1. 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.

    Annualized total returns as of month end** 5/31/2022

    1 Month*

    3 Months*

    YTD*

    Since Inception*†

    Gross Expense Ratio

    Net Expense Ratio

    Share Class K-9.55%-26.10%-39.70%-28.25%9.87%0.82%
    Russell 2500 Growth Index-2.43%-12.95%-24.20%-10.10%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 2022, periods over 1 year are annualised.

    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, 2023.

     

    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. The Fund is more concentrated than the Russell 2500 Growth Index.

    Discrete performance figures to 12/31/2021

    12/31/2016
    12/31/2017

    12/31/2017
    12/31/2018

    12/31/2018
    12/31/2019

    12/31/2019
    12/31/2020

    12/31/2020
    12/31/2021

    Share Class K
    Russell 2500 Growth Index

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

    The fund's benchmark changed on May 1, 2020. Performance is being shown against the new benchmark.

    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 April 28, 2017. Prior to that date returns are calculated based on the oldest share class of the Fund adjusted to reflect the K share class fees where these fees are higher.

     

    The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the US equity universe. It includes Russell 1000 companies with higher forecasted growth values. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Fund is more concentrated than the Russell 1000 Growth Index.

    Annualized total returns as of month end** 3/31/2022

    **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 September 30 2021, periods over 1 year are annualised.

    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, 2023.

     

    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. The Fund is more concentrated than the Russell 2500 Growth Index.

    Annualized total returns as of month end** 5/31/2022

    1 Month*

    3 Months*

    YTD*

    Since Inception*†

    Gross Expense Ratio

    Net Expense Ratio

    Share Class Institutional-9.72%-26.24%-39.82%-28.25%9.87%0.82%
    Russell 2500 Growth Index-2.43%-12.95%-24.20%-10.10%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 2022, periods over 1 year are annualised.

    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, 2022.

     

    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. The Fund is more concentrated than the Russell 2500 Growth Index.

    Discrete performance figures to 12/31/2021

    12/31/2016
    12/31/2017

    12/31/2017
    12/31/2018

    12/31/2018
    12/31/2019

    12/31/2019
    12/31/2020

    12/31/2020
    12/31/2021

    Share Class Institutional
    Russell 2500 Growth Index

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

    The fund's benchmark changed on May 1, 2020. Performance is being shown against the new benchmark.

    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 Institutional share class from April 28, 2017. Prior to that date returns are calculated based on the oldest share class of the Fund adjusted to reflect the Institutional share class fees where these fees are higher.

      

    The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the US equity universe. It includes Russell 1000 companies with higher forecasted growth values. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Fund is more concentrated than the Russell 1000 Growth Index.

    Sector Analysis of Total Assets - 3/31/2022

    Fund %

    • 1 Technology 47.20
    • 2 Health Care 30.35
    • 3 Industrials 7.12
    • 4 Consumer Discretionary 5.94
    • 5 Financials 4.74
    • 6 Consumer Staples 1.59
    • 7 Telecommunications 0.87
    • 8 Real Estate 0.74
    • 9 Cash 1.44
    • Total 100.0

    Total may not sum due to rounding

    Regional Analysis of Total Assets - 3/31/2022

    Fund %

    • 1 North America 92.57
    • 2 Emerging Markets 5.45
    • 3 UK 0.53
    • 4 Cash 1.44
    • Total 100.0

    Total may not sum due to rounding

    Country Analysis of Total Assets - 3/31/2022

    Fund %

    • 1 United States 92.57
    • 2 Israel 5.45
    • 3 UK 0.53
    • 4 Cash 1.44
    • Total 100.0
    Industry Analysis of Total Assets -

    Fund %

    • 1 Software and Computer Services 37.01
    • 2 Pharmaceuticals and Biotechnology 13.90
    • 3 Medical Equipment and Services 12.75
    • 4 Technology Hardware and Equipment 10.19
    • 5 Aerospace and Defense 5.78
    • 6 Health Care Providers 3.71
    • 7 Life Insurance 3.11
    • 8 Media 1.98
    • 9 Household Goods and Home Construction 1.74
    • 10 Finance and Credit Services 1.63
    • 11 Food Producers 1.59
    • 12 Consumer Services 1.57
    • 13 Industrial Support Services 1.34
    • 14 Telecommunications Equipment 0.87
    • 15 Real Estate Investment and Services 0.74
    • 16 Retailers 0.65
    • 17 Cash 1.44
    • Total 100.0

    Total may not sum due to rounding

    Holdings 3/31/2022

    SEDOL ISIN Company Country Holding Asset Price Currency Asset Type Market Value (USD) Fund %
    1 BHLNZ89 US82489T1043 ShockWave Medical United States 783 207.36 USD Equity 162362.88 3.93
    2 BQT3XY6 IL0011334468 CyberArk Israel 890 168.75 USD Equity 150187.50 3.64
    3 BKTNTS0 US85209W1099 Sprout Social United States 1,847 80.12 USD Equity 147981.64 3.59
    4 BDT5S35 US05464C1018 Axon Enterprise United States 996 137.73 USD Equity 137179.08 3.32
    5 B5LL2C2 US1920051067 Codexis United States 6,587 20.62 USD Equity 135823.94 3.29
    6 BFXZB14 US98983V1061 Zuora United States 8,772 14.98 USD Equity 131404.56 3.18
    7 B3X26D8 US6951271005 Pacira BioSciences United States 1,691 76.32 USD Equity 129057.12 3.13
    8 BP3YM85 US8982021060 Trupanion United States 1,439 89.12 USD Equity 128243.68 3.11
    9 BGLN838 US53815P1084 LiveRamp United States 3,018 37.39 USD Equity 112843.02 2.73
    10 B7KH3G6 KYG037AX1015 Ambarella United States 1,057 104.92 USD Equity 110900.44 2.69
    Total 32.62%

    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 0.01866 0.00000 0.00000 0.00000 0.01866 12/29/2021 12/29/2021 Final
    Baillie Gifford US Discovery Fund BGUKX 0.00000 0.01866 0.00000 0.00000 0.00000 0.01866 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 US Discovery Fund are Small- and Medium- Capitalization Securities Risk, Growth Stock Risk, Investment Style Risk, Long-Term Investment Strategy Risk, Geographic Focus Risk and Non-Diversification 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. The Fund may have a smaller number of holdings with larger positions in each relative to other mutual 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.

    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: 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.