The Board considers at each meeting various portfolio metrics including individual stock performance and weightings, the top and bottom contributors to performance and relative sector weightings against the comparative index. The portfolio managers provide rationale for stock selection decisions and portfolio positioning.

The Board undertook a comprehensive review of the Company's investment strategy in November 2024, following which a number of changes were implemented, including the appointment of a new lead portfolio manager and deputy portfolio manager and refinements to portfolio construction. The Board continues to monitor the effectiveness of these changes closely.

The Board has also taken steps to address shareholder concerns and performance-related outcomes, including the introduction of a tender offer in 2026, a continuation vote in 2028 and a performance-triggered tender offer in 2030.

The Board considers the impact of currency movements, particularly in relation to yen/sterling exchange rates, and the interaction between portfolio assets and yen-denominated borrowings.

Private company investment risk is mitigated through limits on exposure, frequent independent valuation processes and detailed Board review. The Company's investment policy limits exposure to private companies to 10% of total assets at the time of investment.

To manage this risk, the Board monitors the level of discount/premium at which the shares trade, movements in the share register and investor sentiment towards the Company and the wider investment trust sector.

The Board has authority to buy back shares where considered to be in the best interests of shareholders. Over the year to 31 January 2026, the Company bought back approximately 34.2 million shares (2025 - 30.3 million), which are held in treasury.

The Board has also implemented measures to provide shareholder liquidity and address discount-related concerns, including the 15% tender offer completed in March 2026. The Board continues to engage actively with shareholders and to consider appropriate measures to address any sustained discount.

Baillie Gifford's Business Risk, Internal Audit and Compliance departments provide regular reports to the Audit Committee on monitoring programmes and regulatory compliance.

Shareholder documents and announcements, including the Annual and Interim Reports, are subject to robust internal review processes to ensure compliance with relevant regulations. Procedures are also in place to ensure adherence to the Market Abuse Regulation and Disclosure Guidance and Transparency Rules.

Where appropriate, representations are made in respect of regulatory developments to ensure that the interests of investment trusts are recognised.

The Board has delegated the design, implementation and operation of internal controls to the Managers and Secretaries but retains overall responsibility for oversight.

Baillie Gifford & Co conducts an annual review of its system of internal controls, documented in an ISAE 3402 report which is independently reviewed by its auditor. This report is reviewed by Baillie Gifford's Business Risk Department, with a summary of key findings reported to the Audit Committee. The Audit Committee also has access to the full report and the opportunity to review and challenge its contents.

The custodian, depositary and registrar provide regular reports on their control environments, including the safekeeping of assets and maintenance of shareholder records, and independently audited internal controls reports. These are reviewed by Baillie Gifford's Business Risk Department and reported to the Audit Committee, with any issues investigated.

The Company's assets are subject to independent reconciliation and verification procedures, including confirmation of holdings with the custodian and investee companies, and are also subject to annual external audit.

The Board considers the resilience and performance of all key service providers on an ongoing basis and believes that alternative providers could be engaged if required.

The Audit Committee receives regular reporting from Baillie Gifford's Business Risk Department on the effectiveness of information security controls and the broader cyber security framework.

Cyber security due diligence is performed on key third party service providers, including assessment of their information security controls, crisis management procedures and business continuity arrangements.

Baillie Gifford maintains comprehensive business continuity and disaster recovery plans which are designed to ensure the continued operation of systems and processes in the event of a disruption or cyber incident.

All borrowings require prior approval of the Board and gearing levels are discussed at each Board meeting. Compliance with loan covenants is monitored regularly.

Details of the Company's borrowing facilities are set out in note 11 to the Financial Statements. The Company's revolving credit facility with Bank of America matures in November 2027 and provides flexibility in managing gearing levels.

The majority of the Company's investments are in quoted securities which are readily realisable and could be sold to repay borrowings if required.

Gearing levels reduced during the year from 16% to 15%, reflecting a reduction in borrowings and active management of the balance sheet.

Further information on leverage is provided on page 120 and in the Glossary of terms and Alternative Performance Measures on pages 125 to 128 of the Annual Report and Financial Statements.