Baillie Gifford employs a global equity strategy that makes long-term investments in well-managed businesses which are 
considered to have the potential for sustainable, competitive advantages and earnings growth at a faster rate than the market over 
the long term.

The Fund seeks to provide long-term capital appreciation by investing primarily in equity securities. 

Benefits of investing in the Vanguard Active Global Growth Fund

• Investment expertise - The Fund will allow you to tap into the investment expertise of Baillie Gifford's experienced research team with an average tenure of over two decades, utilising research from over 100 investment professionals.

• Designed to deliver long-term outperformance -

• The Fund is very different from the benchmark and invests in an actively managed portfolio of stocks from around the world. The Fund has the ambition of delivering higher total returns than the benchmark.

• Investors not speculators - The Fund seeks to have a low turnover portfolio of stocks and to use time and volatility to its advantage.

• Keep more of your return - Investors cannot control the markets, but they can control the costs of investing. Providing low cost investments is not a pricing strategy for us. It is how we do business. Vanguard's scale also helps to keep costs low.

The Vanguard Manager Select Series are a suite of actively managed funds which seek to deliver on what we consider the three most critical factors to active management:

1. Talent - Vanguard sources talented investment managers with a proven process and demonstrable ability. We focus on the right people, philosophy and process to produce long-term competitive results.
2. Patience - Long-term thinking is adopted in relation to the Funds, accepting there will be periods of underperformance. Rather than making decisions based solely on last year's performance, Vanguard's perspective is long term. We recognise active managers face bumps along the road to long-term outperformance. This disciplined approach is present at every step of our process.
3. Low Cost - Vanguard's enduring low-cost investment philosophy is at the centre of the strategy of the Manager Select Series.

Risk level

High

Investor suitability

Buy and hold investors seeking long-term capital growth, global diversification, and with a higher tolerance for the risks associated with share market volatility.

Buy and hold investors seeking long-term capital growth, global diversification, and with a higher tolerance for the risks associated with share market volatility 

About the Fund

Vanguard Active Global Growth Fund, managed by Baillie Gifford, seeks to provide long-term capital growth by investing primarily in equity securities of companies from around the globe that are considered to have above-average growth potential.

The fund invests in 70 -120 growth stocks in well-managed businesses which enjoy sustainable competitive advantages and grow their earnings at a faster rate than the market over the long term.

Based on the characteristics of each company, Baillie Gifford categorises stocks into one of four growth profiles: stalwart, rapid, cyclical and latent; in recognition that companies grow at different rates. This allows the portfolio to capture growth opportunities that other investors may overlook.

The portfolio is well-diversified, low turnover and differs greatly from the index.

About Baillie Gifford

Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co., a Scottish investment firm. Founded in 1908, Baillie Gifford & Co., one of the largest independently owned investment management firms in the United Kingdom, manages money primarily for institutional clients. As of March 31, 2019, Baillie Gifford & Co. managed approximately $355bn (AUD) in assets. The firm's investment approach is differentiated by being very long-term, optimistic, growth-orientated, and high-conviction. It utilises a wide range of inputs well beyond the typical financial and economic indicators to include important elements which are vital to long- term success such as corporate culture, governance and sustainability of the business model.

How we invest your money

The Vanguard Active Global Growth Fund seeks to provide long-term capital growth by investing primarily in equity securities of companies from around the globe that are considered to have above-average growth potential.

The Vanguard Active Global Growth Fund employs a global equity strategy that makes long-term investments in well-managed businesses which are considered to have the potential for sustainable, competitive advantages and earnings growth at a faster rate than the market over the long term. Stocks are picked based on proprietary fundamental analysis in accordance with a sustainable and repeatable process. The portfolio generally invests in 70 -120 stocks.

Baillie Gifford places all the stocks in the portfolio in one of four growth buckets' described below. This helps the Fund to ensure a reasonable degree of diversification across different types of growth within the portfolio.

1. Stalwart - Stocks that have the potential for profitability in most macroeconomic environments - examples of these include stocks that have a dominant local scale, repeat purchase characteristics, and a strong customer loyalty and brand
2. Rapid - Stocks that have the prospect of more rapid growth - examples include stocks of companies innovating to attack existing profit pools or create new markets
3. Cyclical - Subject to macroeconomic and capital cycles, stocks with significant structural growth prospects - examples include companies with strong management who are highly skilled at capital allocation
4. Latent - Stocks that may be out of favour with the potential of a company specific catalyst to drive above average earnings in the future.

The Fund applies several constraints such as security, regions and industries to ensure diversification.

The Fund is generally unhedged and will be exposed to the fluctuating values of foreign currencies; these fluctuations may increase or decrease the value of the Fund. Currency considerations are part of the overall, fundamental bottom-up research process. The Fund factors potential currency movements into the assessment of the potential range of outcomes for any investment.