1. Overview

    Baillie Gifford Health Innovation Equities Fund seeks capital appreciation.

    Investment Proposition

    The strategy aims to invest in companies that have the potential to bring substantial improvements to human health and healthcare systems.  The team believe such companies are best positioned to deliver attractive investment returns over the long term.  The team recognise that such companies often lie at the intersection of the different disciplines, driven by the convergence of technologies and it is therefore critical that the scope is not limited to the traditional definition of the healthcare sector.  The team’s ambition extends beyond generating attractive returns for the Fund’s investors – they also want to play a part in speeding up the healthcare revolution. 

    Performance & Portfolio

    Annualized total returns as of month end** 8/31/2022

    1 Month*

    3 Months*

    YTD*

    Since Inception*†

    Gross Expense Ratio

    Net Expense Ratio

    Share Class K0.73%10.18%-30.56%-36.60%2.22%0.65%
    MSCI ACWI Index-3.64%-5.53%-17.47%-20.07%n/an/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 June 30 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 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, 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 and emerging markets, excluding the United States. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

     

    Annualized total returns as of quarter end 6/30/2022

    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.

    The Baillie Gifford Fund's performance shown assumes reinvestment of dividend and capital gain distributions and is net of management fees and expenses. Returns for periods less than one year are not annualized. From time to time, certain fees and/or expenses have been voluntarily or contractually waived or reimbursed, which has resulted in higher returns. Without these waivers or reimbursements, the returns would have been lower. Voluntary waivers or reimbursements may be applied or discontinued at any time without notice. Only the Board of Trustees may modify or terminate contractual fee waivers or expense reimbursements. All fees are described in the fund's prospectus.

     

    Annualized total returns as of month end** 8/31/2022

    1 Month*

    3 Months*

    YTD*

    Since Inception*†

    Gross Expense Ratio

    Net Expense Ratio

    Share Class Institutional0.73%10.18%-30.56%-36.60%2.37%0.80%
    MSCI ACWI Index-3.64%-5.53%-17.47%-20.07%n/an/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 June 30 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 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, 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 and emerging markets. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

    Annualized total returns as of quarter end 6/30/2022

    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.

    The Baillie Gifford Fund's performance shown assumes reinvestment of dividend and capital gain distributions and is net of management fees and expenses. Returns for periods less than one year are not annualized. From time to time, certain fees and/or expenses have been voluntarily or contractually waived or reimbursed, which has resulted in higher returns. Without these waivers or reimbursements, the returns would have been lower. Voluntary waivers or reimbursements may be applied or discontinued at any time without notice. Only the Board of Trustees may modify or terminate contractual fee waivers or expense reimbursements. All fees are described in the fund's prospectus.

     

    Holdings 6/30/2022

    SEDOL ISIN Company Country Holding Asset Price Currency Asset Type Market Value (USD) Fund %
    1 BNHKYX4 NL0010832176 Argenx Netherlands 1,469 357.50 EUR Equity 549036.30 8.65
    2 BHLNZ89 US82489T1043 ShockWave Medical United States 2,673 191.17 USD Equity 510997.41 8.05
    3 BGSXTS3 US60770K1079 Moderna United States 2,794 142.85 USD Equity 399122.90 6.29
    4 4595739 DK0010272202 Genmab Denmark 1,210 2297.00 DKK Equity 390725.89 6.15
    5 B00FWN1 US02043Q1076 Alnylam Pharmaceuticals United States 2,108 145.85 USD Equity 307451.80 4.84
    6 5843329 DE0007165631 Sartorius Group Germany 872 333.40 EUR Equity 303938.21 4.79
    7 2567116 US28176E1082 Edwards Lifesciences United States 3,044 95.09 USD Equity 289453.96 4.56
    8 B02K2M3 JP3435750009 M3 Japan 9,200 3898.00 JPY Equity 263969.67 4.16
    9 2613990 US4523271090 Illumina United States 1,328 184.36 USD Equity 244830.08 3.86
    10 BL6B9P1 KYG970081173 WuXi Biologics China 25,500 71.80 HKD Equity 233326.32 3.67
    Total 55.01%
    Sector Analysis of Total Assets - 6/30/2022

    Fund %

    • 1 Health Care 97.95
    • 2 Financials 0.21
    • 3 Cash 1.84
    • Total 100.0

    Total may not sum due to rounding

    Regional Analysis of Total Assets - 6/30/2022

    Fund %

    • 1 North America 61.09
    • 2 Europe (ex UK) 27.47
    • 3 Emerging Markets 4.60
    • 4 Developed Asia Pacific 4.16
    • 5 UK 0.84
    • 6 Cash 1.84
    • Total 100.0

    Total may not sum due to rounding

    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

    Julia Angeles

    Julia co-founded the Health Innovation strategy in 2018 and is a member of the Portfolio Construction Group.
    She joined Baillie Gifford in 2008 and has been part of different global and regional teams. Julia previously worked as a Management Consultant at McKinsey & Company advising firms in Denmark, Russia and Hungary. She obtained a PhD in Economics from the University of Aarhus, Denmark in 2005, and speaks fluent Russian and Danish. Julia will become a Partner in 2022.

    Marina Record

    Marina joined Baillie Gifford in 2008 as an Investment Analyst in the Long Term Global Growth Team. However, she joined the Health Innovation Team in January 2018. Marina graduated BSc in Banking and Finance from the London School of Economics and BSc in Economics from the Higher School of Economics, Russia, both in 2008 having studied on these programmes simultaneously.

    Rose Nguyen

    Rose joined Baillie Gifford in 2013 as an investment analyst.  Rose worked on various regional and global strategies before joining the Health Innovation team as an Investment Manager. Having observed the innovations in multiple industries, she believes that the great convergence of different technologies and sciences will ultimately transform life science. Biology can move from alchemy and randomness to become a more predictable, deterministic and repeatable science, that will give rise to a plethora of exciting investment opportunities. She joined the Health Innovation team in September 2018 at the inception of the strategy. 

    Rose graduated BA (Hons) in Economics and MPhil in Finance and Economics from the University of Cambridge in 2012 and 2013 respectively.

    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 table below shows the proposed distribution dates for the current tax year. The dates can be changed by the Officers of the Funds.

    Distribution Year

    Record Date

    ex Date

    Payable Date

    2022 12/27/2022 12/28/2022 12/28/2022

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

    Risks

    The most significant risks of investing in the Baillie Gifford Health Innovation Equities Fund are Investment Style Risk, Healthcare Industry Risk, Growth Stock Risk, Long-Term Investment Strategy Risk, Non-Diversification Risk and Focused 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 healthcare industry is subject to regulatory action by a number of private and governmental agencies. The profitability of companies in the healthcare sector may be affected by government regulations and government healthcare programs, increases or decreases in the cost of medical products and services, demand for medical products and services and product liability claims, among other factors. New products can be subject to regulatory approvals, which can be a long and costly process with no guarantee of success. Patent protection and the expiration of patents may affect a company’s profitability. 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 may have a smaller number of holdings with larger positions in each relative to other mutual funds. The Fund's focus on a limited number of sectors or companies will create more risk and greater volatility than if the Fund were less focused. Other Fund risks include: China Risk, Conflicts of Interest Risk, Emerging Markets Risk, Equity Securities Risk, Environmental, Social and Governance Risk, Geographic Focus Risk, Government and Regulatory Risk, Information Technology Risk, Initial Public Offering Risk, Liquidity Risk, Market Disruption and Geopolitical Risk, Market Risk, New and Smaller-Sized Funds Risk, Service Provider 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.

    Index Disclaimer

    Source: MSCI ACWI. 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.