Long Term Global Growth Quarterly Update

BAILLIE GIFFORD

30 June 2021

Contents 02 Executive Summary Baillie Gifford Investment Management (Europe) Limited 03 Commentary is a wholly owned subsidiary of Baillie Gifford Overseas Limited, which is wholly owned by Baillie Gifford & Co. 09 Performance Persons resident or domiciled outwith the UK should 15 Portfolio Overview consult with their professional advisers as to whether they require any governmental or other consents in order to enable 16 Governance Summary them to invest, and with their tax advisers for advice relevant to 20 Governance Engagement their own particular circumstances. This document contains information on investments which 23 Voting does not constitute independent research. Accordingly, it is not 27 Transaction Notes subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments 28 Legal Notices concerned. All information is based on a representative portfolio, new client portfolios may not mirror the representative portfolio This document is solely for the use of professional exactly. As at 30 June 2021, in US dollars and sourced from investors and should not be relied upon by any other Baillie Gifford & Co unless otherwise stated. person. It is not intended for use by retail clients. Canada Important Information and Risk Factors Baillie Gifford International LLC is wholly owned by Baillie Baillie Gifford Overseas Limited provides investment Gifford Overseas Limited; it was formed in Delaware in 2005 management and advisory services to non-UK and is registered with the SEC. It is the legal entity through Professional/Institutional clients only. Baillie Gifford Overseas which Baillie Gifford Overseas Limited provides client service Limited is wholly owned by Baillie Gifford & Co. Baillie and marketing functions in North America. 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Product Overview Long Term Global Growth is a very long term, concentrated global equity strategy focused on investing in exceptional growth companies from around the world. The approach is committed and expressly long term because we believe that investing in companies with the scope to grow to multiples of their current size over the next decade has the potential to transform the returns achieved for investors over time.

Risk Analysis

Key Statistics Number of Holdings 38 Typical Number of Holdings 30-60 Active Share 91%* Annual Turnover 21%

*Relative to MSCI ACWI. Source: Baillie Gifford & Co, MSCI.

The operational performance of the portfolio holdings remains very robust Strong idea generation means that competition for capital within the portfolio is intense Volatility is a natural part of our investment approach. We remain alert to opportunities that may arise from any short-term weakness

Key Facts Firm wide assets under management and advice US$486.8bn Number of clients 730 LTGG assets under management and advice US$72.7bn LTGG clients 120

Commentary 03

For thousands of years, humankind has sought the elixir By that stage though, the Long Term Global Growth of youth. portfolio was morphing towards a new cohort of In the fifth century, Herodotus conceived of a dominant players – those driving and benefiting from the mythical spring that rolled back the years for anyone rise of the mobile internet. Beyond Amazon, Alphabet who bathed in its waters. More recently, sheep placenta and Apple, we held a new generation of companies facials, cryogenic chambers, snail secretion therapies and largely located on the west coast of US and the east coast sensory deprivation tanks have all been cited as credible of China. The investment cases for Alphabet, Baidu, means of resisting ageing. Tencent, Facebook and Alibaba were each unique. But they were built on the unifying premise that the mobile The quest has remained futile of course, but there may internet allied to a dollop of globalisation, would offer be lessons to learn from a handful of unusual organisms unprecedented reach and returns. The mobile internet that show no signs of deterioration as they advance in platforms were indeed powerful drivers of return for our years. The most interesting anti-ageing strategy probably clients over the decade between 2010 and 2020 – and comes from the humble sea urchin, able to maintain the increasingly large holding sizes to boot. Alphabet and length of its telomeres – the stretches of DNA found at Apple (both now sold) were six-and-a half and eight both ends of each chromosome. In most organisms, baggers respectively. And let’s not forget that both Baidu telomeres tend to shorten with age. When they get too and Tencent were both trimmed off the ten percent limit short, cell division stops completely, and the resulting on occasion. In fact, as recently as three years ago, this cell depletion cripples the body’s ability to renew muscle small handful of monoliths still represented around 40 and immune system components. In this respect, sea per cent of LTGG. urchins have established a way of arresting their ageing clocks. Their telomeres don’t shorten, their cells never During the first seventeen years of LTGG, many of cease dividing and the elixir of youth pays out in spades. the stocks mentioned above have reinforced our belief in the importance of outliers. Beyond the twelve five Investment portfolios are, in their own way, living baggers, we’ve had a ten bagger, a fifteen bagger, a organisms and in LTGG we think we have something to twenty-five bagger, a forty bagger, a seventy-five bagger learn from sea urchins. We have, over the past seventeen and a ninety-five bagger1. But the onus is on us to make years, worked hard to keep the portfolio youthful and sure that the portfolio retains its ability to deliver these forward looking. extreme returns. Over the last three years, we’ve moved on from twelve holdings that no longer have the outlier Early flushes of LTGG potential that we seek, and we’ve bought seventeen new holdings that do. To lend some context, it’s worth reflecting on just how On this basis, we have strong grounds for confidence much the Long Term Global Growth portfolio has that the Long Term Global Growth portfolio remains in evolved over the years in order to maintain the length of the early flushes of youth. But it’s worth elaborating its telomeres. During the early flushes of LTGG in 2004, further, touching on a handful of telomere extending we held a potpourri of western consumer growth aspects of our current thinking. champions: Wrigley, Walgreen and Canon. There was also a cohort of venerable European companies driving industrial led growth in China: Atlas Copco’s air Embracing the unfamiliar compressors and Sandvik’s abrasion equipment underpinned the build out. A number of holdings were One of the most important cognitive elements, is our driven by newly minted Asian consumers: Porsche, recognition that consumer patterns and attitudes are Hermès etc. Then there was a Brazilian and Russian twist evolving increasingly rapidly and with ever greater – and one that grew in the mid noughties, so that by the amplitude. While the human needs for self-actualisation, time we barrelled into the heavy chop of 2008, our esteem and belonging are innate and immutable, they are holdings in the traditional resource companies such as being expressed in new ways. Tastes are being shaped by Petrobras, CVRD, Gazprom and Lukoil were collectively social groups who are culturally similar but around a fifth of the portfolio. As recently as a decade geographically distant. The lines between the physical ago, a good chunk of Long Term Global Growth and digital-self continue to blur. remained in these industrial propellants of globalisation – and although many of them seem anachronistic now, our clients enjoyed handsome pay-offs. 1 Data to 31/3/21: Respectively the stocks are: Petrobras, Illumina, Shopify, Salesforce, L’Oréal, Intuitive Surgical, Apple, NVIDIA, Facebook, Netflix, Atlassian, HDFC, Kering, Atlas Copco, Hermès, Tencent, Tesla and Amazon.

Commentary 04

To those in the throes of middle age, this can be Going with the grain of society discombobulating. I profess to unease when my daughter recently earned five pounds stacking logs – only to As many countries enjoy a relaxation of Covid ‘blow’ this pocket money on a pair of virtual Gucci restrictions, Mr Market is focussed on short-term sneakers for her online Roblox character. But we need to beneficiaries of ‘the pleasure after the plague’. There are be imaginative about the possible size of the market for interesting parallels with the Roaring 20s here, but to our virtual luxury in the long term and it’s encouraging to minds, they extend beyond post-pandemic hedonism. observe that Kering is already on the front foot. It is also Much of the new wealth created in the 1920s was amply clear that the experienced Long Term Global patchily distributed and accompanied by a pervasive Growth investors who predate Generations Y & Z, need sense that the older generation had let down younger the help of colleagues in understanding the mood and people. In 1920, John F. Carter, an irate 23-year-old aspirations of a new cohort of conscious consumers. wrote “the older generation had certainly pretty well In this sense, the multigenerational and multicultural ruined this world before passing it on to us. We have dynamic within the LTGG team (and indeed across the been forced to live in an atmosphere of ‘tomorrow we broader Baillie Gifford investment floor), has never die,’ and so, naturally, we drank and were merry.” seemed more important. These words could just have easily come from a It was the younger members of the team who pushed disenfranchised youngster today. The pandemic has us to be more imaginative on the true size of the exposed and accentuated pre-existing inequalities, opportunity for Beyond Meat. This holding’s investment leading those on the wrong side of the bargain to seek case is predicated firmly on the removal of the cow as a redress. In an LTGG context, we need to remain alert to rather inefficient middle-man between the sun and the these shifts – and to appreciate where they may act as stomach. Some within the team see no reason why the tailwinds for the portfolio, because to our mind, a number opportunity for Beyond Meat shouldn’t ultimately be of the portfolio’s holdings are acting as democratising larger than the $500bn market for traditional protein forces. Shopify is a good case in point. The platform’s forms. growth – comfortably in excess of 100 per cent per Meanwhile, it was our Shanghai-based colleagues annum – is largely a function of its ability to level the who patiently educated us on the potential for the new playing field by lowering the costs of starting and scaling holding in Bilibili – the fastest growing mainstream a business, reducing the barriers to entrepreneurship by entertainment portal for Chinese teenagers and young means of affordable tools and online infrastructure. adults. Bilibili’s range of video, gaming and anime comic Shopify handles security, inventory management, content is formidable (and hugely under monetised) but shipping, electronic payment processing and a slew of the registration process for any budding Bilibili curator or other services that many small business owners may not commentator involves a test with one hundred multiple be able to deal with themselves. Meanwhile, Shopify choice questions on topics including copyrights, Capital offers short-term business funding in the form of commentary etiquette, platform neologism and – à la merchant cash advances, routing around prohibitively Mastermind – niche questions based on topics of the expensive legacy banks and understanding trends in entrant’s choosing. To western observers, this is merchants’ growth potential with ever increasing bemusing because every successful social platform in the accuracy as the platform scales. west is focussed on reducing registration friction. But for Bilibili, the initiation ritual of the entrance exam cements the bond that users have with the platform, aligning them with the existing community to drive a stickier userbase and fewer trolls – a dynamic that is so easy for a cognitively narrow stock market to overlook.

Commentary 05

In a similar vein, some of the greatest Growth Winds of change: a strengthening regulatory breeze opportunities are materialising from the companies that are shifting humankind towards more sustainable ways We’ve never claimed any expertise in macroeconomic of consuming by driving efficiencies and eliminating forecasting or political analysis. That remains the case. surplus. Pinduoduo’s ‘farm to table’ platform is one But we do need to remain alert to tectonic shifts in example – cutting out huge waste in farm produce and geopolitics and state capitalism. For most of the past short circuiting layers of infrastructure by matching century, geopolitical power has been intimately Chinese food supply and demand through a group buying connected to fossil fuels. But the table stakes are shifting model. In a similar vein, Meituan is well on the way to and as we look ahead, we recognise that the inputs of the developing China’s primary ‘Software as a Service’ next decade may well be different. The world’s leading ecosystem for food distribution which we believe has a economic powers are more concerned with a secure strong chance of replacing wasteful wet markets as the supply of chips than oil. This dynamic has the potential to primary channel for transacting in produce. In the field throw up some interesting new ideas and the Shanghai- of energy meanwhile, Tesla has begun a pioneering shift based members of the Long Term Global Growth team away from using cobalt within its batteries. Its lithium have been travelling to meet the companies that might iron phosphate (LFP) technology (already used in benefit. It also seems likely to reinforce the long-term flagship energy storage products) could underpin not just opportunity for Veldhoven-based ASML which remains the automotive ambitions but also the ramp up of Tesla’s one of the most understated and least asked about grid-scale energy storage offering which will be key to holdings in the portfolio. But ASML’s lithography accelerating the demise of dirty peaker plants. machines remain key to underpinning the next generation of silicon chips. The lack of any real competitor suggests that further spats over chip technology might catalyse a Improving the research framework belated appreciation of the extreme value and importance of ASML’s technology In our quest for continuous improvement, we’ve also been reflecting on the Ten Question Stock Research The pendulum is swinging back towards more state framework. It has served LTGG very well for seventeen involvement in other areas too. With Alphabet, Amazon years and we see no reason for radical change. But as the and Facebook facing growing regulatory oversight, the world evolves, so should we. We’ve been pushing road ahead may be less long and profitable than was once ourselves to think further about Question five in the case and that’s why this trio of holdings with a particular. This question has morphed a bit over the years: collective market cap of over $4trn now represents under 10 per cent of the portfolio – less than half the level three In 2004, Q5 read: “Why do your customers like you years ago. In the case of Alphabet (a six-and-a-half and why will they continue to like you?” bagger after 13½ years in the portfolio), we’ve moved on 2015, we added: “Do you contribute to society?” completely – concerned by the company’s aloof lack of But, in a bid to continually improve, we have refined acceptance that some form of oversight might be the societal element further to ask: appropriate. In recent months, the paring back of these 2021: “What societal considerations are most likely to positions has provided us with the funds to invest in some prove material to the long-term growth of the company?” telomere-extending younger companies. Coupang, the It’s a hard question because honing in on the Korean commerce platform, may ultimately be showing materiality of any impact can’t be achieved with bland Amazon the way in terms of motivating and generalisations, heuristic shortcuts or easy metrics. But enfranchising its workers. The Trade Desk is emerging as the entrepreneurs that we back should be well suited to a potential thorn in Google’s side in the domain of online leading in areas such as supply chain transparency and advertising as it looks to provide a more healthily labour rights. They should also be ahead of the game transparent forum for the sale of online advertising when it comes to environmental considerations and we inventory – an almost inestimably large opportunity. are currently in the process of developing clearer expectations of portfolio holdings in terms of their emission disclosure levels and their Net Zero ambitions.

Commentary 06

We’re keeping an eye on the evolving regulatory as entrepreneurs seek to fill gaps in the market. Our ever landscape in China as well. While the likes of Tencent, extending lines of sight into the private markets remain Alibaba, Meituan and Pinduoduo (whose user base has extremely valuable as we seek to identify the next now overtaken Alibaba’s) embody the Chinese dream for generation of potential outliers. One case in point is many local citizens, the central government is wary of eHang, a manufacturer of electric passenger-grade these tall poppies garnering excessive influence. We’ve autonomous aerial vehicles. Although the company is not seen these platforms’ wings being clipped of late, but this quite investible for us yet, we need to familiarise is not new and our updated scenario analysis suggests ourselves with the investment case (and test out its ample scope for outlier style returns, even if returns are aircraft) in preparation. capped by regulation to some degree. We’re also finding manifold opportunities in companies that are already listed. We’ve been discussing Maintaining a strong subs bench HeyTea which has now overtaken Starbucks in China – and Yatsen who take a unique approach to managing The next portfolio telomere stretcher relates to the subs online influencers in the context as they look to build a bench. With aggregate earnings growth seven times faster new China-focused cosmetic brand. We’ve also been than the index, the operational performance of the spending time with the management team of Full Truck portfolio incumbents remains extremely robust. But every Alliance (FTA), whose online platform matches truckers holding needs to work hard to continue justifying its and shippers in China’s desperately inefficient overland place so it’s important that competition for capital freight market. Elsewhere in the world, we’ve been remains intense. To that end, we remain pleased by the exploring the blue sky for 10x Genomics whose single abundant flow of new ideas. Crises tend to encourage cell sequencing platform is unlocking more granular people and businesses to try new ways of doing things. diagnostics and monitoring – a possible winner in the The number of start-ups boomed in the Roaring Twenties genomics application layer to complement Illumina’s and today, new business formation is once again surging genomics infrastructure platform.

John and Linda, two members of the LTGG Team, cleared for take off in advance of a recent flight in an eHang electric urban transport pod.

Commentary 07

But despite this abundance of new ideas, we remain The views expressed reflect the personal opinion of selective. Against a backdrop of global Covid-stimulus, the author and should not be considered as advice or a there’s a great deal of capital sloshing around. Parts of recommendation to buy, sell or hold a particular the market look rather frenzied so prudent and disciplined investment. stock picking is crucial and we’ve refrained from investing in a number of quite well-developed new ideas (Airbnb, Docusign, Roblox and Snowflake for example) based on our inability to conceive of an outlier scenario from current valuations.

Relishing volatility It’s worth touching on a final telomere stretching element of LTGG that remains central to unlocking future upside: our ability to not merely tolerate, but to actively enjoy volatility. To put this in the context of the current portfolio holdings over the years, we’ve seen seventy separate instances of share price falls in excess of 30 per cent. Within this dataset, it should come as no surprise that the big winners have proved the most volatile2. Normality is a paved road but few flowers grow on it. In recent years, we’ve had fewer opportunities to enjoy the advantages that volatility affords the truly long- term investor following an uncharacteristically smooth period of returns. But it remains the case that short-term volatility is part and parcel of our approach. So, against a market backdrop that seems flighty once again, we remain alert to opportunities to top up positions on any short-term weakness.

Conclusion Taken together, we strongly believe that these six ingredients form a powerful elixir – a portfolio of longevity and promising long-term upside. The proof of the pudding is that both revenue and earnings growth has never been faster for LTGG. The icing on that cake is that many of the portfolios holdings have massive latent pricing power and great potential returns to scale. But we know it takes energy to maintain distinctiveness. To quote Jeff Bezos in his last Amazon letter to shareholders, “The world wants you to be typical – in a thousand ways. It pulls at you. Don’t let it happen”. In the context of LTGG, we can assure you that we won’t.

2 The ten strongest performers that are currently held in the portfolio have collectively seen 35 individual falls of over 30 per cent.

Commentary 08

The LTGG Euler Diagram The diagram below represents our current view of stock concentrations in the LTGG model portfolio. We have identified what we believe to be the key driver(s) of each stock and have grouped stocks as appropriate. Circle sizes are based on the aggregate stock holding weights in the portfolio and some stocks are represented in more than one circle. The font size is indicative of the size of the holding in the portfolio – the larger the font the larger the position within the portfolio. We use this diagram as an input to our consideration of risk and diversification in the portfolio and we review it on an ongoing basis. The classifications are subject to change over time as our views evolve.

Performance - US Dollar 09

Performance Objective Performance typically compared with either MSCI All Country World Index or FTSE All World Indices by clients. No formal performance objective, but approach consistent with achieving +3% p.a., net of fees, over typical global equity index over rolling 5 year periods.

The performance objective stated is in no way guaranteed. The performance target is aspirational and is not used for the purpose of determining or constraining the composition of the portfolio. Performance may vary between segregated accounts and pooled funds in different jurisdictions as each structure will bear a different set of costs. A single performance target may not be appropriate for all vehicles in all jurisdictions and for this reason our portfolio specific materials will often refer to ‘material’ outperformance of a benchmark.

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 14.0 7.5 6.5 YTD* 11.3 12.6 -1.2 1 Year* 61.7 39.9 21.8 3 Years 36.3 15.1 21.2 5 Years 36.3 15.2 21.1 10 Years 21.6 10.5 11.2 15 Years 16.1 8.2 7.9 Since Inception 16.1 8.8 7.3

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 29 February 2004. Figures may not sum due to rounding. Benchmark is MSCI AC World Index. Source: StatPro, MSCI. US dollars

Discrete Performance

30/06/16- 30/06/17- 30/06/18- 30/06/19- 30/06/20- 30/06/17 30/06/18 30/06/19 30/06/20 30/06/21 Composite Net (%) 34.9 37.6 0.1 56.4 61.7 Benchmark (%) 19.4 11.3 6.3 2.6 39.9

Benchmark is MSCI AC World Index. Source: StatPro, MSCI. US dollars

Performance – Euro 10

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 13.0 6.6 6.4 YTD* 14.9 16.1 -1.3 1 Year* 53.1 32.5 20.7 3 Years 35.6 14.5 21.0 5 Years 34.5 13.7 20.8 10 Years 24.1 12.7 11.4 15 Years 16.6 8.7 7.9 Since Inception 16.4 9.1 7.3

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 29 February 2004. Figures may not sum due to rounding. Benchmark is MSCI AC World Index. Source: StatPro, MSCI. euro

Discrete Performance

30/06/16- 30/06/17- 30/06/18- 30/06/19- 30/06/20- 30/06/17 30/06/18 30/06/19 30/06/20 30/06/21 Composite Net (%) 31.4 34.4 2.7 58.5 53.1 Benchmark (%) 16.3 8.7 9.0 4.1 32.5

Benchmark is MSCI AC World Index. Source: StatPro, MSCI. euro

Performance - Sterling 11

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 13.9 7.4 6.5 YTD* 10.2 11.4 -1.2 1 Year* 44.6 25.1 19.5 3 Years 34.3 13.4 20.8 5 Years 35.4 14.4 20.9 10 Years 23.5 12.2 11.3 15 Years 18.3 10.3 8.0 Since Inception 18.1 10.7 7.4

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 29 February 2004. Figures may not sum due to rounding. Benchmark is MSCI AC World Index. Source: StatPro, MSCI. sterling

Discrete Performance

30/06/16- 30/06/17- 30/06/18- 30/06/19- 30/06/20- 30/06/17 30/06/18 30/06/19 30/06/20 30/06/21 Composite Net (%) 38.8 35.4 3.9 61.1 44.6 Benchmark (%) 22.9 9.5 10.3 5.7 25.1

Benchmark is MSCI AC World Index. Source: StatPro, MSCI. sterling

Performance – Canadian Dollar 12

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 12.3 5.9 6.4 YTD* 8.2 9.4 -1.2 1 Year* 47.0 27.2 19.8 3 Years 33.6 12.8 20.7 5 Years 35.0 14.1 20.9 10 Years 24.7 13.3 11.4 15 Years 16.9 8.9 7.9 Since Inception 15.5 8.3 7.3

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 29 February 2004. Figures may not sum due to rounding. Benchmark is MSCI AC World Index. Source: StatPro, MSCI Canadian dollars

Discrete Performance

30/06/16- 30/06/17- 30/06/18- 30/06/19- 30/06/20- 30/06/17 30/06/18 30/06/19 30/06/20 30/06/21 Composite Net (%) 34.9 39.4 -0.5 63.0 47.0 Benchmark (%) 19.4 12.7 5.6 7.0 27.2

Benchmark is MSCI AC World Index. Source: StatPro, MSCI. Canadian dollars

Performance – Australian Dollar 13

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 15.7 9.1 6.6 YTD* 14.4 15.7 -1.3 1 Year* 48.3 28.3 20.0 3 Years 35.6 14.5 21.0 5 Years 36.1 15.0 21.0 10 Years 26.0 14.5 11.6 15 Years 16.0 8.1 7.9 Since Inception 16.3 9.0 7.3

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 29 February 2004. Figures may not sum due to rounding. Benchmark is MSCI AC World Index. Source: StatPro, MSCI. Australian dollars

Discrete Performance

30/06/16- 30/06/17- 30/06/18- 30/06/19- 30/06/20- 30/06/17 30/06/18 30/06/19 30/06/20 30/06/21 Composite Net (%) 30.9 42.9 5.4 59.4 48.3 Benchmark (%) 15.9 15.6 11.9 4.6 28.3

Benchmark is MSCI AC World Index. Source: StatPro, MSCI. Australian dollars

Performance – Attribution 14

Stock Level Attribution Top and Bottom Ten Contributors to Absolute Performance

Since Inception* to 30 June 2021 Quarter to 30 June 2021 Asset Name Composite Asset Name Composite Contribution Contribution Average Average (%) (%) Weight (%) Weight (%) Amazon.com 6.9 224.9 Moderna 2.9 1.8 Atlas Copco 3.3 122.0 NVIDIA 3.4 1.5 Tencent 4.4 111.8 BioNTech 1.8 1.3 Petrobras 2.4 100.7 Kering 4.2 1.1 Vale 2.1 94.1 Illumina 4.3 1.0 Baidu.com 3.4 75.7 Shopify 3.0 0.9 Apple 1.3 62.2 Cloudflare 1.8 0.8 Tesla Inc 2.5 55.6 Amazon.com 5.5 0.6 Kering 2.7 48.2 Peloton 2.8 0.6 Facebook 2.7 44.8 The Trade Desk 1.3 0.6

Q-Cells 0.2 -44.3 TAL Education 1.1 -0.8 Nintendo 0.5 -37.3 Pinduoduo 4.2 -0.3 First Solar 0.6 -36.2 Coupang 1.5 -0.2 Vestas Wind Systems 0.6 -29.6 Tencent 5.3 -0.2 Pulte Group 0.3 -26.4 KE Holdings 0.9 -0.2 UBS 0.2 -25.0 Workday 2.4 -0.1 Straumann 0.6 -16.8 Alibaba 4.6 -0.1 Nokia 0.1 -15.2 Beigene 1.8 0.0 State Bank of India 0.0 -11.6 Tesla Inc 4.5 0.0 Tiffany & Co 0.1 -8.6 Delivery Hero 2.0 0.0

Source: StatPro. Long Term Global Growth composite, in US dollars. *29 February 2004. Some stocks may have only been held for part of the period.

Portfolio Overview 15

Top Ten Largest Holdings Stock Name Description of Business % of Portfolio Amazon.com Online retail and computing infrastructure 5.3 Meituan Chinese online services platform 5.2 Illumina Gene sequencing equipment and consumables 4.5 Tencent Internet service portal 4.5 Tesla Inc Electric vehicles, autonomous driving and solar energy 4.3 Alibaba Online commerce 4.3 Kering Luxury brand conglomerate 4.0 NVIDIA Visual computing technology 3.9 Pinduoduo Chinese e-commerce 3.8 ASML Semiconductor equipment manufacturer 3.7 Total 43.5

Sector Weights (%) 1 Consumer Discretionary 39.1 4 2 Information Technology 25.5 3 Health Care 16.6 1 4 Communication Services 14.2 5 Consumer Staples 1.6 6 Financials 1.4 3 7 Real Estate 0.7 8 Cash 0.9

Regional Weights (%) 1 North America 53.6 3 2 Emerging Markets 28.2 3 Europe (ex UK) 17.2 4 Cash 0.9

Figures may not sum due to rounding.

Governance Summary 16

Voting Activity Votes Cast in Favour Votes Cast Against Votes Abstained/Withheld Companies 28 Companies 16 Companies 2 Resolutions 275 Resolutions 54 Resolutions 4

In 1948, the United Nations Universal Declaration of Human Rights was the first rights declaration that explicitly applied to everyone, regardless of race, gender, economic circumstance and beliefs. It is as relevant as ever today We engage with our holdings on business and human rights issues, encouraging management teams to understand the growing expectations on their businesses and support the protection of human rights within their sphere of influence A lot of work is discretely going into improving human rights standards across international business and supply chains, much taking place under initiatives such as the UN Global Compact, to which we are a long-standing signatory

Firm-Wide Company Engagement Engagement Type Company Corporate Governance Cloudflare, Inc. Environmental/Social ASML Holding N.V., Alibaba Group Holding Limited, Beyond Meat, Inc., BioNTech SE, Facebook, Inc., NVIDIA Corporation, Peloton Interactive, Inc., Shopify Inc., The Trade Desk, Inc. AGM or EGM Proposals Delivery Hero SE, Kering SA

Notes on company engagements highlighted in blue can be found in this report. Notes on other company engagements are available on request.

Governance Summary 17

Rights, responsibilities and sustainable returns Many centuries later, the adoption of the Universal Declaration of Human Rights by the United Nations The oldest known bill of rights is thought by many General Assembly on 10 December 1948 was the final historians to be the Cyrus Cylinder. Following the act in one of the most remarkable achievements in human conquest of the City of Babylon by the armies of Cyrus history. Out of the ashes of the second world war, an the Great, the first king of ancient Persia, Cyrus international committee headed by the charismatic and apparently freed the slaves, declared that all people had dynamic former US First Lady Eleanor Roosevelt and the right to choose their own religion and established Vice Chair PC Chang of China managed to draft a racial equality. These and other decrees were recorded on ‘universal bill of rights’ that was endorsed by almost a baked-clay cylinder in the Akkadian language with every country in the world (there were a small number of cuneiform script. abstentions). Recognising this ancient object, now residing in the Before then, there had been a number of hugely British Museum, as the world’s first charter of human significant milestones towards universal rights such as rights, the script has been translated into all official the Magna Carta (1215), the French Declaration of the languages of the United Nations and its provisions Rights of Man and of the Citizen (1789), and the US Bill parallel the first four Articles of the 1948 Universal of Rights (1791), but there had never before been a Declaration of Human Rights. declaration of rights that explicitly applied to everyone, regardless of race, gender, economic circumstance and beliefs.

Members of the United Nations Commission on Human Rights rehearsing in the Delegates Lounge for a television show You and Human Rights. Left to right are: Professor Rene Cassin, France; Dr PC Chang, China; Quincy Howe, CBS (Columbia Broadcasting Service), moderator; Mrs Eleanor Roosevelt, US, Commission Chairman; Dr Charles Malik, Lebanon, and Mr E Kelen of UN Radio Division. © United Nations. https://www.flickr.com/photos/un_photo/37464345502/in/album-72157677599327615/

Governance Summary 18

Despite being over 70-years-old today, the Universal From this relatively recent, tentative start, human Declaration is still the foundation for all international rights awareness, and many accompanying dilemmas, are human rights law, and the fundamental rights that it sets now everywhere in business, not least because of the role out are as relevant as ever. One of the reasons for the of social media and increasing NGO and employee Declaration’s ongoing significance and longevity is the activism in holding companies to account. The resulting principle of ‘universalism’ that runs through the reputational risk from the mishandling of human rights document. At the insistence of Vice Chair PC Chang, the issues is ensuring that the ‘s in esg’ – social – is rapidly Chinese diplomat, philosopher and playwright whose reaching parity with the environmental (‘e’) and membership of the drafting committee was of pivotal governance (‘g’) issues in terms of commercial importance, there was no direct mention of any specific importance. Whether this is considered by all to be religion with respect to the principles, only freedom of appropriate or not, many businesses have learned the hard religion as a right. This ensured that the principles in the way that stakeholder expectations have changed beyond Declaration were articulated as natural, inalienable rights all recognition from the Milton Friedman thesis that the that could not be arbitrarily revoked by monarchs, clerics sole responsibility of the corporation was to make money or politicians. for shareholders. While this brief history of rights is of innate academic In the past few years alone, Rio Tinto’s Chief interest, human rights is a topic of rapidly growing Executive Jean-Sébastien Jacques was forced to resign currency and importance in investment management and after a number of aboriginal cultural sites were destroyed the wider business community. during the company’s mining operations; numerous Until relatively recently, the responsibility for fashion companies have been publicly named and shamed protecting human rights fell on sovereign states, for allegedly having forced labour in their supply chains; supported by a number of international agencies and non- companies providing products or services linked to governmental organisations (NGO). However following detention centres in the US and China have found several high profile incidents in the latter 20th century, themselves in the cross-hairs of campaign groups around not least the perceived lack of intervention by oil and the world; and corporations have been accused of being gas companies during the trial and execution of Nigerian tacitly ‘part of the problem’ in the lack of progress in community activist and environmental protestor improving the human rights and economic empowerment Ken Saro-Wiwa in 1995, the United Nations became of black, minority and first nation citizens in a number of increasingly interested in the role that businesses could countries. play in supporting the protection of human rights. This While many people tend to think of issues as modern culminated in human rights being specifically included in slavery and discrimination against minority groups when the United Nations Global Compact, launched in 2000 as they think of human rights in the economy, there are also a framework for socially responsible business operations, a range of evolving areas where different conceptions of embodied in the first two of 10 principles: employee and consumer rights are coming to the fore. “Businesses should support and respect the protection These include the right to digital privacy, gender and of internationally proclaimed human rights (Principle identity rights in the workplace and the right to safer One); and businesses should make sure that they are not working conditions for all, the latter starkly highlighted complicit in human rights abuses (Principle Two)”. by some of the inequalities of the pandemic. Human rights are also increasingly relevant to discussions on the This was followed up by the much more detailed best way to ‘net-zero’ emissions, taking account of issues United Nations Guiding Principles on Business and such as the economic rights of workers in the fossil fuel Human Rights, endorsed in 2011. More recently, many industry during a ‘just transition’ and the right to businesses have also recognised the role that they can protection from the adverse physical impacts of climate play in supporting the achievement of the UN Sustainable change. Technology platforms are also grappling with the Development Goals, particularly with respect to basic at times competing rights of free speech on one hand and universal needs such as primary healthcare, nutrition and a content stewardship duty of care towards protected sanitation. characteristics groups and vulnerable users online.

Governance Summary 19

For all of the above reasons, we are engaging with our holdings on business and human rights issues, supported by additional research in this area being undertaken by the Baillie Gifford Governance and Sustainability Team and a newly established Investment Human Rights Research Group. We encourage all management teams to understand the growing expectations on their business to understand their obligations and support the protection of human rights within their sphere of influence. Our experience to date is that the ambitious, innovative and growth-oriented kinds of companies that we aim to hold typically have no interest whatsoever in being even remotely connected to human rights abuses, and are often passionate to do what they can to support progress in this area. While it can be hard (and at times counter-productive) to take bold public positions in highly sensitive areas, very considerable amounts of thought and commitment are discretely going into improving human rights standards across international business and supply chains, much of this taking place under the auspices of invaluable initiatives such as the UN Global Compact, to which we are a long-standing signatory. Human rights are at their most difficult and contentious when countries at different stages of development place differing emphasis on the trade-offs between individual rights and collective national security or economic development goals. Investors and companies alike are nevertheless still expected to be positive advocates for human rights in these circumstances, or at the very least not complicit in abuses, even though most rightly understand the limitations of their sphere of influence and the very significant risks from missteps in this arena. For our part, we will report back on our work in this critically important and rapidly evolving area in our client and regular investment stewardship reporting.

Governance Engagement 20

Company Engagement Report Alibaba Group Holding Limited A call with IR allowed us to discuss and better understand some of the company's strategies in cloud, grocery and logistics. We also covered Alibaba's continued commitment to being customer-focused and to developing services to support China's rural population. One of the objectives of this call was to encourage improvement in Alibaba's ESG reporting, which has been minimal since 2018. We were able to do this and offered our assistance going forward, receiving encouraging responses and commitments for comprehensive ESG reporting by next year. We also gained more insight into how sustainability is managed across the Group's vast businesses and hope to follow this up with further engagement this year. ASML Holding N.V. Our meeting with Lucy Lau, Sustainability Strategy Manager, delved into ASML's climate- related targets and perspectives. The company is underpinning the continuation of Moore's Law thanks to its increasingly advanced lithography machines to print silicon wafers onto semiconductor chips. While the latest machines are increasingly power- hungry, they also enable products that in turn allow for greater energy efficiency. There are therefore important trade-offs here which need to be examined. We discussed the company's scope three emissions, which it began reporting on in 2019 - an area which Lau acknowledged is still a work-in-progress. Indeed, to galvanise more progress, ASML has made a public plea to encourage suppliers to accelerate their own reporting. In our view, ASML's reporting, targets and narrative stand out well: it is one of the few companies that has 1.5C-compliant targets for direct emissions, and it openly recognises it must take more action. In terms of next steps, we will continue to reflect on how properly costed resources such as energy, water and greenhouse gases might disrupt the geographic layout of the current semiconductor supply chain. In addition, we plan to deepen our understanding of the extent and pace of climate-related trade-offs associated with the industry. We will also continue to explore the physical risks of climate change - both in terms of disrupting access to fresh water (critical for the big chip fabricators) and the 30- 40-year outlook for sea level rising/flooding. BioNTech SE BioNTech's ambition to be climate neutral by 2030 strikes us as an appropriate level of ambition for a company focused on global health. Chief Operating Officer and CFO Sierk Poetting, together with Associate Director of CSR Sven Griemert, informed us that they commenced working on climate targets in 2019 while the company was still private. They took the necessary time to define the relevant issues and assess materiality ahead of the time-intensive public listing process. To us, this demonstrates the forward-looking and science-based nature of the company culture. While the reporting of scope one and two emissions is appropriately detailed and robust, Poetting and Griemert acknowledged that Scope three reporting is a work-in-progress albeit a clear ambition. In this context, we discussed whether a shift from single-use vessels to steel vessels might be an option for addressing structural challenges in the industry - we will seek to explore this further with the company in future. In the nearer term, with vaccine production increasing rapidly, the immediate focus is on energy sources. BioNTech is conducting an energy audit through 2021 and anticipates the need to shift from purchasing Renewable Energy Certificates (RECs) to the direct sourcing of green electricity. We will continue to follow BioNTech's progress in stepping-up its Scope three emissions reporting. We remain generally encouraged by the company's climate approach and ambition. Cloudflare, Inc. Our meeting with co-founder and CEO Matthew Prince provided an opportunity to learn more about Cloudflare's corporate culture. For Prince, culture is essential for long-term growth. In order to build an enduring technology company, he believes Cloudflare's culture must promote relentless curiosity. Additionally, he believes that employees must also be principled, proactive and transparent. For example, Cloudflare has built a substantial public policy team to examine regulatory and/or governance hurdles that it might face in future, despite not having encountered any major issues as yet. With regards to recruitment, Prince and co-founder Michelle Zatlyn still spend a substantial amount of time in final interviews to ensure that all employees feel that senior management is accessible to them, thereby reducing friction to ideas within the company. We continue to learn about Cloudflare's culture and what it may mean for company behaviour and growth prospects.

Governance Engagement 21

Company Engagement Report Facebook, Inc. We spoke to CFO David Wehner and head of EMEA Nicola Mendelsohn to probe into Facebook's approach to society, climate change, and a range of related business factors. They highlighted various social initiatives such as population density mapping on behalf of government agencies to help tackle the Covid-19 pandemic and laying subsea cables to provide internet access to previously unserved regions in Africa. The company is cognisant of data privacy concerns and is keen to avoid prior mistakes as it works to diversify sources of revenue away from targeted advertising and towards virtual reality, enterprise services and ecommerce. There is also a recognition that Facebook's growth in such business areas will be largely organic, given heightened regulatory scrutiny of large acquisitions. On climate change, Wehner and Mendelsohn emphasised that Facebook's target to achieve net-zero emissions by 2030 is only feasible thanks to the steps the company has already taken over the past decade - notably datacentre construction, achieving 100 per cent renewable energy usage, and now examining its supply chains. It is not solely governmental and public scrutiny driving such environmental progress; it is also Facebook's selected business partners who are insistent on improvements.

Such initiatives represent management's strategy to regain public confidence following the societal challenges faced by the company in recent years. While seeking to develop new growth opportunities, Wehner and Mendelsohn feel it is important that Facebook both acts, and is perceived to act, above reproach. For us, we are encouraged by Facebook's demonstrable adaptability and positive changes relating to societal and environmental challenges. We will continue to engage with management on such issues. Kering SA We held a meeting with General Counsel and Investor Relations to discuss resolutions for Kering's 2021 AGM. The meeting followed our participation in the company's 2020 Corporate Governance Roadshow, plus our 2019 engagement with Kering's lead independent director and remuneration committee chair. During those prior engagements, we had voiced concerns about the structure of Kering's long-term incentive plan (LTIP) - concerns that had led us to vote against management's remuneration proposals at previous AGMs. Encouragingly, our recent meeting revealed the steps Kering has taken to directly address our concerns. Specifically, it has moved away from trigger vesting and towards more ambitious and stricter LTIP targets, plus it has incorporated gender diversity and biodiversity ESG metrics. Thanks to the Environmental Profit & Loss accounting practices, Kering had already identified its total land footprint as being 350,000 hectares. The LTIP biodiversity target of converting 200,000 hectares linked to its supply chain to more sustainable regenerative agricultural practices - about 57 per cent of total land footprint - seems ambitious in this context. Overall, Kering demonstrated thoughtful consideration of principles and best practice for adopting robust ESG metrics in the LTIP, namely: materiality, alignment to sustainability strategy, measurability and target stretch. It is also considering extending the share rewards offering to a wider range of workforce beneficiaries in future. We are satisfied with the outcome of our engagements to date. NVIDIA Corporation We met with Colette Kress, CFO, and Tonie Hansen, Senior Director for CSR and Sustainability, to explore NVIDIA's climate aspirations and commitments. Kress' participation in this sustainability-focused meeting was both unexpected and impressive and speaks to the importance of environmental considerations to the company. She emphasised that the overriding aim of NVIDIA's climate approach is to improve the energy efficiency of its Graphics Processing Units (GPUs) and data centres. One of the key questions for NVIDIA is whether it can access enough 'green' components over the next decade to satisfy the demands of its increasingly climate-aware customer base and whether this could become a point of competitive edge and/or premium pricing. Looking to the future, NVIDIA currently sources 25 per cent of its electricity needs from renewables and would like to increase this proportion to 65 per cent by 2025. Management is keen to increase reporting coverage of value chain emissions, with expansion across upstream manufacturing and downstream product use/disposal as a priority for this year. The company also recognises the need to engage with its own suppliers and customers for better data so that in future it can set a wider value chain net-zero target. As NVIDIA gathers more scope three data, we will seek to examine how it develops its targets and will monitor the additional supplier engagement that it promotes. We recognise that while the company's suppliers provide it with data on energy, waste and water use, the quality and extent of such data is inadequate. This will be a key area for NVIDIA to influence and improve upon. In addition, we intend to monitor NVIDIA's planned work in relation to waste management and end-of-life recycling/re-use.

Governance Engagement 22

Company Engagement Report Peloton Interactive, Inc. CFO Jill Woodworth contacted us to explain Peloton's response to the tragic death of a child on one of its treadmills in the US in March 2021. The company notified the Consumer Product Safety Commission (CPSC) as soon as it learned of the fatality. However, Peloton's two subsequent actions contributed to a rapid and public souring of relations. Firstly, Peloton directly contacted its treadmill customers within 24 hours to inform them of the incident and remind them of safety protocols, rather than doing so via the CPSC which is the formal channel for such communications. Secondly, in order to respect customers' wishes of privacy, Peloton did not share certain customer materials detailing injuries - leading the company to be criticised for being uncooperative. Both missteps started with good intentions, however being at odds with the CPSC is not a viable position. Peloton worked rapidly to restore relations, leading to a public apology and a voluntary product recall, and it will redesign the treadmill. Woodworth describes this episode as a 'massive wake-up call'. The company realises it must take a leadership role in raising product safety standards (the treadmill had met all the CPSC safety standards, but clearly those were insufficient for home fitness). From an investment perspective, we think the product recall is largely immaterial to our long-term thesis, but more importantly we are encouraged by what we have learned about Peloton's corporate character - a customer-centric approach, willingness to recognise and learn from errors, proactive engagement with regulators and stakeholders, and an ambition to raise the bar on product safety across the home fitness industry. Shopify Inc. We spoke with Shopify, including Stacey Kauk director of the company's Sustainability Fund, to learn more about the approach to positive climate influence across the ecommerce value chain. Shopify reports its direct emissions and runs both its own and cloud-related activities on 100 per cent renewable power. Just as importantly, it is a direct investor in carbon reduction and removal innovators. This creates a deep knowledge of the offsetting market which it then, in turn, puts at the disposal of Shopify-enabled merchants that wish to offer offsets to their customers. We also discussed the company's interactions with logistics operators and carriers, where Shopify is exploring ways to accelerate its offer of lower-carbon warehousing and distribution. The company also acknowledged that it may be able to deploy the deep dataset it is gathering on ecommerce purchases to further educate and empower consumers on product carbon footprints. Shopify displays a strong pro-climate narrative in its communications, and we look forward to seeing how this continues to develop into direct action for decarbonisation. The Trade Desk, Inc. We met with founder and CEO Jeff Green to delve into the data privacy challenges and opportunities facing The Trade Desk's advertising business. As 'walled gardens' (e.g. Google and Apple) with troves of first-party data move to eliminate third-party cookies from their browsers and operating systems (on the premise of enhanced user privacy), the concern facing The Trade Desk is that the open internet will be starved of some of the data that facilitates the company's targeted advertising business. In response, the company has launched a nascent alternative to third-party cookies that not only enhances data privacy and control for users, but also supports targeted advertising for the benefit of the entire digital advertising industry and the millions of small publishers who have business models based on advertising. The Trade Desk's Unified ID 2.0 initiative is based on entirely anonymised email addresses (meaning it cannot be controlled by any browser), works across all channels (desktop, mobile, streaming TV), and increases user convenience and control. Crucially, The Trade Desk has open-sourced the initiative and it will be operated by a consortium of partners so that no individual company has control over user data. This is because its ambition is to benefit the internet as a whole - ad-tech competitors, publishers, advertisers, users, and regulators alike. We are encouraged by The Trade Desk's adaptability and ability to thoughtfully engage with multiple stakeholders, while also expanding its growth opportunities.

Voting 23

Votes Cast in Favour Company Meeting Details Resolution(s) Voting Rationale Amazon.com Annual 13 We supported a shareholder proposal to improve 05/26/21 the transparency of Amazon's corporate lobbying policies and governance. We believe greater transparency of all political expenditures and lobbying, particularly indirect spending through trade associations, coalitions and charities, would enable shareholders to assess alignment with Amazon's values and corporate goals. Amazon.com Annual 6 We supported a shareholder proposal for Amazon 05/26/21 to report on the median gender and racial pay gap across the business. We believe this proposal requests data which will be useful in understanding Amazon's efforts to promote equality and inclusion in the business. Facebook Annual 6 We supported a shareholder resolution calling for a 05/26/21 report on child exploitation as we believe this is in the best interest of shareholders. Facebook Annual 8 We supported a shareholder resolution regarding 05/26/21 platform misuse as we believe this is in the best interest of shareholders. Netflix Inc Annual 4 We supported a shareholder resolution regarding 06/03/21 disclosure of political contributions. Companies Voting Rationale ASML, Adyen Nv, Amazon.com, Beigene Ltd, Beyond We voted in favour of routine proposals at the aforementioned Meat Inc, BioNTech ADR, Carvana, Cloudflare Inc, meeting(s). Delivery Hero AG, Dexcom Inc, Facebook, Hermes International, Illumina, Intuitive Surgical, Kering, Meituan, Moderna Inc, NIO Inc ADR, NVIDIA, NetEase.com ADR, Netflix Inc, Salesforce.com, Shopify 'A', Spotify Technology SA, Tencent, The Trade Desk, Workday Inc, Zoom

Votes Cast Against Company Meeting Details Resolution(s) Voting Rationale Adyen Nv AGM 7 We opposed the authority to issue shares. 06/03/21 Adyen Nv AGM 8 We opposed the authority to exclude pre-emptive 06/03/21 rights from share issuances. Amazon.com Annual 10 We opposed a shareholder resolution requesting 05/26/21 an alternative director candidate policy as we think it is overly prescriptive and believe the nominating and governance committee is best placed to manage this process. Amazon.com Annual 12 We opposed a shareholder resolution requesting a 05/26/21 reduction in the threshold for call special meetings as we think the current provision is appropriate. Amazon.com Annual 5 We opposed a shareholder resolution requiring an 05/26/21 independent chair. We believe the current Chair, Jeff Bezos, is a responsible, long-term steward of the business. We also believe the SID Jonathan Rubenstein provides appropriate balance to the current joint CEO/Chair set-up.

Voting 24

Company Meeting Details Resolution(s) Voting Rationale Amazon.com Annual 7 We opposed a shareholder resolution requesting a 05/26/21 report on promotion data as we do not believe it is necessary. Amazon.com Annual 8 We opposed a shareholder resolution requesting a 05/26/21 report on packaging materials as we think the company is performing well in this area and don't think additional disclosure is required. Amazon.com Annual 9 We opposed a shareholder resolution requesting a 05/26/21 diversity and equity report as we believe the company has made good progress in this area over the past year and we will continue to engage with them on this topic. ASML AGM 11.b, 11.d We opposed two resolutions seeking authority to 04/29/21 issue shares without pre-emptive rights. ASML AGM 3.a, 5, 6 We opposed three resolutions on remuneration. 04/29/21 Beigene Ltd Annual O12-O15 We opposed four resolutions relating to 06/16/21 remuneration due to concerns with change in control provisions. Beigene Ltd Annual O6-O11 We opposed six capital issuance resolutions. 06/16/21 BioNTech ADR Annual 5 We opposed the authority to issue equity. 06/22/21 Delivery Hero AG AGM 7, 8 We opposed two resolutions which sought to issue 06/16/21 equity. Facebook Annual 4 We opposed a shareholder resolution regarding the 05/26/21 dual class share structure as we are comfortable with the current capital structure. Facebook Annual 5 We opposed a shareholder resolution requesting 05/26/21 an independent chair as we are comfortable with the current board composition. Facebook Annual 7 We opposed a shareholder resolution regarding the 05/26/21 appointment of a human/civil rights expert on the board as the company is acting on the outcome of a recent human rights audit. Facebook Annual 9 We opposed a shareholder resolution requesting 05/26/21 the company becomes a public benefit corporation as we do not believe this is in the best interest of shareholders. Hermes International MIX 19, 20, 22, 23 We opposed the resolution which sought authority 05/04/21 to issue equity. Kering MIX 16, 18-22 We opposed six resolutions which sought authority 04/22/21 to issue equity because the potential dilution levels are not in the interests of shareholders. Meituan AGM 6, 8 We opposed two proposals to issue equity without 06/23/21 pre-emptive rights. Moderna Inc Annual 3 We opposed the appointment of the auditor. 04/28/21 Netflix Inc Annual 3 We opposed the executive compensation policy. 06/03/21 Netflix Inc Annual 5 We opposed a shareholder resolution to eliminate 06/03/21 the supermajority voting provisions. This is consistent with how we have voted on this resolution in previous years.

Voting 25

Company Meeting Details Resolution(s) Voting Rationale Netflix Inc Annual 6 We opposed a shareholder resolution requesting 06/03/21 changes to the executive compensation philosophy. NVIDIA Annual 2 We opposed executive compensation. 06/03/21 Salesforce.com Annual 2 We opposed the equity incentive plan. 06/10/21 Salesforce.com Annual 4 We opposed executive compensation. 06/10/21 Salesforce.com Annual 5 We opposed a shareholder resolution relating to 06/10/21 the company reincorporating as a public benefit corporation, which we did not believe to be in the best interests of clients. Shopify 'A' Annual 3-5 We opposed three resolutions relating to 05/26/21 compensation. Tencent AGM 5 We opposed the authority to issue equity without 05/20/21 pre-emption rights.

Votes Abstained Company Meeting Details Resolution(s) Voting Rationale Amazon.com Annual 11 We abstained on a shareholder resolution 05/26/21 requesting a report on anti-competitive practices as we are unclear as to what additional information the company can provide and intend to engage with them on this topic. Amazon.com Annual 14 We abstained on a shareholder resolution 05/26/21 requesting a report on customer use of certain technologies. The company has made progress in this area over the past year, and we intend to continue our dialogue with them. Amazon.com Annual 4 We abstained on a shareholder resolution 05/26/21 requesting a report on customer due diligence. The company has responded to concerns in this area and we are continuing to engagement with them on it. Netflix Inc Annual 1A We withheld support from the re-election of a 06/03/21 director as they were considered overboarded.

Votes Withheld

We did not withhold on any resolutions during the period.

Transaction Notes 26

There were no new purchases during the period.

Complete Sales Stock Name Transaction Rationale Alphabet Inc Class C Whilst several sources of upside remain, namely in the cloud business, hardware, and YouTube subscriptions, we have waning conviction in Alphabet's 'moonshot' bets (such as Waymo), substantial success in which would likely be required to produce a 5x return from here. Given the reduction in our assessment of the probability-adjusted upside, and with strong competition for capital in the portfolio, we therefore sold the Alphabet holding.

Legal Notices 27

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