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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You can invest in this strategy through the following fund(s).
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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.
Invest in this strategy
You can invest in this strategy through the following fund(s).
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Curious to learn more about our products and what we can offer you? Please get in touch.
Insights
Key articles, videos and podcasts relating to the strategy:
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Insights
Korea’s Value-Up ambition
Why South Korea’s stock market has transformed from ugly duckling to world-leading.
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
Why 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 in 2050
Monthly insights
Related insights
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?
Invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
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The information provided does not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. Any general enquiries regarding Baillie Gifford should be directed to the relevant individual as noted in the Contact Us section.
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