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<p><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 <a rel="noopener" href="https://www.bailliegifford.com/usmutualfunds" target="_blank" title="US mutual funds">bailliegifford.com/usmutualfunds</a> 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>Sarah Clark:</strong> Inside a high-tech factory, machines hum with coordination. Robotic arms glide. Every movement is perfectly timed.</p>
<p>Behind it all – powering that motion – are components driven by air.</p>
<p>This the space SMC quietly dominates. Founded in 1959, this Japanese company is now a global leader in industrial pneumatics.</p>
<p>Its parts may be hidden, but they’re vital to keeping production lines running – from semiconductors to life-saving medical devices.</p>
<p>And as automation accelerates, SMC’s precision is more essential than ever.</p>
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<p><strong>What makes this stock special?</strong></p>
<p>At Baillie Gifford, we’ve invested in SMC for over 30 years. And it’s that long-term perspective that helps us see what sets it apart.</p>
<p>SMC’s engineers are hands-on – guiding clients from concept to installation.</p>
<p>They design, customise, and deliver. Anywhere in the world. This deep partnership turns small components into high-impact solutions.</p>
<p>It also has an impressive competitive edge in logistics. It doesn’t just make parts – it delivers them, fast and reliably.</p>
<p>Its supply chain runs like a shinkansen – built for speed, dependability, and minimal delay.</p>
<p>Heavy investment in local warehouses and supply chains means customers get what they need, when they need it.</p>
<p>The Takada family still stand at the helm and are still deeply invested.</p>
<p>Like many enduring Japanese businesses, this family stewardship encourages long-term decision-making – and helps the company stay focused on future growth.</p>
<p>But underpinning it all is something distinctly Japanese, a deep-rooted culture of craftmanship and meticulous engineering. </p>
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<p><strong>What could the future hold?</strong></p>
<p>SMC isn’t standing still.</p>
<p>The company is expanding beyond its traditional base – reaching into sectors like food, healthcare, and packaging, where demand is more stable and less cyclical.</p>
<p>At the same time, SMC is doubling down on environmental and energy performance. Most factories run on 7-8 bar of compressed air – but SMC’s next-generation pneumatics can operate at just 4 bar. This is a game-changer for manufacturers: delivering huge, annualised energy savings.</p>
<p>That kind of impact elevates SMC from a component supplier to a strategic partner –opening the door to new customers.</p>
<p>Management’s goal is to reach 50 per cent global market share – and there’s reason to believe it can. With its relentless focus on precision, global trust, and long-term mindset, SMC could continue to shape the future of manufacturing.</p>
<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 class="MsoNormal">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 class="MsoNormal">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 class="MsoNormal">For more information about these and other risks of an investment in the Funds, see "Principal Investment Risks" and "Additional Investment Strategies" in the prospectus. There can be no assurance that the Funds will achieve their investment objectives.</p>
<p class="MsoNormal">This communication was produced and approved in February 2026 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.</p>
<p class="MsoNormal">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 class="MsoNormal">As at February, 2026, Baillie Gifford held SMC. A full list of holdings is available on request and is subject to change.</p>
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