Baillie Gifford Global Stewardship Equities Fund
Baillie Gifford Global Stewardship Equities Fund
The Baillie Gifford Global Stewardship Equities Fund seeks capital appreciation.
The Fund invests in sustainable growth companies. It mitigates Environmental, Social and Governance (ESG) risks by applying 'sin sector' exclusions, and then seeks to identify ESG opportunities by focusing on companies which our research suggests are a net benefit to society, which balance the interests of all stakeholders, and which exhibit a responsible culture. The Portfolio Construction Group (PCG) is made up of experienced investors and ESG specialists, who provide challenge, context and comparison when building a concentrated portfolio of 70-100 stocks.
Performance & Portfolio
Annualized total returns as of month end** 2/28/2023
Gross Expense Ratio
Net Expense Ratio
Share Class K -4.22% 2.44% 9.55% -42.41% 0.42% 3.48% 3.75% 3.64% 0.65% MSCI ACWI Index -2.83% 0.10% 4.16% -17.96% 4.49% 5.74% 6.03% n/a n/a
**Returns for periods less than one year are not annualized and are as of the date shown above. Returns for all other periods are as of December 31 2022, periods over 1 year are annualized.
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 14, 2017
Share Class launch date: December 14, 2017
All figures quoted are in US dollars, net of fees.
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.
Returns are based on the K share class from December 14, 2017.
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, 2023.
The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global developed markets. 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 2/28/2023
Stock Name Contribution % Nvidia 0.59 Tesla Inc 0.32 The Trade Desk 0.26 Pacira BioSciences 0.20 Watsco Inc 0.16 JD.com -0.45 Shopify -0.36 Staar Surgical -0.35 Chegg -0.29 Meituan -0.25Sector Analysis of Total Assets - 2/28/2023 Fund % Benchmark % Difference % 1 Industrials 24.04 10.17 13.87 2 Consumer Discretionary 15.84 11.04 4.80 3 Cash 3.31 0.00 3.31 4 Health Care 14.17 12.28 1.89 5 Communication Services 7.85 7.01 0.84 6 Financials 14.53 15.38 -0.85 7 Real Estate 0.32 2.56 -2.24 8 Utilities 0.00 2.87 -2.87 9 Information Technology 17.89 21.14 -3.25 10 Materials 0.00 4.96 -4.96 11 Energy 0.00 5.24 -5.24 12 Consumer Staples 2.06 7.36 -5.30 Total 100.00 100.00Total may not sum due to roundingRegional Analysis of Total Assets - 2/28/2023 Fund % Benchmark % Difference % 1 Developed Asia Pacific 17.09 8.59 8.50 2 Cash 3.31 0.00 3.31 3 Europe (ex UK) 16.50 13.24 3.25 4 UK 6.23 3.95 2.29 5 Emerging Markets 11.75 10.87 0.88 6 North America 45.12 63.35 -18.23 Total 100.00 100.00Total may not sum due to roundingCountry Analysis of Total Assets - 2/28/2023 Fund % Benchmark % Difference % 1 Japan 13.74 5.46 8.27 2 Sweden 5.31 0.89 4.42 3 Cash 3.31 0.00 3.31 4 Hong Kong 3.36 0.72 2.64 5 UK 6.23 3.95 2.29 6 Taiwan 3.37 1.66 1.70 7 Netherlands 2.79 1.15 1.64 8 Brazil 2.11 0.55 1.56 9 France 4.25 3.19 1.06 10 South Korea 1.95 1.28 0.67 11 Norway 0.76 0.18 0.58 12 Denmark 1.19 0.75 0.43 13 India 1.51 1.44 0.07 14 Italy 0.65 0.65 0.00 15 Egypt 0.00 0.01 -0.01 16 Colombia 0.00 0.01 -0.01 17 Czech Republic 0.00 0.02 -0.02 18 Hungary 0.00 0.02 -0.02 19 Peru 0.00 0.03 -0.03 20 Greece 0.00 0.04 -0.04 21 New Zealand 0.00 0.05 -0.05 22 Austria 0.00 0.05 -0.05 23 Portugal 0.00 0.05 -0.05 24 Chile 0.00 0.06 -0.06 25 Turkey 0.00 0.07 -0.07 26 Philippines 0.00 0.08 -0.08 27 Poland 0.00 0.08 -0.08 28 Kuwait 0.00 0.10 -0.10 29 Qatar 0.00 0.10 -0.10 30 United Arab Emirates 0.00 0.14 -0.14 31 Malaysia 0.00 0.16 -0.16 32 Israel 0.00 0.17 -0.17 33 Ireland 0.00 0.19 -0.19 34 Indonesia 0.00 0.21 -0.21 35 Thailand 0.00 0.23 -0.23 36 Finland 0.00 0.25 -0.25 37 Belgium 0.00 0.26 -0.26 38 Mexico 0.00 0.29 -0.29 39 Singapore 0.00 0.37 -0.37 40 South Africa 0.00 0.38 -0.38 41 Saudi Arabia 0.00 0.42 -0.42 42 Germany 1.54 2.19 -0.64 43 Spain 0.00 0.67 -0.67 44 China 2.80 3.50 -0.70 45 Canada 2.33 3.06 -0.73 46 Australia 0.00 1.99 -1.99 47 Switzerland 0.00 2.53 -2.53 48 United States 42.79 60.29 -17.50 Total 100.00 100.00
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.
Toby is an Investment Manager on the Sustainable Growth Team and will be a Partner in the firm from May 2023. He first joined Baillie Gifford in 2006, as an analyst on the UK equities team. He joined the Global Income Growth team as an Investment Manager in 2013, and in this role, he helped to develop the team’s approach to responsible investment. He became the Joint Manager of The Scottish American Investment Company PLC (SAINTS) in 2017. In 2022, Toby assumed the leadership of the Sustainable Growth Team. He graduated MA in English Literature from the University of Cambridge in 2006 and is a CFA Charterholder.
Katherine is an Investment Manager on the Sustainable Growth Team. Before joining Baillie Gifford in September 2022, she had spent her investment career on the Global and International Equity Team at Schroders. Katherine joined the Schroders graduate scheme in 2008 and held various sector and fund responsibilities while developing a growing interest and expertise in sustainable investing. Katherine was instrumental in the development and management of Schroders’ Global Sustainable Growth Fund. She graduated with an MA in Philosophy, Politics and Economics from the University of Oxford in 2008 and is a CFA Charterholder.
Matthew is an Investment Manager in the Japanese Equities Team and has been a member of the Global Stewardship Portfolio Construction Group since its inception. He is manager of the Japanese All Cap Strategy and Lead Manager of the Japanese Income Growth Strategy. Matthew joined Baillie Gifford in 2003 and became a Partner in 2018. He is a CFA Charterholder. Matthew graduated BA (Hons) in Natural Sciences (Psychology) from the University of Cambridge in 2000 and holds a PhD in Psychology from the University of Bristol.
Mike has been involved with the Global Stewardship strategy since inception as a member of the Portfolio Construction Group. He is a named manager for Baillie Gifford’s Emerging Markets and China Funds, as well as being responsible for the Emerging Markets Small Cap strategy. Mike first joined Baillie Gifford in 2003 and before moving to the Emerging Markets Equity Team in 2005, Mike worked in the UK and Japanese Equity Teams. Mike became a Partner of the firm in 2020. He is a CFA Charterholder and graduated MEng from the University of Durham in 2003.
Gary has been a member of the Global Stewardship Portfolio Construction Group since its inception in 2015 and is an Investment Manager in the US Equities Team. He graduated MBiochem in Biochemistry from the University of Oxford in 2003 and joined Baillie Gifford the same year. He spent time working on our Japanese, UK and European Equity Teams before moving to the US Equities Team in 2008. Gary is a generalist investor but retains a special interest in the healthcare sector dating back to his undergraduate degree. Gary became a Partner of the firm in 2019.
Zaki joined Baillie Gifford in 2007 and in 2017 he became a member of the Global Stewardship Portfolio Construction Group. He is a Senior Analyst in the Global Discovery Investment Team. Zaki graduated BA in Business Accounting and Finance from the University of Newcastle in 2006.
Craig is a Senior Sustainability Analyst in the Sustainable Growth Team. He first joined Baillie Gifford in 2015 via the Investment Operations Graduate Scheme. As a dedicated sustainability analyst for the strategy, Craig has a particular interest in the opportunity side of sustainable investment and maintains a firm belief that ESG is a complex and nuanced area, which fits with his passion for in-depth research. Craig graduated with a BSc (Hons) in Business and an MSc in Finance, both from Lancaster University Management School.
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.
Short-Term Capital Gains *
Qualified Dividend Income **
Foreign Tax Credits
Long-Term Capital Gains
Total Per Share
Baillie Gifford Global Stewardship Equities Fund Institutional Class BGSSX 0.00000 0.00000 0.00000 0.00000 0.42598 0.42598 11/30/2022 11/30/2022 Final Baillie Gifford Global Stewardship Equities Fund K Class BGSKX 0.00000 0.00000 0.00000 0.00000 0.42598 0.42598 11/30/2022 11/30/2022 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 Funds can be found here.
Secondary ICI File for the Baillie Gifford Funds can be found here.
Quarterly Investor Reports
Statement of Additional Information (SAI)
The most significant risks of an investment in the Baillie Gifford Global Stewardship Equities Fund are Investment Style Risk, Growth Stock Risk, Long-Term Investment Strategy Risk, Socially Responsible Investing Risk and Non-U.S. Investment 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 Fund's focus on social, environmental or governance (ESG) factors may mean it makes different investments than funds that do not focus on these issues in their investment process. The Fund may not choose to invest in potentially profitable companies or could sell investments based on ESG factors when it might be a financial disadvantage to do so. Non-U.S. securities are subject to additional risks, including less liquidity, increased volatility, less transparency, withholding or other taxes and increased vulnerability to adverse changes in local and global economic conditions. There can be less regulation and possible fluctuation in value due to adverse political conditions. Other Fund risks include: Asia Risk, China Risk, Conflicts of Interest Risk, Currency Risk, Emerging Markets Risk, Equity Securities Risk, Environmental, Social and Governance Risk, Focused Investment Risk, Government and Regulatory Risk, Information Technology Risk, Initial Public Offering Risk, Japan Risk, Large-Capitalization Securities Risk, Liquidity Risk, Market Disruption and Geopolitical Risk, Market Risk, New and Smaller-Sized Funds Risk, Service Provider Risk, Settlement Risk, Small-and Medium-Capitalization Securities 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.
Source: MSCI. 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.