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<p class="MsoNormal"><strong>Investors should consider the investment objectives, risks, charges and expenses carefully before investing. This information and other information about the Funds can be found in the prospectus and summary prospectus. For a prospectus and summary prospectus, please visit our website at bailliegifford.com/usmutualfunds Please carefully read the Fund's prospectus and related documents before investing. Securities are offered through Baillie Gifford Funds Services LLC, an affiliate of Baillie Gifford Overseas Ltd and a member of FINRA.</strong></p>
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<p><strong>Tell us about the company.</strong></p>
<p><strong>Ben James: </strong>Netflix was founded in 1997 when less than 2 per cent of the world was online. But change was in the air, giving companies the opportunity to grow or be left behind. It recognised the potential for future media consumption, beginning life as a DVD-by-mail rental service to compete with the likes of Blockbuster Video. A decade later, it made the bold pivot to develop into an online streaming service. In doing so, Netflix became the first truly global entertainment and media distribution brand. And today it has over 300 million subscribers in 190 countries.</p>
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<p><strong>What makes this stock special?</strong></p>
<p>We admire Netflix's unique ability to continuously reinvent itself, from its beginnings as a DVD-by-mail service to a streaming service, from relying on third-party content to investing in original shows, and from ad-free subscriptions to introducing an advertising-supported tier. Netflix consistently adapts to stay ahead. The company's strength lies in its exceptional scale advantage, amplified by its data-driven insights. With every new subscriber, Netflix gathers invaluable viewing data that enables it to refine content creation, personalised user experiences, and predict audience preferences with remarkable accuracy.</p>
<p>Original local hits like South Korea's Squid Game demonstrate this advantage, drawing huge global audiences, optimising recommendations, and spreading production budgets across millions of subscribers worldwide. We believe Netflix's distinctive culture has been the foundation for its long-term success. Its commitment to hiring top talent and empowering employees through transparency, autonomy and generous compensation encourages continuous innovation</p>
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<p><strong>What could the future hold?</strong></p>
<p>Netflix has transitioned from disruptive newcomer to a reliable cash-generating powerhouse, with so much more to give. Its new advertising-supported tier broadens its appeal, capturing price-sensitive viewers while maintaining profitability. The company aims for a multi-billion dollar advertising business by 2030. Adding live sports and major events could significantly boost subscriber engagement and advertising revenue. Its unique blend of creative storytelling and technological excellence positions it to transform live events into global spectacles. Its expansion into gaming extends Netflix's reach into the broader battle for our attention and screen time. The company leverages its intellectual property and vast subscriber base to tap into a $100bn plus mobile gaming market.</p>
<p>Today, Netflix is a leader in global entertainment, yet it's still poised for substantial growth. Its globally scaled content engine, reinforced by new revenue streams and underpinned by its highly effective culture, makes it a compelling investment for enduring growth.</p>
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<h3 data-gtm-vis-recent-on-screen934959_1669="1806" data-gtm-vis-first-on-screen934959_1669="1806" data-gtm-vis-total-visible-time934959_1669="100" data-gtm-vis-has-fired934959_1669="1">Risk factors</h3>
<p>The Funds are distributed by Baillie Gifford Funds Services LLC. Baillie Gifford Funds Services LLC is registered as a broker-dealer with the SEC, a member of FINRA and is an affiliate of Baillie Gifford Overseas Limited. All information is sourced from Baillie Gifford & Co unless otherwise stated.</p>
<p>As with all mutual funds, the value of an investment in the Fund could decline, so you could lose money. International investing involves special risks, which include changes in currency rates, foreign taxation and differences in auditing standards and securities regulations, political uncertainty and greater volatility. These risks are even greater when investing in emerging markets. Security prices in emerging markets can be significantly more volatile than in the more developed nations of the world, reflecting the greater uncertainties of investing in less established markets and economies. Currency risk includes the risk that the foreign currencies in which a Fund’s investments are traded, in which a Fund receives income, or in which a Fund has taken a position, will decline in value relative to the U.S. dollar. Hedging against a decline in the value of currency does not eliminate fluctuations in the prices of portfolio securities or prevent losses if the prices of such securities decline. In addition, hedging a foreign currency can have a negative effect on performance if the U.S. dollar declines in value relative to that currency, or if the currency hedging is otherwise ineffective. </p>
<p>For more information about these and other risks of an investment in the Funds, see "Additional Information about Principal Strategies and Risks" in the prospectus. There can be no assurance that the Funds will achieve their investment objectives. </p>
<p>This communication was produced and approved in March 2026 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.</p>
<p>This communication contains information on investments which does not constitute independent research. Accordingly, it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned.</p>
<p>As at March 2026, Baillie Gifford held Netflix. A full list of holdings is available on request and is subject to change.</p>
