1. Baillie Gifford Emerging Markets ex China Fund

    Baillie Gifford Emerging Markets ex China Fund

  2. Overview

    Baillie Gifford Emerging Markets Ex China Fund seeks capital appreciation.

    Investment Proposition

    The Emerging Markets ex China strategy is philosophically identical to the existing EM strategy (long term, active, focused on growth), the exception being that it will not invest in Chinese companies.  The increased appetite for China-dedicated strategies by some investors runs the risk that the rest of EM is neglected. An EM ex China portfolio may be a useful strategy in this regard.

    Performance & Portfolio

    Total returns as of month end 2/29/2024

    Gross Expense Ratio

    Net Expense Ratio

    1 Month*

    3 Months*

    YTD*

    Share Class K19.57%0.87%4.11%8.62%2.90%
    MSCI Emerging Markets ex China Indexn/an/a3.58%7.52%1.01%
    Annualized total returns as of quarter end 12/31/2023

    Gross Expense Ratio

    Net Expense Ratio

    1 Year

    Since Inception†

    Share Class K19.57%0.87%23.87%-3.55%
    MSCI Emerging Markets ex China Indexn/an/a20.62%-0.99%

    Performance of Institutional Class may exceed that of Class K, this is due to rounding. Generally, on Funds which utilize a sub-transfer agency service, we expect Class K to have higher performance than Institutional Class.

    Source: Bank of New York Mellon and relevant underlying index provider(s).

    †Fund inception date: December 28, 2021

    Share Class launch date: December 28, 2021

    All figures quoted are in US dollars, net of fees.

    *Not annualized

    The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

    Expense Ratios: All mutual funds have expense ratios which represent what shareholders pay for operating expenses and management fees. Expense ratios are expressed as an annualized percentage of a fund's average net assets paid out in expenses. Expense ratio information is as of the Fund's current prospectus, as revised and supplemented from time to time. The net expense ratios for this fund are contractually capped (excluding taxes, sub-accounting expenses and extraordinary expenses), through April 30, 2024.

    The MSCI Emerging Markets ex China Index captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries* excluding China. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

    Total returns as of month end 2/29/2024

    Gross Expense Ratio

    Net Expense Ratio

    1 Month*

    3 Months*

    YTD*

    Share Class Institutional19.57%0.87%4.11%8.62%2.90%
    MSCI Emerging Markets ex China Indexn/an/a3.58%7.52%1.01%
    Annualized total returns as of quarter end 12/31/2023

    Gross Expense Ratio

    Net Expense Ratio

    1 Year

    Since Inception†

    Share Class Institutional19.57%0.87%23.87%-3.55%
    MSCI Emerging Markets ex China Indexn/an/a20.62%-0.99%

    Performance of Institutional Class may exceed that of Class K, this is due to rounding. Generally, on Funds which utilize a sub-transfer agency service, we expect Class K to have higher performance than Institutional Class.

    Source: Bank of New York Mellon and relevant underlying index provider(s).

    †Fund inception date: December 28, 2021

    Share Class launch date: December 28, 2021

    All figures quoted are in US dollars, net of fees.

    *Not annualized

     

    The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

     

    Expense Ratios: All mutual funds have expense ratios which represent what shareholders pay for operating expenses and management fees. Expense ratios are expressed as an annualized percentage of a fund's average net assets paid out in expenses. Expense ratio information is as of the Fund's current prospectus, as revised and supplemented from time to time. The net expense ratios for this fund are contractually capped (excluding taxes, sub-accounting expenses and extraordinary expenses), through April 30, 2024.

     

    The MSCI Emerging Markets ex China Index captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries* excluding China. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

    Stock Level Attribution

    Top and bottom 5 relative contributors
    One month to 2/29/2024

    Stock Name Contribution %
    Nu Holdings Ltd. 0.33
    Mediatek 0.32
    SEA Ltd 0.29
    Hyundai Motor 0.28
    SK Hynix Inc 0.26
    MercadoLibre -0.57
    Petrobras -0.33
    Fomento Economico Mexicano Sab -0.20
    HDFC Bank Ltd -0.13
    WNS (Holdings) ADR -0.12

    Holdings

    Top Ten Holdings as of month end 2/29/2024
    Company NameFund %
    1TSMC14.10
    2Samsung Electronics8.58
    3Petrobras5.80
    4MercadoLibre5.15
    5Reliance Industries4.66
    6MediaTek3.88
    7SK Hynix3.59
    8HDFC Bank2.49
    9Grupo Financiero Banorte 2.27
    10Tata Consultancy Services2.22
    Total 52.76%
    Sector Analysis of Total Assets - 2/29/2024
    Fund % Benchmark % Difference %
    1 Information Technology 39.10 28.28 10.81
    2 Financials 19.52 24.80 -5.28
    3 Energy 12.52 6.10 6.42
    4 Consumer Discretionary 11.59 6.80 4.79
    5 Materials 6.46 8.45 -1.99
    6 Industrials 3.95 7.52 -3.57
    7 Consumer Staples 3.43 5.98 -2.55
    8 Communication Services 2.58 4.73 -2.15
    9 Cash 0.85 0.00 0.85
    10 Real Estate 0.00 1.32 -1.32
    11 Utilities 0.00 2.88 -2.88
    12 Health Care 0.00 3.12 -3.12

    Total may not sum due to rounding

    Regional Analysis of Total Assets - 2/29/2024
    Fund % Benchmark % Difference %
    1 Emerging Markets 99.15 99.30 -0.15
    2 Cash 0.85 0.00 0.85
    3 Europe (ex UK) 0.00 0.71 -0.71

    Total may not sum due to rounding

    Country Analysis of Total Assets - 2/29/2024
    Fund % Benchmark % Difference %
    1 Taiwan 21.22 22.54 -1.32
    2 India 19.45 23.74 -4.29
    3 South Korea 17.04 16.88 0.17
    4 Brazil 16.53 7.36 9.17
    5 Mexico 6.31 3.53 2.78
    6 Indonesia 3.41 2.58 0.83
    7 Thailand 3.16 2.17 0.98
    8 South Africa 2.72 3.69 -0.97
    9 Other Emerging Markets 1.75 0.00 1.75
    10 Singapore 1.54 0.00 1.54
    11 Poland 1.36 1.35 0.01
    12 Peru 1.16 0.41 0.74
    13 Other African 1.02 0.00 1.02
    14 Chile 0.85 0.65 0.21
    15 Cash 0.85 0.00 0.85
    16 Saudi Arabia 0.82 5.91 -5.09
    17 Panama 0.81 0.00 0.81
    18 Colombia 0.00 0.15 -0.15
    19 Egypt 0.00 0.15 -0.15
    20 Czech Republic 0.00 0.18 -0.18
    21 Hungary 0.00 0.36 -0.36
    22 Greece 0.00 0.71 -0.71
    23 Philippines 0.00 0.88 -0.88
    24 Turkey 0.00 0.94 -0.94
    25 Kuwait 0.00 1.14 -1.14
    26 Qatar 0.00 1.17 -1.17
    27 United Arab Emirates 0.00 1.67 -1.67
    28 Malaysia 0.00 1.83 -1.83

    It should not be assumed that recommendations/transactions made in the future will be profitable or will equal performance of the securities mentioned. The composition of the Fund's holdings is subject to change. Percentages are based on securities at market value. Internal classifications are used for any graphs represented above.

    There is no guarantee that the investment objective of the Fund will be achieved. Stocks fluctuate in price and the value of your investment in the Fund may go down. This means that you could lose money on your investment in the Fund or the Fund may not perform as well as other possible investments. 

    Managers

    Mike Gush

    Mike is an Investment Manager in the Emerging Markets Equity Team. He joined Baillie Gifford in 2003 and became a partner of the firm in 2020. Prior to joining the team in 2005, he also spent time working in our UK and Japanese Equity Teams. Mike has also been a member of the Sustainable Growth strategy since its inception in 2015, where he is an investment scout. Mike is a CFA Charterholder and graduated MEng from the University of Durham in 2003.

    Ben Durrant

    Ben is an investment manager in the Emerging Markets Equity Team. He has managed the Pacific Fund since 2021 and became deputy manager of the Pacific Horizon Investment Trust in 2023. He joined Baillie Gifford in 2017 and has also spent time in our UK, Global Discovery and Private Companies teams. Prior to joining the firm, he worked for RBS. Ben is a chartered accountant and a CFA Charterholder. He graduated BSc in Mathematics from the University of Edinburgh in 2012.

    Andrew Stobart

    Andrew is an investment manager in the Emerging Markets Equity Team. He joined Baillie Gifford in 1991, and prior to joining the team in 2007, he has also spent time working in our UK, Japanese, and North American Equity teams. Andrew has been involved in running the Emerging Markets portion of the Managed Fund since 2012. Prior to joining Baillie Gifford, he previously spent three years working in investment banking in London. Andrew graduated MA in economics from the University of Cambridge in 1987.

    TAX & DISTRIBUTIONS

    The Fund intends to pay dividends to its shareholders at least annually. Distributions will automatically be reinvested in Fund shares unless you submit a request for cash payment with at least ten days prior notice, before the record date for distribution, to the Transfer Agent. The distribution dates will appear on this page alongside the rates once they become available. The dates can be changed by the Officers of the Funds. For more information on Baillie Gifford Funds’ Distributions please see the Statutory Prospectus. 

    FREQUENTLY ASKED QUESTIONS

    The document in this link contains answers to some of the most commonly asked tax and distribution related questions regarding mutual funds.

    The below table shows the makeup of the most recent distributions paid.

    Fund Name

    Ticker

    Income Dividends

    Short-Term Capital Gains *

    Qualified Dividend Income **

    Foreign Tax Credits

    Long-Term Capital Gains

    Total Per Share

    Ex. Date

    Pay Date

    Status

    Baillie Gifford Emerging Markets ex China Fund K Class BGEZX 0.23694 0.00000 0.23529 0.02740 0.00000 0.23694 12/28/2023 12/28/2023 Final
    Baillie Gifford Emerging Markets ex China Fund Institutional Class BGEWX 0.23694 0.00000 0.23529 0.02740 0.00000 0.23694 12/28/2023 12/28/2023 Final

    Source: Bank of New York Mellon and Baillie Gifford & Co

     

    *Short-Term Capital Gains are treated as ordinary income for U.S. Federal Income Tax Purposes.

    **Qualified Dividend Income is a subset of Income Dividends (rather than an additional category of income).

    Primary ICI File for the Baillie Gifford Mutual Funds can be found here.

    Secondary ICI File for the Baillie Gifford Mutual Funds can be found here.

     

    Risks

    The most significant risks of an investment in the Baillie Gifford Emerging Markets ex China Fund are Investment Style Risk, Growth Stock Risk, Long-Term Investment Strategy Risk, Market Disruption and Geopolitical Risk, Government and Regulatory Risk, Emerging Markets Risk and Asia Risk. The Fund is managed on a bottom-up basis and stock selection is likely to be the main driver of investment returns. Returns are unlikely to track the movements of the benchmark. The prices of growth stocks can be based largely on expectations of future earnings and can decline significantly in reaction to negative news. The Fund is managed on a long-term outlook, meaning that the Fund managers look for investments that they think will make returns over a number of years, rather than over shorter time periods. The value of investments could be adversely affected by events such as war, public health crises and changes in economic and political conditions in the US and elsewhere. This could prevent the Fund from implementing its investment strategies and increase exposure to other risks. Governmental and regulatory authorities in the US and elsewhere have intervened in markets and may do so again in the future. The effects of these actions can be uncertain and could restrict the Fund in implementing its investment strategies. Some non-US markets have had little regulation which could increase risk of loss due to fraud or market failures. Governmental and regulatory authorities may adopt or change laws that could adversely impact the Fund. The Fund focuses on investments in emerging markets excluding China, meaning it may offer less diversification and be more volatile than other funds. Investing in emerging markets can involve additional market, credit, currency, liquidity, legal or political risks than investing in more developed markets. Some Asian securities may be less liquid than US or other foreign securities. They can be affected by high inflation, currency fluctuations, political instability and less efficient markets. Many Asian economies are dependent on international trade and only a few industries and can be badly affected by trade barriers.  Other Fund risks include: Non-Diversification Risk, Conflicts of Interest Risk, Currency Risk, Equity Securities Risk, Environmental, Social and Governance Risk, Focused Investment Risk, Frontier Markets Risk, Geographic Focus Risk, Information Technology Risk, Initial Public Offering Risk, Large-Capitalization Securities Risk, Liquidity Risk, Market Risk, New and Smaller-Sized Funds Risk, Non-U.S. Investment Risk, Service Provider Risk, Settlement Risk, Small-and Medium-Capitalization Securities Risk, Underlying Funds Risk and Valuation Risk.

    The Baillie Gifford Mutual Funds are distributed by Baillie Gifford Funds Services LLC. Investors should carefully consider the objectives, risks, charges and expenses of the Funds before investing. This information and other information about the Funds can be found in the prospectus and the summary prospectus. For a prospectus and summary prospectus please go to the Documents section on this page. Please carefully read the Fund’s prospectus and related documents before investing.

    Index Disclaimer

    Source: MSCI EM ex China. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an ‘as is’ basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the ‘MSCI Parties’) expressly disclaims all warranties (including, without limitation, any warranties or originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).

    The Baillie Gifford Mutual Funds are distributed by Baillie Gifford Funds Services LLC. Investors should carefully consider the objectives, risks, charges and expenses of the Funds before investing. This information and other information about the Funds can be found in the prospectus and the summary prospectus. For a prospectus and summary prospectus please go here. Please carefully read the Fund’s prospectus and related documents before investing.