Baillie Gifford Funds NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-10145

Baillie Gifford Funds
(Exact name of registrant as specified in charter)

1 Greenside Row Edinburgh, Scotland, UK					EH1 3AN
(Address of principal executive offices)					(Zip code)

Gareth Griffiths 1 Greenside Row Edinburgh, Scotland, UK, EH1 3AN
(Name and address of agent for service)

Registrant’s telephone number, including area code:				011-44-131-275-2000

Date of fiscal year end:	December 31

Date of reporting period:		December 31, 2017

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

BAILLIE GIFFORD FUNDS

EAFE Fund

EAFE Choice Fund

EAFE Pure Fund

Emerging Markets Fund

Global Alpha Equity Fund

Global Select Equity Fund

International Concentrated Growth Fund

International Equity Fund

Long Term Global Growth Equity Fund

Positive Change Equity Fund

U.S. Equity Growth Fund

International Choice Fund

Annual Report

December 31, 2017

Index

Page Number
	01	Management Discussion
	21	Fund Expenses
		EAFE Fund
	28	Industry Diversification Table
	29	Portfolio of Investments
	34	Statement of Assets and Liabilities
	35	Statement of Operations
	36	Statements of Changes in Net Assets
		Financial Highlights
	38	Selected Data for Class 2
	39	Selected Data for Class 3
	40	Selected Data for Class 4
	41	Selected Data for Class 5
	42	Selected Data for Class K
	43	Selected Data for Institutional Class
		EAFE Choice Fund
	44	Industry Diversification Table
	46	Portfolio of Investments
	51	Statement of Assets and Liabilities
	52	Statement of Operations
	53	Statements of Changes in Net Assets
		Financial Highlights
	54	Selected Data for Class 2
	55	Selected Data for Class 3
	56	Selected Data for Class K
	57	Selected Data for Institutional Class
		EAFE Pure Fund
	58	Industry Diversification Table
	59	Portfolio of Investments
	63	Statement of Assets and Liabilities
	64	Statement of Operations
	65	Statements of Changes in Net Assets
		Financial Highlights
	66	Selected Data for Class 2
	67	Selected Data for Class 3
	68	Selected Data for Class K
	69	Selected Data for Institutional Class
		Emerging Markets Fund
	70	Industry Diversification Table
	71	Portfolio of Investments
	76	Statement of Assets and Liabilities
	77	Statement of Operations
	78	Statements of Changes in Net Assets
		Financial Highlights
	80	Selected Data for Class 2
	81	Selected Data for Class 3
	82	Selected Data for Class 5
	83	Selected Data for Class K
	84	Selected Data for Institutional Class
		Global Alpha Equity Fund
	85	Industry Diversification Table
	87	Portfolio of Investments
	93	Statement of Assets and Liabilities
	94	Statement of Operations
	95	Statements of Changes in Net Assets
		Financial Highlights
	97	Selected Data for Class 2
	98	Selected Data for Class 3
	99	Selected Data for Class 4
	100	Selected Data for Class K
	101	Selected Data for Institutional Class
		Global Select Equity Fund
	102	Industry Diversification Table
	104	Portfolio of Investments
	109	Statement of Assets and Liabilities
	110	Statement of Operations
	111	Statements of Changes in Net Assets
		Financial Highlights
	112	Selected Data for Class K
	113	Selected Data for Institutional Class
		International Concentrated Growth Fund
	114	Industry Diversification Table
	115	Portfolio of Investments
	118	Statement of Assets and Liabilities

Page Number
	119	Statement of Operations
	120	Statements of Changes in Net Assets
		Financial Highlights
	121	Selected Data for Class K
	122	Selected Data for Institutional Class
		International Equity Fund
	123	Industry Diversification Table
	125	Portfolio of Investments
	131	Statement of Assets and Liabilities
	132	Statement of Operations
	133	Statements of Changes in Net Assets
		Financial Highlights
	135	Selected Data for Class 2
	136	Selected Data for Class 3
	137	Selected Data for Class 4
	138	Selected Data for Class 5
	139	Selected Data for Class K
	140	Selected Data for Institutional Class
		Long Term Global Growth Equity Fund
	141	Industry Diversification Table
	142	Portfolio of Investments
	145	Statement of Assets and Liabilities
	146	Statement of Operations
	147	Statements of Changes in Net Assets
		Financial Highlights
	148	Selected Data for Class 2
	149	Selected Data for Class 4
	150	Selected Data for Class K
	151	Selected Data for Institutional Class
		Positive Change Equity Fund
	152	Industry Diversification Table
	153	Portfolio of Investments
	156	Statement of Assets and Liabilities
	157	Statement of Operations
	158	Statements of Changes in Net Assets
		Financial Highlights
	159	Selected Data for Class K
	160	Selected Data for Institutional Class
		U.S. Equity Growth Fund
	161	Industry Diversification Table
	162	Portfolio of Investments
	164	Statement of Assets and Liabilities
	165	Statement of Operations
	166	Statements of Changes in Net Assets
		Financial Highlights
	167	Selected Data for Class K
	168	Selected Data for Institutional Class
		International Choice Fund
	169	Industry Diversification Table
	171	Portfolio of Investments
	176	Statement of Assets and Liabilities
	177	Statement of Operations
	178	Statements of Changes in Net Assets
		Financial Highlights
	179	Selected Data for Class 2
	180	Selected Data for Class 3
	181	Selected Data for Class 4
	182	Notes to Financial Statements
	210	Report of Independent Registered Public Accounting Firm
		Supplemental Information
	211	Federal Income Tax Information
	213	Management of the Trust
	215	Board Considerations Regarding New Funds' Advisory Agreement Approval

Management Discussion (unaudited)

Annual Report December 31, 2017

EAFE Fund

Market Conditions and review of performance during 2017

International equity markets enjoyed a very strong year with the MSCI EAFE index producing a return of 25.62% and the EAFE Fund returning 46.09% for class 2 shares. This is an impressive return by any standards. Equity markets have been underpinned by improving global growth, accommodative central banks, and strong corporate operating performance. While the political backdrop retains the capability to cause periodic disruptions to markets, the growth opportunities available around the world remain abundant.

We invest for the Fund in companies that we believe can grow significantly faster than the market for many years, possibly decades. These opportunities are quite rare, and owning them requires patience. But we think it pays to back our convictions, so the Fund has become a little more concentrated over the last 12 months. We need to be supportive long-term shareholders and encourage great growth-oriented companies to put long-term goals before the market's obsession with short-term targets.

A new breed of company has emerged in recent years that has little need of capital and benefits from the effects of having a large network. For example, in Tencent and Alibaba, we own companies that exemplify these traits and are now capable of dominating across different parts of the economy. Although these companies have contributed well to returns over many years, we believe the prospects for patient shareholders remain good. Both Tencent and Alibaba contributed to a notably strong period of performance for the Fund. Stock selection was the key driver of relative performance and these two Chinese internet companies were significant contributors, once again thanks to strong operating fundamentals.

In Tencent's case, the most recent set of results saw revenue growth accelerate from the mid 50s to over 60% year on year. Smartphone games were the key driver, based on the huge popularity of games such as Honour of Kings. Elsewhere, the WeChat app continues to grow the number of active users, and interestingly is being used as a payment option in physical stores three times as often as this time last year. And its YouTube equivalent, Tencent Video, now has the largest paying subscriber base of any video streaming service.

Alibaba too is achieving the feat of generating accelerating revenue growth from an already high base,

at very similar rates to Tencent. The core e-commerce business goes from strength to strength. Its 'Singles Day' event on November 11^th lived up to its reputation as the world's biggest twenty-four hour shopping event, with a 39% increase in sales over the same period in 2016.

Luxury car manufacturer Ferrari also performed exceptionally well. The company has been liberated following the spin off from Fiat Chrysler Automobiles, and the share price has responded to strong performance in both volumes and margins. The company has set out a long-term growth plan, with the intention of increasing annual sales from 8,000 to 14,000 cars per year.

Amongst the negative contributors were Spanish based global retailer Inditex, Swedish bank Svenska Handelsbanken and Japanese e-commerce stock Rakuten. The share price of the first two actually rose over the year, but simply lagged a strong index, while Rakuten's share price saw a single digit decline.

Inditex, the owner of the Zara retail chain, is a remarkable company with strong growth prospects as its 'fast fashion' model remains attractive around the globe, both offline and online. In the shorter term, however, it has been facing some currency headwinds. Svenska Handelsbanken has underperformed despite very stable profitability and robust capital ratios. Return on equity in its core domestic market sits at the mid-teens level, for example. This is a conservatively run bank however, and it has typically been more in favour during periods of higher volatility. We remain admirers of its distinctive business model. Rakuten meanwhile has delivered generally insipid results. Most recently, gross merchandise volume in the domestic ecommerce business grew 14%, which was at the low end of expectations. In the Fintech segment, top line growth was solid, but there were increased costs associated with the introduction of new systems in the Rakuten Card business. More recently, some sell side analysts have been worrying about the potential costs associated with the company's reported intention to acquire domestic telecoms wireless spectrum. We watch with interest to see if CEO Mikitani can execute with what he calls 'last mobile carrier advantage', given that they have little of the legacy baggage of incumbent wireless providers.

Investment Strategies used to manage the Fund

The investment strategy remains unchanged. The Fund invests in growth stocks based on bottom-up company analysis. In determining the potential of a company, we

Management Discussion (unaudited)

Annual Report December 31, 2017

analyse industry background, competitive advantage, management attitudes, financial strength, and valuation. We also consider whether we have a different view from the wider market. We think that the market, in general, is too short term and inward looking. Our ability to add value is derived from having a much longer time horizon and from our differentiated sources of information.

Annual turnover in the fund was 9% last year, which implies a typical holding period of over seven years. We believe that our ability to be patient, and our reputation as a long-term investor, allows us to develop much deeper relationships with management teams and to have more meaningful conversations with company leaders. Additionally, when formulating an investment opinion we

pay little heed to broker research, preferring to listen to alternative voices such as academia, authors, and independent experts.

Trading over the period

Our new buy and complete sale decisions, which are a result of our bottom up stock research are listed below:

New Buys:

Delivery Hero, Nidec, Umicore, Wix.Com

Complete Sales:

Aggreko, Celltrion, JD.Com, NAVER, Novo Nordisk

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			% p.a. Five Year			Since Inception % p.a. (March 6, 2008)
EAFE Fund Class 2*		46.09	%		11.44	%		6.25	%
MSCI EAFE Index		25.62	%		8.39	%		3.48	%

* The returns for Class 2 shares have been provided. One-year return figures for the other share classes are as follows: 46.20% for Class 3, 46.24% for Class 4, 46.31% for Class 5, 22.62% for Class K and 22.62% for Institutional Class, returns for Class K and Institutional Class are from Class inception date 04/28/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class 2 share and the index.

Past performance does not predict future performance. The graph and the table above do not reflect the deduction of taxes that a shareholder would pay on the Fund distributions or redemption of Fund shares.

Management Discussion (unaudited)

Annual Report December 31, 2017

EAFE Choice Fund

Market Conditions and Review of Performance during 2017

The past year once again demonstrated our belief that it is very difficult to predict short term market outcomes, and therefore not worthwhile trying to do so. As we reflect on 2017 and look forward to the future we continue to focus on the individual companies and the long term investment opportunities they present in international equity markets. This is not always an easy endeavour but we think it remains a very worthwhile one and one that will become increasingly so as the world changes around us at an ever faster rate. For those prepared to think optimistically about the long term it could be argued that there has seldom been a more exciting time, as new technologies enable the creation of new business models and set on course structural growth trends that could play out over decades. From ecommerce to artificial intelligence, electric vehicles to personalised medicine, the prizes for the winners could be vast, and the disruption for the losers catastrophic.

After three years of lacklustre returns, 2017 delivered a more encouraging year in international equity markets. The MSCI EAFE index returned 25.62% for the year as a whole, with returns for the Fund meaningfully ahead of this at 31.28% for class 2 shares.

Your portfolio's performance continues to be driven by stock selection rather than thematic or sector views; exactly as we would expect given our bottom-up stock picking approach to investment. Over the last year this has been particularly notable in the Consumer Staples and Healthcare sectors. Whilst both sectors have lagged behind the broader market at the index level, your holdings have contributed strongly to your portfolio's performance.

A number of technology innovators and enablers contributed favourably to performance over the past year. Continued robust operational delivery from companies such as Australian hearing implant manufacturer Cochlear, SMC — the Japanese factory automation component manufacturer, and Hargreaves Lansdown — the UK online savings platform have been strongly supportive to performance.

Over the year, the main detractors included Japanese manufacturer of bicycle components Shimano, Australian pallet pool operator Brambles, and UK online vehicle retail platform Auto Trader. Shimano has downgraded its

earnings forecasts; we believe that this reflects weakness in the overall bicycle market rather than a loss of share or competitiveness at the company itself. Brambles has seen challenges in its US business, where its main competitor has been pricing more aggressively, and where cheaper 'white wood' pallets have become more prevalent. Auto Trader's weakness reflects some cyclical concerns about the market for both new and used cars following the recent challenges in the diesel market.

The Fund holdings continue to offer exposure to a range of growing consumer franchises across the globe. This includes those such as luxury goods company Richemont, where centuries of history and heritage create a barrier to entry, to those such as online fashion retailer Zalando that are disrupting the established order in industries where an attachment to the past could prove a terminal disadvantage. With structural growth opportunities such as those highlighted above, and worldwide economic indicators looking as encouraging as at any time in recent years, there would appear to be plenty of reason to enter 2018 with an optimistic outlook. We believe that the Fund holds some of the most interesting growth companies across international markets, steered by high quality management teams, and we see the long-term opportunity for growth in these businesses as being undervalued by the short-term market valuations attached to them.

Investment Strategies used to manage the Fund

Baillie Gifford is a growth manager with a bottom-up approach to stock picking. Bottom-up investing is an investment approach that focuses on the analysis of individual stocks and deemphasizes the significant of economic cycles and market cycles. We aim to invest in companies that will generate sustainable earnings growth above the market over the long-term. In determining the potential of a company, we analyze industry background, competitive advantages, management capabilities, financial strength and valuation. From the outset, we also consider aspects which may derail the investment case and revisit the thesis for the Fund's holdings on a regular basis to ensure that our expectations are being met. The International Focus Portfolio Construction Group is responsible for the overall strategy and stock selection process. It meets regularly to discuss both buy and sell ideas and the level of conviction for existing holdings. Ongoing monitoring of the long-term prospects for the Fund's holdings enables appropriate changes to be made where applicable.

Management Discussion (unaudited)

Annual Report December 31, 2017

Trading over the period

Our new buy and complete sale decisions, which are a result of our bottom up stock research are listed below:

New Buys:

AIA, ASML, Advantest, MakeMyTrip, Raia Drogasil, Sartorius, Softbank, U-Blox

Complete Sales:

Asahi, Imagination Technologies, Pax Global Technology, Roche, Samsung Fire & Marine Insurance, Swatch, Unilever

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			% p.a. Five Year			Since Inception % p.a. (December 17, 2009)
EAFE Choice Fund Class 2*		31.28	%		9.38	%		8.94	%
MSCI EAFE Index		25.62	%		8.39	%		6.98	%

* The returns for Class 2 shares have been provided. One-year return figures for the other share classes are as follows: 31.37% for Class 3, 15.63% for Class K and 15.68% for Institutional Class, returns for Class K and Institutional Class are from Class inception date 04/28/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class 2 share and the index.

Management Discussion (unaudited)

Annual Report December 31, 2017

EAFE Pure Fund

Market Conditions and Review of Performance during 2017

Investment Strategies used to manage the Fund

Management Discussion (unaudited)

Annual Report December 31, 2017

Trading over the period

Our new buy and complete sale decisions, which are a result of our bottom up stock research are listed below:

New Buys:

AIA, ASML, Advantest, Sartorius, Softbank, U-Blox

Complete Sales:

Asahi, Imagination Technologies, Roche, Swatch, Unilever

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			Since Inception % p.a. (April 15, 2014)
EAFE Pure Fund Class 2*		28.59	%		6.54	%
MSCI EAFE Index		25.62	%		5.57	%

* The returns for Class 2 shares have been provided. One-year return figures for the other share classes are as follows: 18.25% for Class 3 return for Class 3 is from inception date of 03/24/2017, 14.39% for Class K, and 14.39% for Institutional Class, returns for Class K and Institutional Class are from Class inception date 04/28/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class 2 share and the index.

Management Discussion (unaudited)

Annual Report December 31, 2017

Emerging Markets Fund

Market Conditions and Review of Performance during 2017

We conclude 2017 in a positive vein, happy that the strong operational performance exhibited by many companies in the portfolio has been well rewarded by the market. However, with a weak 2016 still relatively fresh in mind, we remind ourselves that short term volatility is a prerequisite in the pursuit of long term returns in the Emerging Markets Fund, and ask shareholders to continue to judge performance over 3-5 years and beyond, which is the investment horizon of the fund.

The conditions for EM investors have been strong and sentiment to the asset class has significantly improved as a result: relatively stable commodities and EM currencies, combined with a strong global growth tailwind are very appealing conditions for US$ based EM equity investors.

The way we operate remains unchanged. There have been no changes to the investment managers running the fund and no change to our investment beliefs. We continue to seek out companies that we believe can double their earnings over five years and have faith that returns will follow.

Over 2017, the portfolio returned 53.25% for class 5 shares in US$ terms, significantly more than the MSCI EM index, which returned 37.75%. Many technology companies continued to perform well both operationally and in share price terms. Tencent and Alibaba were all amongst the leading lights. Both continue to display operational excellence within their core businesses of gaming and ecommerce, as well as in other 'non-core' operations.

Amongst this year's detractors were a number of stocks where further patience will be required. Cemex continues its slow deleveraging but cement remains a business with a unique attraction; it is heavy, but relatively low cost, making it uneconomic to transport long distances. It therefore lends itself to local and regional monopoly pricing. Magnit, the Russian convenience store retailer, has spent much of the year investing in a total refurbishment of its stores. This has crimped margins and sales in the short term, but should lead to a significant uplift in profitability when completed.

The improved prevailing conditions across Emerging Markets do mean that the number of attractive opportunities across the region has increased, in our view. This has meant that whilst we retain enthusiasm for many

of the structural growth stories in the Fund, the portfolio changes in 2017 have seen some more cyclical growth stocks enter the Fund, such as banks in several countries. We are enthusiastic on the prospects for credit growth in a low inflation and low (and in many countries, falling) interest rate environment.

Hopefully, 2018 will be a quieter year than 2017. This would allow the markets to focus on economic and company fundamentals, rather than the newest sound bite or the latest outbreak of 'fake news'. In terms of the fundamentals, a continued improvement in the global economy would be helpful to the emerging markets asset class and provide a broader range of potential investments. However, whatever the environment, we will continue to scour the emerging markets for the best long-term growth opportunities, wherever we may find them.

Investment Strategies used to manage the Fund

Baillie Gifford is a growth manager with a bottom-up approach to stock picking. We aim to invest in companies that will generate sustainable earnings growth above the market over the long term. In determining the potential of a company, we analyse the industry background, competitive advantage, management attitudes and financial strength, and finally we consider valuation. We meet the management of the companies within our investment universe and revisit the investment case for the Fund's holdings on a regular basis to ensure that our expectations are being met. The emerging markets investment team is responsible for the overall strategy and stock selection process, led by the most senior investment managers. The team meets regularly to discuss both buy and sell ideas and to determine the level of conviction in the Fund's holdings.

Trading over the period

Our new buy and complete sale decisions, which are a result of our bottom up stock research are listed below:

New Buys:

Bank Mandiri, Bank Rakyat Indonesia, BM&F Bovespa, China Merchants Bank, CNOOC, Garanti Bankasi, Grupo Financiero Banorte, Kasikorn Bank, Kroton Educacional, Maruti Suzuki, Minth Group, Netmarble Games, Norilsk Nickel, SEA Ltd, Siam Commercial Bank

Management Discussion (unaudited)

Annual Report December 31, 2017

Complete Sales:

Axis Bank, China Life Insurance (Taiwan), China Overseas Land, China Pacific Insurance, CTBC Financial Holding Co Ltd, Ctrip.com International, Delta Electronics, Embraer, Fubon Financial Holding Co,

Infosys Ltd, Interpark, Oracle Financial Services, Orion Holdings, POWSZECHNY ZAKLAD UBEZPIECZE, President Chain Store, Samsung SDI Co Ltd, SEA Ltd ADR, X5 Retail Group GDR

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			% p.a. Five Year			% p.a. Ten Year			Since Inception % p.a. (April 4, 2003)
Emerging Markets Fund Class 5*		53.25	%		8.64	%		3.59	%		15.19	%
MSCI Emerging Markets Index		37.75	%		4.73	%		2.02	%		13.13	%

* The returns for Class 5 shares have been provided. Effective January 1, 2015, the share class structure of The Emerging Markets Fund was changed, and shares previously designated as Class III shares were converted to Class 5 shares. The performance information provided in the Fund Summary for Class 5 reflects the performance for Class III for periods prior to January 1, 2015. Class III shares were subject to a higher shareholder service fee than Class 5 shares, and no adjustment has been made to the performance information shown for Class 5 to reflect its different expense structure. One-year return figures for the other share classes are as follows: 53.02% for Class 2, 53.13% for Class 3, 27.57% for Class K and 27.61% for Institutional Class, returns for Class K and Institutional Class are from Class inception date 04/28/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class 5 share and the index.

Management Discussion (unaudited)

Annual Report December 31, 2017

The Global Alpha Equity Fund

Market Conditions and Review of Performance during 2017

Some good things happened in the world during 2017. A quick look at the website for the Brookings Institution (a US-based think tank) lists, among other things, the unprecedented rate at which people entered the global middle class, falling poverty in the US, the extension of the limits of human longevity and an increasing number of countries in the world who have managed to grow their economies, whilst simultaneously reducing their emissions of greenhouse gasses. You may have missed some of these stories. The media seem to have a preference for more arresting headlines focussing on dysfunctional politics, natural disasters, conflicts and a 'little rocket man' with his finger on a nuclear button.

This mood music may have contributed to the sense that the dramatic gains we have seen in global equity markets since their nadir in the aftermath of the global financial crisis, have constituted the most unloved bull market in history. While the MSCI AC World index has returned over 185% (in USD) since the start of 2009, this has seemingly been accompanied by remarkably little enthusiasm. The one area of notable exception, has been in relation to a small number of companies loosely categorised as 'technology stocks'. This group, including companies such as Facebook, Amazon, and Alphabet in the US and Alibaba and Tencent in China, have been responsible for an outsized share of the overall market gains. As bottom-up optimistic investors the operational progress that many of these companies are reporting is not a surprise. Whilst a broadening of the global economic recovery has been supportive, they continue to prosper more by their own endeavours: identifying growth markets, retaining strong competitive positions through differentiated products and services, and maintaining a flexible managerial approach.

In the context of strong relative performance throughout 2017, a number of the portfolio's 'technology stocks' once again saw strong share price gains, most notably Amazon and Naspers. Amazon's latest results show that both e-commerce and Amazon Web Services' sales continue apace, and Alexa (voice activated personal assistant) has expanded its user base by more than 5x over the last year. Furthermore, success in sales of its own brand range of products (Amazon Essentials), the launch of its core ecommerce offering in Australia and promising signs of growth at Whole Foods Market (which it acquired last year) have all supported the share price. Naspers has been selling non-core assets to focus on its most attractive growth opportunities, indeed, 77% of Naspers' revenues is now derived online, up from 11% in 2007. These assets are

often in Emerging Markets where growth is supported by expanding middle classes, for example Naspers holdings in Tencent (China) and Mail.ru (Russia). The former continues to go from strength to strength. Tencent's payment platform (TenPay) more than tripled volumes last year, WeChat (social media) now has more than 900m monthly active users and Tencent's gaming business continues to grow its revenues handsomely.

Of course not everything goes to plan and the Fund's biggest detractors over the period include Apache (oil and gas exploration company) and First Republic Bank (US financial institution). The market has been growing increasingly impatient with Apache's operational performance. Whilst the most recent set of results showed a return to profitability, volumes were down, in part, the consequence of the company's cut in spending across 2016. Looking longer term, we believe Apache possesses an attractive asset base and the company will continue to leverage its advanced drilling techniques to support its return-focused approach. First Republic Bank's (FRB) customer base is predominantly high net worth individuals. Under US tax law, individuals are permitted to deduct mortgage interest payments from their taxable income. President Trump's recent tax legislation reduced the maximum loan amount that could qualify for deductibility to $750k from $1m. The market is now predicting a slowdown in the bank's loan book growth. We maintain enthusiasm for FRB's ability to prudently grow book value over the long term (+16% CAGR since 2010) and maintain its differentiating high-touch service model whilst expanding into new markets out with its Californian homeland.

Given the strong momentum enjoyed by a number of the Fund's holdings over the last year or so, we have continuously re-evaluated our enthusiasm. We have considered the remaining opportunities available to these businesses and ensured that we still retain a sufficiently differentiated view. Where we believe the market has caught up with our assessment, we have reinvested this capital elsewhere. Over the course of 2017, we have reduced the weightings of a number of the Fund's US-exposed cyclical companies. These include Martin Marietta Materials (construction aggregates and cement), Lincoln Electric (welding equipment and consumables), CarMax (second hand autos) and TD Ameritrade (online broking). Some of this capital has been put to work in the Fund's increasing exposure to Emerging Markets. In the past twelve months there were additions to two Indian financial holdings, ICICI Bank and HDFC. We made initial purchases of Banco Bradesco, one of the leading private sector banks in Brazil and 58.com, a Chinese online company that specialises in classified advertising for small businesses and individuals.

Overall, Fund turnover remains low. In the last twelve months it has been 15% on average with annual rate of 27%,

Management Discussion (unaudited)

Annual Report December 31, 2017

which implies that we own companies for 6-7 years on average.

We continue to cast the net widely for new ideas, with investment trips to Russia, India, China, Japan, Brazil, Europe and the US punctuating last year's research efforts. We fully expect there to more underappreciated good news stories during 2018. Our task is to continue to build a diverse collection of companies that see ongoing change in the world as an opportunity rather than a challenge.

Investment Strategies used to manage the Fund

We aim to invest in companies that will generate sustainable earnings growth above the market over the long term. In determining the potential of a company, we analyse industry background, competitive advantage, management attitudes and financial strength, and finally we consider valuation. We meet the management of the companies within our investment universe and revisit the investment case for the Fund's holdings on a regular basis

to ensure that our expectations are being met. The Global Alpha investment team is responsible for the overall strategy and stock selection process. They meet regularly as part of a Portfolio Review Group, along with representatives from each of Baillie Gifford's regional investment teams, to discuss both buy and sell ideas and the level of conviction in their continuing holdings.

Trading over the period

Our new buy and complete sale decisions, which are a result of our bottom up stock research are listed below:

New Buys: 58.Com, ABIOMED, Advanced Micro Devices, Advantest, AJ Gallagher & Co, AP Moller Maersk, Banco Bradesco, Infineon Technologies, Pernod Ricard, Persol Holdings, Philips Lighting, Siteone Landscape Supply, Thermo Fisher Scientific,

Complete Sales: Brambles, Carlsberg, Colgate-Palmolive, Ferrari, Intuitive Surgical, Monsanto, Qiagen, Rolls-Royce, TripAdvisor, Wolseley

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			% p.a. Five Year			Since Inception % p.a. (November 15, 2011)
Global Alpha Equity Fund Class 3*		34.65	%		14.13	%		14.32	%
MSCI AC World Index		24.62	%		11.40	%		11.81	%

* The returns for Class 3 shares have been provided. One-year return figures for the other share classes are as follows: 34.56% for Class 2, 12.87% for Class 4, return for Class 4 is from inception date of 07/10/2017, 17.97% for Class K, and 18.03% for Institutional Class, returns for Class K and Institutional Class are from Class inception date 04/28/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class 3 share and the index.

Management Discussion (unaudited)

Annual Report December 31, 2017

The International Equity Fund

Market Conditions and Review of Performance during 2017

2017 was an exceptional year for international equity markets. The MSCI ACWI ex U.S. Index rose 27.77%, its strongest performance since 2009, with all regions posting positive returns. Emerging Markets led the way, followed by Europe, Developed Asia, the UK and Canada.

The global economy gained momentum over the year, supported by notable pick ups in investment, trade, and industrial production, coupled with strengthening business and consumer confidence. The period was marked by a revival of the interest rate cycle with tightening from the low rates implemented in the wake of the financial crisis taking place in several markets, including the U.S. and the U.K.. Central banks have been lessening support of liquidity with quantitative easing programs ending or scaling back. Inflation has increased across most of the developed markets, though wage growth generally remains muted, despite tighter labor markets. GDP growth has been positive with Europe, a laggard in recovering from the financial crisis, experiencing an acceleration over the year and Japan continuing to experience strong growth in the wake of the 'Abenomics' stimulus. Despite concerns over geopolitical risks, Emerging Markets also fared well over 2017, outstripping their developed market counterparts in the international indices. In China, higher domestic demand has driven growth and emerging Europe and Russia also gained momentum. In Brazil, strong export performance and a diminished pace of contraction in domestic demand allowed the economy to return to positive growth after a protracted period of decline.

All good news, and the International Equity Fund generated substantial outperformance over the period. However, it is important for future expectations to remain well grounded. In the investment world we have a habit of dividing performance into quarters and years for reporting purposes. In reality, investment is a long game with no distinct finishing line. When researching potential investments for inclusion in the fund, we look out at least five years. It takes time for businesses to execute their long-term plans, to reap the enduring rewards, and for the stock market to recognise this success. Performance should be assessed over a similarly long period, and indeed, the fund has delivered strong

outperformance over three and five years, as it has since inception (February 7, 2008).

The International Equity Fund Class 2 returned 34.96% during 2017, outperforming the MSCI ACWI ex U.S. Index which returned 27.77% for the year.

A number of stocks contributed to this relative outperformance, lead by Naspers, the South African media conglomerate. One of the key challenges for the market remains establishing the value of the diverse investments held within the group beyond its large and listed Tencent (China) stake. To address this, the company focused its December capital markets day on various steps it plans to take to lower the share price discount to Net Asset Value (NAV). The company plans to improve disclosure around the Internal Rates of Return (IRR) it has achieved on investments outside of Tencent. Greater transparency should help investors better value the company's Portfolio of assets and more fully reflect the skill management have demonstrated in allocating capital.

Other contributors to outperformance include MercadoLibre, the South American e-commerce platform with an associated payments business. In order to avert the competitive threat posed by Amazon entering some of their markets, MercadoLibre has introduced a number of initiatives. Free delivery, akin to Amazon Prime, has proven the most successful of these, with the corresponding increase in Gross Merchandise Value (GMV) topping 68% in Brazil and 128% in Mexico year over year. Whilst this rollout has impacted short term margins (much as when Amazon launched Prime) we believe that the investment is a sensible one.

Samsung Electronics, the electronics company, was also among the top contributors to outperformance. Having also performed very well through 2016, on the back of anticipated corporate changes, namely increased pay-outs and share buybacks, a number of earnings reports through 2017 have highlighted rising memory prices and higher content in low and mid-end smartphones.

In terms of stocks which detracted from performance over the year, the Russian food retailer, Magnit, was first amongst these. The company is currently undergoing a new store roll out program in addition to an existing store refurbishment program. Both of these initiatives will be detrimental to near term margins for the benefit of long term margins and profitability. This has been known to us for some time.

Svenska Handelsbanken, the Swedish universal bank, produced strong financial numbers during the fourth

Management Discussion (unaudited)

Annual Report December 31, 2017

quarter but the stock has nevertheless been under pressure for much for the past year and detracted from performance. There was little negative news of long term significance, with the 'macro' picture cited as the biggest on-going concern. Swedish house prices are falling and housing starts are rising, which in combination could put pressure on mortgage volumes. Costs are rising as the bank invests more in information technology and in preparation for Brexit, as it transforms its U.K. operation from a branch structure to a subsidiary. We believe that both of these are temporary factors.

Another detractor is Shimano, the Japanese leisure company, which has built an enviable market share position in bicycle components, fishing equipment and related leisure pursuits, but like many stocks, now looks to China as its main growth market. Having grown strongly between 2011 and 2014, the market turned down in subsequent years. The key to further growth relies on higher component share per bicycle and the higher value of those components as new cycling enthusiasts trade up. With 70% share of the world market, we still believe Shimano is best positioned to exploit this opportunity.

Investment Strategies used to manage the Fund

Baillie Gifford is a growth manager with a bottom-up approach to stock picking. We aim to invest in companies that will generate sustainable earnings growth above that of the market over the long term. In determining the potential of a company, we analyse industry background, competitive advantage, management attitudes and financial strength, and finally we consider valuation. We

meet the management of companies within our investment universe and revisit the investment case for the portfolio's holdings on a regular basis to ensure that our expectations are being met.

The ACWI ex US Alpha Portfolio Construction Group is responsible for the overall strategy and stock selection process. They meet regularly to discuss both buy and sell ideas and the level of conviction for existing holdings and will continue to monitor the long-term prospects for the Fund's holdings and make changes where appropriate.

Trading over the period:

The new buys and complete sales for International Equity Fund during 2017, in alphabetical order are as follows:

New Buys:

Boohoo
Discovery
Grifols
Credit Suisse Group
Kingspan Group
Kroton Educacional

Complete sales:

LafargeHolcim
MS&AD Insurance
Tullow Oil
Volvo
Yandex

Management Discussion (unaudited)

Annual Report December 31, 2017

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			% p.a. Five Year			Since Inception % p.a. (February 7, 2008)
International Equity Fund Class 2*		34.96	%		9.29	%		5.82	%
MSCI ACWI Ex U.S. Index		27.77	%		7.29	%		3.70	%

* The returns for Class 2 shares have been provided. One-year return figures for the other share classes are as follows: 35.05% for Class 3, 12.60% for Class 4, return for Class 4 is from inception date of 07/10/2017, 35.16% for Class 5, 18.19% for Class K and 18.25% for Institutional Class, returns for Class K and Institutional Class are from Class inception date 04/28/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class 2 share and the index.

Management Discussion (unaudited)

Annual Report December 31, 2017

The Long Term Global Growth Equity Fund

Market Conditions and Review of Performance during 2017

The operational performance of the portfolio has been remarkably strong over the past 12 months. While headlines during the year raised the spectre of nuclear war with North Korea, the return of the far-right in Germany's parliament and the ongoing uncertainty of Brexit (to cite just a few), we have endeavoured to ignore short-term market noise and focus instead on the long-term business fundamentals and opportunities for the holdings in the Fund.

Tencent and Alibaba were among the key positive contributors to performance. Tencent continues to impress and the most recent set of results has seen revenue growth accelerate to over 60% year on year. While games continue to account for around half of total sales, the company's ubiquitous WeChat social messaging platform (the largest of its kind in China) is also expanding its functionality, extending from chat to service use, to payments, and — most recently — to gaming. With so much on offer, this is an example of a large innovative company growing by broadening its scope into new areas.

Alibaba too is accomplishing the feat of generating accelerating revenue growth from an already high base: its most recent results report total revenues growing at over 60% year on year, and interestingly international ecommerce revenues (albeit relatively small) growing at 115%. 'Singles' Day' lived up to its reputation as the world's biggest 24 hour shopping bonanza. But while e-commerce remains the dominant top-line driver, Alibaba is also expanding into other areas: for instance, revenue growth of its cloud computing services is growing at nearly 100% year on year.

Among the key detractors from performance over the 12 month period, Under Armour's share price suffered last year following slowing sales growth in its domestic US market. Underlying these numbers is a shift away from wholesale customers and an increase in direct-to-consumer sales, which should be a long-term positive for the brand. We met with founder and CEO, Kevin Plank, and we were impressed with how receptive he was to our constructive feedback. Whilst we still admire the strength of the brand that he helped to cultivate through differentiated technical sports products and an astute recruitment of sporting talent, we think there is scope for

improvement in several areas, including board composition. As the largest outside shareholder of the company we can, and should, help Under Armour to address these areas through a combination of support and pressure for evolution. International sales, though only just over 1/5^th of total sales continue to grow strongly at 35% year on year. We added on weakness in Q2 2017.

Also among the key detractors was Inditex, whose share price fell approximately 10% in 2017. The stronger Euro impacted the company's international revenues and profits. Nevertheless, its most recent results report sales growth at a group level of around 11% year on year, and positive across all geographies, with net income rising by 6%. Inditex now operates over 7,500 stores in 94 markets and continues to expand the regions covered by its online platform — notably launching Zara online in India in October 2017, and Singapore, Malaysia, Thailand and Vietnam earlier in the year. Zara accounts for about two-thirds of total sales with Oysho, Uterque, Bershka and Pull&Bear also performing strongly last year.

As ever, our focus remains on finding and holding companies that can appreciate five-fold over the next five or so years; this is a high bar, but we aim to own a small number of exceptional growth companies. Global equity markets continue to reach new highs, but generally operational performance among their constituents remains weak — as illustrated by the MSCI ACWI delivering 24.62% performance in 2017 while the compound annual revenue growth of its constituents has stagnated over the past five years. In contrast, the Fund continues to experience strong share price performance (the LTGG Fund Class 2 NAV performance was 54.07% in 2017), but which is outpaced by the strong aggregate operational performance of its holdings. In this environment, our role as stock-pickers therefore remains as relevant as ever in order to identify the small number of companies with the most compelling operational performance and opportunities for long-term growth.

Investment Strategies used to manage the Fund

Baillie Gifford is a growth manager with a bottom-up approach to stock picking. We aim to invest in companies that will generate sustainable earnings growth over the long term. In determining the potential of a company, we analyse industry background, competitive advantage, management attitudes and financial strength, and finally we consider valuation. We meet the management of the companies within our investment universe and revisit the

Management Discussion (unaudited)

Annual Report December 31, 2017

investment case for the Fund's holdings on a regular basis to ensure that our expectations are being met.

The Long Term Global Growth team is responsible for the overall strategy and stock selection process. They interact regularly to discuss both buy and sell ideas and the level of conviction for existing holdings and will continue to monitor the long-term prospects for the Fund's holdings and make changes where appropriate.

Trading over the period:

Our new buy and complete sale decisions, which are a result of our bottom-up stock research, are listed below:

New Buys: ASML, NetEase

Complete Sales: Splunk, TripAdvisor

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			Since Inception % p.a. (June 10, 2014)
Long Term Global Growth Equity Fund Class 2*		54.07	%		17.28	%
MSCI AC World Index		24.62	%		7.91	%

* The returns for Class 2 shares have been provided. One-year return figures for the other share classes are as follows: 54.22% for Class 4, 24.21% for Class K, and 24.21% for Institutional Class, returns for Class K and Institutional Class are from Class inception date 04/28/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class 2 share and the index.

Management Discussion (unaudited)

Annual Report December 31, 2017

The U.S. Equity Growth Fund

Market Conditions and Review of Performance during 2017

2017 was a year of firsts: the first year of President Trump; the first time the Dow Jones industrial average rose 5,000 points in a year in its 121 year history. 2017 witnessed the most radical reform to U.S. tax legislation for a generation; and the first time since 2004 that annualised U.S. GDP figures were above 3% for consecutive quarters. Yet it was also the first time in 60 years that the Doomsday Clock was reset to 2 minutes, 30 seconds to midnight reflecting the ominous developments in North Korea's nuclear weapon capabilities, and the President's responses through twitter diplomacy, "fire and fury" statements and eventual UN-backed sanctions. And it was the year that saw the first country announce that it was pulling out of the Paris climate change agreement (the U.S.). Dramatic though this backdrop undoubtedly is, as stock-pickers we focus on the progression of a few exceptional businesses which are often disrupting their markets, creating new industries and changing the way we consume, or improving our chances of living longer, healthier lives.

2017 marked the first full year of investment returns for Baillie Gifford's U.S. Equity Growth Fund. We launched the U.S. Equity Growth Fund because we believe the U.S. equity market to be one of the most attractive asset classes for growth investors. The U.S. economy grew at a decent rate in 2017, unemployment is low and there are few signs of inflation which allows the Federal Reserve to gradually raise interest rates and withdraw stimulus. Most importantly from a stock market perspective, company level revenue and earnings growth have been strong which has contributed to healthy returns for investors. The Fund's K class share returned 34.75%, significantly outperforming the S&P 500 index return of 21.83%. While we are quietly pleased with this level of performance, it is still a short term performance number and must be viewed in the context of our five year investment horizon.

We construct the Fund's portfolio on a 'bottom-up' basis. As a result the majority of performance was driven by stock selection. Two of the top performing holdings in the Fund in 2017 were innovative ecommerce platforms: Amazon and Grubhub. Amazon, the internet platform and cloud computing behemoth, continued to grow its revenues in its major business segments: ecommerce, Prime membership and Amazon Web Services. And the

company continues with its high-investment, low-profit strategy. Amazon's $13.7bn acquisition of healthy grocery store chain, Whole Foods, in August, was seen by many in the market as a significant strategic move that could have far reaching consequences for other grocery companies, retailers, food delivery companies and even restaurant chains. Furthermore, developments such as Amazon Echo, Amazon's smart speaker product with its virtual assistant Alexa, offer exciting new avenues of growth with tens of thousands of developers now integrating Alexa into their products.

Grubhub, the online food ordering company, saw its share price appreciate particularly strongly. The main drivers for this were some key acquisitions of rival food ordering companies, such as Eat24, Foodler and OrderUp, and the announcement of a strategic long-term partnership with Yelp, the online crowd-sourced review app and booking service, which should be beneficial for both companies. Following these acquisitions, Grubhub now has access to over 75,000 restaurants in the U.S. and is four times larger than the next biggest online food delivery platform. We believe Grubhub is both benefiting from, and helping to direct, the secular shift in food consumption behaviours in America.

Holdings in the Healthcare sector contributed to outperformance. We've invested in a number of innovative health care businesses who are at the leading edge of data-driven, machine learning and/or therapeutic research which offers reduced costs, earlier diagnosis and significantly improved outcomes for patients. One notable contributor to performance this year was Alnylam Pharmaceuticals. It announced positive results for the Phase 3 trial of Patisiran, an RNA inhibitor (RNAi) treatment which effectively 'silences' a disease-causing gene in a rare debilitating genetic disease. The trial results demonstrated the best-case scenario in terms of both efficacy and safety. The results are exciting because they potentially herald a new era of highly targeted and specific interventions in genetic diseases.

Two of the main detractors to the Fund's performance were the sports apparel company, Under Armour, and the San Francisco-based bank, First Republic. Under Armour faced significant headwinds during the year, and its share price suffered as a result. Bankruptcies in several sportswear chains in 2016 led to an excess of inventory, which in turn led to a significant discounting of products. As a result, it released disappointing 2016 earnings data. The company's fortunes didn't improve during the year: it struggled in its traditional market, North America, with its sports apparel seemingly off-trend as rivals took

Management Discussion (unaudited)

Annual Report December 31, 2017

market share; October saw its first quarterly sales decline since it became a public company in 2005. While the opportunity in the footwear market and international expansion offer growth opportunities for Under Armour, we are watching it closely to see how it progresses.

First Republic Bank underperformed. The market reacted negatively to its announcement that it wasn't earning as much money from loans as anticipated and that expenses were higher than expected. We view the market's reaction as overly short term: compression in the net interest margin was largely due to increased deposit costs, which management view as a one-off adjustment to catch up with the interest rates being offered at other banks; the higher than expected expense growth was driven by investments in new initiatives (such as the student loan business, which we expect to drive faster growth in the long term) and higher technology spending.

One other notable detractor was online travel site, TripAdvisor. The investment case for TripAdvisor was based on the network effect of the community of reviewers creating strong content which would attract other travellers. The company has been trying to change its business model so that more users book directly through its site, however this transition has encountered several difficulties exacerbated by more users engaging via mobile devices. With strong competitors in the shape of Priceline and Expedia, we became increasingly worried that the costs of driving such user changes will keep margins significantly lower for longer. We think growth rates going forward are unlikely to match those achieved historically therefore decided to sell the holding at the end of 2017.

Over the past year we have invested in a wide range of innovative growth companies which meet our requirements of possessing a differentiated culture and

sustainable competitive advantage while at the same time addressing a large growth opportunity.

Investment strategies used to manage the fund

The Fund seeks to meet its objective by identifying the exceptional growth businesses and owning them for long enough that the advantages of their business models and cultural strengths become the dominant drivers of their stock prices. Our long-term time horizon allows us to capture the disproportionate impact of successful investments, harnessing the asymmetry of returns inherent in equity markets.

In our terms, an exceptional growth business has a special culture, addresses a large market opportunity and possesses an edge that will allow it to deliver high future returns. Such opportunities are rare. The Fund is concentrated as we do not want to dilute the impact of exceptional companies in the name of diversification.

Trading over the period

Our new buy and complete sale decisions, which are a result of our bottom up stock research are listed below:

New Buys:

Activision Blizzard, Denali Therapeutics, Glaukos Corp, HEICO, New Relic, Redfin, Shopify, Stitch Fix

Complete Sales:

Bristol Myers Squibb, Brown-Forman, CarMax, Chipotle Mexican Grill, Harley-Davidson, M&T Bank, O'Reilly Automotive, TripAdvisor

Management Discussion (unaudited)

Annual Report December 31, 2017

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			Since Inception % p.a. (December 5, 2016)
U.S. Equity Growth Fund Class K*		34.75	%		31.79	%
S&P 500		21.83	%		22.26	%

* The returns for Class K shares have been provided. The inception date for The U.S. Equity Growth Fund is December 5, 2016, when Baillie Gifford International, LLC purchased Class 1 shares. Classes 1-5 of The U.S. Equity Growth Fund were terminated effective May 1, 2017, and Class 1 was converted to Class K. For the purposes of the total return data and other data reflected in the Fund's management discussion, the Fund has used December 5, 2016 as its inception date for Class K. One-year return figures for the other share classes are as follows: 17.01% for Institutional Class, return for Institutional Class is from Class inception date 04/28/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class K share and the index.

Management Discussion (unaudited)

Annual Report December 31, 2017

International Choice Fund

Market Conditions and Review of Performance during 2017

After three years of lacklustre returns, 2017 delivered a more encouraging year in international equity markets. The MSCI ACWI ex US index returned 27.77% for the year, with returns for the Fund meaningfully ahead of this at 31.45% for class 2 shares.

Investment Strategies used to manage the Fund

Management Discussion (unaudited)

Annual Report December 31, 2017

Trading over the period

Our new buy and complete sale decisions, which are a result of our bottom up stock research are listed below:

New Buys:

AIA, ASML, Advantest, Asian Paints, Fairfax, HDFC, Magnit, MakeMyTrip, Naver, Raia Drogasil, Sartorius, Shopify, Softbank, U-Blox

Complete Sales:

Asahi, Imagination Technologies, Pax Global Technology, Roche, Swatch, Unilever

Fund Performance for the periods ended 12/31/17 (Average Annual Total Returns)

	One Year			Since Inception % p.a. (April 9, 2013)
International Choice Fund Class 2*		31.45	%		8.20	%
MSCI ACWI ex U.S. Index		27.77	%		7.78	%

* The returns for Class 2 shares have been provided. One-year return figures for the other share classes are as follows: 31.54% for Class 3 and 19.56% for Class 4, return for Class 4 is from inception date of 04/03/2017. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 Investment in the Fund's Class 2 share and the index.

Fund Expenses (unaudited)

Annual Report December 31, 2017

As a shareholder of the Baillie Gifford EAFE Fund, the Baillie Gifford EAFE Choice Fund, the Baillie Gifford EAFE Pure Fund, the Baillie Gifford Emerging Markets Fund, the Baillie Gifford Global Alpha Equity Fund, the Baillie Gifford Global Select Equity Fund, the Baillie Gifford International Concentrated Growth Fund, the Baillie Gifford International Equity Fund, the Baillie Gifford Long Term Global Growth Equity Fund, the Baillie Gifford Positive Change Equity Fund, the Baillie Gifford U.S. Equity Growth Fund and the Baillie Gifford International Choice Fund (together, the "Funds") you incur ongoing costs, including management fees, shareholder service fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in the other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2017 to December 31, 2017.

Actual Expenses

The first line of each table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide the account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of each table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund's actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Fund Expenses (unaudited)

Annual Report December 31, 2017

	Beginning Account Value 7/01/17		Ending Account Value 12/31/17		Annualized Expense Ratios Based on the Period 7/01/17 to 12/31/17			Expenses Paid⁽¹⁾During Period
Baillie Gifford EAFE Fund — Class 2
Actual	$	1,000	$	1,165.00		0.61	%	$	3.33
Hypothetical (5% return before expenses)	$	1,000	$	1,022.13		0.61	%	$	3.11
Baillie Gifford EAFE Fund — Class 3
Actual	$	1,000	$	1,165.40		0.54	%	$	2.95
Hypothetical (5% return before expenses)	$	1,000	$	1,022.48		0.54	%	$	2.75
Baillie Gifford EAFE Fund — Class 4
Actual	$	1,000	$	1,165.60		0.51	%	$	2.78
Hypothetical (5% return before expenses)	$	1,000	$	1,022.63		0.51	%	$	2.60
Baillie Gifford EAFE Fund — Class 5
Actual	$	1,000	$	1,165.90		0.46	%	$	2.51
Hypothetical (5% return before expenses)	$	1,000	$	1,022.89		0.46	%	$	2.35
Baillie Gifford EAFE Fund — Class K
Actual	$	1,000	$	1,165.20		0.61	%	$	3.33
Hypothetical (5% return before expenses)	$	1,000	$	1,022.13		0.61	%	$	3.11
Baillie Gifford EAFE Fund — Institutional Class
Actual	$	1,000	$	1,165.20		0.61	%	$	3.33
Hypothetical (5% return before expenses)	$	1,000	$	1,022.13		0.61	%	$	3.11
Baillie Gifford EAFE Choice Fund — Class 2
Actual	$	1,000	$	1,097.50		0.69	%	$	3.65
Hypothetical (5% return before expenses)	$	1,000	$	1,021.73		0.69	%	$	3.52
Baillie Gifford EAFE Choice Fund — Class 3
Actual	$	1,000	$	1,097.80		0.63	%	$	3.33
Hypothetical (5% return before expenses)	$	1,000	$	1,022.03		0.63	%	$	3.21
Baillie Gifford EAFE Choice Fund — Class K
Actual	$	1,000	$	1,097.40		0.70	%	$	3.70
Hypothetical (5% return before expenses)	$	1,000	$	1,021.68		0.70	%	$	3.57

Fund Expenses (unaudited)

Annual Report December 31, 2017

	Beginning Account Value 7/01/17		Ending Account Value 12/31/17		Annualized Expense Ratios Based on the Period 7/01/17 to 12/31/17			Expenses Paid⁽¹⁾During Period
Baillie Gifford EAFE Choice Fund — Institutional Class
Actual	$	1,000	$	1,097.80		0.80	%	$	4.23
Hypothetical (5% return before expenses)	$	1,000	$	1,021.17		0.80	%	$	4.08
Baillie Gifford EAFE Pure Fund — Class 2
Actual	$	1,000	$	1,086.10		0.67	%	$	3.52
Hypothetical (5% return before expenses)	$	1,000	$	1,021.83		0.67	%	$	3.41
Baillie Gifford EAFE Pure Fund — Class 3
Actual	$	1,000	$	1,086.50		0.60	%	$	3.16
Hypothetical (5% return before expenses)	$	1,000	$	1,022.18		0.60	%	$	3.06
Baillie Gifford EAFE Pure Fund — Class K
Actual	$	1,000	$	1,087.20		0.67	%	$	3.52
Hypothetical (5% return before expenses)	$	1,000	$	1,021.83		0.67	%	$	3.41
Baillie Gifford EAFE Pure Fund — Institutional Class
Actual	$	1,000	$	1,087.20		0.67	%	$	3.52
Hypothetical (5% return before expenses)	$	1,000	$	1,021.83		0.67	%	$	3.41
Baillie Gifford Emerging Markets Fund — Class 2
Actual	$	1,000	$	1,204.40		0.85	%	$	4.72
Hypothetical (5% return before expenses)	$	1,000	$	1,020.92		0.85	%	$	4.33
Baillie Gifford Emerging Markets Fund — Class 3
Actual	$	1,000	$	1,204.80		0.78	%	$	4.33
Hypothetical (5% return before expenses)	$	1,000	$	1,021.27		0.78	%	$	3.97
Baillie Gifford Emerging Markets Fund — Class 5
Actual	$	1,000	$	1,205.30		0.70	%	$	3.89
Hypothetical (5% return before expenses)	$	1,000	$	1,021.68		0.70	%	$	3.57
Baillie Gifford Emerging Markets Fund — Class K
Actual	$	1,000	$	1,204.30		0.86	%	$	4.78
Hypothetical (5% return before expenses)	$	1,000	$	1,020.87		0.86	%	$	4.38

Fund Expenses (unaudited)

Annual Report December 31, 2017

	Beginning Account Value 7/01/17		Ending Account Value 12/31/17		Annualized Expense Ratios Based on the Period 7/01/17 to 12/31/17			Expenses Paid⁽¹⁾During Period
Baillie Gifford Emerging Markets Fund — Institutional Class
Actual	$	1,000	$	1,204.60		0.86	%	$	4.78
Hypothetical (5% return before expenses)	$	1,000	$	1,020.87		0.86	%	$	4.38
Baillie Gifford Global Alpha Equity Fund — Class 2
Actual	$	1,000	$	1,132.20		0.68	%	$	3.65
Hypothetical (5% return before expenses)	$	1,000	$	1,021.78		0.68	%	$	3.47
Baillie Gifford Global Alpha Equity Fund — Class 3
Actual	$	1,000	$	1,132.60		0.61	%	$	3.28
Hypothetical (5% return before expenses)	$	1,000	$	1,022.13		0.61	%	$	3.11
Baillie Gifford Global Alpha Equity Fund — Class 4
Actual*	$	1,000	$	1,128.70		0.58	%	$	2.96
Hypothetical (5% return before expenses)	$	1,000	$	1,022.28		0.58	%	$	2.96
Baillie Gifford Global Alpha Equity Fund — Class K
Actual	$	1,000	$	1,131.80		0.69	%	$	3.71
Hypothetical (5% return before expenses)	$	1,000	$	1,021.73		0.69	%	$	3.52
Baillie Gifford Global Alpha Equity Fund — Institutional Class
Actual	$	1,000	$	1,132.40		0.68	%	$	3.65
Hypothetical (5% return before expenses)	$	1,000	$	1,021.78		0.68	%	$	3.47
Baillie Gifford Global Select Equity Fund — Class K
Actual**	$	1,000	$	1,015.00		0.65	%	$	0.32
Hypothetical (5% return before expenses)	$	1,000	$	1,021.93		0.65	%	$	3.31
Baillie Gifford Global Select Equity Fund — Institutional Class
Actual**	$	1,000	$	1,015.00		0.80	%	$	0.40
Hypothetical (5% return before expenses)	$	1,000	$	1,021.17		0.80	%	$	4.08
Baillie Gifford International Concentrated Growth Fund — Class K
Actual**	$	1,000	$	1,005.00		0.72	%	$	0.36
Hypothetical (5% return before expenses)	$	1,000	$	1,021.58		0.72	%	$	3.67

Fund Expenses (unaudited)

Annual Report December 31, 2017

	Beginning Account Value 7/01/17		Ending Account Value 12/31/17		Annualized Expense Ratios Based on the Period 7/01/17 to 12/31/17			Expenses Paid⁽¹⁾During Period
Baillie Gifford International Concentrated Growth Fund — Institutional Class
Actual**	$	1,000	$	1,005.00		0.87	%	$	0.43
Hypothetical (5% return before expenses)	$	1,000	$	1,020.82		0.87	%	$	4.43
Baillie Gifford International Equity Fund — Class 2
Actual	$	1,000	$	1,123.80		0.62	%	$	3.32
Hypothetical (5% return before expenses)	$	1,000	$	1,022.08		0.62	%	$	3.16
Baillie Gifford International Equity Fund — Class 3
Actual	$	1,000	$	1,124.20		0.55	%	$	2.94
Hypothetical (5% return before expenses)	$	1,000	$	1,022.43		0.55	%	$	2.80
Baillie Gifford International Equity Fund — Class 4
Actual*	$	1,000	$	1,126.00		0.53	%	$	2.70
Hypothetical (5% return before expenses)	$	1,000	$	1,022.53		0.53	%	$	2.70
Baillie Gifford International Equity Fund — Class 5
Actual	$	1,000	$	1,124.60		0.47	%	$	2.52
Hypothetical (5% return before expenses)	$	1,000	$	1,022.84		0.47	%	$	2.40
Baillie Gifford International Equity Fund — Class K
Actual	$	1,000	$	1,123.20		0.65	%	$	3.48
Hypothetical (5% return before expenses)	$	1,000	$	1,021.93		0.65	%	$	3.31
Baillie Gifford International Equity Fund — Institutional Class
Actual	$	1,000	$	1,123.80		0.62	%	$	3.32
Hypothetical (5% return before expenses)	$	1,000	$	1,022.08		0.62	%	$	3.16
Baillie Gifford Long Term Global Growth Equity Fund — Class 2
Actual	$	1,000	$	1,172.70		0.77	%	$	4.42
Hypothetical (5% return before expenses)	$	1,000	$	1,021.32		0.77	%	$	3.92
Baillie Gifford Long Term Global Growth Equity Fund — Class 4
Actual	$	1,000	$	1,173.30		0.67	%	$	3.67
Hypothetical (5% return before expenses)	$	1,000	$	1,021.83		0.67	%	$	3.41

Fund Expenses (unaudited)

Annual Report December 31, 2017

	Beginning Account Value 7/01/17		Ending Account Value 12/31/17		Annualized Expense Ratios Based on the Period 7/01/17 to 12/31/17			Expenses Paid⁽¹⁾During Period
Baillie Gifford Long Term Global Growth Equity Fund — Class K
Actual	$	1,000	$	1,172.40		0.77	%	$	4.22
Hypothetical (5% return before expenses)	$	1,000	$	1,021.32		0.77	%	$	3.92
Baillie Gifford Long Term Global Growth Equity Fund — Institutional Class
Actual	$	1,000	$	1,172.40		0.80	%	$	4.38
Hypothetical (5% return before expenses)	$	1,000	$	1,021.17		0.80	%	$	4.08
Baillie Gifford Positive Change Equity Fund — Class K
Actual**	$	1,000	$	1,016.00		0.65	%	$	0.32
Hypothetical (5% return before expenses)	$	1,000	$	1,021.93		0.65	%	$	3.31
Baillie Gifford Positive Change Equity Fund — Institutional Class
Actual**	$	1,000	$	1,016.00		0.80	%	$	0.40
Hypothetical (5% return before expenses)	$	1,000	$	1,021.17		0.80	%	$	4.08
Baillie Gifford U.S. Equity Growth Fund — Class K
Actual	$	1,000	$	1,104.70		0.57	%	$	3.02
Hypothetical (5% return before expenses)	$	1,000	$	1,022.33		0.57	%	$	2.91
Baillie Gifford U.S. Equity Growth Fund — Institutional Class
Actual	$	1,000	$	1,104.70		0.72	%	$	3.82
Hypothetical (5% return before expenses)	$	1,000	$	1,021.58		0.72	%	$	3.67
Baillie Gifford International Choice Fund — Class 2
Actual	$	1,000	$	1,095.00		0.66	%	$	3.49
Hypothetical (5% return before expenses)	$	1,000	$	1,021.88		0.66	%	$	3.36
Baillie Gifford International Choice Fund — Class 3
Actual	$	1,000	$	1,095.40		0.59	%	$	3.12
Hypothetical (5% return before expenses)	$	1,000	$	1,022.23		0.59	%	$	3.01

Fund Expenses (unaudited)

Annual Report December 31, 2017

	Beginning Account Value 7/01/17		Ending Account Value 12/31/17		Annualized Expense Ratios Based on the Period 7/01/17 to 12/31/17			Expenses Paid⁽¹⁾During Period
Baillie Gifford International Choice Fund — Class 4
Actual	$	1,000	$	1,095.60		0.56	%	$	2.96
Hypothetical (5% return before expenses)	$	1,000	$	1,022.38		0.56	%	$	2.85

* Commencement of operations on July 10, 2017. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 175/365 (to reflect recommencement of operation).

** Commencement of operations on December 14, 2017. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 18/365 (to reflect commencement of operation).

⁽¹⁾ Unless otherwise indicated, expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 184/365 (to reflect the six-month period).

Expenses are calculated using the annualized expense ratio for the Funds, which represents the ongoing expenses as a percentage of net assets for the year or period end December 31, 2017. Expenses are calculated by multiplying the annualized expense ratio by the average account value for the period; then multiplying

the result by the number of days in the most recent fiscal half-year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal year may differ from expense ratios based on the one-year data in the financial highlights.

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Fund

	Value		% of Total Net Assets
Aerospace & Defense	$	69,547,908		2.5	%
Apparel Retailers		208,020,034		7.4
Automobiles		219,740,933		7.9
Banks		141,578,593		5.1
Biotechnology		125,439,036		4.5
Broadline Retailers		98,705,083		3.5
Chemicals		35,724,612		1.3
Clothing & Accessories		45,958,033		1.7
Commodity Chemicals		47,568,512		1.7
Computers		13,810,151		0.5
Diversified Financial Services		30,303,829		1.1
Diversified Industrials		26,005,259		0.9
Electrical Components & Equipment		44,539,424		1.6
Food & Drug Retailers		14,638,571		0.5
Food Retailers & Wholesalers		25,392,538		0.9
General Financial		24,520,224		0.9
General Retailers		49,950,212		1.8
Healthcare — Products		36,637,488		1.4
Hotels Restaurants and Leisure		17,533,939		0.6
Industrial Engineering		12,063,991		0.4
Industrial Machinery		154,848,491		5.5
Internet, Software & Services		331,975,333		12.0
Life Insurance		120,118,457		4.3
Media & Photography		92,181,599		3.3
Medical Equipment		29,955,762		1.1
Mortgage Finance		13,064,955		0.5
Personal Products		99,260,960		3.5
Publishing		7,861,237		0.3
Semiconductors		73,833,031		2.6
Speciality Finance		49,418,958		1.8
Specialized Consumer Services		249,509,757		8.9
Technology Hardware & Equipment		142,685,218		5.1
Telecommunication Services		109,801,676		3.9
Total Value of Investments		2,762,193,804		99.0
Other assets less liabilities		28,211,465		1.0
Net Assets	$	2,790,405,269		100.0	%

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Fund

	Shares		Value
COMMON STOCKS — 98.6%
ARGENTINA — 1.4%
MercadoLibre, Inc.		122,762	$	38,628,291
AUSTRIA — 1.7%
ams AG ^(a)		536,657		48,616,756
BELGIUM — 1.3%
Umicore SA		754,498		35,724,612
CHINA — 15.9%
Alibaba Group Holding Ltd. ADR ^(a)		700,558		120,797,216
Baidu, Inc. ADR ^(a)		509,398		119,306,106
Ctrip.com International Ltd. ADR ^(a)		397,595		17,533,939
New Oriental Education & Technology Group, Inc. ADR		504,828		47,453,832
Tencent Holdings Ltd.		2,675,700		138,488,760
				443,579,853
DENMARK — 3.9%
Chr. Hansen Holding A/S		287,735		26,989,503
Genmab A/S ^(a)		298,881		49,567,030
Novozymes A/S, B Shares		552,683		31,551,201
				108,107,734
FRANCE — 7.1%
Essilor International SA		175,744		24,207,182
Kering		209,687		98,705,083
L'Oreal SA		340,849		75,525,395
				198,437,660
GERMANY — 8.2%
Aixtron SE ^(a)		1,148,158		15,870,130
BASF SE		433,896		47,568,512
Delivery Hero AG 144A ^(a)(b)		481,588		19,068,444
Dialog Semiconductor PLC ^(a)		301,806		9,346,145
MorphoSys AG ^(a)		189,625		17,331,302
Rocket Internet SE 144A ^(a)(b)		702,864		17,720,136
Zalando SE 144A ^(a)(b)		1,923,468		101,420,001
				228,324,670

The accompanying notes are an integral part of the financial statements.
29

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Fund

	Shares		Value
HONG KONG — 5.4%
AIA Group Ltd.		14,122,200	$	120,118,457
Hong Kong Exchanges & Clearing Ltd.		990,701		30,303,829
				150,422,286
INDIA — 0.5%
Housing Development Finance Corp., Ltd.		487,887		13,064,955
ISRAEL — 0.6%
Wix.com Ltd. ^(a)		309,853		17,832,040
ITALY — 8.0%
EXOR NV		57,074		3,499,330
Ferrari NV		1,122,328		117,597,537
Fiat Chrysler Automobiles NV ^(a)		5,721,275		102,143,396
				223,240,263
JAPAN — 15.7%
Don Quijote Holdings Co., Ltd.		592,400		30,881,768
M3, Inc.		2,366,700		82,962,700
Nidec Corp.		318,100		44,539,424
Pigeon Corp.		624,700		23,735,565
Rakuten, Inc.		3,908,600		35,727,243
SBI Holdings, Inc.		1,008,900		21,020,894
SMC Corp.		145,900		59,875,084
SoftBank Group Corp.		1,386,900		109,801,676
Sysmex Corp.		381,500		29,955,762
				438,500,116
NETHERLANDS — 5.6%
ASML Holding NV		820,700		142,685,218
Gemalto NV		233,201		13,810,151
				156,495,369
NORWAY — 0.6%
Schibsted ASA, Class A		322,112		9,218,899
Schibsted ASA, Class B		295,741		7,861,237
				17,080,136

The accompanying notes are an integral part of the financial statements.
30

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Fund

	Shares		Value
PORTUGAL — 0.6%
Jeronimo Martins SGPS SA		802,592	$	15,595,577
SPAIN — 5.7%
Banco Bilbao Vizcaya Argentaria SA		5,136,219		43,648,562
Distribuidora Internacional de Alimentacion SA		1,899,507		9,796,961
Inditex SA		3,065,714		106,600,033
				160,045,556
SWEDEN — 9.0%
Alfa Laval AB		1,099,436		26,005,259
Atlas Copco AB, A Shares		2,200,696		94,973,407
Elekta AB, B Shares		1,505,361		12,430,306
Kinnevik AB, B Shares		1,462,495		49,418,958
Svenska Handelsbanken AB, A Shares		4,908,132		67,074,747
				249,902,677
SWITZERLAND — 1.7%
Compagnie Financiere Richemont SA		507,443		45,958,033
UNITED KINGDOM — 4.1%
Ocado Group PLC ^(a)		2,741,504		14,638,571
Rolls-Royce Holdings PLC ^(a)		6,058,562		69,144,891
Rolls-Royce Holdings PLC Entitlement ^(a)(c)		298,498,370		403,017
Standard Chartered PLC ^(a)		2,938,161		30,855,284
				115,041,763
UNITED STATES — 1.6%
TAL Education Group ADR		1,532,530		45,531,466
Total Common Stocks
(cost $1,469,558,900)				2,750,129,813
PREFERRED STOCKS — 0.4%
GERMANY — 0.4%
Sartorius AG (cost $13,120,093)		127,000		12,063,991

The accompanying notes are an integral part of the financial statements.
31

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Fund

	Value
TOTAL INVESTMENTS — 99.0%
(cost $1,482,678,993)	$	2,762,193,804
Other assets less liabilities — 1.0%		28,211,465
NET ASSETS — 100.0%	$	2,790,405,269

^(a) Non-income producing security.

^(b) 144A — Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Prices are obtained daily from the London International Stock Exchange; therefore, fair valuation is typically not required. At December 31, 2017, the net value of these securities was $138,208,581 representing 5.0% of net assets.

^(c) Investment was valued using significant unobservable inputs.

ADR — American Depositary Receipt.

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Argentina	$	38,628,291	$	—	$	—	$	38,628,291
Austria		—		48,616,756		—		48,616,756
Belgium		—		35,724,612		—		35,724,612
China		305,091,093		138,488,760		—		443,579,853
Denmark		76,556,533		31,551,201		—		108,107,734
France		—		198,437,660		—		198,437,660
Germany		19,068,444		209,256,226		—		228,324,670
Hong Kong		—		150,422,286		—		150,422,286
India		—		13,064,955		—		13,064,955
Israel		17,832,040		—		—		17,832,040
Italy		3,499,330		219,740,933		—		223,240,263
Japan		—		438,500,116		—		438,500,116
Netherlands		—		156,495,369		—		156,495,369
Norway		—		17,080,136		—		17,080,136
Portugal		15,595,577		—		—		15,595,577
Spain		—		160,045,556		—		160,045,556
Sweden		—		249,902,677		—		249,902,677
Switzerland		—		45,958,033		—		45,958,033
United Kingdom		—		114,638,746		403,017		115,041,763
United States		45,531,466		—		—		45,531,466
Total Common Stocks		521,802,774		2,227,924,022		403,017		2,750,129,813
Preferred Stocks
Germany		—		12,063,991		—		12,063,991
Total	$	521,802,774	$	2,239,988,013	$	403,017	$	2,762,193,804

The accompanying notes are an integral part of the financial statements.
32

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Fund

For the EAFE Fund, fair value of Level 3, Level 2 and Level 1 investments at December 31, 2016 was $390,165, $1,855,983,398 and $292,437,851, respectively. $118,870,648 was transferred out of Level 2 into Level 1 and $10,322,368 was transferred out of Level 1 into Level 2 during the year ended December 31, 2017. Transfers into Level 2 and out of Level 1 resulted from foreign securities which were priced using inputs from a third-party vendor modeling tool to reflect any significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. Transfers into Level 1 and out of Level 2 resulted when pricing was based on quoted market prices.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The following is a reconciliation of the Fund's Level 3 investments for which significant unobservable inputs were used in determining value:

Balance at December 31, 2016	$	390,165
Purchases		1,020,285
Sales		(1,012,558	)
Realized gain (loss)		(7	)
Change in unrealized gain (loss)		5,132
Transfers into Level 3		—
Transfers out of Level 3		—
Balance at December 31, 2017	$	403,017	*
Change in unrealized gain (loss) related to Investments still held at December 31, 2017	$	7,492

* Value of the security based on the amount it was known that it would be redeemed at, due to halt in market.

The Trust has made the determination to price these shares at their redemption value. As the fair value is based on management's own assumption, the Trust has determined this to be a level 3 security.

The accompanying notes are an integral part of the financial statements.
33

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Fund

ASSETS
Investments, at value (cost $1,482,678,993)	$	2,762,193,804
Cash		27,193,733
Dividends receivable		249,165
Tax reclaims receivable		2,217,814
Capital shares sold receivable		4,800,000
Prepaid assets		33,261
Total Assets		2,796,687,777
LIABILITIES
Advisory fee payable		2,450,664
Due to Custodian		644
Servicing fee payable		622,372
Capital shares purchased payable		2,000,000
Trustee payable		33,182
Accrued expenses		1,175,646
Total Liabilities		6,282,508
NET ASSETS	$	2,790,405,269
COMPOSITION OF NET ASSETS
Paid-in capital	$	1,486,913,917
Distributions in excess of net investment income		(17,654,071	)
Accumulated net realized gain on investments and foreign currency transactions		41,556,227
Net unrealized appreciation in value of investments and foreign currencies		1,279,589,196
	$	2,790,405,269
NET ASSET VALUE, PER SHARE
Class 2 ($746,817,361 / 51,890,604 shares outstanding), unlimited authorized, no par value	$	14.39
Class 3 ($601,548,841 / 41,714,466 shares outstanding), unlimited authorized, no par value	$	14.42
Class 4 ($302,473,646 / 20,961,363 shares outstanding), unlimited authorized, no par value	$	14.43
Class 5 ($1,139,553,157 / 78,817,054 shares outstanding), unlimited authorized, no par value	$	14.46
Class K ($6,132 / 426 shares outstanding), unlimited authorized, no par value	$	14.38	*
Institutional Class ($6,132 / 426 shares outstanding), unlimited authorized, no par value	$	14.38	*

*_{Net assets divided by shares does not recalculate using values rounded to the dollar.}

The accompanying notes are an integral part of the financial statements.
34

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford EAFE Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $3,173,836)	$	26,074,304
Interest		10,050
Total Investment Income		26,084,354
EXPENSES
Advisory fee (Note B)		9,108,847
Shareholder Servicing fees — Class 1 Shares (Note B)		12,838
Shareholder Servicing fees — Class 2 Shares (Note B)		1,517,938
Shareholder Servicing fees — Class 3 Shares (Note B)		506,588
Shareholder Servicing fees — Class 4 Shares (Note B)		185,705
Shareholder Servicing fees — Class 5 Shares (Note B)		198,802
Administration & Supervisory Fee — Class K Shares (Note B)		6
Administration & Supervisory Fee — Institutional Class Shares (Note B)		6
Fund accounting		1,241,042
Custody		467,162
Legal		411,490
Trustees' fees		119,502
Transfer agency		97,844
Professional fees		60,435
Insurance		18,863
Miscellaneous		69,106
Total Expenses		14,016,174
Net Investment Income		12,068,180
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain from:
Investments		98,583,871
Foreign currency transactions		304,295
		98,888,166
Net change in unrealized appreciation on:
Investments		870,018,263
Translation of assets and liabilities denominated in foreign currencies		246,279
		870,264,542
Net realized and unrealized gain on investments and foreign currency transactions		969,152,708
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	981,220,888

The accompanying notes are an integral part of the financial statements.
35

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford EAFE Fund

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income	$	12,068,180		$	19,672,297
Net realized gain from investments and foreign currency transactions		98,888,166			93,864,524
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		870,264,542			(83,622,730	)
Net increase in net assets from operations		981,220,888			29,914,091
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class 1		—			(97,628	)
Class 2		(2,877,997	)		(4,641,903	)
Class 3		(3,036,187	)		(2,905,636	)
Class 4		(1,594,302	)		(1,575,312	)
Class 5		(6,491,622	)		(6,037,428	)
Class K		(30	)		—
Institutional Class		(30	)		—
Capital gains:
Class 1		—			(871,988	)
Class 2		(14,593,795	)		(34,439,596	)
Class 3		(11,762,424	)		(20,659,320	)
Class 4		(5,909,324	)		(9,130,203	)
Class 5		(22,211,065	)		(36,373,689	)
Class K		(120	)		—
Institutional Class		(120	)		—
Total Dividends and Distributions		(68,477,016	)		(116,732,703	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 1		1,508			47,348,253
Class 2*		109,733,985			63,886,179
Class 3		110,142,876			197,212,132
Class 4		25,000,000			217,043,346
Class K		5,000			—
Institutional Class		5,000
Purchase fees:
Class 1		279			1,029
Class 2		11,880			34,321
Class 3		6,994			28,671
Class 4		3,256			2,941
Class 5		12,563			36,592
Redemption fees:
Class 1		100			1,595
Class 2		16,484			32,039
Class 3		8,105			27,583
Class 4		4,201			2,280
Class 5		16,205			34,541

The accompanying notes are an integral part of the financial statements.
36

Statements of Changes in Net Assets

Annual Report December 31, 2017

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
Dividends reinvested:
Class 1		—			969,616
Class 2		17,464,610			38,642,083
Class 3		14,798,611			23,564,955
Class 4		7,503,626			10,705,515
Class 5		28,702,684			42,410,685
Class K		150			—
Institutional Class		150			—
Cost of shares redeemed:
Class 1*		(20,817,261	)		(30,384,500	)
Class 2		(437,863,539	)		(72,383,976	)
Class 3		(122,361,558	)		(284,259,708	)
Class 4		(20,000,000	)		(191,724,888	)
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest		(287,604,091	)		63,231,284
Total Increase (Decrease) in Net Assets		625,139,781			(23,587,328	)
NET ASSETS
Beginning of year		2,165,265,488			2,188,852,816
End of year (including distributions in excess of net investment income of $17,654,071 and $17,506,993, respectively)	$	2,790,405,269		$	2,165,265,488

* Class 1 shareholders were converted to Class 2 during the period. Please refer to Notes A and D.

The accompanying notes are an integral part of the financial statements.
37

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Fund
Selected data for a Class 2 Share outstanding throughout each year:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Net asset value, beginning of year	$	10.09		$	10.52		$	11.11		$	12.58		$	9.88
From Investment Operations
Net investment income^(a)		0.05			0.08			0.09			0.14			0.13
Net realized and unrealized gain (loss) on investments and foreign currency transactions		4.60			0.06			(0.42	)		(1.01	)		2.70
Net increase (decrease) in net asset value from investment operations		4.65			0.14			(0.33	)		(0.87	)		2.83
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.06	)		(0.07	)		(0.09	)		(0.14	)		(0.13	)
Distributions from net realized gain on investments		(0.29	)		(0.50	)		(0.17	)		(0.46	)		—
Total Dividends and Distributions		(0.35	)		(0.57	)		(0.26	)		(0.60	)		(0.13	)
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(b)		0.00	^(b)		0.00	^(b)		0.00	^(b)		0.00	^(b)
Net asset value, end of year	$	14.39		$	10.09		$	10.52		$	11.11		$	12.58
Total Return
Total return based on net asset value^(c)		46.09	%		1.34	%		(3.07	)%		(6.98	)%		28.69	%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)	$	746,817		$	732,160		$	732,135		$	754,210		$	828,208
Ratio of net expenses to average net assets		0.61	%		0.61	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		0.42	%		0.81	%		0.78	%		1.18	%		1.21	%
Portfolio turnover rate^(d)		9	%		18	%		17	%		18	%		15	%

^(a) Calculated based upon average shares outstanding during the year.

^(b) Amount is less than $0.005 per share.

^(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the year. Total return is not annualized for periods less than one year.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
38

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Fund
Selected data for a Class 3 Share outstanding throughout each year:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Net asset value, beginning of year	$	10.11		$	10.54		$	11.13		$	12.61		$	9.90
From Investment Operations
Net investment income^(a)		0.05			0.11			0.10			0.15			0.14
Net realized and unrealized gain (loss) on investments and foreign currency transactions		4.62			0.03			(0.43	)		(1.02	)		2.71
Net increase (decrease) in net asset value from investment operations		4.67			0.14			(0.33	)		(0.87	)		2.85
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.07	)		(0.07	)		(0.09	)		(0.15	)		(0.14	)
Distributions from net realized gain on investments		(0.29	)		(0.50	)		(0.17	)		(0.46	)		—
Total Dividends and Distributions		(0.36	)		(0.57	)		(0.26	)		(0.61	)		(0.14	)
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(b)		0.00	^(b)		0.00	^(b)		0.00	^(b)		0.00	^(b)
Net asset value, end of year	$	14.42		$	10.11		$	10.54		$	11.13		$	12.61
Total Return
Total return based on net asset value^(c)		46.20	%		1.41	%		(3.02	)%		(6.91	)%		28.83	%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)	$	601,549		$	433,860		$	490,218		$	487,943		$	530,001
Ratio of net expenses to average net assets		0.54	%		0.54	%		0.55	%		0.54	%		0.54	%
Ratio of net investment income to average net assets		0.41	%		1.04	%		0.85	%		1.23	%		1.30	%
Portfolio turnover rate^(d)		9	%		18	%		17	%		18	%		15	%

^(a) Calculated based upon average shares outstanding during the year.

^(b) Amount is less than $0.005 per share.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
39

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Fund
Selected data for a Class 4 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Period October 10, 2016^(b)through December 31, 2016			For the Period January 1, 2016^(b)through April 11, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Period October 10, 2013^(a)through December 31, 2013
Net asset value, beginning of period	$	10.12		$	11.49		$	10.55		$	11.15		$	12.62		$	11.68
From Investment Operations
Net investment income^(c)		0.06			0.00	^(d)		0.02			0.10			0.16			0.00	^(d)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		4.62			(0.81	)		(0.41	)		(0.43	)		(1.01	)		1.08
Net increase (decrease) in net asset value from investment operations		4.68			(0.81	)		(0.39	)		(0.33	)		(0.85	)		1.08
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.08	)		(0.08	)		—			(0.10	)		(0.16	)		(0.14	)
Distributions from net realized gain on investments		(0.29	)		(0.48	)		—			(0.17	)		(0.46	)		—
Total Dividends and Distributions		(0.37	)		(0.56	)		—			(0.27	)		(0.62	)		(0.14	)
Proceeds from Purchase Fees and Redemption Fees^(c)		0.00	^(d)		0.00	^(d)		—			0.00	^(d)		0.00	^(d)		0.00	^(d)
Net asset value, end of period	$	14.43		$	10.12		$	10.16		$	10.55		$	11.15		$	12.62
Total Return
Total return based on net asset value^(e)		46.24	%		(6.97	)%		(3.71	)%		(2.99	)%		(6.88	)%		9.29	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	302,474		$	201,923		$	191,724		$	199,086		$	205,228		$	220,388
Ratio of net expenses to average net assets		0.51	%		0.52	%*		0.51	%*		0.52	%		0.51	%		0.52	%*
Ratio of net investment income to average net assets		0.45	%		0.05	%*		0.65	%*		0.89	%		1.26	%		0.03	%*
Portfolio turnover rate^(f)		9	%		18	%		18	%		17	%		18	%		15	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Recommencement of investment operations. Class had no shareholders from April 11, 2016 to October 9, 2016. All shares of this class were redeemed on April 11, 2016 at $10.16. New shares were issued at $11.49 on October 10, 2016.

^(c) Calculated based upon average shares outstanding during the period.

^(d) Amount is less than $0.005 per share.

^(e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.

^(f) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
40

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Fund
Selected data for a Class 5 Share outstanding throughout each year:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Net asset value, beginning of year	$	10.14		$	10.56		$	11.16		$	12.64		$	9.92
From Investment Operations
Net investment income^(a)		0.07			0.10			0.11			0.16			0.14
Net realized and unrealized gain (loss) on investments and foreign currency transactions		4.62			0.06			(0.44	)		(1.02	)		2.73
Net increase (decrease) in net asset value from investment operations		4.69			0.16			(0.33	)		(0.86	)		2.87
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.08	)		(0.08	)		(0.10	)		(0.16	)		(0.15	)
Distributions from net realized gain on investments		(0.29	)		(0.50	)		(0.17	)		(0.46	)		—
Total Dividends and Distributions		(0.37	)		(0.58	)		(0.27	)		(0.62	)		(0.15	)
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(b)		0.00	^(b)		0.00	^(b)		0.00	^(b)		0.00	^(b)
Net asset value, end of year	$	14.46		$	10.14		$	10.56		$	11.16		$	12.64
Total Return
Total return based on net asset value^(c)		46.31	%		1.49	%		(2.94	)%		(6.83	)%		28.97	%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)	$	1,139,553		$	778,857		$	767,415		$	790,695		$	848,681
Ratio of net expenses to average net assets		0.46	%		0.46	%		0.47	%		0.46	%		0.46	%
Ratio of net investment income to average net assets		0.51	%		0.98	%		0.94	%		1.30	%		1.28	%
Portfolio turnover rate^(d)		9	%		18	%		17	%		18	%		15	%

^(a) Calculated based upon average shares outstanding during the year.

^(b) Amount is less than $0.005 per share.

^(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
41

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	12.02
From Investment Operations
Net investment income^(b)		0.01
Net realized and unrealized gain on investments and foreign currency transactions		2.71
Net increase in net asset value from investment operations		2.72
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.07	)
Distributions from net realized gain on investments		(0.29	)
Total Dividends and Distributions		(0.36	)
Net asset value, end of period	$	14.38
Total Return
Total return based on net asset value^(c)		22.62	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets		0.60	%*
Ratio of net investment income to average net assets		0.14	%*
Portfolio turnover rate^(d)		9	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
42

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	12.02
From Investment Operations
Net investment income^(b)		0.01
Net realized and unrealized gain on investments and foreign currency transactions		2.71
Net increase in net asset value from investment operations		2.72
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.07	)
Distributions from net realized gain on investments		(0.29	)
Total Dividends and Distributions		(0.36	)
Net asset value, end of period	$	14.38
Total Return
Total return based on net asset value^(c)		22.62	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets		0.60	%*
Ratio of net investment income to average net assets		0.14	%*
Portfolio turnover rate^(d)		9	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
43

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Choice Fund

	Value		% of Total Net Assets
Apparel Retailers	$	19,137,841		6.1	%
Asset Managers		11,422,218		3.7
Auto Parts		5,050,310		1.6
Banks		15,115,587		4.9
Beverages, Food & Tobacco		2,640,688		0.9
Biotechnology		6,716,620		2.2
Brewers		5,340,010		1.8
Broadline Retailers		2,687,827		0.9
Business Support Services		4,779,813		1.6
Chemicals		4,497,256		1.5
Clothing & Accessories		7,409,985		2.4
Commercial Services & Supplies		3,809,917		1.2
Containers & Packaging		5,057,622		1.6
Distillers & Vintners		4,026,326		1.3
Electronic & Electrical Equipment		17,368,422		5.6
Food & Drug Retailers/Wholesalers		13,621,528		4.5
Food Products		6,476,248		2.1
Footwear		5,530,301		1.8
General Industries		4,491,522		1.5
General Retailers		5,499,974		1.8
Hotels Restaurants and Leisure		2,836,292		0.9
Industrial Engineering		4,515,504		1.5
Industrial Machinery		25,588,918		8.2
Internet		3,723,939		1.2
Investment Services		2,501,894		0.8
Leisure Goods		3,435,377		1.1
Life Insurance		6,283,973		2.0
Media & Photography		12,853,210		4.2
Medical Equipment		10,868,405		3.6
Nondurable Household Products		6,797,502		2.2
Oil Equipment & Services		2,705,151		0.9
Personal Products		12,212,754		3.9
Pharmaceuticals		6,852,941		2.2
Property & Casualty Insurance		6,300,849		2.1
Recreational Products		4,258,926		1.4
Semiconductors		6,071,604		2.0
Speciality Finance		4,944,146		1.6
Specialized Consumer Services		15,934,433		5.2
Support Services		2,387,591		0.8
Technology Hardware & Equipment		8,606,818		2.8

Industry Diversification Table

Annual Report December 31, 2017

	Value		% of Total Net Assets
Telecommunication Services	$	3,356,833		1.1	%
Travel & Leisure		1,048,959		0.4
Total Value of Investments		304,766,034		99.1
Other assets less liabilities		2,860,426		0.9
Net Assets	$	307,626,460		100.0	%

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Choice Fund

	Shares		Value
COMMON STOCKS — 98.6%
AUSTRALIA — 6.5%
Brambles Ltd.		645,346	$	5,057,622
Cochlear Ltd.		52,260		6,966,394
Mesoblast Ltd. ^(a)		173,450		197,588
SEEK Ltd.		257,641		3,809,917
Treasury Wine Estates Ltd.		324,469		4,026,326
				20,057,847
BRAZIL — 1.0%
Raia Drogasil SA		114,700		3,173,077
CHINA — 5.5%
Alibaba Group Holding Ltd. ADR ^(a)		29,456		5,079,098
Baidu, Inc. ADR ^(a)		15,900		3,723,939
Ctrip.com International Ltd. ADR ^(a)		64,315		2,836,292
JD.com, Inc. ADR ^(a)		64,892		2,687,827
Tsingtao Brewery Co., Ltd., Class H		511,943		2,640,688
				16,967,844
DENMARK — 6.1%
Carlsberg A/S, B Shares		44,523		5,340,010
Novo Nordisk A/S, B Shares		127,531		6,852,941
Novozymes A/S, B Shares		114,194		6,519,032
				18,711,983
FINLAND — 1.4%
Kone Oyj, B Shares		79,868		4,289,118
FRANCE — 1.9%
Legrand SA		76,161		5,855,159
GERMANY — 5.5%
adidas AG		27,653		5,530,301
Infineon Technologies AG		179,913		4,899,775
Zalando SE 144A ^(a)(b)		124,282		6,553,101
				16,983,177

The accompanying notes are an integral part of the financial statements.
46

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Choice Fund

	Shares		Value
HONG KONG — 2.4%
AIA Group Ltd.		738,800	$	6,283,973
Cafe de Coral Holdings Ltd.		421,702		1,157,773
				7,441,746
INDIA — 1.4%
Mahindra & Mahindra Ltd. GDR		133,399		3,108,197
MakeMytrip Ltd. ^(a)		35,141		1,048,959
				4,157,156
JAPAN — 21.3%
Advantest Corp.		172,000		3,173,285
DENSO Corp.		84,300		5,050,310
Japan Exchange Group, Inc.		144,200		2,501,894
Kakaku.com, Inc.		213,700		3,607,400
Kao Corp.		100,600		6,797,502
MS&AD Insurance Group Holdings, Inc.		186,800		6,300,849
Olympus Corp.		102,000		3,902,011
Pigeon Corp.		108,500		4,122,473
Rakuten, Inc.		293,400		2,681,874
Shimano, Inc.		30,300		4,258,926
Shiseido Co., Ltd.		167,900		8,090,281
SMC Corp.		17,500		7,181,727
SoftBank Group Corp.		42,400		3,356,833
Sugi Holdings Co., Ltd.		34,600		1,762,623
Suruga Bank Ltd.		130,400		2,788,262
				65,576,250
NETHERLANDS — 0.9%
ASML Holding NV		16,496		2,867,961
PORTUGAL — 2.1%
Jeronimo Martins SGPS SA		325,246		6,320,022
SINGAPORE — 3.5%
Jardine Matheson Holdings Ltd.		48,000		2,912,280
Jardine Strategic Holdings Ltd.		39,900		1,579,242
United Overseas Bank Ltd.		315,273		6,214,982
				10,706,504

The accompanying notes are an integral part of the financial statements.
47

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Choice Fund

	Shares		Value
SOUTH AFRICA — 3.7%
Clicks Group Ltd.		296,604	$	4,342,201
Naspers Ltd., N Shares		25,181		6,976,480
				11,318,681
SOUTH KOREA — 1.1%
Samsung Electronics Co., Ltd. GDR 144A ^(b)		2,901		3,435,377
SPAIN — 3.0%
Distribuidora Internacional de Alimentacion SA		458,700		2,365,806
Inditex SA		199,492		6,936,673
				9,302,479
SWEDEN — 5.8%
Atlas Copco AB, B Shares		180,311		6,910,794
Investor AB, B Shares		108,406		4,944,146
Svenska Handelsbanken AB, A Shares		447,265		6,112,343
				17,967,283
SWITZERLAND — 8.2%
Compagnie Financiere Richemont SA		47,456		4,297,989
Mettler-Toledo International, Inc. ^(a)		13,462		8,339,978
Nestle SA		75,326		6,476,248
Schindler Holding AG, Participating Certificates		22,979		5,284,953
u-blox Holding AG ^(a)		4,263		839,082
				25,238,250
TAIWAN — 2.0%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		153,130		6,071,604
UNITED KINGDOM — 15.3%
ASOS PLC ^(a)		62,606		5,648,067
Auto Trader Group PLC 144A ^(b)		958,588		4,566,061
Burberry Group PLC		129,076		3,111,996
Capita PLC		441,893		2,387,591
Hargreaves Lansdown PLC		310,745		7,546,670
Intertek Group PLC		68,348		4,779,813
John Wood Group PLC		309,174		2,705,151
Johnson Matthey PLC		108,529		4,497,256
Jupiter Fund Management PLC		458,023		3,875,548

The accompanying notes are an integral part of the financial statements.
48

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Choice Fund

	Shares		Value
Rightmove PLC		96,839	$	5,876,730
Weir Group PLC (The)		67,065		1,922,326
				46,917,209
Total Common Stocks
(cost $216,014,088)				303,358,727
PREFERRED STOCKS — 0.5%
GERMANY — 0.5%
Sartorius AG (cost $1,513,799)		14,815		1,407,307
TOTAL INVESTMENTS — 99.1%
(cost $217,527,887)			$	304,766,034
Other assets less liabilities — 0.9%				2,860,426
NET ASSETS — 100.0%			$	307,626,460

^(a) Non-income producing security.

ADR — American Depositary Receipt.

GDR — Global Depositary Receipt.

The accompanying notes are an integral part of the financial statements.
49

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Choice Fund

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Australia	$	197,588	$	19,860,259	$	—	$	20,057,847
Brazil		—		3,173,077		—		3,173,077
China		16,967,844		—		—		16,967,844
Denmark		—		18,711,983		—		18,711,983
Finland		—		4,289,118		—		4,289,118
France		—		5,855,159		—		5,855,159
Germany		—		16,983,177		—		16,983,177
Hong Kong		—		7,441,746		—		7,441,746
India		4,157,156		—		—		4,157,156
Japan		—		65,576,250		—		65,576,250
Netherlands		—		2,867,961		—		2,867,961
Portugal		6,320,022		—		—		6,320,022
Singapore		1,579,242		9,127,262		—		10,706,504
South Africa		4,342,201		6,976,480		—		11,318,681
South Korea		—		3,435,377		—		3,435,377
Spain		—		9,302,479		—		9,302,479
Sweden		—		17,967,283		—		17,967,283
Switzerland		9,179,060		16,059,190		—		25,238,250
Taiwan		6,071,604		—		—		6,071,604
United Kingdom		6,488,387		40,428,822		—		46,917,209
Total Common Stocks		55,303,104		248,055,623		—		303,358,727
Preferred Stocks
Germany		—		1,407,307		—		1,407,307
Total	$	55,303,104	$	249,462,930	$	—	$	304,766,034

For the EAFE Choice Fund, fair value of Level 2 and Level 1 investments at December 31, 2016 was $258,450,244 and $30,759,359, respectively. $19,613,711 was transferred out of Level 2 into Level 1 during the year ended December 31, 2017. Transfers into Level 1 and out of Level 2 resulted when pricing was based on quoted market prices.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
50

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Choice Fund

ASSETS
Investments, at value (cost $217,527,887)	$	304,766,034
Cash		2,868,111
Dividends receivable		158,245
Tax reclaims receivable		481,438
Prepaid assets		30,682
Total Assets		308,304,510
LIABILITIES
Advisory fee payable		293,117
Servicing fee payable		137,706
Trustee fee payable		3,876
Accrued expenses		243,351
Total Liabilities		678,050
NET ASSETS	$	307,626,460
COMPOSITION OF NET ASSETS
Paid-in capital	$	222,001,469
Distributions in excess of net investment income		(1,798,467	)
Accumulated net realized gain on investments and foreign currency transactions		168,925
Net unrealized appreciation in value of investments and foreign currencies		87,254,533
	$	307,626,460
NET ASSET VALUE, PER SHARE
Class 2 ($280,488,443 / 17,407,495 shares outstanding), unlimited authorized, no par value	$	16.11
Class 3 ($26,931,505 / 1,656,041 shares outstanding), unlimited authorized, no par value	$	16.26
Class K ($5,783 / 359 shares outstanding), unlimited authorized, no par value	$	16.10	*
Institutional Class ($200,729 / 12,477 shares outstanding), unlimited authorized, no par value	$	16.09

* _{Net assets divided by shares does not recalculate using values rounded to the dollar.}

The accompanying notes are an integral part of the financial statements.
51

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford EAFE Choice Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $534,414)	$	5,721,814
Interest		719
Total Investment Income		5,722,533
EXPENSES
Advisory fee (Note B)		1,159,935
Shareholder Servicing fees — Class 1 Shares (Note B)		3
Shareholder Servicing fees — Class 2 Shares (Note B)		522,536
Shareholder Servicing fees — Class 3 Shares (Note B)		24,015
Administration & Supervisory Fee — Class K Shares (Note B)		6
Administration & Supervisory Fee — Institutional Class Shares (Note B)		27
Fund accounting		189,861
Custody		68,939
Transfer agency		59,355
Legal		53,259
Professional fees		86,194
Trustees' fees		14,663
Insurance		2,427
Miscellaneous		21,659
Total Expenses		2,202,879
Net Investment Income		3,519,654
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments		10,793,199
Foreign currency transactions		(67,452	)
		10,725,747
Net change in unrealized appreciation on:
Investments		74,228,563
Translation of assets and liabilities denominated in foreign currencies		34,346
		74,262,909
Net realized and unrealized gain on investments and foreign currency transactions		84,988,656
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	88,508,310

The accompanying notes are an integral part of the financial statements.
52

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford EAFE Choice Fund

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income	$	3,519,654		$	4,427,859
Net realized gain (loss) from investments and foreign currency transactions		10,725,747			(3,576,184	)
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		74,262,909			1,919,705
Net increase in net assets from operations		88,508,310			2,771,380
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class 1		—			(39	)
Class 2		(4,282,724	)		(3,413,749	)
Class 3		(432,754	)		(260,142	)
Class K		(92	)		—
Institutional Class		(3,468	)		—
Total Dividends and Distributions		(4,719,038	)		(3,673,930	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 1		1,497			10,978,072
Class 2*		2,010,737			64,883,358
Class 3		2,591,699			2,715,447
Class K		5,000			—
Institutional Class		199,000			—
Purchase fees:
Class 1		—			7,278
Class 2		1,361			100,782
Class 3		100			8,214
Redemption fees:
Class 1		—			781
Class 2		4,257			24,442
Class 3		317			1,724
Dividends reinvested:
Class 1		—			39
Class 2		4,282,725			3,413,749
Class 3		432,754			260,142
Class K		92			—
Institutional Class		98			—
Cost of shares redeemed:
Class 1*		(4,741	)		(30,703,470	)
Class 2		(76,008,120	)		(24,097,363	)
Class 3		(1,910,571	)		(2,710,863	)
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest		(68,393,795	)		24,882,332
Total Increase in Net Assets		15,395,477			23,979,782
NET ASSETS
Beginning of year		292,230,983			268,251,201
End of year (including distributions in excess of net investment income of $1,798,467 and $591,434, respectively)	$	307,626,460		$	292,230,983

* _{Class 1 shareholders were converted to Class 2 during the period. Please refer to Notes A and D.}

The accompanying notes are an integral part of the financial statements.
53

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Choice Fund
Selected data for a Class 2 Share outstanding throughout each year:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Net asset value, beginning of year	$	12.46		$	12.55		$	12.43		$	13.13		$	11.19
From Investment Operations
Net investment income^(a)		0.16			0.19			0.17			0.16			0.17
Net realized and unrealized gain (loss) on investments and foreign currency transactions		3.74			(0.13	)		0.09	^(e)		(0.75	)		2.19
Net increase (decrease) in net asset value from investment operations		3.90			0.06			0.26			(0.59	)		2.36
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.25	)		(0.16	)		(0.15	)		(0.14	)		(0.43	)
Total Dividends and Distributions		(0.25	)		(0.16	)		(0.15	)		(0.14	)		(0.43	)
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(b)		0.01			0.01			0.03			0.01
Net asset value, end of year	$	16.11		$	12.46		$	12.55		$	12.43		$	13.13
Total Return
Total return based on net asset value^(c)		31.28	%		0.59	%		2.16	%		(4.25	)%		21.20	%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)	$	280,488		$	272,338		$	229,032		$	110,234		$	94,942
Ratio of net expenses to average net assets		0.67	%		0.65	%		0.65	%		0.66	%		0.67	%
Ratio of net investment income to average net assets		1.06	%		1.46	%		1.29	%		1.23	%		1.41	%
Portfolio turnover rate^(d)		12	%		23	%		16	%		23	%		25	%

^(a) Calculated based upon average shares outstanding during the year.

^(b) Amount is less than $0.005 per share.

^(d) Portfolio turnover rate calculated at Fund level.

^(e) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.

The accompanying notes are an integral part of the financial statements.
54

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Choice Fund
Selected data for a Class 3 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Period July 7, 2014^(c)through December 31, 2014			For the Period January 1, 2013^(c)through April 16, 2013
Net asset value, beginning of period	$	12.58		$	12.67		$	12.54		$	14.08		$	11.22
From Investment Operations
Net investment income^(a)		0.16			0.20			0.20			0.05			0.07
Net realized and unrealized gain (loss) on investments and foreign currency transactions		3.79			(0.13	)		0.07	^(f)		(1.44	)		0.79
Net increase (decrease) in net asset value from investment operations		3.95			0.07			0.27			(1.39	)		0.86
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.27	)		(0.17	)		(0.16	)		(0.15	)		—
Total Dividends and Distributions		(0.27	)		(0.17	)		(0.16	)		(0.15	)		—
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(d)		0.01			0.02			0.00	^(d)		0.00	^(d)
Net asset value, end of period	$	16.26		$	12.58		$	12.67		$	12.54		$	12.08
Total Return
Total return based on net asset value^(b)		31.37	%		0.66	%		2.25	%		(9.86	)%		7.66	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	26,932		$	19,890		$	19,703		$	18,758		$	—	^(d)
Ratio of net expenses to average net assets		0.60	%		0.58	%		0.58	%		0.58	%*		0.55	%*
Ratio of net investment income to average net assets		1.09	%		1.59	%		1.51	%		0.71	%*		2.29	%*
Portfolio turnover rate^(e)		12	%		23	%		16	%		23	%		5	%

* Annualized.

^(a) Calculated based upon average shares outstanding during the period.

^(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.

^(c) Recommencement of investment operations. Class had no shareholders from April 17, 2013 to July 6, 2014. All shares of this class were redeemed at $12.08 on April 16, 2013. New shares were issued at $14.08 on July 7, 2014.

^(d) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

^(f) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.

The accompanying notes are an integral part of the financial statements.
55

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Choice Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	14.15
From Investment Operations
Net investment income^(b)		0.08
Net realized and unrealized gain on investments and foreign currency transactions		2.13
Net increase in net asset value from investment operations		2.21
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.26	)
Total Dividends and Distributions		(0.26	)
Net asset value, end of period	$	16.10
Total Return
Total return based on net asset value^(c)		15.63	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets		0.68	%*
Ratio of net investment income to average net assets		0.73	%*
Portfolio turnover rate^(d)		12	%

* Annualized.

^(a) Commencement of operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
56

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Choice Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	14.15
From Investment Operations
Net investment income^(b)		0.01
Net realized and unrealized gain on investments and foreign currency transactions		2.21
Net increase in net asset value from investment operations		2.22
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.28	)
Total Dividends and Distributions		(0.28	)
Net asset value, end of period	$	16.09
Total Return
Total return based on net asset value^(c)		15.68	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	201
Ratio of net expenses to average net assets		0.68	%*
Ratio of net investment income to average net assets		0.14	%*
Portfolio turnover rate^(d)		12	%

* Annualized.

^(a) Commencement of operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
57

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Pure Fund

	Value		% of Total Net Assets
Apparel Retailers	$	23,969,162		7.9	%
Asset Managers		14,212,334		4.6
Auto Parts		5,649,398		1.9
Banks		17,929,660		5.9
Biotechnology		6,884,006		2.3
Brewers		5,369,875		1.8
Business Support Services		6,244,849		2.1
Chemicals		6,067,767		2.0
Clothing & Accessories		10,089,818		3.3
Commercial Services & Supplies		4,432,893		1.5
Containers & Packaging		4,400,225		1.4
Distillers & Vintners		5,048,899		1.7
Electronic & Electrical Equipment		18,241,178		5.9
Food & Drug Retailers		1,757,529		0.6
Food Products		8,092,086		2.7
Food Retailers & Wholesalers		10,041,315		3.3
Footwear		6,872,429		2.2
General Industries		5,272,441		1.8
Industrial Engineering		1,501,159		0.5
Industrial Machinery		27,436,311		9.0
Investment Services		2,246,847		0.7
Life Insurance		6,938,907		2.3
Media Agencies		7,493,090		2.5
Medical Equipment		12,744,201		4.2
Nondurable Household Products		8,513,770		2.8
Oil Equipment & Services		2,611,329		0.9
Personal Products		12,120,183		4.0
Pharmaceuticals		7,386,535		2.4
Property & Casualty Insurance		7,943,522		2.6
Recreational Products		6,592,199		2.2
Speciality Finance		8,015,229		2.6
Specialized Consumer Services		11,974,283		4.0
Support Services		2,518,400		0.8
Technology Hardware & Equipment		10,171,716		3.3
Telecommunication Services		4,029,782		1.3
Total Value of Investments		300,813,327		99.0
Other assets less liabilities		3,037,154		1.0
Net Assets	$	303,850,481		100.0	%

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Pure Fund

	Shares		Value
COMMON STOCKS — 98.5%
AUSTRALIA — 7.3%
Brambles Ltd.		561,463	$	4,400,225
Cochlear Ltd.		59,846		7,977,627
Mesoblast Ltd. ^(a)		181,023		206,215
SEEK Ltd.		299,769		4,432,893
Treasury Wine Estates Ltd.		406,875		5,048,899
				22,065,859
DENMARK — 6.4%
Carlsberg A/S, B Shares		44,772		5,369,875
Novo Nordisk A/S, B Shares		137,461		7,386,535
Novozymes A/S, B Shares		116,975		6,677,791
				19,434,201
FINLAND — 1.6%
Kone Oyj, B Shares		89,189		4,789,680
FRANCE — 2.0%
Legrand SA		80,839		6,214,797
GERMANY — 6.5%
adidas AG		34,364		6,872,429
Infineon Technologies AG		200,993		5,473,870
Zalando SE 144A ^(a)(b)		142,617		7,519,863
				19,866,162
HONG KONG — 2.3%
AIA Group Ltd.		815,800		6,938,907
JAPAN — 24.6%
Advantest Corp.		184,500		3,403,902
DENSO Corp.		94,300		5,649,398
Japan Exchange Group, Inc.		129,500		2,246,847
Kakaku.com, Inc.		229,600		3,875,803
Kao Corp.		126,000		8,513,770
MS&AD Insurance Group Holdings, Inc.		235,500		7,943,522
Olympus Corp.		124,600		4,766,574
Pigeon Corp.		108,600		4,126,272

The accompanying notes are an integral part of the financial statements.
59

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Pure Fund

	Shares		Value
Rakuten, Inc.		368,800	$	3,371,081
Shimano, Inc.		46,900		6,592,199
Shiseido Co., Ltd.		165,900		7,993,911
SMC Corp.		18,000		7,386,919
SoftBank Group Corp.		50,900		4,029,782
Sugi Holdings Co., Ltd.		34,500		1,757,529
Suruga Bank Ltd.		141,200		3,019,192
				74,676,701
NETHERLANDS — 1.2%
ASML Holding NV		21,750		3,781,410
PORTUGAL — 2.3%
Jeronimo Martins SGPS SA		365,841		7,108,844
SINGAPORE — 4.2%
Jardine Matheson Holdings Ltd.		86,900		5,272,441
United Overseas Bank Ltd.		372,089		7,334,997
				12,607,438
SPAIN — 3.8%
Distribuidora Internacional de Alimentacion SA		568,569		2,932,471
Inditex SA		243,126		8,453,900
				11,386,371
SWEDEN — 7.5%
Atlas Copco AB, A Shares		138,119		5,960,674
Atlas Copco AB, B Shares		35,100		1,345,281
Investor AB, B Shares		175,743		8,015,229
Svenska Handelsbanken AB, A Shares		554,328		7,575,471
				22,896,655
SWITZERLAND — 9.8%
Compagnie Financiere Richemont SA		67,634		6,125,468
Mettler-Toledo International, Inc. ^(a)		13,918		8,622,479
Nestle SA		94,120		8,092,086
Schindler Holding AG		26,246		6,036,332
u-blox Holding AG ^(a)		4,656		916,436
				29,792,801

The accompanying notes are an integral part of the financial statements.
60

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Pure Fund

	Shares		Value
UNITED KINGDOM — 19.0%
ASOS PLC ^(a)		88,625	$	7,995,399
Auto Trader Group PLC 144A ^(b)		992,459		4,727,399
Burberry Group PLC		164,429		3,964,350
Capita PLC		466,103		2,518,400
Hargreaves Lansdown PLC		404,098		9,813,817
Intertek Group PLC		89,297		6,244,849
John Wood Group PLC		298,451		2,611,329
Johnson Matthey PLC		146,429		6,067,767
Jupiter Fund Management PLC		519,829		4,398,517
Rightmove PLC		123,474		7,493,090
Weir Group PLC (The)		66,894		1,917,425
				57,752,342
Total Common Stocks
(cost $249,146,900)				299,312,168
PREFERRED STOCKS — 0.5%
GERMANY — 0.5%
Sartorius AG (cost $1,541,845)		15,803		1,501,159
TOTAL INVESTMENTS — 99.0%
(cost $250,688,745)			$	300,813,327
Other assets less liabilities — 1.0%				3,037,154
NET ASSETS — 100.0%			$	303,850,481

^(a) Non-income producing security.

The accompanying notes are an integral part of the financial statements.
61

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Pure Fund

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Australia	$	206,215	$	21,859,644	$	—	$	22,065,859
Denmark		—		19,434,201		—		19,434,201
Finland		—		4,789,680		—		4,789,680
France		—		6,214,797		—		6,214,797
Germany		—		19,866,162		—		19,866,162
Hong Kong		—		6,938,907		—		6,938,907
Japan		—		74,676,701		—		74,676,701
Netherlands		—		3,781,410		—		3,781,410
Portugal		7,108,844		—		—		7,108,844
Singapore		—		12,607,438		—		12,607,438
Spain		—		11,386,371		—		11,386,371
Sweden		—		22,896,655		—		22,896,655
Switzerland		9,538,915		20,253,886		—		29,792,801
United Kingdom		6,644,824		51,107,518		—		57,752,342
Total Common Stocks		23,498,798		275,813,370		—		299,312,168
Preferred Stocks
Germany		—		1,501,159		—		1,501,159
Total	$	23,498,798	$	277,314,529	$	—	$	300,813,327

For the EAFE Pure Fund, fair value of Level 2 and Level 1 investments at December 31, 2016 was $165,001,501 and $5,124,866, respectively. $7,845,222 was transferred out of Level 2 into Level 1 during the year ended December 31, 2017. Transfers into Level 1 and out of Level 2 resulted when pricing was based on quoted market prices.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
62

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford EAFE Pure Fund

ASSETS
Investments, at value (cost $250,688,745)	$	300,813,327
Cash		2,982,693
Tax reclaims receivable		422,837
Dividends receivable		190,137
Prepaid assets		30,646
Total Assets		304,439,640
LIABILITIES
Advisory fee payable		274,579
Servicing fee payable		119,071
Trustee fee payable		3,551
Accrued expenses		191,958
Total Liabilities		589,159
NET ASSETS	$	303,850,481
COMPOSITION OF NET ASSETS
Paid-in capital	$	253,944,507
Distributions in excess of net investment income		(1,994,694	)
Accumulated net realized gain on investments and foreign currency transactions		1,761,444
Net unrealized appreciation in value of investments and foreign currencies		50,139,224
	$	303,850,481
NET ASSET VALUE, PER SHARE
Class 2 ($221,316,011 / 18,357,044 shares outstanding), unlimited authorized, no par value	$	12.06
Class 3 ($82,523,036 / 6,778,981 shares outstanding), unlimited authorized, no par value	$	12.17
Class K ($5,717 / 474 shares outstanding), unlimited authorized, no par value	$	12.06
Institutional Class ($5,717 / 474 shares outstanding), unlimited authorized, no par value	$	12.06

The accompanying notes are an integral part of the financial statements.
63

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford EAFE Pure Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $477,877)	$	5,203,228
Interest		176
Total Investment Income		5,203,404
EXPENSES
Advisory fee (Note B)		967,251
Shareholder Servicing fees — Class 1 Shares (Note B)		3
Shareholder Servicing fees — Class 2 Shares (Note B)		366,038
Shareholder Servicing fees — Class 3 Shares (Note B)		61,032
Administration & Supervisory Fee — Class K Shares (Note B)		6
Administration & Supervisory Fee — Institutional Class Shares (Note B)		6
Fund accounting		170,447
Custody		41,224
Transfer agency		55,564
Legal		45,193
Professional fees		28,149
Trustees' fees		12,456
Insurance		2,140
Miscellaneous		20,624
Total Expenses		1,770,133
Net Investment Income		3,433,271
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments		5,875,452
Foreign currency transactions		(123,473	)
		5,751,979
Net change in unrealized appreciation on:
Investments		56,315,923
Translation of assets and liabilities denominated in foreign currencies		31,467
		56,347,390
Net realized and unrealized gain on investments and foreign currency transactions		62,099,369
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	65,532,640

The accompanying notes are an integral part of the financial statements.
64

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford EAFE Pure Fund

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income	$	3,433,271		$	3,001,397
Net realized gain (loss) from investments and foreign currency transactions		5,751,979			(2,342,946	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		56,347,390			(1,001,654	)
Net increase (decrease) in net assets from operations		65,532,640			(343,203	)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class 1		—			(44	)
Class 2		(3,944,235	)		(2,430,620	)
Class 3		(1,529,526	)		—
Class K		(105	)		—
Institutional Class		(105	)		—
Total Dividends and Distributions		(5,473,971	)		(2,430,664	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 1		1,497			2,994
Class 2*		19,968,711			—
Class 3		74,325,352			—
Class K		5,000			—
Institutional Class		5,000			—
Purchase fees:
Class 1		5			—
Class 2		198,413			6
Class 3		1			—
Redemption fees:
Class 2		3,003			—
Dividends reinvested:
Class 1		—			44
Class 2		3,944,235			2,430,621
Class 3		1,529,525			—
Class K		105			—
Institutional Class		105			—
Cost of shares redeemed:
Class 1*		(4,715	)		—
Class 2		(23,503,003	)		—
Class 3		(5,000,000	)		—
Increase in Net Assets from Transactions in Shares of Beneficial Interest		71,473,234			2,433,665
Total Increase (Decrease) in Net Assets		131,531,903			(340,202	)
NET ASSETS
Beginning of year		172,318,578			172,658,780
End of year (including distributions in excess of net investment income of $1,994,694 and $28,102, respectively)	$	303,850,481		$	172,318,578

*_{Class 1 shareholders were converted to Class 2 during the period. Please refer to Notes A and D.}

The accompanying notes are an integral part of the financial statements.
65

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Pure Fund
Selected data for a Class 2 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Period April 15, 2014^(a)through December 31, 2014
Net asset value, beginning of period	$	9.55		$	9.70		$	9.36		$	10.00
From Investment Operations
Net investment income^(b)		0.14			0.17			0.13			0.08
Net realized and unrealized gain (loss) on investments and foreign currency transactions		2.58			(0.18	)		0.27	^(f)		(0.69	)
Net increase (decrease) in net asset value from investment operations		2.72			(0.01	)		0.40			(0.61	)
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.22	)		(0.14	)		(0.09	)		(0.06	)
Distributions from net realized gain on investments		—			—			—			(0.00	)^(c)
Total Dividends and Distributions		(0.22	)		(0.14	)		(0.09	)		(0.06	)
Proceeds from Purchase Fees and Redemption Fees^(b)		0.01			(0.00	)^(c)		0.03			0.03
Net asset value, end of period	$	12.06		$	9.55		$	9.70		$	9.36
Total Return
Total return based on net asset value^(d)		28.59	%		(0.20	)%		4.61	%		(5.79	)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	221,316		$	172,316		$	172,659		$	43,223
Ratio of expenses to average net assets, before waiver		0.66	%		0.66	%		0.66	%		0.70	%*
Ratio of net expenses to average net assets, after waiver		0.66	%		0.66	%		0.66	%		0.67	%*
Ratio of net investment income to average net assets		1.22	%		1.73	%		1.36	%		1.17	%*
Portfolio turnover rate^(e)		21	%		13	%		18	%		5	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
66

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Pure Fund
Selected data for a Class 3 Share outstanding throughout the period:

	For the Period March 24, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.49
From Investment Operations
Net investment income^(b)		0.12
Net realized and unrealized gain on investments and foreign currency transactions		1.79
Net increase in net asset value from investment operations		1.91
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.23	)
Total Dividends and Distributions		(0.23	)
Proceeds from Purchase Fees and Redemption Fees^(b)		0.00	^(c)
Net asset value, end of period	$	12.17
Total Return
Total return based on net asset value^(d)		18.25	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	82,523
Ratio of net expenses to average net assets		0.58	%*
Ratio of net investment income to average net assets		1.32	%*
Portfolio turnover rate^(e)		21	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
67

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Pure Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.74
From Investment Operations
Net investment income^(b)		0.07
Net realized and unrealized gain on investments and foreign currency transactions		1.47
Net increase in net asset value from investment operations		1.54
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.22	)
Total Dividends and Distributions		(0.22	)
Net asset value, end of period	$	12.06
Total Return
Total return based on net asset value^(c)		14.39	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets		0.66	%*
Ratio of net investment income to average net assets		0.87	%*
Portfolio turnover rate^(d)		21	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
68

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford EAFE Pure Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.74
From Investment Operations
Net investment income^(b)		0.07
Net realized and unrealized gain on investments and foreign currency transactions		1.47
Net increase in net asset value from investment operations		1.54
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.22	)
Total Dividends and Distributions		(0.22	)
Net asset value, end of period	$	12.06
Total Return
Total return based on net asset value^(c)		14.39	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets		0.66	%*
Ratio of net investment income to average net assets		0.87	%*
Portfolio turnover rate^(d)		21	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
69

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Emerging Markets Fund

	Value		% of Total Net Assets
Auto Manufacturers	$	17,218,227		1.0	%
Automobiles & Parts		70,748,527		4.1
Banks		327,629,789		19.2
Broadline Retailers		36,664,733		2.1
Building Materials & Fixtures		17,940,048		1.1
Commodity Chemicals		18,968,474		1.1
Computer Services		19,819,096		1.2
Construction & Building Materials		32,863,311		1.9
Electronic & Electrical Equipment		164,529,622		9.7
Food & Staples		6,393,665		0.4
Food Producers & Processors		9,204,876		0.5
General Financial		9,300,767		0.5
General Industrials		10,704,597		0.6
General Retailers		7,171,340		0.4
Household Goods		16,039,292		0.9
Industrial Engineering		10,893,340		0.6
Insurance		27,139,876		1.6
Internet, Software & Services		210,259,282		12.5
Leisure Goods		26,259,392		1.5
Life Insurance		80,217,582		4.7
Media & Photography		54,450,123		3.2
Metals & Mining		24,490,780		1.4
Mortgage Finance		45,912,635		2.7
Nonlife Insurance		24,329,315		1.4
Oil, Gas & Consumable fuels		138,065,410		8.1
Personal Goods		8,751,429		0.5
Real Estate Holding & Development		38,108,025		2.3
Semiconductors		86,381,255		5.1
Specialized Consumer Services		88,761,964		5.2
Technology Hardware & Equipment		37,781,910		2.2
Textiles and Apparel		4,775,705		0.3
Toys		11,440,332		0.7
Transportation Services		13,666,935		0.8
Total Value of Investments		1,696,881,654		99.5
Other assets less liabilities		8,908,581		0.5
Net Assets	$	1,705,790,235		100.0	%

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Emerging Markets Fund

	Shares		Value
COMMON STOCKS — 95.3%
ARGENTINA — 1.4%
MercadoLibre, Inc.		74,073	$	23,307,810
BRAZIL — 4.4%
B3 SA — Brasil Bolsa Balcao		1,355,200		9,300,767
Banco Bradesco SA ADR		3,087,835		31,619,431
Kroton Educacional SA		1,292,400		7,171,340
Petroleo Brasileiro SA ADR ^(a)		2,626,015		27,021,694
				75,113,232
CHINA — 30.1%
Alibaba Group Holding Ltd. ADR ^(a)		514,771		88,761,964
Baidu, Inc. ADR ^(a)		42,086		9,856,962
China Merchants Bank Co., Ltd., Class H		9,249,000		36,617,370
China Vanke Co., Ltd., Class H		6,279,000		24,987,200
CNOOC Ltd.		30,694,000		44,064,831
Geely Automobile Holdings Ltd.		4,505,000		15,517,029
JD.com, Inc. ADR ^(a)		558,719		23,142,141
Minth Group Ltd.		2,336,000		14,047,517
Ping An Insurance Group Co. of China Ltd., Class H		7,734,000		80,217,582
Shenzhou International Group Holdings Ltd.		919,000		8,751,429
SINA Corp. ^(a)		95,160		9,545,500
Sohu.com, Inc. ^(a)		144,558		6,266,589
Tencent Holdings Ltd.		2,373,800		122,863,033
ZTE Corp., Class H ^(a)		7,761,800		29,011,657
				513,650,804
HONG KONG — 5.6%
AAC Technologies Holdings, Inc.		1,070,000		18,937,353
Brilliance China Automotive Holdings Ltd.		7,084,000		18,825,045
China Taiping Insurance Holdings Co., Ltd.		4,157,610		15,517,689
Haier Electronics Group Co., Ltd. ^(a)		5,884,300		16,039,292
Kingsoft Corp. Ltd.		3,453,000		11,440,332
Sunny Optical Technology Group Co., Ltd.		1,173,000		14,893,883
				95,653,594

The accompanying notes are an integral part of the financial statements.
71

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Emerging Markets Fund

	Shares		Value
INDIA — 13.2%
Ambuja Cements Ltd.		1,981,244	$	8,444,596
Asian Paints Ltd.		638,409		11,571,674
Housing Development Finance Corp., Ltd.		1,714,524		45,912,635
ICICI Bank Ltd.		4,713,129		23,099,365
Mahindra & Mahindra Ltd.		1,465,590		17,218,227
Maruti Suzuki India Ltd.		146,838		22,358,936
Reliance Industries Ltd.		4,646,677		66,978,885
Tata Consultancy Services Ltd.		468,737		19,819,096
UltraTech Cement Ltd.		140,450		9,495,452
				224,898,866
INDONESIA — 2.1%
Bank Mandiri Persero Tbk PT		20,583,700		12,120,844
Bank Rakyat Indonesia Persero Tbk PT		89,047,000		23,890,258
				36,011,102
MEXICO — 3.8%
Alfa SAB de CV, Class A		9,721,900		10,704,597
Cemex SAB de CV ADR ^(a)		2,838,885		21,291,637
Grupo Financiero Banorte SAB de CV, Class O		3,592,000		19,716,952
Wal-Mart de Mexico SAB de CV		5,514,060		13,522,592
				65,235,778
PHILIPPINES — 0.8%
Ayala Land, Inc.		6,596,100		5,884,347
SM Prime Holdings, Inc.		9,633,200		7,236,478
				13,120,825
RUSSIA — 6.7%
Magnit PJSC GDR Reg S		234,920		6,393,665
MMC Norilsk Nickel PJSC ADR		1,312,489		24,490,780
Sberbank of Russia PJSC ADR		4,940,210		83,269,907
				114,154,352
SOUTH AFRICA — 3.2%
Naspers Ltd., N Shares		196,533		54,450,123

The accompanying notes are an integral part of the financial statements.
72

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Emerging Markets Fund

	Shares		Value
SOUTH KOREA — 10.9%
DB Insurance Co., Ltd. ^(a)		161,333	$	10,729,914
Doosan Bobcat, Inc. ^(a)		326,306		10,893,340
Hyundai Marine & Fire Insurance Co., Ltd. ^(a)		264,999		11,622,187
LG Chem Ltd.		50,140		18,968,474
NAVER Corp. ^(a)		24,460		19,870,807
NCSoft Corp. ^(a)		38,378		16,042,366
Netmarble Games Corp. 144A ^(a)(b)		70,016		12,299,327
Orion Corp. ^(a)		94,461		9,204,876
Samsung Electronics Co., Ltd.		26,397		62,716,930
Samsung Fire & Marine Insurance Co., Ltd. ^(a)		54,541		13,599,401
				185,947,622
TAIWAN — 8.3%
Advanced Semiconductor Engineering, Inc.		5,371,332		6,875,471
Eclat Textile Co., Ltd.		479,360		4,775,705
Hon Hai Precision Industry Co., Ltd.		8,734,848		27,773,231
Largan Precision Co., Ltd.		104,000		13,960,065
Pegatron Corp.		3,640,000		8,770,253
Taiwan Semiconductor Manufacturing Co., Ltd.		10,383,310		79,505,784
				141,660,509
THAILAND — 3.7%
Airports of Thailand PCL NVDR		6,563,500		13,666,935
Kasikornbank PCL NVDR		2,896,900		20,574,720
Siam Commercial Bank PCL NVDR		6,112,200		28,054,815
				62,296,470
TURKEY — 1.0%
Turkiye Garanti Bankasi AS		6,317,484		17,852,213
UNITED STATES — 0.1%
Weibo Corp. ADR ^(a)		24,224		2,506,215
Total Common Stocks
(cost $1,032,936,887)				1,625,859,515

The accompanying notes are an integral part of the financial statements.
73

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Emerging Markets Fund

	Shares		Value
PREFERRED STOCKS — 4.2%
BRAZIL — 1.8%
Banco Bradesco SA		3,021,929	$	30,813,914
SOUTH KOREA — 2.4%
Samsung Electronics Co., Ltd.		20,647		40,208,225
Total Preferred Stocks
(cost $37,975,665)				71,022,139
TOTAL INVESTMENTS — 99.5%
(cost $1,070,912,552)			$	1,696,881,654
Other assets less liabilities — 0.5%				8,908,581
NET ASSETS — 100.0%			$	1,705,790,235

^(a) Non-income producing security.

ADR — American Depositary Receipt.

GDR — Global Depositary Receipt.

NVDR — Non-Voting Depositary Receipt.

Reg S — Regulation S ("Reg S") under the Securities Act of 1933, as amended ("1933 Act") is a safe harbor that defines when an offering of securities will be deemed to come to rest abroad and therefore is not subject to the registration obligations imposed under Section 5 of the 1933 Act. The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor. In each case, the regulation demands that offers and sales of the securities be made outside the United States and that no offering participant (which includes the issuer, the banks assisting with the offer and their respective affiliates) engage in "directed" selling efforts. In the case of issuers for whose securities there is substantial U.S. market interest, the regulation also requires that no offers and sales be made to U.S. persons (including U.S. persons physically located outside the United States).

The accompanying notes are an integral part of the financial statements.
74

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Emerging Markets Fund

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Argentina	$	23,307,810	$	—	$	—	$	23,307,810
Brazil		58,641,125		16,472,107		—		75,113,232
China		146,324,585		367,326,219		—		513,650,804
Hong Kong		—		95,653,594		—		95,653,594
India		8,444,596		216,454,270		—		224,898,866
Indonesia		23,890,258		12,120,844		—		36,011,102
Mexico		54,531,181		10,704,597		—		65,235,778
Philippines		7,236,478		5,884,347		—		13,120,825
Russia		—		114,154,352		—		114,154,352
South Africa		—		54,450,123		—		54,450,123
South Korea		45,740,754		140,206,868		—		185,947,622
Taiwan		—		141,660,509		—		141,660,509
Thailand		—		62,296,470		—		62,296,470
Turkey		—		17,852,213		—		17,852,213
United States		2,506,215		—		—		2,506,215
Total Common Stocks		370,623,002		1,255,236,513		—		1,625,859,515
Preferred Stocks
Brazil		—		30,813,914		—		30,813,914
South Korea		—		40,208,225		—		40,208,225
Total Preferred Stocks		—		71,022,139		—		71,022,139
Total	$	370,623,002	$	1,326,258,652	$	—	$	1,696,881,654

For the Emerging Markets Fund, fair value of Level 2 and Level 1 investments at December 31, 2016 was $1,052,849,853 and $275,066,835, respectively. $61,015,389 was transferred out of Level 2 into Level 1 and $18,263,769 was transferred out of Level 1 into Level 2 during the year ended December 31, 2017. Transfers into Level 2 and out of Level 1 resulted from foreign securities which were priced using inputs from a third-party vendor modeling tool to reflect any significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. Transfers into Level 1 and out of Level 2 resulted when pricing was based on quoted market prices.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
75

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Emerging Markets Fund

ASSETS
Investments, at value (cost $ 1,070,912,552)	$	1,696,881,654
Cash		33,625,321
Foreign cash, at value (cost $12)		12
Capital shares sold receivable		322,000
Dividends receivable		3,132,255
Tax reclaims receivable		34,837
Prepaid assets		32,111
Total Assets		1,734,028,190
LIABILITIES
Advisory fee payable		2,723,938
Capital shares purchased payable		16,000,000
Servicing fee payable		254,676
Trustee fee payable		23,232
Payable for deferred Indian capital gains tax		8,334,973
Accrued expenses		901,136
Total Liabilities		28,237,955
NET ASSETS	$	1,705,790,235
COMPOSITION OF NET ASSETS
Paid-in capital	$	1,014,092,971
Distributions in excess of net investment income		(5,795,490	)
Accumulated net realized gain on investments and foreign currency transactions		80,139,817
Net unrealized appreciation in value of investments and foreign currencies (net of deferred Indian capital gain tax)		617,352,937
	$	1,705,790,235
NET ASSET VALUE, PER SHARE
Class 2 ($203,830,413 / 8,931,922 shares outstanding), unlimited authorized, no par value	$	22.82
Class 3 ($196,468,249 / 8,541,401 shares outstanding), unlimited authorized, no par value	$	23.00
Class 5 ($1,232,136,514 / 52,324,644 shares outstanding), unlimited authorized, no par value	$	23.55
Class K ($73,348,678 / 3,218,338 shares outstanding), unlimited authorized, no par value	$	22.79
Institutional Class ($6,381 / 280 shares outstanding), unlimited authorized, no par value	$	22.80	*

* Net assets divided by shares does not recalculate using values rounded to the dollar.

The accompanying notes are an integral part of the financial statements.
76

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford Emerging Markets Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $3,608,806)	$	28,052,375
Interest		1,810
Total Investment Income		28,054,185
EXPENSES
Advisory fee (Note B)		9,630,373
Shareholder Servicing fees — Class 1 Shares (Note B)		5,638
Shareholder Servicing fees — Class 2 Shares (Note B)		338,977
Shareholder Servicing fees — Class 3 Shares (Note B)		166,969
Shareholder Servicing fees — Class 5 Shares (Note B)		269,181
Administration & Supervisory Fee — Class K Shares (Note B)		62,469
Administration & Supervisory Fee — Institutional Class Shares (Note B)		7
Fund accounting		830,519
Custody		810,337
Legal		286,003
Transfer agency		75,230
Professional fees		82,949
Trustees' fees		79,837
Insurance		12,100
Miscellaneous		55,413
Total Expenses		12,706,002
Net Investment Income		15,348,183
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain from:
Investments (net of Indian capital gains refund $24,542)		156,016,079
Foreign currency transactions		376,810
		156,392,889
Net change in unrealized appreciation on:
Investments (net of deferred Indian capital gains tax $8,631,321)		537,907,737
Translation of assets and liabilities denominated in foreign currencies		33,353
		537,941,090
Net realized and unrealized gain on investments and foreign currency transactions		694,333,979
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	709,682,162

The accompanying notes are an integral part of the financial statements.
77

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford Emerging Markets Fund

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income	$	15,348,183		$	10,187,956
Net realized gain (loss) from investments and foreign currency transactions		156,392,889			(36,740,744	)
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		537,941,090			62,816,124
Net increase in net assets from operations		709,682,162			36,263,336
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class 1		—			(63,550	)
Class 2		(2,175,573	)		(1,102,014	)
Class 3		(2,236,030	)		(1,191,919	)
Class 5		(14,640,063	)		(10,344,713	)
Class K		(811,639	)		—
Institutional Class		(72	)		—
Capital gains:
Class 2		(1,598,271	)		—
Class 3		(1,527,382	)		—
Class 5		(9,476,620	)		—
Class K		(555,567	)		—
Institutional Class		(50	)		—
Total Dividends and Distributions		(33,021,267	)		(12,702,196	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 1		5,696			7,035,259
Class 2*		49,650,731			69,655,261
Class 3		—			122,132,513
Class 5		—			119,060,276
Class K		98,891,235			—
Institutional Class		5,000			—
Purchase fees:
Class 1		281			809
Class 2		4,567			35,040
Class 3		4,814			13,857
Class 4		—			46,053
Class 5		40,345			439,341
Redemption fees:
Class 1		—			14
Class 2		4,199			1,637
Class 3		3,560			241
Class 4		—			2,003
Class 5		29,835			21,089
Dividends reinvested:
Class 1		—			63,550
Class 2		3,767,062			1,102,014
Class 3		3,756,892			1,191,919
Class 5		24,075,158			10,344,713
Class K		1,339,105			—
Institutional Class		121			—

The accompanying notes are an integral part of the financial statements.
78

Statements of Changes in Net Assets

Annual Report December 31, 2017

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
Cost of shares redeemed:
Class 1*	$	(8,699,086	)	$	—
Class 2		(45,405,788	)		(13,454,743	)
Class 4		—			(110,086,301	)
Class 5		(396,049,578	)		(1,002,506	)
Class K		(35,000,000	)		—
Increase (decrease) in Net Assets from Transactions in Shares of Beneficial Interest		(303,575,851	)		206,602,039
Total Increase in Net Assets		373,085,044			230,163,179
NET ASSETS
Beginning of year		1,332,705,191			1,102,542,012
End of year (including distributions in excess of net investment income of $5,795,490 and $3,550,429 respectively)	$	1,705,790,235		$	1,332,705,191

* Class 1 shareholders were converted to Class 2 during the period. Please refer to Notes A and D.

The accompanying notes are an integral part of the financial statements.
79

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Emerging Markets Fund
Selected data for a Class 2 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Period March 3, 2015^(a)through December 31, 2015			For the Period April 8, 2014^(a)through June 9, 2014			For the Period January 1, 2014^(a)through January 12, 2014			For the Period April 9, 2013^(b)through December 31, 2013
Net asset value, beginning of period	$	15.20		$	14.88		$	17.24		$	16.64		$	16.52		$	15.60
From Investment Operations
Net investment income (loss)^(c)		0.16			0.07			0.13			0.01			(0.00	)^(d)		0.10
Net realized and unrealized gain (loss) on investments and foreign currency transactions		7.89			0.38			(2.38	)		1.18			(0.41	)		1.10
Net increase (decrease) in net asset value from investment operations		8.05			0.45			(2.25	)		1.19			(0.41	)		1.20
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.25	)		(0.14	)		(0.17	)		—			—			(0.29	)
Distributions from net realized gain on investments		(0.18	)		—			(0.00	)^(d)		—			—			—
Total Dividends and Distributions		(0.43	)		(0.14	)		(0.17	)		—			—			(0.29	)
Proceeds from Purchase Fees and Redemption Fees^(c)		(0.00	)^(d)		0.01			0.06			0.02			—			0.01
Net asset value, end of period	$	22.82		$	15.20		$	14.88		$	17.85		$	16.11		$	16.52
Total Return
Total return based on net asset value^(e)		53.02	%		3.10	%		(12.68	)%		7.27	%		(2.48	)%		7.90	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	203,830		$	121,739		$	69,091		$	9,994		$	49,767		$	51,029
Ratio of net expenses to average net assets		0.85	%		0.87	%		0.87	%*		0.90	%*		0.92	%*		0.89	%*
Ratio of net investment income (loss) to average net assets		0.82	%		0.52	%		0.95	%*		0.46	%*		(0.90	)%*		0.90	%*
Portfolio turnover rate^(f)		33	%		24	%		46	%		26	%		26	%		33	%

* Annualized.

^(a) Recommencement of investment operations. Class had no shareholders from January 13, 2014 to April 7, 2014 and from June 10, 2014 to March 2, 2015. All shares of this class were redeemed at $16.11 on January 12, 2014. New shares were issued at $16.64 on April 8, 2014. All shares of this class were redeemed at $17.85 on June 9, 2014. New shares were issued at $17.24 on March 3, 2015.

^(b) Commencement of investment operations.

^(c) Calculated based upon average shares outstanding during the period.

^(d) Amount is less than 0.005 per share.

^(f) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
80

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Emerging Markets Fund
Selected data for a Class 3 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Period April 01, 2016^(b)through December 31, 2016			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012
Net asset value, beginning of period	$	15.32		$	14.72		$	16.74		$	16.40		$	14.60
From Investment Operations
Net investment income^(a)		0.17			0.12			0.17			0.14			0.19
Net realized and unrealized gain (loss) on investments and foreign currency transactions		7.96			0.62			(0.15	)		0.48			1.82
Net increase in net asset value from investment operations		8.13			0.74			0.02			0.62			2.01
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.27	)		(0.14	)		(0.02	)		(0.29	)		(0.23	)
Distributions from net realized gain on investments		(0.18	)		—			—			—			—
Total Dividends and Distributions		(0.45	)		(0.14	)		(0.02	)		(0.29	)		(0.23	)
Proceeds from Purchase Fees and Redemption Fees^(a⁾		0.00	^(c)		0.00	^(c)		0.02			0.01			0.02
Net asset value, end of period	$	23.00		$	15.32		$	16.76		$	16.74		$	16.40
Total Return
Total return based on net asset value^(d)		53.13	%		5.05	%		0.26	%		3.98	%		13.94	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	196,468		$	128,303		$	485,066		$	317,406		$	490,246
Ratio of net expenses to average net assets		0.78	%		0.80	%*		0.75	%		0.74	%		0.75	%
Ratio of net investment income to average net assets		0.84	%		1.09	%*		1.00	%		0.88	%		1.18	%
Portfolio turnover rate^(e)		33	%		24	%		26	%		33	%		51	%

* Annualized.

^(a) Calculated based upon average shares outstanding during the period.

^(b) Recommencement of investment operations. Class had no shareholders from December 31, 2014 to March 31, 2016. All shares of this class were redeemed on December 31, 2014 at $16.76. New shares were issued at $14.72 on April 01, 2016.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
81

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Emerging Markets Fund
Selected data for a Class 5 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015
Net asset value, beginning of year	$	15.67		$	15.33		$	16.93
From Investment Operations
Net investment income^(a)		0.19			0.13			0.14
Net realized and unrealized gain (loss) on investments and foreign currency transactions		8.15			0.35			(1.60	)
Net increase (decrease) in net asset value from investment operations		8.34			0.48			(1.46	)
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.28	)		(0.15	)		(0.19	)
Distributions from net realized gain on investments		(0.18	)		—			(0.00	)^(b)
Total Dividends and Distributions		(0.46	)		(0.15	)		(0.19	)
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(b)		0.01			0.05
Net asset value, end of year	$	23.55		$	15.67		$	15.33
Total Return
Total return based on net asset value^(c)		53.25	%		3.24	%		(8.24	)%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)	$	1,232,137		$	1,075,176		$	935,177
Ratio of net expenses to average net assets		0.70	%		0.71	%		0.71	%
Ratio of net investment income to average net assets		0.91	%		0.83	%		0.89	%
Portfolio turnover rate^(d)		33	%		24	%		46	%

^(a) Calculated based upon average shares outstanding during the period.

^(b) Amount is less than $0.005 per share.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
82

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Emerging Markets Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	18.22
From Investment Operations
Net investment income^(b)		0.02
Net realized and unrealized gain on investments and foreign currency transactions		5.00
Net increase in net asset value from investment operations		5.02
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.27	)
Distributions from net realized gain on investments		(0.18	)
Total Dividends and Distributions		(0.45	)
Net asset value, end of period	$	22.79
Total Return
Total return based on net asset value^(c)		27.57	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	73,349
Ratio of net expenses to average net assets		0.85	%*
Ratio of net investment income to average net assets		0.18	%*
Portfolio turnover rate^(d)		33	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
83

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Emerging Markets Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	18.22
From Investment Operations
Net investment income^(b)		0.16
Net realized and unrealized gain on investments and foreign currency transactions		4.86
Net increase in net asset value from investment operations		5.02
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.26	)
Distributions from net realized gain on investments		(0.18	)
Total Dividends and Distributions		(0.44	)
Net asset value, end of period	$	22.80
Total Return
Total return based on net asset value^(c)		27.61	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets		0.85	%*
Ratio of net investment income to average net assets		1.13	%*
Portfolio turnover rate^(d)		33	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
84

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Alpha Equity Fund

	Value		% of Total Net Assets
Aerospace & Defense	$	38,281		0.0	%
Airlines		14,426,772		1.2
Asset Managers		3,844,131		0.3
Automobiles & Parts		23,843,773		2.1
Banks		68,848,299		6.1
Beverages, Food & Tobacco		15,205,853		1.3
Business Support Services		11,092,539		1.0
Clothing & Accessories		11,133,146		1.0
Commercial Services		35,127,040		3.1
Construction & Building Materials		29,456,492		2.6
Diversified Financial Services		17,241,534		1.5
Electronic & Electrical Equipment		12,681,107		1.1
Engineering & Machinery		4,808,133		0.4
Equipment & Supplies		11,668,126		1.0
Financial Services		2,893,485		0.3
Fixed Line Telecommunications		9,067,342		0.8
Food Retailers & Wholesalers		4,286,514		0.4
Gambling		5,283,130		0.5
General Financial		55,605,905		4.9
General Industries		6,146,125		0.5
General Retailers		71,531,303		6.2
Health Care Equipment, Supplies & Services		28,405,584		2.5
Healthcare Providers		27,517,148		2.4
Hotels Restaurants and Leisure		8,970,822		0.8
Industrial Engineering		8,164,986		0.7
Industrial Machinery		45,813,412		4.0
Industrial Transportation		8,822,999		0.8
Information and Communications		4,279,843		0.4
Insurance		49,213,535		4.3
Internet Software & Services		108,472,756		9.5
Investment Services		3,931,549		0.3
Leisure Goods		22,296,201		2.0
Life Insurance		24,651,068		2.1
Marine Expoloration		5,383,813		0.5
Media & Photography		57,373,115		5.1
Medical Equipment		10,688,449		0.9
Mobile Telecommunications		2,717,819		0.2
Mortgage Finance		15,163,115		1.3
Nonlife Insurance		25,798,102		2.2
Oil & Gas		25,791,661		2.2

Industry Diversification Table

Annual Report December 31, 2017

	Value		% of Total Net Assets
Oil Equipment & Services	$	2,833,243		0.2	%
Pharmaceuticals, Biotechnology & Life Sciences		37,518,047		3.3
Property & Casualty Insurance		17,087,848		1.5
Publishing		3,698,629		0.3
Real Estate		5,396,904		0.5
Real Estate Holding & Development		4,522,937		0.4
Semiconductors		48,402,443		4.2
Speciality Chemicals		5,669,911		0.5
Specialized Consumer Services		26,208,670		2.3
Support Services		16,588,945		1.5
Technology Hardware & Equipment		22,813,157		2.0
Telecommunications Equipment		3,281,805		0.3
Travel & Leisure		28,629,228		2.5
Trucking		10,254,259		0.9
Waste & Disposal		4,562,333		0.4
Total Value of Investments		1,135,153,366		99.3
Other assets less liabilities		8,159,466		0.7
Net Assets	$	1,143,312,832		100.0	%

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Alpha Equity Fund

	Shares		Value
COMMON STOCKS — 98.3%
BRAZIL — 0.6%
B3 SA — Brasil Bolsa Balcao		1,013,000	$	6,952,241
CANADA — 1.6%
Fairfax Financial Holdings Ltd.		24,236		12,905,429
Ritchie Bros. Auctioneers, Inc.		177,820		5,322,153
				18,227,582
CHINA — 5.7%
58.com, Inc. ADR ^(a)		119,434		8,547,891
Alibaba Group Holding Ltd. ADR ^(a)		151,996		26,208,670
Baidu, Inc. ADR ^(a)		59,131		13,849,072
China Biologic Products Holdings, Inc. ^(a)		34,194		2,693,461
Ctrip.com International Ltd. ADR ^(a)		203,420		8,970,822
NetEase, Inc.		6,739		2,325,427
Tsingtao Brewery Co., Ltd., Class H		580,000		2,991,738
				65,587,081
DENMARK — 1.8%
A P Moller — Maersk A/S, B Shares		5,062		8,822,999
Novo Nordisk A/S, B Shares		218,582		11,745,611
				20,568,610
FRANCE — 2.0%
Bureau Veritas SA		406,132		11,092,539
Pernod Ricard SA		77,229		12,214,115
				23,306,654
GERMANY — 3.7%
Deutsche Boerse AG		65,959		7,634,437
Infineon Technologies AG		246,533		6,714,113
SAP SE		246,807		27,611,542
				41,960,092
HONG KONG — 2.6%
AIA Group Ltd.		2,898,200		24,651,068
Sands China Ltd.		1,026,400		5,283,130
				29,934,198

The accompanying notes are an integral part of the financial statements.
87

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Alpha Equity Fund

	Shares		Value
INDIA — 3.1%
Housing Development Finance Corp., Ltd.		566,239	$	15,163,115
ICICI Bank Ltd.		4,032,535		19,763,728
				34,926,843
IRELAND — 3.9%
Bank of Ireland Group PLC ^(a)		1,324,180		11,272,626
CRH PLC		540,143		19,385,689
Ryanair Holdings PLC ADR ^(a)		138,466		14,426,772
				45,085,087
ITALY — 1.3%
Fiat Chrysler Automobiles NV ^(a)		806,326		14,395,546
JAPAN — 7.5%
Advantest Corp.		405,700		7,484,894
CyberAgent, Inc.		222,100		8,655,832
Japan Exchange Group, Inc.		226,600		3,931,549
Kansai Paint Co., Ltd.		218,500		5,669,911
LINE Corp. ^(a)		104,800		4,279,843
MS&AD Insurance Group Holdings, Inc.		506,600		17,087,848
Olympus Corp.		279,400		10,688,449
Persol Holdings Co., Ltd.		255,800		6,404,305
Rohm Co., Ltd.		86,800		9,562,041
SMC Corp.		28,700		11,778,032
				85,542,704
NETHERLANDS — 1.0%
Philips Lighting NV 144A ^(b)		141,676		5,196,213
Yandex NV, Class A ^(a)		206,839		6,773,977
				11,970,190
NORWAY — 0.9%
Schibsted ASA, Class A		224,374		6,421,621
Schibsted ASA, Class B		139,143		3,698,629
				10,120,250
RUSSIA — 0.7%
Sberbank of Russia PJSC ADR		490,822		8,273,070

The accompanying notes are an integral part of the financial statements.
88

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Alpha Equity Fund

	Shares		Value
SINGAPORE — 0.5%
Jardine Matheson Holdings Ltd.		101,300	$	6,146,125
SOUTH AFRICA — 4.7%
MTN Group Ltd.		246,171		2,717,819
Naspers Ltd., N Shares		183,905		50,951,494
				53,669,313
SOUTH KOREA — 2.0%
Samsung Electronics Co., Ltd. GDR 144A ^(b)		18,828		22,296,201
SPAIN — 0.4%
Distribuidora Internacional de Alimentacion SA		831,101		4,286,514
SWEDEN — 2.0%
Atlas Copco AB, B Shares		353,827		13,561,156
Svenska Handelsbanken AB, A Shares		674,128		9,212,663
				22,773,819
SWITZERLAND — 2.8%
Compagnie Financiere Richemont SA		122,926		11,133,146
OC Oerlikon Corp. AG ^(a)		365,214		6,164,671
Schindler Holding AG, Participating Certificates		62,218		14,309,553
				31,607,370
TAIWAN — 3.0%
HTC Corp. ^(a)		1,336,000		3,281,805
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		787,576		31,227,389
				34,509,194
UNITED KINGDOM — 3.8%
Hays PLC.		2,199,628		5,417,501
Prudential PLC		1,479,130		37,880,910
Rolls-Royce Holdings PLC Entitlement ^(a)(c)		28,353,480		38,281
				43,336,692
UNITED STATES — 42.7%
ABIOMED, Inc. ^(a)		35,684		6,687,538
Advanced Micro Devices, Inc. ^(a)		364,962		3,751,809
Alnylam Pharmaceuticals, Inc. ^(a)		49,467		6,284,782

The accompanying notes are an integral part of the financial statements.
89

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Alpha Equity Fund

	Shares		Value
Alphabet, Inc., Class C ^(a)		26,401	$	27,626,006
Amazon.com, Inc. ^(a)		37,003		43,273,898
Anthem, Inc.		122,293		27,517,148
Apache Corp.		300,839		12,701,423
Arthur J Gallagher & Co.		179,087		11,332,625
Autohome, Inc. ADR ^(a)		86,474		5,592,274
C.H. Robinson Worldwide, Inc.		115,100		10,254,259
CarMax, Inc. ^(a)		41,835		2,682,879
EOG Resources, Inc.		121,307		13,090,238
Facebook, Inc., Class A ^(a)		90,891		16,038,626
Financial Engines, Inc.		126,869		3,844,131
First Republic Bank		99,437		8,615,222
GrubHub, Inc. ^(a)		129,779		9,318,132
Howard Hughes Corp. (The) ^(a)		41,113		5,396,904
Interactive Brokers Group, Inc., Class A		106,070		6,280,405
Kirby Corp. ^(a)		80,596		5,383,813
LendingTree, Inc. ^(a)		8,499		2,893,485
Leucadia National Corp.		342,293		9,067,342
Lincoln Electric Holdings, Inc.		52,502		4,808,133
Markel Corp. ^(a)		11,318		12,892,673
MarketAxess Holdings, Inc.		41,053		8,282,443
Martin Marietta Materials, Inc.		45,561		10,070,803
Mastercard, Inc., Class A		115,494		17,481,172
Moody's Corp.		165,215		24,387,386
Myriad Genetics, Inc. ^(a)		237,148		8,144,848
NOW, Inc. ^(a)		256,867		2,833,243
NVIDIA Corp.		63,810		12,347,235
ResMed, Inc.		123,118		10,426,863
Royal Caribbean Cruises Ltd.		240,017		28,629,228
Seattle Genetics, Inc. ^(a)		161,670		8,649,345
SiteOne Landscape Supply, Inc. ^(a)		100,502		7,708,503
Stericycle, Inc. ^(a)		67,103		4,562,333
TD Ameritrade Holding Corp.		175,537		8,975,207
Teradyne, Inc.		181,825		7,613,013
Tesla, Inc. ^(a)		30,346		9,448,227
Thermo Fisher Scientific, Inc.		61,450		11,668,126
Verisk Analytics, Inc. ^(a)		106,090		10,184,640
Visa, Inc., Class A		151,215		17,241,534
Wabtec Corp.		100,270		8,164,986
Waters Corp. ^(a)		58,446		11,291,183

The accompanying notes are an integral part of the financial statements.
90

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Alpha Equity Fund

	Shares		Value
Zillow Group, Inc., Class A ^(a)		7,909	$	322,213
Zillow Group, Inc., Class C ^(a)		102,657		4,200,724
				487,967,000
Total Common Stocks
(cost $767,062,191)				1,123,442,376
PREFERRED STOCKS — 1.0%
BRAZIL — 1.0%
Banco Bradesco SA (cost $11,002,186)		1,148,500		11,710,990
TOTAL INVESTMENTS — 99.3%
(cost $778,064,377)			$	1,135,153,366
Other assets less liabilities — 0.7%				8,159,466
NET ASSETS — 100.0%			$	1,143,312,832

^(a) Non-income producing security.

^(c) Investment was valued using significant unobservable inputs.

ADR — American Depositary Receipt.

GDR — Global Depositary Receipt.

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Brazil	$	—	$	6,952,241	$	—	$	6,952,241
Canada		18,227,582		—		—		18,227,582
China		65,587,081		—		—		65,587,081
Denmark		—		20,568,610		—		20,568,610
France		—		23,306,654		—		23,306,654
Germany		—		41,960,092		—		41,960,092
Hong Kong		—		29,934,198		—		29,934,198
India		—		34,926,843		—		34,926,843
Ireland		25,699,398		19,385,689		—		45,085,087
Italy		—		14,395,546		—		14,395,546
Japan		—		85,542,704		—		85,542,704

The accompanying notes are an integral part of the financial statements.
91

Portfolio of Investments

Annual Report December 31, 2017

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Netherlands	$	6,773,977	$	5,196,213	$	—	$	11,970,190
Norway		—		10,120,250		—		10,120,250
Russia		—		8,273,070		—		8,273,070
Singapore		—		6,146,125		—		6,146,125
South Africa		—		53,669,313		—		53,669,313
South Korea		—		22,296,201		—		22,296,201
Spain		—		4,286,514		—		4,286,514
Sweden		—		22,773,819		—		22,773,819
Switzerland		—		31,607,370		—		31,607,370
Taiwan		34,509,194		—		—		34,509,194
United Kingdom		—		43,298,411		38,281		43,336,692
United States		487,967,000		—		—		487,967,000
Total Common Stocks		638,764,232		484,639,863		38,281		1,123,442,376
Preferred Stocks
Brazil		—		11,710,990		—		11,710,990
Total	$	638,764,232	$	496,350,853	$	38,281	$	1,135,153,366

For the Global Alpha Equity Fund, fair value of Level 3, Level 2 and Level 1 investments at December 31, 2016 was $28,397, $321,032,702 and $490,031,410, respectively. $5,064,049 was transferred out of Level 2 into Level 1 during the year ended December 31, 2017. Transfers into Level 1 and out of Level 2 resulted when pricing was based on quoted market prices.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The following is a reconciliation of the Fund's Level 3 investments for which significant unobservable inputs were used in determining value:

Balance at December 31, 2016	$	28,397
Purchases		92,243
Sales		(82,940	)
Realized gain (loss)		41
Change in unrealized gain		540
Transfers into Level 3		—
Transfers out of Level 3		—
Balance at December 31, 2017	$	38,281	*
Change in unrealized gain related to Investments still held at December 31, 2017	$	711

* Value of the security is based on the amount it was known that it would be redeemed at, due to halt in market.

The accompanying notes are an integral part of the financial statements.
92

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Alpha Equity Fund

ASSETS
Investments, at value (cost $778,064,377)	$	1,135,153,366
Cash		9,393,500
Dividends receivable		513,463
Tax reclaims receivable		496,771
Prepaid assets		31,646
Total Assets		1,145,588,746
LIABILITIES
Advisory fee payable		1,161,906
Capital shares purchased payable		66,672
Servicing fee payable		303,553
Payable for deferred Indian capital gains tax		247,657
Trustee fee payable		13,192
Accrued expenses		482,934
Total Liabilities		2,275,914
NET ASSETS	$	1,143,312,832
COMPOSITION OF NET ASSETS
Paid-in capital	$	777,286,526
Distributions in excess of net investment income		(3,511,772	)
Accumulated net realized gain on investments and foreign currency transactions		12,682,335
Net unrealized appreciation in value of investments and foreign currencies (net of deferred Indian capital gains tax)		356,855,743
	$	1,143,312,832
NET ASSET VALUE, PER SHARE
Class 2 ($154,522,644 / 8,195,849 shares outstanding), unlimited authorized, no par value	$	18.85
Class 3 ($564,713,603 / 29,388,019 shares outstanding), unlimited authorized, no par value	$	19.22
Class 4 ($367,908,176 / 18,791,721 shares outstanding), unlimited authorized, no par value	$	19.58
Class K ($56,162,509 / 2,983,440 shares outstanding), unlimited authorized, no par value	$	18.82
Institutional Class ($5,900 / 313 shares outstanding), unlimited authorized, no par value	$	18.84	*

* Net assets divided by shares does not recalculate using values rounded to the dollar.

The accompanying notes are an integral part of the financial statements.
93

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford Global Alpha Equity Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $904,200)	$	11,432,949
Interest		2,106
Total Investment Income		11,435,055
EXPENSES
Advisory fee (Note B)		3,986,135
Shareholder Servicing fees — Class 1 Shares (Note B)		3
Shareholder Servicing fees — Class 2 Shares (Note B)		359,494
Shareholder Servicing fees — Class 3 Shares (Note B)		650,783
Shareholder Servicing fees — Class 4 Shares (Note B)		79,958
Administration & Supervisory Fee — Class K Shares (Note B)		34,091
Administration & Supervisory Fee — Institutional Class Shares (Note B)		6
Fund accounting		494,862
Legal		153,990
Custody		162,755
Trustees' fees		45,867
Transfer agency		68,380
Professional fees		37,192
Insurance		6,720
Miscellaneous		34,846
Total Expenses		6,115,082
Net Investment Income		5,319,973
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments (net of Indian capital gains tax $19,529)		65,020,158
Foreign currency transactions		(15,066	)
		65,005,092
Net change in unrealized appreciation on:
Investments (net of deferred Indian capital gains tax $57,975)		216,624,056
Translation of assets and liabilities denominated in foreign currencies		38,117
		216,662,173
Net realized and unrealized gain on investments and foreign currency transactions		281,667,265
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	286,987,238

The accompanying notes are an integral part of the financial statements.
94

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford Global Alpha Equity Fund

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income	$	5,319,973		$	5,140,233
Net realized gain (loss) from investments and foreign currency transactions		65,005,092			(19,504,514	)
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		216,662,173			49,198,844
Net increase in net assets from operations		286,987,238			34,834,563
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class 1		—			(21	)
Class 2		(901,464	)		(1,209,257	)
Class 3		(3,868,548	)		(3,840,716	)
Class 4		(2,809,108	)		—
Class K		(424,261	)		—
Institutional Class		(41	)		—
Capital gains:
Class 1		—			(6	)
Class 2		(4,497,059	)		(1,167,950	)
Class 3		(16,117,596	)		(1,386,910	)
Class 4		(10,303,488	)		—
Class K		(1,634,655	)		—
Institutional Class		(172	)		—
Total Dividends and Distributions		(40,556,392	)		(7,604,860	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 1		1,498			2,996
Class 2*		20,191,462			102,389,191
Class 3		167,078,422			206,629,056
Class 4		352,706,903			—
Class K		75,400,530			—
Institutional Class		5,000			—
Purchase fees:
Class 1		—			1
Class 2		5,472			50,495
Class 3		14,033			107,459
Redemption fees:
Class 2		6,754			12,291
Class 3		17,770			21,142
Dividends reinvested:
Class 1		—			26
Class 2		5,398,523			2,377,207
Class 3		19,986,144			5,227,626
Class 4		13,112,596			—
Class K		2,058,917			—
Institutional Class		213			—

The accompanying notes are an integral part of the financial statements.
95

Statements of Changes in Net Assets

Annual Report December 31, 2017

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
Cost of shares redeemed:
Class 1*	$	(4,965	)	$	—
Class 2		(154,903,521	)		(108,680,958	)
Class 3		(388,729,425	)		(128,628,662	)
Class 4		(10,500,000	)		—
Class K		(23,575,015	)		—
Increase in Net Assets from Transactions in Shares of Beneficial Interest		78,271,311			79,507,870
Total Increase in Net Assets		324,702,157			106,737,573
NET ASSETS
Beginning of year		818,610,675			711,873,102
End of year (including distributions in excess of net investment income of $3,511,772 and $967,445 respectively)	$	1,143,312,832		$	818,610,675

* Class 1 shareholders were converted to Class 2 during the period. Please refer to Notes A and D.

The accompanying notes are an integral part of the financial statements.
96

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Global Alpha Equity Fund
Selected data for a Class 2 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Period January 6, 2013^(a)through December 31, 2013
Net asset value, beginning of period	$	14.52		$	13.96		$	14.00		$	14.10		$	11.55
From Investment Operations
Net investment income^(b)		0.10			0.10			0.12			0.11			0.12
Net realized and unrealized gain on investments and foreign currency transactions		4.91			0.59			0.11	^(f)		0.53			2.94
Net increase in net asset value from investment operations		5.01			0.69			0.23			0.64			3.06
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.11	)		(0.08	)		(0.11	)		(0.14	)		(0.17	)
Distributions from net realized gain on investments		(0.57	)		(0.05	)		(0.17	)		(0.61	)		(0.34	)
Total Dividends and Distributions		(0.68	)		(0.13	)		(0.28	)		(0.75	)		(0.51	)
Proceeds from Purchase Fees and Redemption Fees^(b)		0.00	^(c)		0.00	^(c)		0.01			0.01			0.00	^(c)
Net asset value, end of period	$	18.85		$	14.52		$	13.96		$	14.00		$	14.10
Total Return
Total return based on net asset value^(d)		34.56	%		4.95	%		1.75	%		4.49	%		26.48	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	154,523		$	225,095		$	210,890		$	213,426		$	119,535
Ratio of net expenses to average net assets		0.67	%		0.67	%		0.66	%		0.67	%		0.68	%*
Ratio of net investment income to average net assets		0.59	%		0.69	%		0.83	%		0.74	%		1.00	%*
Portfolio turnover rate^(e)		27	%		20	%		16	%		26	%		20	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.

The accompanying notes are an integral part of the financial statements.
97

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Global Alpha Equity Fund
Selected data for a Class 3 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Net asset value, beginning of year	$	14.79		$	14.23		$	14.26		$	14.36		$	11.56
From Investment Operations
Net investment income^(a)		0.10			0.10			0.13			0.13			0.14
Net realized and unrealized gain on investments and foreign currency transactions		5.04			0.61			0.12	^(b)		0.52			3.17
Net increase in net asset value from investment operations		5.14			0.71			0.25			0.65			3.31
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.14	)		(0.10	)		(0.12	)		(0.15	)		(0.18	)
Distributions from net realized gain on investments		(0.57	)		(0.05	)		(0.17	)		(0.61	)		(0.34	)
Total Dividends and Distributions		(0.71	)		(0.15	)		(0.29	)		(0.76	)		(0.52	)
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(c)		0.00	^(c)		0.01			0.01			0.01
Net asset value, end of year	$	19.22		$	14.79		$	14.23		$	14.26		$	14.36
Total Return
Total return based on net asset value^(d)		34.65	%		5.02	%		1.84	%		4.48	%		28.71	%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)	$	564,714		$	593,513		$	500,983		$	410,993		$	299,182
Ratio of net expenses to average net assets		0.60	%		0.60	%		0.59	%		0.59	%		0.61	%
Ratio of net investment income to average net assets		0.60	%		0.75	%		0.85	%		0.91	%		1.05	%
Portfolio turnover rate^(e)		27	%		20	%		16	%		26	%		20	%

^(a) Calculated based upon average shares outstanding during the year.

^(b) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.

^(c) Amount is less than $0.005 per share.

^(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the year. Total return is not annualized for periods less than one year.

^(e) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.

The accompanying notes are an integral part of the financial statements.
98

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Global Alpha Equity Fund
Selected data for a Class 4 Share outstanding throughout the period:

	For the Period July 10, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	17.99
From Investment Operations
Net investment income^(b)		0.01
Net realized and unrealized gain on investments and foreign currency transactions		2.31
Net increase in net asset value from investment operations		2.32
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.16	)
Distributions from net realized gain on investments		(0.57	)
Total Dividends and Distributions		(0.73	)
Net asset value, end of period	$	19.58
Total Return
Total return based on net asset value^(c)		12.87	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	367,908
Ratio of net expenses to average net assets		0.58	%*
Ratio of net investment income to average net assets		0.15	%*
Portfolio turnover rate^(d)		27	%

* Annualized.

^(a) Commencement of operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.

The accompanying notes are an integral part of the financial statements.
99

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Global Alpha Equity Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	16.56
From Investment Operations
Net investment income^(b)		0.02
Net realized and unrealized gain on investments and foreign currency transactions		2.96
Net increase in net asset value from investment operations		2.98
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.15	)
Distributions from net realized gain on investments		(0.57	)
Total Dividends and Distributions		(0.72	)
Net asset value, end of period	$	18.82
Total Return
Total return based on net asset value^(c)		17.97	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	56,163
Ratio of net expenses to average net assets		0.68	%*
Ratio of net investment income to average net assets		0.17	%*
Portfolio turnover rate^(d)		27	%

* Annualized.

^(a) Commencement of operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.

The accompanying notes are an integral part of the financial statements.
100

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Global Alpha Equity Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	16.56
From Investment Operations
Net investment income^(b)		0.04
Net realized and unrealized gain on investments and foreign currency transactions		2.95
Net increase in net asset value from investment operations		2.99
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.14	)
Distributions from net realized gain on investments		(0.57	)
Total Dividends and Distributions		(0.71	)
Net asset value, end of period	$	18.84
Total Return
Total return based on net asset value^(c)		18.03	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets		0.67	%*
Ratio of net investment income to average net assets		0.35	%*
Portfolio turnover rate^(d)		27	%

* Annualized.

^(a) Commencement of operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.

The accompanying notes are an integral part of the financial statements.
101

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Select Equity Fund

	Value		% of Total Net Assets
Aerospace & Defense	$	18,524		0.6	%
Airlines		50,740		1.7
Apparel Retailers		46,815		1.6
Asset Managers		42,184		1.4
Automobiles & Parts		29,267		1.0
Banks		124,345		4.1
Biotechnology		29,514		1.0
Broadline Retailers		50,367		1.7
Chemicals		41,325		1.4
Clothing & Accessories		31,971		1.0
Construction & Materials		85,545		2.8
Consumer Electronics		36,010		1.2
Diversified Financial Services		27,530		0.9
Electronic & Electrical Equipment		69,878		2.2
Financial Services		70,814		2.3
Food Producers & Processors		25,266		0.8
Footwear		44,597		1.5
General Financial		236,677		7.8
General Industrials		29,953		1.0
General Retailers		240,743		7.9
Health Care Equipment, Supplies & Services		96,507		3.2
Hotels Restaurants and Leisure		22,227		0.7
Household Goods		55,430		1.8
Industrial Machinery		126,923		4.2
Industrial Transportation — Marine Transportation		16,617		0.5
Insurance		84,417		2.7
Internet, Software & Services		349,258		11.3
Life Insurance		69,865		2.3
Machinery		23,471		0.8
Machinery — Diversified		47,979		1.6
Multiline Retail		28,902		1.0
Nonlife Insurance		26,200		0.9
Oil & Gas		86,064		2.9
Personal Goods		9,604		0.3
Pharmaceuticals & Biotechnology		136,517		4.5
Retailer		27,488		0.9
Semiconductors		59,951		2.0
Speciality Retailer		84,112		2.7
Specialized Consumer Services		68,282		2.2
Support Services		18,584		0.6

102

Industry Diversification Table

Annual Report December 31, 2017

	Value		% of Total Net Assets
Technology Hardware & Equipment	$	57,001		1.8	%
Telecommunication Services		47,502		1.6
Textiles and apparel		34,952		1.2
Trading Companies & Distributors		30,900		1.0
Trucking		26,816		0.9
Wholesale Trade		37,742		1.2
Total Value of Investments		3,005,376		98.7
Other assets less liabilities		39,827		1.3
Net Assets	$	3,045,203		100.0	%

103

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Select Equity Fund

	Shares		Value
COMMON STOCKS — 98.7%
CANADA — 0.6%
Shopify, Inc., Class A ^(a)		184	$	18,584
CHINA — 7.8%
Alibaba Group Holding Ltd. ADR ^(a)		396		68,282
Baidu, Inc. ADR ^(a)		129		30,213
Ctrip.com International Ltd. ADR ^(a)		504		22,227
JD.com, Inc. ADR ^(a)		1,216		50,367
Tencent Holdings Ltd.		1,300		67,285
				238,374
DENMARK — 1.0%
Novozymes A/S, B Shares		517		29,514
FRANCE — 1.0%
Sartorius Stedim Biotech		416		30,093
GERMANY — 2.5%
adidas AG		223		44,597
Zalando SE 144A ^(a)(b)		570		30,055
				74,652
HONG KONG — 2.2%
AIA Group Ltd.		4,800		40,827
Hong Kong Exchanges & Clearing Ltd.		900		27,530
				68,357
IRELAND — 1.7%
Ryanair Holdings PLC ADR ^(a)		487		50,740
ISRAEL — 1.4%
Frutarom Industries Ltd.		441		41,325
ITALY — 2.2%
COSMO Pharmaceuticals NV		207		31,099
Yoox Net-A-Porter Group SpA ^(a)		1,002		34,952
				66,051

The accompanying notes are an integral part of the financial statements.
104

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Select Equity Fund

	Shares		Value
JAPAN — 12.6%
CyberAgent, Inc.		800	$	31,178
FANUC Corp.		200		47,979
Gree, Inc.		2,600		16,297
Inpex Corp.		4,600		57,252
Kubota Corp.		1,200		23,471
MISUMI Group, Inc.		1,300		37,742
Mitsui O.S.K. Lines Ltd.		500		16,617
Nintendo Co., Ltd.		100		36,010
SoftBank Group Corp.		600		47,502
Sumitomo Mitsui Trust Holdings, Inc.		900		35,610
Yaskawa Electric Corp.		800		35,052
				384,710
SOUTH KOREA — 0.5%
NAVER Corp. ^(a)		20		16,248
SPAIN — 0.6%
Inditex SA		482		16,760
SWEDEN — 2.1%
Atlas Copco AB, B Shares		1,038		39,784
Svenska Handelsbanken AB, A Shares		1,808		24,708
				64,492
SWITZERLAND — 4.7%
Aryzta AG ^(a)		637		25,266
Compagnie Financiere Richemont SA		353		31,971
OC Oerlikon Corp. AG ^(a)		2,887		48,731
Schindler Holding AG, Participating Certificates		167		38,408
				144,376
TAIWAN — 3.1%
Hon Hai Precision Industry Co., Ltd. GDR Reg S		5,545		34,826
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		1,512		59,951
				94,777

The accompanying notes are an integral part of the financial statements.
105

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Select Equity Fund

	Shares		Value
UNITED KINGDOM — 6.6%
Hargreaves Lansdown PLC		1,737	$	42,184
Just Group PLC		12,710		29,038
Prudential PLC		1,830		46,867
St James's Place PLC		2,273		37,550
Ted Baker PLC		751		27,488
Ultra Electronics Holdings PLC		1,020		18,524
				201,651
UNITED STATES — 48.1%
ABIOMED, Inc. ^(a)		208		38,981
Alphabet, Inc., Class A ^(a)		64		67,418
Amazon.com, Inc. ^(a)		101		118,116
American Express Co.		368		36,546
C.H. Robinson Worldwide, Inc.		301		26,816
CarMax, Inc. ^(a)		568		36,426
Celgene Corp. ^(a)		305		31,830
Chegg, Inc. ^(a)		1,317		21,493
Ellie Mae, Inc. ^(a)		248		22,171
EOG Resources, Inc.		267		28,812
Facebook, Inc., Class A ^(a)		491		86,642
Fastenal Co.		565		30,900
First Republic Bank		739		64,027
Fortive Corp.		414		29,953
GrubHub, Inc. ^(a)		591		42,434
Illumina, Inc. ^(a)		244		53,312
Interactive Brokers Group, Inc., Class A		829		49,085
iRobot Corp. ^(a)		325		24,927
LendingTree, Inc. ^(a)		208		70,814
Markel Corp. ^(a)		23		26,200
MarketAxess Holdings, Inc.		419		84,533
Martin Marietta Materials, Inc.		197		43,545
Mastercard, Inc., Class A		180		27,245
Netflix, Inc. ^(a)		228		43,767
NVIDIA Corp.		180		34,830
Seattle Genetics, Inc. ^(a)		379		20,276
Sherwin-Williams Co. (The)		83		34,033
Tableau Software, Inc., Class A ^(a)		491		33,977
TD Ameritrade Holding Corp.		768		39,268
Tesla, Inc. ^(a)		94		29,267

The accompanying notes are an integral part of the financial statements.
106

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Select Equity Fund

	Shares		Value
Tiffany & Co.		275	$	28,586
TJX Cos., Inc. (The)		378		28,902
Under Armour, Inc., Class C ^(a)		721		9,604
Waters Corp. ^(a)		142		27,433
Watsco, Inc.		247		42,000
Wayfair, Inc., Class A ^(a)		380		30,503
				1,464,672
TOTAL INVESTMENTS — 98.7%
(cost $2,957,455)			$	3,005,376
Other assets less liabilities — 1.3%				39,827
NET ASSETS — 100.0%			$	3,045,203

^(a) Non-income producing security.

ADR — American Depositary Receipt.

GDR — Global Depositary Receipt.

Reg S — Regulation S ("Reg S") of the securities Act of 1933, as amended ("1933 Act") is a safe harbor that defines when an offering of securities will be deemed to come to rest abroad and therefore is not subject to the registration obligations imposed under Section 5 of the 1933 Act. The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor. In each case, the regulation demands that offers and sales of the securities be made outside the United States and that no offering participant (which includes the issuer, the banks assisting with the offer and their respective affiliates) engage in "directed" selling efforts. In the case of issuers for whose securities there is substantial U.S. market interest, the regulation also requires that no offers and sales be made to U.S. persons (including U.S. persons physically located outside the United States).

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Canada	$	18,584	$	—	$	—	$	18,584
China		171,089		67,285		—		238,374
Denmark		—		29,514		—		29,514
France		30,093		—		—		30,093
Germany		—		74,652		—		74,652
Hong Kong		—		68,357		—		68,357
Ireland		50,740		—		—		50,740
Israel		—		41,325		—		41,325
Italy		31,099		34,952		—		66,051
Japan		—		384,710		—		384,710
South Korea		—		16,248		—		16,248
Spain		—		16,760		—		16,760
Sweden		—		64,492		—		64,492

The accompanying notes are an integral part of the financial statements.
107

Portfolio of Investments

Annual Report December 31, 2017

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Switzerland	$	25,266	$	119,110	$	—	$	144,376
Taiwan		59,951		34,826		—		94,777
United Kingdom		27,488		174,163		—		201,651
United States		1,464,672		—		—		1,464,672
Total	$	1,878,982	$	1,126,394	$	—	$	3,005,376

There were no transfers between levels for the period ended December 31, 2017.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
108

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Global Select Equity Fund

ASSETS
Investments, at value (cost $2,957,455)	$	3,005,376
Cash		40,375
Due from Investment Advisor		23,393
Dividends receivable		308
Tax reclaims receivable		10
Total Assets		3,069,462
LIABILITIES
Servicing fee payable		226
Trustee fee payable		35
Accrued expenses		23,998
Total Liabilities		24,259
NET ASSETS	$	3,045,203
COMPOSITION OF NET ASSETS
Paid-in capital	$	3,000,000
Accumulated net investment loss		(2,719	)
Accumulated net realized loss on foreign currency transactions		—
Net unrealized appreciation in value of investments and foreign currencies		47,922
	$	3,045,203
NET ASSET VALUE, PER SHARE
Class K ($1,522,602 / 150,000 shares outstanding), unlimited authorized, no par value	$	10.15
Institutional Class ($1,522,601 / 150,000 shares outstanding), unlimited authorized, no par value	$	10.15

The accompanying notes are an integral part of the financial statements.
109

Statement of Operations

Annual Report December 31, 2017

For the Period December 14, 2017* through December 31, 2017
Baillie Gifford Global Select Equity Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $21)	$	455
Total Investment Income		455
EXPENSES
Advisory fee (Note B)		439
Administration & Supervisory Fee — Class K Shares (Note B)		113
Administration & Supervisory Fee — Institutional Class Shares (Note B)		113
Professional fees		20,267
Custody		1,000
Fund accounting		10
Transfer agency		2,386
Legal		161
Trustees' fees		35
Miscellaneous		174
Total Expenses		24,698
Fees waived		(23,833	)
Net Expenses		865
Net Investment Loss		(410	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss from:
Foreign currency transactions		(2,309	)
		(2,309	)
Net change in unrealized appreciation on:
Investments		47,921
Translation of assets and liabilities denominated in foreign currencies		1
		47,922
Net realized and unrealized gain on investments and foreign currency transactions		45,613
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	45,203

* Commencement of investment operations.

The accompanying notes are an integral part of the financial statements.
110

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford Global Select Equity Fund

	For the Period December 14, 2017* through December 31, 2017
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment loss	$	(410	)
Net realized loss from foreign currency transactions		(2,309	)
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		47,922
Net increase in net assets from operations		45,203
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class K		1,500,000
Institutional Class		1,500,000
Increase in Net Assets from Transactions in Shares of Beneficial Interest		3,000,000
Total Increase in Net Assets		3,045,203
NET ASSETS
Beginning of period		—
End of period (including accumulated net investment loss of $2,719)	$	3,045,203

* Commencement of investment operations.

The accompanying notes are an integral part of the financial statements.
111

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Global Select Equity Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period December 14, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.00
From Investment Operations
Net investment loss^(b)		(0.00	)^(c)
Net realized and unrealized gain on investments and foreign currency transactions		0.15
Net increase in net asset value from investment operations		0.15
Net asset value, end of period	$	10.15
Total Return
Total return based on net asset value^(d)		1.50	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	1,523
Ratio of net expenses to average net assets, before waiver		18.55	%*
Ratio of net expenses to average net assets, after waiver		0.65	%*
Ratio of net investment loss to average net assets		(0.31	)%*
Portfolio turnover rate^(e)		0	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at fund level.

The accompanying notes are an integral part of the financial statements.
112

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Global Select Equity Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period December 14, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.00
From Investment Operations
Net investment loss^(b)		(0.00	)^(c)
Net realized and unrealized gain on investments and foreign currency transactions		0.15
Net increase in net asset value from investment operations		0.15
Net asset value, end of period	$	10.15
Total Return
Total return based on net asset value^(d)		1.50	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	1,523
Ratio of net expenses to average net assets, before waiver		18.55	%*
Ratio of net expenses to average net assets, after waiver		0.80	%*
Ratio of net investment loss to average net assets		(0.31	)%*
Portfolio turnover rate^(e)		0	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at fund level.

The accompanying notes are an integral part of the financial statements.
113

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Concentrated Growth Fund

	Value		% of Total Net Assets
Apparel Retailers	$	112,736		11.2	%
Automobiles & Parts		81,601		8.1
Biotechnology		26,037		2.6
Broadline Retailers		66,372		6.6
Clothing & Accessories		28,889		2.9
General Retailers		76,085		7.5
Hotels Restaurants and Leisure		35,236		3.5
Industrial Machinery		28,017		2.8
Internet, Software & Services		180,331		18.0
Life Insurance		25,517		2.5
Media		31,549		3.1
Personal Products		27,476		2.7
Pharmaceuticals & Biotechnology		35,177		3.5
Speciality Finance		24,971		2.5
Specialized Consumer Services		75,697		7.5
Technology Hardware & Equipment		98,648		9.9
Telecommunication Services		31,668		3.2
Total Value of Investments		986,007		98.1
Other assets less liabilities		18,703		1.9
Net Assets	$	1,004,710		100.0	%

114

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Concentrated Growth Fund

	Shares		Value
COMMON STOCKS — 98.1%
ARGENTINA — 3.3%
MercadoLibre, Inc.		106	$	33,354
CHINA — 24.2%
Alibaba Group Holding Ltd. ADR ^(a)		439		75,697
Baidu, Inc. ADR ^(a)		189		44,266
Ctrip.com International Ltd. ADR ^(a)		799		35,236
Tencent Holdings Ltd.		1,700		87,988
				243,187
DENMARK — 2.6%
Genmab A/S ^(a)		157		26,037
FRANCE — 12.2%
Hermes International		54		28,889
Kering		141		66,372
L'Oreal SA		124		27,476
				122,737
GERMANY — 9.1%
Delivery Hero AG 144A ^(a)(b)		622		24,628
Rocket Internet SE 144A ^(a)(b)		584		14,723
Zalando SE 144A ^(a)(b)		986		51,990
				91,341
HONG KONG — 2.5%
AIA Group Ltd.		3,000		25,517
ITALY — 4.6%
Ferrari NV		443		46,418
JAPAN — 6.3%
M3, Inc.		900		31,549
SoftBank Group Corp.		400		31,668
				63,217
NETHERLANDS — 7.9%
ASML Holding NV		455		79,105

The accompanying notes are an integral part of the financial statements.
115

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Concentrated Growth Fund

	Shares		Value
SPAIN — 6.0%
Inditex SA		1,747	$	60,746
SWEDEN — 5.3%
Atlas Copco AB, B Shares		731		28,017
Kinnevik AB, B Shares		739		24,971
				52,988
UNITED STATES — 14.1%
Amazon.com, Inc. ^(a)		44		51,457
Illumina, Inc. ^(a)		161		35,177
NVIDIA Corp.		101		19,543
Tesla, Inc. ^(a)		113		35,183
				141,360
TOTAL INVESTMENTS — 98.1%
(cost $979,387)			$	986,007
Other assets less liabilities — 1.9%				18,703
NET ASSETS — 100.0%			$	1,004,710

^(a) Non-income producing security.

ADR — American Depositary Receipt.

The accompanying notes are an integral part of the financial statements.
116

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Concentrated Growth Fund

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Argentina	$	33,354	$	—	$	—	$	33,354
China		155,199		87,988		—		243,187
Denmark		26,037		—		—		26,037
France		—		122,737		—		122,737
Germany		24,628		66,713		—		91,341
Hong Kong		—		25,517		—		25,517
Italy		—		46,418		—		46,418
Japan		—		63,217		—		63,217
Netherlands		—		79,105		—		79,105
Spain		—		60,746		—		60,746
Sweden		—		52,988		—		52,988
United States		141,360		—		—		141,360
Total	$	380,578	$	605,429	$	—	$	986,007

There were no transfers between levels for the period ended December 31, 2017.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
117

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Concentrated Growth Fund

ASSETS
Investments, at value (cost $979,387)	$	986,007
Cash		19,005
Due from Investment Advisor		23,037
Dividends receivable		16
Total Assets		1,028,065
LIABILITIES
Servicing fee payable		75
Trustee fee payable		12
Accrued expenses		23,268
Total Liabilities		23,355
NET ASSETS	$	1,004,710
COMPOSITION OF NET ASSETS
Paid-in capital	$	998,090
Accumulated net investment loss		—
Accumulated net realized loss on investments and foreign currency transactions		—
Net unrealized appreciation in value of investments and foreign currencies		6,620
	$	1,004,710
NET ASSET VALUE, PER SHARE
Class K ($502,355 / 50,000 shares outstanding), unlimited authorized, no par value	$	10.05
Institutional Class ($502,355 / 50,000 shares outstanding), unlimited authorized, no par value	$	10.05

The accompanying notes are an integral part of the financial statements.
118

Statement of Operations

Annual Report December 31, 2017

For the Period December 14, 2017^(a) through December 31, 2017
Baillie Gifford International Concentrated Growth Fund

INVESTMENT INCOME
Dividends	$	16
Total Investment Income		16
EXPENSES
Advisory fee (Note B)		176
Administration & Supervisory Fee — Class K Shares (Note B)		38
Administration & Supervisory Fee — Institutional Class Shares (Note B)		38
Professional fees		20,267
Custody		500
Fund accounting		5
Transfer agency		2,384
Legal		54
Trustees' fees		12
Miscellaneous		58
Total Expenses		23,532
Fees waived		(23,214	)
Net Expenses		318
Net Investment Loss		(302	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss from:
Foreign currency transactions		(1,608	)
		(1,608	)
Net change in unrealized appreciation on:
Investments		6,620
		6,620
Net realized and unrealized gain on investments and foreign currency transactions		5,012
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	4,710

^(a) Commencement of investment operations.

The accompanying notes are an integral part of the financial statements.
119

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford International Concentrated Growth Fund

	For the Period December 14, 2017^(a)through December 31, 2017
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment loss	$	(302	)
Net realized loss from foreign currency transactions		(1,608	)
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		6,620
Net increase in net assets from operations		4,710
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class K		500,000
Institutional Class		500,000
Increase in Net Assets from Transactions in Shares of Beneficial Interest		1,000,000
Total Increase in Net Assets		1,004,710
NET ASSETS
Beginning of period		—
End of period (including accumulated net investment loss of $—)	$	1,004,710

^(a) Commencement of investment operations.

The accompanying notes are an integral part of the financial statements.
120

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Concentrated Growth Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period December 14, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.00
From Investment Operations
Net investment loss^(b)		(0.00	)^(c)
Net realized and unrealized gain on investments and foreign currency transactions		0.05
Net increase in net asset value from investment operations		0.05
Net asset value, end of period	$	10.05
Total Return
Total return based on net asset value^(d)		0.50	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	502
Ratio of net expenses to average net assets, before waiver		53.29	%*
Ratio of net expenses to average net assets, after waiver		0.72	%*
Ratio of net investment loss to average net assets		(0.68	)%*
Portfolio turnover rate^(e)		0	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
121

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Concentrated Growth Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period December 14, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.00
From Investment Operations
Net investment loss^(b)		(0.00	)^(c)
Net realized and unrealized gain on investments and foreign currency transactions		0.05
Net increase in net asset value from investment operations		0.05
Net asset value, end of period	$	10.05
Total Return
Total return based on net asset value^(d)		0.50	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	502
Ratio of net expenses to average net assets, before waiver		53.29	%*
Ratio of net expenses to average net assets, after waiver		0.87	%*
Ratio of net investment loss to average net assets		(0.68	)%*
Portfolio turnover rate^(e)		0	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
122

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Equity Fund

	Value		% of Total Net Assets
Aerospace & Defense	$	27,919,414		1.3	%
Airlines		41,050,756		1.9
Apparel Retailers		46,464,350		2.2
Asset Managers		21,106,805		1.0
Auto Manufacturers		19,043,648		0.9
Auto Parts		26,168,153		1.2
Banks		194,625,754		9.1
Beverages, Food & Tobacco		54,160,852		2.6
Biotechnology		21,676,062		1.0
Business Support Services		31,237,780		1.4
Chemicals		16,028,793		0.8
Clothing & Accessories		55,660,437		2.7
Commercial Services & Supplies		64,499,097		3.0
Construction & Building Materials		57,928,146		2.8
Containers & Packaging		15,258,431		0.7
Distribution/Wholesale		31,037,843		1.5
Diversified Financial Services		31,484,506		1.5
Electronic & Electrical Equipment		156,660,271		7.5
Food & Staples		66,491,078		3.2
Food Producers & Processors		28,276,915		1.3
General Financial		35,869,900		1.7
General Retailers		70,054,964		3.2
Healthcare — Products		17,667,920		0.8
Hotels Restaurants and Leisure		16,398,761		0.8
Industrial Machinery		100,938,039		4.8
Industrial Suppliers		35,069,794		1.7
Information and Communications		19,007,594		0.9
Insurance		66,897,143		3.2
Internet, Software & Services		177,478,498		8.3
Investment Services		39,025,736		1.9
Life Insurance		35,504,444		1.7
Machinery — Diversified		21,782,597		1.0
Media & Photography		87,430,830		4.1
Medical Equipment		22,192,484		1.0
Mining & Metals		37,084,818		1.7
Nonlife Insurance		35,206,113		1.7
Pharmaceuticals & Biotechnology		26,231,050		1.2
Recreational Products		26,073,623		1.2
Restaurant & Bars		19,914,206		0.9
Semiconductors		82,788,296		3.9

123

Industry Diversification Table

Annual Report December 31, 2017

	Value		% of Total Net Assets
Specialized Consumer Services	$	45,310,635		2.1	%
Support Services		8,252,299		0.4
Transportation		31,898,213		1.5
Travel & Leisure		25,037,046		1.2
Total Value of Investments		2,089,894,094		98.5
Other assets less liabilities		32,206,660		1.5
Net Assets	$	2,122,100,754		100.0	%

124

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Equity Fund

	Shares		Value
COMMON STOCKS — 97.7%
ARGENTINA — 2.8%
MercadoLibre, Inc.		191,138	$	60,143,483
AUSTRALIA — 2.1%
Brambles Ltd.		1,946,956		15,258,431
Cochlear Ltd.		166,482		22,192,484
SEEK Ltd.		552,258		8,166,623
				45,617,538
BRAZIL — 1.1%
Kroton Educacional SA		4,305,000		23,887,821
CANADA — 4.5%
Constellation Software, Inc.		46,955		28,465,115
Fairfax Financial Holdings Ltd.		66,116		35,206,113
Restaurant Brands International, Inc.		323,957		19,914,206
Ritchie Bros. Auctioneers, Inc.		365,837		10,949,501
				94,534,935
CHINA — 3.2%
Alibaba Group Holding Ltd. ADR ^(a)		163,461		28,185,580
Baidu, Inc. ADR ^(a)		103,203		24,171,175
Ctrip.com International Ltd. ADR ^(a)		371,854		16,398,761
				68,755,516
DENMARK — 4.7%
DSV A/S		405,387		31,898,213
Novo Nordisk A/S, B Shares		483,505		25,981,379
Novozymes A/S, B Shares		379,700		21,676,062
Pandora A/S		180,729		19,644,978
				99,200,632
FINLAND — 1.9%
Kone Oyj, B Shares		398,788		21,415,945
Sampo Oyj, A Shares		333,522		18,304,356
				39,720,301

The accompanying notes are an integral part of the financial statements.
125

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Equity Fund

	Shares		Value
FRANCE — 3.9%
Bureau Veritas SA		713,797	$	19,495,685
Edenred		670,240		19,403,310
Essilor International SA		128,269		17,667,920
Legrand SA		343,936		26,441,353
				83,008,268
GERMANY — 6.3%
Brenntag AG		254,250		16,028,793
Continental AG		70,826		19,043,648
Deutsche Boerse AG		309,904		35,869,900
MTU Aero Engines AG		104,859		18,737,711
SAP SE		387,052		43,301,457
				132,981,509
HONG KONG — 3.9%
AIA Group Ltd.		3,163,800		26,910,168
Hang Seng Bank Ltd.		950,900		23,590,813
Hong Kong Exchanges & Clearing Ltd.		1,029,300		31,484,506
				81,985,487
IRELAND — 4.7%
CRH PLC		596,347		21,402,846
James Hardie Industries PLC SE CDI		901,764		15,837,563
Kingspan Group PLC		472,130		20,687,737
Ryanair Holdings PLC ADR ^(a)		393,999		41,050,756
				98,978,902
JAPAN — 12.6%
DENSO Corp.		436,800		26,168,153
FANUC Corp.		90,800		21,782,597
Japan Exchange Group, Inc.		2,249,300		39,025,736
Nidec Corp.		205,800		28,815,509
Rakuten, Inc.		1,873,500		17,125,055
Shimano, Inc.		185,500		26,073,623
SMC Corp.		81,300		33,364,252
Square Enix Holdings Co., Ltd.		400,600		19,007,594
Sumitomo Mitsui Trust Holdings, Inc.		608,100		24,060,090
Toyota Tsusho Corp.		772,600		31,037,843
				266,460,452

The accompanying notes are an integral part of the financial statements.
126

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Equity Fund

	Shares		Value
NETHERLANDS — 2.8%
Heineken Holding NV		313,180	$	30,964,107
Unilever NV CVA		502,229		28,276,915
				59,241,022
PERU — 1.1%
Credicorp Ltd.		110,831		22,989,674
RUSSIA — 0.8%
Magnit PJSC GDR Reg S		602,011		16,384,541
SINGAPORE — 1.5%
United Overseas Bank Ltd.		1,629,872		32,129,695
SOUTH AFRICA — 4.5%
Discovery Ltd.		571,566		8,594,276
Naspers Ltd., N Shares		315,574		87,430,830
				96,025,106
SOUTH KOREA — 4.7%
NAVER Corp. ^(a)		26,339		21,397,268
Samsung Electronics Co., Ltd.		33,214		78,913,518
				100,310,786
SPAIN — 2.4%
Bankinter SA		2,243,450		21,222,320
Grifols SA		8,539		249,671
Inditex SA		857,852		29,828,958
				51,300,949
SWEDEN — 3.7%
Atlas Copco AB, B Shares		1,204,314		46,157,842
Svenska Handelsbanken AB, A Shares		2,441,301		33,362,926
				79,520,768
SWITZERLAND — 4.9%
Compagnie Financiere Richemont SA		241,984		21,915,976
Credit Suisse Group AG ^(a)		1,175,963		20,974,151
Nestle SA		582,795		50,106,537

The accompanying notes are an integral part of the financial statements.
127

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Equity Fund

	Shares		Value
SGS SA		4,504	$	11,742,095
				104,738,759
TAIWAN — 5.0%
Hon Hai Precision Industry Co., Ltd.		2,044,000		6,499,081
Hon Hai Precision Industry Co., Ltd. GDR Reg S		2,546,024		15,990,810
Taiwan Semiconductor Manufacturing Co., Ltd.		10,812,000		82,788,296
				105,278,187
UNITED KINGDOM — 12.9%
ASOS PLC ^(a)		184,395		16,635,392
boohoo.com PLC ^(a)		3,953,908		10,062,804
British American Tobacco PLC		343,154		23,196,745
Burberry Group PLC		584,803		14,099,483
Capita PLC		1,527,327		8,252,299
Experian PLC		1,178,609		25,979,663
Ferguson PLC		313,959		22,530,878
Hargreaves Lansdown PLC		869,103		21,106,805
Howden Joinery Group PLC		1,991,934		12,538,916
Just Eat PLC ^(a)		2,277,670		23,957,007
Prudential PLC		1,152,333		29,511,552
Rio Tinto PLC		706,950		37,084,818
Rolls-Royce Holdings PLC ^(a)		800,158		9,132,008
Rolls-Royce Holdings PLC Entitlement ^(a)(b)		36,807,268		49,695
St James's Place PLC		1,155,031		19,081,235
				273,219,300
UNITED STATES — 1.7%
Copa Holdings SA, Class A		186,760		25,037,046
PriceSmart, Inc.		141,084		12,147,332
				37,184,378
Total Common Stocks
(cost $1,186,906,029)				2,073,598,009
PREFERRED STOCKS — 0.8%
BRAZIL — 0.8%
Itau Unibanco Holding SA ADR (cost $14,532,097)		1,253,545		16,296,085

The accompanying notes are an integral part of the financial statements.
128

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Equity Fund

	Value
TOTAL INVESTMENTS — 98.5%
(cost $1,201,438,126)	$	2,089,894,094
Other assets less liabilities — 1.5%		32,206,660
NET ASSETS — 100.0%	$	2,122,100,754

^(a) Non-income producing security.

^(b) Investment was valued using significant unobservable inputs.

ADR — American Depositary Receipt.

CDI — CHESS Depositary Interest.

CVA — Certificate Van Aandelen (Bearer).

GDR — Global Depositary Receipt.

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Argentina	$	60,143,483	$	—	$	—	$	60,143,483
Australia		—		45,617,538		—		45,617,538
Brazil		—		23,887,821		—		23,887,821
Canada		94,534,935		—		—		94,534,935
China		68,755,516		—		—		68,755,516
Denmark		—		99,200,632		—		99,200,632
Finland		—		39,720,301		—		39,720,301
France		—		83,008,268		—		83,008,268
Germany		—		132,981,509		—		132,981,509
Hong Kong		—		81,985,487		—		81,985,487
Ireland		41,050,756		57,928,146		—		98,978,902
Japan		—		266,460,452		—		266,460,452
Netherlands		—		59,241,022		—		59,241,022
Peru		22,989,674		—		—		22,989,674
Russia		—		16,384,541		—		16,384,541
Singapore		—		32,129,695		—		32,129,695
South Africa		—		96,025,106		—		96,025,106
South Korea		—		100,310,786		—		100,310,786
Spain		—		51,300,949		—		51,300,949
Sweden		—		79,520,768		—		79,520,768
Switzerland		—		104,738,759		—		104,738,759

The accompanying notes are an integral part of the financial statements.
129

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Equity Fund

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Taiwan	$	—	$	105,278,187	$	—	$	105,278,187
United Kingdom		10,062,804		263,106,801		49,695		273,219,300
United States		37,184,378		—		—		37,184,378
Total Common Stocks		334,721,546		1,738,826,768		49,695		2,073,598,009
Preferred Stocks
Brazil		16,296,085		—		—		16,296,085
Total	$	351,017,631	$	1,738,826,768	$	49,695	$	2,089,894,094

For the International Equity Fund, fair value of Level 3, Level 2 and Level 1 investments at December 31, 2016 was $52,739, $1,366,689,310 and $295,426,273, respectively. $14,399,961 was transferred out of Level 1 into Level 2 during the year ended December 31, 2017. Transfers into Level 2 and out of Level 1 resulted from foreign securities which were priced using inputs from a third-party vendor modeling tool to reflect any significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The following is a reconciliation of the Fund's Level 3 investments for which significant unobservable inputs were used in determining value:

Balance at December 31, 2016	$	52,739
Purchases		126,596
Sales		(130,214	)
Realized gain (loss)		(31	)
Change in unrealized gain (loss)		605
Transfers into Level 3		—
Transfers out of Level 3		—
Balance at December 31, 2017	$	49,695	*
Change in unrealized gain (loss) related to Investments still held at December 31, 2017	$	924

* Value of the security based on the amount it was known that it would be redeemed at, due to halt in active market.

The accompanying notes are an integral part of the financial statements.
130

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Equity Fund

ASSETS
Investments, at value (cost $1,201,438,126)	$	2,089,894,094
Cash		30,632,627
Dividends receivable		1,106,505
Tax reclaims receivable		2,605,603
Receivable for investments sold		1,060,967
Prepaid assets		32,442
Total Assets		2,125,332,238
LIABILITIES
Advisory fee payable		1,815,016
Due to Custodian		51
Servicing fee payable		559,105
Trustee fee payable		23,801
Accrued expenses		833,511
Total Liabilities		3,231,484
NET ASSETS	$	2,122,100,754
COMPOSITION OF NET ASSETS
Paid-in capital	$	1,226,479,543
Distributions in excess of net investment income		(1,379,679	)
Accumulated net realized gain on investments and foreign currency transactions		8,502,565
Net unrealized appreciation in value of investments and foreign currencies		888,498,325
	$	2,122,100,754
NET ASSET VALUE, PER SHARE
Class 2 ($478,079,220 / 33,674,872 shares outstanding), unlimited authorized, no par value	$	14.20
Class 3 ($1,119,162,461 / 77,865,768 shares outstanding), unlimited authorized, no par value	$	14.37
Class 4 ($232,741,034 / 15,948,399 shares outstanding), unlimited authorized, no par value	$	14.59
Class 5 ($183,384,095 / 12,371,800 shares outstanding), unlimited authorized, no par value	$	14.82
Class K ($108,728,032 / 7,671,676 shares outstanding), unlimited authorized, no par value	$	14.17
Institutional Class ($5,912 / 417 shares outstanding), unlimited authorized, no par value	$	14.19	*

* Net assets divided by shares does not recalculate using values rounded to the dollar.

The accompanying notes are an integral part of the financial statements.
131

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford International Equity Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $4,024,977)	$	36,566,852
Interest		3,068
Total Investment Income		36,569,920
EXPENSES
Advisory fee (Note B)		6,751,475
Shareholder Servicing fees — Class 1 Shares (Note B)		14,486
Shareholder Servicing fees — Class 2 Shares (Note B)		960,575
Shareholder Servicing fees — Class 3 Shares (Note B)		1,051,668
Shareholder Servicing fees — Class 4 Shares (Note B)		73,531
Shareholder Servicing fees — Class 5 Shares (Note B)		37,426
Administration & Supervisory Fee — Class K Shares (Note B)		27,493
Administration & Supervisory Fee — Institutional Class Shares (Note B)		6
Fund accounting		917,143
Custody		359,355
Legal		301,560
Trustees' fees		85,616
Transfer agency		88,638
Professional fees		30,859
Insurance		14,043
Miscellaneous		51,550
Total Expenses		10,765,424
Net Investment Income		25,804,496
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments		62,956,510
Foreign currency transactions		(119,060	)
		62,837,450
Net change in unrealized appreciation on:
Investments		482,709,992
Translation of assets and liabilities denominated in foreign currencies		227,757
		482,937,749
Net realized and unrealized gain on investments and foreign currency transactions		545,775,199
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	571,579,695

The accompanying notes are an integral part of the financial statements.
132

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford International Equity Fund

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income	$	25,804,496		$	25,926,664
Net realized gain from investments and foreign currency transactions		62,837,450			12,881,122
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		482,937,749			49,514,656
Net increase in net assets from operations		571,579,695			88,322,442
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class 1		—			(261,202	)
Class 2		(4,574,939	)		(7,965,059	)
Class 3		(11,739,881	)		(13,740,642	)
Class 4		(2,546,213	)		—
Class 5		(1,995,692	)		(2,749,424	)
Class K		(1,231,283	)		—
Institutional Class		(62	)		—
Capital gains:
Class 1		—			(284,619	)
Class 2		(11,835,400	)		(8,835,185	)
Class 3		(27,349,629	)		(12,242,254	)
Class 4		(5,601,265	)		—
Class 5		(4,347,019	)		(2,333,843	)
Class K		(2,691,370	)		—
Institutional Class		(146	)		—
Total Dividends and Distributions		(73,912,899	)		(48,412,228	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 1		1,497			18,721,547
Class 2*		21,820,826			197,471,010
Class 3		215,980,083			314,718,178
Class 4		206,702,541			—
Class 5		2,000,007			—
Class K		105,992,735			—
Institutional Class		5,000			—
Purchase fees:
Class 1		129			404
Class 2		3,746			25,933
Class 3		5,862			31,311
Class 5		1,085			6,808
Redemption fees:
Class 1		206			986
Class 2		5,976			37,355
Class 3		9,457			45,973
Class 5		1,728			9,709

The accompanying notes are an integral part of the financial statements.
133

Statements of Changes in Net Assets

Annual Report December 31, 2017

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
Dividends reinvested:
Class 1	$	—		$	545,821
Class 2		16,410,339			16,800,244
Class 3		39,089,511			25,982,896
Class 4		8,147,477			—
Class 5		6,342,711			5,083,267
Class K		3,922,653			—
Institutional Class		208			—
Cost of shares redeemed:
Class 1*		(21,814,876	)		—
Class 2		(295,922,268	)		(363,708,396	)
Class 3		(324,073,123	)		(216,391,115	)
Class 5		(41,800,000	)		(17,199,199	)
Decrease in Net Assets from Transactions in Shares of Beneficial Interest		(57,166,490	)		(17,817,268	)
Total Increase in Net Assets		440,500,306			22,092,946
NET ASSETS
Beginning of year		1,681,600,448			1,659,507,502
End of year (including distributions in excess of net investment income of $1,379,679 and $4,817,588, respectively)	$	2,122,100,754		$	1,681,600,448

* Class 1 shareholders were converted to Class 2 during the period. Please refer to Notes A and D.

The accompanying notes are an integral part of the financial statements.
134

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Equity Fund
Selected data for a Class 2 Share outstanding throughout each year:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Net asset value, beginning of year	$	10.90		$	10.65		$	11.20		$	11.79		$	10.39
From Investment Operations
Net investment income^(a)		0.18			0.17			0.19			0.18			0.19
Net realized and unrealized gain (loss) on investments and foreign currency transactions		3.62			0.39			(0.40	)		(0.52	)		1.40
Net increase (decrease) in net asset value from investment operations		3.80			0.56			(0.21	)		(0.34	)		1.59
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.14	)		(0.15	)		(0.24	)		(0.20	)		(0.19	)
Distributions from net realized gain on investments		(0.36	)		(0.16	)		(0.11	)		(0.05	)		—
Total Dividends and Distributions		(0.50	)		(0.31	)		(0.35	)		(0.25	)		(0.19	)
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(b)		0.00	^(b)		0.01			0.00	^(b)		0.00	^(b)
Net asset value, end of year	$	14.20		$	10.90		$	10.65		$	11.20		$	11.79
Total Return
Total return based on net asset value^(c)		34.96	%		5.24	%		(1.89	)%		(2.93	)%		15.35	%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)	$	478,079		$	578,606		$	708,666		$	542,943		$	637,144
Ratio of net expenses to average net assets		0.61	%		0.61	%		0.62	%		0.61	%		0.61	%
Ratio of net investment income to average net assets		1.41	%		1.53	%		1.61	%		1.57	%		1.72	%
Portfolio turnover rate^(d)		12	%		12	%		15	%		11	%		16	%

^(a) Calculated based upon average shares outstanding during the year.

^(b) Amount is less than $0.005 per share.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
135

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Equity Fund
Selected data for a Class 3 Share outstanding throughout each year:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Net asset value, beginning of year	$	11.03		$	10.79		$	11.34		$	11.93		$	10.52
From Investment Operations
Net investment income^(a)		0.18			0.17			0.20			0.21			0.19
Net realized and unrealized gain (loss) on investments and foreign currency transactions		3.68			0.40			(0.41	)		(0.54	)		1.42
Net increase (decrease) in net asset value from investment operations		3.86			0.57			(0.21	)		(0.33	)		1.61
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.16	)		(0.17	)		(0.24	)		(0.21	)		(0.20	)
Distributions from net realized gain on investments		(0.36	)		(0.16	)		(0.11	)		(0.05	)		—
Total Dividends and Distributions		(0.52	)		(0.33	)		(0.35	)		(0.26	)		(0.20	)
Proceeds from Purchase Fees and Redemption Fees^(a)		0.00	^(b)		0.00	^(b)		0.01			0.00	^(b)		0.00	^(b)
Net asset value, end of year	$	14.37		$	11.03		$	10.79		$	11.34		$	11.93
Total Return
Total return based on net asset value^(c)		35.05	%		5.31	%		(1.82	)%		(2.83	)%		15.34	%
Ratios/Supplemental Data
Net assets, end of year (000's omitted)	$	1,119,162		$	915,782		$	776,265		$	1,078,665		$	1,268,490
Ratio of net expenses to average net assets		0.55	%		0.54	%		0.54	%		0.54	%		0.54	%
Ratio of net investment income to average net assets		1.35	%		1.54	%		1.69	%		1.76	%		1.75	%
Portfolio turnover rate^(d)		12	%		12	%		15	%		11	%		16	%

^(a) Calculated based upon average shares outstanding during the year.

^(b) Amount is less than $0.005 per share.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
136

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Equity Fund
Selected data for a Class 4 Share outstanding throughout the period:

	For the Period July 10, 2017^(a)through December 31, 2017			For the Period January 1, 2015^(a)through December 10, 2015			For the Year Ended December 31, 2014			For the Year Ended December 31, 2013
Net asset value, beginning of period	$	13.43		$	11.60		$	12.20		$	10.75
From Investment Operations
Net investment income^(b)		0.05			0.19			0.22			0.20
Net realized and unrealized gain on investments and foreign currency transactions		1.64			(0.33	)		(0.57	)		1.45
Net increase in net asset value from investment operations		1.69			(0.14	)		(0.35	)		1.65
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.17	)		(0.01	)		(0.21	)		(0.20	)
Distributions from net realized gain on investments		(0.36	)		—			(0.05	)		—
Total Dividends and Distributions		(0.53	)		(0.01	)		(0.26	)		(0.20	)
Proceeds from Purchase Fees and Redemption Fees^(b)		—			0.01			0.01			0.00	^(c)
Net asset value, end of period	$	14.59		$	11.46		$	11.60		$	12.20
Total Return
Total return based on net asset value^(d)		12.60	%		(1.04	)%		(2.82	)%		15.42	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	232,741		$	59		$	352,890		$	611,786
Ratio of net expenses to average net assets		0.53	%*		0.52	%*		0.51	%		0.51	%
Ratio of net investment income to average net assets		0.77	%*		1.72	%*		1.82	%		1.77	%
Portfolio turnover rate^(e)		12	%		15	%		11	%		16	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
137

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Equity Fund
Selected data for a Class 5 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Period April 7, 2014^(a)through December 31, 2014
Net asset value, beginning of period	$	11.36		$	11.11		$	11.67		$	12.25
From Investment Operations
Net investment income^(b)		0.20			0.19			0.22			0.15
Net realized and unrealized gain (loss) on investments and foreign currency transactions		3.79			0.41			(0.42	)		(0.46	)
Net increase (decrease) in net asset value from investment operations		3.99			0.60			(0.20	)		(0.31	)
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.17	)		(0.19	)		(0.25	)		(0.22	)
Distributions from net realized gain on investments		(0.36	)		(0.16	)		(0.11	)		(0.05	)
Total Dividends and Distributions		(0.53	)		(0.35	)		(0.36	)		(0.27	)
Proceeds from Purchase Fees and Redemption Fees^(b)		0.00	^(c)		0.00	^(c)		0.00	^(c)		0.00	^(c)
Net asset value, end of period	$	14.82		$	11.36		$	11.11		$	11.67
Total Return
Total return based on net asset value^(d)		35.16	%		5.40	%		(1.75	)%		(2.60	)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	183,384		$	167,297		$	174,577		$	296,649
Ratio of net expenses to average net assets		0.47	%		0.46	%		0.47	%		0.47	%*
Ratio of net investment income to average net assets		1.45	%		1.66	%		1.83	%		1.61	%*
Portfolio turnover rate^(e)		12	%		12	%		15	%		11	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
138

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Equity Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	12.44
From Investment Operations
Net investment income^(b)		0.01
Net realized and unrealized gain on investments and foreign currency transactions		2.25
Net increase in net asset value from investment operations		2.26
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.17	)
Distributions from net realized gain on investments		(0.36	)
Total Dividends and Distributions		(0.53	)
Net asset value, end of period	$	14.17
Total Return
Total return based on net asset value^(c)		18.19	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	108,728
Ratio of net expenses to average net assets		0.63	%*
Ratio of net investment income to average net assets		0.12	%*
Portfolio turnover rate^(d)		12	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
139

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Equity Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	12.44
From Investment Operations
Net investment income^(b)		0.09
Net realized and unrealized gain on investments and foreign currency transactions		2.17
Net increase in net asset value from investment operations		2.26
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.15	)
Distributions from net realized gain on investments		(0.36	)
Total Dividends and Distributions		(0.51	)
Net asset value, end of period	$	14.19
Total Return
Total return based on net asset value^(c)		18.25	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets		0.62	%*
Ratio of net investment income to average net assets		1.01	%*
Portfolio turnover rate^(d)		12	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
140

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Long Term Global Growth Equity Fund

	Value		% of Total Net Assets
Apparel Retailers	$	6,221,662		3.3	%
Automobiles & Parts		11,200,194		5.9
Biotechnology		4,301,821		2.3
Broadline Retailers		9,014,870		4.7
Clothing & Accessories		4,928,344		2.6
General Retailers		22,132,457		11.7
Health Care Equipment and Supplies		1,745,402		0.9
Hotels Restaurants and Leisure		3,903,159		2.1
Industrial Machinery		2,713,827		1.4
Internet Software & Services		52,007,462		27.4
Life Insurance		3,381,846		1.8
Medical Equipment		6,076,251		3.2
Personal Products		2,216,245		1.2
Pharmaceuticals, Biotechnology & Life Sciences		18,891,054		10.0
Software		10,768,108		5.7
Specialized Consumer Services		12,733,093		6.7
Technology Hardware & Equipment		13,502,981		7.2
Total Value of Investments		185,738,776		98.1
Other assets less liabilities		3,577,577		1.9
Net Assets	$	189,316,353		100.0	%

141

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Long Term Global Growth Equity Fund

	Shares		Value
COMMON STOCKS — 98.1%
AUSTRALIA — 1.2%
Atlassian Corp. PLC, Class A ^(a)		50,761	$	2,310,641
CHINA — 25.1%
Alibaba Group Holding Ltd. ADR ^(a)		73,845		12,733,093
Baidu, Inc. ADR ^(a)		39,041		9,143,793
Ctrip.com International Ltd. ADR ^(a)		88,507		3,903,159
NetEase, Inc.		14,250		4,917,247
Tencent Holdings Ltd.		325,300		16,836,863
				47,534,155
FRANCE — 7.6%
Hermes International		5,989		3,203,945
Kering		19,151		9,014,870
L'Oreal SA		10,002		2,216,245
				14,435,060
GERMANY — 0.8%
Rocket Internet SE 144A ^(a)(b)		61,819		1,558,539
HONG KONG — 1.8%
AIA Group Ltd.		397,600		3,381,846
NETHERLANDS — 3.1%
ASML Holding NV		33,161		5,765,303
SPAIN — 3.3%
Inditex SA		178,929		6,221,662
SWEDEN — 1.4%
Atlas Copco AB, A Shares		62,884		2,713,827
UNITED STATES — 53.8%
Alphabet, Inc., Class C ^(a)		7,338		7,678,483
Amazon.com, Inc. ^(a)		14,115		16,507,069
Bluebird Bio, Inc. ^(a)		23,378		4,163,622
DexCom, Inc. ^(a)		30,413		1,745,402
Facebook, Inc., Class A ^(a)		76,114		13,431,076

The accompanying notes are an integral part of the financial statements.
142

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Long Term Global Growth Equity Fund

	Shares		Value
Illumina, Inc. ^(a)		56,349	$	12,311,693
Intuitive Surgical, Inc. ^(a)		16,650		6,076,251
Ionis Pharmaceuticals, Inc. ^(a)		37,167		1,869,500
Juno Therapeutics, Inc. ^(a)		53,212		2,432,321
Netflix, Inc. ^(a)		29,305		5,625,388
NVIDIA Corp.		39,988		7,737,678
salesforce.com, Inc. ^(a)		33,095		3,383,302
Seattle Genetics, Inc. ^(a)		45,154		2,415,739
Tesla, Inc. ^(a)		35,973		11,200,194
Under Armour, Inc., Class A ^(a)		119,501		1,724,399
Workday, Inc., Class A ^(a)		34,555		3,515,626
				101,817,743
TOTAL INVESTMENTS — 98.1%
(cost $135,450,604)			$	185,738,776
Other assets less liabilities — 1.9%				3,577,577
NET ASSETS — 100.0%			$	189,316,353

^(a) Non-income producing security.

ADR — American Depositary Receipt.

The accompanying notes are an integral part of the financial statements.
143

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Long Term Global Growth Equity Fund

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Australia	$	2,310,641	$	—	$	—	$	2,310,641
China		30,697,292		16,836,863		—		47,534,155
France		—		14,435,060		—		14,435,060
Germany		—		1,558,539		—		1,558,539
Hong Kong		—		3,381,846		—		3,381,846
Netherlands		—		5,765,303		—		5,765,303
Spain		—		6,221,662		—		6,221,662
Sweden		—		2,713,827		—		2,713,827
United States		101,817,743		—		—		101,817,743
Total	$	134,825,676	$	50,913,100	$	—	$	185,738,776

There were no transfers between levels for the year ending December 31, 2017.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
144

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Long Term Global Growth Equity Fund

ASSETS
Investments, at value (cost $135,450,604)	$	185,738,776
Cash		3,885,875
Dividends receivable		1,363
Tax reclaims receivable		14,855
Prepaid assets		30,537
Total Assets		189,671,406
LIABILITIES
Advisory fee payable		160,911
Servicing fee payable		68,014
Trustee fee payable		2,250
Accrued expenses		123,878
Total Liabilities		355,053
NET ASSETS	$	189,316,353
COMPOSITION OF NET ASSETS
Paid-in capital	$	135,408,472
Accumulated net investment loss		(125,327	)
Accumulated net realized gain on investments and foreign currency transactions		3,743,672
Net unrealized appreciation in value of investments and foreign currencies		50,289,536
	$	189,316,353
NET ASSET VALUE, PER SHARE
Class 2 ($59,869,525 / 3,453,855 shares outstanding), unlimited authorized, no par value	$	17.33
Class 4 ($58,802,116 / 2,941,772 shares outstanding), unlimited authorized, no par value	$	19.99
Class K ($70,638,501 / 4,073,618 shares outstanding), unlimited authorized, no par value	$	17.34
Institutional Class ($6,211 / 358 shares outstanding), unlimited authorized, no par value	$	17.34

The accompanying notes are an integral part of the financial statements.
145

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford Long Term Global Growth Equity Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $40,201)	$	308,858
Interest		191
Total Investment Income		309,049
EXPENSES
Advisory fee (Note B)		574,302
Shareholder Servicing fees — Class 1 Shares (Note B)		8,302
Shareholder Servicing fees — Class 2 Shares (Note B)		91,191
Shareholder Servicing fees — Class 4 Shares (Note B)		33,477
Administration & Supervisory Fee — Class K Shares (Note B)		38,814
Administration & Supervisory Fee — Institutional Class Shares (Note B)		7
Fund accounting		91,327
Transfer agency		58,111
Professional fees		29,981
Custody		16,340
Legal		28,813
Trustees' fees		6,229
Insurance		736
Miscellaneous		18,031
Total Expenses		995,661
Fees waived		(58,131	)
Net Expenses		937,530
Net Investment Loss		(628,481	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments		4,833,627
Foreign currency transactions		(41,518	)
		4,792,109
Net change in unrealized appreciation on:
Investments		42,970,362
Translation of assets and liabilities denominated in foreign currencies		2,695
		42,973,057
Net realized and unrealized gain on investments and foreign currency transactions		47,765,166
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	47,136,685

The accompanying notes are an integral part of the financial statements.
146

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford Long Term Global Growth Equity Fund

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss	$	(628,481	)	$	(328,739	)
Net realized gain (loss) on investments and foreign currency transactions		4,792,109			(1,141,117	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		42,973,057			(1,321,667	)
Net increase (decrease) in net assets from operations		47,136,685			(2,791,523	)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Capital gains:
Class 1		—			(68,401	)
Class 2		—			(193,711	)
Class 4		—			(216,535	)
Total Dividends and Distributions		—			(478,647	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 1		19,028			1,066,932
Class 2*		12,925,524			—
Class 4		10,989,000			—
Class K		66,005,000			—
Institutional Class		5,000			—
Purchase fees:
Class 1		1,663			141
Class 2		4,974			425
Class 4		4,405			502
Redemption fees:
Class 1		—			2,214
Class 2		—			6,897
Class 4		—			6,965
Dividends reinvested:
Class 1		—			68,401
Class 2		—			193,711
Class 4		—			216,535
Cost of shares redeemed:
Class 1*		(12,790,797	)		—
Class 2		(7,000,025	)		(2,502,502	)
Class 4		(22	)		(13,573,574	)
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest		70,163,750			(14,513,353	)
Total Increase (Decrease) in Net Assets		117,300,435			(17,783,523	)
NET ASSETS
Beginning of year		72,015,918			89,799,441
End of year (including accumulated net investment loss of $125,327 and $—, respectively)	$	189,316,353		$	72,015,918

* Class 1 shareholders were converted to Class 2 during the period. Please refer to Notes A and D.

The accompanying notes are an integral part of the financial statements.
147

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Long Term Global Growth Equity Fund
Selected data for a Class 2 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Period June 10, 2014^(a)through December 31, 2014
Net asset value, beginning of period	$	11.25		$	11.76		$	10.43		$	10.00
From Investment Operations
Net investment loss^(b)		(0.08	)		(0.05	)		(0.04	)		(0.03	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		6.16			(0.39	)		1.47			0.47
Net increase (decrease) in net asset value from investment operations		6.08			(0.44	)		1.43			0.44
Dividends and Distributions to Shareholders
Distributions from net realized gain on investments		—			(0.07	)		(0.12	)		(0.01	)
Total Dividends and Distributions		—			(0.07	)		(0.12	)		(0.01	)
Proceeds from Purchase Fees and Redemption Fees^(b)		0.00	^(c)		0.00	^(c)		0.02			—
Net asset value, end of period	$	17.33		$	11.25		$	11.76		$	10.43
Total Return
Total return based on net asset value^(d)		54.07	%		(3.80	)%		13.99	%		4.39	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	59,870		$	32,434		$	36,177		$	26,095
Ratio of net expenses to average net assets, before waiver		0.82	%		0.87	%		0.91	%		0.88	%*
Ratio of net expenses to average net assets, after waiver		0.77	%		0.77	%		0.77	%		0.80	%*
Ratio of net investment loss to average net assets		(0.50	)%		(0.43	)%		(0.34	)%		(0.57	)%*
Portfolio turnover rate^(e)		13	%		15	%		10	%		8	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
148

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Long Term Global Growth Equity Fund
Selected data for a Class 4 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Period October 7, 2015^(a)through December 31, 2015
Net asset value, beginning of period	$	12.96		$	13.53		$	12.22
From Investment Operations
Net investment loss^(b)		(0.07	)		(0.04	)		(0.01	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		7.10			(0.46	)		1.39
Net increase (decrease) in net asset value from investment operations		7.03			(0.50	)		1.38
Dividends and Distributions to Shareholders
Distributions from net realized gain on investments		—			(0.07	)		(0.08	)
Total Dividends and Distributions		—			(0.07	)		(0.08	)
Proceeds from Purchase Fees and Redemption Fees^(b)		0.00	^(c)		0.00	^(c)		0.01
Net asset value, end of period	$	19.99		$	12.96		$	13.53
Total Return
Total return based on net asset value^(d)		54.22	%		(3.71	)%		11.31	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	58,802		$	28,722		$	43,344
Ratio of net expenses to average net assets, before waiver		0.72	%		0.76	%		0.75	%*
Ratio of net expenses to average net assets, after waiver		0.67	%		0.67	%		0.67	%*
Ratio of net investment loss to average net assets		(0.41	)%		(0.33	)%		(0.39	)%*
Portfolio turnover rate^(e)		13	%		15	%		10	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
149

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Long Term Global Growth Equity Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	13.96
From Investment Operations
Net investment loss^(b)		(0.07	)
Net realized and unrealized gain on investments and foreign currency transactions		3.45
Net increase in net asset value from investment operations		3.38
Net asset value, end of period	$	17.34
Total Return
Total return based on net asset value^(c)		24.21	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	70,639
Ratio of net expenses to average net assets, before waiver		0.80	%*
Ratio of net expenses to average net assets, after waiver		0.77	%*
Ratio of net investment loss to average net assets		(0.61	)%*
Portfolio turnover rate^(d)		13	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
150

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Long Term Global Growth Equity Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	13.96
From Investment Operations
Net investment loss^(b)		(0.06	)
Net realized and unrealized gain on investments and foreign currency transactions		3.44
Net increase in net asset value from investment operations		3.38
Net asset value, end of period	$	17.34
Total Return
Total return based on net asset value^(c)		24.21	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets, before waiver		0.80	%*
Ratio of net expenses to average net assets, after waiver		0.80	%*
Ratio of net investment loss to average net assets		(0.56	)%*
Portfolio turnover rate^(d)		13	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
151

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Positive Change Equity Fund

	Value		% of Total Net Assets
Automobiles & Parts	$	51,061		5.0	%
Banks		46,521		4.6
Chemicals		75,116		7.4
Construction & Materials		73,345		7.2
Electric Utilities		20,034		2.0
Electrical Equipment		20,172		2.0
Food Producers & Processors		11,211		1.1
Health Care Equipment, Supplies & Services		94,826		9.4
Industrial Engineering — Machinery		39,624		3.9
Internet, Software & Services		88,718		8.7
Life Insurance		36,508		3.6
Media		42,065		4.1
Medical Equipment		39,260		3.9
Mobile Telecommunications		6,120		0.6
Personal Products		22,797		2.2
Pharmaceuticals & Biotechnology		214,477		21.1
Semiconductors		59,317		5.8
Technology Hardware & Equipment		50,071		4.9
Total Value of Investments		991,243		97.5
Other assets less liabilities		25,122		2.5
Net Assets	$	1,016,365		100.0	%

152

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2016
Baillie Gifford Positive Change Equity Fund

	Shares		Value
COMMON STOCKS — 97.5%
BELGIUM — 4.8%
Umicore SA		1,031	$	48,817
CHINA — 4.6%
Tencent Holdings Ltd.		900		46,582
DENMARK — 13.1%
Chr. Hansen Holding A/S		606		56,843
Novozymes A/S, B Shares		985		56,231
Orsted A/S 144A ^(a)		367		20,034
				133,108
INDONESIA — 4.6%
Bank Rakyat Indonesia Persero Tbk PT		173,400		46,521
IRELAND — 4.4%
Kingspan Group PLC		1,014		44,431
JAPAN — 11.3%
euglena Co., Ltd. ^(b)		1,200		11,211
M3, Inc.		1,200		42,065
Pigeon Corp.		600		22,797
Sysmex Corp.		500		39,260
				115,333
KENYA — 0.6%
Safaricom, Ltd.		23,600		6,120
NETHERLANDS — 6.9%
ASML Holding NV		288		50,071
Philips Lighting NV 144A ^(a)		550		20,172
				70,243
SOUTH AFRICA — 3.6%
Discovery Ltd.		2,428		36,508
SWEDEN — 2.8%
Nibe Industrier AB B Shares		3,018		28,914

The accompanying notes are an integral part of the financial statements.
153

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Positive Change Equity Fund

	Shares		Value
TAIWAN — 5.8%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		1,496	$	59,317
UNITED STATES — 35.0%
ABIOMED, Inc. ^(b)		266		49,851
Alnylam Pharmaceuticals, Inc. ^(b)		351		44,595
Alphabet, Inc., Class A ^(b)		40		42,136
DexCom, Inc. ^(b)		545		31,278
Ecolab, Inc.		196		26,299
Glaukos Corp. ^(b)		534		13,697
Illumina, Inc. ^(b)		260		56,808
Tesla, Inc. ^(b)		164		51,061
Xylem, Inc.		581		39,624
				355,349
TOTAL INVESTMENTS — 97.5%
(cost $974,533)			$	991,243
Other assets less liabilities — 2.5%				25,122
NET ASSETS — 100.0%			$	1,016,365

^(a) 144A — Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Prices are obtained daily from the London International Stock Exchange; therefore, fair valuation is typically not required. At December 31, 2017, the net value of these securities was $40,206 representing 4.0% of net assets.

^(b) Non-income producing security.

ADR — American Depositary Receipt.

The accompanying notes are an integral part of the financial statements.
154

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Positive Change Equity Fund

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Belgium	$	—	$	48,817	$	—	$	48,817
China		—		46,582		—		46,582
Denmark		76,877		56,231		—		133,108
Indonesia		46,521		—		—		46,521
Ireland		—		44,431		—		44,431
Japan		—		115,333		—		115,333
Kenya		6,120		—		—		6,120
Netherlands		—		70,243		—		70,243
South Africa		—		36,508		—		36,508
Sweden		—		28,914		—		28,914
Taiwan		59,317		—		—		59,317
United States		355,349		—		—		355,349
Total	$	544,184	$	447,059	$	—	$	991,243

There were no transfers between levels for the period ended December 31, 2017.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
155

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford Positive Change Equity Fund

ASSETS
Investments, at value (cost $974,533)	$	991,243
Cash		25,330
Due from Investment Advisor		23,068
Dividends receivable		80
Total Assets		1,039,721
LIABILITIES
Servicing fee payable		75
Trustee fee payable		12
Accrued expenses		23,269
Total Liabilities		23,356
NET ASSETS	$	1,016,365
COMPOSITION OF NET ASSETS
Paid-in capital	$	999,793
Accumulated net investment loss		(138	)
Accumulated net realized loss on investments and foreign currency transactions		—
Net unrealized appreciation in value of investments and foreign currencies		16,710
	$	1,016,365
NET ASSET VALUE, PER SHARE
Class K ($508,183 / 50,000 shares outstanding), unlimited authorized, no par value	$	10.16
Institutional Class ($508,182 / 50,000 shares outstanding), unlimited authorized, no par value	$	10.16

The accompanying notes are an integral part of the financial statements.
156

Statement of Operations

Annual Report December 31, 2017

For the Period December 14, 2017^(a) through December 31, 2017
Baillie Gifford Positive Change Equity Fund

INVESTMENT INCOME
Dividends	$	80
Total Investment Income		80
EXPENSES
Advisory fee (Note B)		146
Administration & Supervisory Fee — Class K Shares (Note B)		38
Administration & Supervisory Fee — Institutional Class Shares (Note B)		37
Professional fees		20,267
Custody		500
Fund accounting		5
Transfer agency		2,384
Legal		54
Trustees' fees		12
Miscellaneous		58
Total Expenses		23,501
Fees waived		(23,214	)
Net Expenses		287
Net Investment Loss		(207	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss from:
Foreign currency transactions		(138	)
		(138	)
Net change in unrealized appreciation on:
Investments		16,710
		16,710
Net realized and unrealized gain on investments and foreign currency transactions		16,572
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	16,365

^(a) Commencement of investment operations.

The accompanying notes are an integral part of the financial statements.
157

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford Positive Change Equity Fund

	For the Period December 14, 2017^(a)through December 31, 2017
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment loss	$	(207	)
Net realized loss from foreign currency transactions		(138	)
Net change in unrealized appreciation on investments		16,710
Net increase in net assets from operations		16,365
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class K		500,000
Institutional Class		500,000
Increase in Net Assets from Transactions in Shares of Beneficial Interest		1,000,000
Total Increase in Net Assets		1,016,365
NET ASSETS
Beginning of period		—
End of period (including accumulated net investment loss of $138)	$	1,016,365

^(a) Commencement of investment operations.

The accompanying notes are an integral part of the financial statements.
158

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Positive Change Equity Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period December 14, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.00
From Investment Operations
Net investment loss^(b)		(0.00	)^(c)
Net realized and unrealized gain on investments and foreign currency transactions		0.16
Net increase in net asset value from investment operations		0.16
Net asset value, end of period	$	10.16
Total Return
Total return based on net asset value^(d)		1.60	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	508
Ratio of net expenses to average net assets, before waiver		53.13	%*
Ratio of net expenses to average net assets, after waiver		0.65	%*
Ratio of net investment loss to average net assets		(0.47	)%*
Portfolio turnover rate^(e)		0	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at fund level.

The accompanying notes are an integral part of the financial statements.
159

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford Positive Change Equity Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period December 14, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	10.00
From Investment Operations
Net investment loss^(b)		(0.00	)^(c)
Net realized and unrealized gain on investments and foreign currency transactions		0.16
Net increase in net asset value from investment operations		0.16
Net asset value, end of period	$	10.16
Total Return
Total return based on net asset value^(d)		1.60	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	508
Ratio of net expenses to average net assets, before waiver		53.13	%*
Ratio of net expenses to average net assets, after waiver		0.80	%*
Ratio of net investment loss to average net assets		(0.47	)%*
Portfolio turnover rate^(e)		0	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at fund level.

The accompanying notes are an integral part of the financial statements.
160

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford U.S. Equity Growth Fund

	Value		% of Total Net Assets
Aerospace & Defense	$	14,466		1.1	%
Automobiles & Parts		82,819		6.1
Banks		43,580		3.2
Construction & Materials		57,218		4.3
General Financial		172,059		12.8
General Industrials		21,271		1.6
General Retailers		229,597		17.0
Health Care Equipment & Services		72,476		5.3
Household Goods		43,587		3.2
Industrial Engineering		18,973		1.4
Internet, Software & Services		175,998		13.0
Leisure Goods		11,967		0.9
Nonlife Insurance		22,783		1.7
Oil Equipment & Services		7,953		0.6
Personal Goods		22,690		1.7
Pharmaceuticals & Biotechnology		147,856		11.0
Real Estate		11,087		0.8
Support Services		53,488		3.9
Technology Hardware & Equipment		43,709		3.3
Total Value of Investments		1,253,577		92.9
Other assets less liabilities		95,956		7.1
Net Assets	$	1,349,533		100.0	%

161

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford U.S. Equity Growth Fund

	Shares		Value
COMMON STOCKS — 92.9%
CANADA — 1.3%
Shopify, Inc., Class A ^(a)		173	$	17,473
UNITED STATES — 91.6%
ABIOMED, Inc. ^(a)		204		38,232
Activision Blizzard, Inc.		189		11,967
Alnylam Pharmaceuticals, Inc. ^(a)		205		26,045
Alphabet, Inc., Class C ^(a)		69		72,202
Amazon.com, Inc. ^(a)		103		120,455
American Express Co.		199		19,763
Celgene Corp. ^(a)		178		18,576
CoStar Group, Inc. ^(a)		66		19,599
Denali Therapeutics, Inc. ^(a)		763		11,933
Ellie Mae, Inc. ^(a)		253		22,618
Facebook, Inc., Class A ^(a)	��	413		72,878
First Republic Bank		503		43,580
Fortive Corp.		294		21,271
Glaukos Corp. ^(a)		371		9,516
GrubHub, Inc. ^(a)		841		60,384
HEICO Corp., Class A		183		14,466
Illumina, Inc. ^(a)		230		50,253
Interactive Brokers Group, Inc., Class A		432		25,579
Juno Therapeutics, Inc. ^(a)		311		14,216
Markel Corp. ^(a)		20		22,783
MarketAxess Holdings, Inc.		322		64,963
Martin Marietta Materials, Inc.		95		20,999
Mastercard, Inc., Class A		257		38,899
Netflix, Inc. ^(a)		254		48,758
New Relic, Inc. ^(a)		189		10,919
NOW, Inc. ^(a)		721		7,953
NVIDIA Corp.		109		21,091
Redfin Corp. ^(a)		354		11,087
Seattle Genetics, Inc. ^(a)		101		5,403
Stitch Fix, Inc., Class A ^(a)		469		12,114
Tableau Software, Inc., Class A ^(a)		289		19,999
TD Ameritrade Holding Corp.		447		22,855
Tesla, Inc. ^(a)		266		82,819
Under Armour, Inc., Class C ^(a)		794		10,576

The accompanying notes are an integral part of the financial statements.
162

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford U.S. Equity Growth Fund

	Shares		Value
Verisk Analytics, Inc. ^(a)		171	$	16,416
Vertex Pharmaceuticals, Inc. ^(a)		143		21,430
Wabtec Corp.		233		18,973
Waters Corp. ^(a)		128		24,728
Watsco, Inc.		213		36,219
Wayfair, Inc., Class A ^(a)		543		43,587
				1,236,104
TOTAL INVESTMENTS — 92.9%
(cost $923,808)			$	1,253,577
Other assets less liabilities — 7.1%				95,956
NET ASSETS — 100.0%			$	1,349,533

^(a) Non-income producing security.

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Canada	$	17,473	$	—	$	—	$	17,473
United States		1,236,104		—		—		1,236,104
Total	$	1,253,577	$	—	$	—	$	1,253,577

There were no transfers between levels for the year ending December 31, 2017.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
163

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford U.S. Equity Growth Fund

ASSETS
Investments, at value (cost $923,808)	$	1,253,577
Cash		6,642
Due from Investment Advisor		129,419
Prepaid assets		30,378
Total Assets		1,420,016
LIABILITIES
Servicing fee payable		566
Trustee fee payable		15
Accrued expenses		69,902
Total Liabilities		70,483
NET ASSETS	$	1,349,533
COMPOSITION OF NET ASSETS
Paid-in capital	$	1,010,513
Accumulated net investment loss		—
Accumulated net realized gain on investments		9,251
Net unrealized appreciation in value of investments		329,769
	$	1,349,533
NET ASSET VALUE, PER SHARE
Class K ($1,343,683 / 100,379 shares outstanding), unlimited authorized, no par value	$	13.39
Institutional Class ($5,850 / 437 shares outstanding), unlimited authorized, no par value	$	13.39

The accompanying notes are an integral part of the financial statements.
164

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford U.S. Equity Growth Fund

INVESTMENT INCOME
Dividends	$	3,908
Total Investment Income		3,908
EXPENSES
Advisory fee (Note B)		3,686
Shareholder Servicing fees — Class 1 Shares (Note B)		894
Administration & Supervisory Fee — Class K Shares (Note B)		1,436
Administration & Supervisory Fee — Institutional Class Shares (Note B)		6
Professional fees		28,001
Custody		3,117
Fund accounting		34,535
Transfer agency		28,205
Legal		21,562
Trustees' fees		65
Insurance		8
Miscellaneous		16,146
Total Expenses		137,661
Fees waived		(130,517	)
Net Expenses		7,144
Net Investment Loss		(3,236	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from:
Investments		17,349
		17,349
Net change in unrealized appreciation on:
Investments		333,045
		333,045
Net realized and unrealized gain on investments		350,394
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	347,158

The accompanying notes are an integral part of the financial statements.
165

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford U.S. Equity Growth Fund

	For the Year Ended December 31, 2017			For the Period December 6, 2016^(a)through December 31, 2016
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss	$	(3,236	)	$	(361	)
Net realized gain from investments		17,349			1,012
Net change in unrealized appreciation (depreciation) on investments		333,045			(3,276	)
Net increase (decrease) in net assets from operations		347,158			(2,625	)
DIVIIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Capital gains:
Class K		(5,489	)		—
Institutional Class		(24	)		—
Total Dividends and Distributions		(5,513	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 1		—			1,000,000
Class K*		1,148,640			—
Institutional Class		5,000			—
Dividends reinvested:
Class K		5,489			—
Institutional Class		24			—
Cost of shares redeemed:
Class 1*		(1,148,640	)		—
Increase in Net Assets from Transactions in Shares of Beneficial Interest		10,513			1,000,000
Total Increase in Net Assets		352,158			997,375
NET ASSETS
Beginning of period		997,375			—
End of period (including accumulated net investment loss of $— and $—, respectively)	$	1,349,533		$	997,375

^(a) Commencement of investment operations.

* Class 1 shareholders were converted to Class K during the period. Please refer to Notes A and D.

The accompanying notes are an integral part of the financial statements.
166

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford U.S. Equity Growth Fund
Selected data for a Class K Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	11.49
From Investment Operations
Net investment loss^(b)		(0.03	)
Net realized and unrealized gain on investments		1.98
Net increase in net asset value from investment operations		1.95
Dividends and Distributions to Shareholders
Distributions from net realized gain on investments		(0.05	)
Total Dividends and Distributions		(0.05	)
Net asset value, end of period	$	13.39
Total Return
Total return based on net asset value^(c)		17.01	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	1,344
Ratio of net expenses to average net assets, before waiver		13.11	%*
Ratio of net expenses to average net assets, after waiver		0.57	%*
Ratio of net investment loss to average net assets		(0.31	)%*
Portfolio turnover rate^(d)		15	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
167

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford U.S. Equity Growth Fund
Selected data for an Institutional Class Share outstanding throughout the period:

	For the Period April 28, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	11.49
From Investment Operations
Net investment loss^(b)		(0.03	)
Net realized and unrealized gain on investments		1.98
Net increase in net asset value from investment operations		1.95
Dividends and Distributions to Shareholders
Distributions from net realized gain on investments		(0.05	)
Total Dividends and Distributions		(0.05	)
Net asset value, end of period	$	13.39
Total Return
Total return based on net asset value^(c)		17.01	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	6
Ratio of net expenses to average net assets, before waiver		13.11	%*
Ratio of net expenses to average net assets, after waiver		0.72	%*
Ratio of net investment loss to average net assets		(0.31	)%*
Portfolio turnover rate^(d)		15	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
168

Industry Diversification Table

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Choice Fund

	Value		% of Total Net Assets
Apparel Retailers	$	28,746,383		5.7	%
Asset Managers		18,574,880		3.7
Auto Parts		4,948,465		1.0
Banks		25,942,298		5.1
Beverages, Food & Tobacco		7,118,567		1.4
Brewers		11,590,738		2.3
Broadline Retailers		8,090,138		1.6
Business Support Services		6,596,684		1.3
Chemicals		6,082,104		1.2
Clothing & Accessories		10,933,540		2.2
Commercial Services & Supplies		5,717,337		1.1
Construction & Materials		4,804,516		1.0
Containers & Packaging		5,227,342		1.0
Distillers & Vintners		6,109,531		1.2
Electronic & Electrical Equipment		28,915,248		5.7
Food & Drug Retailers/Wholesalers		19,525,689		3.9
Food & Staples		9,036,512		1.8
Footwear		7,932,971		1.6
General Industries		7,178,886		1.4
Hotels Restaurants and Leisure		5,544,517		1.1
Industrial Engineering		8,439,650		1.6
Industrial Machinery		36,333,737		7.1
Internet		12,496,628		2.5
Investment Services		3,928,078		0.8
Leisure Goods		5,356,157		1.0
Life Insurance		7,656,784		1.5
Media & Photography		15,077,797		3.0
Media Agencies		8,891,589		1.7
Medical Equipment		16,116,986		3.2
Mortgage Finance		4,035,971		0.8
Nondurable Household Products		10,520,588		2.1
Nonlife Insurance		11,885,601		2.4
Oil Equipment & Services		2,723,998		0.5
Personal Products		15,322,834		3.0
Pharmaceuticals & Biotechnology		19,754,021		3.9
Property & Casualty Insurance		9,768,340		1.9
Recreational Products		5,664,512		1.1
Retailers — General		11,067,469		2.2
Semiconductors		13,160,152		2.6
Speciality Finance		6,900,441		1.3

169

Industry Diversification Table

Annual Report December 31, 2017

	Value		% of Total Net Assets
Specialized Consumer Services	$	24,711,556		4.7	%
Support Services		5,905,548		1.2
Technology Hardware & Equipment		11,773,513		2.2
Telecommunication Services		4,449,387		0.9
Travel & Leisure		2,102,395		0.4
Total Value of Investments		502,660,078		98.9
Other assets less liabilities		5,693,769		1.1
Net Assets	$	508,353,847		100.0	%

170

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Choice Fund

	Shares		Value
COMMON STOCKS—98.5%
AUSTRALIA—5.5%
Brambles Ltd.		667,002	$	5,227,342
Cochlear Ltd.		78,662		10,485,849
Mesoblast Ltd. ^(a)		388,292		442,329
SEEK Ltd.		386,628		5,717,337
Treasury Wine Estates Ltd.		492,348		6,109,531
				27,982,388
BRAZIL—1.2%
Raia Drogasil SA		216,700		5,994,820
CANADA—1.6%
Fairfax Financial Holdings Ltd.		10,022		5,336,615
Shopify, Inc., Class A ^(a)		25,370		2,562,370
				7,898,985
CHINA—7.1%
Alibaba Group Holding Ltd. ADR ^(a)		54,528		9,402,263
Baidu, Inc. ADR ^(a)		38,171		8,940,030
Ctrip.com International Ltd. ADR ^(a)		125,726		5,544,517
JD.com, Inc. ADR ^(a)		126,088		5,222,565
Tsingtao Brewery Co., Ltd., Class H		1,380,057		7,118,567
				36,227,942
DENMARK—5.4%
Carlsberg A/S, B Shares		69,110		8,288,932
Novo Nordisk A/S, B Shares		202,041		10,856,772
Novozymes A/S, B Shares		148,105		8,454,920
				27,600,624
FINLAND—1.2%
Kone Oyj, B Shares		111,378		5,981,286
FRANCE—1.5%
Legrand SA		100,418		7,720,005

The accompanying notes are an integral part of the financial statements.
171

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Choice Fund

	Shares		Value
GERMANY—4.7%
adidas AG		39,667	$	7,932,971
Infineon Technologies AG		216,070		5,884,479
Zalando SE 144A ^(a)(b)		189,112		9,971,437
				23,788,887
HONG KONG—1.8%
AIA Group Ltd.		900,200		7,656,784
Cafe de Coral Holdings Ltd.		512,298		1,406,502
				9,063,286
INDIA—3.4%
Asian Paints Ltd.		265,065		4,804,516
Housing Development Finance Corp., Ltd.		150,716		4,035,971
Mahindra & Mahindra Ltd. GDR		266,711		6,214,366
MakeMytrip Ltd. ^(a)		70,432		2,102,395
				17,157,248
JAPAN—17.6%
Advantest Corp.		209,800		3,870,670
DENSO Corp.		82,600		4,948,465
Japan Exchange Group, Inc.		226,400		3,928,078
Kakaku.com, Inc.		341,600		5,766,438
Kao Corp.		155,700		10,520,588
MS&AD Insurance Group Holdings, Inc.		289,600		9,768,340
Olympus Corp.		147,200		5,631,137
Pigeon Corp.		172,600		6,557,961
Rakuten, Inc.		404,200		3,694,661
Shimano, Inc.		40,300		5,664,512
Shiseido Co., Ltd.		181,900		8,764,873
SMC Corp.		21,400		8,782,226
SoftBank Group Corp.		56,200		4,449,387
Sugi Holdings Co., Ltd.		51,000		2,598,086
Suruga Bank Ltd.		203,500		4,351,314
				89,296,736
MALAYSIA—0.9%
Public Bank Bhd		901,900		4,630,957
MEXICO—0.6%
Wal-Mart de Mexico SAB de CV		1,169,300		2,867,573

The accompanying notes are an integral part of the financial statements.
172

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Choice Fund

	Shares		Value
NETHERLANDS—0.9%
ASML Holding NV		26,515	$	4,609,843
PHILIPPINES—0.5%
Puregold Price Club, Inc.		2,299,400		2,303,085
PORTUGAL—1.5%
Jeronimo Martins SGPS SA		396,006		7,694,996
RUSSIA—0.4%
Magnit PJSC GDR Reg S		70,669		1,923,352
SINGAPORE—3.2%
Jardine Matheson Holdings Ltd.		70,700		4,289,546
Jardine Strategic Holdings Ltd.		73,000		2,889,340
United Overseas Bank Ltd.		473,299		9,330,152
				16,509,038
SOUTH AFRICA—4.4%
Clicks Group Ltd.		502,597		7,357,882
Naspers Ltd., N Shares		54,422		15,077,797
				22,435,679
SOUTH KOREA—3.0%
NAVER Corp. ^(a)		4,378		3,556,598
Samsung Electronics Co., Ltd. GDR 144A ^(b)		4,523		5,356,157
Samsung Fire & Marine Insurance Co., Ltd. ^(a)		26,265		6,548,986
				15,461,741
SPAIN—2.8%
Distribuidora Internacional de Alimentacion SA		627,766		3,237,787
Inditex SA		308,668		10,732,905
				13,970,692
SWEDEN—5.0%
Atlas Copco AB, A Shares		23,278		1,004,587
Atlas Copco AB, B Shares		261,210		10,011,418
Investor AB, B Shares		151,300		6,900,441
Svenska Handelsbanken AB, A Shares		558,309		7,629,875
				25,546,321

The accompanying notes are an integral part of the financial statements.
173

Portfolio of Investments

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Choice Fund

	Shares		Value
SWITZERLAND—6.0%
Compagnie Financiere Richemont SA		66,788	$	6,048,847
Mettler-Toledo International, Inc. ^(a)		13,690		8,481,229
Nestle SA		82,734		7,113,160
Schindler Holding AG, Participating Certificates		33,793		7,772,071
u-blox Holding AG ^(a)		6,499		1,279,191
				30,694,498
TAIWAN—4.3%
Delta Electronics, Inc.		855,000		4,107,734
Hon Hai Precision Industry Co., Ltd. GDR Reg S		753,994		4,735,610
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		331,908		13,160,152
				22,003,496
THAILAND—0.7%
Thai Beverage PCL		4,800,000		3,301,806
UNITED KINGDOM—13.3%
ASOS PLC ^(a)		89,142		8,042,041
Auto Trader Group PLC 144A ^(b)		1,227,756		5,848,194
Burberry Group PLC		202,602		4,884,693
Capita PLC		618,752		3,343,178
Hargreaves Lansdown PLC		521,894		12,674,579
Intertek Group PLC		94,328		6,596,684
John Wood Group PLC		311,328		2,723,998
Johnson Matthey PLC		146,775		6,082,104
Jupiter Fund Management PLC		697,314		5,900,301
Rightmove PLC		146,519		8,891,589
Weir Group PLC (The)		97,062		2,782,149
				67,769,510
Total Common Stocks
(cost $378,801,360)				500,434,794
PREFERRED STOCKS—0.4%
GERMANY—0.4%
Sartorius AG (cost $2,413,567)		23,426		2,225,284
TOTAL INVESTMENTS—98.9%
(cost $381,214,927)			$	502,660,078
Other assets less liabilities—1.1%				5,693,769
NET ASSETS — 100.0%			$	508,353,847

The accompanying notes are an integral part of the financial statements.
174

Portfolio of Investments

Annual Report December 31, 2017

^(a) Non-income producing security.

ADR — American Depositary Receipt.

GDR — Global Depositary Receipt.

Fair Value Measurement

The following is a summary of the inputs used as of December 31, 2017 in valuing the Fund's investments carried at fair value:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stocks
Australia	$	442,329	$	27,540,059	$	—	$	27,982,388
Brazil		—		5,994,820		—		5,994,820
Canada		7,898,985		—		—		7,898,985
China		36,227,942		—		—		36,227,942
Denmark		—		27,600,624		—		27,600,624
Finland		—		5,981,286		—		5,981,286
France		—		7,720,005		—		7,720,005
Germany		—		23,788,887		—		23,788,887
Hong Kong		—		9,063,286		—		9,063,286
India		8,316,761		8,840,487		—		17,157,248
Japan		—		89,296,736		—		89,296,736
Malaysia		4,630,957		—		—		4,630,957
Mexico		2,867,573		—		—		2,867,573
Netherlands		—		4,609,843		—		4,609,843
Philippines		2,303,085		—		—		2,303,085
Portugal		7,694,996		—		—		7,694,996
Russia		—		1,923,352		—		1,923,352
Singapore		2,889,340		13,619,698		—		16,509,038
South Africa		7,357,882		15,077,797		—		22,435,679
South Korea		—		15,461,741		—		15,461,741
Spain		—		13,970,692		—		13,970,692
Sweden		—		25,546,321		—		25,546,321
Switzerland		9,760,420		20,934,078		—		30,694,498
Taiwan		13,160,152		8,843,344		—		22,003,496
Thailand		—		3,301,806		—		3,301,806
United Kingdom		8,630,343		59,139,167		—		67,769,510
Total Common Stocks		112,180,765		388,254,029		—		500,434,794
Preferred Stocks
Germany		—		2,225,284		—		2,225,284
Total	$	112,180,765	$	390,479,313	$	—	$	502,660,078

For the International Choice Fund, fair value of Level 2 and Level 1 investments at December 31, 2016 was $291,728,776 and $48,702,277, respectively. $16,370,608 was transferred out of Level 2 into Level 1 during the year ended December 31, 2017. Transfers into Level 1 and out of Level 2 resulted when pricing was based on quoted market prices.

It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period.

The accompanying notes are an integral part of the financial statements.
175

Statement of Assets and Liabilities

Annual Report December 31, 2017

December 31, 2017
Baillie Gifford International Choice Fund

ASSETS
Investments, at value (cost $381,214,927)	$	502,660,078
Cash		5,566,783
Dividends receivable		368,958
Tax reclaims receivable		724,607
Prepaid assets		425
Total Assets		509,320,851
LIABILITIES
Advisory fee payable		439,166
Servicing fee payable		178,574
Payable for deferred Indian capital gains tax		76,371
Trustee fee payable		5,652
Accrued expenses		267,241
Total Liabilities		967,004
NET ASSETS	$	508,353,847
COMPOSITION OF NET ASSETS
Paid-in capital	$	396,216,845
Distributions in excess of net investment income		(2,544,396	)
Accumulated net realized loss on investments and foreign currency transactions		(6,707,271	)
Net unrealized appreciation in value of investments and foreign currencies (net of deferred Indian capital gains tax)		121,388,669
	$	508,353,847
NET ASSET VALUE, PER SHARE
Class 2 ($324,763,793 / 21,865,241 shares outstanding), unlimited authorized, no par value	$	14.85
Class 3 ($142,843,556 / 9,514,232 shares outstanding), unlimited authorized, no par value	$	15.01
Class 4 ($40,746,498 / 2,686,098 shares outstanding), unlimited authorized, no par value	$	15.17

The accompanying notes are an integral part of the financial statements.
176

Statement of Operations

Annual Report December 31, 2017

For the Year Ended December 31, 2017
Baillie Gifford International Choice Fund

INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $798,347)	$	7,469,397
Interest		868
Total Investment Income		7,470,265
EXPENSES
Advisory fee (Note B)		1,552,996
Shareholder Servicing fees—Class 1 Shares (Note B)		11,844
Shareholder Servicing fees—Class 2 Shares (Note B)		478,793
Shareholder Servicing fees—Class 3 Shares (Note B)		129,011
Shareholder Servicing fees—Class 4 Shares (Note B)		19,825
Fund accounting		259,708
Custody		86,922
Legal		94,702
Transfer agency		48,721
Professional fees		34,546
Trustees' fees		19,771
Insurance		3,148
Miscellaneous		9,059
Total Expenses		2,749,046
Net Investment Income		4,721,219
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments		9,800,940
Foreign currency transactions		(43,090	)
		9,757,850
Net change in unrealized appreciation (depreciation) on:
Investments (net of deferred Indian capital gains tax $76,371)		101,710,950
Translation of assets and liabilities denominated in foreign currencies		(27,530	)
		101,683,420
Net realized and unrealized gain on investments and foreign currency transactions		111,441,270
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	116,162,489

The accompanying notes are an integral part of the financial statements.
177

Statements of Changes in Net Assets

Annual Report December 31, 2017

Baillie Gifford International Choice Fund

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income	$	4,721,219		$	5,199,512
Net realized gain (loss) from investments and foreign currency transactions		9,757,850			(5,129,405	)
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currencies		101,683,420			1,842,721
Net increase in net assets from operations		116,162,489			1,912,828
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class 1		—			(194,799	)
Class 2		(4,034,314	)		(2,772,340	)
Class 3		(1,833,941	)		(1,432,137	)
Class 4		(534,209	)		—
Total Dividends and Distributions		(6,402,464	)		(4,399,276	)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net proceeds from shares subscribed:
Class 2*		33,249,954			399,160
Class 4		34,081,343			—
Purchase fees:
Class 1		3,420			40
Class 2		46,266			535
Class 3		22,875			265
Dividends reinvested:
Class 1		—			194,799
Class 2		4,034,314			2,772,340
Class 3		1,833,960			1,432,137
Class 4		534,209			—
Cost of shares redeemed:
Class 1*		(17,850,819	)		—
Class 2		(1,500,000	)		—
Increase in Net Assets from Transactions in Shares of Beneficial Interest		54,455,522			4,799,276
Total Increase in Net Assets		164,215,547			2,312,828
NET ASSETS
Beginning of year		344,138,300			341,825,472
End of year (including distributions in excess of net investment income of $2,544,396 and $820,062, respectively)	$	508,353,847		$	344,138,300

* Class 1 shareholders were converted to Class 2 during the period. Please refer to Notes A and D.

The accompanying notes are an integral part of the financial statements.
178

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Choice Fund
Selected data for a Class 2 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Period April 9, 2013^(a)through December 31, 2013
Net asset value, beginning of period	$	11.44		$	11.53		$	11.51		$	12.20		$	11.00
From Investment Operations
Net investment income^(b)		0.14			0.17			0.16			0.17			0.08
Net realized and unrealized gain (loss) on investments and foreign currency transactions		3.46			(0.11	)		0.03			(0.58	)		1.19
Net increase (decrease) in net asset value from investment operations		3.60			0.06			0.19			(0.41	)		1.27
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.19	)		(0.15	)		(0.17	)		(0.17	)		(0.09	)
Distributions from net realized gain on investments		—			—			—			(0.12	)		—
Total Dividends and Distributions		(0.19	)		(0.15	)		(0.17	)		(0.29	)		(0.09	)
Proceeds from Purchase Fees and Redemption Fees^(b)		0.00	^(c)		0.00	^(c)		0.00	^(c)		0.01			0.02
Net asset value, end of period	$	14.85		$	11.44		$	11.53		$	11.51		$	12.20
Total Return
Total return based on net asset value^(d)		31.45	%		0.54	%		1.56	%		(3.29	)%		11.76	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	324,764		$	219,300		$	217,720		$	245,206		$	169,778
Ratio of net expenses to average net assets, before waiver		0.65	%		0.65	%		0.63	%		0.63	%		0.67	%*
Ratio of net expenses to average net assets, after waiver		0.65	%		0.65	%		0.63	%		0.63	%		0.66	%*
Ratio of net investment income to average net assets		1.03	%		1.48	%		1.38	%		1.35	%		0.98	%*
Portfolio turnover rate^(e)		12	%		14	%		15	%		9	%		11	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
179

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Choice Fund
Selected data for a Class 3 Share outstanding throughout each period:

	For the Year Ended December 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2015			For the Year Ended December 31, 2014			For the Period April 30, 2013^(a)through December 31, 2013
Net asset value, beginning of period	$	11.56		$	11.65		$	11.63		$	12.33		$	11.50
From Investment Operations
Net investment income^(b)		0.15			0.18			0.18			0.17			0.09
Net realized and unrealized gain (loss) on investments and foreign currency transactions		3.50			(0.12	)		0.02			(0.58	)		0.82
Net increase (decrease) in net asset value from investment operations		3.65			0.06			0.20			(0.41	)		0.91
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.20	)		(0.15	)		(0.18	)		(0.18	)		(0.10	)
Distributions from net realized gain on investments		—			—			—			(0.12	)		—
Total Dividends and Distributions		(0.20	)		(0.15	)		(0.18	)		(0.30	)		(0.10	)
Proceeds from Purchase Fees and Redemption Fees^(b)		0.00	^(c)		0.00	^(c)		0.00	^(c)		0.01			0.02
Net asset value, end of period	$	15.01		$	11.56		$	11.65		$	11.63		$	12.33
Total Return
Total return based on net asset value^(d)		31.54	%		0.61	%		1.63	%		(3.26	)%		8.11	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	142,844		$	108,594		$	107,936		$	106,203		$	109,740
Ratio of net expenses to average net assets		0.58	%		0.58	%		0.56	%		0.56	%		0.58	%*
Ratio of net investment income to average net assets		1.13	%		1.55	%		1.45	%		1.38	%		1.10	%*
Portfolio turnover rate^(e)		12	%		14	%		15	%		9	%		11	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(c) Amount is less than $0.005 per share.

^(e) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
180

Financial Highlights

Annual Report December 31, 2017

Baillie Gifford International Choice Fund
Selected data for a Class 4 Share outstanding throughout the period:

	For the Period April 03, 2017^(a)through December 31, 2017
Net asset value, beginning of period	$	12.86
From Investment Operations
Net investment income^(b)		0.11
Net realized and unrealized gain on investments and foreign currency transactions		2.40
Net increase in net asset value from investment operations		2.51
Dividends and Distributions to Shareholders
Dividends from net investment income		(0.20	)
Total Dividends and Distributions		(0.20	)
Net asset value, end of period	$	15.17
Total Return
Total return based on net asset value^(c)		19.56	%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)	$	40,746
Ratio of net expenses to average net assets		0.54	%*
Ratio of net investment income to average net assets		0.99	%*
Portfolio turnover rate^(d)		12	%

* Annualized.

^(a) Commencement of investment operations.

^(b) Calculated based upon average shares outstanding during the period.

^(d) Portfolio turnover rate calculated at Fund level.

The accompanying notes are an integral part of the financial statements.
181

Notes to Financial Statements

Annual Report December 31, 2017

Note A — Organization and Accounting Policies

Each of Baillie Gifford EAFE Fund ("EAFE Fund"), Baillie Gifford EAFE Choice Fund ("EAFE Choice Fund"), Baillie Gifford EAFE Pure Fund ("EAFE Pure Fund"), Baillie Gifford Emerging Markets Fund ("Emerging Markets Fund"), Baillie Gifford Global Alpha Equity Fund ("Global Alpha Equity Fund"), Baillie Gifford Global Select Equity Fund ("Global Select Equity Fund"), Baillie Gifford International Concentrated Growth Fund ("International Concentrated Growth Fund"), Baillie Gifford International Equity Fund ("International Equity Fund"), Baillie Gifford Long Term Global Growth Equity Fund ("Long Term Global Growth Equity Fund"), Baillie Gifford Positive Change Equity Fund ("Positive Change Equity Fund"), Baillie Gifford U.S. Equity Growth Fund ("U.S. Equity Growth Fund") and Baillie Gifford International Choice Fund ("International Choice Fund"), (each, a "Fund", and collectively, the "Funds") is a series of Baillie Gifford Funds (the "Trust"). The investment objective of the the Funds is to achieve capital appreciation, for more detail

on specific objectives of each fund please refer to the Prospectus. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Trust is organized as a Massachusetts business trust under the laws of Massachusetts pursuant to the Second Amended and Restated Agreement and Declaration of Trust dated February 27, 2017 as amended from time to time.

On April 10, 2017, all outstanding Class 1 shares of each Fund were converted to Class 2 shares of the same Fund with the exception of U.S. Equity Growth Fund, where the sole shareholder ceased to hold Class 1 shares and became the sole shareholder of Class K on April 28, 2017.

Effective April 28, 2017, all Funds with the exception of International Choice Fund had two new share classes added, Class K and Institutional Class. The Global Select Equity Fund, International Concentrated Growth Fund and Positive Change Equity Fund had an inception date of December 14, 2017.

Effective beginning May 1, 2017, the Funds ceased to charge the purchase and redemption fees.

The following table is a summary of classes with shares outstanding as of December 31, 2017:

EAFE

EAFE
Choice

EAFE
Pure

Emerging
Markets

Global
Alpha
Equity

Global
Select
Equity

International
Concentrated
Growth

International
Equity

Long
Term
Global
Growth
Equity

Positive
Change
Equity

U.S.
Equity
Growth

International
Choice

Class 2

N/A

Class 3

N/A

Class 4

N/A

Class 5

N/A

Class K

N/A

Institutional
Class

N/A

The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The financial statements of the Funds have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities for the Funds and disclosure of contingent assets and liabilities for the Funds at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations for the Funds

during the reporting period. Actual results could differ from those estimates.

The following is a summary of significant accounting policies followed by the Funds:

Valuation of Investments

Equity securities listed on an established securities exchange are normally valued at their last sale price on the exchange where primarily traded. Equity securities

182

Notes to Financial Statements

Annual Report December 31, 2017

listed on the NASDAQ National Market System are valued at the NASDAQ Official Closing Price. Equity securities listed on an established securities exchange or on the NASDAQ National Market System for which there is no reported sale during the day, and in the case of over-the-counter securities not so listed, are valued at the mean between the last available bid and asked prices. Other securities for which current market quotations are not readily available (or for which quotations are not believed to be reliable due to market changes that occur after the most recent available quotations are obtained or any other reason), and all other assets, are taken at fair value as determined in good faith by Baillie Gifford Overseas Limited (the "Manager"), pursuant to procedures approved by the trustees of the Trust (the "Trustees"). The actual calculations may be made by persons acting pursuant to the direction of the Trustees or by pricing services.

Generally, trading in foreign securities markets is substantially completed each day at various times prior to close of regular trading on the New York Stock Exchange. Occasionally, events affecting the value of equity securities of non-U.S. issuers not traded on a U.S. exchange may occur between the completion of substantial trading of such securities for the day and the close of regular trading on the New York Stock Exchange, which events may not be reflected in the computation of a Funds' net asset values. If events materially affecting the value of the Funds' portfolio securities occur during such period, then these securities will be valued at their fair value as determined in good faith by the Manager, pursuant to procedures approved by the Board. The Funds utilize a third party pricing service which for all equity securities, except those traded on a Canadian, Latin American or U.S. exchange, subject to certain minimum confidence levels, applies a fair value adjustment that seeks to reflect changes in such securities' market prices since the close of the market on which they are traded. To the extent that securities are valued using this service, they will be classified as Level 2 securities in the fair value measurement framework described below.

The Funds invest in obligations of foreign entities and securities denominated in foreign currencies. Such investments involve risk not typically involved with domestic investments. Such risks include fluctuations in foreign exchange rates, inability to convert proceeds into U.S. dollars, application of foreign tax laws, foreign investment restrictions, less publicly available information about foreign financial instruments, less

liquidity resulting from substantially less trading volume, more volatile prices, and generally less government supervision of foreign securities markets and issuers.

Fair Value Measurement

GAAP provides guidance on fair value measurements and defines fair value as the price that a Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. It establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund's investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below:

Level 1 — unadjusted quoted prices in active markets for identical investments

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 — significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments)

For Level 1 inputs, the Fund's use unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.

The Funds' Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities.

For Level 3 valuation techniques, the Funds use unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair

183

Notes to Financial Statements

Annual Report December 31, 2017

value to the extent that observable inputs are not available and are developed based on the best information available under the circumstances. In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.

It is each Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period. The portfolio may hold securities which are periodically fair valued in accordance with the Funds' Pricing and Valuation Procedures. This may result in movements between Levels 1, 2, and 3 throughout the period.

These transfers may result from using third-party vendor modeling tools to reflect any significant market movements between the time at which the Funds valued their securities and the earlier closing of foreign markets. With regard to the transfers from Level 1 into Level 2, quotations were still obtained from the Funds' third party pricing vendor. Pursuant to the Funds' fair value procedures noted previously, equity securities (including exchange traded securities) are generally categorized as Level 1 securities in the fair value hierarchy. Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The hierarchy classification of inputs used to value each Fund's investments at December 31, 2017 is disclosed at the end of each Fund's Portfolio of Investments.

Foreign Currency Translation

The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the applicable rate of exchange to determine the value of investments, assets and liabilities. For the Funds, purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Funds do not isolate that portion of net realized and unrealized gains and losses on investments resulting from changes in foreign exchange rates from the impact arising from changes in market prices. Such fluctuations

are included with net realized and unrealized gain or loss from investments.

Net realized foreign exchange gains and losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the differences between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates.

Securities Transactions and Investment Income

The Funds' securities transactions are recorded on the trade date. Realized gains or losses on sales of investments are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date.

Investment income, expenses (other than those specific to a particular class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of shares based upon their relative net asset value on the date income is earned or expensed and realized and unrealized gains and losses are incurred.

Federal Taxes

Each Fund intends to continue to qualify to be taxed as a "regulated investment company" under the provisions of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), and as such will not be subject to U.S. federal income tax on income (including any net realized capital gains) which is distributed in accordance with the provisions of the Code to the Funds' shareholders. Therefore, no U.S. federal income tax provision is required.

Investment income received from investments in foreign jurisdictions may be subject to foreign withholding tax. Whenever possible, the Funds will attempt to operate so as to qualify for reduced tax rates or tax exemptions in those countries with which the United States has a tax treaty. Foreign taxes, if any, net of any reclaims, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest.

184

Notes to Financial Statements

Annual Report December 31, 2017

In addition to the requirements of the Code, the Funds may also be subject to capital gains tax in India and potentially other foreign jurisdictions on gains realized upon sale of Indian securities, payable upon repatriation of sales proceeds. Any realized losses in excess of gains may be carried forward to offset future gains. Funds with exposure to Indian securities and potentially other foreign jurisdictions accrue a deferred liability for unrealized gains in excess of available loss carryforwards on Indian securities based on existing tax rates and holding periods of the securities. As of December 31, 2017, the Emerging Markets Fund recorded a deferred liability for potential future Indian capital gains taxes of $8,631,321. As of December 31, 2017 Global Alpha Fund recorded a deferred liability for potential future India capital gains taxes of $247,657. As of December 31, 2017 International Choice recorded a deferred liability for potential future India capital gains taxes of $76,371.

The Funds are subject to tax accounting standards that provide guidance for how certain and uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. These standards require the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax

returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the "more-likely-than-not" threshold would be recorded as a reduction in a tax benefit or expense in the current year. Management has evaluated the application of these standards and has determined no liabilities for income tax related expenses are required in the financial statements of the Funds. For the International Equity Fund, EAFE Fund, EAFE Choice Fund, Emerging Markets Fund, Global Alpha Equity Fund, International Choice Fund, EAFE Pure Fund and Long Term Global Growth Equity Fund, the tax periods 2015 through present remain subject to examination. For the U.S. Equity Growth Fund, the tax period ended 2016 through present remain subject to examination. For the Global Select Equity Fund, International Concentrated Growth Fund and Positive Change Equity Fund, the tax period ended 2017 is subject to examination.

At December 31, 2017 for Federal income tax purposes, the following Fund has capital loss carryforwards available to offset future capital gains indefinitely. To the extent that these loss carryforwards are utilized, capital gains so offset will not be distributed to shareholders.

Fund				Short Term Capital Loss No Expiration				Long Term Capital Loss No Expiration				Capital Loss Available Total
International Choice					—			$	6,374,949			$	6,374,949

During the year ended December 31, 2017, the following Funds utilized capital loss carryforwards:

Fund	Utilized
EAFE Choice	$	7,507,574
EAFE Pure		3,684,286
Emerging Markets		27,705,851
Global Alpha Equity		18,762,547
International Choice		8,852,010

Realized capital losses, currency losses and passive foreign investment company ("PFIC") losses incurred after October 31 ("post-October losses/Late-Year Specified") within the taxable year are deemed to arise

on the first business day of each Fund's next taxable year. During the year or period ended December 31, 2017, the Funds shown below incurred and will elect to defer net post-October or late-year losses as indicated.

185

Notes to Financial Statements

Annual Report December 31, 2017

At December 31, 2017, the components of accumulated earnings on tax basis were as follows:

Fund	Undistributed Net Ordinary Income		Long Term Capital Gains		Capital Loss Carryforwards			Post October Capital/Currency Losses/Late year ordinary losses			Net Unrealized Appreciation/ Depreciation on Investments and Foreign Currencies		Total Accumulated Earnings/ Deficit
EAFE	$	44,387	$	42,600,167	$	—		$	—		$	1,260,846,798	$	1,303,491,352
EAFE Choice		—		1,902,080		—			(469,763	)		84,192,674		85,624,991
EAFE Pure		—		2,237,108		—			(731,523	)		48,400,389		49,905,974
Emerging Markets		—		93,545,579		—			(479,011	)		598,630,696		691,697,264
Global Alpha Equity		1,559,743		14,653,534		—			—			349,813,029		366,026,306
Global Select Equity		766		—		—			—			44,437		45,203
International Concentrated Growth		—		—		—			—			6,620		6,620
International Equity		3,304,560		14,328,681		—			—			877,987,970		895,621,211
Long Term Global Growth Equity		—		3,906,506		—			(22,229	)		50,023,604		53,907,881
Positive Change Equity		—		—		—			(138	)		16,710		16,572
U.S. Equity Growth		9,266		—		—			—			329,754		339,020
International Choice		—		—		(6,374,949	)		(532,464	)		119,044,415		112,137,002

The differences between the components of distributable earnings on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to the differing book/tax treatment of realized losses on wash sales and mark to market income on securities categorized as PFICs.

For the year ended December 31, 2017, the following reclassifications have been made on the Statements of Assets and Liabilities as a result of certain differences in the computation of net investment income and net realized capital gains under U.S. federal income tax rules and regulations versus GAAP, such as the treatment of foreign currency gains and losses and the redesignation of dividends.

Fund	Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gains (Losses) on Investments and Foreign Currency Transactions			Paid-in Capital
EAFE	$	1,784,910		$	(1,784,910	)	$	—
EAFE Choice		(7,649	)		7,649			—
EAFE Pure		74,108			(74,108	)		—
Emerging Markets		2,270,133			(2,270,133	)		—
Global Alpha Equity		139,122			(139,122	)		—
Global Select Equity		(2,309	)		2,309			—
International Concentrated Growth		302			1,608			(1,910	)
International Equity		(278,517	)		278,517			—
Long Term Global Growth Equity		503,154			41,518			(544,672	)
Positive Change Equity		69			138			(207	)
U.S. Equity Growth		3,236			(3,236	)		—
International Choice		(43,089	)		43,090			(1	)

186

Notes to Financial Statements

Annual Report December 31, 2017

Dividends and Distributions to Shareholders

The Funds intend to distribute each year, as dividends, substantially all net investment income and net capital gains realized. All such dividends or distributions are credited in the form of additional shares of the Funds at net asset value on the ex-dividend date unless the

shareholder elects to receive dividends and distributions in cash. Currently, the Funds' policies are to distribute net investment income and net capital gains on an annual basis. Such distributions are determined in conformity with U.S. federal income tax regulations, which may differ from GAAP.

For the years or periods ended December 31, 2017 and December 31, 2016, the tax characters of the dividends paid were:

Fund	Ordinary Income 2017		Long Term Capital Gains 2017		Return of Capital 2017		Ordinary Income 2016		Long Term Capital Gains 2016		Return of Capital 2016
EAFE	$	19,751,226	$	48,725,790	$	—	$	15,659,306	$	101,073,397	$	—
EAFE Choice		4,719,038		—		—		3,673,930		—		—
EAFE Pure		5,473,971		—		—		2,430,664		—		—
Emerging Markets		19,863,377		13,157,890		—		12,494,261		—		207,935
Global Alpha Equity		8,003,422		32,552,970		—		5,050,014		2,554,846		—
Global Select Equity		—		—		—		—		—		—
International Concentrated Growth		—		—		—		—		—		—
International Equity		22,247,527		51,665,372		—		24,716,327		23,695,901		—
Long Term Global Growth Equity		—		—		—		—		478,647		—
Positive Change Equity		—		—		—		—		—		—
U.S. Equity Growth		5,513		—		—		—		—		—
International Choice		6,402,464		—		—		4,399,276		—		—

For tax purposes, short-term capital gain distributions, if any, are considered ordinary income distributions.

Note B — Investment Management and Other Services

The Funds are advised and managed by the Manager. The Manager, an investment adviser registered with the Securities and Exchange Commission (the "SEC"), is a wholly owned subsidiary of Baillie Gifford & Co.

Under an investment advisory agreement between the Manager and the Trust on behalf of the Funds (the "Advisory Agreeement"), each Fund paid the Manager an investment advisory fee, in arrears, for the year or period ended December 31, 2017.

Effective May 1, 2017, the fee paid by each Fund under the Advisory Agreement is subject to the breakpoints reflected in the table below. The fee is calculated and acrrued daily as percentage of the average daily net assets of each Fund and is paid quarterly.

Fund	Average Daily Net Assets of the Fund (millions)	Annual Rate at Each Asset Level
EAFE	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.35% 0.31% 0.29%
EAFE Choice	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.35% 0.31% 0.29%

187

Notes to Financial Statements

Annual Report December 31, 2017

Fund	Average Daily Net Assets of the Fund (millions)	Annual Rate at Each Asset Level
EAFE Pure	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.35% 0.31% 0.29%
Emerging Markets	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.55% 0.51% 0.49%
Global Alpha Equity	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.40% 0.36% 0.34%
Global Select Equity	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.33% 0.29% 0.27%
International Concentrated Growth	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.40% 0.36% 0.34%
International Equity	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.35% 0.31% 0.29%
Long Term Global Growth Equity	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.45% 0.41% 0.39%
Positive Change Equity	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.33% 0.29% 0.27%
U.S. Equity Growth	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.33% 0.29% 0.27%
International Choice	$0 - $2,000 > $2,000 - $5,000 Above $5,000		0.35% 0.31% 0.29%

Prior to April 30, 2017, the advisory fees paid by the Funds were as follows:

Fund	Annual Rate
EAFE		0.35	%
EAFE Choice		0.35	%
EAFE Pure		0.35	%
Emerging Markets		0.55	%
Global Alpha Equity		0.40	%
International Equity		0.35	%
Long Term Global Growth Equity		0.45	%
U.S. Equity Growth		0.25	%
International Choice		0.35	%

188

Notes to Financial Statements

Annual Report December 31, 2017

Effective May 1, 2017, advisory fees for all classes paid by each Fund under the Advisory Agreement are subjected to breakpoints for Fund assets above $2 billion and $5 billion.

The Manager has contractually agreed to waive its fees and/or bear expenses of the Long Term Global Growth Equity Fund through April 30, 2018 to the extent that such Fund's Total Annual Fund Operating Expenses (excluding interest, taxes and extraordinary expenses) exceed 0.77% for Class 2 shares, 0.70% for Class 3 shares, 0.67% for Class 4 shares, 0.62% for Class 5 shares, 0.77% for Class K shares, and 0.92% for Institutional Class shares.

The Manager has also contractually agreed to waive its fees and/or bear expenses of the U.S. Equity Growth Fund through April 30, 2018 to the extent that the Fund's Total Annual Operating Expenses (excluding interest, taxes and extraordinary expenses) exceed 0.57% for Class K shares, and 0.72% for Institutional Class shares.

The Manager has also contractually agreed to waive its fees and/or bear expenses of the Global Select Equity Fund & Positive Change Equity Fund through April 30, 2019 to the extent that the Funds' Total Annual Operating Expenses (excluding interest, taxes and extraordinary expenses) exceed 0.65% for Class K shares, and 0.80% for Institutional Class shares.

The Manager has contractually agreed to waive its fees and/or bear expenses of the International Concentrated Growth Fund through April 30, 2019 to the extent that such Fund's Total Annual Fund Operating Expenses (excluding interest, taxes and extraordinary expenses) exceed 0.72% for Class K shares, and 0.87% for Institutional Class shares.

Waived fees for all Funds are not subject to recoupment.

Baillie Gifford Funds Services LLC ("BGFS"), a wholly-owned subsidiary of the Manager, serves as the sole distributor and principal underwriter of the shares of the Funds.

Each Fund (other than the Global Select Equity Fund, the International Concentrated Growth Fund, the Positive Change Equity and the U.S. Equity Growth Fund) has adopted a Shareholder Servicing Plan providing that the Fund may pay the Manager, or any other entity that acts from time to time as the shareholder servicing agent with respect to a class of Fund shares, for services rendered and expenses borne in connection with the provision of services provided to Fund investors and/or the maintenance of shareholder accounts. For these services, the Funds pay the Manager a fee at the annualized rate of the Funds' average daily net assets attributed to each class of share as follows:

	EAFE			EAFE Choice			EAFE Pure			Emerging Markets			Global Alpha Equity			International Equity			Long Term Global Growth Equity			International Choice
Class 2		0.17	%		0.17	%		0.17	%		0.17	%		0.17	%		0.17	%		0.17	%		0.17	%
Class 3		0.10	%		0.10	%		0.10	%		0.10	%		0.10	%		0.10	%		0.10	%		0.10	%
Class 4		0.07	%		0.07	%		0.07	%		0.07	%		0.07	%		0.07	%		0.07	%		0.07	%
Class 5		0.02	%		0.02	%		0.02	%		0.02	%		0.02	%		0.02	%		0.02	%		0.02	%

With respect to Class K and Institutional Class shares, the Manager is responsible for providing certain administrative services to Fund shareholders as well as coordinating, overseeing and supporting services provided to Fund shareholders by third parties, including financial intermediaries that hold accounts with the Funds, pursuant to an Administration and Supervisory Agreement between the Manager and the Trust on behalf of each Fund. Each Fund other than the International Choice Fund has adopted an Administration, Supervisory and Sub-Accounting Services Plan with respect to Class K and Institutional Class shares of each Fund, which authorizes each Fund to pay the Manager an Administration and Supervisory Fee quarterly, in arrears, with respect to Class K and Institutional Class shares at an annual rate of 0.17% of such Fund's average net assets.

The Bank of New York Mellon serves as the Funds' administrator and custodian. BNY Mellon Investment Servicing (U.S.) Inc. serves as the Trust's transfer agent, registrar and dividend disbursing agent.

189

Notes to Financial Statements

Annual Report December 31, 2017

Note C — Investment Transactions

Purchases and proceeds from sales of securities (excluding in-kind purchases and redemptions and short-term securities) for the year or period ended December 31, 2017 were as follows:

Fund	Purchases		Sales
EAFE	$	240,331,073	$	596,129,839
EAFE Choice		37,788,111		107,251,471
EAFE Pure		124,248,381		55,752,796
Emerging Markets		564,943,207		898,434,990
Global Alpha Equity		278,321,058		264,683,757
Global Select Equity		2,957,454		—
International Concentrated Growth		979,387		—
International Equity		225,013,606		342,954,331
Long Term Global Growth Equity		82,928,206		15,977,768
Positive Change Equity		974,533		—
U.S. Equity Growth		177,029		261,905
International Choice		102,925,386		52,208,251

The Funds' cost of investments and gross unrealized appreciation (depreciation) at December 31, 2017 for U.S. federal income tax purposes were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation			Net Appreciation
EAFE	$	1,501,421,391	$	1,393,498,788	$	(132,726,375	)	$	1,260,772,413
EAFE Choice		220,589,746		101,156,822		(16,980,534	)		84,176,288
EAFE Pure		252,427,580		61,901,344		(13,515,597	)		48,385,747
Emerging Markets		1,089,634,793		643,487,889		(36,241,028	)		607,246,861
Global Alpha Equity		785,107,091		389,449,517		(39,403,242	)		350,046,275
Global Select Equity		2,960,940		74,543		(30,107	)		44,436
International Concentrated Growth		979,387		19,896		(13,276	)		6,620
International Equity		1,211,949,065		979,587,725		(101,642,696	)		877,945,029
Long Term Global Growth Equity		135,716,536		52,797,651		(2,775,411	)		50,022,240
Positive Change Equity		974,533		28,032		(11,322	)		16,710
U.S. Equity Growth		923,823		359,179		(29,425	)		329,754
International Choice		383,559,181		153,719,841		(34,618,944	)		119,100,897

190

Notes to Financial Statements

Annual Report December 31, 2017

Note D — Transactions in Shares of Beneficial Interest

	EAFE Fund
	Class 1 Shares For the Period Ended December 31, 2017						Class 2 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		142		$	1,508			9,465,027	**	$	109,733,985	**
Purchase fees		—			279			—			11,880
Redemption fees		—			100			—			16,484
Shares issued in reinvestment of dividends and distributions		—			—			1,211,109			17,464,610
Shares redeemed		(1,838,303	)*		(20,817,261	)*		(31,363,941	)		(437,863,539	)
Net increase (decrease)		(1,838,161	)	$	(20,815,374	)		(20,687,805	)	$	(310,636,580	)
	EAFE Fund
	Class 3 Shares For the Year Ended December 31, 2017						Class 4 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		7,588,420		$	110,142,876			1,895,088		$	25,000,000
Purchase fees		—			6,994			—			3,256
Redemption fees		—			8,105			—			4,201
Shares issued in reinvestment of dividends and distributions		1,024,175			14,798,611			518,970			7,503,626
Shares redeemed		(9,802,341	)		(122,361,558	)		(1,409,453	)		(20,000,000	)
Net increase (decrease)		(1,189,746	)	$	2,595,028			1,004,605		$	12,511,083
	EAFE Fund
	Class 5 Shares For the Year Ended December 31, 2017						Class K Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		—		$	—			416		$	5,000
Purchase fees		—			12,563			—			—
Redemption fees		—			16,205			—			—
Shares issued in reinvestment of dividends and distributions		1,981,299			28,702,684			10			150
Shares redeemed		—			—			—			—
Net increase		1,981,299		$	28,731,452			426		$	5,150

* 1,580,441 shares and $17,964,404 converted from Class 1 into Class 2.

** 1,573,520 shares and $17,964,404 converted into Class 2 from Class 1.

191

Notes to Financial Statements

Annual Report December 31, 2017

	EAFE Fund
	Institutional Class Shares For the Period Ended December 31, 2017
	Shares		Amount
Shares sold		416	$	5,000
Purchase fees		—		—
Redemption fees		—		—
Shares issued in reinvestment of dividends and distributions		10		150
Shares redeemed		—		—
Net increase		426	$	5,150

	EAFE Fund
	Class 1 Shares For the Period Ended December 31, 2016						Class 2 Shares For the Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		4,698,114		$	47,348,253			6,086,887		$	63,886,179
Purchase fees		—			1,029			—			34,321
Redemption fees		—			1,595			—			32,039
Shares issued in reinvestment of dividends and distributions		96,772			969,616			3,840,670			38,642,083
Shares redeemed		(2,956,724	)		(30,384,500	)		(6,964,934	)		(72,383,976	)
Net increase		1,838,162		$	17,935,993			2,962,623		$	30,210,646
	EAFE Fund
	Class 3 Shares For the Year Ended December 31, 2016						Class 4 Shares For the Period Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		19,421,551		$	197,212,132			18,892,940		$	217,043,346
Purchase fees		—			28,671			—			2,941
Redemption fees		—			27,583			—			2,280
Shares issued in reinvestment of dividends and distributions		2,333,635			23,564,955			1,063,818			10,705,515
Shares redeemed		(25,372,008	)		(284,259,708	)		(18,867,216	)		(191,724,888	)
Net increase (decrease)		(3,616,822	)	$	(63,426,367	)		1,089,542		$	36,029,194

192

Notes to Financial Statements

Annual Report December 31, 2017

	EAFE Fund
	Class 5 Shares For the Year Ended December 31, 2016
	Shares		Amount
Shares sold		—	$	—
Purchase fees		—		36,592
Redemption fees		—		34,541
Shares issued in reinvestment of dividends and distributions		4,195,386		42,410,685
Shares redeemed		—		—
Net increase		4,195,386	$	42,481,818

	EAFE Choice Fund
	Class 1 Shares For the Period Ended December 31, 2017						Class 2 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		117		$	1,497			139,266	**	$	2,010,737	**
Purchase fees		—			—			—			1,361
Redemption fees		—			—			—			4,257
Shares issued in reinvestment of dividends and distributions		—			—			265,970			4,282,725
Shares redeemed		(352	)*		(4,741	)*		(4,847,568	)		(76,008,120	)
Net decrease		(235	)	$	(3,244	)		(4,442,332	)	$	(69,709,040	)
	EAFE Choice Fund
	Class 3 Shares For the Year Ended December 31, 2017						Class K Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		176,660		$	2,591,699			353		$	5,000
Purchase fees		—			100			—			—
Redemption fees		—			317			—			—
Shares issued in reinvestment of dividends and distributions		26,628			432,754			6			92
Shares redeemed		(128,175	)		(1,910,571	)		—			—
Net increase (decrease)		75,113		$	1,114,299			359		$	5,092

* 352 shares and $4,741 converted from Class 1 into Class 2.

** 348 shares and $4,741 converted into Class 2 from Class 1.

193

Notes to Financial Statements

Annual Report December 31, 2017

	EAFE Choice Fund
	Institutional Class Shares For the Period Ended December 31, 2017
	Shares		Amount
Shares sold		12,471	$	199,000
Purchase fees		—		—
Redemption fees		—		—
Shares issued in reinvestment of dividends and distributions		6		98
Shares redeemed		—		—
Net increase (decrease)		12,477	$	199,098

	EAFE Choice Fund
	Class 1 Shares For the Period Ended December 31, 2016						Class 2 Shares For the Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		870,137		$	10,978,072			5,205,400		$	64,883,358
Purchase fees		—			7,278			—			100,782
Redemption fees		—			781			—			24,442
Shares issued in reinvestment of dividends and distributions		3			39			275,500			3,413,749
Shares redeemed		(2,438,388	)		(30,703,470	)		(1,882,174	)		(24,097,363	)
Net increase (decrease)		(1,568,248	)	$	(19,717,300	)		3,598,726		$	44,324,968

	EAFE Choice Fund
	Class 3 Shares For the Year Ended December 31, 2016
	Shares			Amount
Shares sold		214,939		$	2,715,447
Purchase fees		—			8,214
Redemption fees		—			1,724
Shares issued in reinvestment of dividends and distributions		20,799			260,142
Shares redeemed		(210,489	)		(2,710,863	)
Net increase		25,249		$	274,664

194

Notes to Financial Statements

Annual Report December 31, 2017

	EAFE PURE Fund
	Class 1 Shares For the Period Ended December 31, 2017						Class 2 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		154		$	1,497			1,993,899	**	$	19,968,711	**
Purchase fees		—			5			—			198,413
Redemption fees		—			—			—			3,003
Shares issued in reinvestment of dividends and distributions		—			—			327,488			3,944,235
Shares redeemed		(461	)*		(4,715	)*		(2,015,092	)		(23,503,003	)
Net increase (decrease)		(307	)	$	(3,213	)		306,295		$	611,359
	EAFE PURE Fund
	Class 3 Shares For the Year Ended December 31, 2017						Class K Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		7,086,028		$	74,325,352			466		$	5,000
Purchase fees		—			1			—			—
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		125,774			1,529,525			9			105
Shares redeemed		(432,822	)		(5,000,000	)		—			—
Net increase		6,778,980		$	70,854,878			475		$	5,105

	EAFE PURE Fund
	Institutional Class Shares For the Period Ended December 31, 2017
	Shares		Amount
Shares sold		466	$	5,000
Purchase fees		—		—
Redemption fees		—		—
Shares issued in reinvestment of dividends and distributions		9		105
Shares redeemed		—		—
Net increase		475	$	5,105

* 461 shares and $4,715 converted from Class 1 into Class 2.

** 457 shares and $4,715 converted into Class 2 from Class 1.

195

Notes to Financial Statements

Annual Report December 31, 2017

	EAFE PURE Fund
	Class 1 Shares For the Period Ended December 31, 2016						Class 2 Shares For the Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		303		$	2,994			—		$	—
Purchase fees		—			—			—			6
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		5			44			256,259			2,430,621
Shares redeemed		—			—			—			—
Net increase		308		$	3,038			256,259		$	2,430,627
	Emerging Markets Fund
	Class 1 Shares For the Period Ended December 31, 2017						Class 2 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		96		$	1,497			2,787,599	**	$	49,650,731	**
Purchase fees		—			281			—			4,567
Redemption fees		—			—			—			4,199
Shares issued in reinvestment of dividends and distributions		—			—			167,120			3,767,062
Shares redeemed		(500,747	)*		(8,699,086	)*		(2,033,116	)		(45,405,788	)
Net increase (decrease)		(500,651	)	$	(8,697,308	)		921,603		$	8,020,771
	Emerging Markets Fund
	Class 3 Shares For the Year Ended December 31, 2017						Class 5 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		—		$	—			—		$	—
Purchase fees		—			4,814			—			40,345
Redemption fees		—			3,560			—			29,835
Shares issued in reinvestment of dividends and distributions		165,344			3,756,892			1,034,998			24,116,683
Shares redeemed		—			—			(17,316,669	)		(396,049,578	)
Net increase (decrease)		165,344		$	3,765,266			(16,281,671	)	$	(371,862,715	)

* 500,747 shares and $8,699,086 converted from Class 1 into Class 2.

** 492,613 shares and $8,699,086 converted into Class 2 from Class 1.

196

Notes to Financial Statements

Annual Report December 31, 2017

	Emerging Markets Fund
	Class K Shares For the Period Ended December 31, 2017						Institutional Class Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		4,741,936		$	98,891,235			274		$	5,000
Purchase fees		—			—			—			—
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		59,488			1,339,105			5			121
Shares redeemed		(1,583,086	)		(35,000,000	)		—			—
Net increase		3,218,338		$	65,230,340			279		$	5,121
	Emerging Markets Fund
	Class 1 Shares For the Period Ended December 31, 2016						Class 2 Shares For the Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		496,351		$	7,035,259			4,229,576		$	69,655,261
Purchase fees		—			809			—			35,040
Redemption fees		—			14			—			1,637
Shares issued in reinvestment of dividends and distributions		4,300			63,550			73,367			1,102,014
Shares redeemed		—			—			(935,781	)		(13,454,743	)
Net increase		500,651		$	7,099,632			3,367,162		$	57,339,209
	Emerging Markets Fund
	Class 3 Shares For the Period Ended December 31, 2016						Class 4 Shares For the Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		8,297,326		$	122,132,513			—		$	—
Purchase fees		—			13,857			—			46,053
Redemption fees		—			241			—			2,003
Shares issued in reinvestment of dividends and distributions		78,731			1,191,919			—			—
Shares redeemed		—			—			(6,500,627	)		(110,086,301	)
Net increase (decrease)		8,376,057		$	123,338,530			(6,500,627	)	$	(110,038,245	)

197

Notes to Financial Statements

Annual Report December 31, 2017

	Emerging Markets Fund
	Class 5 Shares For the Year Ended December 31, 2016
	Shares			Amount
Shares sold		7,003,622		$	119,060,276
Purchase fees		—			439,341
Redemption fees		—			21,089
Shares issued in reinvestment of dividends and distributions		667,883			10,344,713
Shares redeemed		(59,981	)		(1,002,506	)
Net increase		7,611,524		$	128,862,913

	Global Alpha Equity Fund
	Class 1 Shares For the Period Ended December 31, 2017						Class 2 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		102		$	1,498			1,214,499	**	$	20,191,462	**
Purchase fees		—			—			—			5,472
Redemption fees		—			—			—			6,754
Shares issued in reinvestment of dividends and distributions		—			—			286,122			5,398,523
Shares redeemed		(319	)*		(4,965	)*		(8,809,058	)		(154,903,521	)
Net increase (decrease)		(217	)	$	(3,467	)		(7,308,437	)	$	(129,301,310	)
	Global Alpha Equity Fund
	Class 3 Shares For the Year Ended December 31, 2017						Class 4 Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		9,384,358		$	167,078,422			18,644,881		$	352,706,903
Purchase fees		—			14,033			—			—
Redemption fees		—			17,770			—			—
Shares issued in reinvestment of dividends and distributions		1,039,321			19,986,144			669,263			13,112,596
Shares redeemed		(21,154,751	)		(388,729,425	)		(522,422	)		(10,500,000	)
Net increase (decrease)		(10,731,072	)	$	(201,633,056	)		18,791,722		$	355,319,499

* 319 shares and $4,965 converted from Class 1 into Class 2.

** 312 shares and $4,965 converted into Class 2 from Class 1.

198

Notes to Financial Statements

Annual Report December 31, 2017

	Global Alpha Equity Fund
	Class K Shares For the Period Ended December 31, 2017						Institutional Class Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		4,132,888	*	$	75,400,530	*		302		$	5,000
Purchase fees		—			—			—			—
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		109,284			2,058,917			11			213
Shares redeemed		(1,258,732	)		(23,575,015	)		—			—
Net increase		2,983,440		$	53,884,432			313		$	5,213
	Global Alpha Equity Fund
	Class 1 Shares For the Period Ended December 31, 2016						Class 2 Shares For the Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		216		$	2,996			7,593,796		$	102,389,191
Purchase fees		—			1			—			50,495
Redemption fees		—			—			—			12,291
Shares issued in reinvestment of dividends and distributions		2			26			164,823			2,377,207
Shares redeemed		—			—			(7,363,426	)		(108,680,958	)
Net increase (decrease)		218		$	3,023			395,193		$	(3,851,774	)

	Global Alpha Equity Fund
	Class 3 Shares For the Year Ended December 31, 2016
	Shares			Amount
Shares sold		13,816,078		$	206,629,056
Purchase fees		—			107,459
Redemption fees		—			21,142
Shares issued in reinvestment of dividends and distributions		354,436			5,227,626
Shares redeemed		(9,262,478	)		(128,628,662	)
Net increase		4,908,036		$	83,356,621

* Includes in-kind subscription for 1,607,239 shares and $28,817,791.

199

Notes to Financial Statements

Annual Report December 31, 2017

	Global Select Equity Fund
	Class K Shares For the Period Ended December 31, 2017						Institutional Class Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		150,000		$	1,500,000			150,000		$	1,500,000
Purchase fees		—			—			—			—
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		—			—			—			—
Shares redeemed		—			—			—			—
Net increase		150,000		$	1,500,000			150,000		$	1,500,000
	International Concentrated Growth Fund
	Class K Shares For the Period Ended December 31, 2017						Institutional Class Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		50,000		$	500,000			50,000		$	500,000
Purchase fees		—			—			—			—
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		—			—			—			—
Shares redeemed		—			—			—			—
Net increase		50,000		$	500,000			50,000		$	500,000
	International Equity Fund
	Class 1 Shares For the Period Ended December 31, 2017						Class 2 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		135		$	1,497			1,828,103	**	$	21,820,826	**
Purchase fees		—			129			—			3,746
Redemption fees		—			206			—			5,976
Shares issued in reinvestment of dividends and distributions		—			—			1,160,931			16,410,339
Shares redeemed		(1,855,127	)*		(21,814,876	)*		(22,421,627	)		(295,922,268	)
Net increase (decrease)		(1,854,992	)	$	(21,813,044	)		(19,432,593	)	$	(257,681,381	)

* 1,855,127 shares and $21,814,876 converted from Class 1 into Class 2.

** 1,827,648 shares and $21,814,876 converted into Class 2 from Class 1.

200

Notes to Financial Statements

Annual Report December 31, 2017

	International Equity Fund
	Class 3 Shares For the Year Ended December 31, 2017						Class 4 Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares		Amount
Shares sold		16,354,903		$	215,980,083			15,387,668	$	206,702,541
Purchase fees		—			5,862			—		—
Redemption fees		—			9,457			—		—
Shares issued in reinvestment of dividends and distributions		2,731,488			39,089,511			560,731		8,147,477
Shares redeemed		(24,252,519	)		(324,073,123	)		—		—
Net increase (decrease)		(5,166,128	)	$	(68,988,210	)		15,948,399	$	214,850,018
	International Equity Fund
	Class 5 Shares For the Year Ended December 31, 2017						Class K Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares		Amount
Shares sold		147,805		$	2,000,007			7,393,671	$	105,992,735
Purchase fees		—			1,085			—		—
Redemption fees		—			1,728			—		—
Shares issued in reinvestment of dividends and distributions		429,770		��	6,342,711			278,005		3,922,653
Shares redeemed		(2,930,950	)		(41,800,000	)		—		—
Net increase		(2,353,375	)	$	(33,454,469	)		7,671,676	$	109,915,388

	International Equity Fund
	Institutional Class Shares For the Period Ended December 31, 2017
	Shares		Amount
Shares sold		402	$	5,000
Purchase fees		—		—
Redemption fees		—		—
Shares issued in reinvestment of dividends and distributions		15		208
Shares redeemed		—		—
Net increase		417	$	5,208

201

Notes to Financial Statements

Annual Report December 31, 2017

	International Equity Fund
	Class 1 Shares For the Period Ended December 31, 2016						Class 2 Shares For the Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		1,804,363		$	18,721,547			18,649,438		$	197,471,010
Purchase fees		—			404			—			25,933
Redemption fees		—			986			—			37,355
Shares issued in reinvestment of dividends and distributions		50,629			545,821			1,530,262			16,800,244
Shares redeemed		—			—			(33,640,173	)		(363,708,396	)
Net increase (decrease)		1,854,992		$	19,268,758			(13,460,473	)	$	(149,373,854	)
	International Equity Fund
	Class 3 Shares For the Year Ended December 31, 2016						Class 5 Shares For the Year Ended December 31, 2016
	Shares			Amount			Shares			Amount
Shares sold		28,870,850		$	314,718,178			—		$	—
Purchase fees		—			31,311			—			6,808
Redemption fees		—			45,973			—			9,709
Shares issued in reinvestment of dividends and distributions		2,343,575			25,982,896			443,774			5,083,267
Shares redeemed		(20,158,056	)		(216,391,115	)		(1,435,575	)		(17,199,199	)
Net increase (decrease)		11,056,369		$	124,387,243			(991,801	)	$	(12,099,415	)
	Long Term Global Growth Equity Fund
	Class 1 Shares For the Year Ended December 31, 2017						Class 2 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		1,805		$	19,028			975,426	**	$	12,925,524	**
Purchase fees		—			1,663			—			4,974
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		—			—			—			—
Shares redeemed		(1,118,879	)*		(12,790,798	)*		(404,454	)		(7,000,025	)
Net increase (decrease)		(1,117,074	)	$	(12,770,107	)		570,972		$	5,930,473

* 1,118,879 shares and $12,790,798 converted from Class 1 into Class 2.

** 966,613 shares and $12,790,798 converted into Class 2 from Class 1.

202

Notes to Financial Statements

Annual Report December 31, 2017

	Long Term Global Growth Equity Fund
	Class 4 Shares For the Year Ended December 31, 2017					Class K Shares For the Period Ended December 31, 2017
	Shares		Amount			Shares		Amount
Shares sold		725,715	$	10,989,000			4,073,618	$	66,005,000
Purchase fees		—		4,405			—		—
Redemption fees		—		—			—		—
Shares issued in reinvestment of dividends and distributions		—		—			—		—
Shares redeemed		—		(22	)		—		—
Net increase		725,715	$	10,993,383			4,073,618	$	66,005,000

	Long Term Global Growth Equity Fund
	Institutional Class Shares For the Period Ended December 31, 2017
	Shares		Amount
Shares sold		358	$	5,000
Purchase fees		—		—
Redemption fees		—		—
Shares issued in reinvestment of dividends and distributions		—		—
Shares redeemed		—		—
Net increase		358	$	5,000

	Long Term Global Growth Equity Fund
	Class 1 Shares For the Year Ended December 31, 2016				Class 2 Shares For the Year Ended December 31, 2016
	Shares		Amount		Shares			Amount
Shares sold		100,133	$	1,066,932		—		$	—
Purchase fees		—		141		—			425
Redemption fees		—		2,214		—			6,897
Shares issued in reinvestment of dividends and distributions		6,652		68,401		16,271			193,711
Shares redeemed		—		—		(209,222	)		(2,502,502	)
Net increase (decrease)		106,785	$	1,137,688		(192,951	)	$	(2,301,469	)

203

Notes to Financial Statements

Annual Report December 31, 2017

	Long Term Global Growth Equity Fund
	Class 4 Shares For the Year Ended December 31, 2016
	Shares			Amount
Shares sold		—		$	—
Purchase fees		—			502
Redemption fees		—			6,965
Shares issued in reinvestment of dividends and distributions		15,793			216,535
Shares redeemed		(1,004,102	)		(13,573,574	)
Net decrease		(988,309	)	$	(13,349,572	)

	Positive Change Equity Fund
	Class K Shares For the Period Ended December 31, 2017						Institutional Class Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		50,000		$	500,000			50,000		$	500,000
Purchase fees		—			—			—			—
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		—			—			—			—
Shares redeemed		—			—			—			—
Net increase		50,000		$	500,000			50,000		$	500,000
	U.S. Equity Growth Fund
	Class 1 Shares For the Year Ended December 31, 2017						Class K Shares For the Period Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		—		$	—			99,970	**	$	1,148,640	**
Purchase fees		—			—			—			—
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		—			—			409			5,489
Shares redeemed		(100,000	)*		(1,148,640	)*		—			—
Net increase (decrease)		(100,000	)	$	(1,148,640	)		100,379		$	1,154,129

* 100,000 shares and $1,148,640 converted from Class 1 into Class K.

** 99,970 shares and $1,148,640 converted into Class K from Class 1.

204

Notes to Financial Statements

Annual Report December 31, 2017

	U.S. Equity Growth Fund
	Institutional Class Shares For the Period Ended December 31, 2017
	Shares		Amount
Shares sold		435	$	5,000
Purchase fees		—		—
Redemption fees		—		—
Shares issued in reinvestment of dividends and distributions		2		24
Shares redeemed		—		—
Net increase		437	$	5,024
	U.S. Equity Growth Fund
	Class 1 Shares For the Period Ended December 31, 2016
	Shares		Amount
Shares sold		100,000	$	1,000,000
Purchase fees		—		—
Redemption fees		—		—
Shares issued in reinvestment of dividends and distributions		—		—
Shares redeemed		—		—
Net increase		100,000	$	1,000,000

	International Choice Fund
	Class 1 Shares For the Year Ended December 31, 2017						Class 2 Shares For the Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Shares sold		—		$	—			2,534,688	**	$	33,249,954	**
Purchase fees		—			3,420			—			46,266
Redemption fees		—			—			—			—
Shares issued in reinvestment of dividends and distributions		—			—			272,087			4,034,314
Shares redeemed		(1,434,417	)*		(17,850,819	)*		(107,813	)		(1,500,000	)
Net increase (decrease)		(1,434,417	)	$	(17,847,399	)		2,698,962		$	35,830,534

* 1,434,417 shares and $17,850,819 converted from Class 1 into Class 2.

** 1,419,374 shares and $17,850,819 converted into Class 2 from Class 1.

205

Notes to Financial Statements

Annual Report December 31, 2017

	International Choice Fund
	Class 3 Shares For the Year Ended December 31, 2017				Class 4 Shares For the Year Ended December 31, 2017
	Shares		Amount		Shares		Amount
Shares sold		—	$	—		2,650,821	$	34,081,343
Purchase fees		—		22,875		—		—
Redemption fees		—		—		—		—
Shares issued in reinvestment of dividends and distributions		122,364		1,833,960		35,278		534,209
Shares redeemed		—		—		—		—
Net increase		122,364	$	1,856,835		2,686,099	$	34,615,552
	International Choice Fund
	Class 1 Shares For the Year Ended December 31, 2016				Class 2 Shares For the Year Ended December 31, 2016
	Shares		Amount		Shares		Amount
Shares sold		—	$	—		34,587	$	399,160
Purchase fees		—		40				535
Redemption fees		—		—		—		—
Shares issued in reinvestment of dividends and distributions		17,296		194,799		243,617		2,772,340
Shares redeemed		—		—		—		—
Net increase		17,296	$	194,839		278,204	$	3,172,035

	International Choice Fund
	Class 3 Shares For the Year Ended December 31, 2016
	Shares		Amount
Shares sold		—	$	—
Purchase fees		—		265
Redemption fees		—		—
Shares issued in reinvestment of dividends and distributions		124,536		1,432,137
Shares redeemed		—		—
Net increase		124,536	$	1,432,402

206

Notes to Financial Statements

Annual Report December 31, 2017

The Funds charged the following purchase fees and redemption fees for the period January 1, 2017 to April 30, 2017:

Fund	Purchase Fees			Redemption Fees
EAFE		0.21	%		0.10	%
EAFE Choice		0.21	%		0.10	%
EAFE Pure		0.21	%		0.10	%
Emerging Markets		0.20	%		0.25	%
Global Alpha Equity		0.15	%		0.10	%
International Equity		0.21	%		0.10	%
Long Term Global Growth Equity		0.10	%		0.10	%
U.S. Equity Growth		0.06	%		0.06	%
International Choice		0.21	%		0.10	%

Effective beginning May 1, 2017 the Funds ceased to charge purchase and redemption fees

Note E — Beneficial Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Fund creates a presumption of control under Section 2(a)(9) of the 1940 Act. As of December 31, 2017, the following shareholders beneficially owned 25% or more of a Fund's voting securities:

Fund	Investor	Percentage
the EAFE Fund	Kentucky Teachers Retirement System		40.81	%
the EAFE Choice Fund	Norhtern Trust as Trustee FBO		27.89	%
the EAFE Pure Fund	El Paso Firemen & Policemen's Pension Fund		27.16	%
the Emerging Markets Fund	Board of Trustees for the Maryland State Retirement and Pension System		45.02	%
the Global Select Equity Fund	Baillie Gifford Overseas Ltd		100.00	%
the International Concentrated Growth Fund	Baillie Gifford Overseas Ltd		100.00	%
the Long Term Global Growth Equity Fund	Nissan Employee Retirement Plan		31.06	%
the Long Term Global Growth Equity Fund	The Salvation Army A Georgia Corporation		31.62	%
the Positive Change Equity Fund	Baillie Gifford Overseas Ltd		100.00	%
the U.S. Equity Growth Fund	Baillie Gifford International LLC		100.00	%
the International Choice Fund	the Municipal Fire & Police Retirement System of Iowa		28.10	%

Purchase and Redemption activity of these accounts may have a significant effect on the operation of each Fund.

At December 31, 2017, Baillie Gifford Overseas Ltd ('the Advisor'), who is affiliated with the Funds, owned 100% of the Global Select Equity Fund, the International Concentrated Growth Fund and the Positive Change Equity Fund. As a result, the Adviser may be deemed to control the Fund.

At December 31, 2017, Baillie Gifford International LLC, a wholly owned subsidiary of Baillie Gifford Overseas Limited, the Advisor, owned 100% of the U.S. Equity Growth Fund and as a result may be deemed to control the Fund.

207

Notes to Financial Statements

Annual Report December 31, 2017

Note F — Commitments and Contingencies

Each of the Funds indemnifies the Trust's officers and Trustees for certain liabilities that might arise from the performance of their duties to the Fund. Additionally, in the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.

The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

Note G — New Accounting Pronouncement

In October 2016, the Securities and Exchange Commission (SEC) issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. The amendment of Regulation S-X was applied to the Funds' financial statements for the period ending December 31, 2017; adoption is expected to have no effect on the fund's net assets or results of operations.

Note H — Line of Credit

The Trust has entered into a committed facility with Bank of New York Mellon which allows the Funds managed by the Advisor to borrow up to $50 million in total which matures on April 28, 2018, subject to minimum asset coverage requirements set out in the credit agreement. Each Fund may borrow money under this credit facility for the temporary funding of shareholder redemptions with respect to Class K and Institutional Class shares or for other temporary or emergency purposes.

Borrowings are charged an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the one-month LIBOR Rate. Pursuant to allocation procedures adopted by the Board, the Classes borrowing pursuant to the Credit Agreement shall bear

any expenses associated with the credit facility or borrowings thereunder. Each Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility based on such Fund's average net asset value attributable to the share classes for which the facility is maintained. The Baillie Gifford Funds had no outstanding loans at December 31, 2017. For the period ended December 31, 2017, the commitment fee for the line of credit was paid by the advisor, Baillie Gifford Overseas Limited.

On October 2, 2017 the Emerging Markets Fund borrowed a maximum of $8.6 million with an average loan balance of approximately $6.1 million under the Credit Facility lasting for two days during the year ended December 31, 2017. The interest associated with the Credit Facility was reimbursed by the Advisor.

Note I — Principal Risks

Cash

Cash held by the Funds may be in excess of Federal Deposit Insurance Corporation (FDIC) limitations. The Manager does not expect any loses as a result of cash being in excess of FDIC limits.

Currency and Currency Hedging Risk

The Fund could lose value if it invests in foreign currencies or securities denominated in foreign currencies which decline in value relative to the U.S. Dollar, or if it invests in products to reduce this exposure, and those products lose value. A Fund may realize a loss if it has exposure to a non-U.S. currency, and this non-U.S. currency declines in value, relative to the U.S. dollar. Similarly, a Fund may realize a loss if the Fund hedges exposure to a non-U.S. currency, and this non-U.S. currency increases in value, relative to the U.S. dollar. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains.

Non U.S. Investment Risk

Non-U.S. securities are subject to additional risks, including less liquidity, increased volatility, less transparency, withholding or other taxes, increased

208

Notes to Financial Statements

Annual Report December 31, 2017

vulnerability to adverse changes in local and global economic conditions, less regulation, and possible fluctuation in value due to adverse political conditions. Foreign portfolio transactions generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in the U.S.

For further information on risk please refer to the Prospectus.

Note J — Change in Independent Registered Public Accounting Firm

Effective September 18, 2017, Cohen & Company, Ltd ("Cohen") was appointed as the Funds' independent registered public accounting firm for the fiscal year ending December 31, 2017. The selection of Cohen was recommended by the Trust's Audit Oversight Committee, comprised of all non-interested Trustees, and was approved by the Board.

Note K — Legal Notice

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 of 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)

S&P (US Equity Growth)

The S&P 500 and S&P Global Small Cap ("Index") is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates ("SPDJI"). Standard & Poor's^® and S&P^® are registered trademarks of Standard & Poor's Financial Services LLC, a division of S&P Global ("S&P"); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

Note L — Subsequent Events

Events or transactions that occur after the financial statement date but before the financial statements are issued are categorized as recognized or non-recognized for financial statement purposes.

There were no subsequent events identified between December 31, 2017 and the issuance of the Financial Statements.

209

Report of Independent Registered Public Accounting Firm

Annual Report December 31, 2017

To the Shareholders of Baillie Gifford EAFE Fund,
Baillie Gifford EAFE Choice Fund, Baillie Gifford EAFE Pure Fund,
Baillie Gifford Emerging Markets Fund, Baillie Gifford Global Alpha Equity Fund,
Baillie Gifford Global Select Equity Fund, Baillie Gifford International Concentrated Growth Fund,
Baillie Gifford International Equity Fund, Baillie Gifford Long Term Global Growth Equity Fund,
Baillie Gifford Positive Change Equity Fund, Baillie Gifford U.S. Equity Growth Fund,
and Baillie Gifford International Choice Fund, and Board of Trustees of Baillie Gifford Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Baillie Gifford EAFE Fund, Baillie Gifford EAFE Choice Fund, Baillie Gifford EAFE Pure Fund, Baillie Gifford Emerging Markets Fund, Baillie Gifford Global Alpha Equity Fund, Baillie Gifford Global Select Equity Fund, Baillie Gifford International Concentrated Growth Fund, Baillie Gifford International Equity Fund, Baillie Gifford Long Term Global Growth Equity Fund, Baillie Gifford Positive Change Equity Fund, Baillie Gifford U.S. Equity Growth Fund, and Baillie Gifford International Choice Fund (the "Funds"), each a series of Baillie Gifford Funds, as of December 31, 2017, and the related statements of operations, the statements of changes in net assets, including the related notes, and the financial highlights for the year or period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds, as of December 31, 2017, the results of their operations, the changes in their net assets, and the financial highlights for the year or period then ended, in conformity with accounting principles generally accepted in the United States of America.

The Funds' financial statements and financial highlights for the years or periods ended December 31, 2016 and prior were audited by other auditors, whose report dated February 28, 2017, expressed an unqualified opinion on those financial statements and financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit includes performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

We have served as the Funds' auditor since 2017.

COHEN & COMPANY, LTD.

Cleveland, Ohio
February 28, 2018

210

Supplemental Information (unaudited)

Annual Report December 31, 2017

Federal Income Tax Information

Qualified dividend income was taxable to the Funds listed in the table below through December 31, 2017. The Funds intend to designate the maximum amount of dividends that qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Fund	Qualified Dividend Income
EAFE		100.00	%
EAFE Choice		100.00	%
EAFE Pure		89.24	%
Emerging Markets		80.87	%
Global Alpha Equity		100.00	%
Global Select Equity		0.00	%
International Concentrated		0.00	%
International Equity		100.00	%
Long Term Global Growth Equity		0.00	%
Positive Change Equity		0.00	%
U.S. Equity Growth		70.83	%
International Choice		100.00	%

For corporate shareholders, the percentage of ordinary income distributions for the year/period ended December 31, 2017 for the corporate dividends-received deducation for each Fund is:

Fund	Dividends-received Deductions
EAFE		0.00	%
EAFE Choice		0.00	%
EAFE Pure		0.00	%
Emerging Markets		0.00	%
Global Alpha Equity		39.62	%
Global Select Equity		0.00	%
International Concentrated		0.00	%
International Equity		0.00	%
Long Term Global Growth Equity		0.00	%
Positive Change Equity		0.00	%
U.S. Equity Growth		70.83	%
International Choice		0.00	%

In February 2018, certain US shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the U.S. federal tax status of the distributions received by certain US shareholders in the calendar year 2017.

211

Supplemental Information (unaudited)

Annual Report December 31, 2017

Foreign Taxes Paid — The following Funds elect under the Internal Revenue Code Section 853 to pass through foreign taxes paid to its shareholders. The total amount of foreign taxes passed through to shareholders on a per share basis for the year ended December 31, 2017, are as follows:

Fund	Foreign Taxes Per Share		Foreign Income Per Share
EAFE		0.0148		0.1553
EAFE Choice		0.0277		0.3331
EAFE Pure		0.0185		0.2302
Emerging Markets		0.0453		0.4381
Global Alpha Equity		0.0145		0.1546
Global Select Equity		—		—
International Concentrated		—		—
International Equity		0.0258		0.2829
Long Term Global Growth Equity		—		—
Positive Change Equity		—		—
U.S. Equity Growth		—		—
International Choice		0.0232		0.2462

212

Supplemental Information (unaudited)

Annual Report December 31, 2017

Management of The Trust

The following tables set forth the Trustees and Officers of the Trust, their principal occupations during the past five years, and certain other information as of December 31, 2017.

Name and Year of Birth⁽¹⁾

Position(s)
Held with
Trust

Length of
Time
Served⁽²⁾

Principal Occupation and Other
Directorships Held During Past 5 Years⁽³⁾

Number of Funds in
Fund complex
overseen by
Trustee⁽⁴⁾⁽⁵⁾

Disinterested Trustees

George W. Browning*
1941

Trustee

Since 2007

Retired December 31, 2017, Formerly: Managing Director, Client Service, Babson Capital Management, LLC (investment adviser).

Howard W. Chin
1952

Trustee

Since 2015

Retired. Formerly: Managing Director, Investments, Guardian Life Insurance (financial services).

Bruce C. Long
1945

Trustee

Since 2009

Global Financial Consultant. CEO, K-Stream LLC (financial services); Consultant, DALBAR, Inc. (financial measurements); Consultant, Carpenter Group (financial services).

Robert E. Rigsby
1949

Trustee

Since 2014

Retired. Formerly: President & COO, Delivery Business at Dominion Energy, Inc. (electric and gas energy company).

Pamela M.J. Cox
1952

Trustee

Since 2017

Senior Associate (non-resident), CSIS (think tank). Formerly: Senior Vice President; Vice President East Asia, World Bank Group (international bank & financial services).

Interested Trustee

David Salter
1975

Trustee, Chairman of the Board, and President

Since 2014

Partner, Baillie Gifford & Co. (investment adviser); Manager, Baillie Gifford International LLC with oversight of products offered to the North American market.

Name and Age⁽¹⁾

Position(s)
Held with
Trust

Length of
Time
Served⁽²⁾

Principal Occupation During Past 5 Years⁽³⁾

Officers (other than Officers who are also Trustees)

Andrew Telfer
1967

Vice President

Since 2008

Managing Partner, Baillie Gifford & Co. (investment adviser); Director, Baillie Gifford Overseas Limited (investment adviser).

Michael Stirling-Aird
1977

Vice President

Since 2012

Client Service Director, Baillie Gifford Overseas Limited (investment adviser).

Julie Paul
1975

Vice President

Since 2012

Manager, North American Funds Operations Department, Baillie Gifford & Co. (investment adviser).

Tim Campbell
1975

Vice President

Since 2014

Partner, Baillie Gifford & Co. (investment adviser); Manager, Baillie Gifford International LLC with oversight of marketing performed in North America.

Lindsay Cockburn
1978

Treasurer

Since 2015

Manager, North American Funds Operations Department, Baillie Gifford & Co. (investment adviser).

Gareth Griffiths
1973

Chief Legal Officer and Secretary

Since 2015

Senior Legal Advisor for the Baillie Gifford Group (investment adviser).

213

Supplemental Information (unaudited)

Annual Report December 31, 2017

Name and Year of Birth⁽¹⁾

Position(s)
Held with
Trust

Length of
Time
Served⁽²⁾

Principal Occupation During Past 5 Years⁽³⁾

Officers (other than Officers who are also Trustees)

Graham Laybourn
1966

Chief Compliance Officer

Since 2005

Partner, Baillie Gifford & Co. (investment adviser); Group Compliance Officer, Director of Regulatory Risk and Legal, Baillie Gifford Group (investment adviser).

Evan Delaney
1969

Chief Risk Officer

Since 2013

Group Chief Risk Officer, Director of Business Risk and Internal Audit, Baillie Gifford Group (investment adviser).

Lesley-Anne Archibald
1988

Vice President

Since 2017

Assistant Manager, North American Funds Operations Department, Baillie Gifford & Co. (investment advisor).

The address of each Trustee and Officer of the Trust is c/o Baillie Gifford Funds, Calton Square, 1 Greenside Row, Edinburgh, Scotland EH1 3AN.

* Retired December 31, 2017.

(1) There is no stated term of office for the Trustees and a Trustee may serve until such Trustee reaches the age of 75 years. Thereafter, such Trustee offers to tender his or her resignation from the Board, and the Nominating and Governance Committee, at its discretion, makes a recommendation to the Board whether to accept or reject such resignation annually. The Chairman of the Board and President of the Trust are elected annually by the Board of Trustees. Other officers may be elected or appointed by the Trustees at any time.

(2) Previous positions during the past five years with Baillie Gifford & Co., the Manager and Baillie Gifford Group are omitted if not materially different from the positions listed.

(3) The number of Funds in the Fund complex overseen by the Trustee includes the Asia ex Japan Fund, a series of the Trust which has not yet commenced operations.

(4) David Salter is an "interested person" (as defined in the 1940 Act) of the Trust or the Manager due to his positions with the Manager (Baillie Gifford Overseas Ltd.) and his role as an officer of the Trust.

Additional information regarding the Trustees is in the Funds' Statement of Additional Information and is available upon request, without charge, by calling Baillie Gifford Overseas Limited at 011-44-131-275-2000.

A description of the Funds' proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling Baillie Gifford Overseas Limited at 011-44-131-275-2000 or on the SEC's website at http://www.sec.gov. Shareholders may submit to the Trust claims for reimbursement of telephone charges incurred in placing such calls.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available without charge upon request by calling Baillie Gifford Overseas Limited at 011-44-131-275-2000 or by accessing the

Fund's Form N-PX on the SEC's website at http://www.sec.gov. Shareholders may submit to the Trust claims for reimbursement of telephone charges incurred in placing such calls.

Each of the Funds files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Q is available on the SEC's website at http://www.sec.gov. The Funds' Form N-Q may also be viewed and copied at the SEC's Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Funds' holdings can also be found at Baillie Gifford Funds website: http://USmutualfund.bailliegifford.com

214

BOARD CONSIDERATIONS REGARDING
NEW FUNDS' ADVISORY AGREEMENT APPROVAL

Annual Report December 31, 2017

On September 18-19, 2017, the Board of Trustees (the "Board") of the Baillie Gifford Funds (the "Trust"), including those trustees who are not "interested persons" as defined by the Investment Company Act of 1940, as amended (the "Independent Trustees"), approved the investment advisory agreement (the "Advisory Agreement") between the Trust, on behalf of The Positive Change Equity Fund, The Global Select Equity Fund and The International Concentrated Growth Fund, respectively, (each a "Fund" and collectively, the "Funds") and Baillie Gifford Overseas Limited (the "Manager"). As part of the review process, the Independent Trustees met independently of Trust management and of the interested trustee of the Board to consider the approval of the Advisory Agreement. During the review process, the Independent Trustees were represented by independent legal counsel. The Independent Trustees reviewed materials received from the Manager, Broadridge (an independent provider of mutual fund data, "Broadridge") and independent legal counsel. The Board determined that, given the totality of the information provided with respect to the Advisory Agreement, the Board had received sufficient information to approve the Advisory Agreement. The Independent Trustees then presented their findings to the Board.

The Board concluded that it was in the best interests of each Fund to approve the Advisory Agreement. In reaching this conclusion for the Funds, the Board did not identify any single factor as determinative in its analysis, but rather the Board considered a variety of factors, including those discussed below. The Board did not allot a particular weight to any one factor or group of factors.

The Board considered the nature, extent and quality of the services expected to be provided by the Manager to The Positive Change Equity Fund, The Global Select Equity Fund and The International Concentrated Growth Fund. The Board noted that pursuant to the Funds' Advisory Agreement, the Manager will provide portfolio management services to the Funds and will receive a management fee and pursuant to a separate Administration, Supervisory and Sub-Accounting Services Plan and Administration and Supervisory Agreement the Manager will receive an administration and supervisory fee. The Board considered the background and qualifications of the investment and compliance personnel who would be involved in the management and oversight of the Funds and reviewed information regarding each Fund's management fee, administration and supervisory fee and estimated expense ratio compared to similar funds. The Board considered the proposed investment objective and policies for the Funds and reviewed composite performance information for similar strategies from the Manager. The Board noted that the Manager provides advisory services to other funds in the Trust and that the Board had also reviewed extensive information regarding the Manager and the nature and quality of services provided during the annual contract renewal process that was completed in June 2017. In evaluating the management fee to be paid by each Fund, and in particular when assessing comparative data, the Board considered not only the management fee, but also the combination of the Fund's management fee and administration and supervisory fee. The Board concluded that the nature, extent and quality of the services provided by the Manager to the Funds, pursuant to the Advisory Agreement, were expected to be satisfactory.

With respect to profitability, the Board considered that because the Funds were not operational that the Manager did not provide estimated profitability. The Board considered other benefits to be derived by the Manager from its relationship to the Funds, including receipt of the administration and supervisory fee. The Board considered whether there were economies of scale with respect to management of the Funds and whether the Funds would benefit from any economies of scale. The Board considered the relatively low level of the management fees of the Funds compared to peer funds and that the Funds were not yet operational and had no assets.

The Board noted the following items specific to the referenced Funds.

The Positive Change Equity Fund

215

BOARD CONSIDERATIONS REGARDING
NEW FUNDS' ADVISORY AGREEMENT APPROVAL

Annual Report December 31, 2017

agreed to waive its fees and/or bear other expenses of the Class K and Institutional Class Shares of the Fund through April 30, 2019 and that the contractual agreement may only be terminated by the Board. The Board considered that the management fee was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the management fee was reasonable.

The Global Select Equity Fund

The Board reviewed the Fund's management fee (plus the administration and supervisory fee) and total expense ratio and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the Fund's management fee (plus the administration and supervisory fee) was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered that the Manager has contractually agreed to waive its fees and/or bear other expenses of the Class K and Institutional Class Shares of the Fund through April 30, 2019 and that the contractual agreement may only be terminated by the Board. The Board considered that the management fee was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the management fee was reasonable.

The International Concentrated Growth Fund

The Board reviewed the Fund's management fee (plus the administration and supervisory fee) and total expense ratio and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the Fund's management fee (plus the administration and supervisory fee) was above the average management fee of the expense peer group and below the average management fee of the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered that the Manager has contractually agreed to waive its fees and/or bear other expenses of the Class K and Institutional Class Shares of the Fund through April 30, 2019 and that the contractual agreement may only be terminated by the Board. On the basis of the information provided, the Board concluded that the management fee was reasonable.

Conclusion

Based upon all the information considered and the conclusions reached, the Board determined that the terms of the Advisory Agreement for the Funds were reasonable and fair and that the approval of the Advisory Agreement was in the best interests of each Fund.

216

Item 2. Code of Ethics.

(a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b) Not applicable.

(c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relate to any element of the code of ethics definition enumerated in paragraph (b) of this item’s instructions.

(d) The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

(e) Not applicable.

(f) The registrant’s Code of Ethics is attached hereto as an exhibit.

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the registrant’s Board of Trustees has determined that Mr. Robert E. Rigsby, is qualified to serve as an audit committee financial expert serving on its audit oversight committee and that he is “independent,” as defined by Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Audit Fees

(a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services

that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $164,000 for 2016 and $240,800 for 2017.

Audit fees include amounts for auditing and reporting on the financial statements and the financial highlights included in the Funds annual report to the shareholders, issuance of the auditor’s consent to be included in the Funds’ annual amendment to the registration statement on Form N-1A, issuance of the auditor’s report on internal controls for inclusion in Form N-SAR and provision of comments on the Funds’ interim financial statements (as requested). The audit fees above represent the amounts billed for services provided for the fiscal year indicated, not the amounts billed during such year.

Audit-Related Fees

(b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2016 and $0 for 2017.

Audit-related fees include amounts billed for assurance and related services rendered to the registrant, including consultations related to financial accounting and reporting standards. The audit-related fees above represent the amounts billed during the fiscal year indicated.

Tax Fees

(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $34,000 for 2016 and $72,000 for 2017.

Tax fees include amounts for services rendered to the registrant for tax compliance, tax planning and tax advice, including tax return preparation and review of and participation in determining required income and capital gains distributions. The tax fees above represent the amounts billed during the fiscal year indicated.

All Other Fees

(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2016 and $0 for 2017.

(e)(1) Engagements that are required to be pre-approved by the registrant’s Audit Oversight Committee, “the Committee”, may be pre-approved (i) at any regular or special meeting of the Committee or (ii) by the Committee Chair (or any other Committee member who is a disinterested trustee under the 1940 Act to whom this responsibility has been delegated), as long as the estimated fee for the particular services for which pre-approval is sought does not exceed $75,000 (for audit services) or $100,000 (for audit-related services) and provided that such committee member must report, for informational purposes only, any pre-approval decisions to the Board at its next regularly scheduled meeting.

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) Audit Related Fees — Not Applicable

(d) All Other Fees — Not Applicable

(f) Not applicable.

(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2016 and $0 for 2017.

(h) Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) In accordance with Section 13(c) of the Investment Company Act of 1940, the registrant has divested itself of the following securities since the filing of its last report on Form N-CSR:

The International Equity Fund

Name of
Issuer

Exchange
Ticker
Symbol

Security
Identifier
(CUSIP
number/ISIN)

Total
Number
of Shares
Divested

Date
Securities
were
Divested

Amount
Held on
Filing Date

Statute

Atlas Copco B

ATCO B

SE0006886768

18,995

03/03/2017

1,204,314

Sudan Accountability and Divestment Act of 2007;

51,805

07/19/2017

19,648

10/24/2017

27,348

11/27/2017

18,884

12/18/2017

The EAFE Fund

Name of
Issuer

Exchange
Ticker
Symbol

Security
Identifier
(CUSIP
number/ISIN)

Total
Number
of Shares
Divested

Date
Securities
were
Divested

Amount
Held on
Filing Date

Statute

Atlas Copco A

ATCO A

SE0006886750

39,167

04/21/2017

2,200,696

Sudan Accountability and Divestment Act of 2007;

49,424

06/22/2017

41,769

09/21/2017

38,216

09/26/2017

22,457

10/16/2017

20,941

10/31/2017

63,343

11/28/2017

25,432

12/18/2017

26,160

12/27/2017

The EAFE Choice Fund

Name of
Issuer

Exchange
Ticker
Symbol

Security
Identifier
(CUSIP
number/ISIN)

Total
Number
of Shares
Divested

Date
Securities
were
Divested

Amount
Held on
Filing Date

Statute

Atlas Copco A

ATCO A

SE0006886750

3,109

03/17/2017

Sudan Accountability and Divestment Act of 2007;

6,606

08/30/2017

4,025

10/04/2017

3,830

11/15/2017

Atlas Copco B

ATCO B

SE0006886768

7,783

17,637

11/20/2017

12/05/2017

180,311

Sudan Accountability and Divestment Act of 2007;

The EAFE Pure Fund

Name of
Issuer

Exchange
Ticker
Symbol

Security
Identifier
(CUSIP
number/ISIN)

Total
Number
of Shares
Divested

Date
Securities
were
Divested

Amount
Held on
Filing Date

Statute

Atlas Copco A

ATCO A

SE0006886750

3,341

11,451

08/11/2017

12/19/2017

138,119

Sudan Accountability and Divestment Act of 2007;

The Global Alpha Equity Fund

Name of
Issuer

Exchange
Ticker
Symbol

Security
Identifier
(CUSIP
number/ISIN)

Total
Number
of Shares
Divested

Date
Securities
were
Divested

Amount
Held on
Filing Date

Statute

Atlas Copco A

ATCO A

SE0006886750

9,975

02/28/2017

Sudan Accountability and Divestment Act of 2007;

Atlas Copco B

ATCO B

SE0006886768

2,793

14,081

7,911

02/28/2017

09/15/2017

11/27/2017

353,827

Sudan Accountability and Divestment Act of 2007;

The Long Term Global Growth Equity Fund

Name of
Issuer

Exchange
Ticker
Symbol

Security
Identifier
(CUSIP
number/ISIN)

Total
Number
of Shares
Divested

Date
Securities
were
Divested

Amount
Held on
Filing Date

Statute

Atlas Copco A

ATCO A

SE0006886750

2,574

03/22/2017

62,884

Sudan Accountability and Divestment Act of 2007;

3,331

03/23/2017

1,337

03/30/2017

557

03/31/2017

1,061

04/04/2017

197

04/04/2017

906

04/05/2017

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(a)(4) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)		Baillie Gifford Funds


By (Signature and Title)*		/s/ David Salter
		David Salter, President
		(principal executive officer)


Date	March 1, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*		/s/ David Salter
		David Salter, President
		(principal executive officer)


Date	March 1, 2018


By (Signature and Title)*		/s/ Lindsay Cockburn
		Lindsay Cockburn, Treasurer
		(principal financial officer)

Date	March 1, 2018

* Print the name and title of each signing officer under his or her signature.

Baillie Gifford Funds N-CSRCertified annual shareholder report (management investment company)