Capital at risk
Emerging Markets ex China
Emerging markets companies often have substantial opportunities and decades of growth ahead. We believe being selective is key to achieving great results: the index is not the best reflection of future growth. Our Emerging Markets ex China Strategy is a portfolio of 40-80 companies.
Emerging Markets growth outside of China
An open-minded, patient approach in the least patient markets; helping our clients benefit from powerful growth tailwinds in developing countries by having a clear idea of the market inefficiencies we are trying to exploit.
A patient portfolio
EM ex China is a relatively new asset class for most, but our specific experience dates back to 2005.
Our key goal is to build strong relationships with like-minded clients. We know we can only do this if we deliver strong investment performance, net of costs, over the long term.
The number of genuinely world-class companies in emerging markets is growing, and we feel very fortunate to be tasked with seeking these out. We must invest with patience and give decisions time to prove themselves.
Exploiting inefficiencies
We appreciate what is underappreciated. And we believe there are three persistent inefficiencies that we are well-placed to exploit for our clients:
- Growth duration: many companies grow for much longer than expected
- Growth pace: many companies grow much faster than expected
- Growth surprise: many companies grow when it’s least expected
Much of our process relies on the interplay of data, experience, educated creativity and probability. This does not necessarily lend itself to a matrix or a flowchart.
The quality of companies in the opportunity set is increasing, growth is on offer, yet due to external factors and risk perceptions we can invest in many of these at what look like very low prices.
Meet the managers
Documents
Quarterly update
Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting.
Philosophy and process
Explore our investment philosophy and the processes around how the Emerging Markets team construct the portfolio.
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Strategy portfolio holdings
A list of the top 10 holdings that the representative portfolio invests in.
All figures up to: 31 October 2025
| # | Holding | % of total assets |
|---|---|---|
| 1 | TSMC | 18.04 |
| 2 | Samsung Electronics | 8.47 |
| 3 | SK Hynix | 5.43 |
| 4 | Naspers | 4.00 |
| 5 | MediaTek | 3.15 |
| 6 | Reliance Industries | 3.12 |
| 7 | MercadoLibre | 3.10 |
| 8 | Accton Technology | 2.60 |
| 9 | Sea Limited | 2.55 |
| 10 | First Quantum Minerals | 2.22 |
Please note
The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.
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Insights
Key articles, videos and podcasts relating to the strategy:
Filters
Insights
Korea’s Value-Up ambition
Why South Korea’s stock market has transformed from ugly duckling to world-leading.
TSMC: Stock Story
Qian Zhang unwraps TSMC, the company powering modern life.
Emerging markets, from imitators to innovators
From driverless taxis to digital banking, emerging markets are leading a new wave of innovation that’s reshaping industries worldwide.
Emerging Markets: are you missing the point?
Why underweighting EM is an active risk, not a cautious stance.
Engines of the future
Why emerging markets drive global growth.
Vietnam: in step with structural growth
Vietnam’s reform-driven economy and rising domestic consumption offer rare long-term potential.
Emerging markets: the next engines of global growth
From lithium mining to a do-it-all super-app, companies capitalising on transformational trends.
India: selective exposure to a key market
Why the Emerging Markets’ Team is reviewing its underweight position in Indian equities.
Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.
Emerging markets in 2050
Trade shifts and underserved populations are among the factors favouring world-class stocks.
Lithium: powering the future
Investing in the Chilean mining company charging the energy transition.
EM: how we do what we do
How do we implement our emerging markets philosophy in practice?
EM: Why we do what we do
Why do we invest in emerging markets in the way that we do?
Brazil: an uncomfortable dance?
How our Brazilian holdings are leading with strong growth amid fiscal complexity.
Emerging markets: new opportunities
The evolving landscape of emerging markets, fuelled by AI, energy transition and world-class companies driving growth.
The rise of the Global South
Unpacking the BRICS summit's outcomes, the Global South's rise and implications for EM investors.
Travelling Brazil: open for business
We share the trip notes from our time in Brazil, highlighting the energy sector, sustainability and fintech.
Our best ideas in Asia
Qian Zhang covers Samsung, Delhivery and Bank Rakyat, three companies at the heart of global structural trends.
Emerging markets democracy: better than you think
See what the recent elections in Mexico and India mean for emerging markets investors.
From earth to equity: the platinum opportunity
Platinum's role in health, tech and green energy.
30 years of emerging markets
Baillie Gifford’s Will Sutcliffe explains how emerging markets have evolved in the last three decades.
High-calibre emerging markets firms
Why it’s a promising time to invest in exceptional emerging markets companies
ESG analyst trip notes: India and China
Read more about the unique perspective on the evolving energy landscape and corporate governance in these emerging markets.
BRICS expansion and impact
Unveiling the BRICS expansion's global influence and its effect on trade and geopolitics
Copper's role in emerging markets
Assessing copper's supply challenges and investment potential in emerging markets for 2024.
India's triumph in a turbulent world
Uncover insights on emerging markets, India's economy, and Asia's rising export champions.
Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
South-east Asia's new export champions
Uncovering Asia's rising export stars in Vietnam, Indonesia and Thailand.
Emerging markets – why bother?
Emerging markets have underperformed developed ones recently. So, why should we invest in them?
Conversations with Shanghai
Discover the importance of High Bandwidth Memory in AI development and the key players in the market - SK Hynix and Samsung Electronics.
Beyond the numbers
An analysis of the relationship between GDP growth and stock market returns in emerging markets, with a focus on China.
Brazil's economic landscape
Challenging perceptions: Lula's re-election and Brazil's economic potential
Emerging Markets: the possibilist
Understanding the difference between pessimism and possibility in Emerging Markets.
Emerging Markets: coming of age
It’s time to stop looking in the rear-view mirror when it comes to emerging markets.
The shape of things to come
It’s essential to be realistic and keep the risk of over-optimism in check. But there’s plenty to feel positive about in emerging markets, says Tim Erskine-Murray, who offers an insight into the reasons for his unwavering enthusiasm.
Emerging markets in 2050
Monthly insights
Related insights
TSMC: Stock Story
Qian Zhang unwraps TSMC, the company powering modern life.Emerging markets, from imitators to innovators
From driverless taxis to digital banking, emerging markets are leading a new wave of innovation that’s reshaping industries worldwide.Emerging Markets: are you missing the point?
Why underweighting EM is an active risk, not a cautious stance.Emerging markets: the next engines of global growth
From lithium mining to a do-it-all super-app, companies capitalising on transformational trends.Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.Emerging markets in 2050
Trade shifts and underserved populations are among the factors favouring world-class stocks.EM: how we do what we do
How do we implement our emerging markets philosophy in practice?EM: Why we do what we do
Why do we invest in emerging markets in the way that we do?Our best ideas in Asia
Qian Zhang covers Samsung, Delhivery and Bank Rakyat, three companies at the heart of global structural trends.30 years of emerging markets
Baillie Gifford’s Will Sutcliffe explains how emerging markets have evolved in the last three decades.High-calibre emerging markets firms
Why it’s a promising time to invest in exceptional emerging markets companiesWhy growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.Emerging markets – why bother?
Emerging markets have underperformed developed ones recently. So, why should we invest in them?Emerging Markets: the possibilist
Understanding the difference between pessimism and possibility in Emerging Markets.Emerging Markets: coming of age
It’s time to stop looking in the rear-view mirror when it comes to emerging markets.The shape of things to come
It’s essential to be realistic and keep the risk of over-optimism in check. But there’s plenty to feel positive about in emerging markets, says Tim Erskine-Murray, who offers an insight into the reasons for his unwavering enthusiasm.
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
The content of this website is intended exclusively for professional investors in accordance with MiFID legislation. ’Professional investors’ are potential investors who are deemed to have the status of “professional clients”, within the meaning of MiFID (2004/39/EC), as transposed in Ireland. It is not intended for retail investors.
Baillie Gifford Investment Management (Europe) Limited is authorised and regulated by the Central Bank of Ireland (Reference number C182354) as an Alternative Investment Fund Manager and UCITS Manager to Baillie Gifford Worldwide Funds plc. Its registered office is 4/5 School House Lane East, Dublin 2, D02 N279, Ireland.
Scottish Mortgage Investment Trust PLC (the “Company”) is an alternative investment fund for the purpose of Directive 2011/61/EU (the “AIFM Directive”). Baillie Gifford & Co Limited is the alternative investment fund manager (“AIFM”) of the Company and has been authorised for marketing to Professional Investors in this jurisdiction. This website is made available by Baillie Gifford Investment Management (Europe) Limited (“BGE”), which has been engaged by the AIFM to carry out promotional activities relating to the Company. BGE is authorised by the Central Bank of Ireland as an AIFM under the AIFM Regulations and as a UCITS management company under the UCITS Regulation. BGE also has regulatory permissions to perform promotional, advisory and Individual Portfolio Management activities. BGE has passported its authorisations under the mechanisms set out in the AIFM Directive.
This website is informative only and the information provided should not be considered as investment or other advice or a recommendation to buy, sell or hold a particular investment. Read our Legal and regulatory information for further details.