Overview
The Baillie Gifford US Discovery Fund seeks capital appreciation.
Investment Proposition
The Baillie Gifford US Discovery Fund invests in a portfolio of 40 – 75 high potential, immature smaller companies in the United States which each strive to disrupt established industries or build entirely new ones. Through bottom-up stock selection, our aim is to identify these companies early on in their development and own them over the long term as they strengthen their competitive edge and grow. We believe that approaching investment with a genuine long-term perspective, accepting a degree of uncertainty and backing robust innovation and entrepreneurial management gives us the best chance of achieving our goal of identifying the companies that have the potential to be the big winners of tomorrow and to capture long term capital appreciation.
Total returns as of month end 6/30/2024Gross Expense Ratio
Net Expense Ratio
1 Month*
3 Months*
YTD*
1 Year
3 Years
Since Inception†
Share Class K 8.08% 0.82% 0.19% 0.56% 3.27% 5.09% -21.08% -17.84% S&P Composite 1500 Index n/a n/a 3.16% 3.66% 14.35% 23.52% 9.44% 10.02% Russell 2500 Growth Index n/a n/a -0.54% -4.22% 3.93% 9.02% -4.12% -2.11% Annualized total returns as of quarter end 6/30/2024Gross Expense Ratio
Net Expense Ratio
1 Year
3 Years
Since Inception†
Share Class K 8.08% 0.82% 5.09% -21.08% -17.84% S&P Composite 1500 Index n/a n/a 23.52% 9.44% 10.02% Russell 2500 Growth Index n/a n/a 9.02% -4.12% -2.11% Source: Bank of New York Mellon and relevant underlying index provider(s).
†Fund inception date: May 05, 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, 2025.
The S&P Composite 1500® combines the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600® indices, to cover approximately 90% of U.S. market capitalization. The Russell 2500™ Growth Index measures the performance of the small to mid-cap growth segment of the US equity universe. It includes those Russell 2500™ companies with higher growth earning potential as defined by FTSE Russell's leading style methodology. These unmanaged indexes do not reflect fees and expenses. The Fund is more concentrated than the indexes shown.
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 6/30/2024Stock Name Contribution % Twist Bioscience Corp 0.51 JFrog Ltd 0.40 Veeco Instruments 0.35 TransMedics Group 0.35 CyberArk Software Ltd 0.30 Aerovironment -0.98 NVIDIA -0.52 Xencor Inc -0.45 Novocure Ltd -0.42 Bandwidth -0.40 Sector Analysis of Total Assets - 6/30/2024Fund % Benchmark % Difference % 1 Information Technology 37.52 30.75 6.77 2 Health Care 29.12 11.56 17.57 3 Industrials 14.18 9.10 5.07 4 Communication Services 6.27 8.77 -2.50 5 Consumer Staples 4.55 5.65 -1.10 6 Consumer Discretionary 2.70 10.31 -7.62 7 Cash 2.47 0.00 2.47 8 Financials 2.40 12.75 -10.35 9 Materials 0.45 2.48 -2.03 10 Real Estate 0.35 2.54 -2.19 11 Utilities 0.00 2.27 -2.27 12 Energy 0.00 3.81 -3.81 Total 100.00 100.00 Total may not sum due to rounding
Regional Analysis of Total Assets - 6/30/2024Fund % Benchmark % Difference % 1 North America 91.65 100.00 -8.35 2 Emerging Markets 5.55 0.00 5.55 3 Cash 2.47 0.00 2.47 4 UK 0.33 0.00 0.33 Total 100.00 100.00 Total may not sum due to rounding
Country Analysis of Total Assets - 6/30/2024Fund % Benchmark % Difference % 1 United States 91.65 100.00 -8.35 2 Israel 5.55 0.00 5.55 3 Cash 2.47 0.00 2.47 4 UK 0.33 0.00 0.33 Total 100.00 100.00 Managers
Svetlana Viteva
Svetlana joined Baillie Gifford in 2012 and is an Investment Manager in the Discovery Investment Team. She is a CFA Charterholder. Svetlana is also a Deputy Manager of our global small cap investment trust, Edinburgh Worldwide Investment Trust. She graduated BA in Economics and BA in Business Administration from the American University in Bulgaria in 2008, MSc in Investment Analysis in 2009 and PhD in Accounting and Finance in 2012, both from the University of Stirling.
Douglas Brodie
Douglas joined Baillie Gifford in 2001 and is Head of the Discovery Investment Team. Douglas became a Partner in 2015 and is a CFA Charterholder. He graduated BSc in Molecular Biology & Biochemistry from the University of Durham in 1997 and attained a DPhil in Molecular Immunology from the University of Oxford in 2001.
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 US Discovery Fund Institutional Class BGUIX 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 12/28/2023 12/28/2023 Final Baillie Gifford US Discovery Fund K Class BGUKX 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 12/28/2023 12/28/2023 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 Mutual Funds can be found here.
Secondary ICI File for the Baillie Gifford Mutual Funds can be found here.
Documents
Financial Reports
Philosophy and Process Documents
Prospectus
Quarterly Investor Reports
Statement of Additional Information (SAI)
Summary Prospectus
Risks
The most significant risks of an investment in the Baillie Gifford US Discovery Fund are Small- and Medium- Capitalization Securities Risk, Growth Stock Risk, Investment Style Risk, Long-Term Investment Strategy Risk and Geographic Focus Risk. 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 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 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 focuses on investments in the US, meaning it may offer less diversification and be more volatile than other funds. Other Fund risks include: Conflicts of Interest Risk, Equity Securities Risk, Environmental, Social and Governance Risk, Focused Investment 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 and Valuation Risk.
Index Disclaimer
Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2020. FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is/are a trade mark(s) of the relevant LSE Group companies and is/are used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.”
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.
