Ideas for your ISA: Week 2

Listen to our speakers outlining the case for digital infrastructure, UK growth, emerging markets, energy efficiency and more…

In the second week of our ISA event, we heard from the managers of Cordiant Digital Intrastructure (CORD), Baillie Gifford UK Growth (BGUK), Ashoka WhiteOak Emerging Markets (AWEM), Vietnam Enterprise Investments (VEIL) and SDCL Energy Efficiency Income (SEIT).

You can sign up for the remaining sessions here.

Highlights

Steven Marshall of Cordiant Digital Infrastructure (CORD) talked through the trust’s portfolio of assets that he described as the plumbing of our interconnected digital world. He highlighted the robustness of their portfolio, including owning market leading assets in their core markets of Poland and Czechia (Czech Rep.) as well as having top-tier assets in the Irish fibre market amongst others. Whilst the portfolio may be concentrated at a glance, by asset, it is considerably diversified with a rich asset mix of over 1,400 telecoms towers, 76 broadcast towers, over 20 data centres and more than 10k km of fibre-optic network. This is funded by a high-quality customer base, many of which are on long-term, inflation linked contracts. As such, the portfolio has scope to continue to develop its existing portfolio with value accretive acquisitions, as well as paying out a well-funded dividend as part of a total return offering.

Highlights

Iain discussed the opportunities in BGUK’s highly distinctive portfolio of exciting growth companies. Whilst acknowledging that the UK growth picture has been challenged of late, it has led to valuations being very compelling, pointing to the market being at a near record 36% discount to global equities. Despite the malaise, Iain highlighted the high number of world-class companies based in the UK, such as Games Workshop which has a resilient, cult-like following for their fantasy franchise products and Autotrader which dominates the second-hand car market. Outside of this, Iain noted his portfolio owns very few of the names typically seen in other UK equities portfolio, aided by their multi-cap approach and making for a bespoke portfolio of the UK best growth companies.

Highlights

Loong and the WhiteOak team see greater valuation opportunities in small- and mid-cap stocks, where markets are less efficient than large-caps. Their approach prioritises governance and democracy assessments, focussing on genuinely alpha-rich markets like India. Whilst Indian valuations appear stretched versus other emerging markets, opportunities remain. The team leverages its deep expertise and on-the-ground resources to uncover promising smaller companies, including IPOs with strong alpha potential trading at attractive valuations. They remain cautious on direct China exposure, preferring off-benchmark stocks outside Asia with indirect links to China’s growth. Loong also noted China’s poor democratic score and market unpredictability—citing how even the best IT analyst can’t guard against sudden policy shifts stemming, if Jack Ma upsets Xi Jinping, for instance. Whilst tariffs remain unpredictable, Loong notes that companies in China and Korea are better prepared than during Trump’s first term. He sees a sense of calm resignation, with Korean firms adopting more flexible manufacturing across emerging markets and the US.

Highlights

First, portfolio specialist Thuy Anh Nguyen discussed the strong fundamentals behind the Vietnamese economy, and showed us some striking comparisons with the UK. A growing middle class, infrastructure spend and international trade were all discussed as structural drivers. We then heard from co- portfolio manager Thao Ngo Thanh on how those themes were expressed in the portfolio and some of the team’s high conviction stocks. A particularly interesting slide covered the full IPO pipeline in Vietnam, which VEIL should be able to benefit from.

Highlights

SEIT managers Tamsin Jordan and Ben Griffiths provided an overview of this unique trust, which owns businesses and assets in the US, UK and Europe involved in providing commercial and public sector customers with a range of solutions to improve energy efficiency, ranging from the US steel industry to olive growers in Spain. The team delved into some of the financial aspects of how they receive income and brought to life some of the key assets in the portfolio.

_Disclaimer

_{This is a non-independent marketing communication commissioned by Baillie Gifford, Cordiant Capital, Dragon Capital, Sustainable Development Capital, White Oak Capital Management. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.}