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Investment strategy

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.

Aerial view of people fishing in traditional outrigger boat in lake with cloud reflections from above in Polonnaruwa, Sri Lanka.

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

Emerging Markets ex China is a portfolio of 40-80 companies. This is a relatively new asset class for most, but our specific experience dates to 2005. 

Our key goal is to build strong relationships with likeminded 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.

In nearly 30 years, we’ve seen enough unexpected crises to understand the future is uncertain. As investors, our preference is to embrace uncertainty rather than be paralysed by it.
Will SutcliffeHead of Emerging Markets, Partner

Meet the managers

Portfolio construction group

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 March 2024

#Holding% of portfolio
1TSMC15.20
2Samsung Electronics6.94
3Reliance Industries4.45
4MercadoLibre4.25
5SK Hynix3.91
6MediaTek3.89
7Petrobras3.72
8Cash and Deposits3.30
9FEMSA2.02
10Samsung Electronics2.01

Strategy holdings by sector

All figures up to: 31 March 2024

1Information Technology39.71%
2Financials17.38%
3Energy11.59%
4Consumer Discretionary10.27%
5Materials6.93%
6Consumer Staples4.69%
7Industrials3.62%
8Cash3.24%
9Communication Services2.56%
Total 100%

Strategy holdings by sector

All figures up to: 31 March 2024

Total: 100%

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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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

Viewing 19 of 19
  1. 30 years of emerging markets

    Baillie Gifford’s Will Sutcliffe explains how emerging markets have evolved in the last three decades.
    April 2024
    Article15 minutes
  2. High-calibre emerging markets firms

    Why it’s a promising time to invest in exceptional emerging markets companies
    April 2024
    Article4 minutes
  3. 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.
    March 2024
    Document3 minutes
  4. BRICS expansion and impact

    Unveiling the BRICS expansion's global influence and its effect on trade and geopolitics
    February 2024
    Document3 minutes
  5. Baillie Gifford

    Copper's role in emerging markets

    Assessing copper's supply challenges and investment potential in emerging markets for 2024.
    January 2024
    Document3 minutes
  6. How do we do what we do

    How do we implement our emerging markets equities philosophy in practice?
    January 2024
    Document
  7. Why do we do what we do

    Andrew Keiller and John Rae look at why we invest in emerging markets equities in the way that we do.
    December 2023
    Document
  8. India's triumph in a turbulent world

    Uncover insights on emerging markets, India's economy, and Asia's rising export champions.
    December 2023
    Document3 minutes
  9. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  10. South-east Asia's new export champions

    Uncovering Asia's rising export stars in Vietnam, Indonesia and Thailand.
    November 2023
    Document3 minutes
  11. Emerging markets – why bother?

    Emerging markets have underperformed developed ones recently. So, why should we invest in them?
    November 2023
    Article
  12. 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.
    October 2023
    Document3 minutes
  13. AI's hardware hero

    Discover the importance of High Bandwidth Memory in AI development and the key players in the market - SK Hynix and Samsung Electronics.
    September 2023
    Document3 minutes
  14. Beyond the numbers

    An analysis of the relationship between GDP growth and stock market returns in emerging markets, with a focus on China.
    August 2023
    Document3 minutes
  15. Brazil's economic landscape

    Challenging perceptions: Lula's re-election and Brazil's economic potential
    July 2023
    Document3 minutes
  16. Emerging Markets: the possibilist

    Understanding the difference between pessimism and possibility in Emerging Markets.
    May 2022
    Article
  17. Emerging Markets: coming of age

    It’s time to stop looking in the rear-view mirror when it comes to emerging markets.
    October 2020
    Article
  18. Baillie Gifford Emerging Markets Introduction

    Investment Managers Will Sutcliffe, Mike Gush and Sophie Earnshaw give an introduction to investing in Emerging Markets.
    February 2020
    Video6 minutes
  19. Abstract illustration of skyscraper buildings

    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.
    November 2019
    DocumentNovember 2019

How do we do what we do

How do we implement our emerging markets equities philosophy in practice?
January 2024
Document

Related insights

  1. 30 years of emerging markets

    Baillie Gifford’s Will Sutcliffe explains how emerging markets have evolved in the last three decades.
    April 2024
    Article15 minutes
  2. High-calibre emerging markets firms

    Why it’s a promising time to invest in exceptional emerging markets companies
    April 2024
    Article4 minutes
  3. How do we do what we do

    How do we implement our emerging markets equities philosophy in practice?
    January 2024
    Document
  4. Why do we do what we do

    Andrew Keiller and John Rae look at why we invest in emerging markets equities in the way that we do.
    December 2023
    Document
  5. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  6. Emerging markets – why bother?

    Emerging markets have underperformed developed ones recently. So, why should we invest in them?
    November 2023
    Article
  7. Emerging Markets: the possibilist

    Understanding the difference between pessimism and possibility in Emerging Markets.
    May 2022
    Article
  8. Emerging Markets: coming of age

    It’s time to stop looking in the rear-view mirror when it comes to emerging markets.
    October 2020
    Article
  9. Baillie Gifford Emerging Markets Introduction

    Investment Managers Will Sutcliffe, Mike Gush and Sophie Earnshaw give an introduction to investing in Emerging Markets.
    February 2020
    Video6 minutes
  10. Abstract illustration of skyscraper buildings

    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.
    November 2019
    DocumentNovember 2019

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.

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.