Global Stewardship 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 17 Governance Summary them to invest, and with their tax advisers for advice relevant to 23 Voting their own particular circumstances. This document contains information on investments which 26 Transaction Notes does not constitute independent research. Accordingly, it is not 27 Legal Notices subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned. This document is solely for the use of professional All information is based on a representative portfolio, new investors and should not be relied upon by any other client portfolios may not mirror the representative portfolio person. It is not intended for use by retail clients. exactly. As at 30 June 2021, in US dollars and sourced from Baillie Gifford & Co unless otherwise stated. Important Information and Risk Factors Canada Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK Baillie Gifford International LLC is wholly owned by Baillie Professional/Institutional clients only. Baillie Gifford Overseas Gifford Overseas Limited; it was formed in Delaware in 2005 Limited is wholly owned by Baillie Gifford & Co. Baillie and is registered with the SEC. It is the legal entity through Gifford & Co and Baillie Gifford Overseas Limited are which Baillie Gifford Overseas Limited provides client service authorised and regulated by the Financial Conduct Authority. and marketing functions in North America. Baillie Gifford Baillie Gifford Asia (Hong Kong) Limited Overseas Limited is registered with the SEC in the United 柏基亞洲(香港)有限公司 is wholly owned by Baillie Gifford States of America. Overseas Limited and holds a Type 1 and Type 2 licence from The Manager is not resident in Canada, its head office and the Securities & Futures Commission of Hong Kong to market principal place of business is in Edinburgh, Scotland. Baillie and distribute Baillie Gifford’s range of collective investment Gifford Overseas Limited is regulated in Canada as a portfolio schemes to professional investors in Hong Kong. Baillie manager and exempt market dealer with the Ontario Securities Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 Commission ('OSC'). 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Discretionary Investment Manager and Non-Discretionary Israel Investment Adviser. Baillie Gifford Overseas is not licensed under Israel’s Regulation of Investment Advising, Investment Marketing and Australia Portfolio Management Law, 5755-1995 (the Advice Law) and does not carry insurance pursuant to the Advice Law. This document is only intended for those categories of Israeli Baillie Gifford Overseas Limited (ARBN 118 567 178) is residents who are qualified clients listed on the First registered as a foreign company under the Corporations Act Addendum to the Advice Law. 2001 (Cth) and holds Foreign Australian Financial Services Licence No 528911. This material is provided to you on the basis that you are a “wholesale client” within the meaning of section 761G of the Corporations Act 2001 (Cth) Past Performance (“Corporations Act”). Please advise Baillie Gifford Overseas Limited immediately if you are not a wholesale client. In no Past performance is not a guide to future returns. Changes in investment strategies, contributions or withdrawals may circumstances may this document be made available to a “retail materially alter the performance and results of the portfolio. client” within the meaning of section 761G of the Corporations Act. This material contains general information only. It does Potential for Profit and Loss not take into account any person’s objectives, financial All investment strategies have the potential for profit and loss. situation or needs. Stock Examples Qatar Any stock examples, or images, used in this paper are not intended to represent recommendations to buy or sell, neither is The materials contained herein are not intended to constitute an it implied that they will prove profitable in the future. It is not offer or provision of investment management, investment and known whether they will feature in any future portfolio advisory services or other financial services under the laws of produced by us. Any individual examples will represent only a Qatar. The services have not been and will not be authorised by small part of the overall portfolio and are inserted purely to the Qatar Financial Markets Authority, the Qatar Financial help illustrate our investment style. A full list of portfolio Centre Regulatory Authority or the Qatar Central Bank in holdings is available on request. accordance with their regulations or any other regulations in Qatar. Oman

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Product Overview Global Stewardship is an actively-managed, global growth equity strategy, combining established regional stock picking with a disciplined portfolio construction process and innovative approach to stewardship.

Risk Analysis

Key Statistics Number of Holdings 70 Typical Number of Holdings 70-100 Active Share 90%* Rolling One Year Turnover 22%

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

Although long-term performance is very positive, year to date returns have been more volatile due to a combination of profit taking and a change in market sentiment We are confident in the sustainable growth prospects for companies held in Global Stewardship, which in aggregate have strong balance sheets and are investing to underpin their future success That said, there has been an interesting evolution of the portfolio's holdings in three areas: technology firms, pandemic-driven change, and innovative healthcare

Baillie Gifford Key Facts Assets under management and advice US$486.8bn Number of clients 730 Number of employees 1488 Number of investment professionals 300

Commentary 03

One of the defining features of Baillie Gifford’s Performance investment style is our time horizon. As you will know, we reject the pressure to react to every news headline, Before that, however, some comments on recent returns. market move, or quarterly results release and instead try Global Stewardship’s objective is to outperform over to base our decisions on a thoughtful imagining of what a rolling five-year periods, in keeping with the long-term business may look like in five, ten years or even further approach described above. Over this time horizon, out. Correspondingly, turnover in our portfolios is performance has been very good, showing the value of typically low, around 20 per cent per annum. This our high conviction, low turnover strategy. In particular, equates to an average holding period of five years, versus Global Stewardship enjoyed a strong 2020, the results of closer to one year for the market. which can still be seen in our one-year results. But But low turnover does not mean no turnover. We are although more recent headline figures are unremarkable, constantly on the hunt for new ideas. At the same time this masks significant volatility in our underlying our investment enthusiasm for existing holdings will performance, including double-digit moves in both sometimes wane – new competitors to our companies can directions over relatively short periods. emerge, consumer preferences may change, or our initial This is despite encouraging operating performance investment analysis could simply prove to have been by many holdings. For example, shares in MarketAxess, wrong. the electronic bond trading platform, are down around It is interesting, therefore, to examine how gradual 19 per cent this year, despite the company reporting first stock specific changes add up to a broader evolution in quarter revenues up 16 per cent on record credit trading the shape and exposures of the portfolio. This is explored volumes. Admittedly costs also rose, although even this below. was partly due to an increase in headcount, which strikes us as sensible investment for the future.

Commentary 04

As a result, we believe that the recent volatility in Portfolio evolution performance has not been caused by any fundamental issues with portfolio holdings, but rather is due to a To us, these are characteristics of sustainable growth: combination of ‘profit taking’ in some stocks, combined long-term operational progress driven by companies with a change in market sentiment. investing for the future, and based on solid foundations On the latter point, one widely discussed market rather than financial engineering. As a result, we remain ‘narrative’ is that investors have moved on from fretting optimistic about the prospects for the portfolio. But that about pandemic-driven slowdowns and are now more does not mean we are sitting on our hands. In March focused on the likelihood of rising inflation and higher 2019, portfolio turnover was just 15 per cent, but this interest rates in the future. Some assume that this picked up to 21 per cent in March 2020 and peaked at scenario would be bad for long-term growth investors 25 per cent earlier this year. This was partly a result of like us. Higher inflation may erode the value of the long reductions to stocks which had performed exceptionally duration cashflows we expect our companies to achieve, well, but also a reflection of an evolution of holdings while higher interest rates means applying a bigger away from some of the winners of the past five years and discount rate to those same cashflows. All else equal, this into the growth companies of the decade ahead. Although means a lower equity value today. Double whammy! this is the output of decisions on individual stocks, three themes emerge. The work of our Risk Team suggests that although the link between inflation and equity returns has been much First is a gradual ‘changing of the guard’ with respect to technology stocks. Two years ago, Global Stewardship debated, the results are largely inconclusive, particularly 3 over longer time periods. In addition, our stock-picking had almost 10 per cent in the big three US internet approach means we spend little time attempting to guess platforms: Amazon, Alphabet (Google’s parent company), the path inflation will take from here and so can add little and Facebook. Today, that exposure has almost halved, as to this conversation. Where we can, however, offer we have reduced the positions in Amazon and Alphabet reassurance is in relation to our ongoing confidence in the and sold out of Facebook completely. Global Stewardship portfolio. This reduction is explained by a combination of our One headwind to short-term performance is that lower confidence in the companies’ growth prospects many firms across the market will enjoy a good year from here, plus some question marks on sustainability. in 2021 as their profits bounce back from pandemic On the former point, sheer size works against these lows. This is reflected in earnings estimates for the next firms. Our hurdle rate for investment is the potential to 12 months, which show growth in the portfolio lagging double over five years and it is clearly more difficult for, that of the index. But this is not sustainable, and we are say, Amazon to do that from its starting point today of firmly of the belief that the companies held will $1.7trn. On the latter point, sustainability concerns were significantly outgrow the market over time. Portfolio- a major factor in our decision to sell Facebook. The level estimates suggest that long-term revenue growth for company let its users down in relation to Cambridge the portfolio will be 17 per cent per annum, more than Analytica, and successfully dealing with the different twice the eight per cent per annum expected of the index. pressures with respect to content moderation may prove beyond even Facebook’s scale and innovation. This growth is supported by the high level of expansionary spending being undertaken by the Taking their place are examples of what we believe businesses owned in Global Stewardship. We monitor will be among the next generation of technology winners. the portfolio’s Deployment Ratio1, which looks at the This is either because they operate in areas which offer amount firms are reinvesting in their own future versus faster growth potential, such as Meituan in Chinese meal the level of shorter-term payouts in the form of dividends delivery and MercardoLibre in online retail and payments and share buybacks. As at the end of March, Global in Latin America, or because they are simply younger Stewardship (1.9x) was firmly in the camp of building firms, with a greater focus on industries which have not for the future, while the low level of investment across yet seen the same sort of revolution as retail and media. the index (0.5x) is more likely to lead to long-term Twilio’s cloud-based communications service to help contraction. Moreover, the portfolio has the balance sheet businesses talk to their customers springs to mind, as to cope, with portfolio-level gearing sitting at zero2. does Affirm’s provision of point-of-sale credit, which increases affordability for consumers and supports

1 (CAPEX – Depreciation + R&D)/(Buybacks and Dividends) 2 As at 31 March 2021, the portfolio’s debt/equity ratio was 0.1 per cent versus the index at 52.1 per cent. 3 Based on a representative portfolio, as at 30 June 2019.

Commentary 05

merchants by increasing conversion rates. We have also been adding to firms which will The second theme is an increasing number of holdings underpin the discovery and development of new drugs. in areas of economic activity which we believe will be In addition to Illumina, earlier this year we took a new transformed over the next decade, and where this change holding in Dassault Systèmes. Dassault is a provider of has been either more firmly established or even 3D software for the design of new products, and its life accelerated by the pandemic. sciences division was involved in 64 per cent of US novel drug approvals during 2020. We have also purchased Examples here include Zoom, the provider of video Codexis, a protein engineering company that creates conferencing software which will reduce the need for custom enzymes. Biotherapeutics could be huge for business travel, Upwork, a platform for freelance workers Codexis, as – working in partnership with major to connect with potential employers, and Samsung SDI, a pharmaceutical firms – it designs enzymes which help battery maker which will provide the technology needed create novel protein and gene therapies to address to help the world transition to sources of renewable previously unmet medical needs. energy. These stocks have joined already substantial positions in companies like internet retail platform These three areas have proved fruitful hunting Shopify. Two years ago, few had heard of it. Today, grounds for us over the past couple of years. But more than 1.7 million merchants rely on Shopify for identifying the stocks is only the beginning. As you will services like web-based sales, inventory management know, we take our responsibility to be good stewards of and delivery logistics. Even venerable Heinz found that these companies very seriously, and this is reflected by a its consumers were struggling to buy its products due to rigorous and systematic programme of ongoing lockdown restrictions and signed up with Shopify to help engagement with portfolio holdings. Details can be found it launch its ‘Heinz to Home’ offering in just one week4. later in this document, along with a summary of our work during 2020 in our latest Environmental, Social and The third, and perhaps most exciting, theme, is in Governance (ESG) report which can be accessed via the healthcare. Some had predicted that the 21st century will following link: 2021 ESG Report. be the century of biology, as our increasing ability to analyse and understand human diseases at the genetic If nothing else, recent returns serve as a reminder that level would lead to a transformation in medicine. This our long-term, low turnover style will lead to short-term potential exploded into the public consciousness during volatility. But there remains a significant opportunity for 2020 with the rapid development of Covid vaccines. patient investors. Companies held in Global Stewardship Famously, it took biotech firm Moderna (not held in have strong balance sheets and are investing in their Global Stewardship) just four days to create its version: future growth. With exposure to the next generation of two days for Illumina (which makes gene sequencing tech winners, accelerating change, and innovative machines, a longstanding holding in Global Stewardship) healthcare, the future looks bright. to analyse the coronavirus genome, then two days for Moderna to apply its technology to the problem. The views expressed reflect the personal opinion of We firmly subscribe to the view that we are on the the author and should not be considered as advice or a cusp of something quite exciting in healthcare, and stocks recommendation to buy, sell or hold a particular held by Global Stewardship include Denali, a biotech investment. company seeking to cure neurodegenerative diseases, Pacira BioSciences, which produces a non-opioid pain treatment for pain relief, and Exact Sciences, which offers molecular cancer diagnostic tests.

4 Head here for bulk bean buying! Heinz To Home

Commentary 06

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 cuneiform script. of 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 René 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/

Commentary 07

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

Commentary 08

For all of the above reasons, we are engaging with our holdings on business and human rights issues and highlight a couple of examples – Alphabet and Amazon – later in this report. We are supported by additional research in this area being undertaken by our Governance and Sustainability Team, along with a newly established Investment Human Rights Research Group. We encourage all management teams to recognise 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 regular reporting.

Performance - US Dollar 09

Performance Objective +2 to 3% p.a. over rolling 5 year periods vs benchmark.

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* 7.4 7.5 -0.2 YTD* 9.2 12.6 -3.3 1 Year* 53.4 39.9 13.5 3 Years 27.9 15.1 12.8 5 Years 27.6 15.2 12.4 Since Inception 24.9 14.1 10.9

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 31 December 2015. Figures may not sum due to rounding. Benchmark is MSCI ACWI 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 (%) 32.5 22.2 5.2 29.7 53.4 Benchmark (%) 19.4 11.3 6.3 2.6 39.9

Benchmark is MSCI ACWI Index. Source: StatPro, MSCI. US dollars

Performance - Euro 10

Performance Objective +2 to 3% p.a. over rolling 5 year periods vs benchmark.

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 6.4 6.6 -0.2 YTD* 12.7 16.1 -3.4 1 Year* 45.3 32.5 12.8 3 Years 27.2 14.5 12.7 5 Years 26.0 13.7 12.3 Since Inception 22.9 12.2 10.7

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 31 December 2015. Figures may not sum due to rounding. Benchmark is MSCI ACWI 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 (%) 29.0 19.4 7.8 31.5 45.3 Benchmark (%) 16.3 8.7 9.0 4.1 32.5

Benchmark is MSCI ACWI Index. Source: StatPro, MSCI. euro

Performance - Sterling 11

Performance Objective +2 to 3% p.a. over rolling 5 year periods vs benchmark.

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 7.2 7.4 -0.2 YTD* 8.1 11.4 -3.3 1 Year* 37.2 25.1 12.1 3 Years 26.0 13.4 12.6 5 Years 26.8 14.4 12.4 Since Inception 26.4 15.4 11.0

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 31 December 2015. Figures may not sum due to rounding. Benchmark is MSCI ACWI 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 (%) 36.3 20.2 9.1 33.6 37.2 Benchmark (%) 22.9 9.5 10.3 5.7 25.1

Benchmark is MSCI ACWI Index. Source: StatPro, MSCI. sterling

Performance – Canadian Dollar 12

Performance Objective +2 to 3% p.a. over rolling 5 year periods vs benchmark.

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 5.8 5.9 -0.2 YTD* 6.2 9.4 -3.2 1 Year* 39.5 27.2 12.3 3 Years 25.4 12.8 12.5 5 Years 26.4 14.1 12.3 Since Inception 22.3 11.7 10.6

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 31 December 2015. Figures may not sum due to rounding. Benchmark is MSCI ACWI 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 (%) 32.5 23.8 4.5 35.2 39.5 Benchmark (%) 19.4 12.7 5.6 7.0 27.2

Benchmark is MSCI ACWI Index. Source: StatPro, MSCI. Canadian dollars

Performance – Australian Dollar 13

Performance Objective +2 to 3% p.a. over rolling 5 year periods vs benchmark.

Periodic Performance

Composite Net (%) Benchmark (%) Difference (%) 3 Months* 8.9 9.1 -0.2 YTD* 12.3 15.7 -3.4 1 Year* 40.7 28.3 12.4 3 Years 27.2 14.5 12.7 5 Years 27.4 15.0 12.4 Since Inception 24.2 13.4 10.8

Annualised periods ended 30 June 2021. *Not annualised. Inception date: 31 December 2015. Figures may not sum due to rounding. Benchmark is MSCI ACWI 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 (%) 28.6 26.8 10.7 32.2 40.7 Benchmark (%) 15.9 15.6 11.9 4.6 28.3

Benchmark is MSCI ACWI Index. Source: StatPro, MSCI. Australian dollars

Performance – Attribution 14

Stock Level Attribution Top and Bottom Ten Contributors to Relative Performance

Quarter to 30 June 2021 One Year to 30 June 2021 Stock Name Contribution (%) Stock Name Contribution (%) Shopify 1.1 Tesla Inc 5.2 Staar Surgical 0.6 Upwork 1.4 Upwork 0.5 Staar Surgical 1.0 Denali Therapeutics 0.4 Denali Therapeutics 1.0 NVIDIA 0.4 Shopify 0.6 Illumina 0.3 TSMC 0.6 Zoom 0.2 Samsung SDI 0.6 Zalando 0.2 NVIDIA 0.5 The Trade Desk 0.1 The Trade Desk 0.5 Adevinta 0.1 Sartorius Stedim Biotech 0.4

SoftBank Group -0.5 MarketAxess -1.3 MarketAxess -0.4 LendingTree -0.7 Chegg -0.3 Spotify Technology -0.4 Kubota -0.3 Netflix -0.4 Pacira BioSciences -0.3 Chegg -0.3 Prudential -0.3 Pacira BioSciences -0.3 iRobot -0.3 Apple -0.3 Redfin -0.2 Alibaba -0.2 Workday -0.2 Alphabet -0.2 Microsoft -0.2 Tencent -0.2

Source: StatPro, MSCI. Global Stewardship composite relative to MSCI ACWI Index. 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 Shopify Cloud-based commerce platform provider 5.5 Tesla Inc Electric vehicles, autonomous driving and solar energy 3.0 Amazon.com Online retail and computing infrastructure 2.9 Upwork Online freelancing and recruitment services platform 2.7 Chegg Online educational company 2.7 MarketAxess Electronic bond trading platform 2.6 TSMC Semiconductor manufacturer 2.6 STAAR Surgical Opthalmic implants for vision correction 2.4 Netflix Subscription service for TV shows and movies 2.2 NVIDIA Visual computing technology 2.2 Total 28.8

Sector Weights (%)

6 1 Consumer Discretionary 21.8 1 2 Information Technology 21.7 3 Industrials 15.1 4 Health Care 14.4 5 5 Financials 14.0 6 Communication Services 10.2 7 Real Estate 1.6 8 Cash 1.3 2 4

Regional Weights (%) 5 1 North America 56.6 4 2 Developed Asia Pacific 13.5 3 Emerging Markets 12.9 4 Europe (ex UK) 11.6 5 UK 4.2 3 6 Cash 1.3

Figures may not sum due to rounding.

List of Holdings 16

List of Holdings Asset Name Fund % Asset Name Fund % Shopify 5.5 Misumi 1.1 Tesla Inc 3.0 DENSO 1.1 Amazon.com 2.9 Sumitomo Mitsui Trust 1.0 Upwork 2.7 Mastercard 1.0 Chegg 2.7 10x Genomics 1.0 MarketAxess 2.6 MercadoLibre 1.0 TSMC 2.6 HDFC Life Insurance 1.0 STAAR Surgical 2.4 Nintendo 1.0 Netflix 2.2 NIBE 1.0 NVIDIA 2.2 Bridgestone 0.9 Wayfair 2.1 Fastenal 0.9 First Republic Bank 2.0 Dassault Systemes 0.8 Illumina 2.0 Hong Kong Exchanges & Clearing 0.8 Denali Therapeutics 1.9 Beijer, G & L AB 0.8 FANUC 1.9 Waters 0.8 Samsung SDI 1.8 Affirm 0.8 Zoom Video Communications 1.8 LendingTree 0.7 Twilio 1.8 Adevinta 0.7 Alibaba 1.7 Just Group 0.7 Workday 1.7 Codexis 0.7 The Trade Desk 1.7 iRobot 0.6 AIA 1.7 Hargreaves Lansdown 0.6 IMCD 1.7 Cosmo Pharmaceuticals 0.5 Redfin 1.6 Ocado 0.5 Tencent 1.6 Glaukos Corporation 0.4 SoftBank Group 1.6 Lyft 0.4 Alphabet 1.5 Baidu.com 0.4 JD.com 1.4 Markel 0.3 Kubota 1.4 TSMC 0.2

Meituan 1.4 Cash 1.3

Prudential 1.4 Total 100.0 Zalando 1.3 Total may not sum due to rounding. Spotify 1.2 Based on a representative portfolio, new client portfolios may not Sartorius Stedim Biotech 1.2 mirror the representative portfolio exactly. adidas 1.2 Pacira BioSciences 1.2 Atlas Copco 1.1 St. James's Place 1.1 DMG Mori 1.1 Abiomed 1.1 Exact Sciences 1.1 Watsco 1.1

Governance Summary 17

Voting Activity Votes Cast in Favour Votes Cast Against Votes Abstained/Withheld Companies 59 Companies 7 Companies 3 Resolutions 672 Resolutions 20 Resolutions 6

The third of our Positive Inclusion Factors, our three-question research framework, asks: does the company exhibit a culture of responsible business? Our engagements often explore the long term and deeper drivers of a successful and sustainable culture Recent such interactions have included Chegg, Twilio and Upwork

Engagement: conversations with companies Our interactions with Chegg are a good example of this. Chegg is a US-based innovative online platform This section of the quarterly report summarises recent offering both student study support and, increasingly, progress in one of the most interesting and rewarding access to structured programmes for career-based parts of our work. Seeking to be long-term owners of learning. We have had numerous discussions with the sustainable growth businesses, we are always looking to company about its culture, and the issues it faces as a explore alignment across the multitude of ESG factors rapidly evolving and internationalising educational inherent within our Positive Inclusion Factors (PIFs). platform. Recent conversations have, however, focused These three questions guide our investment thinking: more on ESG disclosure and specific actions the company could take to improve its ESG ratings with Positive inclusion factors external agencies. Another example is recent engagement with  Will the company add value for society in the Hargreaves Lansdown, the UK financial services long run? platform. During the quarter we had an annual catch up  Does it balance the needs of all stakeholders? call with the board chair and the chair of the remuneration  Does the company exhibit a culture of committee to discuss ESG practices at the company and responsible business? prospective inclusion of related targets in remuneration policies. While still at a consultative stage, we welcomed this in principle. The company was keen to hear our views There must be considerable enthusiasm for the on the targets for some of those ESG measures given our answers to our PIFs for any company to make it into the acknowledged strong interest in this area. Global Stewardship portfolio. However, few, if any, will Many of our engagements are about listening and be perfect on all counts. This is where engagement comes trying to understand. Take Twilio, the US cloud in, as we seek to contribute our perspective and communications platform. Along with other colleagues experiences in our interactions with company from Baillie Gifford, we met the management team to management. Some of our engagements will be specific learn more about how they view their culture and address and directed (about governance, disclosure, or particular issues related to platform integrity which will continue to behaviours), but most will be part of an ongoing be a key area of focus for our engagement. Similarly, we conversation as we extend our understanding of a met with Upwork, a global freelancing platform, to company’s prospects and culture. discuss how it treats its users and differentiates the It has become something of a cliché in the financial support it offers them. services industry to talk about ESG (environmental, Finally, it would be remiss not to provide an update social and governance) factors. While we welcome the on our climate conversations. We have been selectively growing interest and its influence on companies in a engaging with portfolio holdings to specifically broad sense, we do wonder if this enthusiasm from some encourage improvement in their emissions disclosures. in our industry is driven by ulterior motives. This However, this does not preclude much deeper conviction is partly driven by engagements during the conversations with some companies. During the quarter quarter where we probed a number of companies about we met with the largest portfolio holding, Shopify, the their culture and how they are thinking about integrating ecommerce platform. We spoke with Stacy Kauk, ESG into their practices. In many cases we were director of the company’s Sustainability Fund, to learn attempting to understand the long-term and deeper more about how Shopify could have a positive influence drivers of what makes a successful culture, whereas we across the ecommerce value chain from a climate sensed that there is a clamour from elsewhere for ‘quick perspective and lead direct action on decarbonisation. wins’ and ‘box ticking’. Our approach is to try to develop positive constructive long-term relationships with the management of portfolio holdings, as this is a much better foundation on which to have more challenging discussions when specific issues arise.

Governance Summary 19

Engaging for understanding

The following are examples of our engagement activities during the quarter which have enhanced our understanding of the investment and sustainability case for the holding in question. The table highlights interactions over the past quarter while some issues noted in past reports remain on our targeted and ongoing engagement list. Company Issue Update Alibaba Group Sustainability & Baillie Gifford (BG) colleagues had a call with IR to discuss and better understand some of the ESG Reporting 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 later this year. Finally, the call gave us comfort that, despite a recent intensification of regulatory scrutiny, digitalisation of the economy remains a priority for the Chinese government. Alphabet Human Rights Alphabet is the provider of four of the world’s most widely used web innovations (Google Search, Privacy Chrome, Android and YouTube). Its products significantly improve access to information and have Ethics in AI much potential in the transition to a more resource-efficient future. That said, the company’s scale and innovation bring challenges to existing regulations and potential harms to our everyday lives. In conjunction with colleagues from across BG, we are seeking further engagement with the company on its assessment of the impact on human rights of its products and the potential role of additional independent oversight. While a greater level of shareholder outreach demonstrates good faith, and the company has plenty of published good practice to highlight, we would prefer a less-managed, more open dialogue on these complex areas. We will continue to monitor Alphabet specifically on racial bias in algorithms, and wider regulatory grounds. Amazon Human Rights Amazon has transformed access to commerce for both buyers and sellers and is driving the Whistleblowing revolution in cloud computing. The benefits of these innovations have been strongly apparent Climate through the coronavirus crisis, and we have been impressed by the company’s efforts to support its workers and the wider economy. Amazon’s growth does, however, come with negative effects. As a firm, we have engaged with the company in recent years on employee pay and conditions, and on the integrity of its product review processes. Our current priorities are to gain a better understanding of (i) the internal approach to assessing the impact on human rights of its growing range of smart-home and facial recognition technologies; (ii) the culture and integrity with respect to employee communications and whistle-blowing procedures; and (iii) optimising the materiality of its potential climate influence. Given the systemic nature of its influence on the worlds of commerce and cloud computing, Amazon can do much to accelerate the energy transition – and we will continue to engage on the pace and reporting of this. Atlas Copco Culture Atlas Copco is an international industrial group. Colleagues from BG led a call with the retiring chief financial officer (CFO), in which the company’s culture was explored. The CFO emphasised the critical requirement of working with ‘high-quality’ customers. Atlas actively seeks out demanding clients and works with them to ultimately understand what drives profitable growth for that customer. This approach is embedded across the company. Netflix Board Netflix has developed into one of the world’s leading investors in cultural content. Its support for Protections the subscription over ad-funded model reinforces its positive alignment with users and makes it an Tax important holding in Global Stewardship. We have been supportive of the protections the board Diversity allows itself as Netflix innovates and grows, but our discussions around the actual functioning of the board and the degree of challenge and oversight have been an important part of that support. We have been exploring proactive actions around diversity and inclusion (with Netflix giving good practical examples – particularly around recruitment and appraisals) and group tax policy. The latter has been of relatively academic importance to date, but with the group now turning cash positive and earnings on the rise, we look for awareness and responsibility in this regard. Nintendo Board We had a call with the investor relations team of Nintendo to discuss their forthcoming annual composition general meeting, in particular the election of a new director, Chris Meledandri. Mr Meledandri is the Culture CEO of Illumination Entertainment and will be the first non-Japanese member of Nintendo’s board. During the call we also discussed broader topics around Nintendo’s unique culture. Nintendo is keenly aware of the importance of its creative talent, but also that it does not want to cultivate a ‘star developer’ atmosphere. It gives its developers as much freedom as possible to experiment and ensure that everyone has a certain amount of ‘idle time’, which is quite unusual in Japan. It is particularly conscious of the need to insulate its developers from external scrutiny, so that they continue to take risks in their creative process. This is getting harder with the rise of social media and, unlike when Nintendo first started making games, increasingly customers expect to have direct access to developers.

Governance Summary 20

Company Issue Update Shopify Climate Shopify Inc. provides a cloud-based commerce platform. During the quarter we spoke with Stacy Influence Kauk, director of the company’s Sustainability Fund, to learn more about how Shopify could have a Merchant Tools positive influence across the ecommerce value chain from a climate perspective. Shopify already reports its direct emissions and runs its direct and platform operations on carbon-neutral power. Just as importantly, Shopify 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 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 Data Privacy Along with colleagues, we met with founder and Chief Executive Officer Jeff Green to delve into the Desk data privacy challenges and opportunities facing The Trade Desk's advertising business. As 'walled gardens' (eg 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. Twilio Culture Twilio is an American cloud communications platform. We and other colleagues from BG met the Platform chief executive officer (CEO) and chief financial officer (CFO). ‘Twilions’ (Twilio staff) need to feel Integrity that their work has a purpose and is making the world a better place. This has led to the management team having to make value judgements, as Twilio does not want its platform to be used to disseminate hate. It is notable and encouraging that Twilio is willing to try to tackle these types of issues head on. In addition to culture, platform integrity will continue to be a key area of focus for our engagement with Twilio. Upwork Freelancer We met the chief business affairs & legal officer and the chief people officer to discuss an area Support which we think is of critical importance: how Upwork treats the freelancers on its platform. We sought to understand whether, as the company scales, it can provide differentiated support and benefits. The company was receptive to our questions and we will learn more once Upwork publishes its impact report, in which it specifically aims to explain how its approach differs significantly from ‘gig economy’ norms. Wayfair Supply-chain We met with the chief executive officer and chief financial officer of Wayfair to discuss business Sustainability development, but also for an update on progress with the company's thinking and strategy around environmental sustainability. Connecting thousands of furniture and homeware suppliers to customers in Europe and the Americas, Wayfair has the opportunity to share best practice, develop information for consumers and influence the logistics providers. We discussed the company's findings on the level of inherent interest in these topics across the value chain. European customers and global logistics are most advanced, with Wayfair seeing more work to be done to educate buyers in the Americas and convince sellers that progress can be made without a long-term burden on margins. This is an evolving area of focus, and we will keep in touch with the company as efforts progress.

Governance Summary 21

Engaging for action

At the following companies our engagement is targeted to effect a specific change and/or response. Company Issue Update Bridgestone Sustainability & We met with members of the sustainability and technical development teams to discuss the latest Tyre Lifecycle progress in Bridgestone’s ambition to improve the circularity of the tyre lifecycle. With significant carbon and chemicals embedded in the product during manufacture, and often then released in the current disposal processes, there is much to be gained from tyre manufacturers taking lifetime ownership, adjusting content and construction and maximising the recombination of old-to-new. Although plausible, the technical challenges of maintaining safety, performance and wear are significant. It was very insightful to hear about Bridgestone’s approach, and the linkage of these technical efforts to the simultaneous development of a new business model: the provision of tyres- as-a-service rather than the traditional sell-and-forget. This essential industry is changing, and we will continue to follow Bridgestone’s progress. Chegg Culture Chegg is a US-based innovative online platform offering both student study support and, ESG ratings increasingly, access to structured programmes for career-based learning. It provides services with the potential for misuse, for example if individuals used the platform to cheat on exams or coursework. The company’s culture will be vital to its efforts to manage such situations, thereby allowing Chegg to make a potentially valuable contribution to education provision. We followed up a recent meeting with Chegg by providing further feedback on various ESG areas, including educational impact, disclosures, and external attitudes towards the business. To provide a specific example, we undertook a detailed exploration of the elements driving the company’s (sub-par) third-party ESG ratings and provided recommendations for actions that could be taken to enhance these, thereby enhancing the firm’s reputation and access to capital. Chegg was receptive to our feedback and is working on additional content for its ESG website which will address many of the points that we raised. Hargreaves ESG Practices Hargreaves Lansdown is a UK financial services platform. During the quarter we had an annual Lansdown & Disclosures catch up call with the chair, Deanna Oppenheimer, with whom we have built a good rapport following previous constructive engagements. Following additional research, we undertook when updating our Responsible Investment Analysis note (a part of the Global Stewardship investment process), we were able to suggest and encourage improvements in the company’s ESG practices and disclosures. We were pleased to hear that our challenge was welcomed, and that this topic has been a particular focus for the board over the past year. The results of this will be evidenced in the company’s upcoming annual report. Our discussion also covered the appointment of three new non-executives and a number of senior management changes. We also had a call in the quarter with the chair of the remuneration committee at Hargreaves to discuss draft changes to remuneration policies, including the proposed incorporation of ESG performance conditions into the annual bonus assessment. While still at a consultative stage, we welcomed this in principle. The company was keen to hear our views on the targets for some of those ESG measures given our acknowledged strong interest in this area. HDFC Life Climate-related HDFC Life is a provider of life insurance and wider savings and investment products to the Indian strategy and market. It is a joint venture between HDFC (52 per cent ownership) and Standard Life Aberdeen (20 awareness per cent) that added a public equity listing in 2017. We have begun a discussion with management regarding their assessment and governance of climate-related risks and opportunities. Like many in its sector and region, current disclosures are minimal and do not reflect the potential gravity of the issue for the company and its shareholders. Climate-related issues for HDFC Life include the impact of accelerating physical change on India and its population as well as the transition risks inherent in the company’s investment operations. We are very supportive of the management of HDFC Life, and of the contribution the company is making to improving financial security in India. Indications are that management engagement on climate issues has increased. We expect greater public disclosure in the coming months and are monitoring improvement in this regard. SoftBank Governance SoftBank is a material allocator of capital to companies at the forefront of technological innovation ESG investment and change. We spoke to SoftBank to discuss the composition of the board, and also the inclusion integration of ESG factors in the company’s investment process. On board composition, the company explained the reasons for a recent governance change, and the appointment of Keiko Erikawa, a 72-year-old Japanese gaming entrepreneur. SoftBank has started to integrate ESG into the decision-making process for its Vision fund, although this remains an area for further development. The company believes it can do a much better job of explaining its approach in this area, for example being more proactive in providing information to ESG ratings agencies. The challenge for SoftBank is the tension between bringing more rigour and process to its activities while maintaining the dynamism that is fundamental to the company’s continued success.

Governance Summary 22

Company Issue Update Tesla Governance Tesla is a pioneer in electric vehicles, batteries, and renewable energy technology. With BG Human colleagues recent dialogue with the company has sought to further explore the supply chain and Resources treatment of employees and feedback on Tesla’s reporting of its CSR impacts. While reporting on Impact issues such as environmental footprint, the upstream supply chain and employee safety have Reporting improved significantly over the last 24 months, there are areas where Tesla can be more explicit and demonstrate greater community leadership. Its major impact is its ground-breaking products, but disclosures form an important part of the energy transition – underpinning capital allocation and helping to dismiss some of the counter-lobbying undertaken by incumbents in the fossil fuel sector. We are pleased to see Tesla’s proactivity here and hope to support the company through this aspect of its development.

Voting 23

Votes Cast in Favour Company Meeting Details Resolution(s) Voting Rationale Alphabet Inc Class A Annual 4 We supported a shareholder proposal requesting 02/06/21 the end of the dual class share structure as we believe the company will benefit from a more open control structure. Alphabet Inc Class A Annual 8 We supported a shareholder proposal requesting 02/06/21 the company report on its whistleblower policies as we believe the company can make improvements in this area. Amazon.com Annual 13 We supported a shareholder proposal to improve 26/05/21 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 14 We supported a shareholder resolution requesting 26/05/21 a report on customer use of certain technologies as we think additional disclosure would help us better understand the utility of this equipment and encourage greater oversight of the potential ethical implications. Amazon.com Annual 4 We supported a shareholder resolution requesting 26/05/21 a report on customer due diligence as we think additional disclosure would be helpful. Amazon.com Annual 6 We supported a shareholder proposal for Amazon 26/05/21 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. Netflix Inc Annual 4 We supported a shareholder resolution for a report 03/06/21 on political contributions as we believe enhanced disclosure on the company's policies and procedures is in shareholders' best interests. Redfin Annual 4 We supported a shareholder proposal relating to 09/06/21 the introduction of a simple majority voting standard for director elections. Companies Voting Rationale AIA Group, Adevinta, Alphabet Inc Class A, Amazon.com, We voted in favour of routine proposals at the aforementioned Atlas Copco B, Beijer Ref, Chegg, Codexis, Cosmo meeting(s). Pharmaceuticals, Dassault Systemes, Denali Therapeutics, Denso, Exact Sciences, FANUC, Fastenal, First Republic Bank, Glaukos Corp, Hong Kong Exchanges & Clearing, IMCD Group NV, Illumina, Interactive Brokers Group, JD.com, Just Group, LendingTree, Lyft Inc, Markel, MarketAxess Holdings, Mastercard, Meituan, MercadoLibre, Misumi, NVIDIA, Netflix Inc, Nibe Industrier AB 'B' Shares, Nintendo, Ocado, Pacira BioSciences, Prudential, Redfin, Shopify 'A', SoftBank Group, Spotify Technology SA, St. James's Place, Staar Surgical, Sumitomo Mitsui Trust, TSMC, Tencent, The Trade Desk, Twilio Inc, Upwork Inc, Waters, Watsco Inc, Wayfair Inc, Workday Inc, Yext Inc, Zalando SE, Zoom, adidas, iRobot

Voting 24

Votes Cast Against Company Meeting Details Resolution(s) Voting Rationale Alphabet Inc Class A Annual 10 We opposed a shareholder resolution requesting a 02/06/21 report on how the company oversees risks related to anticompetitive practices as we do not believe the resolution will add value to existing disclosures and processes in this area. Alphabet Inc Class A Annual 11 We opposed a shareholder resolution requesting to 02/06/21 amend the company's bylaws to become a public benefit corporation as we believe it is unclear what the benefit of this change would be. Alphabet Inc Class A Annual 5 We opposed a shareholder resolution requiring the 02/06/21 company to appoint a director nominee with human and/or civil rights experience as we believe the board are best placed to determine appropriate director candidates. Alphabet Inc Class A Annual 6 We opposed a shareholder resolution requiring the 02/06/21 company to assess the feasibility of including sustainability as a performance measure as we do not this this is necessary at this time. Alphabet Inc Class A Annual 7 We opposed a shareholder resolution requiring the 02/06/21 company to report on the feasibility of publicly disclosing the list of censorship changes it has implemented as we believe the current disclosure to be sufficient. Alphabet Inc Class A Annual 9 We opposed a shareholder resolution requesting a 02/06/21 report on charitable donations as we believe the current disclosure to be sufficient. Amazon.com Annual 10 We opposed a shareholder resolution requesting 26/05/21 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 11 We opposed a shareholder resolution requesting a 26/05/21 report on competition strategy and risk as we are unclear as to what addition additional disclosures the company could provide. Amazon.com Annual 12 We opposed a shareholder resolution requesting a 26/05/21 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 26/05/21 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. Amazon.com Annual 7 We opposed a shareholder resolution requesting a 26/05/21 report on promotion data as we do not believe it is necessary. Amazon.com Annual 8 We opposed a shareholder resolution requesting a 26/05/21 report on packaging materials as we think the company is performing well in this area and don't think additional disclosure is required. Cosmo Pharmaceuticals AGM 5 We opposed the authority to grant options to the 28/05/21 board as non-executive directors are eligible to participate.

Voting 25

Company Meeting Details Resolution(s) Voting Rationale Cosmo Pharmaceuticals AGM 8 We opposed the resolution which sought authority 28/05/21 to issue equity without pre-emptive rights because the potential dilution levels are not in the interests of shareholders. Lyft Inc Annual 4 We opposed a shareholder resolution requesting 17/06/21 further disclosure on lobbying expenditures as we seek to better understand the company's position and encourage improvements through engagement. Netflix Inc Annual 5 We opposed a shareholder resolution to eliminate 03/06/21 supermajority voting as we are satisfied the company's current governance provisions are appropriate. Netflix Inc Annual 6 We opposed a shareholder resolution to make 03/06/21 changes to the executive compensation program as we are unconvinced that the adoption of this proposal would benefit shareholders. Pacira BioSciences Annual 3 We opposed compensation due to concerns about 08/06/21 the lack of long-term performance measures. Companies Voting Rationale Waters We opposed the executive compensation policy as we do not believe the performance conditions are sufficiently stretching. Cosmo Pharmaceuticals We opposed the resolution which sought authority to issue equity because the potential dilution levels are not in the interests of shareholders.

Votes Abstained Company Meeting Details Resolution(s) Voting Rationale Amazon.com Annual 9 We abstained on a shareholder resolution 26/05/21 requesting a diversity and equity audit. We think the company is doing good work in this area and would like to encourage progress via engagement. Beijer Ref AGM 11.G We abstained on the election of a director who is 15/04/21 non-independent due to tenure because of low board independence. Beijer Ref AGM 17.A-17.C We abstained on three resolutions relating to the 15/04/21 Executive Share Option Plan due to lack of performance metrics. Companies Voting Rationale Misumi We abstained on the low dividend payment as we believe the company's capital strategy is not in the interests of shareholders.

Votes Withheld

We did not withhold on any resolutions during the period.

Transaction Notes 26

New Purchases Stock Name Transaction Rationale 10X Genomics Inc Class A 10x Genomics develops instruments and consumables for the analysis of single cells. When combined with next-generation sequencing, 10x Genomics' tools enable researchers to measure and interpret differences between individual cells in a sample. Compared to traditional bulk sequencing, single cell analysis provides a more granular view of biology and advances our understanding of health and disease. We believe the company has the potential to have an incredible societal impact as researchers incorporate single cell analysis into their work to help them make breakthroughs in fields such as immunology, oncology, neurology and developmental biology. Longer term, single cell analysis could also be used in the pharmaceutical and clinical markets. We believe that 10x Genomics is well-positioned to take advantage of this growth opportunity due to its technological edge and very fast pace of innovation. We are impressed by the management team who are clearly driven by a mission to improve human health and place strong emphasis on both the culture of the firm and the needs of its customers. We are excited by the long-term prospects for 10x Genomics and have decided to take a holding. Codexis Codexis is a protein engineering company that creates custom enzymes. These help make industrial processes more sustainable, requiring lower temperatures and less water for example, which provides a clear benefit to society. Its products are also used in biotherapeutics, where the company's proprietary CodeEvolver platform helps its major partners in the pharmaceutical industry design and manufacture novel treatments for 'unmet needs' - illnesses which are otherwise difficult to treat. A decade ago, Codexis was concentrated on biofuels, but this proved to be an unsuccessful venture and the company was forced to retrench. Codexis has subsequently improved its capital position and refocused on the opportunity in medicine development, and we are excited by its future potential.

Complete Sales Stock Name Transaction Rationale Interactive Brokers Group Interactive Brokers is an online discount stockbroker which provides a platform for active traders and institutional investors. Our investment case was based on the company's compelling combination of low cost and technology leadership, but our conviction in both factors has weakened due to, for example, rising competition from 'commission-free' rivals such as Robinhood. In addition, although we have historically viewed the founder's controlling stake in the firm to be a net positive, this has meant that minority shareholders struggle to have a voice in the company's development. A combination of these issues led to our decision to sell. Yext Inc Yext helps businesses synchronise information across a range of online services. We purchased the shares for Global Stewardship in 2019 because we were intrigued by the company's opportunity to use its technology to better manage a host of data on behalf of global brands, such as store opening hours or promotions which a consumer could see or hear through websites or voice assistants. However, growth in this area has been stalled for some time now, leaving us reliant on the success of the company's other initiatives. Further analysis, combined with engagement with the Yext management team, have led us to question whether these newer business lines are sufficiently differentiated to be successful. Combined with significant employee turnover at the company, this has led us to doubt the investment case and we have sold.

Legal Notices 27

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