Baillie Gifford International Smaller Companies Fund
Baillie Gifford International Smaller Companies Fund
The Baillie Gifford International Smaller Companies Fund seeks capital appreciation.
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** 2/28/2023
Gross Expense Ratio
Net Expense Ratio
Share Class K 0.73% 7.11% 10.84% -39.20% -1.28% 4.88% 1.84% 0.90% MSCI ACWI ex-USA Small Cap Index -2.54% 4.71% 4.49% -19.56% 1.50% 6.30% 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 19, 2018
Share Class launch date: December 19, 2018
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 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, 2023.
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.
Stock Level Attribution
Top and bottom 5 relative contributors
One month to 2/28/2023
Stock Name Contribution % Global UniChip 1.68 Avanza Bank Holding 0.82 ASPEED Technology 0.59 Addtech 'B' 0.43 Victoria 0.39 Katitas -0.32 Infomart Corp -0.25 Koh Young Technology -0.14 Johnson Electric Holdings -0.12 Bengo4.Com Inc -0.11Sector Analysis of Total Assets - 2/28/2023 Fund % Benchmark % Difference % 1 Information Technology 37.03 11.06 25.97 2 Communication Services 7.34 3.77 3.57 3 Financials 14.72 11.28 3.44 4 Cash 2.30 0.00 2.30 5 Consumer Discretionary 13.38 11.52 1.87 6 Health Care 4.10 6.93 -2.83 7 Utilities 0.00 3.31 -3.31 8 Industrials 17.02 20.68 -3.66 9 Energy 0.00 4.07 -4.07 10 Consumer Staples 1.62 6.07 -4.45 11 Real Estate 1.63 9.57 -7.95 12 Materials 0.86 11.75 -10.88 Total 100.00 100.00
Total may not sum due to roundingRegional Analysis of Total Assets - 2/28/2023
Fund % Benchmark % Difference % 1 Europe (ex UK) 35.11 26.27 8.84 2 Cash 2.30 0.00 2.30 3 UK 11.46 10.14 1.32 4 North America 4.03 7.24 -3.22 5 Developed Asia Pacific 27.33 30.61 -3.28 6 Emerging Markets 19.78 25.74 -5.96 Total 100.00 100.00
Total may not sum due to roundingCountry Analysis of Total Assets - 2/28/2023
Fund % Benchmark % Difference % 1 Taiwan 14.36 5.54 8.82 2 Sweden 12.34 4.00 8.34 3 Japan 24.60 20.39 4.21 4 Italy 6.40 2.36 4.04 5 Cash 2.30 0.00 2.30 6 Switzerland 5.48 3.18 2.30 7 Germany 5.10 3.33 1.77 8 Channel Islands, IoM 0.93 0.00 0.93 9 Israel 2.33 1.62 0.72 10 South Korea 4.23 3.69 0.54 11 UK 10.53 10.14 0.39 12 Belgium 1.20 1.03 0.17 13 Hungary 0.00 0.01 -0.01 14 Czech Republic 0.00 0.02 -0.02 15 Colombia 0.00 0.03 -0.03 16 Egypt 0.00 0.06 -0.06 17 Ireland 0.00 0.17 -0.17 18 Greece 0.00 0.18 -0.18 19 Portugal 0.00 0.20 -0.20 20 United Arab Emirates 0.00 0.20 -0.20 21 Chile 0.00 0.21 -0.21 22 Qatar 0.00 0.24 -0.24 23 Kuwait 0.00 0.29 -0.29 24 Poland 0.00 0.29 -0.29 25 Philippines 0.00 0.30 -0.30 26 New Zealand 0.52 0.84 -0.32 27 Denmark 1.07 1.45 -0.37 28 Turkey 0.00 0.49 -0.49 29 Hong Kong 0.89 1.43 -0.54 30 Mexico 0.00 0.63 -0.63 31 Indonesia 0.00 0.68 -0.68 32 Austria 0.00 0.69 -0.69 33 Malaysia 0.00 0.75 -0.75 34 Saudi Arabia 0.00 0.82 -0.82 35 Finland 0.27 1.12 -0.85 36 South Africa 0.00 0.92 -0.92 37 Thailand 0.00 1.03 -1.03 38 Netherlands 0.00 1.34 -1.34 39 Brazil 0.00 1.37 -1.37 40 Spain 0.00 1.38 -1.38 41 Singapore 0.00 1.38 -1.38 42 Norway 0.00 1.60 -1.60 43 France 0.92 2.62 -1.70 44 China 0.00 2.58 -2.58 45 Canada 4.03 7.24 -3.22 46 India 1.04 5.60 -4.55 47 Australia 1.47 6.57 -5.11 Total 100.00 100.00
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.
Brian Lum (Chair)
Brian joined Baillie Gifford in 2006. Brian is the head of our Smaller Companies team and chairs the International Smaller Companies Portfolio Construction Group. In addition, Brian has also been a member of the International Growth Portfolio Construction Group since May 2015. Brian is a CFA Charterholder and graduated MSci and BA (Hons) in Physics from the University of Cambridge in 2006.
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.
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 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.
Remya joined Baillie Gifford in 2018 and is an Investment Analyst on the Pan European Small Cap Portfolio Construction Group. She graduated MSc (Hons) in International Development Management in 2018, and previously BSc (Dual Hons) in Social Policy and Sociology in 2017, from the London School of Economics.
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 International Smaller Companies Fund Institutional Class BICIX 0.01288 0.00000 0.01288 0.02291 0.00000 0.01288 12/28/2022 12/28/2022 Final Baillie Gifford International Smaller Companies Fund K Class BICKX 0.01768 0.00000 0.01768 0.02291 0.00000 0.01768 12/28/2022 12/28/2022 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 International Smaller Companies Fund are Investment Style Risk, Small-and Medium Capitalization Securities Risk, Growth Stock Risk, Long-Term Investment Strategy Risk, Asia 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 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. 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. 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, Environmental, Social and Governance Risk, Focused Investment Risk, Geographic Focus Risk, Government and Regulatory Risk, Information Technology Risk, Initial Public Offering 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.
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.