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** 12/31/2021

    1 Month*

    3 Months*

    1 Year

    3 Years

    Since Inception†

    Gross Expense Ratio

    Net Expense Ratio

    Share Class K2.34%2.23%6.49%26.06%25.54%17.20%0.90%
    MSCI ACWI ex-USA Small Cap Index4.27%0.70%13.36%16.89%16.52%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 December 31 2021, 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 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.


    The Fund’s high returns during 2020 were in part due to unusual market conditions caused by the Coronavirus pandemic which benefitted a number of existing holdings in the Fund’s portfolio. These companies saw faster than expected growth as a result of early adoption by people of some technologies and services. That rate of growth is unlikely to be repeated in normal market conditions. The Fund’s investment horizon spans several years so periods of short-term volatility should be expected.

    Annualized total returns as of month end** 12/31/2021

    1 Month*

    3 Months*

    1 Year

    3 Years

    Since Inception†

    Gross Expense Ratio

    Net Expense Ratio

    Share Class Institutional2.33%2.27%6.48%26.06%25.53%17.20%0.90%
    MSCI ACWI ex-USA Small Cap Index4.27%0.70%13.36%16.89%16.52%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 December 31 2021, 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 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.


    The Fund’s high returns during 2020 were in part due to unusual market conditions caused by the Coronavirus pandemic which benefitted a number of existing holdings in the Fund’s portfolio. These companies saw faster than expected growth as a result of early adoption by people of some technologies and services. That rate of growth is unlikely to be repeated in normal market conditions. The Fund’s investment horizon spans several years so periods of short-term volatility should be expected.

    Holdings 12/31/2021

    SEDOL ISIN Company Country Holding Asset Price Currency Asset Type Market Value (USD) Fund %
    1 BJXMLF7 SE0012454072 Avanza Bank Sweden 74,458 332.20 SEK Equity 2731981.16 4.80
    2 B80VKP3 TW0005274005 ASPEED Technology Taiwan 18,000 3565.00 TWD Equity 2319369.65 4.07
    3 B52J816 KYG014081064 AirTac International Group Taiwan 58,229 1020.00 TWD Equity 2146730.04 3.77
    4 BZ1DZ96 IT0005282865 Reply Spa Italy 10,235 178.70 EUR Equity 2079932.06 3.65
    5 BLN8T44 SE0014781795 ADDTECH Sweden 85,550 216.00 SEK Equity 2040988.09 3.58
    6 B7K6D18 IT0004764699 Brunello Cucinelli Italy 27,643 60.70 EUR Equity 1908141.67 3.35
    7 B28XLF6 DE0005493365 Hypoport Germany 3,125 511.00 EUR Equity 1815965.83 3.19
    8 BFM1K61 JP3967180005 RakSul Japan 33,200 5680.00 JPY Equity 1637584.13 2.87
    9 6123923 JP3920860008 Megachips Japan 34,900 5150.00 JPY Equity 1560809.34 2.74
    10 B034DS7 IL0010910656 Maytronics Israel 58,066 76.80 ILS Equity 1432807.09 2.52
    Total 34.53%
    Sector Analysis of Total Assets - 12/31/2021

    Fund %

    • 1 Information Technology 36.13
    • 2 Financials 16.31
    • 3 Industrials 16.04
    • 4 Consumer Discretionary 12.75
    • 5 Communication Services 6.59
    • 6 Health Care 5.32
    • 7 Consumer Staples 2.94
    • 8 Real Estate 2.20
    • 9 Materials 0.70
    • 10 Cash 1.01
    • Total 100.0
    Total may not sum due to rounding
    Regional Analysis of Total Assets - 12/31/2021

    Fund %

    • 1 Europe (ex UK) 34.03
    • 2 Developed Asia Pacific 30.47
    • 3 Emerging Markets 17.75
    • 4 UK 12.87
    • 5 North America 3.87
    • 6 Cash 1.01
    • Total 100.0
    Total may not sum due to rounding
    Country Analysis of Total Assets - 12/31/2021

    Fund %

    • 1 Japan 25.62
    • 2 Sweden 13.57
    • 3 Taiwan 12.15
    • 4 UK 12.12
    • 5 Italy 8.04
    • 6 Germany 4.87
    • 7 South Korea 4.81
    • 8 Switzerland 4.41
    • 9 Canada 3.87
    • 10 Israel 2.52
    • 11 Australia 1.43
    • 12 Denmark 1.32
    • 13 Hong Kong 1.24
    • 14 Belgium 1.01
    • 15 France 0.81
    • 16 Channel Islands, IoM 0.74
    • 17 India 0.47
    • 18 Cash 1.01
    • Total 100.0
    Total may not sum due to rounding.
    INDUSTRY ANALYSIS OF TOTAL ASSETS - 3/31/2021

    Fund %

    • 1 Semiconductors & Semiconductor Equipment 12.69
    • 2 Capital Markets 10.45
    • 3 Software 8.79
    • 4 IT Services 7.30
    • 5 Machinery 6.54
    • 6 Electronic Equipment, Instruments & Components 5.25
    • 7 Trading Companies & Distributors 5.17
    • 8 Diversified Financial Services 4.98
    • 9 Household Durables 4.53
    • 10 Interactive Media & Services 3.86
    • 11 Commercial Services & Supplies 3.35
    • 12 Textiles, Apparel & Luxury Goods 3.35
    • 13 Leisure Products 2.65
    • 14 Entertainment 2.34
    • 15 Real Estate Management & Development 2.20
    • 16 Communications Equipment 2.10
    • 17 Health Care Equipment & Supplies 1.56
    • 18 Health Care Technology 1.39
    • 19 Pharmaceuticals 1.32
    • 20 Auto Components 1.18
    • 21 Biotechnology 1.06
    • 22 Internet & Direct Marketing Retail 1.04
    • 23 Food & Staples Retailing 1.03
    • 24 Personal Products 0.99
    • 25 Professional Services 0.98
    • 26 Food Products 0.92
    • 27 Chemicals 0.70
    • 28 Consumer Finance 0.47
    • 29 Insurance 0.40
    • 30 Media 0.39
    • 31 Cash 1.01
    • 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 0.00752 0.00420 0.00752 0.00621 0.06150 0.07322 12/29/2021 12/29/2021 Final
    Baillie Gifford International Smaller Companies Fund K Class BICKX 0.00973 0.00420 0.00973 0.00621 0.06150 0.07543 12/29/2021 12/29/2021 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 2021 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, Asia Risk, Small-and Medium Capitalization Securities 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. 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. 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. 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: Conflicts of Interest Risk, Currency Risk, Emerging Markets Risk, Equity Securities Risk, Focused Investment Risk, Geographic Focus Risk, Government and Regulatory Risk, Information Technology Risk, IPO Risk, Japan Risk, Liquidity Risk, Market Disruption and Geopolitical Risk, Market Risk, New and Smaller-Sized Funds Risks, Servicer Provider Risk, Settlement 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. 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.