1. Overview

    The British Smaller Companies Fund aims to outperform (after deduction of costs) the Numis Smaller Companies Index (excluding Investment Companies) by at least 2% per annum over rolling five-year periods. There is no guarantee that this objective will be achieved over any time period and actual investment returns may differ from this objective, particularly over shorter time periods.

    The manager believes this is an appropriate benchmark given the investment policy of the Fund and the approach taken by the manager when investing. In addition, the manager believes an appropriate performance comparison for this Fund is the Investment Association UK Smaller Companies Sector.

    We invest in companies with strong earnings per share and cashflow growth characteristics, which we believe is consistent with achieving attractive overall returns.

    Performance & Portfolio

    Periodic Performance

    All figures to 31/07/2021

    6 Months

    1 Year

    3 Years

    5 Years

    Class B-Acc 9.3%46.4%10.5%11.6%
    Index* 18.8%49.4%6.6%9.5%
    Target Benchmark** 20.0%52.4%8.8%11.7%
    Sector Average*** 21.4%54.7%10.9%15.2%
    Sector Ranking 51/5141/5030/4838/46

    Annual Discrete Performance to 30 June each year

    Annual percentage return (Updated Quarterly)

    30/06/2016
    30/06/2017

    30/06/2017
    30/06/2018

    30/06/2018
    30/06/2019

    30/06/2019
    30/06/2020

    30/06/2020
    30/06/2021

    Class B-Acc 28.9%8.6%-13.3%2.7%44.7%
    Index* 29.1%7.6%-5.4%-15.0%49.8%
    Target Benchmark** 31.7%9.8%-3.5%-13.3%52.8%
    Sector Average*** 36.3%17.2%-6.2%-6.6%53.1%

    Please bear in mind that past performance is not a guide to future performance.
    The value of your investment may go down as well as up, and you may not get back the amount you invested.
    Performance source: FE and relevant underlying index provider, single pricing basis, total return.
    Returns reflect the annual charges but exclude any initial charge paid.
    *Numis Smaller Companies Index (ex. Inv Companies).
    **Numis Smaller Companies Index (ex. Inv.Companies) +2%.
    ***IA UK Smaller Companies Sector.

    Performance - 31/07/2021

    The value of your investment may go down as well as up, and you may not get back the amount you invested.
    Sector data based on B-Acc share class performance.
    Source: FE and relevant underlying index provider, single pricing basis, total return.
    Please bear in mind that past performance is not a guide to future performance.
    The graph is rebased to 100.

    Top Ten Holdings - 31/07/2021

    Fund %
    1 YouGov 5.7%
    2 Genus 3.3%
    3 Kainos 3.3%
    4 Draper Esprit 3.0%
    5 dotdigital 2.9%
    6 Victoria 2.9%
    7 4imprint 2.6%
    8 Creo Medical 2.5%
    9 Boohoo.com 2.3%
    10 Alpha FX 2.3%
    Total 30.8%
    SECTOR ANALYSIS OF TOTAL ASSETS - 31/07/2021

    Fund %

    • 1 Industrials 21.21
    • 2 Technology 19.39
    • 3 Health Care 14.04
    • 4 Financials 9.62
    • 5 Retailers 7.99
    • 6 Media 5.68
    • 7 Leisure Goods 4.86
    • 8 Personal Care, Drug and Grocery Stores 4.64
    • 9 Consumer Discretionary 3.65
    • 10 Household Goods and Home Construction 2.91
    • 11 Automobiles and Parts 1.66
    • 12 Travel and Leisure 1.20
    • 13 Basic Materials 0.88
    • 14 Real Estate 0.38
    • 15 Cash 1.88
    • Total 100.0

    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.

    Meet the Managers

    Charlie Broughton

    Charlie joined Baillie Gifford in 2014 and is an Investment Manager in the Smaller Companies Team. He graduated MA (Hons) in Medieval History and Archaeology from the University of St Andrews in 2013. Charlie is a CFA Charterholder.

    Steve Vaughan

    Steve joined Baillie Gifford in 2012 and is an Investment Manager in the International Smaller Companies Team. He is a CFA Charterholder. Prior to joining Baillie Gifford, Steve was an Officer in the British Army for nine years. He graduated BA (Hons) in Jurisprudence from the University of Oxford in 2001 and MA in International Relations from the University of Exeter in 2012.

    How to Invest

    You can invest in our funds via a number of fund platforms and supermarkets, please see the links opposite. Information on the range of funds available through platforms can be found in our Platform Matrix.

    Please note that we do not have the facility for you to invest directly with us in our Investment Trusts and we do not offer ISAs, SIPPS or Share Plans.

    Please also note that we do not have an online service for individual investors.

    Further information on our funds can be found in the relevant Key Investor Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request.

    Baillie Gifford does not sponsor, maintain or have any control over the content of any other websites. Therefore, we are not responsible for the adequacy or accuracy of any of the information you may view, nor do we undertake to ensure successful transmission to any linked website.

    How to Invest

    Getting Financial Advice

    At Baillie Gifford we don’t provide financial advice, but we do try our best to provide you with all the information we think you might need to make investment decisions. Of course, we realise there are occasions when you may want the advice of an expert.

    Using professional financial advice

    An authorised intermediary can give you advice and help on how best to manage your financial affairs based on your circumstances and investment aspirations. They can also help keep track of all your different investment interests, saving you a lot of time and bookkeeping.

    Finding a financial adviser near you

    If you want to use an authorised intermediary, MyLocalAdviser is a website that allows you to search for authorised intermediaries in your area. You can visit their site on www.mylocaladviser.co.uk

    Documents

    You can access any literature about the Fund here, either by downloading or requesting a copy by post (where available). Please note that, due to current government restrictions, we have a limited number of staff in our office. As a result, if posting instructions to us, there may be a delay in processing these due to these current restrictions.

    To download any document you will need Adobe Reader. Please note that we can now provide you with Braille and audio transcriptions of our literature on request. It may take up to 10 days for the transcription to be completed dependent on the size of the document.

    Risks

    General Investment Risk

    Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested.

    Custody

    Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.

    Single Country

    The Fund’s exposure to a single market may increase share price movements.

    Smaller Companies

    Investment in smaller companies is generally considered higher risk as the market for their shares may be less liquid and more difficult to trade than that for larger companies. As a result, share price fluctuations may be greater. In addition smaller companies may not do so well in periods of adverse economic conditions. Where such companies have business models and competitive positions which are less well established, this could result in an increased likelihood of loss for investors.

    Market Conditions

    Any value assigned to illiquid securities which are difficult to trade, such as those in smaller companies, may not accurately reflect the price the Fund might receive upon their sale.

    Concentration

    The Fund’s concentrated portfolio relative to similar funds may result in large movements in the share price in the short term.

    Volatility

    The Fund’s share price can be volatile due to movements in the prices of the underlying holdings and the basis on which the Fund is priced.

    Dilution

    A dilution adjustment may apply when you buy or sell shares in the Fund. This is applied to the share price and may reduce the return on your investment.

    Fees from Revenue

    Where possible, charges are taken from the Fund's revenue. Where there is insufficient revenue, the remainder will be taken from capital. This will reduce the capital value of your investment.

    Tax Rates

    Tax rates and the tax treatment of OEICs can change at any time.