƵƐƚƌŝĞƐƐƵĐŚĂƐ
ŽŶůŝŶĞƐŚŽƉƉŝŶŐ͕ŚĞĂůƚŚĐĂƌĞĂŶĚ
ĮŶĂŶĐŝĂůƐĞƌǀŝĐĞƐĂƌĞƌĞƉƌĞƐĞŶƚĞĚ
ŝŶƚŚĞƉŽƌƞŽůŝŽ͘
ŵĂnjŽŶŝƐĂŐƌĞĂƚĞdžĂŵƉůĞ͘
^ĐŽƫƐŚDŽƌƚŐĂŐĞĮƌƐƚďŽƵŐŚƚDĂƌĐŚ͘ƵƚƚŚĞƌĞĂƌĞƉůĞŶƚLJŽĨ
ĞdžĐŝƟŶŐŐƌŽǁƚŚƐƚŽƌŝĞƐƚŚĂƚLJŽƵ
ƉƌŽďĂďůLJŬŶŽǁůĞƐƐĂďŽƵƚ͘
&ŽƌĞdžĂŵƉůĞ͕^ĐŽƫƐŚ
Mortgage is a heavy backer of
ŚŝŶĂ͛ƐŵĂnjŽŶůŽŽŬĂůŝŬĞĐĂůůĞĚ
ůŝďĂďĂ;ς͘ϭйͿ͕ĂŶĚdĞŶĐĞŶƚ
;ς͘ρйͿ͕ƚŚĞŚŝŶĞƐĞƐŽĐŝĂůŵĞĚŝĂ
ĂŶĚĞŶƚĞƌƚĂŝŶŵĞŶƚƉůĂƞŽƌŵ͘
/ƚĂůƐŽŽǁŶƐŚĞŌLJƐƚĂŬĞƐŝŶ
/ůůƵŵŝŶĂŝŶƚŚĞh^;ϳ͘ϭйͿ͕ǁŚŝĐŚ
ŝƐďƵŝůĚŝŶŐĂĚǀĂŶĐĞĚĞƋƵŝƉŵĞŶƚ
ƚŽƵŶůŽĐŬƚŚĞƉŽǁĞƌŽĨŐĞŶĞƟĐ
ƐĐŝĞŶĐĞĨŽƌĂůůŽĨƵƐ͕ĂŶĚ^D>͕
ƚŚĞƵƚĐŚƐĞŵŝĐŽŶĚƵĐƚŽƌ
ĞƋƵŝƉŵĞŶƚŵĂŶƵĨĂĐƚƵƌĞƌƵƐĞĚ
ŝŶŵĂŬŝŶŐƚŚĞŵŽƐƚĐŽŵƉůĞdž
ŵŝĐƌŽĐŚŝƉƐ͘
dŚĞƌĞĂƌĞŵĂƌŵŝƚĞƐƚŽĐŬƐƚŽŽ͘
EŽƚĂůůŝŶǀĞƐƚŽƌƐǁŽƵůĚǁĂŶƚ
ƚŽŽǁŶ&ĂĐĞŬ͕ĨŽƌĞdžĂŵƉůĞ͕
ĂůŵŽƐƚĐŽŶƟŶƵĂůůLJĐĂƵŐŚƚƵƉ
ŝŶƉƌŝǀĂĐLJĐŽŶƚƌŽǀĞƌƐŝĞƐ͘ ůŽŶ
DƵƐŬ͛ƐƐƚƵďďŽƌŶůLJůŽƐƐͲŵĂŬŝŶŐ
ĞůĞĐƚƌŝĐĐĂƌƐĮƌŵdĞƐůĂŚĂƐĂƚ
least as many foes and fans,
ǁŚŝůĞƌŝĚĞͲƐŚĂƌŝŶŐĂƉƉ>LJŌŝƐĂůƐŽ
ŽŶƚŚĞƚƌƵƐƚ͛ƐŬƐ͘
/ƚŝƐĂůƐŽǁŽƌƚŚŶŽƟŶŐƚŚĂƚ
^ĐŽƫƐŚDŽƌƚŐĂŐĞŝƐŵŽƌĞ
ŝŶǀĞƐƚĞĚŝŶƉƌŝǀĂƚĞůLJͲŽǁŶĞĚ
ĐŽŵƉĂŶŝĞƐƚŚĂŶĞǀĞƌƌĞŐĂƌĚůĞƐƐŝŶƚŽƚŚĞŽŶůŝŶĞƐĂůĞƐĐŽůŽƐƐƵƐŝŶ
ϮϬϬρĂƚĂƌŽƵŶĚƚŚĞΨϯϬĂŶĚΨκϬ
ůĞǀĞů͘ĨŽƵƌƚĞĞŶLJĞĂƌƐůĂƚĞƌŵĂnjŽŶ
ƚƌĂĚĞƐĂƚΨϭ͕ϳϳς͕ĂƐƚĂŐŐĞƌŝŶŐ
ρϬͲĨŽůĚŽƌƐŽƌĞƚƵƌŶ͘zĞƚũŽŝŶƚ
managers James Anderson and
dŽŵ^ůĂƚĞƌĂƌĞĂƐĞdžĐŝƚĞĚĂďŽƵƚ
ŵĂnjŽŶ͛ƐƉƌŽƐƉĞĐƚƐĂŶĚƌĞƚƵƌŶƐ
ƉŽƚĞŶƟĂůĂƐĞǀĞƌ͕ƉĂƌƟĐƵůĂƌůLJ
ĂƌŽƵŶĚĂƌĞĂƐůŝŬĞŶĞǁŵĂƌŬĞƚ
ŽƉƉŽƌƚƵŶŝƟĞƐůŝŬĞŚĞĂůƚŚĐĂƌĞ͕
ŽǀĞƌƐĞĂƐĞdžƉĂŶƐŝŽŶ;/ŶĚŝĂͿĂŶĚ
ĐůŽƵĚĐŽŵƉƵƟŶŐ;ŵĂnjŽŶtĞď
^ĞƌŝǀĞƐͿ͘
ŵĂnjŽŶŝƐŶŽǁ^ĐŽƫƐŚ
DŽƌƚŐĂŐĞ͛ƐůĂƌŐĞƐƚƐŝŶŐůĞŚŽůĚŝŶŐ͕
ǁŽƌƚŚε͘ϯйŽĨŝƚƐάΘ͘ΘρďŶĂƐƐĞƚƐ͘
/ƚŝƐƚŚĞƉŽƚĞŶƟĂůĨŽƌŵĂƐƐŝǀĞ
ƌĞƚƵƌŶƐƐƵĐŚĂƐƚŚŝƐƚŚĂƚŵĂŬĞ
^ĐŽƫƐŚDŽƌƚŐĂŐĞƉƵƚůĞƐƐ
ĞŵƉŚĂƐŝƐŽŶƉƵƌĐŚĂƐĞƉƌŝĐĞ
ǀĂůƵĂƟŽŶ͕ŵŽƌĞŽŶƚŚĞĐĂƉĂĐŝƚLJ
ƚŽĐŽŵƉŽƵŶĚƐƵƉĞƌͲŶŽƌŵĂů
ŐƌŽǁƚŚŽǀĞƌLJĞĂƌƐ͘t,dZ d,
Kd, Z/'^d< ^
Most readers will be familiar with
names like streaming TV service
EĞƞůŝdž͕'ŽŽŐůĞͲƉĂƌĞŶƚůƉŚĂďĞƚ
ĂŶĚƐƉŽƌƚƐĐĂƌŵĂŬĞƌ&ĞƌƌĂƌŝ͕Ăůů
ŝŶƚŚĞƚŽƉϭρŚŽůĚŝŶŐƐĂƐŽĨϯϭBaillie Gifford-run investment trust has a brilliant record for low-cost, long-run returns