1. Baillie Gifford International Smaller Companies Fund

    Baillie Gifford International Smaller Companies Fund

  2. Overview

    The Baillie Gifford International Smaller Companies Fund seeks capital appreciation.

    Investment Proposition

    Great companies can be so for different reasons. Some are driven by a vision to shape and transform industries. Some have unique skillsets to exploit emerging opportunities. Some simply operate at a superior level through distinctive culture or thoughtful stewardship. At the lower end of the market cap spectrum, many of these are often underappreciated, and even ignored, by the market given many narrowly focused and short-term driven participants. We focus on unearthing the most exceptional smaller international companies and, by harnessing the asymmetry inherent in equity markets, aim to capture the disproportionate impact of successful investments.

    Performance & Portfolio

    Annualized total returns as of month end** 5/31/2021

    1 Month*

    3 Months*

    YTD*

    1 Year

    Since Inception†

    Gross Expense Ratio

    Net Expense Ratio

    Share Class K-2.48%3.02%3.43%90.50%30.96%17.20%0.90%
    MSCI ACWI ex-USA Small Cap Index2.37%9.35%13.13%70.42%18.82%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 March 31 2021, periods over 1 year are annualised.

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

    Fund inception date: December 19, 2018

    Share Class launch date: December 19, 2018

    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.

     

    Returns are based on the K share class from December 19, 2018. 

     

    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, 2022.

     

    The MSCI World ex USA Small Cap Index captures small cap representation across Developed Markets countries (excluding the United States). This index does not reflect fees and expenses and is not available for direct investment.

     

    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** 5/31/2021

    1 Month*

    3 Months*

    YTD*

    1 Year

    Since Inception†

    Gross Expense Ratio

    Net Expense Ratio

    Share Class Institutional-2.48%3.02%3.43%90.50%30.96%17.20%0.90%
    MSCI ACWI ex-USA Small Cap Index2.37%9.35%13.13%70.42%18.82%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 March 31 2021, periods over 1 year are annualised.

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

    Fund inception date: December 19, 2018

    Share Class launch date: December 19, 2018

    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.

     

    Returns are based on the Institutional share class from December 19, 2018

     

    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, 2022.

     

    The MSCI World ex USA Small Cap Index captures small cap representation across Developed Markets countries (excluding the United States). This index does not reflect fees and expenses and is not available for direct investment.

     

    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 3/31/2021

    SEDOL ISIN Company Country Holding Asset Price Currency Asset Type Market Value (USD) Fund %
    1 BJXMLF7 SE0012454072 Avanza Bank Sweden 2,893 271.40 SEK Equity 90079.53 4.87
    2 B52J816 KYG014081064 AirTac International Group Taiwan 2,000 1005.00 TWD Equity 70444.75 3.81
    3 B80VKP3 TW0005274005 ASPEED Technology Taiwan 1,000 1725.00 TWD Equity 60456.31 3.27
    4 B28XLF6 DE0005493365 Hypoport Germany 107 452.00 EUR Equity 56842.18 3.07
    5 6510989 KR7012510004 Douzone Bizon Co South Korea 622 98200.00 KRW Equity 53969.87 2.92
    6 BFM1K61 JP3967180005 RakSul Japan 1,100 5160.00 JPY Equity 51366.52 2.78
    7 B03XKH2 JP3105270007 Outsourcing Japan 3,000 1784.00 JPY Equity 48434.39 2.62
    8 BSLTDM4 JP3835870001 Bengo4.com Japan 600 8710.00 JPY Equity 47294.12 2.56
    9 BZ1DZ96 IT0005282865 Reply Spa Italy 353 107.90 EUR Equity 44765.63 2.42
    10 BLN8T44 SE0014781795 ADDTECH Sweden 2,937 130.00 SEK Equity 43804.14 2.37
    Total 30.68%
    Sector Analysis of Total Assets - 3/31/2021

    Fund %

    • 1 Information Technology 33.16
    • 2 Industrials 17.52
    • 3 Financials 15.49
    • 4 Consumer Discretionary 13.22
    • 5 Communication Services 7.55
    • 6 Health Care 5.77
    • 7 Consumer Staples 3.20
    • 8 Real Estate 1.51
    • 9 Materials 0.68
    • 10 Cash 1.89
    • Total 100.0
    Total may not sum due to rounding
    Regional Analysis of Total Assets - 3/31/2021

    Fund %

    • 1 Developed Asia Pacific 33.05
    • 2 Europe (ex UK) 31.83
    • 3 Emerging Markets 18.90
    • 4 UK 11.89
    • 5 North America 2.43
    • 6 Cash 1.89
    • Total 100.0
    Total may not sum due to rounding
    Country Analysis of Total Assets - 3/31/2021

    Fund %

    • 1 Japan 32.06
    • 2 Sweden 12.22
    • 3 UK 11.89
    • 4 Taiwan 10.13
    • 5 Germany 6.94
    • 6 South Korea 6.05
    • 7 Italy 5.88
    • 8 Switzerland 3.28
    • 9 Canada 2.43
    • 10 Israel 2.00
    • 11 Denmark 1.48
    • 12 Belgium 1.09
    • 13 Australia 0.99
    • 14 France 0.94
    • 15 Hong Kong 0.73
    • 16 Cash 1.89
    • Total 100.0
    Total may not sum due to rounding.
    INDUSTRY ANALYSIS OF TOTAL ASSETS - 3/31/2021

    Fund %

    • 1 Semiconductors & Semiconductor Equipment 12.31
    • 2 Capital Markets 10.86
    • 3 Software 8.47
    • 4 IT Services 7.30
    • 5 Machinery 6.63
    • 6 Interactive Media & Services 4.73
    • 7 Trading Companies & Distributors 4.11
    • 8 Diversified Financial Services 4.09
    • 9 Internet & Direct Marketing Retail 3.71
    • 10 Electronic Equipment, Instruments & Components 3.54
    • 11 Household Durables 3.51
    • 12 Commercial Services & Supplies 3.48
    • 13 Professional Services 3.29
    • 14 Leisure Products 2.96
    • 15 Entertainment 2.26
    • 16 Textiles, Apparel & Luxury Goods 2.23
    • 17 Biotechnology 1.71
    • 18 Personal Products 1.59
    • 19 Health Care Equipment & Supplies 1.56
    • 20 Communications Equipment 1.54
    • 21 Real Estate Management & Development 1.51
    • 22 Pharmaceuticals 1.48
    • 23 Food & Staples Retailing 1.10
    • 24 Health Care Technology 1.02
    • 25 Auto Components 0.81
    • 26 Chemicals 0.68
    • 27 Media 0.56
    • 28 Insurance 0.54
    • 29 Food Products 0.51
    • 30 Cash 1.89
    • 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

    Brian Lum (Chair)

    Brian is an Investment Manager in our International Growth Research Team and became a member of the International Growth Portfolio Construction Group in May 2015. He also Chairs our International Smaller Companies Portfolio Construction Group. Brian joined Baillie Gifford in 2006 and initially worked in the North American and Emerging Markets Departments, before spending a number of years focused on investment in smaller companies. He is a CFA Charterholder. Brian graduated MSci and BA (Hons) in Physics from the University of Cambridge in 2006.

    Praveen Kumar

    Praveen joined Baillie Gifford in 2008 and is an Investment Manager in the Japanese Equities Team. He previously worked for FKI Logistex. Praveen graduated BEng in Computer Science from Bangalore University in 2001 and gained an MBA from the University of Cambridge in 2008.

    Milena Mileva

    Milena joined Baillie Gifford in 2009 and is an Investment Manager in the UK Equity Team. She has also been a member of the Pan-European Portfolio Construction Group since 2014. Milena graduated BA in Social & Political Science from the University of Cambridge in 2007 and MPhil in Politics from the University of Oxford in 2009.

    Steve Vaughan

    Steve joined Baillie Gifford in 2012 and is an Investment Manager in the International Smaller Companies Team. He is a CFA Charterholder. Prior to joining Baillie Gifford, Steve was an Officer in the British Army for nine years. He graduated BA (Hons) in Jurisprudence from the University of Oxford in 2001 and MA in International Relations from the University of Exeter in 2012.

    Charlie Broughton

    Charlie joined Baillie Gifford in 2014 and is an Investment Manager in the Smaller Companies Team. He graduated MA (Hons) in Medieval History and Archaeology from the University of St Andrews in 2013. Charlie is a CFA Charterholder.

    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 International Smaller Companies Fund Institutional Class BICIX 0.00000 0.01292 0.00000 0.00000 0.77033 0.78325 12/29/2020 12/29/2020 Final
    Baillie Gifford International Smaller Companies Fund K Class BICKX 0.00000 0.01292 0.00000 0.00000 0.77033 0.78325 12/29/2020 12/29/2020 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).

     

    Full details of the 2020 distribution rates for the Baillie Gifford Funds can be found within the primary ICI File here.

    Risks

    The most significant risks of an investment in the Baillie Gifford International Smaller Companies Fund are Investment Style Risk, Growth Stock Risk, Long-Term Investment Strategy Risk, Japan Risk and Small-and Medium - Capitalization securities 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 Japanese economy has only recently emerged from a long economic downturn. The Japanese economy also faces demographic challenges and its' financial markets can vary widely as a result of natural disasters. The shares of small-and medium -capitalization companies can be more volatile than larger companies. This can be more evident during market downturns as they may have potentially reduced liquidity and shorter operating histories. Other Fund risks include: Asia Risk, China Risk, Conflicts of Interest Risk, Currency Risk, Emerging Markets Risk, Equity Securities Risk, Focused Investment Risk, Geographic Focus Risk, Information Technology Risk, IPO Risk, Liquidity Risk, Market Disruption and Geopolitical Risk, Market Risk, New and Smaller-Sized Funds Risk, Non-U.S. Investment Risk, Service Provider Risk, Settlement Risk, Valuation Risk.

    Index Disclaimer

    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.